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A5053 2R FISCAL ESTIMATE
LEGISLATIVE FISCAL ESTIMATE
[Second Reprint]
ASSEMBLY, No. 5053
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JUNE 30, 2026
SUMMARY
Synopsis:
Permits retired municipal code officials to return to
part-time employment after bona fide severance period without reenrollment in
PERS.
Type of Impact:
Potential annual local expenditure reduction.
Agencies Affected:
Certain local government units.
Office of
Legislative Services Estimate
Fiscal Impact
Local Expenditure Decrease
Indeterminate
�
The Office of Legislative Services (OLS) anticipates that
permitting retired municipal code officials to return to part-time employment
without reenrollment in the Public Employees� Retirement System under certain
conditions, and within three years after the effective date of the bill, will
result in indeterminate expenditure decreases for the affected local employer
or employers, provided that the qualified status of the retirement system can
be maintained upon the bill�s application.
�
Such decreases will result from the returning official not
incurring additional service credit upon reemployment.
�
As the OLS does not know the number of retired officials who will
return to employment under the bill�s provisions, nor the salary of such
officials or the workload or staffing needs of the respective employer, the
reduction in costs is indeterminate.
BILL DESCRIPTION
����� This bill permits retired municipal code officials to
return to part-time employment without reenrollment in the Public Employees�
Retirement System.
����� Under the bill, a former member of the Public
Employees� Retirement System who served as a municipal code official and who
has been granted a retirement allowance for any cause other than disability,
may return to employment as a municipal code official with one or more
employers within three years after the effective date of the bill, and will be
eligible to continue employment, without cancelation of the retirement and
reenrollment in the system, if: (1) the return commences more than 30 days
after the member receives written notification that the retirement is approved
by the board, or more than 30 days after the date of retirement, whichever is
later, if the employment is with a different employer, or 90 days after the
date of retirement if the employment is with the same employer; (2) the former
member had attained the service retirement age applicable to that member as of
the date of retirement; and (3) the former member is re-employed as a part-time
employee and works no more than 20 hours per week per employer.
����� The bill requires the former member�s retirement to
have been a bona fide retirement and prohibits any return to employment to be
prearranged before retirement.
FISCAL ANALYSIS
EXECUTIVE BRANCH
����� � None received.
OFFICE OF LEGISLATIVE SERVICES
����� The OLS anticipates that permitting retired municipal
code officials to return to part-time employment without reenrollment in the
Public Employees� Retirement System under certain conditions, and within three
years after the effective date of the bill, will result in indeterminate
expenditure decreases for the affected local employer or employers, provided
that the qualified status of the retirement system can be maintained upon the
bill�s application.������� � ���������
����� Such decreases will result from the returning official
not incurring additional service credit upon reemployment.
����� As the OLS does not know the number of retired
officials who will return to employment under the bill�s provisions, nor the
salary of such officials or the workload or staffing needs of the respective
employer, the reduction in costs is indeterminate.
Section:
State Government
Analyst:
Anna Harris
Associate Fiscal Analyst
Approved:
Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the
Office of Legislative Services due to the failure of the Executive Branch to
respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980,
c.67 (C.52:13B-6 et seq.).