New Jersey Senate Bill S1031

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Increases accidental death benefit for certain members of PERS.

Impact

Additionally, S1031 introduces an alternative benefit of $50,000 for surviving spouses if that amount exceeds the pension amount. The bill also ensures that health insurance premiums for the surviving spouse and children will be covered by the state. This change aligns the benefits of PERS members with those in the Police and Firemen's Retirement System (PFRS), addressing concerns that the current structure does not adequately protect the families of public safety personnel who face increased risks in their professions. Importantly, the bill's provisions are retroactive to January 1, 2021, meaning affected families will see adjustments in benefits dating back to that period.

Summary

Bill S1031 seeks to enhance the accidental death benefits for certain members of the Public Employees' Retirement System (PERS) in New Jersey, particularly targeting those who serve as firefighters, emergency medical technicians, paramedics, hazardous materials emergency responders, and fire instructors. Under current legislation, the PERS provides a pension of 50% of the member's last year's compensation to the surviving spouse upon an accidental death. This bill proposes to increase that percentage to 70%, providing greater financial support to families affected by the loss of service members due to work-related accidents.

Contention

While the bill is generally seen as a necessary improvement for supporting families of public safety officials, some potential points of contention could arise regarding funding sources for the increased benefits. There may be concerns regarding how these enhanced financial obligations will affect the overall budgeting for the state retirement system. Stakeholders might debate the sustainability of such benefits within the framework of state financial management and the balancing of other public service funding needs.