New Jersey Assembly Bill A1796

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Allows members of PERS Prosecutors Part to establish purchased PERS credit in the Part at additional cost.

Impact

Should this bill pass, it would specifically alter the current framework governing how prosecutors accrue retirement benefits and clarify the cost associated with purchasing service credit. Currently, members within the Prosecutors Part receive enhanced benefits compared to regular PERS service credit. The proposed legislation intends to allow for greater flexibility in credit purchasing, which may help ensure that the benefits reflect their duties and risks associated with the legal profession. Thus, this could potentially address disparities and increase job satisfaction among members of this segment of public employees.

Summary

Assembly Bill A1796 proposes an amendment to the Public Employees' Retirement System (PERS) allowing members of the Prosecutors Part to establish purchased credit within the system. This change permits members to make additional financial contributions in order to gain service credit, which is comparable to the purchasable credits for regular members of PERS. This bill aims to standardize the credit purchasing process for members within the specialized Prosecutors Part, making it more aligned with the benefits available to other PERS members.

Contention

While the intent of the bill appears to be beneficial, there may be concerns from legislators or stakeholders regarding the financial implications for the retirement system as a whole. Some may argue that the increased costs of additional benefits could lead to long-term financial strain on the pension fund. Additionally, there could be debates over equity among different service types within PERS and whether certain groups of public employees should have the option to contribute for added benefits over others. As discussions continue, stakeholders will likely assess the implications of introducing this avenue for credit purchasing in detail.