Bill Text: NJ S3346 | 2018-2019 | Regular Session | Amended

New Jersey Senate Bill 3346 (Prior Session Legislation)

Bill Title: Allows emergency zero interest pension loans to certain public employees who are negatively affected by federal shutdown.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2019-01-28 - Reported from Senate Committee with Amendments, 2nd Reading [S3346 Detail]

Download: New_Jersey-2018-S3346-Amended.html

[First Reprint]

SENATE, No. 3346

STATE OF NEW JERSEY

218th LEGISLATURE

INTRODUCED JANUARY 17, 2019

Sponsored by:

Senator JOSEPH P. CRYAN

District 20 (Union)

Senator STEPHEN M. SWEENEY

District 3 (Cumberland, Gloucester and Salem)

Co-Sponsored by:

Senators Scutari and Greenstein

SYNOPSIS

Allows emergency zero interest pension loans to certain public employees who are negatively affected by federal shutdown.

CURRENT VERSION OF TEXT

As reported by the Senate Budget and Appropriations Committee on January 28, 2019, with amendments.

AN ACT allowing emergency zero interest pension loans to certain public employees who are negatively affected by federal shutdown ¹and supplementing Title 43 of the Revised Statutes¹ .

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

1. Notwithstanding any other provision of law to the contrary, any member of the New Jersey Public Employees Retirement System, during ¹[the] any¹ shutdown of the federal government ¹[that began in December 2018]¹ , whose finances will be negatively affected because a member of that member's household is a furloughed federal employee ¹or a federal employee working without pay,¹ or is a contractor whose pay is received from the federal government but is delayed or diminished as a result of the shutdown ¹and is receiving unemployment insurance benefits¹, shall be permitted to borrow up to $5,000 at zero interest¹, or the lowest interest rate permitted by federal law to maintain the qualified status of the system,¹ from the member's accumulated deductions in the retirement system in the manner provided by section 34 of P.L.1954, c.84 (C.43:15A-34). The amount so borrowed shall not be included in the calculation of the member's maximum loan balance and shall not be included in the number of loans that may be granted to any member in any calendar year. The amount so borrowed shall be repaid on the date any back pay is made available to the member of the member's household or 90 days after the loan is received by the member, whichever occurs first.

2. Notwithstanding any other provision of law to the contrary, any member of the Teachers' Pension and Annuity Fund, during ¹[the] any¹ shutdown of the federal government ¹[that began in December 2018]¹ , whose finances will be negatively affected because a member of that member's household is a furloughed federal employee ¹or a federal employee working without pay,¹ or is a contractor whose pay is received from the federal government but is delayed or diminished as a result of the shutdown ¹and is receiving unemployment insurance benefits¹, shall be permitted to borrow up to $5,000 at zero interest¹, or the lowest interest rate permitted by federal law to maintain the qualified status of the system,¹ from the member's accumulated deductions in the retirement system in the manner provided by section 10 of P.L.1983, c.216 (C.18A:66A-109.1). The amount so borrowed shall not be included in the calculation of the member's maximum loan balance and shall not be included in the number of loans that may be granted to any member in any calendar year. The amount so
borrowed shall be repaid on the date any back pay is made available to the member of the member's household or 90 days after the loan is received by the member, whichever occurs first.

3. Notwithstanding any other provision of law to the contrary, any member of the Police and Firemen's Retirement System, during ¹[the] any¹ shutdown of the federal government ¹[that began in December 2018]¹, whose finances will be negatively affected because a member of that member's household is a furloughed federal employee ¹or a federal employee working without pay;¹ or is a contractor whose pay is received from the federal government but is delayed or diminished as a result of the shutdown ¹and is receiving unemployment insurance benefits¹, shall be permitted to borrow up to $5,000 at zero interest¹, or the lowest interest rate permitted by federal law to maintain the qualified status of the system,¹ from the member's accumulated deductions in the retirement system in the manner provided by section 18 of P.L.1964, c.241 (C.43:16A-16.1). The amount so borrowed shall not be included in the calculation of the member's maximum loan balance and shall not be included in the number of loans that may be granted to any member in any calendar year. The amount so borrowed shall be repaid on the date any back pay is made available to the member of the member's household or 90 days after the loan is received by the member, whichever occurs first.

4. Notwithstanding any other provision of law to the contrary, any member of the Judicial Retirement System, during ¹[the] any¹ shutdown of the federal government ¹[that began in December 2018]¹, whose finances will be negatively affected because a member of that member's household is a furloughed federal employee ¹or a federal employee working without pay;¹ or is a contractor whose pay is received from the federal government but is delayed or diminished as a result of the shutdown ¹and is receiving unemployment insurance benefits;¹shall be permitted to borrow up to $5,000 at zero interest¹, or the lowest interest rate permitted by federal law to maintain the qualified status of the system,¹ from the member's accumulated deductions in the retirement system in the manner provided by section 1 of P.L.1997, c.25 (C.43:6A-34.3). The amount so borrowed shall not be included in the calculation of the member's maximum loan balance and shall not be included in the number of loans that may be granted to any member in any calendar year. The amount so borrowed shall be repaid on the date any back pay is made available to the member of the member's household or 90 days after the loan is received by the member, whichever occurs first.