Bill Text: NJ A3381 | 2020-2021 | Regular Session | Introduced


Bill Title: Permits municipality, fire district or authority to approve transfer of certain firefighters from PERS to PFRS.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2020-02-25 - Introduced, Referred to Assembly State and Local Government Committee [A3381 Detail]

Download: New_Jersey-2020-A3381-Introduced.html

ASSEMBLY, No. 3381

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED FEBRUARY 25, 2020

 


 

Sponsored by:

Assemblywoman  GABRIELA M. MOSQUERA

District 4 (Camden and Gloucester)

Assemblywoman  YVONNE LOPEZ

District 19 (Middlesex)

 

 

 

 

SYNOPSIS

     Permits municipality, fire district or authority to approve transfer of certain firefighters from PERS to PFRS.

 

CURRENT VERSION OF TEXT

     As introduced.

 


An Act allowing certain public employers to approve the transfer of firefighters from membership in the Public Employees' Retirement System to membership in the Police and Firemen's Retirement System and supplementing P.L.1944, c.255 (C.43:16A-1 et seq.).

 

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

 

     1.    a    Upon the approval by the appropriate governing body, any fireman employed by a municipality, fire district or authority on the effective date of this act, P.L.    , c.   (C.      ) (pending before the Legislature as this bill), who (1) was not eligible for membership in the Police and Firemen's Retirement System (PFRS), established pursuant to P.L.1944, c.255 (C.43:16A-1 et seq.), at the time of appointment, (2) meets the requirements for membership in the retirement system as set forth in the definition of "fireman" in section 1 of P.L.1944, c.255 (C.43:16A-1), and (3) is enrolled in the Public Employees' Retirement System of New Jersey (PERS), established pursuant to P.L.1954, c.84 (C.43:15A-1 et seq.), on the effective date of this act, is eligible to become a member of PFRS, regardless of age, and may transfer membership from PERS to PFRS in accordance with the provisions of the law and regulations governing the retirement system relative to interfund transfers by waiving, within 90 days of the effective date of this act, all rights and benefits which would otherwise be provided by PERS.  If an eligible person does not file a timely waiver of PERS benefits, the person's pension status shall remain unchanged and the person's membership shall not be transferred to PFRS.  Transfers under this section shall take effect on the first day of the first full calendar month following the effective date of this act by at least 180 days. PERS shall transmit to PFRS an amount equal to the present value of the benefit under PERS accrued to the date of transfer by each person transferring to PFRS.  The service credit accrued in PERS to the date of transfer shall be transferred to PFRS and may be used to meet any service credit requirement for benefits under PFRS.  Any benefit of a member who transfers membership from PERS to PFRS under this act based upon service credit shall be the amount of benefit determined as provided under PFRS based upon the total amount of service credit multiplied by the ratio of the service credit under PFRS from the date of transfer to the total amount of service credit, plus a benefit comparable to a PERS deferred, early or regular service retirement benefit, as appropriate, based upon the age of the member at the time of retirement and the amount of PERS service credit transferred to PFRS, determined as provided under the law and regulations governing PERS for the benefit.  The total amount of service credit in PFRS, including the transferred PERS service credit, may be used to meet the service credit requirement for the benefit comparable to a PERS deferred or early retirement benefit, but the benefit shall be calculated only on the transferred PERS service credit.

     Active and retired death benefits, accidental death benefits, and ordinary and accidental disability retirement benefits for members transferring to PFRS under this act shall be the benefits provided under PFRS.

     For members transferring to PFRS under this act, the widows' or widowers' pensions provided under section 26 of P.L.1967, c.250 (C.43:16A-12.1) shall be the amount of the benefit determined as provided under that section multiplied by the ratio of the service credit under PFRS from the date of transfer to the total amount of service credit.  Transferring members shall be entitled to elect optional retirement allowances for the portions of their retirement benefits based upon their PERS service credit as provided under the laws and regulations governing selection of optional retirement allowances under PERS.

     b.    Notwithstanding the provisions of subsection a. of this section, a fireman who transfers membership from PERS to PFRS may receive full credit toward benefits under PFRS for the transferred PERS service credit if the member agrees to pay the full cost of the accrued liability for the transferred PERS service credit in the same manner and subject to the same terms and conditions provided for the purchase of credit for military service under section 3 of P.L.1991, c.153 (C.43:16A-11.11).

     c.     The State shall not be liable for additional costs incurred by a local employer as a result of the transfers permitted by this section.

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill provides that a firefighter, employed on the effective date of the bill by a municipality, fire district or authority, who (1) was not eligible for membership in the Police and Firemen's Retirement System (PFRS) at the time of appointment, (2) meets the PFRS definition of "fireman," and (3) is currently enrolled in the Public Employees' Retirement System (PERS), may transfer, subject to the approval of the municipal or other governing body, from PERS to PFRS, regardless of age.

     Current law provides that a person appointed as a firefighter after the age of 35 years is not eligible for PFRS membership.  A municipality may not appoint as a firefighter a person over age 35, except that a municipal volunteer firefighter may be appointed to a paid position with that municipality after age 35 but before age 40.

A fire district or authority may appoint firefighters without an age restriction.  Persons with legal appointments as firefighters after age 35 are enrolled in PERS.

     Under the bill, a firefighter may receive full credit toward benefits under PFRS for the transferred PERS service credit upon the firefighter's payment of the full cost of the accrued liability associated with that transfer; otherwise, benefits will be apportioned between PERS and PFRS according to the ratios of PERS and PFRS service credit to the total amount of service credit.

     The bill provides that the State will not be liable for additional costs incurred by a local employer as a result of the transfers permitted by the bill.

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