New Jersey Assembly Bill A2251

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Permits municipality, fire district or authority to approve transfer of certain firefighters from PERS to PFRS.

Impact

The proposed changes under A2251 could significantly impact firefighters who have been constrained by existing laws that limit PFRS membership to those appointed before age 35. Current law allows individuals over the age of 35 to serve as firefighters under PERS, but this bill opens the door for them to convert to PFRS under certain conditions. Provided their local governing bodies approve the transfer, this bill will allow firefighters to receive full credit towards their retirement benefits based on their combined service in both retirement systems, contingent upon their agreement to cover the accrued liability costs associated with this transfer.

Summary

Assembly Bill 2251 (A2251) proposes to allow certain public employers in New Jersey, including municipalities, fire districts, or authorities, to approve the transfer of firefighters from the Public Employees' Retirement System (PERS) to the Police and Firemen's Retirement System (PFRS). The bill targets firefighters who were previously ineligible for membership in PFRS at their appointment but meet the definition of 'fireman' as outlined in existing statutes and are currently enrolled in PERS. This legislation enables eligible firefighters to transfer their retirement memberships regardless of age, which is a notable shift given the previous restrictions on age for PFRS membership.

Contention

While the bill seems to offer a beneficial route for firefighters seeking better retirement options, it does come with notable contention. Critics may argue that the financial implications of these transfers could affect local budgets without state support for the additional costs incurred by municipalities. Others may express concern that transferring liabilities to municipal budgets could pose challenges for local economies already facing fiscal pressures. Overall, the balance of providing enhanced benefits for firefighters while managing the economic impact on local governments represents a critical area of discussion around A2251.