Provides service credit for PERS member for former membership in transit retirement program.

A1768

ASSEMBLY, No. 1768

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman ANTHONY S. VERRELLI

District 15 (Hunterdon and Mercer)

Co-Sponsored by:

Assemblywoman Murphy

SYNOPSIS

���� Provides service credit for PERS member for former
membership in transit retirement program.

CURRENT VERSION OF TEXT

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

��

An Act

concerning service credit for certain public
employees in the Public Employees� Retirement System and amending P.L.1954,
c.84.

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

���� 1.��� Section 39 of P.L.1954,
c.84 (C.43:15A-39) is amended to read as follows:

���� 39.�
a.
� In computing
for retirement purposes the total service of a member about to be retired, the
retirement system shall credit the member with the time of all service rendered
by the member since that member's last enrollment, and in addition with all the
service to which the member is entitled and with no other service. Except as
otherwise provided in this act, this service credit shall be final and
conclusive for retirement purposes unless the member shall discontinue service
for more than two consecutive years. In the case of a member for whom
compensation is defined in paragraph (2) of subsection r. of section 6 of
P.L.1954, c.84 (C.43:15A-6), the retirement system shall credit the member with
the time of all service rendered by the member during the part of any year that
the member was a participant of the Defined Contribution Retirement Program,
pursuant to paragraph (5) of subsection a. of section 2 of P.L.2007, c.92
(C.43:15C-2) as amended by section 12 of P.L.2007, c.103, and making
contributions to that program.

���� For the purpose of computing
service for retirement purposes, the board shall fix and determine by
appropriate rules and regulations how much service in any year shall equal a
year of service and a part of a year of service. Not more than one year shall be
credited for all service in a calendar year. A member may purchase credit for
time during which the member shall have been absent on an official leave
without pay. The credit shall be purchased for a period of time equal to:

���� (1)�� three months or the
duration of the leave, whichever is less; or

���� (2)�� if the leave was due to
the member's personal illness, two years or the duration of the leave,
whichever is less; or

���� (3)�� the period of leave that
is specifically allowed for retirement purposes by the provisions of any law of
this State.

���� The purchase shall be made in
the same manner and be subject to the same terms and conditions provided for
the purchase of previous membership service credit by section 8 of P.L.1954,
c.84 (C.43:15A-8). In computing the service or in computing final compensation,
no time during which a member was in employment, office, or position for which
the annual salary or remuneration was fixed at less than $500.00 in the case of
service rendered prior to November 6, 1986, or for which the annual salary or
remuneration, or the number of hours of work, is fixed at less than that which
was required for membership pursuant to section 7 of P.L.1954, c.84
(C.43:15A-7) as applicable to the member in the case of service rendered on or
after that date, shall be credited.� In computing the service or in computing
final compensation, no time during which a member was in employment, office, or
position for which the hours of work were fewer per week than those required
for membership pursuant to subsection d. of section 7 of P.L.1954, c.84

(C.43:15A-7) after the effective date of P.L.2010, c.1 shall be credited,
unless the member shall have been a member since that effective date
continuously.� In the case of a veteran member credit shall be given for
service rendered prior to January 2, 1955, in an employment, office or position
if the annual salary or remuneration therefor was fixed at not less than
$300.00 and such service consisted of the performance of the full duties of the
employment, office or position.

����
b.��� An active �member of
the retirement system who was a member of the Transit Employees� Retirement
Program of the New Jersey Transit Corporation, created and established pursuant
to the "New Jersey Public Transportation Act of 1979," P.L.1979,
c.150 (C.27:25-1 et seq.), on or before July 30, 2006, shall be credited with
one year, and any part thereof, of service in the system for each 3.5 years, and
any part thereof, of service credited in that program if the program transfers
into the system all of the funds from that program that represent each year,
and part thereof, of credited service in that program.� Such transfer shall
become effective upon the remittance to the retirement system by that program
of all accumulated member's contributions, with interest, standing to the
credit of the member and of that portion of the actuarial reserve accumulated
on the member�s account provided for by contributions to the program from the
employer.� Such transfers shall be made in accordance with and to the extent
permitted by State and federal law.�

����
Upon the transfer, no
additional contributions by the member or a public employer shall be required
for the service credited in the system under this subsection.

����
Upon receipt of the
remittance, the service credit accrued in the program up to July 30, 2006 shall
be credited in the system and shall be used to meet any service credit
requirement for benefits under system.�

����
If the member has withdrawn
the member�s contributions to the program or if all the specified funds cannot
be transferred from the program to the system for any reason, the member shall
not receive any service credit pursuant to this subsection.�

����
This subsection shall not
apply if the member has a vested right to retirement benefits in the program
based in whole or in part upon the service credited in that program.

(cf: P.L.2010, c.1, s.4)

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

STATEMENT

����� Under this bill, a member of the Public Employees�
Retirement System (PERS) who was a member, on or before July 30, 2006, of the
Transit Employees� Retirement Program (TERP) of the New Jersey Transit
Corporation would be credited with one year of service, or part thereof, in the
PERS for each 3.5 years, or part thereof, of service credit in the TERP if the
member and employer contributions are transferred from that program into the
retirement system for those years of credited service.�