New Jersey Senate Bill S2107

New Jersey 2022-2023 Regular Session

• Introduced: 3/3/22
• Refer: 3/3/22

Caption

Makes local government business administrators eligible for memberships in PERS; provides for transfer of business administrators from participation in Defined Contribution Retirement Program to membership in PERS.

Impact

Should S2107 be enacted, it would have a significant impact on local government operations and the benefits provided to business administrators. Individuals currently participating in the DCRP can opt for membership in PERS and also may receive credit for their service under the DCRP, provided they meet certain conditions related to contributions. This transition could result in enhanced retirement security for business administrators, aligning their benefits more closely with those of other state employees.

Summary

Senate Bill S2107 proposes to make business administrators in local government eligible for membership in the Public Employees' Retirement System (PERS). Historically, since July 1, 2007, business administrators have been required to participate in the Defined Contribution Retirement Program (DCRP), which offers different retirement benefits. This bill aims to amend existing laws to allow these administrators to transition into PERS, which typically provides more advantageous retirement benefits than the DCRP.

Contention

During the discussions surrounding this bill, there may be points of contention regarding the financial implications for local governments. The requirement for employers to cover certain contributions or costs associated with this transition could raise concerns about budget constraints or pushback from local officials who may be wary of increased retirement liabilities. Furthermore, the mechanics of the transfer process and the conditions under which individuals can gain full credit for past service could lead to debates about fairness and the equitable treatment of public servants.