A4916

An Act concerning payments to certain public employees for accumulated sick leave upon retirement and compliance with sick leave regulations, and amending and supplementing various parts of the statutory law.

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

1. N.J.S.11A:6-16 is amended to read as follows:

11A:6-16. Supplemental compensation upon retirement in State employment. State employees in the career service, and those in the senior executive and unclassified services who have been granted sick leave under terms and conditions similar to career service employees, shall be entitled upon retirement from a State-administered retirement system to receive a lump sum payment as supplemental compensation for each full day of accumulated sick leave which is credited on the effective date of retirement.

After January 1 next following the effective date of P.L. , c. (pending before the Legislature as this bill), or after the expiration of a collective negotiations agreement or individual contract of employment in effect on the effective date of P.L. , c. (pending before the Legislature as this bill) providing for such supplemental compensation upon retirement, as appropriate, such payments shall not exceed the equivalent of four weeks of the employee's final compensation for an employee with 10 or more years of service credit in the retirement system. In no event shall a payment of supplemental compensation for credited accumulated sick leave to an employee exceed $10,000. As used in this section, "final compensation" means the compensation received during the last year of employment immediately preceding retirement upon which contributions to the retirement system were made. The provisions of this paragraph shall not apply to any State employee who is a member of the State Police Retirement System or the Police and Firemen's Retirement System of New Jersey.

(cf: N.J.S.11A:6-16)

2. N.J.S.11A:6-17 is amended to read as follows:

11A:6-17. Supplemental compensation; employees of Rutgers, The State University, New Jersey Institute of Technology, and Rowan University. The supplemental compensation provided under this chapter shall also be paid to each employee of Rutgers, The State University, New Jersey Institute of Technology, and Rowan University who performs services similar to those performed by employees of the New Jersey State colleges who are in the career service or who have been granted sick leave under terms and conditions similar to career service employees, including those employees of Rutgers, The State University who are members of the Newark Employees' Retirement System. After January 1 next following the effective date of P.L. , c. (pending before the Legislature as this bill), or after the expiration of a collective negotiations agreement or individual contract of employment in effect on the effective date of P.L. , c. (pending before the Legislature as this bill) providing for such supplemental compensation upon retirement, as appropriate, supplemental compensation payments shall not exceed the equivalent of four weeks of the employee's final compensation for an employee with 10 years or more of service credit in the retirement system. In no event shall a payment of supplemental compensation for credited accumulated sick leave to an employee exceed $10,000. As used in this section, "final compensation" means the compensation received during the last year of employment immediately preceding retirement upon which contributions to the retirement system were made.

(cf: P.L.2012, c.45, s.65)

3. (New section) Notwithstanding any law, rule or regulation to the contrary, a payment to an employee of a political subdivision of the State, or any agency, authority or instrumentality thereof, that has adopted the provisions of Title 11A, Civil Service, of the New Jersey Statutes, as supplemental compensation upon retirement from a State or locally-administered retirement system for accumulated sick leave which is credited on the effective date of retirement, after January 1 next following the effective date of P.L. , c. (pending before the Legislature as this bill) or after the expiration of a collective negotiations agreement, or individual contract of employment, in effect on the effective date of P.L. , c. (pending before the Legislature as this bill) providing for such supplemental compensation upon retirement, shall not exceed the equivalent of four weeks of the employee's final compensation for an employee with 10 years or more of service credit in the retirement system. In no event shall a payment of supplemental compensation for credited accumulated sick leave to an employee exceed $10,000. As used in this section, "final compensation" means the compensation received during the last year of employment immediately preceding retirement upon which contributions to the retirement system were made. The provisions of this paragraph shall not apply to any employee who is a member of the Police and Firemen's Retirement System of New Jersey.

4. (New section) Notwithstanding any law, rule or regulation to the contrary, a payment to an employee of a political subdivision of the State, or any agency, authority or instrumentality thereof, that has not adopted the provisions of Title 11A, Civil Service, of the New Jersey Statutes, as supplemental compensation upon retirement from a State or locally-administered retirement system for accumulated sick leave which is credited on the effective date of retirement, after January 1 next following the effective date of P.L. , c. (pending before the Legislature as this bill) or after the expiration of a collective negotiations agreement, or individual contract of employment, in effect on the effective date of P.L. , c. (pending before the Legislature as this bill) providing for such supplemental compensation upon retirement, shall not exceed the equivalent of four weeks of the employee's final compensation for an employee with 10 years or more of service credit in the retirement system. In no event shall a payment of supplemental compensation for credited accumulated sick leave to an employee exceed $10,000. As used in this section, "final compensation" means the compensation received during the last year of employment immediately preceding retirement upon which contributions to the retirement system were made. The provisions of this paragraph shall not apply to any employee who is a member of the Police and Firemen's Retirement System of New Jersey,

5. (New section) Notwithstanding any law, rule or regulation to the contrary, a payment to an employee of a school board, or any agency or instrumentality thereof, as supplemental compensation upon retirement from a State administered retirement system for accumulated sick leave which is credited on the effective date of retirement, after January 1 next following the effective date of P.L. , c. (pending before the Legislature as this bill) or after the expiration of a collective negotiations agreement, or individual contract of employment, in effect on the effective date of P.L. , c. (pending before the Legislature as this bill) providing for such supplemental compensation upon retirement, shall not exceed the equivalent of four weeks of the employee's final compensation for an employee with 10 years or more of service credit in the retirement system. In no event shall a payment of supplemental compensation for credited accumulated sick leave to an employee exceed $10,000. As used in this section, "final compensation" means the compensation received during the last year of employment immediately preceding retirement upon which contributions to the retirement system were made.

6. N.J.S.11A:6-5 is amended to read as follows:

11A:6-5. Sick leave. a. Full-time State and political subdivision employees shall receive a sick leave credit of no less than one working day for each completed month of service during the remainder of the first calendar year of service and 15 working days in every year thereafter. Unused sick leave shall accumulate without limit.

b. Notwithstanding any law, rule or regulation to the contrary, the board shall adopt procedures that shall require the (1) imposition of a fine and issuance of a reprimand against any employee of the State or a political subdivision found for the first time to have violated sick leave policies and regulations, with the fine to be an amount equivalent to one week of compensation, and (2) termination of any employee found for the second time to have violated sick leave policies and regulations.

(cf: N.J.S.11A:6-5)

7. N.J.S.18A:30-2 is amended to read as follows:

18A:30-2. Sick leave allowable. a. All persons holding any office, position, or employment in all local school districts, regional school districts or county vocational schools of the state who are steadily employed by the board of education or who are protected by tenure in their office, position, or employment under the provisions of this or any other law, except persons in the classified service of the civil service under Title [11] 11A, Civil Service, of the [Revised] New Jersey Statutes, shall be allowed sick leave with full pay for a minimum of 10 school days in any school year.

b. Notwithstanding any law, rule or regulation to the contrary, the commissioner shall adopt procedures which shall require the (1) imposition of a fine and issuance of a reprimand against any person described in subsection a. of this section found for the first time to have violated sick leave policies and regulations, with the fine to be an amount equivalent to one week of compensation, and (2) termination of any person found for the second time to have violated sick leave policies and regulations.

(cf: N.J.S.18A:30-2)

8. (New section) Notwithstanding any law, rule or regulation to the contrary, a political subdivision of the State, or any agency, authority or instrumentality thereof, that has not adopted the provisions of Title 11A, Civil Service, of the New Jersey Statutes, shall adopt procedures which shall require the (1) imposition of a fine and issuance of a reprimand against any employee of the political subdivision, or any agency, authority, or instrumentality thereof, found for the first time to have violated sick leave policies and regulations, with the fine to be an amount equivalent to one week of compensation, and (2) termination of any person found for the second time to have violated sick leave policies and regulations.

9. This act shall take effect immediately.

STATEMENT

This bill provides that after January 1 next following the effective date of the bill, or after the expiration of a collective negotiation agreement or an individual employment contract in effect on the bill's effective date, no State, local government, or school district employee, excluding employees who are enrolled in the State Police Retirement System or the Police and Firemen's Retirement System, shall be entitled to receive a payment as supplemental compensation upon retirement for credited accumulated sick leave the equivalent of four weeks of the employee's final compensation, provided that the employee has at least 10 years of service credit in the retirement system. In no event will a payment of supplemental compensation for credited accumulated sick leave to an employee exceed $10,000.

Current law limits to $15,000 the maximum amount that may be paid to a State employee for accumulated sick leave when the employee retires; however, there are no comparable legal limits with regard to local government and school board employees. Recent reports have highlighted the significant costs that are imposed upon New Jersey property taxpayers by this practice, especially as a result of the lack of controls and regulations for local government and school board agreements. It has been estimated that this benefit for payments for accumulated sick leave and vacation time to local and school board employees may eventually cost New Jersey property taxpayers at least $1 billion. This bill will restrict this type of payment to public employees in the future.

In addition, this bill requires certain entities to adopt procedures that require the (1) imposition of a fine and issuance of a reprimand against any employee of the State, a local government or school district found for the first time to have violated sick leave policies and regulations, with the fine to be an amount equivalent to one week's compensation, and (2) termination of any person found for the second time to have violated sick leave policies and regulations.

This bill is part of a series of initiatives designed to address the issue of high property taxes in New Jersey.