New Jersey Senate Bill S3427

New Jersey 2024-2025 Regular Session

• Introduced: 6/10/24
• Refer: 6/10/24

Caption

Permits companion to receive PFRS accidental death pension when there is no surviving spouse; requires adjustment of final compensation for calculation of accidental death benefit for surviving spouse, companion, and children of PFRS members.

Impact

The proposed legislation significantly alters the landscape of benefits under the PFRS. Currently, surviving spouses receive 70% of the member's compensation or a minimum annual pension of $50,000. With the introduction of this bill, companions who fulfill specific criteria of a qualifying relationship with the deceased member will also be entitled to the same level of compensation. This change may lead to increased financial security for individuals who otherwise relied on their partners and who may not have had the legal status of marriage.

Summary

Senate Bill S3427 seeks to amend the existing laws concerning accidental death benefits for survivors of members of the Police and Firemen's Retirement System (PFRS) of New Jersey. The bill allows the surviving companion of a deceased member, in the absence of a surviving spouse, the ability to receive a pension equivalent to what would be granted to a widow or widower. In addition, for surviving spouses and children, the bill includes provisions for adjustments to their pensions based on percentage increases aligned with the salary adjustments of active members, thus enhancing the financial support provided to these beneficiaries.

Contention

While support for the bill stems from the belief that it acknowledges and provides for the rights of long-term partners, there are concerns regarding the definitions and criteria set forth for identifying a 'companion.' Critics worry about the potential for disputes over eligibility, which may complicate the pension distribution process. Additionally, the retroactive application of the pension benefits for companions of members who passed away before the effective date raises questions about fairness and the burden it may place on the state's pension fund.