LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 305
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JANUARY 13, 2025
SUMMARY
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Synopsis: |
Requires Administrative Law Judges to be enrolled in Workers Compensation Judges Part of PERS. |
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Type of Impact: |
Annual State expenditure increase to the General Fund. |
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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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Annual State Expenditure Increase |
$5.5 million |
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BILL DESCRIPTION
This bill requires Administrative Law Judges to be enrolled in the Workers Compensation Part of the Public Employees’ Retirement System. Under the bill, the unfunded liability for the benefits granted to members transferred into the Workers Compensation Part of the retirement system will be paid by appropriations from the General Fund.
Current law requires any Administrative Law Judge appointed on or after July 1, 2007 who was not enrolled in the Public Employees’ Retirement System to be enrolled in the Defined Contribution Retirement Program. Prior to July 1, 2007, Administrative Law Judges were enrolled in the Public Employees’ Retirement System. Current law also permits Administrative Law Judges who were enrolled in a different State-administered retirement system prior to July 1, 2007 to transfer into the regular part of the Public Employees’ Retirement System.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS anticipates that requiring Administrative Law Judges to be enrolled in the Workers Compensation Judges Part of the Public Employees’ Retirement System will increase annual State expenditures by a total of $5.5 million. The transfer of Administrative Law Judges from the regular part of the Public Employees’ Retirement System to the Workers Compensation Judges Part accounts for approximately $0.5 million of the increase. The transfer of Administrative Law Judges from the Defined Contribution Retirement Program to the Workers Compensation Judges Part accounts for the remaining $5 million increase.
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Annual Cost Increase |
Total |
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Normal Cost |
Unfunded Accrued Liability |
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Transfer ALJs in PERS to WCJ Part of PERS |
$ - |
$ 465,235 |
$ 465,235 |
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Transfer ALJs in DCRP to WCJ Part of PERS |
$ 128,251 |
$ 4,863,735 |
$ 4,991,986 |
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Total |
$ 128,251 |
$ 5,328,970 |
$ 5,457,221 |
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Section: |
State Government |
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Analyst: |
Associate 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.).