Requires Administrative Law Judges to be enrolled in Workers Compensation Judges Part of PERS.

A4827

ASSEMBLY, No. 4827

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 4, 2026

Sponsored by:

Assemblywoman� MARGIE DONLON, M.D.

District 11 (Monmouth)

Assemblywoman� LUANNE M. PETERPAUL

District 11 (Monmouth)

Co-Sponsored by:

Assemblywoman Flynn and Assemblyman Freiman

SYNOPSIS

���� Requires Administrative Law Judges to be enrolled in
Workers Compensation Judges Part of PERS.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning enrollment of Administrative Law Judges
in the Workers Compensation Judges Part of the Public Employees� Retirement
System and amending P.L.2007, c.92, P.L. 2001, c.259, and P.L.1954, c.84.

����
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
or
Administrative Law Judges of the Office of Administrative Law within the
Department of State
.� 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 within the Department of State
; 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.��� Section 1 of P.L.2001,
c.259 (C.43:15A-142) is amended to read as follows:

���� 1.��� As used in this act,
P.L.2001, c.259 (C.43:15A-142 et seq.):

����
�Administrative law judges�
means the Director and Chief administrative law judge, assignment judges,
supervisory judges, and administrative law judges of the Office of
Administrative Law within the Department of State.

���� "Aggregate public
service" includes service as a workers compensation
or administrative
law
judge and in an office, position, or employment of this State or of a
county, municipality, board of education, or public agency of this State.

���� "Beneficiary" means
any person entitled to receive any benefit pursuant to the provisions of this
act by reason of the death of a member or retirant.

���� "Child" means a
deceased member's or retirant's unmarried child who is (a) under the age of 18;
(b) of any age who, at the time of the member's or retirant's death, is
disabled because of an intellectual disability or physical incapacity, is unable
to do any substantial, gainful work because of the impairment, and the
impairment has lasted or can be expected to last for a continuous period of not
less than 12 months, as affirmed by the medical board; or (c) under the age of
21 and is attending school full time.

���� "Final salary" means
the annual salary received by the member at the time of retirement or death.

���� "Retirant" means any
former member receiving a pension or retirement allowance as provided by this
act.

���� "Widow" means the
woman to whom a member was married at least four years before the date of his
death and to whom he continued to be married until the date of his death.� The
eligibility of a widow to receive a survivor's benefit shall be considered
terminated by the marriage of the widow subsequent to the member's or the
retirant's death.� In the event of accidental death, the four-year
qualification shall be waived.� When used in this act, the term
"widow" shall mean and include "widower" as may be necessary
and appropriate to the particular situation.

���� "Widower" means the
man to whom a member was married at least four years before the date of her
death and to whom she continued to be married until the date of her death.� The
eligibility of a widower to receive a survivor's benefit shall be considered
terminated by the marriage of the widower subsequent to the member's or the
retirant's death.� In the event of accidental death, the four-year
qualification shall be waived.

���� "Workers compensation
judges" means the Chief Judges, administrative supervisory judges,
supervisory judges and judges of compensation of the Division of Workers'
Compensation of the Department of Labor and Workforce Development.

(cf: P.L.2010, c.50, s.72)

���� 4.��� Section 2 of P.L.2001,
c.259 (C.43:15A-143) is amended to read as follows:

���� 2.� a.� Notwithstanding the
provisions of any other law, workers compensation judges
and administrative
law judges
shall be members of the Workers Compensation
and
Administrative Law
Judges Part, established pursuant to this act, P.L.2001,
c.259 (C.43:15A-142 et seq.),
as amended by P.L. , c. (pending before the
Legislature as this bill),
of the Public Employees' Retirement System,
established pursuant to P.L.1954, c.84 (C.43:15A-1 et seq.), and shall be
subject to the same membership and benefit provisions as State employees,
except as provided by P.L.2001, c.259.� Membership in the retirement system
shall be a condition of employment for service as a judge of compensation
or
administrative law judge
.

���� b.��� A Workers' Compensation
Judge of the Division of Workers' Compensation in the Department of Labor and
Workforce Development who is a participant in the Defined Contribution
Retirement Program, established pursuant to P.L.2007, c.92 (C.43:15C-1 et
seq.), on the effective date of P.L.2021, c.140 shall be transferred and
enrolled in the Workers' Compensation Judges Part of the Public Employees'
Retirement System within 90 days following that effective date.�
An
Administrative Law Judge of the Office of Administrative Law within the
Department of State who is a participant in the Defined Contribution Retirement
Program, established pursuant to P.L.2007, c.92 (C.43:15C-1 et seq.), on the
effective date of P.L. , c. (now pending before the Legislature as this bill)
shall be transferred and enrolled in the Workers� Compensation and
Administrative Law Judges Part of the Public Employees� Retirement System
within 90 days following the effective date of P.L. , c. (pending before the
Legislature as this bill).� An Administrative Law Judge of the Office of
Administrative Law within the Department of State who is a participant in the
Public Employees� Retirement System, established pursuant to P.L.1954, c. 84
(C.43:15A-1 et seq.) shall be transferred and enrolled in the Workers�
Compensation and Administrative Law Judges Part of the Public Employees�
Retirement System within 90 days following the effective date of P.L. , c.
(pending before the Legislature as this bill).�
The account in the Defined
Contribution Retirement Program or the Public Employees' Retirement Program for
each judge transferred and enrolled shall be transferred to the Workers'
Compensation
and Administrative Law
Judges Part of the Public Employees'
Retirement System and each judge shall be given service credit in the Workers'
Compensation
and Administrative Law
Judges Part of the Public Employees'
Retirement System for service starting on the judge's date of appointment.� The
unfunded liability for the benefits provided by the transfer and enrollment of
such judges
of compensation
shall be paid by transfers from the Second
Injury Fund as provided by section 13 of P.L.2001, c.259 (C.43:15A-154) to the
Workers' Compensation Judges Part of the Public Employees' Retirement System.�
The
unfunded liability for the benefits provided by the transfer and enrollment of
such administrative law judges shall be paid by appropriations from the State
General Fund.

���� Service credit transferred
from a participant in the Defined Contribution Retirement Program under this
subsection shall 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.), or any other law, rule or regulation.

���� The actuary for the Public
Employees' Retirement System shall determine the unfunded accrued liability
resulting from the transfer and coverage of judges under this subsection
[
a. of this
section
]

in the same manner provided for the determination of the unfunded accrued
liability of the retirement system by section 24 of P.L.1954, c.84
(C.43:15A-24).� This unfunded accrued liability shall be amortized in the
manner provided by section 24 over an amortization period of 20 years.� Accrued
liability and normal contributions for workers compensation judges shall be
paid by transfers from the Second Injury Fund as provided by subsection j. of
R.S.34:15-94.� The Commissioner of Labor and Workforce Development may, with
the authorization of and appropriation by the Legislature, pay the unfunded
accrued liability
for workers compensation judges
in a lump sum or over
a period of time shorter than 20 years.
Accrued liability and normal
contributions for administrative law judges shall be paid by appropriations
from the State General Fund.

���� c.��� The value of the account
of a workers' compensation judge
or administrative law judge
who is
transferred out of the program shall be transferred from the Defined
Contribution Retirement Program to the Public Employees' Retirement System in
accordance with the relevant provisions of the federal Internal Revenue Code
and Internal Revenue Service guidance as a direct trustee-to-trustee transfer.�
The transfer shall be in accordance with a rule, method, or process that shall
not result in the transfer being deemed a distribution includible in federal
gross income for the workers' compensation judge
or administrative law judge
.

���� d.��� A workers compensation
judge who retired on or after May 20, 2021
and an administrative law judge
who retired on or after the first day of the month preceding the effective date
of P.L. , c. (pending before the Legislature as this bill)
and who was not
transferred and enrolled pursuant to this subsection shall be retroactively
transferred and enrolled in the Workers Compensation
and Administrative Law

Judges Part of the Public Employees' Retirement System pursuant to this section
and the retirement allowance calculated and paid from the date of retirement
based on that enrollment in Workers Compensation
and Administrative Law
Judges
Part of the Public Employees' Retirement System, provided the retiree complies
with any terms and conditions for that transfer, enrollment, and calculation as
required by the Division of Pensions and Benefits and the board of trustees of
the Public Employees' Retirement System.� The retroactive provision in this
subsection shall only apply to those workers compensation
and administrative
law
judges who have not received a distribution from the judge's Defined
Contribution Retirement Program account.

(cf: P.L.2021, c.140, s.3)

���� 5.��� Section 3 of P.L.2001,
c.259 (C.43:15A-144) is amended to read as follows:

���� 3.� a.� Notwithstanding the
provisions of section 25 of P.L.1954, c.84 (C.43:15A-25) to the contrary, a
separate account shall be established in the annuity savings fund for each
workers compensation and
administrative law
judge and all contributions
based on the judge's salary shall be credited to this account.� This account
shall be separate from any other account that the member may have as a result
of other public service covered by the retirement system.

���� b.��� A workers compensation
judge
and administrative law judge
shall contribute at a rate equal to
5% of the judge's salary, which contribution shall be deducted from the salary
at the time or times it is paid, and which shall be exclusive of any other
contribution required of the member for Social Security, contributory death
benefits or deductions for any other purpose.� The contribution rate shall be
5.5% of the judge's salary effective with the payroll period for which the
beginning date is closest to July 1, 2007.� The contribution rate shall be 6.5%
of the judge's salary on and after the effective date of P.L.2011, c.78, with
an additional contribution of 1% to be phased in in equal increments over a
period of seven years commencing with the first year following that effective
date.

���� c.��� A workers compensation
judge
or administrative law judge
who is enrolled on the basis of other
public service before, during, or after service as a judge
[
of
compensation
]

shall contribute for such other service at the rate of contribution required of
other members as provided by section 25.

(cf: P.L.2011, c.78, s.13)

���� 6.��� Section 4 of P.L.2001,
c.259 (C.43:15A-145) is amended to read as follows:

���� 4.� a.� Any workers
compensation judge
or administrative law judge
who has reached the age
of 70 years shall be retired forthwith on the first day of the next calendar
month.� Any other eligible workers compensation
or administrative law
judge
may be retired on the first day of the next calendar month subsequent to the
filing of a written and duly executed application with the retirement system.�
[
Such
]

In the
case of a workers compensation judge, such
application shall be accompanied
by a copy of the member's resignation which has been filed in the office of the
Director of the Division of Workers' Compensation.�
In the case of an
administrative law judge, such application shall be accompanied by a copy of
the member�s resignation which has been filed in the office of the Director of
the Office of Administrative Law.

���� b.��� Notwithstanding the
provisions of subsection a. of this section or any other law to the contrary, a
workers compensation judge who is 60 years of age or older on the effective
date of P.L.1999, c.380 shall be permitted to continue service as a judge until
attaining 10 years of service credit under the Workers Compensation
and
Administrative Law
Judges Part of the retirement system.
Notwithstanding
the provisions of subsection a. of this section, or any other law to the
contrary, an administrative law judge who is 60 years of age or older on the
effective date of P.L. , c. (pending before the Legislature as this bill) shall
be permitted to continue service as a judge until attaining 10 years of service
credit under the Workers Compensation and Administrative Law Judges Part of the
retirement system.

(cf: P.L.2001, c.259, s.4)

���� 7.��� Section 5 of P.L.2001,
c.259 (C.43:15A-146) is amended to read as follows:

���� 5.��� Any workers compensation

or administrative law
judge who has served at least 10 years as a judge
of compensation
or administrative law judge
and attained the age of 70
years shall be retired and shall receive the retirement allowance prescribed by
this section.

���� Any workers compensation judge

or administrative law judge
who has served at least 15 years as a judge
of compensation
or administrative law judge
and attained the age of 65
years, or served at least 20 years as a judge of compensation
or
administrative law judge
and attained the age of 60 years, may retire and
receive the retirement allowance prescribed by this section.� The retirement
allowance shall consist of an annuity that shall be the actuarial equivalent of
the member's accumulated deductions together with regular interest, and a
pension that, when added to the member's annuity, shall provide a retirement
allowance during the remainder of the member's life in the amount equal to
three-quarters of the member's final salary.

(cf: P.L.2001, c.259, s.5)

���� 8.��� Section 6 of P.L.2001,
c.259 (C.43:15A-147) is amended to read as follows:

���� 6.��� Any workers compensation
judge
or administrative law judge
who has:

���� a.��� served at least five
years successively as a judge of compensation
or administrative law judge

and attained the age of 65 years or more while serving in such office and has
served at least 15 years of aggregate public service, or

���� b.��� served at least five
years successively as a judge of compensation
or administrative law judge

and attained the age of 60 years or more while serving in such office and has
served at least 20 years of aggregate public service, may retire and receive
the retirement allowance prescribed by this section.� The retirement allowance
shall consist of an annuity that shall be the actuarial equivalent of the
member's accumulated deductions together with regular interest, and a pension
that, when added to the member's annuity, shall provide a retirement allowance
during the remainder of the member's life in an amount equal to one-half of the
member's final salary.

(cf: P.L.2001, c.259, s.6)

���� 9.��� Section 7 of P.L.2001,
c.259 (C.43:15A-148) is amended to read as follows:

���� 7.��� Any workers compensation
judge
or administrative law judge
who has served at least five years
successively as a judge of compensation
or administrative law judge
and
at least 25 years of aggregate public service, and who resigns or is not
reappointed before reaching age 60, may elect "early" retirement,
provided, that such election is communicated by the member to the retirement
system by filing a written application, duly attested, stating at what time
subsequent to the execution and filing thereof the member desires to be
retired.� Any member of the retirement system, eligible to retire under the
provisions of this section, shall receive a retirement allowance consisting of
an annuity which shall be the actuarial equivalent of the member's accumulated
deductions together with regular interest, and a pension which, when added to
the member's annuity, shall provide a retirement allowance during the remainder
of the member's life in the amount of 2% of the member's final salary
multiplied by the number of years of service up to 25 plus 1% of the member's
final salary multiplied by the number of years of service over 25.� Such
retirement allowance shall be reduced in accordance with a table of actuarial
equivalents recommended by the actuary and adopted by the retirement system
reflecting all months that the member lacks of being age 60. �The board of
trustees shall retire the member at the time specified or at such other time
within one month after the date so specified as the board finds advisable.

(cf: P.L.2001, c.259, s.7)

���� 10.� Section 8 of P.L.2001,
c.259 (C.43:15A-149) is amended to read as follows:

���� 8.��� Any workers compensation
judge
or administrative law judge
who has served at least five years
successively as a judge of compensation
or administrative law judge
and
at least 10 years of aggregate public service, and who resigns or is not
reappointed before reaching age 60, and not by removal for cause on charges of
misconduct or delinquency, may elect to receive:

���� a.��� all of the member's
accumulated deductions standing to the credit of the member's individual
account in the annuity savings fund as provided under subsection a. of section
41 of P.L.1954, c.84 (C.43:15A-41), or

���� b.��� a deferred retirement
allowance, beginning on the first day of the month following the member's
attainment of age 60 and the filing of an application therefor, which shall
consist of an annuity derived from the accumulated deductions standing to the
credit of the member's account in the annuity savings fund at the time of
severance from service together with regular interest, and a pension which,
when added to the annuity, shall produce a retirement allowance in the amount
of 2% of the member's final salary multiplied by the number of years of service
up to 25 plus 1% of the member's final salary multiplied by the number of years
of service over 25, provided that such inactive member may elect to receive
payments provided under� section 7 of this act, P.L.2001, c.259 (C.43:15A-148),
if the member had qualified under that section at the time of leaving service,
except that in order to avail the member of the option, the member shall
exercise such option at least one month before the effective date of retirement.

���� If such inactive member shall
die after attaining age 60 but before filing an application for retirement
benefits pursuant to this section or section 7 of this act and for which
benefits the member would have qualified, or in the event of death after retirement,
there shall be paid to such member's beneficiary the death benefits prescribed
by section 10 of this act.

���� No beneficiary shall be
eligible for a pension or survivor's benefit if the member who elected to
receive a deferred pension shall die before attaining age 60.� Upon receipt of
the proper proofs of death, the beneficiary of a member who elects to receive a
deferred retirement allowance shall be paid the member's accumulated deductions
at the time of death together with regular interest.

���� Any member who, having elected
to receive a deferred pension or deferred retirement allowance, again becomes a
member while under the age of 60, shall thereupon be reenrolled.� The member
shall be credited with all service as a member standing to the member's credit
at the time of the member's election to receive a deferred pension or deferred
retirement allowance.

(cf: P.L.2001, c.259, s.8)

���� 11.� Section 9 of P.L.2001,
c.259 (C.43:15A-150) is amended to read as follows:

���� 9.� a.� Upon the receipt of
proper proofs of the death in active service of a workers compensation
or
administrative law
judge member of the retirement system, there shall be
paid to the member's widow a survivor's benefit of 25% of final salary for the
use of the widow, to continue during widowhood, plus 10% of final salary
payable to one surviving child or plus 15% of final salary to two or more
surviving children; if there is no surviving widow or in case the widow dies or
remarries, 15% of final salary shall be payable to one surviving child, 20% of
final salary to two surviving children in equal shares and if there are three
or more children, 30% of final salary shall be payable to such children in
equal shares.� If there is no surviving widow or child, 20% of final salary
shall be payable to one surviving parent or 30% of final salary shall be
payable to two surviving parents in equal shares.

���� b.��� In addition to the
benefits payable under subsection a. of this section, there shall also be paid
in one sum to the member's beneficiary an amount equal to one and one-half
times the final salary received by the member.

(cf: P.L.2001, c.259, s.9)

���� 12.� Section 10 of P.L.2001,
c.259 (C.43:15A-151) is amended to read as follows:

���� 10.� a.� Upon the receipt of
proper proofs of the death of a workers compensation judge
or administrative
law judge
who has retired on a pension or retirement allowance based on age
and service, or pursuant to section 7 of this act, P.L.2001, c.259
(C.43:15A-148), there shall be paid to the member's beneficiary, an amount
equal to one-fourth of the final salary received by the member.

���� b.��� Upon the receipt of
proper proofs of the death of a member who has retired on a disability pension
or retirement allowance, there shall be paid to the member's beneficiary, an
amount equal to one and one-half times the final salary received by the member
if such death occurs before the member shall have attained 60 years of age but
if such death occurs thereafter, an amount equal to one-fourth of the final
salary received by the member.

(cf: P.L.2001, c.259, s.10)

���� 13.� Section 11 of P.L.2001,
c.259 (C.43:15A-152) is amended to read as follows:

���� 11.� a.� Any workers
compensation judge
or administrative law judge
who wishes to receive
credit for previous service as a judge of compensation
or administrative law
judge
or in an office, position, or employment of this State or of a
county, municipality, board of education, or public agency of this State, shall
file an application therefor with the board of trustees and pay into the
annuity savings fund the amount required by applying the factor, supplied by
the actuary, as being applicable to the judge's age at� the time of purchase
and the type of service to be purchased, to the member's salary at that time.�
Such 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 to
be determined by the board of trustees.

���� In the case of any judge
coming under the provisions of this section, full pension credit for the period
of employment for which arrears are being paid shall be given upon the payment
of at least one-half the total arrearage obligation and the completion of one
year of membership and the making of such arrears payments, except that in the
case of retirement, the total membership credit for such service shall be in
direct proportion as the amount paid bears to the total amount of arrearage
obligation.

���� b.��� The State shall pay to
the retirement system the employer's accrued liability obligation on behalf of
such judge purchasing prior service credit.

(cf: P.L.2001, c.259, s.11)

���� 14.� Section 12 of P.L.2001,
c.259 (C.43:15A-153) is amended to read as follows:

���� 12.� a.� A workers
compensation judge
or administrative law judge
� making contributions
pursuant to the provisions of this act,� P.L.2001, c.259 (C.43:15A-142 et
seq.), and who is not eligible for any benefits under the Workers Compensation
and
Administrative Law
Judges Part, may, upon termination of such service as a
judge of compensation
or administrative law judge
, elect to receive the
return of the judge's accumulated contributions in accordance with the
provisions of subsection a. of section 41 of P.L.1954, c.84 (C. 43:15A-41).� If
a workers compensation judge
or administrative law judge
is a member of
the retirement system on the basis of other public service, no application for
a return of contributions shall be approved until the judge has terminated all
service covered by the system and makes application for a return of all
contributions made to the retirement system. If all or any part of a member's
service as a workers compensation judge
or administrative law judge
is
applied toward qualifying for benefits under any other provision of P.L.1954,
c.84 to which this act, P.L.2001, c.259 (C.43:15A-142 et seq.), is a
supplement, no return of contributions made on the basis of the workers
compensation judge
or administrative law judge
salary shall be approved,
and in that event, service established as a workers compensation judge
or
administrative law judge
and salary pertaining thereto shall be credited in
the same manner as all other service and salary covered by the retirement
system.

���� b.��� At the time of
retirement, a member enrolled on the basis of service as a judge of
compensation
or administrative law judge
as well as other public service
shall be permitted to elect the largest possible retirement allowance, if the
member qualifies for benefits under both the provisions of this act and the act
to which this is a supplement.� An application for a return of contributions
made on the basis of such other public service not used for the calculation of
a retirement allowance or to qualify for State payment for health care benefits
in retirement may be approved.

���� c.��� A workers compensation
judge
or administrative law judge
electing to receive a retirement
allowance under the Workers Compensation
and Administrative Law
Judges
Part shall be ineligible to receive a retirement allowance or pension for the
same service under any other law of the State.

(cf: P.L.2001, c.259, s.12)

���� 15.� Section 13 of P.L.2001,
c.259 (C.43:15A-154) is amended to read as follows:

���� 13.� The actuary for the
Public Employees' Retirement System shall determine the unfunded accrued
liability for the Workers Compensation
and Administrative Law
Judges
Part of the retirement system and the benefits provided for workers
compensation
and administrative law
judges under that part in the same
manner provided for the determination of the unfunded accrued liability of the
retirement system by section 24 of P.L.1954, c.84 (C.43:15A-24).� This unfunded
accrued liability shall be amortized in the manner provided by section 24 over
an amortization period of 30 years.� Accrued liability and normal contributions
for workers compensation judges shall be paid by transfers from the Second
Injury Fund as provided by subsection j. of R.S.34:15-94.� The Commissioner of
Labor may, with the authorization of and appropriation by the Legislature, pay
this unfunded accrued liability in a lump sum or over a period of time shorter
than 30 years.
Accrued liability and normal contributions for administrative
law judges shall be paid by appropriations from the State General Fund.

(cf: P.L.2001, c.259, s.13)

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

STATEMENT

���� This bill requires the
enrollment in the Workers Compensation Judges Part of the Public Employees�
Retirement System (PERS) of Administrative Law Judges of the Office of
Administrative Law, as a condition of employment for service as an
administrative law judge for each judge enrolled after the effective date of
the bill.

���� Currently, administrative law
judges are enrolled in the Defined Contribution Retirement Program (DCRP).�
Administrative law judges will be subject to and governed by the laws and
regulations of the Workers� Compensation Judges Part which was established in
2001 and reopened in 2021.

���� An administrative law judge
who is currently a participant in the DCRP will be transferred out of the
program to the Workers� Compensation and Administrative Law Judges Part of PERS
within 90 days following the bill�s effective date.� An administrative law
judge who is currently a participant in PERS will be transferred into the
Workers� Compensation and Administrative Law Judges Part of PERS within 90 days
following the bill�s effective date.

���� The account in the DCRP for
each judge will be transferred and each judge will be given service credit for
service during participation in the program of administrative law judges.� The
unfunded liability for the benefits provided by the transfer will be paid by
appropriations from the State General Fund.