Bill > A4826

Introduced Session

This bill makes business administrators serving in local governments eligible for membership in the Public Employees' Retirement System (PERS). Business administrators currently participate in the Defined Contribution Retirement Program (DCRP). The bill defines "business administrator" as the executive and administrative officer of any political subdivision of the State or any agency, board, commission, authority, or instrumentality of the State or of a subdivision serving in a position with the title of business administrator, municipal or county administrator, municipal or county manager, city manager, town manager, village manager, borough manager, township manager, or any functional equivalent, as the case may be. The bill provides for the transfer to the PERS of a business administrator who is participating in the DCRP within 90 days following the effective date of the bill if the employee meets the eligibility requirements for membership in the PERS at the time of enrollment. The bill requires the PERS notify eligible business administrators of the required enrollment within 15 days after the effective date. The bill specifies that service credit transferred from a participant in the DCRP would be recognized as service credit in the PERS to determine eligibility for employer-paid health care benefits in retirement pursuant to current law. The bill also specifies that the membership tier will be determined by the member's participation date in the DCRP or their original enrollment date in the PERS, if applicable, whichever is earlier. Additionally, the actuary for the PERS is required to determine the unfunded accrued liability resulting from the transfer of the business administrators. This unfunded accrued liability will be amortized over a period of 20 years. The value of the account in the DCRP of the business administrator will be transferred to the PERS in accordance with relevant provisions of the federal Internal Revenue Code and Internal Revenue Service guidance. The bill will take effect immediately.

Committee Categories

Robert Karabinchak (D)*,  Alexander Schnall (D)*, 

Introduced, Referred to Assembly State and Local Government Committee (on 09/23/2024)

Official Document