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.).