LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 5074

STATE OF NEW JERSEY

219th LEGISLATURE

 

DATED: JANUARY 7, 2022

 

 

SUMMARY

 

Synopsis:

Permits members of SPRS to purchase service credit for prior public employment with federal government or another state.

Type of Impact:

Annual State expenditure increase, General Fund

Agencies Affected:

Division of Pensions and Benefits, Department of the Treasury

 

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1 

Year 2 

Year 3 

 

State Cost Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) finds this bill will result in an annual increase in State contributions for the State Police Retirement System (SPRS).  The Office of Legislative Services cannot determine the impact because the number of SPRS members who may purchase service credit, and the details of each purchase, are not known.

 

 

BILL DESCRIPTION

 

      This bill permits members of the State Police Retirement System to purchase service credit earned from public employment in another state or with the United States Government. The member may purchase credit by paying the actuarially required amount as applicable to the member based on the member’s age and salary at the time of purchase, or the highest annual compensation for service in this State, whichever is greater.

      The member may purchase credit for all or a portion of the service up to the nearest number of years and months, but not exceeding five years.  No application will be accepted for the purchase of credit for such service if, at the time of application, the member has a vested right to retirement benefits in another retirement system based in whole or in part upon that service.  Neither the State nor the employer of a member who applies to purchase credit for public employment with the United States Government will be liable for any payment to the retirement system on behalf of the member for the purchase of this type of credit. 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS finds this bill will result in an annual increase in State contributions for the SPRS.  The Office of Legislative Services cannot determine the impact because the number of members who may purchase service credit, and the details of each purchase, are not known.

 

 

Section:

State Government

Analyst:

Aggie Szilagyi

Section Chief

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).