New Jersey 2022-2023 Regular Session

New Jersey Senate Bill S3025

Introduced
9/22/22  

Caption

Provides service credit for PERS member for former membership in transit retirement program.

Impact

If enacted, S3025 could significantly enhance the retirement benefits of eligible public employees by allowing for greater accumulation of service credit. This change may lead to a more equitable retirement calculation for those who have transitioned between programs, thereby acknowledging their service in public transportation roles. The bill is perceived as a way to remedy any potential gaps in retirement benefits for employees who switch retirement programs due to changes in employment status or restructuring within the New Jersey Transit system.

Summary

Senate Bill S3025 addresses the issue of service credit for members of the Public Employees' Retirement System (PERS) who were previously part of the Transit Employees' Retirement Program (TERP) as established by the New Jersey Transit Corporation. Specifically, the bill aims to ensure that these members can receive credit for their time served in the TERP when calculating retirement benefits. The eligibility for this service credit applies to individuals who were members of the TERP on or before July 30, 2006. Under the proposed legislation, members would gain one year of service credit in PERS for every 3.5 years they had previously accrued in the TERP, contingent upon the successful transfer of funds from the TERP to the PERS.

Contention

There are potential areas of contention surrounding the funding and administration of the fund transfers from the TERP to the PERS. Critics may voice concerns regarding the financial implications for the state’s retirement system, especially if funding transfers do not occur as intended. Additionally, some may argue that the bill only addresses a specific group of employees and does not comprehensively tackle broader issues related to public employee retirement benefits. Ensuring the correct and efficient management of the contributions and reserves for those affected by this bill will be critical to its success and acceptance.

Companion Bills

NJ A671

Same As Provides service credit for PERS member for former membership in transit retirement program.

Previously Filed As

NJ S2018

Provides service credit for PERS member for former membership in transit retirement program.

NJ A671

Provides service credit for PERS member for former membership in transit retirement program.

NJ A2840

Provides service credit for PERS member for former membership in transit retirement program.

NJ S848

Makes local government business administrators eligible for memberships in PERS; provides for transfer of business administrators from participation in Defined Contribution Retirement Program to membership in PERS.

NJ S2107

Makes local government business administrators eligible for memberships in PERS; provides for transfer of business administrators from participation in Defined Contribution Retirement Program to membership in PERS.

NJ S2130

Extends membership in TPAF to four years after discontinuance of service and to 20 years for those who were laid off or had 10 or more years of continuous service upon voluntary termination.

NJ S3755

Extends membership in TPAF to four years after discontinuance of service and to 20 years for those who were laid off or had 10 or more years of continuous service upon voluntary termination.

NJ A3525

Extends membership in TPAF to four years after discontinuance of service and to 20 years for those who were laid off or had 10 or more years of continuous service upon voluntary termination.

NJ S2078

Extends membership in TPAF to 10 years after discontinuance of service and to 15 years for those who were laid off or had 10 or more years of continuous service upon voluntary termination.

NJ A1675

Extends membership in TPAF to 10 years after discontinuance of service and to 15 years for those who were laid off or had 10 or more years of continuous service upon voluntary termination.

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