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. 3161
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JANUARY 15, 2025
SUMMARY
Synopsis: Broadens eligibility for certain civil service and pension benefits for
veterans by eliminating requirement of service during specified dates
or in specified locations.
Type of Impact: Annual State expenditure increase; potential annual local government
expenditure increase.
Agencies Affected: Division of Pensions and Benefits in the Department of the Treasury;
Civil Service Commission.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Expenditure Increase Indeterminate
Potential Local Government Expenditure Increase Indeterminate
The Office of Legislative Services (OLS) concludes this bill would increase the annual pension
contribution by the State for the Teachers’ Pension and Annuity Fund and the Public
Employees’ Retirement System for the State and local levels because additional members
would become eligible for the special veterans retirement allowance.
The bill requires the Public Employees’ Retirement System costs for local government
employers to be paid by the State. The State currently pays the annual pension contribution of
the Teachers’ Pension and Annuity Fund on behalf of school districts.
To the extent that members of certain retirement systems become eligible for State-paid or
local government-paid healthcare benefits in retirement due to the purchase of service credit
permitted under the bill, State and local costs would increase.
The OLS notes that the Civil Service Commission may incur additional programming and
administrative costs in order to implement the civil service preference provisions of the bill.
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BILL DESCRIPTION
This bill broadens the eligibility for certain veterans' benefits by eliminating the requirement
that a veteran serve during specific wars or other periods of emergency and, in certain instances,
that a veteran serve in a war zone. Instead of service during specific dates or in specific locations,
the bill requires federal active service in any branch of the United States Armed Forces or a
Reserve component thereof.
The benefits in the bill are (1) a civil service preference under Title 11A of the New Jersey
Statutes; (2) a veteran's retirement allowance under the Teachers’ Pension and Annuity Fund or
the Public Employees’ Retirement System; and (3) the purchase of additional military service
credit in the Police and Firemen's Retirement System, the Teachers’ Pension and Annuity Fund,
the Public Employees’ Retirement System, and the State Police Retirement System.
This bill makes the State liable for any increased cost to local government employers
participating in the Public Employees’ Retirement System.
Eligibility for the civil service benefits is contingent upon voter approval of an authorizing
amendment to the State Constitution.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that the enactment of this bill would result in an indeterminate increase in
annual State expenditures and a potential indeterminate increase in annual local government
expenditures.
The OLS concludes the bill would increase the annual pension contribution by the State for
the Teachers’ Pension and Annuity Fund and the Public Employees’ Retirement System for the
State and local levels because additional members would become eligible for the special veterans
retirement allowance.
The bill requires the Public Employees’ Retirement System costs for local government
employers to be paid by the State. The State currently pays the annual pension contribution of the
Teachers’ Pension and Annuity Fund on behalf of school districts.
To the extent that members of certain retirement systems (the Police and Firemen's Retirement
System, the Teachers’ Pension and Annuity Fund, the Public Employees’ Retirement System, and
the State Police Retirement System) become eligible for State-paid or local government-paid
healthcare benefits in retirement due to the purchase of service credit permitted under the bill, State
and local costs would increase.
The OLS notes that the Civil Service Commission may incur additional programming and
administrative costs in order to implement the civil service preference provisions of the bill.
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3
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.).