Office of Legislative Services
State House Annex
P.O. Box 068
Trenton, New Jersey 08625
Legislative Budget and Finance Office
Phone (609) 847-3105
Fax (609) 777-2442
www.njleg.state.nj.us
LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 2507
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: FEBRUARY 3, 2025
SUMMARY
Synopsis: Requires Administrative Law Judges to be enrolled in Workers
Compensation Judges Part of PERS.
Type of Impact: Annual State expenditure increase to the General Fund.
Agencies Affected: Department of the Treasury.
Office of Legislative Services Estimate
Fiscal Impact
Annual State Expenditure Increase $5.5 million
The Office of Legislative Services (OLS) anticipates that requiring Administrative Law Judges
to be enrolled in the Workers Compensation Judges Part of the Public Employees’ Retirement
System will increase annual State expenditures by a total of $5.5 million.
BILL DESCRIPTION
This bill requires Administrative Law Judges to be enrolled in the Workers Compensation Part
of the Public Employees’ Retirement System. Under the bill, the unfunded liability for the benefits
granted to members transferred into the Workers Compensation Part of the retirement system will
be paid by appropriations from the General Fund.
Current law requires any Administrative Law Judge appointed on or after July 1, 2007 who
was not enrolled in the Public Employees’ Retirement System to be enrolled in the Defined
Contribution Retirement Program. Prior to July 1, 2007, Administrative Law Judges were enrolled
in the Public Employees’ Retirement System. Current law also permits Administrative Law
Judges who were enrolled in a different State-administered retirement system prior to July 1, 2007
to transfer into the regular part of the Public Employees’ Retirement System. FE to A2507
2
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS anticipates that requiring Administrative Law Judges to be enrolled in the Workers
Compensation Judges Part of the Public Employees’ Retirement System will increase annual State
expenditures by a total of $5.5 million. The transfer of Administrative Law Judges from the regular
part of the Public Employees’ Retirement System to the Workers Compensation Judges Part
accounts for approximately $0.5 million of the increase. The transfer of Administrative Law
Judges from the Defined Contribution Retirement Program to the Workers Compensation Judges
Part accounts for the remaining $5 million increase.
Annual Cost Increase Total
Normal Cost Unfunded Accrued
Liability
Transfer ALJs in PERS to
WCJ Part of PERS
$ - $ 465,235 $ 465,235
Transfer ALJs in DCRP to
WCJ Part of PERS
$ 128,251 $ 4,863,735 $ 4,991,986
Total $ 128,251 $ 5,328,970 $ 5,457,221
Section: State Government
Analyst: Anna Harris
Associate Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).