New Jersey Assembly Bill A224

New Jersey 2022-2023 Regular Session

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

Caption

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.

Impact

According to the proposed legislation, the newly highlighted entities such as the New Jersey State League of Municipalities and the New Jersey Association of Counties will no longer be considered public agencies regarding the eligibility of their new hires for state retirement benefits. The implication of this change could mean that eligible individuals, particularly those who have not achieved 10 years of service, will lose access to health care coverage under the State Health Benefits Program, an essential factor for many workers.

Summary

Assembly Bill A224 aims to change the eligibility of certain public agency employees to participate in the State-administered Public Employees' Retirement System (PERS). The core intent of this bill is to prevent newly hired officers and employees, as well as those with less than 10 years of service credit in the retirement system, from enrolling in PERS. This measure is specifically targeted at individuals affiliated with various municipalities and educational organizations, indicating a shift in how these affiliations interact with state retirement benefits.

Contention

The bill also includes provisions that repeal existing laws allowing members of both the Teachers' Pension and Annuity Fund and PERS to purchase pension credit while on authorized leave due to work for a labor organization. This decision has raised concerns from various stakeholders, particularly labor unions and current employees, who argue that it may undermine benefits that previously existed and affect the financial security of future employees. The debates around this bill highlight tensions between the need for fiscal responsibility in state pensions and the rights of employees to access health and retirement benefits stemming from their service.