Sponsored by:
Senator NICHOLAS P. SCUTARI
District 22 (Middlesex, Somerset and Union)
SYNOPSIS
Allows member of PFRS who is police chief and fire department chief to serve until age 67 under certain conditions.
CURRENT VERSION OF TEXT
As reported by the Senate Law and Public Safety Committee on March 21, 2022, with amendments.
An Act concerning mandatory retirement age of police chiefs and fire department chiefs and 1[amending] supplementing1 P.L.1944, c.255 1(C.43:16A-1 et seq.)1.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1[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)]1
11. (New section) a. A member of the Police and Firemen’s Retirement System, established pursuant to P.L.1944, c.255 (C.43:16A-1 et seq.), who:
is serving as a police chief of a law enforcement agency or a chief of a fire department on the effective date of this act, P.L. , c. (pending before the Legislature as this bill); and
will attain the age of 65 years during the period commencing on the effective date of this act and ending on the last day of the 24th calendar month following that effective date,
may remain a member of the system, notwithstanding the mandatory retirement provision of section 5 of P.L.1944, c.255 (C.43:16A-5), until the end of the calendar year in which the member attains the age of 67 years if the appointing authority approves, in writing, the retention and continued service after the age of 65 years of the police or fire chief as the chief.
b. Within 30 days after the last day of the 24th calendar month following the effective date of this act, the Board of Trustees of the Police and Firemen's Retirement System shall submit a report to the Governor, and the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), on the effect of this section on the retirement system. The report shall include the number of members who were retained and continued to serve as the police or fire chief, the length of that service after the age of 65 years, and the impact of that extended service on the retirement system.1
2. This act shall take effect immediately.