New Jersey Assembly Bill A2982

New Jersey 2022-2023 Regular Session

• Introduced: 2/28/22
• Refer: 2/28/22

Caption

Provides certain public employees in State-administered retirement system who continue preexisting volunteer relationship with employer have bona fide severance from employment for compliance with State and federal regulations.

Impact

The implications of AB A2982 are significant for the labor landscape within public sector entities, particularly for how retired employees can engage with their communities. By allowing retirees to volunteer, it aims to bolster participation in local governance and mitigate the potential shortage of volunteers that organizations might face. This is particularly critical given the ever-increasing demand for community services that depend on volunteers. The bill requires that the volunteer role must be distinct from their former employment and includes specific conditions, such as specialized training and decision-making responsibilities to ensure compliance with retirement regulations.

Summary

Assembly Bill A2982 seeks to allow certain public employees within State-administered retirement systems to maintain volunteer roles after retirement without jeopardizing their pension status. The bill specifically applies to those who on their retirement date have reached the applicable service retirement age and who will not serve in roles related to their past employment with the same public employer. This legislative measure serves to encourage experienced individuals to continue contributing to their communities in roles that enhance local governance and volunteerism, such as on planning boards or recreation committees.

Contention

While the bill has clear benefits, it does raise important compliance questions regarding federal pension regulations. One contention exists around ensuring that continuing volunteer roles do not conflict with federal definitions of 'bona fide severance from employment,' which typically requires a more extended break from employment to validate retirement benefits. Opponents may argue that this could complicate retirement eligibility and undermine the intended retirement safety net, calling for careful consideration of the bill's potential unintended consequences on pension fund viability.