Permits purchase of service credit in PERS, TPAF, PFRS, and SPRS for period of enrollment in military service academy.

A1053

ASSEMBLY, No. 1053

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman WAYNE P. DEANGELO

District 14 (Mercer and Middlesex)

SYNOPSIS

���� Permits purchase of service credit in PERS, TPAF,
PFRS, and SPRS for period of enrollment in military service academy.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning the purchase of credit in a
State-administered retirement system for certain military service and amending
various parts of the statutory law.

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

���� 1.� N.J.S.18A:66-13 is amended
to read as follows:�

���� 18A:66-13.� Prior service
credit. A member may file a detailed statement of:� a. school service and
service in a similar capacity in other states and in schools within and outside
the United States operated by a department of the United States Government for
the instruction of the children of United States Government officers and
employees, or b. other public employment in other states or with the United
States Government which would be eligible for credit in a State-administered
retirement system if the employment was with a public employer in this State,
or c. military service in the Armed Forces of the United States,
including
any period of enrollment in a military service academy,
rendered prior to
becoming a member, for which the member desires credit, and of such other facts
as the retirement system may require. The member may purchase credit for all or
a portion of the service evidenced in the statement up to the nearest number of
years and months, but not exceeding 10 years, provided however, that a member
purchasing that maximum credit may purchase up to five additional years for
additional military service qualifying the member as a veteran as defined in
N.J.S.18A:66-2.� No application shall 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.

���� The member may purchase credit
for the service by paying into the annuity savings fund the amount required by
applying the factor, supplied by the actuary as being applicable to the
member's age at the time of the purchase, to the member's salary at that time,
or to the highest annual compensation for service in this State for which
contributions were made during any prior fiscal year of membership, whichever
is greater.� The purchase may be made in regular installments, equal to at
least one-half the full normal contribution to the retirement system, over a
maximum period of 10 years.� Neither the State nor the employer of a member who
applies to purchase credit for public employment with the United States
Government pursuant to subsection b. of this section or for military service
pursuant to subsection c. of this section shall be liable for any payment to
the retirement system on behalf of the member for the purchase of this credit.

���� Notwithstanding any provision
of this act to the contrary, a member shall not be liable for any costs
associated with the financing of pension adjustment benefits and health care
benefits for retirees when purchasing credit for school service, public employment
in other states or with the United States Government, or military service in
the Armed Forces of the United States
, including any period of enrollment in
a military service academy
.�

���� Any member electing to
purchase the service who retires prior to completing payments as agreed with
the retirement system will receive pro rata credit for service purchased prior
to the date of retirement, but if the member so elects at the time of retirement,
the member may make the additional lump sum payment required at that time to
provide full credit.�

���� Notwithstanding any other
provision of law to the contrary, service credit established in the retirement
system by a member through purchase in accordance with this section, which
purchase was made by an application submitted on or after the effective date of
P.L.2008, c.89, except a purchase for military service in the Armed Forces of
the United States,
including any period of enrollment in a� military service
academy,
shall not be eligible for consideration when service is used to
determine the qualification of the member for any health care benefits coverage
paid, in whole or in part, by a public employer after the member's retirement.�

����
As used in this section,
�military service academy� means the United States Military Academy, the United
State Naval Academy, the United States Air Force Academy, and the United States
Coast Guard Academy.

(cf: P.L.2008, c.89, s.3)

���� 2.� Section 2 of P.L.1963,
c.19 (C.43:15A-73.1) is amended to read as follows:�

���� 2.��� A member may file a
detailed statement of public employment in other states or with the United
States Government which would be eligible for credit in a State-administered
retirement system if the employment was with a public employer in this State,
or of military service in the Armed Forces of the United States,
including
any period of enrollment in a military service academy,
or of service
resulting from initial appointment or employment on or after January 1, 2002
with a bi-state or multi-state agency established pursuant to an interstate
compact to which the State is a party which would be eligible for credit in a
State-administered retirement system if the employment was with a public
employer in this State, rendered prior to becoming a member, for which the
member desires credit, and of such other facts as the retirement system may
require. The member may purchase credit for all or a portion of the service
evidenced in the statement up to the nearest number of years and months, but
not exceeding 10 years, provided however, that a member purchasing that maximum
credit may purchase up to five additional years for additional military service
qualifying the member as a veteran as defined in section 6 of P.L.1954, c.84
(C.43:15A-6).� No application shall be accepted for the purchase of credit for
the 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. The member may purchase credit for the service by paying into the
annuity savings fund the amount required by applying the factor, supplied by
the actuary as being applicable to the member's age at the time of the
purchase, to the member's salary at that time, or to the highest annual
compensation for service in this State for which contributions were made during
any prior fiscal year of membership, whichever is greater.� The purchase may be
made in regular installments, equal to at least 1/2 of the full normal
contribution to the retirement system, over a maximum period of 10 years.� The
employer of a member who applies, pursuant to this section, to purchase credit
for public employment with the United States Government or for military service
in the Armed Forces of the United States
, including any period of enrollment
in a military service academy,
shall not be liable for any payment to the
retirement system on behalf of the member for the purchase of this credit.

���� Notwithstanding any provision
of this act to the contrary, a member shall not be liable for any costs
associated with the financing of pension adjustment benefits and health care
benefits for retirees when purchasing credit for public employment in other
states or with the United States Government or military service in the Armed
Forces of the United States
, including any period of enrollment in a
military service academy,
or with a bi-state or multi-state agency.

���� Any member electing to make a
purchase pursuant to this section who retires prior to completing payments as
agreed with the retirement system will receive pro rata credit for the purchase
prior to the date of retirement, but if the member so elects at the time of
retirement, the member may make the additional lump sum payment required at
that time to provide full credit.�

���� Notwithstanding any other
provision of law to the contrary, service credit established in the retirement
system by a member through purchase in accordance with this section, which
purchase was made by an application submitted on or after the effective date of
P.L.2008, c.89, except a purchase for military service in the Armed Forces of
the United States,
including any period of enrollment in a military service
academy,
shall not be eligible for consideration when service is used to
determine the qualification of the member for any health care benefits coverage
paid, in whole or in part, by a public employer after the member's retirement.�

����
As used in this section,
�military service academy� means the United States Military Academy, the United
State Naval Academy,

the United States Air Force
Academy, and the United States Coast Guard Academy.

(cf: P.L.2008, c.89, s.4)

���� 3.��� Section 3 of P.L.1991,
c.153 (C.43:16A-11.11) is amended to read as follows:�

���� 3.� A member of the Police and
Firemen's Retirement System may file a detailed statement of public employment
in other states or with the United States Government which would be eligible
for credit in a State-administered retirement system if the employment was with
a public employer in this State, of military service in the Armed Forces of the
United States,
including any period of enrollment in a military service
academy,
or of public employment as a class two special law enforcement
officer with a public employer in this State, including time taken during such
public employment to complete a basic police training course required for that
employment, rendered prior to becoming a member, for which the member desires
credit, and of such other facts as the retirement system may require.� The
member may purchase credit for all or a portion of the service evidenced in the
statement up to the nearest number of years and months, but not exceeding 10
years, provided however, that a member purchasing that maximum credit may
purchase up to five additional years for additional military service qualifying
the member as a veteran as defined in section 1 of P.L.1983, c.391
(C.43:16A-11.7).� No application shall be accepted for the purchase of credit
for the 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.

���� The member may purchase credit
for the service by paying into the annuity savings fund the amount required by
applying the factor, supplied by the actuary as being applicable to the
member's age at the time of the purchase, to the member's salary at that time,
or to the highest annual compensation for service in this State for which
contributions were made during any prior fiscal year of membership, whichever
is greater.� The purchase may be made in regular installments equal to at least
1/2 of the full normal contribution to the retirement system, over a maximum
period of 10 years.� The employer of a member who applies, pursuant to this
section, to purchase credit for public employment with the United States
Government, for military service in the Armed Forces of the United States,
including
any period of enrollment in a military service academy,
or for public
employment as a class two special law enforcement officer with a public
employer in this State shall not be liable for any payment to the retirement system
on behalf of the member for the purchase of this credit.

���� Notwithstanding any provision
of this act to the contrary, a member shall not be liable for any costs
associated with the financing of pension adjustment benefits and health care
benefits for retirees when purchasing credit for public employment in other
states or with the United States Government, military service in the Armed
Forces of the United States,
including any period of enrollment in a
military service academy,
or for public employment as a class two special
law enforcement officer with a public employer in this State.

���� Any member electing to
purchase the service who retires prior to completing payments as agreed with
the retirement system will receive pro rata credit for service purchased prior
to the date of retirement, but if the member so elects at the time of retirement,
the member may make the additional lump sum payment required at that time to
provide full credit.

���� Purchase of credit for service
as a class two special law enforcement officer shall be permitted only if the
break between service as such an officer and the date of their enrollment in
the Police and Firemen's Retirement System is less than 365 days.� Members of
the retirement system who are enrolled on the effective date of P.L.2024, c.54
shall have only one year from that effective date to apply for such a
purchase.� The board of trustees shall notify all members of the retirement
system of the provisions of this act, P.L.2024, c.54.

����
As used in this section,
�military service academy� means the United States Military Academy, the United
States Naval Academy, the United States Air Force Academy, and the United
States Coast Guard Academy.

(cf: P.L.2024, c.54, s.1)

���� 4.� Section 2 of P.L.2013,
c.87 (C.53:5A-6.1) is amended to read as follows:

���� 2.��� A member may file a
detailed statement of military service in the Armed Forces of the United
States,
including any period of enrollment in a military service academy,

rendered prior to becoming a member, for which the member desires credit, and
of such other facts as the retirement system may require. The member may
purchase credit for all or a portion of the service evidenced in the statement
up to the nearest number of years and months, but not exceeding 10 years,
provided however, that a member purchasing that maximum credit may purchase up
to five additional years for additional military service qualifying the member
as a veteran as defined in section 3 of P.L.1965, c.89 (C.53:5A-3).� If such
credit is established, it shall be considered the same as creditable service as
a full-time commissioned officer, noncommissioned officer or trooper rendered
as a member.� No application shall be accepted for the purchase of credit for
the 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.� The member may purchase credit for the service by paying into the
annuity savings fund the amount required by applying the factor, supplied by
the actuary as being applicable to the member's age at the time of the
purchase, to the member's salary at that time, or to the highest annual
compensation for service in this State for which contributions were made during
any prior fiscal year of membership, whichever is greater.� The purchase may be
made in regular installments, equal to at least 1/2 of the full normal
contribution to the retirement system, over a maximum period of 10 years.

���� The employer of a member who
applies, pursuant to this section, to purchase credit for military service in
the Armed Forces of the United States
, including any period of enrollment in
a military service academy,
shall not be liable for any payment to the
retirement system on behalf of the member for the purchase of this credit.� The
Adjutant General of the Department of Military and Veterans' Affairs shall be
responsible for determining whether any person seeking to be considered a
"veteran" under section 3 of P.L.1965, c.89 (C.53:5A-3), for the
purpose of purchasing military service credit, meets the criteria set forth
therein and adjudicating an appeal from any person disputing this
determination.� The determination of the Adjutant General shall be binding upon
the Division of Pensions and Benefits.

���� Notwithstanding any provision
of this act to the contrary, a member shall not be liable for any costs
associated with the financing of pension adjustment benefits and health care
benefits for retirees when purchasing credit for military service in the Armed
Forces of the United States
, including any period of enrollment in a
military service academy
.

���� Any member electing to make a
purchase pursuant to this section who retires prior to completing payments as
agreed with the retirement system will receive pro rata credit for the purchase
prior to the date of retirement, but if the member so elects at the time of
retirement, the member may make the additional lump sum payment required at
that time to provide full credit.

As used in this section,
�military service academy� means the United States Military Academy, the United
State Naval Academy, the United States Air Force Academy, and the United States
Coast Guard Academy.

(cf: P.L.2013, c.87, s.2)

���� 5.��� This act shall take
effect immediately.

STATEMENT

���� Under current law, a period of
service in the United States Armed Forces qualifies as military service that a
member of the Public Employees� Retirement System (PERS), Teachers� Pension and
Annuity Fund (TPAF), the Police and Firemen�s Retirement System (PFRS), and
State Police Retirement System (SPRS) may purchase for retirement purposes.�

���� This bill permits the purchase
of the period of enrollment in a United States military service academy.�

���� The four service academies
affiliated with the United States military educate young people to serve as
commissioned officers in the various branches of the United States Armed
Forces.� They are the only academies whose students are on active duty in the United
State Armed Forces from the day they enter the academy, with the rank of cadet
and midshipman and subject to the Uniform Code of Military Justice.

���� The military service academies
are the United States Military Academy, Naval Academy, Air Force Academy, and
the Coast Guard Academy.