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  • NJ S3040
  • Transfers management of PFRS to Board of Trustees of PFRS.
Introduced
(2/28/2017)
In Committee
(3/20/2017)
Crossed Over
(3/13/2017)
Passed
(3/23/2017)
SignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill transfers management of the Police and Firemen's Retirement System from the Division of Pensions and Benefits in the Department of the Treasury to the Board of Trustees of the Police and Firemen's Retirement System. Structure of the Board of Trustees The bill changes the membership of the Board of Trustees of the Police and Firemen's Retirement System (PFRS) from 11 to 12 members. The bill requires that the trustees be elected or appointed six months after the date of enactment of the bill. Seven trustees must be present at any meeting of the board for the transaction of its business. The bill requires the board of trustees to have a minimum of one meeting each calendar month. The chair of the board of trustees, or vice chair in the chair's absence, serves as the primary contact with board staff, coordinates and approves meeting agendas, and has the power to authorize any special staff action necessary to execute any of the board's duties. The board may remove a trustee, upon a majority vote of the trustees, for violating the trustee's oath of office or if a trustee is absent without a valid excuse for more than half of the board's meetings in any calendar year. The bill prohibits any vacancy occurring on the board from lasting for more than 60 days. Employee Representatives Under the bill, the board will consist of three active policemen and three active firemen. One policeman and one fireman will be active members of the retirement system and elected by the active members of the system. The remaining active policemen and firemen will be appointed as follows: one policeman appointed by the President of the New Jersey State Policemen's Benevolent Association; one policeman appointed by the President of the New Jersey State Fraternal Order of Police; one fireman appointed by the President of the New Jersey State Firemen's Mutual Benevolent Association; and one fireman appointed by the President of the Professional Firefighters Association of New Jersey. In addition, the board will contain one retiree from the system elected by retirees from the system. Employer Representatives The Governor will appoint four trustees, who either hold, or have held, an elective public office as a mayor, member of a municipal council, or member of a board of chosen freeholders or is employed, or has been employed, by a municipal or county government as an administrator, manager, or chief financial officer to represent the interests of local government employers. Finally, the Governor will appoint one trustee, who holds or has held a management or supervisory position in the Executive Branch of State government at the level of division director or above to represent the interests of State government. Powers and Duties of the Board of Trustees The bill vests with the board of trustees all the functions, powers, and duties for, or relating to, investment or reinvestment of moneys, and the purchase, sale or exchange of any investments or securities, of or for any funds or accounts under the control and management of the board. The Division of Investment in the Department of the Treasury currently performs these functions and duties. Under the bill, the board of trustees may make and execute agreements with private enterprises that are necessary or convenient for the management of the investments of the retirement system. The bill requires the board to hire an executive director, actuary, chief investment officer, and ombudsman. The bill creates an Audit Committee and Actuary Committee to assist in the selection and oversight of the auditors and actuary appointed by the board, and an Investment Committee to assist in the oversight of the investments selected by the board and the management of the investments of the retirement system. Under the bill, the board of trustees has the authority to establish a process for the review, approval, and appeal of applications for retirement. The bill provides the board of trustees with authority to modify the system's member contribution rate; cap on creditable compensation; formula for calculation of final compensation; age at which a member may be eligible for and the benefits for service or special retirement; and standards for approval, medical review policies, and benefits provided for disability retirement. The bill allows the board to reinstate cost of living adjustments for retirees. The bill also allows the board of trustees to apply an adjustment to the monthly retirement allowance or pension originally granted to any member. The bill provides that the board may, in its discretion and at such time and in such manner as the board determines, enhance any benefit set forth in statute for the PFRS as the board determines to be reasonable and appropriate, or modify any benefit. The bill also requires all trustees, officers, and employees of the board to participate in annual ethics training on the New Jersey Conflicts of Interest Law and any other applicable law, rule, or standard of conduct relating to the area of ethics. Employer Contributions to PFRS Moreover, the bill requires employers to pay to the board of trustees their required contribution to the retirement system on a quarterly basis. If employers do not make payment of the required amount of an employer's obligation within 30 days of the due dates, the board of trustees must notify the Director of the Division of Local Government Services in the Department of Community Affairs. Upon certification by the board to the director of an employer contribution payment being 30 days past due, the director will withhold any State aid payments that are disbursed by the Division of Local Government Services from the employer in an amount equal to the amount of the employer contribution due to the board. The director will release the State aid payments held to the employer upon certification by the board of its receipt of the delinquent employer contribution. Non-forfeitable Right Moreover, the bill does not diminish the non-forfeitable right PFRS members have to receive the benefits provided under State law or affirmed by the State's courts. Nothing in the bill relieves the State or local government employers of any past, present, or future obligations or their normal cost or unfunded liabilities required to be paid into the retirement system. Effective Date The bill, if enacted, will take effect on the 366th day next following enactment, except the provisions concerning the election, appointment, and composition of the new Board of Trustees of the Police and Firemen's Retirement System, set forth in section 15 of the bill, will take effect as specified in that section and the new board of trustees will take office on the first business day of the seventh month next following the date of enactment of this bill. The Board of Trustees of the Police and Firemen's Retirement System, the Division of Pensions and Benefits, and the Division of Investment may take such anticipatory administrative action in advance as shall be necessary for the implementation of the act.
2nd Reading in the Assembly, Budget and Appropriations, Passed both Houses, Passed Senate, Received by the Senate, State Government, Wagering, Tourism & Historic Preservation
Conditional Veto, Received in the Senate  (on 5/8/2017)
 
 

Date Chamber Action Description
5/8/2017 S Conditional Veto, Received in the Senate
3/23/2017 A Passed Assembly (Passed Both Houses) (60-4-11)
3/23/2017 A Motion To Table (Voice) (Greenwald)
3/23/2017 A Motion To Recommit to AAP (Auth)
3/23/2017 A Substituted for A99
3/20/2017 A Reported out of Assembly Committee, 2nd Reading
3/20/2017 Assembly Appropriations Hearing (19:00 3/20/2017 *A4177, A4597, S2997 (1R) are all pending referral)
3/16/2017 A Received in the Assembly, Referred to Assembly Appropriations Committee
3/13/2017 S Passed by the Senate (37-0)
3/13/2017 S Emergency Resolution (37-0) (Kean)
3/13/2017 S Senate Amendment (34-0) (Sweeney)
3/13/2017 S Reported from Senate Committee, 2nd Reading
3/9/2017 Senate Budget and Appropriations Hearing (19:00 3/9/2017 S-3075 (Sweeney) Revises process for administration of Transport)
3/6/2017 S Transferred to Senate Budget and Appropriations Committee
2/28/2017 S Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee
Date Motion Yea Nay Other
Detail 3/23/2017 Assembly Floor: Third Reading - Final Passage 60 4 16
Detail 3/23/2017 Assembly Floor: Table Motion (Voice Vote) 0 0 0
Detail 3/23/2017 Assembly Floor: Substitute For A99 (Voice Vote) 0 0 0
Detail 3/20/2017 Assembly Appropriations Committee: Reported Favorably 11 0 0
Detail 3/13/2017 Senate Floor: Enact Emergency Clause 37 0 3
Detail 3/13/2017 Senate Floor: Amend 34 0 6
Detail 3/13/2017 Senate Floor: Third Reading - Final Passage 37 0 3
Detail 3/13/2017 Senate Floor: Second Reading (Voice Vote) 0 0 0
Detail 3/9/2017 Senate Budget and Appropriations Committee: Reported Favorably 10 1 2