Allows certain members of PFRS to serve until age 70 upon approval by municipal governing body.

S3589

SENATE, No. 3589

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Senator� JAMES BEACH

District 6 (Burlington and Camden)

SYNOPSIS

���� Allows certain members of PFRS to serve until age 70
upon approval by municipal governing body.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

extending the mandatory retirement age in the Police and Firemen's Retirement
System of New Jersey in certain circumstances and amending P.L.1944, c.255.

����
Be It Enacted

by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 5 of P.L.1944,
c.255 (C.43:16A-5) is amended to read as follows:

���� 5.� (1) Any member in service
who has attained age 55 years may retire on a service retirement allowance upon
filing a written and duly executed application to the retirement system,
setting forth at what time, not less than one month subsequent to the filing
thereof, he desires to be retired.� Any member in service who attains age 65
years shall be retired on a service retirement allowance forthwith on the first
day of the next calendar month, except that a member hired prior to January 1,
1987 may remain a member of the system until the member attains age 68 years or
25 years of creditable service, whichever comes first
, and a member who
holds employment in a municipal law enforcement unit in an administrative
position may remain a member of the system until the member attains age 70
years if the member is retained in service by the governing body of the
municipality and written notice of that decision is provided to the board of
trustees prior to the attainment by the member of age 65 years
.

���� (2) Upon retirement for
service a member shall receive a service retirement allowance which shall
consist of:

���� (a) An annuity which shall be
the actuarial equivalent of his aggregate contributions and

���� (b) A pension in the amount
which, when added to the member's annuity, will provide a total retirement
allowance of one-sixtieth of his average final compensation multiplied by the
number of years of his creditable service, or 2% of his average final compensation
multiplied by the number of years of his creditable service up to 30 plus 1% of
his average final compensation multiplied by the number of years of creditable
service over 30, or 50% of his final compensation if the member has established
20 or more years of creditable service, whichever is greater.

���� (3) (a) Any member of the
retirement system as of the effective date of P.L.1999, c.428 who has 20 or
more years of creditable service at the time of retirement shall be entitled to
receive a retirement allowance equal to 50% of the member's final compensation
plus, in the case of a member required to retire pursuant to the provisions of
subsection (1) of this section, 3% of final compensation multiplied by the
number of years of creditable service over 20 but not over 25.

���� (b) Any member of the
retirement system who was enrolled prior to the effective date of P.L.2021,
c.52 and who is a member on that effective date may retire on or after the
effective date of P.L.2021, c.52 but no later than the first day of the 61st
month following that effective date on a service retirement allowance,
regardless of age, upon attaining 20 or more years of creditable service and
shall be entitled to receive a service retirement allowance equal to 50% of the
member's final compensation.

���� (4) Upon the receipt of proper
proofs of the death of a member who has retired on a service retirement
allowance, there shall be paid to his beneficiary an amount equal to one-half
of the compensation upon which contributions by the member to the annuity
savings fund were based in the last year of creditable service.

(cf: P.L.2023, c.92, s.1)

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

STATEMENT

���� Under current law, a member of
the Police and Firemen's Retirement System of New Jersey (PFRS) must retire
upon reaching 65 years of age.� This bill would allow a member holding an
administrative position to stay until age 70 if the governing body of the
municipality retains the member in service and if such a decision is
communicated in writing to the PFRS board of trustees before the member turns
65.� For a primarily administrative position, the physical rigors of the job
are less than for other police positions, and longevity in the position is an
asset, not a liability. Therefore, it is appropriate to give the governing body
of the municipality the discretion to allow an effective employee to continue
in service beyond the current mandatory retirement age.�