(Sponsorship Updated As Of: 6/6/2024)
ASSEMBLY, No. 1675
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblywoman PAMELA R. LAMPITT
District 6 (Burlington and Camden)
Assemblywoman ROSAURA "ROSY" BAGOLIE
District 27 (Essex and Passaic)
Assemblyman STERLEY S. STANLEY
District 18 (Middlesex)
Co-Sponsored by:
Assemblywomen Quijano, Reynolds -Jackson, Murphy, Katz,
Assemblyman Miller, Assemblywoman Morales, Assemblyman Rodriguez,
Assemblywomen McCann Stamato and Hall
SYNOPSIS
Extends membership in TPAF to seven years after discontinuance of service
and to 25 years for those who were laid off or had 10 or more years of
continuous service upon voluntary termination.
CURRENT VERSION OF TEXT
As reported by the Assembly Education Committee with technical review.
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EXPLANATION – Matter enclosed in bold-faced brackets [thus] in the above bill is
not enacted and is intended to be omitted in the law.
Matter underlined thus is new matter.
AN ACT concerning the return to service of members of the 1
Teachers’ Pension and Annuity Fund, amending various parts of 2
the statutory law and supplementing chapter 66 of Title 18A of 3
the New Jersey Statutes. 4
5
BE IT ENACTED by the Senate and General Assembly of the State 6
of New Jersey: 7
8
1. N.J.S.18A:66-7 is amended to read as follows: 9
18A:66-7. Membership of any person shall cease: 10
(a) if, except as provided in N.J.S.18A:66-8, he shall 11
discontinue his service for more than [two] seven consecutive 12
years; 13
(b) upon the withdrawal by a member of his accumulated 14
deductions as provided in this article; 15
(c) upon resignation and election to receive, in lieu of the return 16
of his accumulated deductions, the benefits provided in 17
N.J.S.18A:66-36 and N.J.S.18A:66-37; 18
(d) upon retirement; 19
(e) at death; 20
but not otherwise except as provided in this article. 21
The pension fund shall send written notice in care of the last 22
employer of a member at least 60 days in advance of the date on 23
which his inactive membership shall expire as provided in 24
subsection (a) of this section. 25
(cf: P.L.1967, c.271, s.1) 26
27
2. N.J.S.18A:66-8 is amended to read as follows: 28
18A:66-8. a. If a teacher: 29
(1) is dismissed by an employer by reason of reduction in 30
number of teachers employed in the school district, institution or 31
department when in the judgment of the employer it is advisable to 32
abolish any office, position or employment for reasons of a 33
reduction in the number of pupils, economy, a change in the 34
administrative or supervisory organization or other good cause; or 35
becomes unemployed by reason of the creation of a regional school 36
district or a consolidated school district; or has been discontinued 37
from service without personal fault or through leave of absence 38
granted by an employer or permitted by any law of this State; or 39
meets the eligibility requirements of N.J.S.18A:66-36; and 40
(2) has not withdrawn the accumulated member's contributions 41
from the retirement system, the teacher's membership may continue, 42
notwithstanding any provisions of this article, if the member returns 43
to service within a period of [10] 25 years from the date of 44
discontinuance from service. 45
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No credit for retirement purposes shall be allowed to the member 1
covering the period of discontinuance, except as provided in this 2
section. In computing the service or in computing final 3
compensation, no time after September 1, 1919, during which a 4
member shall have been employed as a teacher at an annual salary 5
or remuneration, or a number of hours of work, fixed at less than 6
that which is required for membership pursuant to N.J.S.18A:66-4 7
as applicable to the member shall be credited. In computing the 8
service or in computing final compensation, no time after the 9
effective date of P.L.2010, c.1, during which a member shall have 10
been employed as a teacher for fewer than 32 hours per week shall 11
be credited, unless the member shall have been a member since that 12
effective date continuously. In the case of a veteran member credit 13
shall be given for service rendered prior to January 1, 1955, in an 14
employment, office or position if the annual salary or remuneration 15
therefor was fixed at not less than $300.00 and the service consisted 16
of the performance of the full duties of the employment, office or 17
position. 18
b. A teacher may purchase credit for time during which the 19
teacher shall have been absent on an official leave without pay. The 20
credit shall be purchased for a period of time equal to: 21
(1) three months or the duration of the leave, whichever is less; 22
or 23
(2) if the leave was due to the member's personal illness, two 24
years or the duration of the leave, whichever is less; or 25
(3) the period of leave that is specifically allowed for retirement 26
purposes by the provisions of any law of this State. 27
The purchase shall be made in the same manner and be subject to 28
the same terms and conditions provided for the purchase of previous 29
membership service by N.J.S.18A:66-9. 30
(cf: P.L.2010, c.1, s.2) 31
32
3. N.J.S. 18A:66-15 is amended to read as follows: 33
18A:66-15. In computing for retirement or for purposes of 34
resignation or separation from service under N.J.S.18A:66-36 and 35
N.J.S.18A:66-37 the total service of a member about to be retired, 36
the retirement system shall credit him with all service rendered by 37
him since he last became a member and in addition, with all the 38
service to which he is entitled and with no other service. Except as 39
otherwise provided in this article, such service credit shall be final 40
and conclusive for retirement purposes, or for purposes of 41
resignation under N.J.S.18A:66-36 and N.J.S.18A:66-37, unless the 42
member shall discontinue his service for more than [two] seven 43
consecutive years. In the case of a member for whom compensation 44
is defined in paragraph (2) of subsection d. of N.J.S.18A:66-2, the 45
retirement system shall credit the member with the time of all 46
service rendered by the member during the part of any year that the 47
member was a participant of the Defined Contribution Retirement 48
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Program, pursuant to paragraph (5) of subsection a. of section 2 of 1
P.L.2007, c.92 (C.43:15C-2) as amended by section 12 of P.L.2007, 2
c.103, and making contributions to that program. 3
For the purpose of computing service for retirement purposes, 4
the board of trustees shall fix and determine by appropriate rules 5
and regulations how much service in any year shall equal a year of 6
service and part of a year of service. Not more than one year shall 7
be credited for all service in a calendar year. 8
(cf: P.L.2007, c.103, s.17) 9
10
4. N.J.S.18A:66-36 is amended to read as follows: 11
18A:66-36. Should a member of the Teachers' Pension and 12
Annuity Fund, after having completed 10 years of service, be 13
separated voluntarily or involuntarily from the service, before 14
reaching service retirement age, and not by removal for conduct 15
unbecoming a teacher or other just cause under the provisions of 16
N.J.S.18A:28-4 to N.J.S.18A:28-5 and N.J.S.18A:28-9 to 17
N.J.S.18A:28-13 inclusive, such person may elect to receive, in lieu 18
of the payment provided in N.J.S.18A:66-34: 19
a. The payments provided for in N.J.S.18A:66-37, if he so 20
qualified under said section; or 21
b. A deferred retirement allowance beginning at age 60, or for 22
a person who becomes a member of the retirement system on or 23
after the effective date of P.L.2008, c.89 beginning at age 62, which 24
shall be made up of an annuity derived from the member's 25
accumulated deductions at the time of his severance from the 26
service, and a pension in the amount which, when added to the 27
member's annuity, will provide a total retirement allowance of 1/64 28
of final compensation for each year of service credited as Class A 29
service and 1/55 of final compensation for each year of service 30
credited as class B service, or for a person who becomes a member 31
of the retirement system on or after the effective date of P.L.2010, 32
c.1 1/60 of final compensation for each year of service credited as 33
class B service, calculated in accordance with N.J.S.18A:66-44, 34
with optional privileges provided for in N.J.S.18A:66-47 if he 35
exercises such optional privilege at least 30 days before his 36
attainment of the normal retirement age; provided, that such 37
election is communicated by such member to the retirement system 38
in writing stating at what time subsequent to the execution and 39
filing thereof he desires to be retired; and provided, further, that 40
such member may later elect: (1) to receive the payments provided 41
for in N.J.S.18A:66-37, if he had qualified under that section at the 42
time of leaving service, except that in order to avail himself of the 43
optional privileges pursuant to N.J.S.18A:66-47, he must exercise 44
such optional privilege at least 30 days before the effective date of 45
his retirement; or (2) to withdraw his accumulated deductions with 46
interest as provided in N.J.S.18A:66-34. If such member shall die 47
before attaining service retirement age, then his accumulated 48
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deductions, plus regular interest after January 1, 1956, shall be paid 1
in accordance with N.J.S.18A:66-38, and, in addition if such 2
member shall die after attaining service retirement age and has not 3
withdrawn his accumulated deductions, an amount equal to 3/16 of 4
the compensation upon which contributions by the member to the 5
annuity savings fund were based in the last year of creditable 6
service shall be paid to such member's beneficiary. 7
Any member who, having elected to receive a deferred 8
retirement allowance, again becomes an employee covered by the 9
retirement system while under the age of 60 or, if that person 10
became a member of the retirement system on or after the effective 11
date of P.L.2008, c.89, while under the age of 62, shall thereupon 12
be reenrolled. If he had discontinued his service for more than 13
[two] seven consecutive years, subsequent contributions shall be at 14
a rate applicable to the age resulting from the subtraction of his 15
years of creditable service at the time of his last discontinuance of 16
contributing membership from his age at the time of his return to 17
service. He shall be credited with all service as a member standing 18
to his credit at the time of his election to receive a deferred 19
retirement allowance. 20
(cf: P.L.2010, c.1, s.8) 21
22
5. Section 7 of P.L.1969, c.242 (C.18A:66-173) is amended to 23
read as follows: 24
7. (a) When a member of the Teachers' Pension and Annuity 25
Fund or the Public Employees' Retirement System or the Police and 26
Firemen's Retirement System elects to transfer to an alternate 27
benefit program by filing the proper application form declaring his 28
election to participate in such alternate benefit program, the 29
respective retirement system shall transfer the amount of his 30
accumulated deductions as of the date of transfer to his individual 31
account in the program. 32
(b) There shall also be transferred from the contingent reserve 33
fund or the pension fund of the Teachers' Pension and Annuity Fund 34
or the Public Employees' Retirement System or the Police and 35
Firemen's Retirement System or from the Group Annuity Plan to the 36
individual's account in the alternate benefit program, the pension 37
reserve required as of the date of his transfer to provide a pension 38
for each year of service credited to the account of the member as set 39
forth in N.J.S.18A:66-36 or N.J.S.18A:66-44 or as set forth in 40
section 38 or section 48 of P.L.1954, c.84 as such sections have 41
been amended and supplemented as of July 1, 1969 (C.43:15A-38, 42
C.43:15A-48) or as set forth in section 17 of P.L.1964, c.241 43
(C.43:16A-11.2) or section 5 of P.L.1944, c.255 (C.43:16A-5) or 44
for each year of service credited under the Group Annuity Plan. 45
Such transfer from the contingent reserve fund or the pension fund 46
of the Teachers' Pension and Annuity Fund or the Public 47
Employees' Retirement System or the Police and Firemen's 48
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Retirement System or the Group Annuity Plan shall be made at the 1
time of the member's transfer to the alternate benefit program in the 2
case of any such member who has then met the eligibility 3
requirements for a pension under the aforementioned N.J.S.18A:66-4
36, or N.J.S.18A:66-44, or section 38 or section 48 of P.L.1954, 5
c.84 (C.43:15A-38, C.43:15A-48) or section 17 of P.L.1964, c.241 6
(C.43:16A-11.2) or section 5 of P.L.1944, c.255 (C.43:16A-5) or 7
the Group Annuity Plan. In the case of any member who elects to 8
participate in the alternate benefit program who has not then met 9
the eligibility requirements for a pension under N.J.S.18A:66-36 or 10
N.J.S.18A:66-44, or under section 38 or section 48 of P.L.1954, 11
c.84 (C.43:15A-38, C.43:15A-48) or section 17 of P.L.1964, c.241 12
(C.43:16A-11.2) or section 5 of P.L.1944, c.255 (C.43:16A-5) or 13
under the Group Annuity Plan, the transfer from the contingent 14
reserve fund or the pension fund of the and Annuity Fund or the 15
Public Employees' Retirement System or the Police and Firemen's 16
Retirement System or the Group Annuity Plan shall be effected at 17
the time such requirements have been met, taking into account for 18
the purpose of such eligibility requirement his years of membership 19
service at the time of his election and his subsequent years of 20
service as a full-time member of the faculty of Rutgers, The State 21
University, the New Jersey Institute of Technology, Rowan 22
University, Montclair State University, Kean University, or the 23
State or county colleges or as an eligible employee of the 24
Department of Higher Education, or at the time he shall have 10 25
years of credit for New Jersey service and becomes physically 26
incapacitated for the performance of duty if he had been a member 27
of the Teachers' Pension and Annuity Fund or the Public 28
Employees' Retirement System or the Police and Firemen's 29
Retirement System as of the date of transfer. 30
The annuity to be used in determining the amount of pension is 31
the actuarial equivalent of the member's accumulated deductions 32
transferred from the Teachers' Pension and Annuity Fund or the 33
Public Employees' Retirement System or the Police and Firemen's 34
Retirement System to the date the member attains 60 years of age, if 35
subsequent to the date of election. The amount of pension is that 36
established by formula within N.J.S.18A:66-44 or section 48 of 37
P.L.1954, c.84 as such sections have been amended and 38
supplemented as of July 1, 1969 (C.43:15A-48) or section 5 of 39
P.L.1944, c.255 (C.43:16A-5) or under the Group Annuity Plan, and 40
changes to N.J.S.18A:66-44 or section 48 of P.L.1954, c.84 41
(C.43:15A-48) or section 5 of P.L.1944, c.255 (C.43:16A-5) 42
enacted subsequent to this act or the Group Annuity Plan shall have 43
no application to the provisions of this act. 44
In the event that the eligibility requirement under N.J.S.18A:66-45
36 or under section 38 of P.L.1954, c.84 (C.43:15A-38) or section 46
17 of P.L.1964, c.241 (C.43:16A-11.2) or under the Group Annuity 47
Plan is changed at some future date to permit members to become 48
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eligible for such benefit prior to the completion of 15 years of 1
service, the transfer of the reserve from the contingent reserve fund 2
or the pension fund of the Teachers' Pension and Annuity Fund or 3
the Public Employees' Retirement System or the Police and 4
Firemen's Retirement System or from the Group Annuity Plan shall 5
be effective as of the date the member who had elected the alternate 6
benefit program meets the amended eligibility requirement or the 7
effective date of the amendment, whichever is later. 8
In the event an option is available with respect to the distribution 9
of employee and employer contributions between fixed and variable 10
annuities under the alternate benefit program, the employee shall 11
have the right to determine the percentage distribution of these 12
funds subject to any limitations imposed by the designated insurer 13
or insurers. 14
(c) No transfer of pension reserves shall be made pursuant to 15
this section where more than [two] seven consecutive years elapse 16
in which no employer contributions to an alternate benefit program 17
are required. 18
(cf: P.L.2021, c.282, s.53) 19
20
6. (New section) a. A person who returns to service with an 21
employer within the time period set forth in N.J.S.18A:66-7 or 22
N.J.S.18A:66-8 shall be eligible for enrollment in the fund based on 23
the eligibility requirements for enrollment set forth in 24
N.J.S.18A:66-4 for the member’s tier at the time of the member’s 25
termination of service prior to the return. 26
b. A person who returned to service with an employer prior to 27
the effective date of P.L. , c. (pending before the Legislature as 28
this bill) within the time period set forth in N.J.S.18A-66-7, as 29
amended, or N.J.S.18A:66-8, as amended, shall be enrolled in the 30
fund in accordance with subsection a. of this section by the Division 31
of Pensions and Benefits and shall be placed in the member’s tier at 32
the time of the member’s termination of service prior to the return. 33
There shall be no additional contributions imposed on the 34
member or the member’s employer. 35
The division shall make such adjustments and transfers as shall 36
be necessary to ensure the enrollment of the member in the fund and 37
placement in the same tier pursuant to this subsection. 38
39
7. This act shall take effect immediately. 40