New Jersey Assembly Bill A2507

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

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

Impact

This change aims to standardize the retirement benefits among judges in related roles and potentially improve the financial stability of their retirement plans. The transition includes provisions for transferring service credits, ensuring judges do not lose retirement benefits accrued while enrolled in the DCRP. The unfunded liabilities from this transition will be met through appropriations from the State General Fund for Administrative Law Judges or from the Second Injury Fund for Workers Compensation Judges, thus indicating a significant reliance on state resources to support this initiative.

Summary

Assembly Bill A2507 requires that Administrative Law Judges (ALJs) in New Jersey be enrolled in the Workers Compensation Judges Part of the Public Employees' Retirement System (PERS). This represents a shift from their current enrollment in the Defined Contribution Retirement Program (DCRP). The bill is structured to ensure that any ALJ appointed after its enactment must participate in this specific retirement system, thus aligning their retirement benefits more closely with those of Workers Compensation Judges. Current participants in either program will be moved to the new system within a specified period following the effective date of the bill.

Contention

While the bill is likely to streamline retirement benefits for ALJs and Workers Compensation Judges, discussions around the bill might bring to light concerns regarding the financial implications for the state budget. Legislators may debate the fairness of moving existing judges into this new retirement system and whether it adequately reflects their prior contributions and service terms. This aspect raises questions about the equity and sustainability of retirement benefits in the public sector, particularly concerning the cost to taxpayers.