S3176

An Act concerning a return to employment by certain former employees of the Legislature after retirement from the Public Employees’ Retirement System, and amending P.L.2021, c.498.concerning a return to employment by certain former employees of the Legislature after retirement from the Public Employees’ Retirement System, and amending P.L.2021, c.498.

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

1. Section 1 of P.L.2021, c.498 shall be amended to read as follows:

1. Notwithstanding any provision of P.L.1954, c.84 (C.43:15A-1 et seq.) to the contrary, a former member of the Public Employees’ Retirement System who is a former employee of the Legislature and who has been granted a retirement allowance prior to the effective date of P.L.2021, c.498, or during calendar years 2022, 2023, or 2024, for any cause other than disability, may return to employment in the Legislature, without cancellation of the retirement and reenrollment in the system, for a term of not more than [four] seven years if: (1) the return commences no less than 30 days after the retirement allowance becomes due and payable; (2) the former member had attained the service retirement age, applicable to that member, as of the date of retirement; and (3) the former member is re-employed as a part-time employee and works no more than 20 hours per week.

The former member’s retirement shall have been a bona fide retirement and any employment or reemployment under this section shall not be prearranged before retirement.

This section shall be effective if the qualified status of the retirement system under federal law can be maintained upon its application, and such notifications to the system as may be available shall be made to allow for its application.

A former member of the Legislature shall not be eligible to return to employment or office with the Legislature under this section.

A former member of the retirement system who returned to employment pursuant to this section prior to the effective date of [P.L.2023, c.249] P.L. , c. (pending before the Legislature as this bill) shall be permitted to extend the term of the return to employment from two years to [four] seven years from the date of return.

(cf: P.L.2023, c.249, s.1)

2. This act shall take effect immediately.

STATEMENT

This bill permanently extends the provisions of P.L.2021, c.498, which permits a retired member of the Public Employees’ Retirement System (PERS) to return to employment with the Legislature under certain circumstances.

Under current law, a retired member of PERS who was employed with the Legislature and who was granted a retirement allowance prior to or on January 18, 2021, or during calendar years 2022, 2023, or 2024, for any cause other than disability, may return to employment with the Legislature, without cancellation of the retirement and reenrollment in PERS, for a term of not more than four years. This return is permitted if:

(1) the return commences no less than 30 days after the retirement allowance becomes due and payable;

(2) the retired member had attained the service retirement age, applicable to that member, as of the date of retirement; and

(3) the retired member is re-employed as a part-time employee and works no more than 20 hours per week.

The retirement has to be a bona fide retirement and any return to employment under this law cannot be prearranged before retirement. The law does not apply to a former member of the Legislature itself.

Under this bill, retired members who had returned to employment with the Legislature pursuant to the current law may extend the term of the return to employment indefinitely. The bill also removes the language that provides that only former employees of the Legislature who were granted a retirement allowance prior to or on January 18, 2021, or during calendar years 2022, 2023, or 2024, may return to employment in the Legislature.