Changes eligibility of Administrative Law Judges from DCRP to PERS.

A1610

ASSEMBLY, No. 1610

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

���� Changes eligibility of Administrative Law Judges from
DCRP to PERS.

CURRENT VERSION OF TEXT

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

��

An Act

concerning eligibility for enrollment in the
Public Employees� Retirement System and amending P.L.2007, c.92 and P.L.1954,
c.94.

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

���� 1.��� Section 2 of P.L.2007,
c.92 (C.43:15C-2) is amended to read as follows:

���� 2.� a. �The following persons
shall be eligible and shall participate in the Defined Contribution Retirement
Program:

���� (1)�� A person who commences
service on or after the effective date of this section of P.L.2007, c.92
(C.43:15C-1 et al.) in an elective public office of this State or of a
political subdivision thereof, except that it shall not include a person who
holds elective public office on the effective date of this section and is
enrolled in the Public Employees' Retirement System while that person continues
to hold that elective public office or, for an elected official specified in
section 5 of P.L.2017, c.344 (C.43:15A-7.5), another elective public office,
without a break in service.� Service in the Legislature shall be considered a
single elective public office.

���� (2)�� A person who commences
service on or after the effective date of this section in an employment, office
or position of the State or of a political subdivision thereof, or an agency,
board, commission, authority or instrumentality of the State or of a subdivision,
pursuant to an appointment by the Governor that requires the advice and consent
of the Senate, or pursuant to an appointment by the Governor to serve at the
pleasure of the Governor only during his or her term of office.� This paragraph
shall not be deemed to include a person otherwise eligible for membership in
the State Police Retirement System or the Judicial Retirement System.� This
paragraph shall not include Workers' Compensation Judges of the Division of
Workers' Compensation in the Department of Labor and Workforce Development
and
Administrative Law Judges of the Office of Administrative Law
. This
paragraph shall not include a commissioner appointed to the New Jersey Maritime
Pilot and Docking Pilot Commission pursuant to R.S.12:8-1.

���� (3)�� A person who commences
service on or after the effective date of this section in an employment, office
or position in a political subdivision of the State, or an agency, board,
commission, authority or instrumentality of a subdivision, pursuant to an appointment
by an elected public official or elected governing body, that requires the
specific consent or approval of the elected governing body of the political
subdivision that is substantially similar in nature to the advice and consent
of the Senate for appointments by the Governor of the State as that similarity
is determined by the elected governing body and set forth in an adopted
ordinance or resolution, pursuant to guidelines or policy that shall be
established by the Local Finance Board in the Department of Community Affairs
or the Department of Education, as appropriate to the elected governing body.�
This paragraph shall not be deemed to include a person otherwise eligible for
membership in the Teachers' Pension and Annuity Fund or the Police and Firemen's
Retirement System, or a person who is employed or appointed in the regular or
normal course of employment or appointment procedures and consented to or
approved in a general or routine manner appropriate for and followed by the
political subdivision, or the agency, board, commission, authority or
instrumentality of a subdivision, or a person who holds a professional license
or certificate to perform and is performing as a certified health officer, tax
assessor, tax collector, municipal planner, chief financial officer, registered
municipal clerk, construction code official, licensed uniform subcode
inspector, qualified purchasing agent, or certified public works manager.

���� (4)�� A person who is granted
a pension or retirement allowance under any pension fund or retirement system
established under the laws of this State and elects to participate pursuant to
section 1 of P.L.1977, c.171 (C.43:3C-3) upon being elected to public office.

���� (5)�� A member of the
Teachers' Pension and Annuity Fund, Police and Firemen's Retirement System,
State Police Retirement System, or the Public Employees' Retirement System for
whom compensation is defined as the amount of base or contractual salary
equivalent to the annual maximum wage contribution base for Social Security,
pursuant to the Federal Insurance Contributions Act, for contribution and
benefit purposes of those retirement systems, for whom participation in this
retirement program shall be with regard to any excess over the maximum
compensation only.

���� (6)�� A person in employment,
office or position for which the annual salary or remuneration is less, or the
hours of work per week are fewer, than that which is required to become a
member of the Teachers' Pension and Annuity Fund or the Public Employees' Retirement
System, or to make contributions to those systems as a member on the basis of
any such employment, office or position, after November 1, 2008.

���� b.��� No person shall be
eligible to participate in the retirement program with respect to any public
employment, office, or position if:

���� (1)�� the base salary for that
employment, office, or position is less than $5,000 per year;

���� (2)�� the person is, on the
basis of service in that employment, office, or position, eligible for
membership or enrolled as a member of another State or locally-administered
pension fund or retirement system established under the laws of this State
including the Alternate Benefit Program, except as otherwise specifically
provided in subsection a. of this section;

���� (3)�� the person is receiving
a benefit as a retiree from any other State or locally-administered pension
fund or retirement system established under the laws of this State, except as
provided in section 1 of P.L.1977, c.171 (C.43:3C-3); or

���� (4)�� the person is an officer
or employee of a political subdivision of this State or of a board of
education, or of any agency, authority or instrumentality thereof, who is
ineligible for membership in the Public Employees' Retirement System pursuant
to section 20 of P.L.2007, c.92 (C.43:15A-7.2).

���� c.���� A person eligible and
required to participate in the retirement program pursuant to paragraph (5) of
subsection a. of this section may elect to waive participation with regard to
that employment, office, or position by filing, when first eligible, on a form
required by the division, a written waiver with the Division of Pensions and
Benefits that waives all rights and benefits that would otherwise be provided
by the retirement program.� Such a person may thereafter elect to participate
in the retirement program by filing, on a form required by the division, a
written election to participate in the retirement program and participation in
the retirement program pursuant to such election shall commence on the January
1 next following the filing of the election to participate.

���� d.��� Service credited to a
participant in the Defined Contribution Retirement Program shall not be
recognized as service credit to determine eligibility for employer-paid health
care benefits in retirement pursuant to P.L.1961, c.49 (C.52:14-17.25 et seq.),
N.J.S.40A:10-16 et seq., P.L.1979, c.391 (C.18A:16-12 et al.) or any other law,
rule or regulation.

(cf: P.L.2021, c.418, s.3)

���� 2.��� Section 7 of P.L.1954,
c.84 (C.43:15A-7) is amended to read as follows:

���� 7.��� There is hereby
established the Public Employees' Retirement System of New Jersey in the
Division of Pensions and Benefits of the Department of the Treasury.� The
membership of the retirement system shall include:

���� a.���� The members of the
former "State Employees' Retirement System of New Jersey" enrolled as
such as of December 30, 1954, who shall not have claimed for refund their
accumulated deductions in said system as provided in this section;

���� b.��� Any person becoming an
employee of the State or other employer after January 2, 1955 and every
veteran, other than a retired member who returns to service pursuant to
subsection b. of section 27 of P.L.1966, c.217 (C.43:15A-57.2) and other than
those whose appointments are seasonal, becoming an employee of the State or
other employer after such date, including a temporary employee with at least
one year's continuous service.� The membership of the retirement system shall
not include those persons appointed to serve as described in paragraphs (2) and
(3) of subsection a. of section 2 of P.L.2007, c.92 (C.43:15C-2), except a
person who was a member of the retirement system prior to the effective date of
sections 1 through 19 of P.L.2007, c.92 (C.43:15C-1 through C.43:15C-15,
C.43:3C-9, C.43:15A-7, C.43:15A-75 and C.43:15A-135) and continuously
thereafter.� The membership of the retirement system shall include Workers'
Compensation Judges of the Division of Workers' Compensation in the Department
of Labor and Workforce Development
and Administrative Law Judges of the
Office of Administrative Law;
and

���� c.���� Every employee veteran
in the employ of the State or other employer on January 2, 1955, who is not a
member of any retirement system supported wholly or partly by the State.

���� d.��� Membership in the
retirement system shall be optional for elected officials other than veterans,
and for school crossing guards, who having become eligible for benefits under
other pension systems are so employed on a part-time basis.� Elected officials commencing
service on or after the effective date of sections 1 through 19 of P.L.2007,
c.92 (C.43:15C-1 through C.43:15C-15, C.43:3C-9, C.43:15A-7 , C.43:15A-75 and
C.43:15A-135) shall not be eligible for membership in the retirement system
based on service in the elective public office, except that an elected official
enrolled in the retirement system as of that effective date who continues to
hold that elective public office or, for an elected official specified in
section 5 of P.L.2017, c.344 (C.43:15A-7.5), another elective public office,
without a break in service shall be eligible to continue membership in the
retirement system under the terms and conditions of enrollment.� Service in the
Legislature shall be considered a single elective public office.� Any part-time
school crossing guard who is eligible for benefits under any other pension
system and who was hired as a part-time school crossing guard prior to March 4,
1976, may at any time terminate his membership in the retirement system by
making an application in writing to the board of trustees of the retirement
system.� Upon receiving such application, the board of trustees shall terminate
his enrollment in the system and direct the employer to cease accepting
contributions from the member or deducting from the compensation paid to the
member.� State employees who become members of any other retirement system
supported wholly or partly by the State as a condition of employment shall not
be eligible for membership in this retirement system.� Notwithstanding any
other law to the contrary, all other persons accepting employment in the
service of the State shall be required to enroll in the retirement system as a
condition of their employment, regardless of age.

���� (1)�� Before or on November 1,
2008, no person in employment, office or position, for which the annual salary
or remuneration is fixed at less than $1,500.00, shall be eligible to become a
member of the retirement system.

���� (2)�� After November 1, 2008,
a person who was a member of the retirement system on that date and
continuously thereafter shall be eligible to be a member of the retirement
system in employment, office or position, for which the annual salary or
remuneration is fixed at $1,500 or more.

���� (3)�� After November 1, 2008
and before or on the effective date of P.L.2010, c.1, a person who was not a
member of the retirement system on November 1, 2008, or who was a member of the
retirement system on that date but not continuously thereafter, and who is in
employment, office or position, for which the annual salary or remuneration is
certified by the applicable public entity at $7,500 or more, shall be eligible
to become a member of the retirement system.� The $7,500 minimum annual salary
or remuneration amount shall be adjusted annually by the Director of the
Division of Pensions and Benefits, by regulation, in accordance with changes in
the Consumer Price Index but by no more than 4 percent.� "Consumer Price
Index" means the average of the annual increase, expressed as a
percentage, in the consumer price index for all urban consumers in the New York
City and Philadelphia metropolitan statistical areas during the preceding
calendar year as reported by the United States Department of Labor.

���� (4)�� After the effective date
of P.L.2010, c.1, no person in an employment, office or position of the State,
or an agency, board, commission, authority or instrumentality of the State, for
which the hours of work are fixed at fewer than 35 per week shall be eligible
to become a member of the retirement system; and no person in employment,
office or position with a political subdivision of the State, or an agency,
board, commission, authority or instrumentality of a political subdivision of
the State, for which the hours of work are fixed by an ordinance or resolution
of the political subdivision, or agency, board, commission, authority or
instrumentality thereof, at fewer than 32 per week shall be eligible to become
a member of the retirement system.� Any hour or part thereof, during which the
person does not work due to the person's participation in a voluntary or
mandatory furlough program shall not be deducted in determining if a person's
hours of work are fixed at fewer than 35 or 32 per week, as appropriate, for
the purpose of eligibility and the person's service credit as a member of the
system or fund shall include the period of mandatory or voluntary furlough
provided the person continues to make contributions based on the person's base
salary or compensation.� If the pay of a furloughed person is insufficient to
withhold the entirety of the person's regular contributions, then the person
shall remit the entirety of the regular contribution which was not withheld
from the person's pay to the Division of Pensions and Benefits in the
Department of the Treasury in a manner determined by the division, except that
no deduction for the payment of such contributions shall be made from the
unemployment compensation benefits of the employee.

���� e.���� Membership of any
person in the retirement system shall cease if he shall discontinue his service
for more than two consecutive years.

���� f.���� The accumulated
deductions of the members of the former "State Employees' Retirement
System" which have been set aside in a trust fund designated as Fund A as
provided in section 5 of this act and which have not been claimed for refund
prior to February 1, 1955 shall be transferred from said Fund A to the Annuity
Savings Fund of the Retirement System, provided for in section 25 of this act.�
Each member whose accumulated deductions are so transferred shall receive the
same prior service credit, pension credit, and membership credit in the
retirement system as he previously had in the former "State Employees'
Retirement System" and shall have such accumulated deductions credited to
his individual account in the Annuity Savings Fund.� Any outstanding
obligations of such member shall be continued.

���� g.��� Any school crossing
guard electing to terminate his membership in the retirement system pursuant to
subsection d. of this section shall, upon his request, receive a refund of his
accumulated deductions as of the date of his appointment to the position of
school crossing guard.� Such refund of contributions shall serve as a waiver of
all benefits payable to the employee, to his dependent or dependents, or to any
of his beneficiaries under the retirement system.

���� h.��� A temporary employee who
is employed under the federal Workforce Investment Act shall not be eligible
for membership in the system.� Membership for temporary employees employed
under the federal Job Training Partnership Act, Pub.L.97-300 (29 U.S.C.s.1501)
who are in the system on September 19, 1986 shall be terminated, and affected
employees shall receive a refund of their accumulated deductions as of the date
of commencement of employment in a federal Job Training Partnership Act
program.� Such refund of contributions shall serve as a waiver of all benefits
payable to the employee, to his dependent or dependents, or to any of his
beneficiaries under the retirement system.

���� i.���� Membership in the
retirement system shall be optional for a special service employee who is
employed under the federal Older American Community Service Employment Act,
Pub.L.94-135 (42 U.S.C.s.3056).� Any special service employee employed under
the federal Older American Community Service Employment Act, Pub.L.94-135 (42
U.S.C.s.3056), who is in the retirement system on the effective date of
P.L.1996, c.139 may terminate membership in the retirement system by making an
application in writing to the board of trustees of the retirement system.� Upon
receiving the application, the board shall terminate enrollment in the system
and the member shall receive a refund of accumulated deductions as of the date
of commencement of employment in a federal Older American Community Service
Employment Act program.� This refund of contributions shall serve as a waiver
of all benefits payable to the employee, to any dependent or dependents, or to
any beneficiary under the retirement system.

���� j.���� An employee of the
South Jersey Port Corporation who was employed by the South Jersey Port
Corporation as of the effective date of P.L.1997, c.150 (C.34:1B-144 et al.)
and who shall be re-employed within 365 days of such effective date by a
subsidiary corporation or other corporation, which has been established by the
Delaware River Port Authority pursuant to subdivision (m) of Article I of the
compact creating the Delaware River Port Authority (R.S.32:3-2), as defined in
section 3 of P.L.1997, c.150 (C.34:1B-146), shall be eligible to continue
membership while an employee of such subsidiary or other corporation.

���� k.��� An employee of a
renaissance school project established pursuant to P.L.2011, c.176 (C.18A:36C-1
et seq.) upon commencement of employment.

���� l.���� Every commissioner
appointed to the New Jersey Maritime Pilot and Docking Pilot Commission
pursuant to R.S.12:8-1.

(cf: P.L.2021, c.418, s.2)

���� 3.��� An Administrative Law
Judge of the Office of Administrative Law who is a participant in the Defined
Contribution Retirement Program (DCRP), P.L.2007, c.92 (C.43:15C-1 et seq.), on
the effective date of P.L.��� , c.��� (pending before the Legislature as this
bill) shall be transferred and enrolled in the Public Employees� Retirement
System (PERS) within 90 days following that effective date.� A judge may elect
not to be transferred and enrolled by filing a statement within 30 days
following that effective date with the Division of Pensions and Benefits in the
Department of the Treasury waiving all rights and benefits which would
otherwise be provided by the PERS.� The account in the DCRP for each judge
transferred and enrolled shall be transferred to the PERS and each judge shall
be given service credit in the PERS for service during participation in the
DCRP.� The unfunded liability for the benefits provided by the transfer and
enrollment of such judges shall be paid by the State to the PERS.

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

STATEMENT

���� This bill provides for the
enrollment of Administrative Law Judges of the Office of Administrative Law in
the Public Employees Retirement System (PERS).� These judges currently
participate in the Defined Contribution Retirement Program (DCRP).� The bill also
provides for the transfer into PERS of all judges currently participating in
the DCRP.