New Jersey Assembly Bill A743

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Allows PERS ordinary disability retiree to earn up to $3,000 in PERS-covered employment annually before cancellation of disability benefit and reenrollment in PERS.

Impact

If enacted, this bill is expected to positively impact retirees by enabling them to supplement their income without the fear of losing their benefits. By raising the allowable earnings limit, it encourages productive engagement in the workforce for those who may still be able to perform some form of work, thus promoting economic independence and reducing reliance on state support. This change may also bring about increased participation in workforce roles that were previously unattainable due to stringent earning limitations.

Summary

Assembly Bill 743 allows ordinary disability retirees from the Public Employees' Retirement System (PERS) to earn up to $3,000 annually from PERS-covered employment without losing their disability benefits or being required to reenroll in the retirement system. Currently, any PERS ordinary disability beneficiary earning $1,500 or more annually must reenroll, which automatically cancels their disability retirement allowance until they retire again. This bill aims to provide more flexibility and financial opportunities for retirees while managing their benefits.

Contention

However, the bill may face scrutiny from those concerned about its long-term effects on the PERS fund's stability and the fairness of disability benefits. Critics might argue that allowing higher earnings without full reenrollment could lead to potential misuse of the system, with some retirees potentially overstepping their original disability conditions. Balancing the need for financial security for retirees and the integrity of the public retirement system is likely to be a point of contention during legislative deliberations.