Bill Text: NJ S4266 | 2026-2027 | Regular Session | Amended
Bill Title: Permits retired municipal code officials to return to part-time employment after 90-day period without reenrollment in PERS.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-06-11 - Referred to Senate Budget and Appropriations Committee [S4266 Detail]
Download: New_Jersey-2026-S4266-Amended.html
Sponsored by:
Senator PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
SYNOPSIS
Permits retired municipal code officials to return to part-time employment after 90-day period without reenrollment in PERS.
CURRENT VERSION OF TEXT
As reported by the Senate State Government, Wagering, Tourism & Historic Preservation Committee on June 11, 2026, with amendments.
An Act concerning a return to employment by a municipal code official after retirement from the Public Employees' Retirement System and amending P.L.1966, c.217.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 27 of P.L.1966, c.217 (C.43:15A-57.2) is amended to read as follows:
27. a. Except as provided in subsections b., c., [and] d., and e. of this section, if a former member of the State Employees' Retirement System or the retirement system, who has been granted a retirement allowance for any cause other than disability, becomes employed again in a position which makes him eligible to be a member of the retirement system, his retirement allowance and the right to any death benefit as a result of his former membership, shall be canceled until he again retires.
Such person shall be re-enrolled in the retirement system and shall contribute thereto at a rate based on his age at the time of re-enrollment. Such person shall be treated as an active member for determining disability or death benefits while in service and no benefits pursuant to an optional selection with respect to his former membership shall be paid if his death shall occur during the period of such re-enrollment.
Upon subsequent retirement of such member, his former retirement allowance shall be reinstated together with any optional selection, based on his former membership. In addition, he shall receive an additional retirement allowance based on his subsequent service as a member computed in accordance with applicable provisions of chapter 84 of the laws of 1954; provided, however, that his total retirement allowance upon such subsequent retirement shall not be a greater proportion of his final compensation than the proportion to which he would have been entitled had he remained in service during the period of his prior retirement. Any death benefit to which such member shall be eligible shall be based on his latest retirement, but shall not be less than the death benefit that was applicable to his former retirement.
b. The cancellation, re-enrollment, and additional retirement allowance provisions of subsection a. of this section shall not apply to a former member of the retirement system who, after having been granted a retirement allowance, becomes employed again by: (1) an employer or employers in a position or positions for which the aggregate compensation does not exceed $15,000 per year; or (2) if the compensation exceeds $10,000 per year, by an employer that is a public institution of higher education as defined in N.J.S.18A:62-1 in a teaching staff position. The Director of the Division of Pensions and Benefits may from time to time adjust the amount in paragraph (1) of this subsection. This adjustment shall be 3/5 of the percentage of change in the index, as defined in section 1 of P.L.1958, c.143 (C.43:3B-1), over a period of time as determined by the director.
c. The cancellation, reenrollment, and additional retirement allowance provisions of subsection a. and the compensation limitations of subsection b. of this section shall not apply to a former member of the retirement system who, after having been granted a retirement allowance, becomes employed by the State Department of Education in a position of critical need as determined by the State Commissioner of Education, or becomes employed by a board of education in a position of critical need as determined by the superintendent of the district on a contractual basis for a term of not more than one year; except that the cancellation, reenrollment, and additional retirement allowance provisions and the compensation limitations shall apply if the former member becomes employed within 120 days of retirement in a position with the employer from which the member retired. Nothing herein shall preclude a former member so reemployed by a board of education from renewing a contract for one additional year, provided that the total period of employment with any individual board of education does not exceed a two-year period.
d. The cancellation, reenrollment, and additional retirement allowance provisions of subsections a., b., and c. of this section shall not apply to a former member of the retirement system who was granted a retirement allowance pursuant to section 1 of P.L.1985, c.414 (C.43:15A-47.2) prior to the effective date of P.L.2011, c.78.
e. Notwithstanding any provision of P.L.1954, c.84 (C.43:15A-1 et seq.) to the contrary, a former member of the Public Employees' Retirement System who served as a municipal code official and who has been granted a retirement allowance for any cause other than disability, may return to employment as a municipal code official 1within three years after the effective date of P.L. , c. (pending before the Legislature as this bill) and shall be eligible to continue employment as provided in this subsection1, without cancelation of the retirement and reenrollment in the system, if: (1) the return commences no fewer than 90 days after the date of retirement; (2) the former member had attained the service retirement age applicable to that member as of the date of retirement; and (3) the former member is re-employed as a part-time employee and works no more than 20 hours per week.
The former member's retirement shall have been a bona fide retirement and any employment or reemployment under this section shall not be prearranged before retirement.
This subsection shall be effective if the qualified status of the retirement system under federal law can be maintained upon its application, and such modifications to the system as may be available shall be made to allow for its application.
(cf: P.L.2011, c.78, s.34)
2. This act shall take effect immediately.
