S1792

An Act allowing law enforcement officers to transfer and enroll in the Police and Firemen's Retirement System and supplementing P.L.1944, c.255 (C.43:16A-1 et seq.).

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

1. Notwithstanding the provisions of P.L.1944, c.255 (C.43:16A-1 et seq.) to the contrary, any law enforcement officer who is enrolled on the effective date of this act in the Public Employees' Retirement System, established pursuant to P.L.1954, c.84 (C.43:15A-1 et seq.) and meets the requirements for membership in the Police and Firemen's Retirement System as set forth in the definition of "policeman" in section 1 of P.L.1944, c.255 (C.43:16A-1), may transfer membership to the Police and Firemen's Retirement System, by waiving all rights and benefits which would otherwise be provided by the Public Employees' Retirement System. A law enforcement officer may continue membership in the Public Employees' Retirement System by waiving all rights and benefits which would otherwise be provided by the Police and Firemen's Retirement System. Such waivers shall be accomplished by filing forms satisfactory to the Division of Pensions and Benefits in the Department of the Treasury within 90 days after the effective date of this act. In the absence of the filing of a timely waiver by an eligible law enforcement officer, the pension status of that law enforcement officer shall remain unchanged, and the membership of the law enforcement officer shall not be transferred to the Police and Firemen's Retirement System.

2. Within 120 days after the effective date of this act, the Public Employees' Retirement system shall remit to the Police and Firemen's Retirement System all accumulated deductions standing to the credit of each transferred employee as a member of that retirement system, and within 180 days following the effective date of this act remit the pro-rata part of the reserve fund constituting the employer's obligations under the Public Employees' Retirement System applicable to the employee's account, and the Police and Firemen's Retirement System shall than enter the respective sums so remitted to it to the credit of the employee in the annuity savings fund and to the credit of the employer in the pension accumulation fund of the Police and Firemen's Retirement System. Regular interest shall be added to the employer's obligations if the moneys are not remitted within the periods prescribed by this section.

3. The transferred employees shall be members of the Police and Firemen's Retirement System and deductions from their salaries and contributions on their behalf shall thereafter be made as required by P.L.1944, c.255 (C.43:16A-1 et seq.). The transferred employees shall have the same contribution obligation and enjoy the same rights and benefits as other members of the retirement system. Any credit for public service which had been established in the Public Employees' Retirement System by the transferred employee shall be established in the Police and Firemen's Retirement System.

4. The actuary of the Police and Firemen's Retirement System shall calculate the liability of each employer of employees becoming members of the Police and Firemen's Retirement System under this act, taking into account the value of moneys remitted by the Public Employees' Retirement System. In the event that the value of the money so remitted is less than the total which is required by the Police and Firemen's Retirement System to provide the transferred member with credit for all public service, the employee shall be responsible for the amount equal to the difference between these two values. The payment may be made in a lump sum or in regular monthly installments equal to at least 1/2 the employee's normal contribution to the retirement system over a period of 10 years, as the employee may elect, pursuant to rules and regulations as may be promulgated by the Director of the Division of Pensions and Benefits.

5. Notwithstanding the provisions of P.L.1944, c.255 (C.43:16A-1 et seq.) to the contrary, any law enforcement officer hired on or after the effective date of this act, P.L. c. (pending before the Legislature as this bill) shall be enrolled in the Police and Firemen's Retirement System.

6. The Director of the Division of Pensions and Benefits in the Department of the Treasury may promulgate rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the purposes of this act.

7. This act shall take effect immediately.

STATEMENT

This bill allows certain law enforcement officers to transfer and enroll in the Police and Firemen's Retirement System. It provides that a law enforcement officer who is enrolled in the Public Employees' Retirement System may transfer to the Police and Firemen's Retirement System by waiving all rights and benefits which would otherwise be provided by the Public Employees' Retirement System. Any law enforcement officer may continue membership in the Public Employees' Retirement System by waiving all rights and benefits which would otherwise be provided by the Police and Firemen's Retirement System. Such waivers would be accomplished by filing forms satisfactory to the Division of Pensions and Benefits in the Department of the Treasury within 90 days after the enactment of this bill.

The actuary of the Police and Firemen's Retirement System would be required to calculate the liability of each employer of the employees becoming members of the Police and Firemen's Retirement System, taking into account the value of moneys remitted by the Public Employees' Retirement System. In the event that the value of the money so remitted is less than the total which is required by the Police and Firemen's Retirement System to provide the transferred member with credit for all public service, the employee is responsible for the amount equal to the difference between these two values.

Any law enforcement officer hired on or after the enactment of this bill would be enrolled in the Police and Firemen's Retirement System.