New Jersey Assembly Bill A3053

New Jersey 2022-2023 Regular Session

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

Caption

Provides public employee in State-administered retirement system who continues preexisting volunteer relationship with employer from whom employee retires has bona fide severance from employment for compliance with NJ and federal regulations.

Impact

The introduction of A3053 has implications for the way New Jersey handles retirements within its public sector. By allowing retired employees to serve as volunteers without jeopardizing their retirement status, the bill encourages continued community service among retirees. This is particularly significant for roles such as firefighters and members of first aid squads, where long-term commitment to community safety is required. The bill aims to bridge the gap between retirement and serving the community, allowing for seamless transitions into volunteer positions.

Summary

Assembly Bill A3053 aims to establish clear guidelines regarding the retirement of members from State-administered retirement systems who wish to maintain a volunteer relationship with their previous employers. The bill states that if a retired employee, who has reached the applicable service retirement age and held a volunteer position not related to their previous employment, continues in that role after retirement, their retirement will still be considered a bona fide severance from employment. This provision helps clarify compliance with both New Jersey state laws and federal regulations, particularly concerning pension qualifications.

Contention

While the intention behind A3053 is to support public servants in their continued involvement with their communities, there may be concerns regarding the potential for misuse or misunderstanding of the volunteer status. Critics could argue that without strict oversight, there could be grey areas where retirees may be perceived to be receiving benefits from their previous employment due to their volunteer status. To mitigate such issues, the bill includes provisions ensuring that the retirement remains compliant with federal law, specifically regarding what constitutes legitimate severance from employment.

Additional_points

The bill highlights the importance of volunteer efforts in public service sectors and seeks to foster a culture of civic engagement among retirees. The sponsors of the bill are advocating for a system where longstanding public service careers can evolve into volunteering opportunities without penalties, ultimately benefiting communities by maintaining a robust volunteer workforce.