Bill > S3997

Introduced Session

This bill removes the membership tiers established in the Public Employees' Retirement System (PERS) and transfers all current non-retired members of PERS to the membership tier referred to as "Tier 1" by the Division of Pensions and Benefits. All transferred members will be considered eligible for any benefits associated with Tier 1. Under the bill, employees of public employers who earn more than the minimum salary requirement, but do not currently meet the minimum hour eligibility requirements, will be considered eligible to be enrolled as members of PERS. The employer is to process the compulsory enrollment of each affected employee within two months following the enactment of the bill. Any affected employees who are currently enrolled as participants of the Defined Contribution Retirement Program (DCRP) will be eligible for an automatic transfer of all years of service credit to PERS, if the employee elects to transfer their membership from DCRP to PERS. Any years of service credit transferred to PERS from DCRP will be used to qualify members for retirement and health benefits associated with PERS, but will not be used to calculate the amount of pension benefit. A participant's prior contributions into the DCRP will not be transferred into PERS and will remain in the fund. The employee will receive a notice of the transfer of service credit to PERS within two months following the enactment of the bill. Upon receiving the notice, the affected employee has six months to notify their employer if they do not wish to become enrolled as a member and transfer their service credit to PERS. Employees in the DCRP who opt out of the transfer will remain in the DCRP. Additionally, any members of PERS who are receiving long term disability insurance will be eligible to apply for disability retirement as long as they apply within two calendar years following the enactment of the bill. Any changes to the early retirement, deferred retirement, service retirement, and maximum base salary resulting from the transfer of members to Tier 1 of PERS will only affect members who begin processing a retirement application after the bill is enacted.

AI Summary

Committee Categories

Linda Greenstein (D)*,  Shirley Turner (D)*,  Renee Burgess (D),  Joe Cryan (D),  Patrick Diegnan (D),  Vin Gopal (D),  Joe Lagana (D),  John McKeon (D),  Angela Mcknight (D),  Benjie Wimberly (D), 

Senate Budget and Appropriations Hearing (12:00:00 1/8/2026 Committee Room 4, 1st Floor, State House Annex, Trenton, NJ) (on 01/08/2026)

Official Document