Bill Text: NJ S635 | 2010-2011 | Regular Session | Introduced
Bill Title: Increases PFRS disability, accidental death and special retirement benefits.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-01-12 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S635 Detail]
Download: New_Jersey-2010-S635-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Senator ANDREW R. CIESLA
District 10 (Monmouth and Ocean)
SYNOPSIS
Increases PFRS disability, accidental death and special retirement benefits.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act increasing certain benefits for members of the Police and Firemen's Retirement System of New Jersey and amending P.L.1944, c.255 and P.L.1964, c.241.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 6 of P.L.1944, c.255 (C.43:16A-6) is amended to read as follows:
6. (1) Upon the written application by a member in service, by one acting in his behalf or by his employer, any member, under 55 years of age, who has had four or more years of creditable service may be retired on an ordinary disability retirement allowance; provided, that the medical board, after a medical examination of such member, shall certify that such member is mentally or physically incapacitated for the performance of his usual duty and of any other available duty in the department which his employer is willing to assign to him and that such incapacity is likely to be permanent and to such an extent that he should be retired.
(2) Upon retirement for ordinary disability, a member shall receive an ordinary disability retirement allowance which shall consist of:
(a) An annuity which shall be the actuarial equivalent of his aggregate contributions and
(b) A pension in the amount which, when added to the member's annuity, will provide a total retirement allowance of 1 1/2 % of final compensation multiplied by his number of years of creditable service but in no event shall the total allowance be less than [40%] 45% of the member's final compensation.
(3) Notwithstanding the provisions of subsection (2) of this section, a member who has more than 20 but less than 25 years of creditable service and who is required to retire upon application by the employer on or after the effective date of P.L.1999, c.428, shall receive an ordinary disability retirement allowance which shall consist of:
(a) An annuity which shall be the actuarial equivalent of the member's aggregate contributions; and
(b) A pension in the amount which, when added to the member's annuity, will provide a total retirement allowance of [50%] 55% of final compensation plus 3% of final compensation multiplied by the number of years of creditable service over 20 but not over 25.
(4) Upon the receipt of proper proofs of the death of a member who has retired on an ordinary disability retirement allowance, there shall be paid to such member's beneficiary, an amount equal to 3 1/2 times the compensation upon which contributions by the member to the annuity savings fund were based in the last year of creditable service; provided, however, that if such death shall occur after the member shall have attained 55 years of age the amount payable shall equal 1/2 of such compensation instead of 3 1/2 times such compensation.
(cf: P.L.1999, c.428, s.3)
2. Section 7 of P.L.1944, c.255 (C.43:16A-7) is amended to read as follows:
7. (1) Upon the written application by a member in service, by one acting in his behalf or by his employer any member may be retired on an accidental disability retirement allowance; provided, that the medical board, after a medical examination of such member, shall certify that the member is permanently and totally disabled as a direct result of a traumatic event occurring during and as a result of the performance of his regular or assigned duties and that such disability was not the result of the member's willful negligence and that such member is mentally or physically incapacitated for the performance of his usual duty and of any other available duty in the department which his employer is willing to assign to him. The application to accomplish such retirement must be filed within five years of the original traumatic event, but the board of trustees may consider an application filed after the five-year period if it can be factually demonstrated to the satisfaction of the board of trustees that the disability is due to the accident and the filing was not accomplished within the five-year period due to a delayed manifestation of the disability or to other circumstances beyond the control of the member.
(2) Upon retirement for accidental disability, a member shall receive an accidental disability retirement allowance which shall consist of:
(a) An annuity which shall be the actuarial equivalent of his aggregate contributions and
(b) A pension in the amount which, when added to the member's annuity, will provide a total retirement allowance of [2/3] 75% of the member's actual annual compensation for which contributions were being made at the time of the occurrence of the accident or at the time of the member's retirement, whichever provides the largest possible benefit to the member.
(3) Upon receipt of proper proofs of the death of a member who has retired on accidental disability retirement allowance, there shall be paid to such member's beneficiary, an amount equal to 3 1/2 times the compensation upon which contributions by the member to the annuity savings fund were based in the last year of creditable service; provided, however, that if such death shall occur after the member shall have attained 55 years of age the amount payable shall equal 1/2 of such compensation instead of 3 1/2 times such compensation.
(4) Permanent and total disability resulting from a cardiovascular, pulmonary or musculo-skeletal condition which was not a direct result of a traumatic event occurring in the performance of duty shall be deemed an ordinary disability.
(cf: P.L.1997, c.281, s.1)
3. Section 10 of P.L.1944, c.255 (C.43:16A-10) is amended to read as follows:
10. (1) Upon the death of a member in active service as a result of an accident met in the actual performance of duty at some definite time and place, and such death was not the result of the member's willful negligence, an accidental death benefit shall be payable if a report of the accident is filed in the office of the retirement system within 60 days next following the accident, but the board of trustees may waive such time limit, for a reasonable period, if in the judgment of the board the circumstances warrant such action. No such application shall be valid or acted upon unless it is filed in the office of the retirement system within five years of the date of such death.
The provisions of this subsection shall also apply to a member who is a fireman and who dies as a result of an accident met in the actual performance of duty as a volunteer fireman in any municipality in the State, provided the member's death was not the result of the member's willful negligence.
(2) Upon the receipt of proper proofs of the death of a member on account of which an accidental death benefit is payable, there shall be paid to his widow or widower a pension of [70%] 100% of the compensation, upon which contributions by the member to the annuity savings fund were based in the last year of creditable service, for the use of herself or himself and the children of the deceased member; if there is no surviving widow or widower or in case the widow or widower dies, [20%] 30% of such compensation will be payable to one surviving child, [35%] 50% of such compensation to two surviving children in equal shares and if there be three or more children, [50%] 70% of such compensation will be payable to such children in equal shares.
If there is no surviving widow, widower or child, [25%] 35% of the compensation upon which contributions by the member to the annuity savings fund were based in the last year of creditable service, will be payable to one surviving dependent parent or [40%] 60% of such compensation will be payable to two surviving parents in equal shares.
In the event of accidental 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.
(3) If there is no surviving widow, widower, child or dependent parent, there shall be paid to any other beneficiary of the deceased member, his aggregate contributions at the time of death.
(4) In no case shall the death benefit provided in subsection (2) be less than that provided under subsection (3).
(5) In addition to the foregoing benefits payable under subsection (2) or (3), there shall also be paid in one sum to such beneficiary, if living, as the member shall have nominated by written designation duly executed and filed with the retirement system, otherwise to the executor or administrator of the member's estate, an amount equal to 3 1/2 times the compensation upon which contributions by the member to the annuity savings fund were based in the last year of creditable service.
(6) In addition to the foregoing benefits, the State shall pay to the member's employer-sponsored health insurance program all health insurance premiums for the coverage of the member's surviving widow or widower and dependent children.
(cf: P.L.2003, c.181, s.2)
4. Section 16 of P.L.1964, c.241 (C.43:16A-11.1) is amended to read as follows:
16. a. Should a member resign after having established 25 years of creditable service, he may elect "special retirement," provided, that such election is communicated by such member to the retirement system by filing a written application, duly attested, stating at what time subsequent to the execution and filing thereof he desires to be retired. He shall receive, in lieu of the payment provided in section 11, a retirement allowance which shall consist of:
(1) An annuity which shall be the actuarial equivalent of his aggregate contributions, and
(2) A pension in the amount which, when added to the member's annuity, will provide a total retirement allowance of [65%] 70% of his final compensation, plus 1% of his final compensation multiplied by the number of years of creditable service over 25 but not over 30; [or, beginning in the fiscal year immediately following the adoption of the valuation report by the retirement system board of trustees in which the funded level is in excess of 104%, a pension in the amount which, when added to the member's annuity, will provide a total retirement allowance of 70% of final compensation, plus 1% of final compensation multiplied by the number of years of creditable service over 25 but not over 30;] provided, however, that any member who has earned, prior to July 1, 1979, more than 30 years of creditable service, shall receive an additional 1% of his final compensation for each year of his creditable service over 30.
The board of trustees shall retire him at the time specified or at such other time within one month after the date so specified as the board finds advisable.
Upon the receipt of proper proofs of the death of such a retired member, there shall be paid to his beneficiary an amount equal to one-half of the final compensation received by the member.
b. The "special retirement" allowance payable under subsection a. of this section to any person who retired under the retirement system prior to December 20, 1989 shall be increased by an amount equal to 5% of the person's final compensation or by such lesser amount as would, if added to the allowance payable at the time of retirement, provide a total retirement allowance of 70% of final compensation, except that in the case of such a retirant who retired on or after July 1, 1979 and had earned prior to that date more than 30 years of creditable service, the amount of the increase shall be equal to 5% of the person's final compensation irrespective of the total retirement allowance which such an increase would provide. The provisions of this subsection shall not be construed either to require a reduction in the retirement allowance payable to any retirant or to provide for the payment of any adjustment in such an allowance with respect to any period of time prior to the first day of the month following that effective date.
(cf: P.L.2003, c.108, s.2)
5. This act shall take effect immediately.
STATEMENT
This bill increases certain benefits for members of the Police and Firemen's Retirement System (PFRS). The benefits for PFRS members who retire on an ordinary disability benefit will increase from 40% to 45% of final compensation, except that the ordinary disability benefit of a PFRS member who has more than 20 but less than 25 years of service and who is required to retire upon application by the employer will increase from 50% to 55% of final compensation, plus, as currently provided, 3% of final compensation multiplied by the number of years of service over 20 but not over 25. The PFRS accidental disability benefit will increase from 66 2/3% to 75% of final compensation.
The bill increases the PFRS accidental death benefit from 70% to 100% of final compensation for a surviving spouse; in the absence of a surviving spouse, from 20% to 30% for one surviving child, from 35% to 50% for two surviving children, from 50% to 70% for three or more surviving children; in the absence of a surviving spouse or children, from 25% to 35% for one surviving dependent parent and from 40% to 60% for two surviving parents.
In addition, the bill increases the special retirement benefit for PFRS members with 25 or more years of service from 65% to 70% of final compensation, plus, as currently provided, 1% multiplied by the number of years of service over 25 but not over 30. Current law provides for an increase in the special retirement allowance to 70% in the fiscal year immediately following the adoption of the valuation report by the PFRS board of trustees in which the funded level is in excess of 104%.
