Bill Text: NJ S2503 | 2010-2011 | Regular Session | Introduced
Bill Title: Provides non-forfeitable right to post-retirement medical benefits provided by law to certain public employees with 25 years of service.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-07-08 - Reviewed by the Pension and Health Benefits Commission Recommend to not enact [S2503 Detail]
Download: New_Jersey-2010-S2503-Introduced.html
Sponsored by:
Senator LINDA R. GREENSTEIN
District 14 (Mercer and Middlesex)
SYNOPSIS
Provides non-forfeitable right to post-retirement medical benefits provided by law to certain public employees with 25 years of service.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the post-retirement medical benefits of certain public employees and amending P.L.1997, c.113.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 5 of P.L.1997, c.113 (C.43:3C-9.5) is amended to read as follows:
5. a. For purposes of this section, a "non-forfeitable right to receive benefits" means that the benefits program, for any employee for whom the right has attached, cannot be reduced. [The] Except as provided in subsection f., the provisions of this section shall not apply to post-retirement medical benefits which are provided pursuant to law.
b. Vested members of the Teachers' Pension and Annuity Fund, the Judicial Retirement System, the Prison Officers' Pension Fund, the Public Employees' Retirement System, the Consolidated Police and Firemen's Pension Fund, the Police and Firemen's Retirement System, and the State Police Retirement System, upon the attainment of five years of service credit in the retirement system or fund or on the date of enactment of this bill, whichever is later, shall have a non-forfeitable right to receive benefits as provided under the laws governing the retirement system or fund upon the attainment of five years of service credit in the retirement system or fund or on the effective date of this act, whichever is later. This subsection shall not be applicable to a person who becomes a member of these systems or funds on or after the effective date of P.L.2010, c.1, except that such person shall not include a person who at the time of enrollment in the retirement system or fund on or after that effective date transfers service credit, as permitted, from another State-administered retirement system or fund of which the person was a member immediately prior to the effective date and continuously thereafter, but shall include a former member of the retirement system or fund who has been granted a retirement allowance and is reenrolled in the retirement system or fund on or after that effective date after becoming employed again in a position that makes the person eligible to be a member of the retirement system.
c. The State shall make an annual normal contribution and an annual unfunded accrued liability contribution to each system or fund pursuant to standard actuarial practices authorized by law, unless both of the following conditions are met: (1) there is no existing unfunded accrued liability contribution due to the system or fund at the close of the valuation period applicable to the upcoming fiscal year; and (2) there are excess valuation assets in excess of the actuarial accrued liability of the system or fund at the close of the valuation period applicable to the upcoming fiscal year.
d. This act shall not be construed to preclude forfeiture, suspension or reduction in benefits for dishonorable service.
e. Except as expressly provided herein and only to the extent so expressly provided, nothing in this act shall be deemed to (1) limit the right of the State to alter, modify or amend such retirement systems and funds, or (2) create in any member a right in the corpus or management of a retirement system or pension fund.
f. Notwithstanding subsection a. of this section, vested members of the Teachers' Pension and Annuity Fund, N.J.S.18A:66-1 et seq.,
the Public Employees' Retirement System, P.L.1954, c.84 (C.43:15A-1 et seq.), and the Alternate Benefit Program, P.L.1969, c.242 (C.18A:66-167 et seq.), upon the attainment of five years of service credit in the retirement system, fund or program, or on the date of enactment of this bill, whichever is later, shall have a non-forfeitable right to receive post-retirement medical benefits as provided under section 3 of P.L.1987, c.384 (C.52:14-17.32f) and section 2 of P.L.1992, c.126 (C.52:14-17.32f1) upon the attainment of 25 years of service credit in one or more State or locally administered retirement systems. The post-retirement medical benefits shall be at the same level of services or substantially equal to the benefits provided by law at the time the member attains five years of service credit in a State-administered retirement system.
(cf: P.L.2010, c.1, s.29)
2. This act shall take effect immediately.
STATEMENT
N.J.S.A.43:3C-9.5 provides that vested members of the Teachers' Pension and Annuity Fund, the Judicial Retirement System, the Prison Officers' Pension Fund, the Public Employees' Retirement System, the Consolidated Police and Firemen's Pension Fund, the Police and Firemen's Retirement System, and the State Police Retirement System, upon the attainment of five years of service credit, will have a non-forfeitable right to receive benefits as provided under the laws governing the retirement systems for members with five years of service credit. The statute defines a "non-forfeitable right to receive benefits" to mean that the benefits program, for any employee for whom the right has attached, cannot be reduced. Currently, that statute states that its provisions do not apply to post-retirement medical benefits.
This bill provides that vested members of the Teachers' Pension and Annuity Fund, of the Public Employees' Retirement System and of the Alternate Benefit Program, who are employed by school boards or county colleges, will have a non-forfeitable right to the post-retirement medical benefits provided by law upon attainment of 25 years of service credit in one or more State or locally administered retirement systems. The post-retirement medical benefits will be at the same level of services or substantially equal to the benefits provided by law at the time the member attains five years of service credit.
