New Jersey 2024-2025 Regular Session

New Jersey Senate Bill S335

Introduced
1/9/24  

Caption

Permits purchase of service credit in PERS for period of time after termination of public employment due to COVID-19 pandemic if member returned to PERS employment within 12 months.

Impact

The proposed changes in SB 335 could have significant implications for state laws governing retirement for public employees. It retroactively affects policies from January 1, 2021, ensuring that employees can regain their membership and benefits without being penalized for circumstances out of their control. By facilitating the purchase of service credit, the bill would maintain a degree of stability for PERS members, which could mitigate financial stress for many public-sector workers impacted by unexpected job losses during the pandemic.

Summary

Senate Bill 335 aims to amend the Public Employees' Retirement System (PERS) regulations regarding the purchase of service credit for members who were terminated from public employment due to the COVID-19 pandemic. Under this bill, members who have lost their jobs without personal fault and return to a PERS-eligible position within 12 months may be allowed to purchase service credit for the time they were out of work. This addresses concerns for public employees who were negatively affected by the pandemic, allowing them to restore some financial security in terms of future retirement benefits.

Contention

While the bill is positioned as a means to support public employees, potential points of contention may arise regarding fairness and funding of the PERS system. Critics could argue that allowing retroactive purchases may burden the retirement fund or discriminate against employees who did not return to work promptly or outside the stipulated time frame. Furthermore, the bill does not address the long-term fiscal health of the PERS system, which may be a concern for lawmakers and constituents focused on sustainable financial practices.

Companion Bills

NJ S2512

Carry Over Permits purchase of service credit in PERS for period of time after termination of public employment due to COVID-19 pandemic if member returned to PERS employment within 12 months.

NJ A4329

Carry Over Permits purchase of service credit in PERS for period of time after termination of public employment due to COVID-19 pandemic if member returned to PERS employment within 12 months.

Previously Filed As

NJ S2512

Permits purchase of service credit in PERS for period of time after termination of public employment due to COVID-19 pandemic if member returned to PERS employment within 12 months.

NJ A4329

Permits purchase of service credit in PERS for period of time after termination of public employment due to COVID-19 pandemic if member returned to PERS employment within 12 months.

NJ A4751

Permits purchase of service credit in SPRS for period of enrollment in military service academy and in New Jersey State Police Academy, and employment as class two special law enforcement officer.

NJ S3606

Permits purchase of service credit in SPRS for period of enrollment in military service academy and in New Jersey State Police Academy, and employment as class two special law enforcement officer.

NJ S693

Permits purchase of service credit in PERS, TPAF, PFRS, and SPRS for period of enrollment in military service academy.

NJ S806

Permits purchase of service credit in PERS, TPAF, PFRS, and SPRS for period of enrollment in military service academy.

NJ A2721

Permits purchase of service credit in PERS, TPAF, PFRS, and SPRS for period of enrollment in military service academy.

NJ A4590

Permits purchase of service credit in PERS, TPAF, PFRS, and SPRS for period of enrollment in military service academy.

NJ A224

Bars certain employees of certain public agencies from participating in PERS; repeals law permitting PERS and TPAF members on leave who work for labor organization to purchase pension credit.

NJ A948

Bars certain employees of certain public agencies from participating in PERS; repeals law permitting PERS and TPAF members on leave who work for labor organization to purchase pension credit.

Similar Bills

NJ A4329

Permits purchase of service credit in PERS for period of time after termination of public employment due to COVID-19 pandemic if member returned to PERS employment within 12 months.

NJ S2512

Permits purchase of service credit in PERS for period of time after termination of public employment due to COVID-19 pandemic if member returned to PERS employment within 12 months.

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 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 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 A5740

Extends membership in TPAF to seven years after discontinuance of service and to 25 years for those who were laid off or had 10 or more years of continuous service upon voluntary termination.

NJ S4129

Extends membership in TPAF to seven years after discontinuance of service and to 25 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.