Requires pay for extracurricular activities to be included in compensation for TPAF purposes.

A5031

ASSEMBLY, No. 5031

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 11, 2026

Sponsored by:

Assemblyman� ERIK K. SIMONSEN

District 1 (Atlantic, Cape May and Cumberland)

SYNOPSIS

���� Requires pay for extracurricular activities to be
included in compensation for TPAF purposes.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning compensation for purposes of the
Teachers� Pension and Annuity Fund and amending N.J.S.18A:66-2.

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

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

���� 18A:66-2.� As used in this
article:

���� a.���� "Accumulated
deductions" means the sum of all the amounts, deducted from the
compensation of a member or contributed by or in behalf of the member,
including interest credited to January 1, 1956, standing to the credit of the
member's individual account in the annuity savings fund.

���� b.��� "Annuity"
means payments for life derived from the accumulated deductions of a member as
provided in this article.

���� c.���� "Beneficiary"
means any person receiving a retirement allowance or other benefit as provided
in this article.

���� d.��� (1)
"Compensation" means the contractual salary, for services as a
teacher as defined in this article, which is in accordance with established
salary policies of the member's employer for all employees in the same
position,
and, commencing on the effective date of P.L.�� , c.���� (pending
before the Legislature as this bill), shall include additional remuneration for
performing extracurricular duties beyond the regular school day or the regular
school year,
but shall not include individual salary adjustments which are
granted primarily in anticipation of the member's retirement or additional
remuneration for performing temporary
[
or
extracurricular
]

duties beyond the regular school day or the regular school year. �
Extracurricular
duties shall include, but are not limited to, preparation for and involvement
in public performances, contests, athletic competitions, demonstrations,
displays, and club activities.

���� (2)�� In the case of a person
who becomes a member of the retirement system on or after July 1, 2007,
"compensation" means the amount of the contractual salary equivalent
to the annual maximum wage contribution base for Social Security, pursuant to the
Federal Insurance Contributions Act, for services as a teacher as defined in
this article, which is in accordance with established salary policies of the
member's employer for all employees in the same position
, and, commencing on
the effective date of P.L. , c. (pending before
the Legislature as this bill), shall include additional remuneration for
performing extracurricular duties beyond the regular school day or the regular
school year,
but shall not include individual salary adjustments which are
granted primarily in anticipation of the member's retirement or additional
remuneration for performing temporary
[
or
extracurricular
]

duties beyond the regular school day or the regular school year.��
Extracurricular
duties shall include, but are not limited to, preparation for and involvement
in public performances, contests, athletic competitions, demonstrations,
displays, and club activities.

���� This paragraph shall not apply
to a person who at the time of enrollment in the retirement system on or after
July 1, 2007 transfers service credit from another State-administered
retirement system pursuant to N.J.S.18A:66-15.1, but shall apply to a former
member of the retirement system who has been granted a retirement allowance and
is reenrolled in the retirement system on or after July 1, 2007 pursuant to
N.J.S.18A:66-53.2 after becoming employed again in a position that makes the
person eligible to be a member of the retirement system.

���� For the period of July 1, 2009
through June 30, 2011, "contractual salary" for State employees shall
include wage increases under a collective negotiations agreement
notwithstanding that, by amendment to that collective negotiations agreement, the
effective date of the contractual increase has been deferred.� For the purpose
of this paragraph, "State employee" means an employee in the
Executive Branch of State government of New Jersey.

���� e.���� "Employer"
means the State, the board of education or any educational institution or
agency of or within the State by which a teacher is paid.

���� f.���� (1) "Final
compensation" means the average annual compensation for which
contributions are made for the three years of creditable service in New Jersey
immediately preceding the member's retirement or death, or it shall mean the
average annual compensation for New Jersey service for which contributions are
made during any three fiscal years of his or her membership providing the
largest possible benefit to the member or the member's beneficiary.

���� (2)�� In the case of a person
who becomes a member of the retirement system on or after the effective date of
P.L.2010, c.1, "final compensation" means the average annual
compensation for which contributions are made for the five years of creditable service
in New Jersey immediately preceding the member's retirement or death, or it
shall mean the average annual compensation for New Jersey service for which
contributions are made during any five fiscal years of his or her membership
providing the largest possible benefit to the member or the member's
beneficiary.

���� g.��� "Fiscal year"
means any year commencing with July 1, and ending with June 30, next following.

���� h.��� "Pension"
means payments for life derived from appropriations made by the State or
employers to the Teachers' Pension and Annuity Fund.

���� i.���� "Annuity
reserve" means the present value of all payments to be made on account of
any annuity or benefit in lieu of an annuity, granted under the provisions of
this article, computed on the basis of such mortality tables recommended by the
actuary as the board of trustees adopts, with regular interest.

���� j.���� "Pension
reserve" means the present value of all payments to be made on account of
any pension or benefit in lieu of a pension granted to a member from the
Teachers' Pension and Annuity Fund, computed on the basis of such mortality
tables recommended by the actuary as the board of trustees adopts, with regular
interest.

���� k.��� "Present-entrant"
means any member of the Teachers' Pension and Annuity Fund who had established
status as a "present-entrant member" of said fund prior to January 1,
1956.

���� l.���� "Rate of
contribution initially certified" means the rate of contribution certified
by the retirement system in accordance with N.J.S.18A:66-29.

���� m.�� "Regular
interest" shall mean interest as determined by the State Treasurer, after
consultation with the Directors of the Divisions of Investment and Pensions,
the board of trustees and the actuary.� It shall bear a reasonable relationship
to the percentage rate of earnings on investments based on the market value of
assets but shall not exceed the assumed percentage rate of increase applied to
salaries plus 3%, provided however that the board of trustees shall not set the
average percentage rate of increase applied to salaries below 6%.

���� n.��� "Retirement
allowance" means the pension plus the annuity.

���� o.��� "School
service" means any service as a "teacher" as defined in this
section.

���� p.��� "Teacher"
means any regular teacher, special teacher, helping teacher, teacher clerk,
principal, vice-principal, supervisor, supervising principal, director,
superintendent, city superintendent, assistant city superintendent, county
superintendent, State Commissioner or Assistant Commissioner of Education,
members of the State Department of Education who are certificated, unclassified
professional staff and other members of the teaching or professional staff of
any class, public school, renaissance school project established pursuant to
P.L.2011, c.176 (C.18A:36C-1 et seq.) upon commencement of
employment, high school, normal school, model school, training school,
vocational school, truant reformatory school, or parental school, and of any and
all classes or schools within the State conducted under the order and
superintendence, and wholly or partly at the expense of the State Board of
Education, of a duly elected or appointed board of education, board of school
directors, or board of trustees of the State or of any school district or
normal school district thereof, and any persons under contract or engagement to
perform one or more of these functions.� It shall also mean any person who
serves, while on an approved leave of absence from regular duties as a teacher,
as an officer of a local, county or State labor organization which represents,
or is affiliated with an organization which represents, teachers as defined in
this subsection.� No person shall be deemed a teacher within the meaning of
this article who is a substitute teacher. In all cases of doubt the board of
trustees shall determine whether any person is a teacher as defined in this
article.

���� q.��� "Teachers' Pension
and Annuity Fund," hereinafter referred to as the "retirement
system" or "system," is the corporate name of the arrangement
for the payment of retirement allowances and other benefits under the
provisions of this article, including the several funds placed under said
system.� By that name all its business shall be transacted, its funds invested,
warrants for money drawn, and payments made and all of its cash and securities
and other property held.

���� r.���� "Veteran"
means any honorably discharged officer, soldier, sailor, airman, marine or
nurse who served in any Army, Air Force or Navy of the Allies of the United
States in World War I between July 14, 1914, and November 11, 1918, or who
served in any Army, Air Force or Navy of the Allies of the United States in
World War II, between September 1, 1939, and September 2, 1945, and who was
inducted into such service through voluntary enlistment, and was a citizen of
the United States at the time of such enlistment, and who did not, during or by
reason of such service, renounce or lose United States citizenship, and any
officer, soldier, sailor, marine, airman, nurse or army field clerk who has
served in the active military or naval service of the United States and has or
shall be discharged or released therefrom under conditions other than
dishonorable, in any of the following wars, uprisings, insurrections,
expeditions or emergencies, and who has presented to the retirement system
evidence of such record of service in form and content satisfactory to said
retirement system:

���� (1)�� The Indian wars and
uprisings during any of the periods recognized by the War Department of the
United States as periods of active hostility;

���� (2)�� The Spanish-American War
between April 20, 1898, and April 11, 1899;

���� (3)�� The Philippine
insurrections and expeditions during the periods recognized by the War
Department of the United States as of active hostility from February 4, 1899,
to the end of 1913;

���� (4)�� The Peking relief
expedition between June 20, 1900, and May 27, 1902;

���� (5)�� The army of Cuban
occupation between July 18, 1898, and May 20, 1902;

���� (6)�� The army of Cuban
pacification between October 6, 1906, and April 1, 1909;

���� (7)�� The Mexican punitive
expedition between March 14, 1916, and February 7, 1917;

���� (8)�� The Mexican border
patrol, having actually participated in engagements against Mexicans between
April 12, 1911, and June 16, 1919;

���� (9)�� World War I, between
April 6, 1917, and November 11, 1918;

���� (10)� World War II, between
September 16, 1940, and December 31, 1946, who shall have served at least 90
days in such active service, exclusive of any period of assignment (1) for a
course of education or training under the Army Specialized Training Program or
the Navy College Training Program, which course was a continuation of a
civilian course and was pursued to completion, or (2) as a cadet or midshipman
at one of the service academies, any part of which 90 days was served between
said dates; provided that any person receiving an actual service-incurred
injury or disability shall be classed as a veteran, whether or not that person
has completed the 90-day service as herein provided;

���� (11)� Korean conflict on or
after June 23, 1950, and on or prior to January 31, 1955, who shall have served
at least 90 days in such active service, exclusive of any period of assignment
(1) for a course of education or training under the Army Specialized Training
Program or the Navy College Training Program, which course was a continuation
of a civilian course and was pursued to completion, or (2) as a cadet or
midshipman at one of the service academies, any part of which 90 days was
served between said dates; provided that any person receiving an actual
service-incurred injury or disability shall be classed as a veteran, whether or
not that person has completed the 90-day service as herein provided; and
provided further that any member classed as a veteran pursuant to this
subsection prior to August 1, 1966, shall continue to be classed as a veteran,
whether or not that person completed the 90-day service between said dates as
herein provided;

���� (12)� Lebanon crisis, on or
after July 1, 1958, who has served in Lebanon or on board any ship actively
engaged in patrolling the territorial waters of that nation for a period,
continuous or in the aggregate, of at least 14 days commencing on or before November
1, 1958 or the date of termination of that conflict, as proclaimed by the
President of the United States or Congress, whichever date of termination is
the latest, in such active service; provided, that any person receiving an
actual service-incurred injury or disability shall be classed as a veteran
whether or not that person has completed the 14 days' service as herein
provided;

���� (13)� Vietnam conflict, on or
after December 31, 1960, and on or prior to May 7, 1975, who shall have served
at least 90 days in such active service, exclusive of any period of assignment
(1) for a course of education or training under the Army Specialized Training
Program or the Navy College Training Program, which course was a continuation
of a civilian course and was pursued to completion, or (2) as a cadet or
midshipman at one of the service academies, any part of which 90 days was
served between said dates; and exclusive of any service performed pursuant to
the provisions of section 511(d) of Title 10, United States Code, pursuant to
an enlistment in the Army National Guard or as a reserve for service in the
Army Reserve, Naval Reserve, Air Force Reserve, Marine Corps Reserve, or Coast
Guard Reserve; provided that any person receiving an actual service-incurred
injury or disability shall be classed as a veteran, whether or not that person
has completed the 90-day service as herein provided;

���� (14)� Lebanon peacekeeping
mission, on or after September 26, 1982, who has served in Lebanon or on board
any ship actively engaged in patrolling the territorial waters of that nation
for a period, continuous or in the aggregate, of at least 14 days commencing on
or before December 1, 1987 or the date of termination of that mission, as
proclaimed by the President of the United States or Congress, whichever date of
termination is the latest, in such active service; provided, that any person
receiving an actual service-incurred injury or disability shall be classed as a
veteran whether or not that person has completed the 14 days' service as herein
provided;

���� (15)� Grenada peacekeeping
mission, on or after October 23, 1983, who has served in Grenada or on board
any ship actively engaged in patrolling the territorial waters of that nation
for a period, continuous or in the aggregate, of at least 14 days commencing on
or before November 21, 1983 or the date of termination of that mission, as
proclaimed by the President of the United States or Congress, whichever date of
termination is the latest, in such active service; provided, that any person
receiving an actual service-incurred injury or disability shall be classed as a
veteran whether or not that person has completed the 14 days' service as herein
provided;

���� (16)� Panama peacekeeping
mission, on or after December 20, 1989 or the date of inception of that
mission, as proclaimed by the President of the United States or Congress,
whichever date of inception is earliest, who has served in Panama or on board
any ship actively engaged in patrolling the territorial waters of that nation
for a period, continuous or in the aggregate, of at least 14 days commencing on
or before January 31, 1990 or the date of termination of that mission, as
proclaimed by the President of the United States or Congress, whichever date of
termination is the latest, in such active service; provided, that any person
receiving an actual service-incurred injury or disability shall be classed as a
veteran whether or not that person has completed the 14 days' service as herein
provided;

���� (17)� Operation "Desert
Shield/Desert Storm" mission in the Arabian peninsula and the Persian
Gulf, on or after August 2, 1990 or the date of inception of that operation, as
proclaimed by the President of the United States or Congress, whichever date of
inception is earliest, who has served in the Arabian peninsula or on board any
ship actively engaged in patrolling the Persian Gulf for a period, continuous
or in the aggregate, of at least 14 days commencing on or before the date of
termination of that mission, as proclaimed by the President of the United
States or Congress, whichever date of termination is the latest, in such active
service; provided, that any person receiving an actual service-incurred injury
or disability shall be classed as a veteran whether or not that person has
completed the 14 days' service as herein provided;

���� (18)� Operation Northern Watch
and Operation Southern Watch, on or after August 27, 1992, or the date of
inception of that operation, as proclaimed by the President of the United
States, Congress or United States Secretary of Defense, whichever date of inception
is earliest, who served in the theater of operation, including in the Arabian
peninsula and the Persian Gulf, and in direct support of that operation for a
period, continuously or in the aggregate, of at least 14 days in such active
service, commencing on or before the date of termination of the operation, as
proclaimed by the President of the United States, Congress or United States
Secretary of Defense, whichever date of termination is latest; provided, that
any person receiving an actual service-incurred injury or disability while
engaged in such service shall be classed as a veteran whether or not that
person has completed the 14 days' service as herein provided;

���� (19)� Operation "Restore
Hope" in Somalia, on or after December 5, 1992, or the date of inception
of that operation as proclaimed by the President of the United States or
Congress, whichever date is earliest, who has served in Somalia or on board any
ship actively engaged in patrolling the territorial waters of that nation for a
period, continuously or in the aggregate, of at least 14 days in such active
service commencing on or before March 31, 1994; provided that any person
receiving an actual service-incurred injury or disability shall be classed as a
veteran whether or not that person has completed the 14-day service as herein
provided;

���� (20)� Operations "Joint
Endeavor" and "Joint Guard" in the Republic of Bosnia and
Herzegovina, on or after November 20, 1995, who served in such active service
in direct support of one or both of the operations for at least 14 days, continuously
or in the aggregate, commencing on or before June 20, 1998, and (1) was
deployed in that nation or in another area in the region, or (2) was on board a
United States naval vessel operating in the Adriatic Sea, or (3) operated in
airspace above the Republic of Bosnia and Herzegovina; provided that any person
receiving an actual service-incurred injury or disability shall be classed as a
veteran whether or not that person completed the 14-day service requirement;

���� (21)� Operation "Enduring
Freedom", on or after September 11, 2001, who served in a theater of
operation and in direct support of that operation for a period, continuously or
in the aggregate, of at least 14 days in such active service commencing on or
before the date the President of the United States or the United States
Secretary of Defense designates as the termination date of that operation;
provided, that any person receiving an actual service-incurred injury or
disability while engaged in such service shall be classed as a veteran whether
or not that person has completed the 14 days' service as herein provided; and

���� (22)��� Operation "Iraqi
Freedom", on or after the date the President of the United States or the
United States Secretary of Defense designates as the inception date of that
operation, who served in Iraq or in another area in the region in direct support
of that operation for a period, continuously or in the aggregate, of at least
14 days in such active service commencing on or before the date the President
of the United States or the United States Secretary of Defense designates as
the termination date of that operation; provided, that any person receiving an
actual service-incurred injury or disability while engaged in such service
shall be classed as a veteran whether or not that person has completed the 14
days' service as herein provided.

���� "Veteran" also means
any honorably discharged member of the American Merchant Marine who served
during World War II and is declared by the United States Department of Defense
to be eligible for federal veterans' benefits.

���� s.���� "Child" means
a deceased member's unmarried child either (a) under the age of 18 or (b) of
any age who, at the time of the member's death, is disabled because of mental
retardation 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.

���� t.� (1)� "Widower,"
for employees of the State, means the man to whom a member was married, or a
domestic partner as defined in section 3 of P.L.2003, c.246 (C.26:8A-3), at
least five years before the date of her death and to whom she continued to be
married or a domestic partner until the date of her death and who was receiving
at least one-half of his support from the member in the 12-month period
immediately preceding the member's death or the accident which was the direct
cause of the member's death.� The dependency of such a widower will be
considered terminated by marriage of, or establishment of a domestic
partnership by, the widower subsequent to the death of the member.� In the
event of the payment of an accidental death benefit, the five-year qualification
shall be waived.

���� (2)�� Subject to the
provisions of paragraph (3) of this subsection, "widower," for
employees of public employers other than the State, means the man to whom a
member was married at least five years before the date of her death and to whom
she continued to be married until the date of her death and who was receiving
at least one-half of his support from the member in the 12-month period
immediately preceding the member's death or the accident which was the direct
cause of the member's death.� The dependency of such a widower shall be
considered terminated by marriage of the widower subsequent to the death of the
member.� In the event of the payment of an accidental death benefit, the
five-year qualification shall be waived.

���� (3)�� A public employer other
than the State may adopt a resolution providing that the term
"widower" as defined in paragraph (2) of this subsection shall
include domestic partners as provided in paragraph (1) of this subsection.

���� u.� (1)� "Widow,"
for employees of the State, means the woman to whom a member was married, or a
domestic partner as defined in section 3 of P.L.2003, c.246 (C.26:8A-3), at
least five years before the date of his death and to whom he continued to be
married or a domestic partner until the date of his death and who was receiving
at least one-half of her support from the member in the 12-month period
immediately preceding the member's death or the accident which was the direct
cause of the member's death.� The dependency of such a widow will be considered
terminated by the marriage of, or establishment of a domestic partnership by,
the widow subsequent to the member's death. In the event of the payment of an
accidental death benefit, the five-year qualification shall be waived.

���� (2)�� Subject to the
provisions of paragraph (3) of this subsection, "widow," for
employees of public employers other than the State, means the woman to whom a
member was married at least five years before the date of his death and to whom
he continued to be married until the date of his death and who was receiving at
least one-half of her support from the member in the 12-month period
immediately preceding the member's death or the accident which was the direct
cause of the member's death.� The dependency of such a widow shall be
considered terminated by the marriage of the widow subsequent to the member's
death.� In the event of the payment of an accidental death benefit, the
five-year qualification shall be waived.

���� (3)�� A public employer other
than the State may adopt a resolution providing that the term
"widower" as defined in paragraph (2) of this subsection shall
include domestic partners as provided in paragraph (1) of this subsection.

���� v.��� "Parent" means
the parent of a member who was receiving at least one-half of the parent's
support from the member in the 12-month period immediately preceding the
member's death or the accident which was the direct cause of the member's
death.� The dependency of such a parent will be considered terminated by
marriage of the parent subsequent to the death of the member.

���� w.�� "Medical board"
means the board of physicians provided for in N.J.S.18A:66-56.

���� x.� (1)� "Spouse,"
for employees of the State, means the husband or wife, or domestic partner as
defined in section 3 of P.L.2003, c.246 (C.26:8A-3), of a member.

���� (2)�� Subject to the
provisions of paragraph (1) of this subsection, "spouse," for
employees of public employers other than the State, means the husband or wife
of a member.

���� (3)�� A public employer other
than the State may adopt a resolution providing that the term
"spouse" as defined in paragraph (2) of this subsection shall include
domestic partners as provided in paragraph (1) of this subsection.

(cf: P.L.2018, c.129, s.1)

���� 2.��� This act shall take
effect on the first day of the second month following enactment.

STATEMENT

���� This bill amends the
definition of compensation for purposes of the Teachers� Pension and Annuity
Fund (TPAF) to include additional pay for performing extracurricular duties
beyond the regular school day or the regular school year.� This additional pay
is currently not included in the definition of compensation for pension
purposes. �Extracurricular duties include, but are not limited to, preparation
for and involvement in public performances, contests, athletic competitions,
demonstrations, displays, and club activities.