Allows consideration of purchased PERS credit for federal service abroad in Central Intelligence Agency to qualify for employer-provided health care benefits in retirement.

A1591

ASSEMBLY, No. 1591

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman SEAN T. KEAN

District 30 (Monmouth and Ocean)

SYNOPSIS

���� Allows consideration of purchased PERS credit for
federal service abroad in Central Intelligence Agency to qualify for
employer-provided health care benefits in retirement.

CURRENT VERSION OF TEXT

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

��

An Act

concerning the consideration of certain
purchased service credit in the Public Employees� Retirement System with regard
to employer-provided health care benefits in retirement and amending P.L.1963,
c.19.�

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

���� 1.��� 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, 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 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 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
or for service abroad with the United States in the
Central Intelligence Agency
, 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.�

(cf: P.L.2008, c.89, s.4)�

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

STATEMENT

���� This bill provides an
exception to a statute providing that a purchase of service credit in the
Public Employees� Retirement System (PERS) for employment in other states or
with the United States Government, made on or after November 1, 2008, except a
purchase for military service in the Armed Forces of the United States, will
not be eligible for consideration when service is used to determine the
qualification of the PERS member for any health care benefits coverage paid, in
whole or in part, by a public employer after the member's retirement.� The bill
adds a second exception, a purchase after that date for service abroad with the
United States Government in the Central Intelligence Agency.