Significant
legislation has been enacted and changes have been made to Division
policy and procedures in the last few years. A brief overview
of such legislation and policy/procedures is provided below.
Quick
links to the newest legislation or policy/procedures immediately
follow, for easy access:
Loans
Pension Loan Policy
— Multiple Loan, Maximum Loan Balance Allowed and Maximum
Repayment Period
Veterans
Veteran Status
for Military Service, Operation Enduring Freedom and Operation
Iraqi Freedom (Chapter 197, P.L. 2003)
Retirements
PFRS Members
Hired before January 1, 1987 Permitted to Continue Service in
the PFRS until Attainment of age 68 or 25 Years of Creditable
Service (Chapter 381, P.L. 381)
VESP Benefit
(Chapter 134, P.L. 2002)
Health Benefits
Coverage under
the SHBP Traditional Indemnity Plan for State Law Enforcement
Officers Now Limited; SHBP Coverage Options for State Law Enforcement
Officer Retirees and Nonaligned Division of State Police Retirees
Also Limited (Chapter 341, P.L. 2005)
Local Public Entities
Permitted to Provide Health Benefits to Domestic Partners of
non-SHBP Participating Employees (Chapter 334, P.L. 2005)
Health Insurers
and the SHBP Providing Dependent Coverage Are Required to Provide
Election of Coverage by Certain Dependents until their 30th
Birthday (Chapter 375, P.L. 2005)
Health Insurers Required
to Cover the Cost of Prescription Female Contraceptives (Chapter
251, P.L. 2005)
Health Insurers
Required to Pay for Mammograms for Women under 40 with Certain
Risk Factors (Chapter 86, P.L. 2004)
Health Benefits
Coverage and Members of the Legislature with Health Benefits
Eligibility through Another Public Entity (Chapter 308, P.L.2003)
Part-time
State Employees or Part-time Faculty Members at a NJ Public
Institution of Higher Education and SHBP Participation )Chapter
172, P.L. 2003)
SHBP Health
Benefits Coverage for NJ National Guard Members Called to Active
Duty (Chapter 142, P.L. 2003)
Waiving Health
Care Coverage (County or Municipal Employees, or Employees of
Other Contracting Units, Chapter 3, P.L.2003)
Recent Steps Taken
by the SHBP to Comply with the Federal HIPAA Law
Service Credit
and Purchases of Service Credit
Paid and Unpaid
Leaves of Absence for Service with Public Employee Unions Permitted,
and Full Cost Purchases of PERS Service Credit for Such Service
Also Allowed (Chapter 368, P.L. 2005)
Service
Credit in the Prosecutors Part of the PERS for Non-Prosecutor
Part PERS Service, County Prosecutors (Chapter 140, P.L. 2003)
Life Insurance,
Death Benefits
Continuation
of Accidental Death Benefit for Surviving Spouse of PFRS or
SPRS Member Who Remarries (Chapter 181, P.L. 2003)
Elimination of
Reduction in Active GLI Benefit for Active ABP Members Age 70
or Over (Chapter 75, P.L. 2003)
Enrollments
Volunteer
Firefighters Appointed to Paid Positions and Currently in the
PERS Eligible for Transfer to the PFRS (Chapter 326, P.L. 2005)
PFRS Enrollment
Required for Permanent, Full-time County Fire Marshals and Assistant
Marshals Authorized to Coordinate, Control, or Extinguish Fires
(Chapter 366, P.L 2005)
PERS Enrollment
for Eligible Employees of Bi-state or Multi-state Agencies
Repeal of
Rule Which Previously Allowed Interim Appointments to Boards
of Education (TPAF)
Creation of
the Prosecutors Part of the PERS (Chapter 366, P.L. 2001)
Member Pension
Contribution Rates—TPAF
Member Pension
Contribution Rates—PERS
Pension
Contributions to the PERS and the PFRS by Local Employers
Other
Revision to Maximum
Annual SACT Contribution Amount Allowed
Affidavit
of Domestic Partnership
All recent legislation, rule changes,
and letters to Certifying Officers are available through the Division's
Internet home page. The Internet address is http://www.state.nj.us/treasury/pensions/
New legislation can be accessed by clicking on the heading,
"Recent Legislation", where new laws are explained
in detail.
New
Legislation, by Topic:
Loans
Multiple Loans
Effective January 1, 2004, new IRS
regulations require the Division of Pensions and Benefits to change
its loan policies, specifically when members take multiple
loans. Under the new IRS regulations, members who take
multiple loans must repay the outstanding loan balance of the
original loan, and all subsequent loans taken before the original
loan is completely paid off, within five years of the issuance
of the first loan taken after January 1, 2004. Failure to repay
the loan within the five-year period will result in the uppaid
balance being declared a taxable distribution.
Maximum Loan Balance Allowed and
Maximum Repayment Period
New
loan rules imposed by the IRS effective January 1, 2002, impact
the maximum amount available to borrow as well as repayment schedules.
Internal Revenue Section Code 72(p) requires that loan balances
not exceed $50,000, and they must be paid within five years. Click
here for more details about these
loan rules.
Veterans
Operation Enduring Freedom and
Operation Iraqi Freedom
Chapter 197, P.L. 2003 extends eligibility
for certain veterans' benefits to veterans of Operations "Enduring
Freedom" and "Iraqi Freedom" who served at least
14 days in the theater of operation of those campaigns and in
direct support thereof. For
a complete listing of the periods of active military service eligible
for determination of veteran status for pension purposes, please
click here.
Veteran Status for Pension Purposes
(PERS and TPAF)
The determination of "veteran
status" for pension (TPAF and PERS) and other purposes
has been amended. The Department of Military and Veterans' Affairs
will now determine veteran status for pension purposes. Some
additional periods of active military service are now eligible
for determination of veteran status:
The definition of "veteran"
in the Teachers' Pension and Annuity Fund (TPAF) , the Public
Employees' Retirement System (PERS), and the Police and Firemen's
Retirement (PFRS), has been expanded under Chapter 128, P.L.
2001. Persons who served in the armed forces of the United States
in peacekeeping operations in Somalia and the Republic of Bosnia
and Herzegovina now qualify for veteran status, as long as the
qualifications outlined in the Certifying
Officer Letter of July 2001," Expansion of Veteran Definition",
are met.
Eligibility for certain veteran
benefits has been extended to include veterans of the Lebanon
Crisis of 1958 (Chapter 127, P.L. 2001), as long as the qualifications
outlined in the Certifying Officer
Letter of July 2001," Expansion of Veteran Definition",
are met.
Retirements
PFRS Members Hired
before January 1, 1987 Permitted to Continue Service in the PFRS
until Attainment of age 68 or 25 Years of Creditable Service (Chapter
381, P.L. 381)
Although the mandatory
retirement age for PFRS members is age 65, any PFRS member attaining
age 65 who was hired before January 1, 1987, will be permitted
to continue service in the PFRS until attainment of age 68 or
25 years of creditable service, whichever comes first, in accordance
with this law.
VESP Benefit
Chapter 134, P.L. 2002 revises the
statute that authorizes municipalities to pay pensions to widows/widowers
and to minor children of local volunteer personnel who die in
the course of volunteer service. It adds emergency medical technicians
to the list of eligible volunteer personnel (firefighters, first
aid workers, and rescue squad workers are already included). It
expands the survivors eligible to receive the pension to include
widowers as well as widows; children if the widow remarries; and
parents if the volunteer has no widow, widower, or children. Finally,
it increases the amount of the annual pension paid from $5,000
to 15,000 per year for widows/widowers of volunteers, as long
as they do not remarry. If there is no widow/widower or the widow/widower
has remarried, an annual pension of $10,000 will be paid to minor
children; If there is no surviving spouse or minor children, an
annual pension of $5,000 will be paid to the parents of the volunteer.
The State will pay the pension for volunteers whose death occurs
on or after January 1, 2000. The pension will begin in the calendar
year after the year of death or the year following the law's enactment,
whichever is later.
ERI for State Employees and Employees
of State Autonomous Authorities
Chapter 23, P.L. 2002, provides additonal
retirement benefits to eligible State employees and employees
of State autonomous authorities who meet specified age and service
requirements and who retire within a specified time period.
Disability and Veteran Retirement
Benefit Changes, PERS and TPAF
Chapter 353, P. L. 2001, changes
the PERS and TPAF retirement allowance formulas used to calculate
Ordinary Disability Retirements and Accidental Disability Retirements,
and Veteran Retirements for those with veteran status who retire
at age 60 or older with 20-34 years of service or at age 55 or
older with 25-34 years of service. It brings the PERS veteran
eligibility requirements in line with those previously offered
only to TPAF members. Finally, it changes the PERS Law Enforcement
Officers retirement allowance formulas so that "years/55"
replaces "years/60", providing an enhanced benefit.
Click here to learn more.
Creation of the Prosecutors Part
of the PERS
Chapter 366, P.L. 2001, establishes
a Prosecutors Part within the PERS, for members of the
PERS working in one of the prosecutor titles specified
by the law, with enhanced benefits. A member must be in one of
the prosecutor titles on or after the effective date of
the law (January 7, 2002). Click
here to learn more.
Creation of the Workers' Compensation
Judges Part of the PERS
Under Chapter 259, P. L. 2001, special
retirement benefits are offered to members of the Public Employees'
Retirement System who are employed by the Division of Workers'
Compensation of the Department of Labor as Workers' Compensation
Judges. Eligible titles for membership in the Workers' Compensation
Judges Part of the PERS include: Chief Judge; Administrative Supervisory
Judge; Supervisory Judge; Judge of Compensation. Click
here to learn more.
Available Payment Options for
PERS and TPAF Retirements
Payment Options for PERS and TPAF
retirements became effective July 1, 2001. For an overview of
all payment options, click
here.
Formula Changes for Service, Early,
Deferred and Veteran Retirements
A law changing the retirement formulas
for Service, Early, and Deferred and Retirements for PERS and
TPAF members was signed into law June 28, 2001 and became effective
for the October 2001 benefit, payable November 1, 2001. The defined
benefit formula for many types of retirement has changed from
"years/60" to "years/55". Click
here to learn more.
Total Yearly Compensation Allowed
in PERS-covered Employment for PERS Retirees
Chapter 278, P.L.
2001 allows PERS retirees to earn up to $15,000 of aggregate
annual compensation (total yearly compensation) in employment
covered by the Public Employees' Retirement System, without reenrolling
in the PERS and without having retirement benefits cancelled.
Exemption
from Reenrollment When Exceeding PERS Aggregate Yearly Earnings
Limit in Retirement
PERS retirees may now accept employment
with an institution of higher education in a teaching position
covered by the Public Employees' Retirement System even if
the compensation exceeds the set earnings limit, without having
retirement benefits cancelled, and without having to reenroll
in the PERS (Chapter 253, P.L. 2001).
Transfer of Previous PERS Service
to the PFRS
Chapter 201, P.L. 2001 allows police
and firefighters who transferred from the PERS to the PFRS under
Chapter 247 to have all service credited to the PFRS, without
having to pay for the transfer of previous PERS service to the
PFRS, as had been the case under Chapter 247. This law applies
to both active and retired members. Those who had already paid
to transfer their PERS service to the PFRS were sent refunds,
in December of 2001.
Pension Benefit Parity for Public
Safety Officers
Chapter 4, P.L. 2001 establishes
pension benefit parity for public safety officers not impacted
by the 5% increase in the "special retirement" allowance
provided to PFRS retirees by Chapter 204, P.L. 1989.
Health
Benefits
Coverage under the
SHBP Traditional Indemnity Plan for State Law Enforcement Officers
Now Limited; SHBP Coverage Options for State Law Enforcement Officer
Retirees and Non-aligned Division of State Police Retirees Also
Limited
All law enforcement
officeres employed by the State for whom there is a majority representative
for collective negotiation purposes may not be eligible for coverage
under the traditional plan with the State Health Benefits Program
(SHBP). Coverage under the SHBP traditional indemnity health insurance
plan may be limited or discontinued according to a binding collective
negotiations agreement or to the application by the State Health
Benefits Commission of the terms of any such agreement binding
on the State to non-aligned State employees.
The law also amends
N.J.S.A. 52:14-17.32; it requires that coverage options in retirement
for law enforcement officers employed by the State for whom there
is a majority representative for collective negotiation purposes
and for nonaligned sworn members of the Division of State Police
who retire after July 1, 2005 will be limited to those options
available to the employee on the employee's last day of employment.
Local Public Entities
Permitted to Provide Health Benefits to Domestic Partners of non-SHBP
Participating Employees
Chapter 334, P.L. 2005
permits local public entities (such as municipalites, counties,
local boards of education and county colleges) who do not participate
in the State Health Benefits Program to provide, at their
option, dependent health benefits coverage to a person who is
the domestic partner of an empoyee, in accordance with the "Domestic
Partnership Act," N.J.S.A. 26:8A-1 et seq.
Health Insurers and
the SHBP Providing Dependent Coverage Are Required to Provide
Election of Coverage by Certain Dependents until their 30th
Birthday
Chapter 375, P.L. 2005
requires health insurers to provide for an election of continued
coverage by certain dependents, following the termination of dependent
coverage at the time the dependents "age out" of coverage,
until their 30th birthday.
In order to qualify
as a "dependent" for purposes of electing coverage in
accordance with the law, the individual must meet all of
the following conditions:
- Be less than 30 years old, and;
- Be unmarried, and;
- Be without a dependent of his/her
own, and;
- Be a resident of this State or
enrolled as a full-time student at an accredited institution
of higher education, and;
- Not actually be provided coverage
as a named subscriber, insured, enrollee, or covered person
under any other group or individual health benefits plan, group
health plan, church plan, or health benefits plan, or entitled
to benefits under Title XVIII of the Social Security Act, Pub.L.
89-97 (42 U.S.C.s.1395 et seq.).
Health Insurers Required
to Cover the Cost of Prescription Female Contraceptives
Chapter 251, P.L. 2005,
effective July 3, 2006, requires insurers that provide benefits
for expenses incurred in the purchase of outpatient prescription
drugs, to cover the cost of prescription female contraceptives.
The provisions apply to hospital, medical and health service corporations,
commercial individual, small employer and group health insurers,
health maintenance organizations and prepaid prescription service
organizations and the State Health Benefits Program.
It defines "prescription female
contraceptives" to mean any drug or device used for contraception
by a female, which is approved by the federal Food and Drug Administration
for that purpose, that can only be purchased in this State with
a prescription written by a health care professional licensed
or authorized to write prescriptions, and includes, but is not
limited to, birth control pills and diaphragms.
This law applies to policies and
contracts issued or renewed on or after its effective date.
Health Insurers Required to Pay
for Mammograms for Women under 40 with Certain Risk Factors
Chapter 86, P.L. 2004, effective
October 5, 2004, requires health insurers to provide health benefits
coverage for expenses incurred in conducting a mammogram for women
under 40 years of age who have a family history of breast cancer
or other breast cancer risk factors, at such age and intervals
as deemed medically necessary by the woman's health care provider.
Under this law, health insurers include health, hospital, and
medical service corporations; commercial individual, small employer
and group health insurers; health maintenance organizations; and
the State Health Benefits Program (SHBP).
Health Benefits Coverage and Members
of the Legislature with Health Benefits Eligibility through Another
Public Entity
Chapter 308, P.L. 2003 provides that
if a member of the Legislature elects health benefits coverage
on the basis of service in the Legislature, the member will not
enroll as the primary insured for health benefits for which the
member is eligible through any other public entity, and will not
accept any amount of money in consideration for filing a waiver
of coverage.
Part-time State Employees or Part-time
Faculty Members at a NJ Public Institution of Higher Education
and SHBP Participation
Chapter 172, P.L. 2003 provides that
a part-time State employee, or a part-time faculty member at a
public institution of higher education in this State (including
part-time lecturers and adjunct faculty members), who is enrolled
in a State-administered retirement system, is entitled to participate
in the State Health Benefits Program (SHBP) and may purchase health
benefits coverage in the State managed care plan under the SHBP
for the employee or faculty member, and the dependents of the
employee or faculty member.
Health Benefits Coverage through
the SHBP for New Jersey National Guard Members Called to Active
Duty
Members of the New Jersey National
Guard and their dependents will be provided health benefits coverage
through the SHBP during any period when the member is called to
State active duty for at least 30 days within a 35 consecutive
day period by the Governor. The benefits will be provided through
the SHBP's NJ PLUS plan, with coverage beginning on the first
day of active duty and ending on the last day of active duty.
The cost of the coverage will be paid in full by the State of
NJ (Chapter 142, P.L. 2003).
Waiving Health Care Coverage
Chapter 3, P.L. 2003 amends the statutes
that allows a municipality or contracting unit that participates
in the State Health Benefits Program - or a county, municipality,
or contracting unit, that participates in another group health
benefits plan - to allow an employee who is eligible for other
health care coverage to waive coverage to which the employee is
entitled as an employee of the county, municipality, or contracting
unit.
Health Insurance Portability and
Accountability Act
The Health Insurance Portability
and Accountability Act (HIPAA) is a federal law that aims to protect
millions of working Americans, and their families, in regard to
their medical treatment. One HIPAA requirement is that health
plans maintain the privacy of any personal information relating
to their members' physical or mental health. The SHBP has recently
taken a number of additional steps to comply with this HIPAA requirement,
including (a) providing a Notice
of Privacy Practices to Enrollees in the New Jersey State Health
Benefits Program, describing how medical information about
employees enrolled in the SHBP may be used and disclosed and how
the employees themselves can get access to this information, and
(b) Providing a Participant
Authorization Form, enabling SHBP enrollees to specify
what protected health information the SHBP may use and disclose,
and to whom and for what purpose it may disclosed, as well as
the period of time during which the use/disclosure may occur.
Reimbursement for Health Care
Facility Services
A carrier offering a managed care
plan that provides both in-network and out-of-network benefits
must reimburse a health care facility for its services at the
carrier's full contracted rate, without any penalty for the patient's
selection of an out-of-network health care provider, and in accordance
with the in-network policies and in-network copayment, coinsurance,
or deductible requirements of the managed care plan (Chapter 367,
P.L. 2001).
State-paid Post Retirement Medical
Benefits for SPRS Members
State-paid post retirement medical
benefits are extended to all State Police Officers in the SPRS
with more than 20 but less than 25 years of service who reach
the mandatory retirement age of 55, under Chapter 316, P.L.
2001.
Advance Notice Required When HMO
or NJ Plus Plan Member's Primary Care Physician Terminated from
the Provider Network
Under Chapter 284, P.L. 2001, the
State Health Benefits Program is required to make sure that any
person covered under the program who is enrolled in a health maintenance
organization or the NJ PLUS plan, will receive advance notice
of 90 days if that person's primary care physician will be terminated
from the provider network. If advance notice of 90 days cannot
be provided because the termination will occur before 90 days
pass, the health maintenance organization or NJ PLUS must notify
the member as soon as it has knowledge of the termination.
After being notified, the covered person may change coverage to
another health benefit plan, even if the physician's termination
occurs outside of the annual open enrollment period.
ID Cards for Prescription Drug
Coverage
Providers of most health benefit
plans that include prescription drug coverage are now required
to issue their insured members an ID card with standardized pharmacy
information, under Chapter 200, P.L. 2001.
Waiver of Health Benefits Coverage
Law Extended
Chapter 189, PL 2001, extends the
scope of the employers eligible to offer a health benefit waiver
to employees in exchange for an incentive. The employers now eligible
to offer this benefit option include municipalities and municipal
authorities that participate in the SHBP. For more details, please
click here.
Nonconcurrent Pension Credit in
Multiple Pension Funds for Paid SHBP Coverage
Chapter 209 amends the statutes governing
an employee's eligibility for paid coverage under the State Health
Benefits Program (SHBP). It provides that an aggregation of nonconcurrent
pension credit in multiple pension funds can allow a member
to qualify for the 25 or years of service credit needed for State
or employer paid retired SHBP benefits.
Health
Insurers' Coverage of Pap
Smears
Chapter 227 clarifies health insurers'
coverage of Pap smears as a benefit.
Service
Credit and Purchases of Service Credit
Paid and Unpaid Leaves
of Absence for Service with Public Employee Unions Permitted;
Full Cost Purchases of PERS Service Credit for Such Service Also
Allowed
Chapter 368, P.L. 2005
permits a State, county, or municipal employer to grant a paid
or unpaid leave of absence to public employees (except for police
officers and firefighters) who are elected or appointed as officers
or representatives of a local, county, or State labor organization.
The employer granting the leave must be reimbursed in advance
for compensation and benefit costs, including retirement system
contributions and health benefit costs, or according to the terms
of a collective bargaining agreement.
This law also allows
a member of the Public Employees' Retirement System (PERS) to
make a full cost service credit purchase for the period
of the approved leave.
It also permits a public
employee who has taken such an approved unpaid leave of absence,
and has not received PERS credit for that service, to purchase
the credit within one year of the effective date of the law (January
12, 2006).
Service Credit for Non-Prosecutors
Part Service for County Prosecutors
Chapter 140, P.L. 2003, allows an
individual nominated and appointed to the title of "County
Prosecutor" after January 7, 2002 (the effective date of
the law creating the Prosecutors Part of the PERS, Chapter 366,
P.L. 2001), to receive full credit in the Prosecutors Part of
the Public Employees' Retirement System (PERS) for non-Prosecutors
Part PERS service earned prior to the date of appointment to "County
Prosecutor." Click
here to learn more.
Transfer of Service Credit between
the PERS and the TPAF for up to Three Years of Dual Membership
Chapter 341, P.L. 2001 provides that
a member of the PERS or a member of the TPAF may transfer service
credit between the two retirement systems, even if there was up
to three years of dual membership. Prior to this, under Chapter
6, P.L. 2001, transferring service credit could occur only if
there was two years of dual membership or less.
Firefighters in PFRS and Purchase
of Layoff Time
Chapter 228, P.L. 2001 allows a PFRS
member who is laid off from employment as a firefighter in a PFRS
eligible position, and then rehired as a firefighter in a PFRS
eligible position, to purchase up to three years of service credit
for the layoff time. This would be a full cost purchase based
on the member's salary for the 12 months of creditable service
occurring right before the layoff.
Life
Insurance, Death Benefits
Continuation of Accidental Death
Benefit for Surviving Spouse of PFRS or SPRS Member Who Remarries
Chapter 181, P.L. 2003 allows the
surviving spouse of a PFRS or SPRS member who dies in active service
as a result of an accident met in the actual performance of duty,
to continue to receive an accidental death benefit under the Police
and Firemen's Retirement System (PFRS) or the State Police Retirement
System (SPRS) even after remarrying, for remarriages occurring
on or after September 12, 2003.
Elimination of Reduction in Active
GLI Benefit for Active ABP Members over Age 70
Chapter 75, P.L. 2003 eliminates
the provision for the reduction in the ABP life insurance benefit
payable if the member reaches the age of 70 and is still in active
service. Previously, when an ABP member in active service reached
age 70, his or her life insurance benefit was reduced to 1/2 of
his or her annual base salary. Effective May 8, 2003, an ABP member's
group life insurance remains at 3 1/2 times the member's annual
base salary for as long as the member remains in active service.
Compensation Base of the SPRS
Accidental Death Benefit for Surviving Spouses Increased
The compensation base of the SPRS
accidental death benefit for surviving spouses and children has
been increased, under Chapter 350, P.L. 2001.
Amount of Coverage Allowed, Time
Allotted for JRS Members Selecting Optional Contributory Death
Benefit Coverage
Chapter 74, P.L. 2001 changes the
amount of time allotted to JRS members for selecting optional
contributory death benefit coverage. It also amends the amount
of coverage allowed.
PFRS Death Benefits Extended
Chapter 86, P.L. 2001 extends the
death benefits of a member of the PFRS who died in active duty
on or after January 1, 1998 and before January 18, 2000 to a widow
or widower, a child, or a dependent parent. It also required an
eligible beneficiary to apply for the increased benefits within
90 days of the bill's enactment.
Enrollments
PFRS Enrollment Required
for Permanent, Full-time County Fire Marshals and Assistant Marshals
Authorized to Coordinate, Control, or Extinguish Fires
Chapter 366, P.L. 2005
requires the PFRS enrollment of permanent, full-time county fire
marshals and assistant marshals who are authorized to coordinate,
control, or extinguish fires, as long as they meet all of the
other PFRS eligibility requirements; however, those serving is
such positions when this law takes effect (January 12, 2006) who
do not meet the PFRS eligibility requirement for age will be exempt
from that requirement.
Volunteer Firefighters
Appointed to Paid Positions and Currently in the PERS Eligible
for Transfer to the PFRS
Under Chapter 326, P.L.
2005, a currently employed firefighter who had been a volunteer
appointed to a paid-position by a municipality, and meets the
three conditions below, may transfer from the PERS (Public Employees'
Retirement System) to the PFRS (Police and Firemen's Retirement
System):
- was not eligible for PFRS membership
at the time of said appointment, and;
- who meets the PFRS definition
of "fireman", and;
- is currently enrolled in the PERS
(Public Employees' Retirement System).
PERS Enrollment for Eligible Employees
of Bi-state or Multi-state Agencies
Chapter 263, P.L. 2003 provides for
enrollment in the Public Employees' Retirement System of New Jersey
(PERS) of eligible employees of any bi-state or multi-state agency
in which New Jersey is a participant.
Service Credit in the Prosecutors
Part of the PERS for Non-Prosecutor Part PERS Service, County
Prosecutors
Chapter 140, P.L. 2003 allows an
individual nominated and appointed pursuant to Article VII, Section
II, paragraph 1 of the New Jersey Constitution to the position
of a county prosecutor after January 7, 2002 to receive full credit
in the Prosecutors Part of the Public Employees' Retirement (PERS)
for non-Prosecutor Part PERS service rendered prior to the date
of appointment.
Repeal
of Exemption from Reenrollment for TPAF Retirees in Interim Appointments
Prior to November 3, 2003, local
school boards were permitted to appoint a retired Teachers' Pension
and Annuity Fund (TPAF) member to any TPAF-covered position on
an interim basis—for up to six months—without affecting
the individual's retirement allowance, under the rule N.J.A.C.
17:3-2.6. On October 2, 2003, the Teachers' Pension and Annuity
Fund Board of Trustees repealed this rule. Effective November
3, 2003, any retired member of the TPAF—except for those
who fall under the reenrollment exception for certificated administrators
and superintendents—who is employed or accepts employment
in a TPAF-covered position, must reenroll in the TPAF.
Return
to Full TPAF Member
Contribution Rate
Effective January 1, 2004, the TPAF
member contribution rate will return to the normal rate of 5%.
Employers should be sure to deduct 5% on the first payday on or
after the effective date of the respective changes.
Return
to Full PERS Member Contribution Rate
Effective July 1, 2004, the PERS
member contribution rate for State employees will return
to the normal rate of 5%. Employers should be sure to deduct 5%
on the first payday on or after the effective date of the respective
changes.
Other PERS member contribution rates
remain unchanged, as listed below:
| PERS Group |
Member Contribution
Rate |
| PERS Local |
3.0%
|
| PERS Prosecutors
Part |
7.5%
|
| PERS Workers Compensation
Judges Part |
5.0%
|
| PERS Legislators |
5.0%
|
| |
|
Pension
Contributions to the PERS and the PFRS by Local Employers
Chapter 108, P.L. 2003: a. reduces
for four years the pension contributions that local employers
must make to the PERS and the PFRS; b. Exempts for a limited period,
local employer contributions to PERS and PFRS from the local budget
cap law, and; c. Provides for a prospective increase to the PFRS
special retirement benefit upon the pension system attaining a
funded level in excess of 104 percent.
PERS and TPAF "Critical Need"
Positions and PERS and TPAF Retireees
PERS and TPAF retirees may take positions
deemed to be "of critical need", at either the Department
of Education or a local board of education, without renrolling,
regardless of salary earned (Chapter 355, P.L. 2001). An additional
condition of the law for TPAF retirees is that they be certificated
superintendents or certificated administrators who are accepting
"critical need" positions that require such certification.
Critical need positions accepted at a local board of education
must be for a contractual period of a year or less, with a one
year extension possible, for both PERS and TPAF retirees. The
Commissioner of Education determines whether a position is of
critical need at the Department of Education. At a local board
of education, the superintendent makes this determination.
Other
Revision to Maximum Annual SACT
Contribution Amount Allowed
Chapter 256, P.L. 2005, effective
January 4, 2006, changes the maximum contribution allowed by active
members of the State-administered retirement systems participating
in the voluntary investment Supplemental Annuity Collective Trust
(SACT) Regular Plan, and active members of the State-administered
retirement systems who are employed by a public educational institution
and who participate in the SACT Tax-Sheltered Plan. Prior to the
enactment of this law, participants in either plan were permitted
to contribute only 10 percent of their annual salary into the
SACT each year.
This law amends the SACT law to allow
participants in either SACT plan to contribute the maximum amount
permitted under the Internal Revenue Code. For the year 2006,
an individual's maximum contribution to a 403(b) plan, such as
the Tax-Sheltered SACT, is $15,000.
Affidavit of Domestic Partnership
Chapter 246, P.L. 2003 provides that
two persons who desire to become domestic partners may execute
and file an Affidavit of Domestic Partnership with the local registrar
upon payment of a fee, in an amount to be determined by the Commissioner
of Health and Senior Services.
Prohibition of Investment of New
Jersey Public Employee Retirement Funds in Foreign Companies Having
Equity Ties to Sudan
This law prohibits the investment
of New Jersey public employee retirement funds in any foreign
company with an equity tie to the government of Sudan or its instrumentalities
because of that country's failure to prevent genocide and its
human rights abuses that include severe restrictions on the freedoms
of assembly, association, movement, and speech. The law doesn't
apply to the activities of any foreign company providing humanitarian
aid to the Sudanese people through either a governmental or non-governmental
organization.
Issuance of Refunding Bonds by
Local Government Units for Accrued Liability
Local government units, such as municipalities,
counties, authorities, school boards, etc., may issue refunding
bonds to take care of unfunded accrued liability they owe to the
State's various pension systems and created through early retirement
benefits granted to employees by the local unit, under Chapter
42, P.L. 2002.
Changes to the PFRS Mortgage Loan
Program
Chapter 293, P.L. 2001 makes changes
to the PFRS Mortgage Loan Program, a program that offers mortgage
loans from the retirement system to members of the PFRS (on their
principal residences, either new mortgages or the refinancing
of existing mortgages). In particular, it sets the mortgage loan
interest rate at one percent above the weekly average yield of
ten-year United States Treasury securities.
Enrollment in the PFRS of
Firefighters over Age 35
Chapter 279, P.L.
2001 permits a person over 35 years of age to be appointed to
a uniformed firefighting position and enrolled in the Police and
Firemen's Retirement System, regardless of age, if that person
was placed on a civil service eligible list for appointment as
a member or officer of a paid fire department or force prior to
February 25, 1997, and was appointed prior to June 30, 1998. February
25, 1997 was the date on which age restrictions for hiring firefighters
and for enrolling them in the PFRS were once again in effect,
following the repeal of a section of the federal Age Discrimination
in Employment Act dealing with firefighters and law enforcement
officers.
PFRS Membership for "Public
Safety Administrators" and "Supervisors"
Chapter 166 broadens the scope of
PFRS membership for some persons employed as "Public Safety
Administrators" and "Supervisors."
Consolidation of Bureau of Parole
and State Parole Board
Chapter 79, P.L. 2001 consolidated
the Bureau of Parole in the Department of Corrections with the
State Parole Board, making one direct authority.
Prior
Legislation
There were several significant pieces
of legislation enacted in 1998 - 99 that are noteworthy: Chapter
132 P.L. 1999 permits PERS, TPAF, PFRS, SPRS, and JRS members
to carry loans into retirement; Chapter 48 P.L. 1999, changes
the State Health Benefits Program (SHBP) rules regarding the eligibility
requirements and payment of SHBP premiums for local retirees;
and Chapter 428 P.L. 1999 makes major improvements to the retirement
and death benefits for PFRS members.
Information
about Legislation Enacted between 2000 and 2001
Rule
Changes
Some rule changes that have been
adopted include acceptable designations of beneficiaries.
(See Rules
Changes) Now, when a member applies for a retirement
allowance, the beneficiary designation made on the retirement
application becomes effective and supersedes all prior designations
as of the date the application is received at the Division of
Pensions and Benefits. This designation will be effective
even if the retirement date is still in the future, and will continue
in force even if the retirement is canceled.
Administrative
Code Changes
Changes to the administrative code,
and new or proposed administrative procedures can be found by
accessing the "Certifying Officer
Letters" and
"Rule Changes".
For example, administrative procedure
in Chapter 330, PL 1997 expanded eligibility for payment of
Health Benefits for local PFRS members who retire after 25 years
of service or on a disability retirement.
Another amendment to the administrative
code requires employers to report the actual base salary paid
to part-time employees
enrolled in PERS.
There are new IRS rules concerning
loans that limit the
amount that may be borrowed and the duration of repayment.
Any changes or updates made to publications
and forms are always posted immediately to the Internet. The most
recent versions can be downloaded from the Division's Internet
homepage by accessing "Current
Publications" .
Publications sent to the employer, such as the Updates newsletter,
also contain information on legislation, Division policy and procedure
changes, and benefit programs.