Bill > S4111

Introduced Session

This bill establishes an alternate calculation of retirement benefits for members in the Teachers' Pension and Annuity Fund (TPAF) and the Public Employees' Retirement System (PERS). The bill requires the Division of Pensions and Benefits to send a first notice to the member or the member's designated beneficiary stating the details of the final compensation that will be utilized in calculating the member's retirement benefits upon receiving a properly completed retirement application from the member of TPAF or PERS. Under current law, final compensation is calculated using the member's ultimate three years of creditable service in New Jersey immediately preceding the member's retirement or death, or the average annual compensation for New Jersey service for which contributions are made during any three fiscal years of the member's membership providing the largest possible benefit to the member or the member's beneficiary. Under the bill, upon receiving the notice from the Division of Pensions and Benefits, the member or the member's designated beneficiary is eligible to request a recalculation of the member's final compensation utilizing the member's average annual compensation for New Jersey service for which contributions are made during any three calendar years of the member's membership providing the largest possible benefit to the member or the member's beneficiary as an alternative to the stated final compensation provided by the Division of Pensions and Benefits. The member or the member's beneficiary has 60 days from receipt of the notice to submit a request for the recalculation. The Division of Pensions and Benefits, in consultation with the board of trustees of the respective retirement system, has 30 days upon receiving the recalculation request to send a second notice to the member or the member's designated beneficiary stating the recalculated final compensation. The member or the member's designated beneficiary has 30 days upon receiving the second notice from the Division of Pensions and Benefits to approve the recalculated final compensation to be utilized in calculating the member's retirement benefits. If the member fails to approve the recalculated final compensation within the 30 days, the Division of Pensions and Benefits will utilize the final compensation stated in the first notice to calculate the member's retirement benefits. Under the bill, members who retired after January 1, 2025 and began receiving retirement benefits as of the effective date of this bill will have one year following the effective date of the bill to initiate the recalculation process. However, any adjustment in retirement benefits granted under the provisions of the bill will only apply to benefit payments made after the effective date.

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Andrew Zwicker (D)*, 

Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 02/03/2025)

Official Document