New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A2840

Introduced
1/9/24  

Caption

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

Impact

The introduction of A2840 represents an effort to ensure that former transit employees receive fair recognition of their service time that was spent under a different retirement system. The bill is expected to enhance the retirement security of these employees by allowing them to accumulate more creditable years towards their retirement benefits. By facilitating the transfer of funds from TERP to PERS, the legislation aims to simplify the retirement process for transit employees while ensuring compliance with both state and federal laws governing retirement funding.

Summary

Assembly Bill A2840 seeks to amend the Public Employees' Retirement System (PERS) to provide service credit recognition for active members who were previously part of the Transit Employees' Retirement Program (TERP) of the New Jersey Transit Corporation. Specifically, it allows members who were in the TERP on or before July 30, 2006, to receive credit of one year in PERS for every 3.5 years of service accrued in the TERP, contingent upon the transfer of relevant funds between the retirement programs. This proposed measure has significant implications for the retirement benefits of public employees in New Jersey, particularly those involved in transportation services.

Contention

Potential points of contention surrounding A2840 may include concerns about the financial implications of increased liabilities for the PERS due to added service credits for former transit employees. Critics may argue that this could place additional burdens on the state’s retirement system, necessitating further funding to support an increase in eligible retirees. Proponents, however, might emphasize the importance of recognizing the service contributions made by transit employees, particularly as they relate to the continuity and integration of retirement benefits for public service workers in New Jersey.

Companion Bills

NJ S2018

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

NJ A671

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

NJ S3025

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

Previously Filed As

NJ A671

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

NJ S2018

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

NJ S3025

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 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.

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.

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