Bill Text: NJ S1609 | 2010-2011 | Regular Session | Introduced
Bill Title: Requires designation of one position for PERS membership by person holding more than one PERS-covered position.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-03-04 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S1609 Detail]
Download: New_Jersey-2010-S1609-Introduced.html
Sponsored by:
Senator JEFF VAN DREW
District 1 (Cape May, Atlantic and Cumberland)
SYNOPSIS
Requires designation of one position for PERS membership by person holding more than one PERS-covered position.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning membership in the Public Employees' Retirement System and amending and supplementing P.L.1954, c.84.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 25 of P.L.1954, c.84 (C.43:15A-25) is amended to read as follows:
25. a. The annuity savings fund shall be the fund in which shall be credited accumulated deductions and contributions by members or on their behalf to provide for their allowances. A single account shall be established in this fund for each person who is or shall become a member and all contributions deducted from each such member's compensation shall be credited to [his] this single account [regardless of the number of positions a member might hold or the number of employers as he might have] in accordance with section 2 of P.L. , c. (C. )(pending before the Legislature as this bill).
b. (1) Members enrolled in the retirement system on or after July 1, 1994 shall contribute 5% of compensation to the system. Members enrolled in the system prior to July 1, 1994 shall contribute 5% of compensation to the system effective with the payroll period for which the beginning date is closest to July 1, 1995, provided, however, that any member enrolled before July 1, 1994, whose full contribution rate under the system prior to the revisions by this act was less than 6%, shall pay 4% of compensation to the system effective with the payroll period for which the beginning date is closest to July 1, 1995, and 5% of compensation to the system effective with the payroll period for which the beginning date is closest to July 1, 1996.
(2) Members enrolled in the retirement system on or after July 1, 2007 who are:
employees of the State, other than employees of the Judicial Branch;
employees of an independent State authority, board, commission, corporation, agency or organization;
employees of a local school
district, regional school district, county vocational school district, county
special services school district, jointure commission, educational services
commission, State-operated school district, charter school, county college, any
officer, board, or commission under the authority of the Commissioner of
Education or of the State Board of Education, and any other public entity which
is established pursuant to authority
provided by Title 18A of the New Jersey Statutes; or
employees of a State public institution of higher education, other than employees of the University of Medicine and Dentistry of New Jersey shall contribute 5.5% of compensation to the system, and all such members described above enrolled in the system prior to July 1, 2007 shall contribute 5.5% of compensation to the system effective with the payroll period for which the beginning date is closest to July 1, 2007.
Members enrolled in the retirement system on or after July 1, 2008, other than those described in the paragraph above, shall contribute 5.5% of compensation to the system. Members enrolled in the system prior to July 1, 2008, other than those described in the paragraph above, shall contribute 5.5% of compensation to the system effective with the payroll period that begins immediately after July 1, 2008.
c. The retirement system shall certify to each State department or subdivision thereof, and to each branch of the State service not included in a State department, and to every other employer, the proportion of each member's compensation to be deducted and to facilitate the making of deductions the retirement system may modify the deduction required by a member by such an amount as shall not exceed 1/10 of 1% of the compensation upon the basis of which the deduction is to be made.
If payment in full, representing the monthly or biweekly transmittal and report of salary deductions, is not made within 15 days of the due date established by the retirement system, interest at the rate of 6% per annum shall commence to run against the total transmittal of salary deductions for the period on the first day after such fifteenth day.
d. Every employee to whom this act applies shall be deemed to consent and agree to any deduction from his compensation required by this act and to all other provisions of this act. Notwithstanding any other law, rule or regulation affecting the salary, pay, compensation, other perquisites, or tenure of a person to whom this act applies, or shall apply, and notwithstanding that the minimum salary, pay, or compensation or other perquisites provided by law for him shall be reduced thereby, payment, less such deductions, shall be a full and complete discharge and acquittance of all claims and demands for service rendered by him during the period covered by such payment.
(cf: P.L.2007, c.103, s.2)
2. (New section) a. Notwithstanding any other provision of law to the contrary, any person who is or becomes a member of the Public Employees' Retirement System and becomes employed in more than one position covered by the retirement system, or commences covered employment with more than one employer, shall be eligible for membership in the retirement system based upon only one position, and that one position shall be designated by the person on a form and at a time to be determined by the Division of Pensions and Benefits. Contributions shall be deducted only from the compensation for the position so designated and shall be credited to the member's single account established pursuant to section 25 of P.L.1954, c.84 (C.43:15A-25). The designation of one position by the member shall be irrevocable as between or among the positions held at the time the designation is made. A member who, after making a designation, leaves that position or acquires a different or additional position may make a new designation from among the positions then held. Service in a position other than the designated position shall not be deemed creditable service for the purposes of the retirement system. If a member fails to designate a position, the Division of Pensions and Benefits shall designate, on behalf of the member, the position held for the longest period of time. This requirement to designate one position for membership shall apply to any member of the retirement system who, on the effective date of P.L. , c. (pending before the Legislature as this bill), holds more than one position covered by the retirement system, or has covered employment with more than one employer, and the member shall have 90 days after the effective date to make the required designation.
b. The requirement of subsection a. of this section to designate one position as the basis of membership in the retirement system shall apply in substantially the same manner to a member of the Legislature covered by section 2 of P.L.1972, c.167 (C.43:15A-136). Any benefit to which a member of the Legislature may be entitled based upon contributions to the account specified in section 2 of P.L.1972, c.167 (C.43:15A-136) or in section 25 of P.L.1954, c.84 (C.43:15A-25) shall be determined separately. A member of the Legislature who designates the legislative service as the basis of membership in the retirement system shall not be required to withdraw the member's contributions in the account established pursuant to section 25 of P.L.1954, c.84 (C.43:15A-25) until two years from the date the member discontinues service in the Legislature.
3. This act shall take effect immediately
STATEMENT
This bill requires any person who is or becomes employed in more than one position covered by the Public Employees' Retirement System to designate only one position as the basis of membership in the retirement system. At present, a member holding two or more positions covered by the retirement system makes contributions to the retirement system for each position and the member's retirement benefit is calculated using the combined salaries of the positions.
Under the bill, retirement system contributions would be deducted only from the compensation for the position designated and the member's retirement benefit would be calculated based solely on that compensation.
The bill's requirement would apply to any person who, on the bill's effective date, already holds more than one covered position; the person would have 90 days from that effective date to make the required designation. The bill imposes the same requirement to designate one position as the basis of membership in the retirement system on members of the Legislature enrolled in the retirement system who hold one or more other positions covered by the system.
