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
[First Reprint]
ASSEMBLY, No. 5049
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: MARCH 26, 2025
SUMMARY
Synopsis: Removes certain limitations on receipt of retirement or death benefits
under PFRS.
Type of Impact: Potential annual loss of interest income from undispersed pension
payments – Police and Firemen’s Retirement System.
Agencies Affected: Department of the Treasury.
Office of Legislative Services Estimate
Fiscal Impact
Police and Firemen’s Retirement System –
potential annual loss of interest income from
undispersed pension payments Indeterminate
The Office of Legislative Services (OLS) determines that the removal of certain limitations on
the receipt of retirement or death benefits under the Police and Firemen’s Retirement System
may result in the system losing interest income annually from undisbursed pension payments.
Under the bill, the Board of Trustees of the Police and Firemen’s Retirement System 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.
BILL DESCRIPTION
This bill removes certain limitations on the receipt of retirement or death benefits under the
Police and Firemen’s Retirement System.
Under current regulation, the Board of Trustees of the Police and Firemen’s Retirement System
is permitted to hold in abeyance retirement or death benefits to which a member of the retirement
system is entitled to if the member is subject to criminal charges, dismissed from public FE to A5049 [1R]
2
employment due to administrative charges, or the member has pending civil litigation pertaining
to the member’s employment.
The bill removes the board’s authority to hold in abeyance retirement or death benefits if a
member is a party to pending civil litigation. Under the bill, the board retains the authority to hold
in abeyance retirement or death benefits if a member is subject to criminal charges or dismissed
from public employment due to administrative charges. The bill also codifies the board’s authority
to adjust a member’s retirement or death benefits based upon the disposition of any legal
proceeding to which the member was a party.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS determines that the removal of certain limitations on the receipt of retirement or death
benefits under the Police and Firemen’s Retirement System may result in the system losing interest
income annually from undisbursed pension payments.
Under the bill, the Board of Trustees of the Police and Firemen’s Retirement System 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 because
it lacks the informational basis to estimate the number of members that will be affected in a given
year, the amount of the pension payments that would have otherwise remained undisbursed, and
the duration of any ongoing litigation.
Section: State Government
Analyst: Camryn Mathews
Assistant 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.).