LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 5381
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JUNE 19, 2025
SUMMARY
|
Synopsis: |
Provides for filing extension and medical documentation requirement for certain members of PERS, PFRS, and SPRS to receive accidental disability retirement allowance for participation in 9/11 World Trade Center rescue, recovery, or cleanup operations. |
|
Type of Impact: |
Annual State and local expenditure increases. |
|
Agencies Affected: |
Division of Pensions and Benefits in the Department of the Treasury; certain local governments. |
|
Office of Legislative Services Estimate |
||||
|
Fiscal Impact |
|
Annual |
|
|
|
State Expenditure Increase |
|
$86,500 to $159,000 |
|
|
|
Local Expenditure Increase |
|
$91,500 to $300,000 |
|
|
|
|
|
|||
· The Office of Legislative Services (OLS) estimates that providing a filing extension, requiring medical documentation, and allowing certain members of the Public Employees’ Retirement System, the Police and Firemen’s Retirement System, and the State Police Retirement System who participated in the 9/11 World Trade Center rescue, recovery, or cleanup operations to petition the respective board of trustees of the retirement systems for reconsideration or to resubmit the eligibility form for the presumption or recalculation granted under the bill for an accidental disability retirement benefit allowance will result in annual expenditure increases to the State of $86,500 to $159,000 and annual expenditure increases to local governments of $91,500 to $300,000 which will be allocated among all municipalities whose employees are enrolled in the Police and Firemen’s Retirement System.
· The OLS does not expect this bill to increase costs for the Public Employees’ Retirement System.
BILL DESCRIPTION
This bill provides a filing extension and establishes medical documentation requirements for certain members and retirees of the Public Employees’ Retirement System, the Police and Firemen’s Retirement System, and the State Police Retirement System to receive an accidental disability retirement allowance for participation in the 9/11 World Trade Center rescue, recovery, or cleanup operations.
Under current law, certain members and retirees of the Police and Firemen’s Retirement System, the State Police Retirement System, and the Public Employees’ Retirement System are eligible to receive an accidental disability retirement allowance for a permanent and total disability resulting from participation in 9/11 World Trade Center rescue, recovery, or cleanup operations. In order to be eligible, the member or retiree must have filed notice of service during certain dates and at certain locations within two years of enactment of P.L.2019, c.157. Retirees must also have retired on a service retirement allowance or an ordinary disability retirement allowance.
This bill extends the time period during which a member or retiree must file a written and sworn statement with their respective retirement system to be eligible for the benefit to two years after the effective date of this bill, and permits the board of trustees of the retirement system to approve additional extensions in two-year increments thereafter. The bill also grants retirees who previously filed an eligibility registration form with their respective retirement system and who were denied because they filed outside the registration period the ability to petition the board of trustees of the respective retirement system for reconsideration or to resubmit the previously submitted eligibility registration form to the board for the presumption or recalculation granted under the bill.
In addition, the bill provides that members who retired with a special retirement allowance or accidental disability retirement allowance may file for a recalculation to an accidental disability retirement allowance in connection with a disability incurred due to participation in the 9/11 World Trade Center rescue, recovery, or cleanup operations.
Under current law, in order to be eligible for the benefit, the member or retiree must have successfully passed a physical examination for entry into public service, which failed to disclose evidence of the qualifying condition or impairment of health that formed the basis for the disability. This bill allows the member or retiree to present sufficient evidence of one or more medical examinations or results, performed within a reasonable period of time before or after entry into public service, which failed to disclose evidence of the qualifying condition or impairment of health that formed the basis for the disability as an alternative for proof of eligibility.
This bill also requires the board of trustees of each retirement system to notify all members and retirants in the retirement system of the enactment of this bill within 60 days of enactment by letter via certified mail. The notice must communicate, in an easily understood manner, the provisions of this bill, including the class of members and retirees impacted, the filing requirements, and the prescribed time limits.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS determines that the bill will result in annual cost increases to the State of $86,500 to $159,000 and annual cost increases of $91,500 to $300,000 allocated among all municipalities whose employers are enrolled in the Police and Firemen’s Retirement System. Some municipalities will have a greater cost than others depending on the number of affected employees.
|
Annual State and Local Government Cost Increase |
||
|
|
Minimum |
Maximum |
|
State |
||
|
Accidental Disability |
$86,507 |
$158,929 |
|
Local Government |
||
|
Accidental Disability |
$91,531 |
$299,555 |
|
Total |
$178,038 |
$458,485 |
The OLS estimates that providing a filing extension, requiring medical documentation, and allowing certain members of the Public Employees’ Retirement System, the Police and Firemen’s Retirement System, and the State Police Retirement System who participated in the 9/11 World Trade Center rescue, recovery, or cleanup operations to petition the respective board of trustees of the retirement systems for reconsideration or to resubmit the eligibility form for the presumption or recalculation granted under the bill for accidental disability retirement benefits will result in annual expenditure increases to the State of $86,500 to $159,000 and annual expenditure increases to local governments of $91,500 to $300,000 which will be allocated among all municipalities whose employees are enrolled in the Police and Firemen’s Retirement System. These amounts are based on the assumption that most applicants who are approved for an accidental disability retirement allowance or a recalculation to an accidental disability retirement allowance will gain a two percentage point increase in their annual pension allowance.
The table below displays the aforementioned annual cost increases for the State and local government portion, which will be allocated among all municipalities, broken out by retirement system. The OLS does not expect this bill to increase costs for the Public Employees’ Retirement System.
|
Annual Cost Increase by Retirement System |
||
|
|
Minimum |
Maximum |
|
Police and Firemen’s Retirement System |
||
|
Accidental Disability |
$106,431 |
$348,320 |
|
State Police Retirement System |
||
|
Accidental Disability |
$71,607 |
$110,164 |
|
Total |
$178,038 |
$458,485 |
Additionally, the OLS determines that the Division of Pensions and Benefits will experience an increase in administrative costs due to the required notification to all members and retirants in the retirement systems by letter via certified mail.
|
Section: |
State Government |
|
Analyst: |
Assistant 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.).