New Jersey Senate Bill S3667

New Jersey 2024-2025 Regular Session

• Introduced: 9/26/24
• Refer: 9/26/24

Caption

Permits purchase of service credit in PERS for time served as Eagleton Science and Politics Fellow.

Impact

The bill modifies existing retirement regulations to specifically accommodate the recognition of fellowship service in the PERS. By enabling the purchase of this service credit, it aims to incentivize involvement in civic and political programs that benefit public governance. Members who choose to make this purchase will need to make contributions that are calculated based on their age and salary. Importantly, the bill stipulates that any member currently vested in another retirement system for the same service will not be eligible to make this purchase, which protects existing benefits for other systems.

Summary

Bill S3667 aims to permit members of the Public Employees' Retirement System (PERS) in New Jersey to purchase service credit for up to one year based on their time served as an Eagleton Science and Politics Fellow. This fellowship program, administered by the Eagleton Institute of Politics at Rutgers University, provides individuals with the opportunity to engage in political science and public policy. The bill allows current and future members of PERS who participated in this program prior to their employment eligible for the retirement system to gain this credit, thus enhancing their retirement benefits.

Contention

While the bill appears to streamline benefits for those engaged in public service via the fellowship, it may raise concerns about the equity of allowing such purchases. Discussions might focus on whether this could lead to an unequal advantage for those who participated in the fellowship compared to others in the PERS who have not. Additionally, the bill mandates that employers are not liable for contributions relating to the fellow’s prior service, which could lead to resistance from public entities wary of additional financial responsibilities that could arise from this change.