Requires Administrative Law Judges to be enrolled in Workers Compensation Judges Part of PERS.
Impact
This legislative action impacts the retirement structure for ALJs by transitioning them from the DCRP to PERS. The required enrollment means these judges will benefit from a more robust pension system which generally offers greater lifetime financial security compared to the defined contribution model. The legislation includes provisions that allow for a transfer of service credit and unfunded liabilities to ensure equitable treatment during this transition period.
Summary
Senate Bill S305 proposes a significant change in retirement plan enrollment for Administrative Law Judges (ALJs) in New Jersey. Currently, these judges participate in the Defined Contribution Retirement Program (DCRP), which is distinct from the Workers Compensation Judges Part of the Public Employees' Retirement System (PERS). S305 mandates that all future ALJs must enroll in the Workers Compensation Judges Part of PERS, enhancing their retirement benefits and aligning their retirement plan with their responsibilities in the judicial system.
Contention
Notably, this bill could raise discussions regarding the fiscal implications for the state, particularly concerning the funding of the unfunded liabilities associated with the transferred judges. Some stakeholders may question whether the state's financial responsibility to cover these liabilities might divert funds from other essential services. Additionally, any opposition may arise from concerns about the implications for new judges entering the field, particularly in terms of their understanding of retirement options and benefits at the outset of their careers.
Permits certain PERS members to collect pension while earning salary; makes certain local administrators and prosecutors eligible for PERS membership; permits State employees not covered by collective negotiations to enroll in negotiated health plans.