A1495

An Act concerning the salaries and pension benefits of certain government officers and employees, and amending, supplementing, and repealing various parts of the statutory law, and amending the title and body of P.L.1948 c.16.

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

1. Section 1 of P.L.1974, c.55 (C.52:14-15.107) is amended to read as follows:

1. Notwithstanding the provisions of the annual appropriations act and section 7 of P.L.1974, c.55 (C.52:14-15.110), the Governor shall fix and establish the annual salary, not to exceed [$133,330 in calendar year 2000, $137,165 in calendar year 2001 and $141,000 in calendar year 2002 and thereafter] $175,000 in calendar year 2014 and thereafter, for each of the following officers, in any amount not less than $141,000 that the Governor determines to be appropriate for each officer:

Title

Agriculture Department

Secretary of Agriculture

Children and Families Department

Commissioner of Children and Families

Community Affairs Department

Commissioner of Community Affairs

Corrections Department

Commissioner of Corrections

Education Department

Commissioner of Education

Environmental Protection Department

Commissioner of Environmental Protection

Health [and Senior Services] Department

Commissioner of Health [and Senior Services]

Human Services Department

Commissioner of Human Services

Banking and Insurance Department

Commissioner of Banking and Insurance

Labor and Workforce Development Department

Commissioner of Labor and Workforce Development

Law and Public Safety Department

Attorney General

Military and Veterans' Affairs Department

Adjutant General

State Department

Secretary of State

Transportation Department

Commissioner of Transportation

Treasury Department

State Treasurer

Members, Board of Public Utilities

(cf: P.L.2010, c.34, s.16)

2. N.J.S.2B:2-4 is amended to read as follows:

2B:2-4. Judicial Salaries. [Annual salaries of justices and judges beginning on January 1, 2008 shall be:

Chief Justice of the Supreme Court $183,182

Associate Justice of the Supreme Court $176,488

Judge of the Superior Court,

Appellate Division $167,023

Judge of the Superior Court,

Assignment Judge $163,404

Judge of the Superior Court;

Judge of the Tax Court $157,000]

Annual salaries of justices and judges beginning on January 1, 2009 and thereafter shall be:

Chief Justice of the Supreme Court $192,795

Associate Justice of the Supreme Court $185,482

Judge of the Superior Court,

Appellate Division $175,534

Judge of the Superior Court,

Assignment Judge $171,731

Judge of the Superior Court;

Judge of the Tax Court $165,000

The annual salaries shall be increased by 1.5 percent on July 1, 2014, by one percent on July 1, 2015, and by 1.5 percent on July 1, 2016.

(cf: P.L.2007, c.350, s.1)

3. Section 1 of P.L.1948, c.16 (C.52:10A-1) is amended to read as follows:

1. a. Members of the Senate and General Assembly shall receive annually, during the term for which they shall have been elected and while they shall hold their office, compensation in the sum of $35,000.00 beginning with the 1990 legislative year and compensation in the sum of $49,000 beginning with the 2002 legislative year and thereafter. The President of the Senate and the Speaker of the General Assembly, each by virtue of his office, shall receive an additional allowance, equal to 1/3 of his compensation as a member. The compensation herein provided shall be paid to each member upon his qualifying into office as such member, and the additional allowance herein provided to the President of the Senate and the Speaker of the General Assembly shall be paid upon his qualifying into office as such officer.

b. Each member of the Senate and General Assembly shall be provided with an allowance of $140,000 during each annual legislative session for member staff services. There shall be appropriated annually to the Legislature, from the general revenues of the State, the amount necessary to provide such an allowance to each member.

(cf: P.L.1999, c.380, s.12)

4. Section 7 of P.L.1954, c.84 (C.43:15A-7) is amended to read as follows:

7. There is hereby established the Public Employees' Retirement System of New Jersey in the Division of Pensions and Benefits of the Department of the Treasury. The membership of the retirement system shall include:

a. The members of the former "State Employees' Retirement System of New Jersey" enrolled as such as of December 30, 1954, who shall not have claimed for refund their accumulated deductions in said system as provided in this section;

b. Any person becoming an employee of the State or other employer after January 2, 1955 and every veteran, other than a retired member who returns to service pursuant to subsection b. of section 27 of P.L.1966, c.217 (C.43:15A-57.2) and other than those whose appointments are seasonal, becoming an employee of the State or other employer after such date, including a temporary employee with at least one year's continuous service. The membership of the retirement system shall not include those persons appointed to serve as described in paragraphs (2) and (3) of subsection a. of section 2 of P.L.2007, c.92 (C.43:15C-2), except a person who was a member of the retirement system prior to the effective date of sections 1 through 19 of P.L.2007, c.92 (C.43:15C-1 through C.43:15C-15, C.43:3C-9, C.43:15A-7, C.43:15A-75 and C.43:15A-135) and continuously thereafter; and

c. Every employee veteran in the employ of the State or other employer on January 2, 1955, who is not a member of any retirement system supported wholly or partly by the State.

d. Membership in the retirement system shall be optional for elected officials other than veterans, and for school crossing guards, who having become eligible for benefits under other pension systems are so employed on a part-time basis. Elected officials commencing service on or after the effective date of sections 1 through 19 of P.L.2007, c.92 (C.43:15C-1 through C.43:15C-15, C.43:3C-9, C.43:15A-7, C.43:15A-75 and C.43:15A-135) shall not be eligible for membership in the retirement system based on service in the elective public office, except that an elected official enrolled in the retirement system as of that effective date who continues to hold that elective public office or another elective public office without a break in service shall be eligible to continue membership in the retirement system under the terms and conditions of enrollment. Service in the Legislature shall be considered a single elective public office. Any part-time school crossing guard who is eligible for benefits under any other pension system and who was hired as a part-time school crossing guard prior to March 4, 1976, may at any time terminate his membership in the retirement system by making an application in writing to the board of trustees of the retirement system. Upon receiving such application, the board of trustees shall terminate his enrollment in the system and direct the employer to cease accepting contributions from the member or deducting from the compensation paid to the member. State employees who become members of any other retirement system supported wholly or partly by the State as a condition of employment shall not be eligible for membership in this retirement system. Notwithstanding any other law to the contrary, all other persons accepting employment in the service of the State shall be required to enroll in the retirement system as a condition of their employment, regardless of age.

(1) Before or on November 1, 2008, no person in employment, office or position, for which the annual salary or remuneration is fixed at less than $1,500.00, shall be eligible to become a member of the retirement system.

(2) After November 1, 2008, a person who was a member of the retirement system on that date and continuously thereafter shall be eligible to be a member of the retirement system in employment, office or position, for which the annual salary or remuneration is fixed at $1,500 or more.

(3) After November 1, 2008 and before or on the effective date of P.L.2010, c.1, a person who was not a member of the retirement system on November 1, 2008, or who was a member of the retirement system on that date but not continuously thereafter, and who is in employment, office or position, for which the annual salary or remuneration is certified by the applicable public entity at $7,500 or more, shall be eligible to become a member of the retirement system. The $7,500 minimum annual salary or remuneration amount shall be adjusted annually by the Director of the Division of Pensions and Benefits, by regulation, in accordance with changes in the Consumer Price Index but by no more than 4 percent. "Consumer Price Index" means the average of the annual increase, expressed as a percentage, in the consumer price index for all urban consumers in the New York City and Philadelphia metropolitan statistical areas during the preceding calendar year as reported by the United States Department of Labor.

(4) After the effective date of P.L.2010, c.1, no person in an employment, office or position of the State, or an agency, board, commission, authority or instrumentality of the State, for which the hours of work are fixed at fewer than 35 per week shall be eligible to become a member of the retirement system; and no person in employment, office or position with a political subdivision of the State, or an agency, board, commission, authority or instrumentality of a political subdivision of the State, for which the hours of work are fixed by an ordinance or resolution of the political subdivision, or agency, board, commission, authority or instrumentality thereof, at fewer than 32 per week shall be eligible to become a member of the retirement system. Any hour or part thereof, during which the person does not work due to the person's participation in a voluntary or mandatory furlough program shall not be deducted in determining if a person's hours of work are fixed at fewer than 35 or 32 per week, as appropriate, for the purpose of eligibility.

e. Membership of any person in the retirement system shall cease if he shall discontinue his service for more than two consecutive years.

f. The accumulated deductions of the members of the former "State Employees' Retirement System" which have been set aside in a trust fund designated as Fund A as provided in section 5 of this act and which have not been claimed for refund prior to February 1, 1955 shall be transferred from said Fund A to the Annuity Savings Fund of the Retirement System, provided for in section 25 of this act. Each member whose accumulated deductions are so transferred shall receive the same prior service credit, pension credit, and membership credit in the retirement system as he previously had in the former "State Employees' Retirement System" and shall have such accumulated deductions credited to his individual account in the Annuity Savings Fund. Any outstanding obligations of such member shall be continued.

g. Any school crossing guard electing to terminate his membership in the retirement system pursuant to subsection d. of this section shall, upon his request, receive a refund of his accumulated deductions as of the date of his appointment to the position of school crossing guard. Such refund of contributions shall serve as a waiver of all benefits payable to the employee, to his dependent or dependents, or to any of his beneficiaries under the retirement system.

h. A temporary employee who is employed under the federal Workforce Investment Act shall not be eligible for membership in the system. Membership for temporary employees employed under the federal Job Training Partnership Act, Pub.L.97-300 (29 U.S.C.s.1501) who are in the system on September 19, 1986 shall be terminated, and affected employees shall receive a refund of their accumulated deductions as of the date of commencement of employment in a federal Job Training Partnership Act program. Such refund of contributions shall serve as a waiver of all benefits payable to the employee, to his dependent or dependents, or to any of his beneficiaries under the retirement system.

i. Membership in the retirement system shall be optional for a special service employee who is employed under the federal Older American Community Service Employment Act, Pub.L.94-135 (42 U.S.C.s.3056). Any special service employee employed under the federal Older American Community Service Employment Act, Pub.L.94-135 (42 U.S.C.s.3056), who is in the retirement system on the effective date of P.L.1996, c.139 may terminate membership in the retirement system by making an application in writing to the board of trustees of the retirement system. Upon receiving the application, the board shall terminate enrollment in the system and the member shall receive a refund of accumulated deductions as of the date of commencement of employment in a federal Older American Community Service Employment Act program. This refund of contributions shall serve as a waiver of all benefits payable to the employee, to any dependent or dependents, or to any beneficiary under the retirement system.

j. An employee of the South Jersey Port Corporation who was employed by the South Jersey Port Corporation as of the effective date of P.L.1997, c.150 (C.34:1B-144 et al.) and who shall be re-employed within 365 days of such effective date by a subsidiary corporation or other corporation, which has been established by the Delaware River Port Authority pursuant to subdivision (m) of Article I of the compact creating the Delaware River Port Authority (R.S.32:3-2), as defined in section 3 of P.L.1997, c.150 (C.34:1B-146), shall be eligible to continue membership while an employee of such subsidiary or other corporation.

(cf: P.L.2010, c.1, s.3)

5. Section 75 of P.L.1954, c.84 (C.43:15A-75) is amended to read as follows:

75. (a) If this act is so adopted it shall become effective in the county or municipality adopting it on June 30 of the following year. Membership in the Public Employees' Retirement System shall be optional with the employees of the county, board of education or municipality in the service on the day the act becomes effective or on June 30, 1966, whichever is earlier, in such county, board of education or municipality except in the case of public employee veterans who on such date are members. An employee who elects to become a member within one year after this act so takes effect shall be entitled to prior service covering service rendered to the county, board of education or municipality prior to July 1, 1966 or prior to the date this act so becomes effective, whichever is earlier. Membership shall be compulsory for all employees entering the service of the county, board of education or municipality on July 1, 1966 or after the date this act becomes effective, whichever is earlier. Where any such employee entering the service of the county, board of education or municipality after the date this act so becomes effective has had prior service for which evidence satisfactory to the retirement system is presented, as an employee in such county, board of education or municipality before the date upon which this act so becomes effective, or July 1, 1966, whichever is earlier, such employee shall be entitled to prior service covering service rendered to the county, board of education or municipality prior to the date this act so becomes effective, or July 1, 1966, whichever is earlier.

(b) Notwithstanding the provisions of section 74 of this act and subsection (a) of this section, every person, other than a non-veteran elected official, becoming an employee of a county, board of education, municipality or school district after June 30, 1966, who is not eligible to become a member of another retirement system, shall be required to become a member of the Public Employees' Retirement System. Notwithstanding the provisions of section 74 of this act and subsection (a) of this section, membership in the retirement system shall be optional with any elected official who is not a veteran, regardless of the date he assumes office, and with any other person in the employ of any county, board of education, municipality or school district on June 30, 1966, provided such elected official or other person is not then a member and is not required to be a member of the retirement system pursuant to another provision of this act, and provided further that such person is not eligible to be a member of another retirement system. Elected officials commencing service on or after the effective date of sections 1 through 19 of P.L.2007, c.92 (C.43:15C-1 through C.43:15C-15, C.43:3C-9, C.43:15A-7, C.43:15A-75 and C.43:15A-135) shall not be eligible for membership in the retirement system based on service in the elective public office, except that an elected official enrolled in the retirement system as of that effective date who continues to hold that elective public office or another elective public office without a break in service shall be eligible to continue membership in the retirement system under the terms and conditions of enrollment.

The provisions of this subsection shall not apply to any person whose position is temporary or seasonal, nor to any person in office, position or employment for which the annual salary or remuneration, or the number of hours of work, is fixed at less than that which is required for membership pursuant to section 7 of P.L.1954, c.84 (C.43:15A-7) as applicable to the member, nor to any person whose position is not covered by the old age and survivors' insurance provisions of the federal Social Security Act. After the effective date of P.L.2010, c.1, the provisions of this subsection shall not apply to any person in office, position or employment for which the hours of work are fewer per week than those required for membership pursuant to subsection d. of section 7 of P.L.1954, c.84 (C.43:15A-7), unless the person shall have been a member since that effective date continuously. No credit shall be allowed to any person becoming a member of the retirement system pursuant to this subsection for service rendered to the employer prior to July 1, 1966, until the provisions of section 74 of this act have been complied with, in which event such credit shall be allowed in accordance with the provisions of subsection (a) of this section; except that the governing body of any county, board of education or municipality may, by resolution, consent to the allowance of such credit and file a certified copy of such resolution with the board of trustees of the Public Employees' Retirement System.

(cf: P.L.2010, c.1, s.6)

6. Section 2 of P.L.2007, c.92 (C.43:15C-2) is amended to read as follows:

2. a. The following persons shall be eligible and shall participate in the Defined Contribution Retirement Program:

(1) A person who commences service on or after the effective date of this section of P.L.2007, c.92 (C.43:15C-1 et al.) in an elective public office of this State or of a political subdivision thereof, except that it shall not include a person who holds elective public office on the effective date of this section and is enrolled in the Public Employees' Retirement System while that person continues to hold that elective public office or another elective public office without a break in service. Service in the Legislature shall be considered a single elective public office.

(2) A person who commences service on or after the effective date of this section in an employment, office or position of the State or of a political subdivision thereof, or an agency, board, commission, authority or instrumentality of the State or of a subdivision, pursuant to an appointment by the Governor that requires the advice and consent of the Senate, or pursuant to an appointment by the Governor to serve at the pleasure of the Governor only during his or her term of office. This paragraph shall not be deemed to include a person otherwise eligible for membership in the State Police Retirement System or the Judicial Retirement System.

(3) A person who commences service on or after the effective date of this section in an employment, office or position in a political subdivision of the State, or an agency, board, commission, authority or instrumentality of a subdivision, pursuant to an appointment by an elected public official or elected governing body, that requires the specific consent or approval of the elected governing body of the political subdivision that is substantially similar in nature to the advice and consent of the Senate for appointments by the Governor of the State as that similarity is determined by the elected governing body and set forth in an adopted ordinance or resolution, pursuant to guidelines or policy that shall be established by the Local Finance Board in the Department of Community Affairs or the Department of Education, as appropriate to the elected governing body. This paragraph shall not be deemed to include a person otherwise eligible for membership in the Teachers' Pension and Annuity Fund or the Police and Firemen's Retirement System, or a person who is employed or appointed in the regular or normal course of employment or appointment procedures and consented to or approved in a general or routine manner appropriate for and followed by the political subdivision, or the agency, board, commission, authority or instrumentality of a subdivision, or a person who holds a professional license or certificate to perform and is performing as a certified health officer, tax assessor, tax collector, municipal planner, chief financial officer, registered municipal clerk, construction code official, licensed uniform subcode inspector, qualified purchasing agent, or certified public works manager.

(4) A person who is granted a pension or retirement allowance under any pension fund or retirement system established under the laws of this State and elects to participate pursuant to section 1 of P.L.1977, c.171 (C.43:3C-3) upon being elected to public office.

(5) A member of the Teachers' Pension and Annuity Fund, Police and Firemen's Retirement System, State Police Retirement System, or the Public Employees' Retirement System for whom compensation is defined as the amount of base or contractual salary equivalent to the annual maximum wage contribution base for Social Security, pursuant to the Federal Insurance Contributions Act, for contribution and benefit purposes of those retirement systems, for whom participation in this retirement program shall be with regard to any excess over the maximum compensation only.

(6) A person in employment, office or position for which the annual salary or remuneration is less, or the hours of work per week are fewer, than that which is required to become a member of the Teachers' Pension and Annuity Fund or the Public Employees' Retirement System, or to make contributions to those systems as a member on the basis of any such employment, office or position, after November 1, 2008.

b. No person shall be eligible to participate in the retirement program with respect to any public employment, office, or position if:

(1) the base salary for that employment, office, or position is less than $5,000 per year;

(2) the person is, on the basis of service in that employment, office, or position, eligible for membership or enrolled as a member of another State or locally-administered pension fund or retirement system established under the laws of this State including the Alternate Benefit Program, except as otherwise specifically provided in subsection a. of this section;

(3) the person is receiving a benefit as a retiree from any other State or locally-administered pension fund or retirement system established under the laws of this State, except as provided in section 1 of P.L.1977, c.171 (C.43:3C-3); or

(4) the person is an officer or employee of a political subdivision of this State or of a board of education, or of any agency, authority or instrumentality thereof, who is ineligible for membership in the Public Employees' Retirement System pursuant to section 20 of P.L.2007, c.92 (C.43:15A-7.2).

c. A person eligible and required to participate in the retirement program pursuant to paragraph (5) of subsection a. of this section may elect to waive participation with regard to that employment, office, or position by filing, when first eligible, on a form required by the division, a written waiver with the Division of Pensions and Benefits that waives all rights and benefits that would otherwise be provided by the retirement program. Such a person may thereafter elect to participate in the retirement program by filing, on a form required by the division, a written election to participate in the retirement program and participation in the retirement program pursuant to such election shall commence on the January 1 next following the filing of the election to participate.

d. Service credited to a participant in the Defined Contribution Retirement Program shall not be recognized as service credit to determine eligibility for employer-paid health care benefits in retirement pursuant to P.L.1961, c.49 (C.52:14-17.25 et seq.), N.J.S.40A:10-16 et seq., P.L.1979, c.391 (C.18A:16-12 et al.) or any other law, rule or regulation.

(cf: P.L.2010, c.1, s.7)

7. (New section) a. The Division of Pensions and Benefits in the Department of the Treasury shall reenroll in the Public Employees’ Retirement System, established pursuant to P.L.1954, c.84 (C.43:15A-1 et seq.), any person holding elective public office on the effective date of this act, P.L. , c. (pending before the Legislature as this bill), who is eligible for enrollment in the system as an elected public official pursuant to sections 7 and 75 of P.L.1954, c.84 (C.43:15A-7 and C.43:15A-75), or section 1 of P.L.1972, c.167 (C.43:15A-135), as amended by P.L. , c. (pending before the Legislature as this bill). As of the date of enrollment in the system, the elected official’s participation, if any, in another State-administered retirement program on the basis of that elective public office shall be suspended. The elected public official may elect to waive enrollment in the Public Employees’ Retirement System by signing a form prepared by the division.

b. An elected public official eligible for reenrollment in the Public Employees’ Retirement System pursuant to subsection a. of this section may request, in writing, within 180 days of the effective date of this act, P.L. , c. (pending before the Legislature as this bill), that the official’s enrollment in the system be made retroactive to the date of his or her assumption of another elective office without a break in service as required by sections 7 and 75 of P.L.1954, c.84 (C.43:15A-7 and 43:15A-75), or section 1 of P.L.1972, c.167 (C.43:15A-135), as amended by P.L. , c. (pending before the Legislature as this bill). The division shall grant the request only if the elected official complies with such terms and conditions as may be imposed by the division to ensure compliance with federal law, to ensure that the elected official will not be eligible to receive a benefit from both the Public Employees’ Retirement System and another State-administered retirement program for the same period of service in the elective public office, and to ensure that the employer is reimbursed for any contributions made to the other program by either the program or the elected official unless those contributions may be rolled over into the PERS. Before fulfilling the request, the division shall inform the elected official, in writing, of the terms and conditions for granting the request, and shall include an estimate of any resulting loss of contributions and earnings, penalties that may be imposed by federal or State law, and contributions to be paid to the system by the employee and employer for the period of retroactive enrollment.

8. N.J.S.18A:66-39 is amended to read as follows:

18A:66-39. a. Before June 9, 1971, a member, who shall have been a teacher and a member of the retirement system for each of the 10 years next preceding his retirement, shall, upon the application of his employer or upon his own application or the application of one acting in his behalf, be retired for ordinary disability by the board of trustees, on a regular disability allowance if he is under 60 years of age and on a service allowance if he has reached or passed that age. The physician or physicians designated by the board shall have first made a medical examination of him at his residence or at any other place mutually agreed upon and shall have certified to the board that the member is physically or mentally incapacitated for the performance of duty and should be retired.

b. On and after June 9, 1971, a member, under 60 years of age, who has 10 or more years of credit for New Jersey service, shall, upon the application of his employer or upon his own application or the application of one acting in his behalf, be retired for ordinary disability by the board of trustees. The physician or physicians designated by the board shall have first made a medical examination of him at his residence or at any other place mutually agreed upon and shall have certified to the board that the member is physically or mentally incapacitated for the performance of duty and should be retired. [No person who becomes a member of the retirement system on or after the effective date of P.L.2010, c.3 shall be eligible for retirement pursuant to this subsection.]

c. A member, under 65 years of age, shall, upon the application of his employer or upon his own application or the application of one acting in his behalf, be retired by the board of trustees, if said member is permanently and totally disabled as a direct result of a traumatic event occurring during and as a result of the performance of his regular or assigned duties, on an accidental disability allowance. A traumatic event occurring during voluntary performance of regular or assigned duties at a place of employment before or after required hours of employment which is not in violation of any valid work rule of the employer or otherwise prohibited by the employer shall be deemed as occurring during the performance of regular or assigned duties. [No person who becomes a member of the retirement system on or after the effective date of P.L.2010, c.3 shall be eligible for retirement pursuant to this subsection.]

The application to accomplish such retirement must be filed within five years of the original traumatic event, but the board of trustees may consider an application filed after the five-year period if it can be factually demonstrated to the satisfaction of the board of trustees that the disability is due to the accident and the filing was not accomplished within the five-year period due to a delayed manifestation of the disability or to circumstances beyond the control of the member.

Permanent and total disability resulting from a cardiovascular, pulmonary or musculo-skeletal condition which was not a direct result of a traumatic event occurring in the performance of duty shall be deemed an ordinary disability.

Before consideration of an application for accidental disability allowance by the board of trustees, the physician or physicians designated by the board shall have first made a medical examination of the member at his residence or at any other place mutually agreed upon and shall have certified to the board that he is physically or mentally incapacitated for the performance of duty, and should be retired, and the employer shall have certified to the board that the member is permanently and totally disabled as a direct result of a traumatic event occurring during and as a result of the performance of his regular and assigned duties, the time and place where the duty causing the disability was performed, that the disability was not the result of his willful negligence and that the member should be retired.

(cf: P.L.2010, c.3, s.7)

9. Section 42 of P.L.1954, c.84 (C.43:15A-42) is amended to read as follows:

42. A member, under 60 years of age, who has 10 or more years of credit for New Jersey service, shall, upon the application of the head of the department in which he shall have been employed or upon his own application or the application of one acting in his behalf, be retired for ordinary disability by the board of trustees. The physician or physicians designated by the board shall have first made a medical examination of him at his residence or at any other place mutually agreed upon and shall have certified to the board that the member is physically or mentally incapacitated for the performance of duty and should be retired.

The service requirement provisions of this amendatory and supplementary act shall not become effective for 5 years following the effective date of the act.

[No person who becomes a member of the retirement system on or after the effective date of P.L.2010, c.3 shall be eligible for retirement pursuant to this section.]

(cf: P.L.2010, c.3, s.8)

10. Section 43 of P.L.1954, c.84 (C.43:15A-43) is amended to read as follows:

43. A member who has not attained age 65 shall, upon the application of the head of the department in which he is employed or upon his own application or the application of one acting in his behalf, be retired by the board of trustees, if said employee is permanently and totally disabled as a direct result of a traumatic event occurring during and as a result of the performance of his regular or assigned duties, on an accidental disability allowance. A traumatic event occurring during voluntary performance of regular or assigned duties at a place of employment before or after required hours of employment which is not in violation of any valid work rule of the employer or otherwise prohibited by the employer shall be deemed as occurring during the performance of regular or assigned duties.

Before consideration of the application by the board of trustees, the physician or physicians designated by the board shall have first made a medical examination of the member at his residence or at any other place mutually agreed upon and shall have certified to the board that he is physically or mentally incapacitated for the performance of duty, and should be retired, and the appointing authority shall have certified to the board that the member is permanently and totally disabled as a direct result of a traumatic event occurring during and as a result of the performance of his regular or assigned duties, the time and place where the duty causing the disability was performed, that the disability was not the result of his willful negligence and that the member should be retired.

[No person who becomes a member of the retirement system on or after the effective date of P.L.2010, c.3 shall be eligible for retirement pursuant to this section.]

(cf: P.L.2010, c.3, s.9)

11. Following the effective date of this act, P.L. , c. (pending before the Legislature as this bill), a member of the Teachers’ Pension and Annuity Fund or the Public Employees’ Retirement System who became a member of the retirement system on or after the effective date of P.L.2010, c.3 shall be eligible for retirement pursuant to N.J.S.18A:66-39, section 43 of P.L.1954, c.84 (C.43:15A-43), or section 42 of P.L.1954, c.84 (C.43:15A-42), as appropriate, and shall not be eligible to commence disability insurance coverage under section 10 of P.L.2010, c.3 (C.18A:66-39.1) or section 11 of P.L.2010, c.3 (C.43:15A-42.1), as appropriate. In the case of a member who is receiving disability insurance coverage on the effective date of this act, the Division of Pensions and Benefits in the Department of the Treasury shall expedite an application for retirement pursuant to N.J.S.18A:66-39, section 43 of P.L.1954, c.84 (C.43:15A-43), or section 42 of P.L.1954, c.84 (C.43:15A-42), as appropriate, and if the application is approved because the member is eligible for such a retirement, the disability insurance coverage shall be terminated at an appropriate time.

12. (New section) The annual salary of the executive director of each full time legislative staff operating under the direction of the Senate President, the Speaker of the General Assembly, and the Minority Leaders of each House of the Legislature shall be fixed and established by the President of the Senate and by the Speaker of the General Assembly, as appropriate, for each director in any amount that the President or Speaker determines to be appropriate for that director, but shall not exceed $175,000 in calendar year 2014 and thereafter.

13. Section 1 of P.L.1972, c.167 (C.43:15A-135) is amended to read as follows:

1. Members of the Legislature commencing service on or after the effective date of sections 1 through 19 of P.L.2007, c.92 (C.43:15C-1 through C.43:15C-15, C.43:3C-9, C.43:15A-7, C.43:15A-75 and C.43:15A-135) shall not be eligible for membership in the retirement system based on service in that elective office, except that an elected official enrolled in the retirement system as of that effective date who continues to hold elective public office and is thereafter elected to the Legislature without a break in service as an elected official shall be eligible to continue membership in the retirement system under the terms and conditions of enrollment. A member of the Legislature enrolled in the retirement system as of that effective date who continues to hold office as a member of the Legislature without a break in service shall be eligible to continue membership in the retirement system under the terms and conditions of the member's enrollment, except that during service in the Legislature, a legislator shall be a member of the retirement system on the basis of only one position of service in an elected office or of employment with a participating employer, as designated by the retirement system pursuant to section 28 of P.L.2010, c.1 (C.43:15A-25.2).

(cf: P.L.2010, c.1, s.27)

14. The Title of P.L.1948, c.16 is amended to read as follows:

An Act fixing the annual compensation of members of the Senate and General Assembly and providing for the payment thereof and for the payment of an additional allowance to the President of the Senate and the Speaker of the General Assembly and each member thereof.

(cf: P.L.1948, c.16, Title)

15. The following sections are repealed:

Section 10 of P.L.2010, c.3 (C.18A:66-39.1);

Section 13 of P.L.2010, c.3 (C.18A:66-39.2);

Section 11 of P.L.2010, c.3 (C.43:15A-42.1); and

Section 12 of P.L.2010, c.3 (C.43:15A-42.2).

16. This act shall take effect immediately, except that sections 8, 9, 10, and 15 shall take effect on the first day of the second month following enactment and the Division of Pensions and Benefits in the Department of the Treasury shall take such anticipatory administrative action as shall be deemed necessary to implement sections 8, 9, 10, and 15.

STATEMENT

This bill increases the maximum salary for the Governor’s cabinet officers and members of the Board of Public Utilities (BPU) to $175,000 for calendar year 2014. The language in current law is modified to specifically recognize that the Governor may establish the annual salary for the cabinet officers and BPU members in any amount not less than $141,000 that the Governor determines to be appropriate for each person. The Governor requires the flexibility to set the annual salary at any amount, which need not be the same for all of these officers.

In addition, the bill increases the annual salaries for the justices of the Supreme Court, Appellate Division judges, Assignment judges, judges of the Superior Court, and judges of the Tax Court by 1.5 percent on July 1, 2014, by one percent on July 1, 2015, and by 1.5 percent on July 1, 2016, for a total increase of 4% over a period of four fiscal years. Under current law, the annual salaries for workers’ compensation judges, administrative law judges, surrogates, county clerks, registers of deeds and mortgages, and sheriffs are linked to the annual salary for a Superior Court judge so that they receive the specific or minimum percentage, that is set by law, of the Superior Court judges’ salary. The statutes that provide for these linked salaries are clearly mandatory in nature and when the salaries of judges are increased, the linked salaries must also be increased. The statutory language must be complied with to achieve the Legislature’s intent.

The bill codifies the annual allowance provided to each member of the Senate and General Assembly for member staff services, which will be $140,000. The current allowance is $110,000 and is not provided for by statute.

Prior to July 1, 2007, elected public officials were eligible for enrollment in the Public Employees’ Retirement System (PERS). Since that date, as a result of the enactment of P.L.2007, c.92 (N.J.S.A.43:15C-1 et al.), elected public officials may or may not be eligible for enrollment in the Defined Contribution Retirement Program. Also, under that law, a person who held an elective public office and was a member of the PERS as of that date and who continues to hold that public office continuously without a break in service remains eligible for PERS enrollment. This bill permits any person who held an elective public office on July 1, 2007 and who was subsequently elected to another public office to remain eligible for enrollment in the PERS as long as there is no break in service. Under the bill, such eligible elected public officials may reenroll in PERS. An elected official may make a request to the Division of Pensions and Benefits in the Department of the Treasury that the enrollment in the PERS be made retroactive to the date of his or her assumption of an elective office without a break in service. The division may grant that request if the elected official fulfills certain terms and conditions to ensure compliance with federal law, to ensure that the elected official will not be eligible to receive a benefit from the PERS and another State-administered retirement program for the same period of service in the elective public office, and to ensure that the employer is reimbursed for any contributions made to such other program unless the contributions may be rolled over to PERS.

The bill also permits an elected public official who was enrolled in the retirement system as of July 1, 2007, who continued to hold elective public office, and who thereafter is elected to the Legislature without a break in service to remain eligible to continue membership in the retirement system under the terms and conditions of enrollment. Under current law, members of the Legislature commencing service on or after July 1, 2007 are not eligible for membership in the retirement system based on service in that elective office.

The bill repeals sections 10 through 13 of P.L.2010, c.3 which established disability insurance coverage, rather than a disability pension, for employees enrolled in the TPAF and PERS on or after March 22, 2010. With this repeal, an ordinary or accidental disability pension will be available to all current and future members of the pension systems. The bill also eliminates statutory language referring to the disability insurance coverage established by those sections of law. With this repeal, an ordinary or accidental disability pension will be available to all current and future members of these pension systems. A member currently receiving disability insurance will instead be granted either an ordinary or accidental disability pension, if eligible.

The bill codifies a provision for the annual salary of the executive director of each full time legislative staff operating under the direction of the Senate President, the Speaker of the General Assembly, and the Minority Leaders of each House of the Legislature. Currently, these salaries are not provided for by statute. Under the bill, the salary for each executive director will be fixed and established by the President of the Senate or by the Speaker of the General Assembly, as appropriate, in any amount that the President or Speaker determines to be appropriate for that director, but not to exceed $175,000 in calendar year 2014 and thereafter. While this maximum amount for the annual salary is identical to the maximum amount for the annual salary for the Governor’s cabinet officers and members of the Board of Public Utilities, the President of the Senate and the Speaker of the General Assembly will have complete discretion to set the salaries for the legislative executive directors at any amount that is at or below this maximum, as they deem appropriate, regardless of the decisions made by the Governor for the salaries of the cabinet officers and members of the Board of Public Utilities. The President and Speaker require the flexibility to set the annual salary for each executive director at any amount, whether at or below the maximum, irrespective of the salaries of the Executive Branch officers.