LEGISLATIVE FISCAL ESTIMATE

SENATE, No. 4252

STATE OF NEW JERSEY

219th LEGISLATURE

DATED: JANUARY 12, 2022

SUMMARY

Synopsis:	Limits extension of mandatory retirement to 90 days from State Police Retirement System during emergencies.
Type of Impact:	Periodic expenditure decrease, State General Fund
Agencies Affected:	Department of Law and Public Safety

Office of Legislative Services Estimate
Fiscal Impact	Year 1	Year 2	Year 3
State Cost Savings		Indeterminate

· The Office of Legislative Services (OLS) estimates that there will be a State expenditure decrease when those members of the State Police Retirement System (SPRS) who delay their mandatory retirement during states of emergency do retire under the limits set forth in the bill.  The savings will result from reduced compensation and benefit costs as members retire.

· The savings cannot be determined because the number of members who delay retirement, and their salary and benefit costs, are not known.

BILL DESCRIPTION

      This bill limits to 90 days the period during which members of the State Police Retirement System can be kept on past their scheduled retirement dates.  The bill also gives the Superintendent of the State Police discretion in permitting these extensions of service based on a need to supplement available staffing or in consideration of the member’s specific assignment or expertise.

      Under current law, the retirement may be extended for an indefinite period.  At the beginning of the COVID-19 pandemic, the law was changed to allow members of the State Police Retirement System, at their request, to delay their mandatory retirement at age 55 until the end of the emergency.  The change did not apply only to the COVID-19 pandemic, but to all future emergency periods. 

FISCAL ANALYSIS

EXECUTIVE BRANCH

      None received.

OFFICE OF LEGISLATIVE SERVICES

      The OLS estimates that there will be an expenditure decrease when those members of the SPRS who delay their mandatory retirement during states of emergency do retire under the limits set forth in the bill.  The savings will result from reduced compensation and benefit costs as members retire. The savings cannot be determined because the number of members who delay retirement, and their salary and benefit costs, 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.).