New Jersey 2022 2022-2023 Regular Session

New Jersey Assembly Bill A5469 Introduced / Fiscal Note

                       
Office of Legislative Services 
State House Annex 
P.O. Box 068 
Trenton, New Jersey  08625 
 	Legislative Budget and Finance Office 
Phone (609) 847-3105 
Fax (609) 777-2442 
www.njleg.state.nj.us 
  
 
LEGISLATIVE FISCAL ESTIMATE 
ASSEMBLY, No. 5469 
STATE OF NEW JERSEY 
220th LEGISLATURE220th LEGISLATURE 
 
DATED: DECEMBER 11, 2023 
 
 
SUMMARY 
 
Synopsis: Provides for purchase of PFRS credit for service as class two special 
law enforcement officer.  
Type of Impact: Potential State and local cost increases. 
Agencies Affected: Division of Pensions and Benefits in the Department of the Treasury.  
 
 
Office of Legislative Services Estimate 
Fiscal Impact 	Year 1  Thereafter  
Potential State Cost Increase 	None Indeterminate 
Potential Local Cost Increase 	None Indeterminate 
 
 
 The Office of Legislative Services (OLS) estimates that this bill will have no impact on the 
Police and Firemen’s Retirement System in the first year following enactment because the bill 
requires the retirement system member to cover both the employee and employer cost of 
service credit. 
 The OLS does not have the information to determine the number of members who served as 
class two special law enforcement officers in the State prior to becoming eligible to participate 
in the Police and Firemen’s Retirement System nor the number of such members who would 
choose to purchase credit. However, the OLS anticipates that requiring members to be 
appointed to a position covered by the Police and Firemen’s Retirement System fewer than 
120 days after leaving service as a class two special law enforcement officer and restricting for 
current members the application window for the purchase of credit to one year from the bill’s 
enactment date will limit the number of applications. 
 The OLS acknowledges that permitting members to purchase credit for prior service as a class 
two special law enforcement officer may result in such members attaining the 25 year service 
threshold required to qualify for employer paid post-retirement medical benefits before the 
member otherwise would have, but maintains that the requirements cited in the preceding 
paragraph will limit the number of members who are able to accelerate qualification for 
employer paid post-retirement medical benefits through the mechanism provided in this bill.   FE to A5469  
2 
 
 The OLS therefore anticipates that the bill’s provisions will have a modest or no impact on the 
Police and Firemen’s Retirement System. 
 
BILL DESCRIPTION 
 
 This bill allows members of the Police and Firemen’s Retirement System to purchase credit 
for service as a class two special law enforcement officer with a public employer in the State prior 
to membership in the Police and Firemen’s Retirement System.   
 Current law enables members of the Police and Firemen’s Retirement System to purchase 
credit for public employment rendered in other states, with the federal government, or for military 
service in the Armed Forces of the United States, not to exceed 10 years.  Applicants are required 
to cover both the employee and employer share of the cost for such prior service. 
 The bill extends these and other provisions of current law to the purchase of credit in the Police 
and Firemen’s Retirement System for prior service as a class two special law enforcement officer 
contingent upon a break between such service and the date of appointment to a position covered 
by the Police and Firemen’s Retirement System of fewer than 120 days. Currently enrolled 
members will have one year from the bill’s effective date to apply for a purchase. 
 Class two special law enforcement officers are required to complete a course approved by the 
Police Training Commission.  They receive instruction in physical fitness, criminal law, patrol 
concepts, firearms, vehicle operations, defensive tactics, handcuffing, and arrest, search, and 
seizure.  They have similar powers to that of full-time police officers but on a restricted basis.  
 
 
FISCAL ANALYSIS 
 
EXECUTIVE BRANCH 
 
 None received. 
 
OFFICE OF LEGISLATIVE SERVICES 
 
 The OLS estimates that this bill will have no impact on the Police and Firemen’s Retirement 
System in the first year following enactment because the bill requires the retirement system 
member to cover both the employee and employer cost of service credit. 
 The OLS does not have the information to determine the number of members who served as 
class two special law enforcement officers in the State prior to becoming eligible to participate in 
the Police and Firemen’s Retirement System nor the number of such members who would choose 
to purchase credit. However, the OLS anticipates that requiring members to be appointed to a 
position covered by the Police and Firemen’s Retirement System fewer than 120 days after leaving 
service as a class two special law enforcement officer and restricting for current members the 
application window for the purchase of credit to one year from the bill’s enactment date will limit 
the number of applications. 
 The OLS acknowledges that permitting members to purchase credit for prior service as a class 
two special law enforcement officer may result in such members attaining the 25 year service 
threshold required to qualify for employer paid post-retirement medical benefits before the 
member otherwise would have, but maintains that the requirements cited in the preceding  FE to A5469  
3 
 
paragraph will limit the number of members who are able to accelerate qualification for employer 
paid post-retirement medical benefits through the mechanism provided in this bill.   
 The OLS therefore anticipates that the bill’s provisions will have a modest or no impact on the 
Police and Firemen’s Retirement System.  
 
 
Section: State Government  
Analyst: Anna Harris 
Assistant Fiscal Analyst 
Approved: Thomas Koenig 
Legislative Budget and Finance Officer 
 
 
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the 
failure of the Executive Branch to respond to our request for a fiscal note. 
 
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).