Extends membership in TPAF to 15 years after discontinuance of service.

A4982

ASSEMBLY, No. 4982

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 7, 2026

Sponsored by:

Assemblyman� ALEX SAUICKIE

District 12 (Burlington, Middlesex, Monmouth and Ocean)

SYNOPSIS

���� Extends membership in TPAF to 15 years after
discontinuance of service.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning the return to service of members of the
Teachers� Pension and Annuity Fund 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:66-7 is
amended to read as follows:

���� 18A:66-7.� Membership of any
person shall cease:

���� (a)�� if, except as provided
in N.J.S.18A:66-8, he shall discontinue his service for more than
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consecutive years;

���� (b)�� upon the withdrawal by a
member of his accumulated deductions as provided in this article;

���� (c)�� upon resignation and
election to receive, in lieu of the return of his accumulated deductions, the
benefits provided in N.J.S.18A:66-36 and N.J.S.18A:66-37;

���� (d)�� upon retirement;

���� (e)�� at death;

���� but not otherwise except as
provided in this article.

���� The pension fund shall send
written notice in care of the last employer of a member at least 60 days in
advance of the date on which his inactive membership shall expire as provided
in subsection (a) of this section.

(cf: P.L.2025, c.147, s.1)

���� 2.��� N.J.S.18A:66-15 is
amended to read as follows:

���� 18A:66-15. In computing for
retirement or for purposes of resignation or separation from service under
N.J.S.18A:66-36 and N.J.S.18A:66-37 the total service of a member about to be
retired, the retirement system shall credit him with all service rendered by
him since he last became a member and, in addition, with all the service to
which he is entitled and with no other service.� Except as otherwise provided
in this article, such service credit shall be final and conclusive for
retirement purposes, or for purposes of resignation under N.J.S.18A:66-36 and
N.J.S.18A:66-37, unless the member shall discontinue his service for more than
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consecutive years.� In the case of a member for whom compensation is defined in
paragraph (2) of subsection d. of N.J.S.18A:66-2, 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 of trustees shall fix and determine
by appropriate rules and regulations how much service in any year shall equal a
year of service and part of a year of service.� Not more than one year shall be
credited for all service in a calendar year.

(cf: P.L.2025, c.147, s.3)

���� 3.��� N.J.S.18A:66-36 is
amended to read as follows:

���� 18A:66-36.� Should a member of
the Teachers' Pension and Annuity Fund, after having completed 10 years of
service, be separated voluntarily or involuntarily from the service, before
reaching service retirement age, and not by removal for conduct unbecoming a
teacher or other just cause under the provisions of N.J.S.18A:28-4 to
N.J.S.18A:28-5 and N.J.S.18A:28-9 to N.J.S.18A:28-13 inclusive, such person may
elect to receive, in lieu of the payment provided in N.J.S.18A:66-34:

���� a.���� The payments provided
for in N.J.S.18A:66-37, if he so qualified under said section; or

���� b.��� A deferred retirement
allowance beginning at age 60, or for a person who becomes a member of the
retirement system on or after the effective date of P.L.2008, c.89 beginning at
age 62, which shall be made up of an annuity derived from the member's accumulated
deductions at the time of his severance from the service, and a pension in the
amount which, when added to the member's annuity, will provide a total
retirement allowance of 1/64 of final compensation for each year of service
credited as Class A service and 1/55 of final compensation for each year of
service credited as class B service or for a person who becomes a member of the
retirement system on or after the effective date of P.L.2010, c.1, 1/60 of
final compensation for each year of service credited as class B service,
calculated in accordance with N.J.S.18A:66-44, with optional privileges
provided for in N.J.S.18A:66-47 if he exercises such optional privilege at
least 30 days before his attainment of the normal retirement age, provided that
such election is communicated by such member to the retirement system in
writing stating at what time subsequent to the execution and filing thereof he
desires to be retired and provided, further, that such member may later elect:
(1) to receive the payments provided for in N.J.S.18A:66-37, if he had
qualified under that section at the time of leaving service, except that in
order to avail himself of the optional privileges pursuant to N.J.S.18A:66-47,
he must exercise such optional privilege at least 30 days before the effective
date of his retirement; or (2) to withdraw his accumulated deductions with
interest as provided in N.J.S.18A:66-34.� If such member shall die before
attaining service retirement age, then his accumulated deductions, plus regular
interest after January 1, 1956, shall be paid in accordance with
N.J.S.18A:66-38, and, in addition, if such member shall die after attaining
service retirement age and has not withdrawn his accumulated deductions, an
amount equal to 3/16 of the compensation upon which contributions by the member
to the annuity savings fund were based in the last year of creditable service
shall be paid to such member's beneficiary.

���� Any member who, having elected
to receive a deferred retirement allowance, again becomes an employee covered
by the retirement system while under the age of 60 or, if that person became a
member of the retirement system on or after the effective date of P.L.2008,
c.89, while under the age of 62, shall thereupon be reenrolled.� If he had
discontinued his service for more than
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consecutive years, subsequent contributions shall be at a rate applicable to
the age resulting from the subtraction of his years of creditable service at
the time of his last discontinuance of contributing membership from his age at
the time of his return to service.� He shall be credited with all service as a
member standing to his credit at the time of his election to receive a deferred
retirement allowance.

(cf: P.L.2025, c.147, s.4)

���� 4.��� Section 7 of P.L.1969,
c.242 (C.18A:66-173) is amended to read as follows:

���� 7. (a) When a member of the
Teachers' Pension and Annuity Fund or the Public Employees' Retirement System
or the Police and Firemen's Retirement System elects to transfer to an
alternate benefit program by filing the proper application form declaring his
election to participate in such alternate benefit program, the respective
retirement system shall transfer the amount of his accumulated deductions as of
the date of transfer to his individual account in the program.

���� (b)�� There shall also be
transferred from the contingent reserve fund or the pension fund of the
Teachers' Pension and Annuity Fund or the Public Employees' Retirement System
or the Police and Firemen's Retirement System or from the Group Annuity Plan to
the individual's account in the alternate benefit program, the pension reserve
required as of the date of his transfer to provide a pension for each year of
service credited to the account of the member as set forth in N.J.S.18A:66-36
or N.J.S.18A:66-44 or as set forth in section 38 or section 48 of P.L.1954,
c.84 as such sections have been amended and supplemented as of July 1, 1969
(C.43:15A-38, C.43:15A-48) or as set forth in section 17 of P.L.1964, c.241
(C.43:16A-11.2) or section 5 of P.L.1944, c.255 (C.43:16A-5) or for each year
of service credited under the Group Annuity Plan. Such transfer from the
contingent reserve fund or the pension fund of the Teachers' Pension and
Annuity Fund or the Public Employees' Retirement System or the Police and
Firemen's Retirement System or the Group Annuity Plan shall be made at the time
of the member's transfer to the alternate benefit program in the case of any
such member who has then met the eligibility requirements for a pension under
the aforementioned N.J.S.18A:66-36, or N.J.S.18A:66-44, or section 38 or
section 48 of P.L.1954, c.84 (C.43:15A-38, C.43:15A-48) or section 17 of
P.L.1964, c.241 (C.43:16A-11.2) or section 5 of P.L.1944, c.255 (C.43:16A-5) or
the Group Annuity Plan.� In the case of any member who elects to participate in
the alternate benefit program who has not then met the eligibility requirements
for a pension under N.J.S.18A:66-36 or N.J.S.18A:66-44, or under section 38 or
section 48 of P.L.1954, c.84 (C.43:15A-38, C.43:15A-48) or section 17 of P.L.1964,
c.241 (C.43:16A-11.2) or section 5 of P.L.1944, c.255 (C.43:16A-5) or under the
Group Annuity Plan, the transfer from the contingent reserve fund or the
pension fund of the and Annuity Fund or the Public Employees' Retirement System
or the Police and Firemen's Retirement System or the Group Annuity Plan shall
be effected at the time such requirements have been met, taking into account
for the purpose of such eligibility requirement his years of membership service
at the time of his election and his subsequent years of service as a full-time
member of the faculty of Rutgers, The State University, the New Jersey
Institute of Technology, Rowan University, Montclair State University, Kean
University, or the State or county colleges or as an eligible employee of the
Department of Higher Education, or at the time he shall have 10 years of credit
for New Jersey service and becomes physically incapacitated for the performance
of duty if he had been a member of the Teachers' Pension and Annuity Fund or
the Public Employees' Retirement System or the Police and Firemen's Retirement
System as of the date of transfer.

���� The annuity to be used in
determining the amount of pension is the actuarial equivalent of the member's
accumulated deductions transferred from the Teachers' Pension and Annuity Fund
or the Public Employees' Retirement System or the Police and Firemen's Retirement
System to the date the member attains 60 years of age, if subsequent to the
date of election. The amount of pension is that established by formula within
N.J.S.18A:66-44 or section 48 of P.L.1954, c.84 as such sections have been
amended and supplemented as of July 1, 1969 (C.43:15A-48) or section 5 of
P.L.1944, c.255 (C.43:16A-5) or under the Group Annuity Plan, and changes to
N.J.S.18A:66-44 or section 48 of P.L.1954, c.84 (C.43:15A-48) or section 5 of
P.L.1944, c.255 (C.43:16A-5) enacted subsequent to this act or the Group
Annuity Plan shall have no application to the provisions of this act.

���� In the event that the
eligibility requirement under N.J.S.18A:66-36 or under section 38 of P.L.1954,
c.84 (C.43:15A-38) or section 17 of P.L.1964, c.241 (C.43:16A-11.2) or under
the Group Annuity Plan is changed at some future date to permit members to become
eligible for such benefit prior to the completion of 15 years of service, the
transfer of the reserve from the contingent reserve fund or the pension fund of
the Teachers' Pension and Annuity Fund or the Public Employees' Retirement
System or the Police and Firemen's Retirement System or from the Group Annuity
Plan shall be effective as of the date the member who had elected the alternate
benefit program meets the amended eligibility requirement or the effective date
of the amendment, whichever is later.

���� In the event an option is
available with respect to the distribution of employee and employer
contributions between fixed and variable annuities under the alternate benefit
program, the employee shall have the right to determine the percentage
distribution of these funds, subject to any limitations imposed by the
designated insurer or insurers.

���� (c)�� No transfer of pension
reserves shall be made pursuant to this section where more than
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consecutive years elapse in which no employer contributions to an alternate
benefit program are required.

(cf: P.L.2025, c.147, s.5)

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

STATEMENT

���� This bill extends the length
of time a member of the Teachers� Pension and Annuity Fund (TPAF) can maintain
their membership and member tier in the TPAF following a period of
discontinuance.� Under current law, membership in the TPAF ceases if an individual
discontinues service for more than 10 years.� This bill extends the period of
discontinuance to 15 years.