LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
ASSEMBLY, No. 5049
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: MARCH 26, 2025
SUMMARY
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Synopsis: |
Removes certain limitations on receipt of retirement or death benefits under PFRS. |
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Type of Impact: |
Potential annual loss of interest income from undispersed pension payments – Police and Firemen’s Retirement System. |
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Agencies Affected: |
Department of the Treasury. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
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Police and Firemen’s Retirement System – potential annual loss of interest income from undispersed pension payments |
Indeterminate |
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· The Office of Legislative Services (OLS) determines that the removal of certain limitations on the receipt of retirement or death benefits under the Police and Firemen’s Retirement System may result in the system losing interest income annually from undisbursed pension payments.
· Under the bill, the Board of Trustees of the Police and Firemen’s Retirement System is no longer permitted to hold in abeyance retirement or death benefits if a member is a party to pending civil litigation. Consequently, the system will no longer earn interest income from undisbursed pension payments. The OLS is unable to quantify this potential loss to the pension system.
BILL DESCRIPTION
This bill removes certain limitations on the receipt of retirement or death benefits under the Police and Firemen’s Retirement System.
Under current regulation, the Board of Trustees of the Police and Firemen’s Retirement System is permitted to hold in abeyance retirement or death benefits to which a member of the retirement system is entitled to if the member is subject to criminal charges, dismissed from public employment due to administrative charges, or the member has pending civil litigation pertaining to the member’s employment.
The bill removes the board’s authority to hold in abeyance retirement or death benefits if a member is a party to pending civil litigation. Under the bill, the board retains the authority to hold in abeyance retirement or death benefits if a member is subject to criminal charges or dismissed from public employment due to administrative charges. The bill also codifies the board’s authority to adjust a member’s retirement or death benefits based upon the disposition of any legal proceeding to which the member was a party.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS determines that the removal of certain limitations on the receipt of retirement or death benefits under the Police and Firemen’s Retirement System may result in the system losing interest income annually from undisbursed pension payments.
Under the bill, the Board of Trustees of the Police and Firemen’s Retirement System is no longer permitted to hold in abeyance retirement or death benefits if a member is a party to pending civil litigation. Consequently, the system will no longer earn interest income from undisbursed pension payments. The OLS is unable to quantify this potential loss to the pension system because it lacks the informational basis to estimate the number of members that will be affected in a given year, the amount of the pension payments that would have otherwise remained undisbursed, and the duration of any ongoing litigation.
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Section: |
State Government |
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Analyst: |
Assistant Fiscal Analyst |
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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.).