ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 3323

STATE OF NEW JERSEY

DATED:  JUNE 24, 2024

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 3323.

      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.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) estimates that revising the definition of compensation for members of the Teachers’ Pension and Annuity Fund (TPAF) to include pay for performing extracurricular duties beyond the regular school day or the regular school year will result in indeterminate expenditure increases to the State for local boards of education that separate compensation for the performance of extracurricular duties from the regular contractual salary of employees.

      The number of such boards of education, the number of impacted members, and the additional remuneration paid to such members, as commonly determined through a collective negotiations agreement between the employee representative and the local board of education, will determine the expenditure increase to the State to pay the full cost of the employer contribution owed to the Teachers’ Pension and Annuity Fund for the members by law.