New Jersey Assembly Bill A4329

New Jersey 2022-2023 Regular Session

• Introduced: 6/20/22
• Refer: 6/20/22

Caption

Permits purchase of service credit in PERS for period of time after termination of public employment due to COVID-19 pandemic if member returned to PERS employment within 12 months.

Impact

If passed, A4329 would amend existing legislation concerning the PERS to incorporate provisions specific to the disruptions caused by the COVID-19 pandemic. This modification not only serves to support affected employees in maintaining their pension benefits but also addresses the unique challenges posed by the pandemic in the public employment sector. By introducing a pathway for service credit purchase under these circumstances, the bill could potentially have implications for how retirement systems adapt to exceptional events that disrupt employment continuity.

Summary

Assembly Bill A4329 allows members of the Public Employees' Retirement System (PERS) to purchase service credit for any time during which they were not employed due to a public employment termination without fault as a result of the COVID-19 pandemic. This legislation stipulates that eligible members must return to service in a PERS-eligible position within 12 months from the end of their public employment to qualify for the purchase of such credit. The initiative aims to support public sector employees impacted by the pandemic by allowing them to maintain their retirement benefits, especially for those who might have experienced interruptions in service.

Contention

While the bill's intent is to assist public employees adversely affected by the pandemic, some may raise concerns regarding the retroactive nature of the law and its implications on the broader retirement funding landscape. Critics might argue about fairness and budgetary constraints related to retroactive credit purchases, potentially impacting the financial health of the retirement system. However, supporters would likely highlight the importance of safeguarding public employees' benefits during unprecedented times, emphasizing that the bill provides necessary flexibility to the retirement system in the face of societal challenges.