A189

An Act concerning the exceptions to the retiree reenrollment requirement of the Teachers’ Pension and Annuity Fund and amending N.J.S.18A:66-53.2.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. N.J.S.18A:66-53.2 is amended to read as follows:

18A:66-53.2. [a. Except as provided in subsection b. of this section, if] If a former member of the retirement system who has been granted a retirement allowance for any cause other than disability, becomes employed again in a position which makes him eligible to be a member of the retirement system, his retirement allowance and the right to any death benefit as a result of his former membership, shall be canceled until he again retires.

Such person shall be reenrolled in the retirement system and shall contribute thereto at a rate based on his age at the time of reenrollment. Such person shall be treated as an active member for determining disability or death benefits while in service and no benefits pursuant to an optional selection with respect to his former membership shall be paid if his death shall occur during the period of such reenrollment.

Upon subsequent retirement of such member, his former retirement allowance shall be reinstated together with any optional selection, based on his former membership. In addition, he shall receive an additional retirement allowance based on his subsequent service as a member computed in accordance with applicable provisions of this article; provided, however, that his total retirement allowance upon such subsequent retirement shall not be a greater proportion of his final compensation than the proportion to which he would have been entitled had he remained in service during the period of his prior retirement. Any death benefit to which such member shall be eligible shall be based on his latest retirement, but shall not be less than the death benefit that was applicable to his former retirement.

[b. The cancellation, reenrollment, and additional retirement allowance provisions of subsection a. of this section shall not apply to a former member of the retirement system who is a certificated superintendent or a certificated administrator and who, after having been granted a retirement allowance, becomes employed by the State Department of Education in a position of critical need as determined by the State Commissioner of Education, or becomes employed by a board of education as a certificated superintendent or a certificated administrator on a contractual basis for a term of
not more than one year; except that the cancellation, reenrollment, and additional retirement allowance provisions shall apply if the former member becomes employed within 120 days of retirement with the employer from which the member retired. Nothing herein shall preclude a former member so reemployed with a board of education from renewing a contract for one additional year, provided that the total period of employment with any individual board of education does not exceed a two-year period.]

(cf: P.L.2001, c.355, s.1)

2. This act shall take effect immediately and shall apply to all employment and contracts beginning on or after the effective date.

STATEMENT

This bill repeals two existing exceptions to the reenrollment requirement for certain retirees of the Teachers’ Pension and Annuity Fund (TPAF) who become reemployed in certain positions.

Generally, under current law, if a TPAF retiree, receiving a retirement allowance for any cause other than disability, subsequently becomes employed again in a position which makes the retiree eligible to be a member of TPAF, the retiree is required to reenroll in the retirement system and the payment of the retirement allowance ceases. Exceptions to the TPAF reenrollment requirement exist, however, for a retiree (1) who is a certificated superintendent or administrator and who becomes employed by the State Department of Education in a position of critical need as determined by the State Commissioner of Education, or (2) who becomes employed by a board of education as a certificated superintendent or administrator on a contractual basis for not more than one year. Currently, such a contract may be renewed for one additional year, provided that the total period of employment with any individual board of education does not exceed a two-year period. The bill eliminates these two exceptions.