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Bill > A847


NJ A847

NJ A847
Provides that public employee pension benefits are calculated on base salary exclusive of various forms of extra compensation.


summary

Introduced
01/09/2018
In Committee
01/09/2018
Crossed Over
Passed
Dead
01/08/2020

Introduced Session

2018-2019 Regular Session

Bill Summary

This bill provides that the compensation of a public employee subject to pension and group life insurance contributions and creditable for retirement and death benefits in a State-administered retirement system or fund will be limited to base salary and will not include extra compensation. The bill's definition of forms of extra compensation includes, but is not limited to, overtime pay; pay for extra work, duty or service beyond the normal workday or work year; bonuses; lump-sum payments for longevity, holiday pay, vacation, compensatory time or accumulated sick leave; or increments or adjustments in recognition of the member's forthcoming retirement. The bill further provides that the Division of Pensions and Benefits will investigate increases in compensation reported for credit which exceed the reasonably anticipated annual compensation increases for members of a retirement system.

AI Summary

This bill provides that the compensation of a public employee subject to pension and group life insurance contributions and creditable for retirement and death benefits in a State-administered retirement system or fund will be limited to base salary and will not include extra compensation. The bill defines "base salary" as the annual compensation paid in regular, periodic installments, and "extra compensation" as individual salary adjustments granted primarily in anticipation of retirement or as additional remuneration for temporary duties beyond the regular workday or work year, such as overtime, bonuses, and lump-sum payments. The bill also requires the Division of Pensions and Benefits to investigate increases in compensation reported for credit that exceed the reasonably anticipated annual increases for members of a retirement system.

Committee Categories

Government Affairs

Sponsors (1)

Last Action

Introduced, Referred to Assembly State and Local Government Committee (on 01/09/2018)

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