S1367

An Act concerning mandatory retirement age of police chiefs and fire department chiefs and amending P.L.1944, c.255.

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

1. Section 5 of P.L.1944, c.255 (C.43:16A-5) is amended to read as follows:

5. (1) Any member in service who has attained age 55 years may retire on a service retirement allowance upon filing a written and duly executed application to the retirement system, setting forth at what time, not less than one month subsequent to the filing thereof, he desires to be retired. Any member in service who attains age 65 years shall be retired on a service retirement allowance forthwith on the first day of the next calendar month, except that a member hired prior to January 1, 1987 may remain a member of the system until the member attains age 68 years or 25 years of creditable service, whichever comes first. A member appointed as a police chief of a law enforcement agency or a chief of a fire department may remain a member of the system until the end of the calendar year in which the member attains age 67 years provided:

(a) the member was appointed as a police or fire department chief prior to attaining 65 years of age; and

(b) the appointing authority affirmatory votes by a majority of its members to retain a police or fire department chief who is older than 65 years of age.

(2) Upon retirement for service a member shall receive a service retirement allowance which shall consist of:

(a) An annuity which shall be the actuarial equivalent of his aggregate contributions and

(b) A pension in the amount which, when added to the member's annuity, will provide a total retirement allowance of one-sixtieth of his average final compensation multiplied by the number of years of his creditable service, or 2% of his average final compensation multiplied by the number of years of his creditable service up to 30 plus 1% of his average final compensation multiplied by the number of years of creditable service over 30, or 50% of his final compensation if the member has established 20 or more years of creditable service, whichever is greater.

(3) (a) Any member of the retirement system as of the effective date of P.L.1999, c.428 who has 20 or more years of creditable service at the time of retirement shall be entitled to receive a retirement allowance equal to 50% of the member's final compensation plus, in the case of a member required to retire pursuant to the provisions of subsection (1) of this section, 3% of final compensation multiplied by the number of years of creditable service over 20 but not over 25.

(b) Any member of the retirement system who was enrolled prior to the effective date of P.L.2021, c.52 and who is a member on that effective date may retire on or after the effective date of P.L.2021, c.52 but no later than the first day of the 25th month following that effective date on a service retirement allowance, regardless of age, upon attaining 20 or more years of creditable service and shall be entitled to receive a service retirement allowance equal to 50% of the member's final compensation.

(4) Upon the receipt of proper proofs of the death of a member who has retired on a service retirement allowance, there shall be paid to his beneficiary an amount equal to one-half of the compensation upon which contributions by the member to the annuity savings fund were based in the last year of creditable service.

(cf: P.L.2021, c.52, s.1)

2. This act shall take effect immediately.

STATEMENT

This bill increases the mandatory retirement age to 67 years for police chiefs of a law enforcement agency and chiefs of a fire department.

Under current law, a member of the Police and Firemen's Retirement System of New Jersey (PFRS) is required to retire upon reaching age 65. Additionally, PFRS members hired prior to January 1, 1987 may remain a member of the system until the member attains 68 years of age or 25 years of creditable service, whichever comes first.

This bill allows a police chief and fire department chief member to remain a PFRS member until the end of the calendar year in which the member reaches age 67 provided the member was appointed as a police or fire department chief prior to attaining 65 years of age. The bill requires the appointing authority to affirmatively vote by a majority of its members to retain a police or fire department chief who is older than 65 years of age.