Bill
Bill > S2407
NJ S2407
NJ S2407Makes local government business administrators eligible for memberships in PERS; provides for transfer of business administrators from participation in Defined Contribution Retirement Program to membership in PERS.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill will make business administrators serving in local governments eligible for membership in the Public Employees' Retirement System (PERS). Since July 1, 2007, business administrators have been required to participate in the Defined Contribution Retirement Program (DCRP). The bill also provides for the transfer to the PERS of a business administrator who is participating in the DCRP as of the bill's effective date. A business administrator who transfers to the DCRP may elect to receive credit in the PERS for service as a business administrator during participation in the DCRP. To receive full PERS credit for that service, the business administrator and the administrator's employer will have to pay the contributions and costs required by the PERS for the benefits provided by the retirement system. If the employer does not make the payment, the employee will have to make the employer's payment. The bill also defines the term "business administrator" to include municipal or county administrators, municipal or county managers, city managers, town managers, village managers, borough managers, township managers, or any functional equivalent.
AI Summary
This bill makes individuals serving as "business administrators" in local governments eligible for membership in the Public Employees' Retirement System (PERS), a pension plan for government employees. Previously, since July 1, 2007, these business administrators, a role defined to include various managerial titles like municipal administrator, city manager, or their functional equivalents, were required to participate in the Defined Contribution Retirement Program (DCRP), a different type of retirement savings plan. The bill allows business administrators currently participating in the DCRP to transfer to PERS. If they choose to transfer, they can elect to receive credit in PERS for their service as a business administrator while they were in the DCRP, but to get full credit, both the employee and their employer must pay the required contributions and costs to PERS. If the employer doesn't pay their share, the employee will be responsible for it.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S2407 |
| BillText | https://pub.njleg.gov/Bills/2026/S2500/2407_I1.HTM |
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