Bill Text: NJ S601 | 2024-2025 | Regular Session | Introduced


Bill Title: Requires PFRS enrollment to be retroactive to first date of employment for death benefit eligibility.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-01-09 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S601 Detail]

Download: New_Jersey-2024-S601-Introduced.html

SENATE, No. 601

STATE OF NEW JERSEY

221st LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION

 


 

Sponsored by:

Senator  LATHAM TIVER

District 8 (Atlantic and Burlington)

 

 

 

 

SYNOPSIS

     Requires PFRS enrollment to be retroactive to first date of employment for death benefit eligibility.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

  


An Act concerning the eligibility for death benefits in the Police and Firemen's Retirement System and amending P.L.1944, c.25.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Section 9 of P.L.1944, c.25 (C.43:16A-9) is amended to read as follows:

     9. (1) Upon the receipt of proper proof of the death of a member in active service on account of which no accidental death benefit is payable under section 10 there shall be paid to such member's widow or widower a pension of 50% of final compensation for the use of himself or herself and children of the deceased member, to continue during his or her widowhood; if there is no surviving widow or widower or in the case the widow or widower dies or remarries, 50% of final compensation shall be payable to one surviving child or, if there are two or more children, 50% of final compensation shall be payable to such children in equal shares.

     In the event of death occurring in the first year of creditable service, the benefits, payable pursuant to this subsection, shall be computed at the annual rate of compensation.

     If there is no widow or widower or child, 25% of final compensation will be payable to one surviving parent or 40% of final compensation will be payable to two surviving parents in equal shares.

     (2)   If there is no widow or widower, child or parent, there shall be paid to any other beneficiary of the deceased member his or her aggregate contributions at the time of death.

     (3)   In no case shall the death benefit provided in subsection (1) be less than that provided under subsection (2).

     (4)   In addition to the foregoing benefits payable under subsection (1) or (2), there shall also be paid in one sum to the member's beneficiary, an amount equal to 3 1/2 times final compensation.

     (5) a. For the purposes of this section and paragraph (5) of section 10 of P.L.1944, c.255 (C.43:16A-10), a member of the Police and Firemen's Retirement System shall be deemed to be an active member for a period of no more than 93 days while on official leave of absence without pay when such leave is due to any reason other than illness, and for a period of not more than one year in the event of an official leave (a) due to the member's maternity, or (b) to fulfill a residency requirement for an advanced degree, or (c) as a full-time student at an institution of higher education, and (1) while he is disabled due to sickness or injury arising out of or in the course of his employment as a member to whom this act applies, is not engaged in any gainful occupation, and is receiving or entitled to receive periodic benefits (including any commutation of, or substitute for, such benefits) for loss of time on account of such disability under or by reason of workmen's compensation law, occupational disease law or similar legislation and has not retired or terminated his membership; or (2) for a period of no more than two years while on official leave of absence without pay if satisfactory evidence is presented to the retirement system that such leave of absence without pay is due to the member's personal illness other than an illness to which (1) above applies.

     b.    If a member dies within 30 days after the date of retirement or the date of board approval, whichever is later, a death benefit shall be payable only if he is deemed to be an active member in accordance with this section; provided, however, a member applying for disability benefits shall be deemed an active member if he was covered by the death benefit provisions of the act at the termination of employment, filed the application for disability retirement with the retirement system within 30 days following such termination of employment and dies within 30 days after the date of retirement or the date of board approval, whichever is later.  If a member files an application for disability retirement while in service and otherwise meets the requirements for disability retirement, but dies before the retirement takes effect, the retirement shall be considered effective.

     (6)   For the purposes of this section and notwithstanding the provisions of section 3 of P.L.1944, c.25 (C.43:16A-3) or any other law, rule, or regulation to the contrary, a death of an employee prior to enrollment in the Police and Firemen's Retirement System shall be deemed to have occurred during active service and the employee shall be deemed to have been enrolled at the time of death.  If such an employee died prior to the effective date of P.L.    , c.   (pending before the Legislature as this bill), a surviving spouse, surviving child, or surviving parent may apply to receive the benefits as set forth in this section and, if approved by the board of trustees, the benefits granted pursuant to this subsection shall be retroactive to the date of death of the employee.  The surviving spouse, surviving child, or surviving parent shall have no more than 12 months following the effective date of P.L.    , c.   (pending before the Legislature as this bill) to file proper proof of the death with the board of trustees and an application for the benefits pursuant to this section.

(cf: P.L.2019, c.305, s.1)

 

     2.    This act shall take effect immediately.

STATEMENT

 

     This bill requires eligible policemen and firemen to be deemed enrolled in the Police and Firemen's Retirement System (PFRS) retroactive to their first date of employment for the purpose of a death benefit.

     Under current law, eligible policemen and firemen are required to be enrolled in the PFRS as a condition of their employment.  This bill provides that the death of an employee prior to enrollment in PFRS will be deemed to have occurred during active service.  The bill requires that an employee's membership in PFRS is to be retroactive to the first date of their employment if they were not enrolled in PFRS at the time of their death.  This will permit an employee's surviving spouse, child, or parent to collect death benefits.  Additionally, if the employee died prior to the enactment of this bill, their surviving spouse, child, or parent may apply for death benefits within 12 months after the enactment of this bill.

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