New Jersey Senate Bill S3705

New Jersey 2022-2023 Regular Session

• Introduced: 3/3/23
• Refer: 3/3/23

Caption

Requires Administrative Law Judges to be enrolled in Workers Compensation Judges Part of PERS.

Impact

The re-enrollment of ALJs into the Workers Compensation Judges Part of PERS introduces particular provisions regarding how retirement benefits are calculated and accrued. ALJs participating in the DCRP will be transferred into the Workers Compensation and Administrative Law Judges Part of PERS, which will allow them to receive retirement allowances comparable to those of their peers in the workers compensation sector. This initiative not only ensures equitable treatment among judges but also aims to simplify the administration of retirement benefits and liabilities associated with them.

Summary

Senate Bill S3705, introduced in the New Jersey 220th Legislature, requires that Administrative Law Judges (ALJs) be enrolled in the Workers Compensation Judges Part of the Public Employees' Retirement System (PERS). This change marks a significant shift as ALJs were previously participants in the Defined Contribution Retirement Program (DCRP). The bill aims to streamline the retirement benefits for these judges by integrating them into a retirement system that governs the benefits and regulations set for workers compensation judges, thereby providing a uniform retirement framework for all judges performing similar roles in the state.

Contention

Debate surrounding S3705 may arise from concerns over the financial implications for the state's retirement fund. The bill specifies that unfunded liabilities resulting from judges’ transfers will primarily be covered by appropriations from the State General Fund, which underscores the importance of fiscal sustainability in maintaining such benefits. Critics may argue about the adequacy of the funding mechanisms allocated to support this adjustment, given the potential strain it could place on state finances. Furthermore, the bill's provision for judges aged 60 years or older to continue serving until they attain 10 years of service credit could be a point of contention, as it intertwines with discussions about workforce management and retiree positions in state governance.