ASSEMBLY APPROPRIATIONS COMMITTEE
STATEMENT TO
ASSEMBLY, No. 5049
with committee amendments
STATE OF NEW JERSEY
DATED: MARCH 20, 2025
The Assembly Appropriations Committee reports favorably and
with committee amendments Assembly Bill No. 5049.
As amended and reported, this bill removes certain limitations on
the receipt of retirement or death benefits granted to members under
the Police and Firemen’s Retirement System (PFRS).
Pursuant to regulation, the Board of Trustees of PFRS withholds
retirement or death benefits if the entitled member is subject to
criminal charges, dismissed from public employment due to
administrative charges, or the member has pending civil litigation.
This bill removes the board’s ability to withhold retirement or
death benefits on the basis the entitled member has pending civil
litigation. Under the bill, the board will have the ability to adjust
the member’s retirement or death benefits following the disposition
of any legal proceeding.
COMMITTEE AMENDMENTS:
The committee amendments remove language which additionally
specified that the Board of Trustees of PFRS is prohibited from
holding in abeyance a member’s benefits on the basis of litigation
concerning the member’s employment.
The board will still be prohibited from holding the member’s
benefits in abeyance on the basis of any civil litigation to which the
member is a party, which may include litigation concerning the
member’s employment.
FISCAL IMPACT:
The Office of Legislative Services determines that the removal of
certain limitations on the receipt of retirement or death benefits under
PFRS may result in the system losing interest income annually from
undisbursed pension payments.
Under the bill, the Board of Trustees of PFRS is no longer
permitted to hold in abeyance retirement or death benefits if a member
is a party to pending civil litigation. Consequently, the system will no
longer earn interest income from undisbursed pension payments. The
OLS is unable to quantify this potential loss to the pension system.