ASSEMBLY STATE AND LOCAL GOVERNMENT COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 871

with committee amendments

STATE OF NEW JERSEY

DATED:  SEPTEMBER 19, 2024

      The Assembly State and Local Government Committee reports favorably and with committee amendments Senate Bill No. 871 (1R).

      As amended, this bill establishes eligibility in the Public Employees’ Retirement System (PERS) for county fire instructors employed and enrolled before November 1, 2008, who performed service as a county fire instructor in each calendar year of membership, who received a salary greater than $1,500 annually, and who were permanent career service employees in the civil service.

      The bill provides that any person who had membership in the retirement system terminated or partially terminated within five years prior to enactment may be reenrolled as long as they repay any returned contributions and interest, to reinstate their status prior to any such action terminating or partially terminating the membership.  If a person was notified of membership ineligibility after service rendered under the assumption that the service qualified for membership, the person is permitted to continue their enrollment or reenroll in the retirement system and would not have pensionable credit reduced due to any notification or prior ineligibility.

      This bill would address the situation of county fire instructors who were enrolled in PERS, but subsequently were deemed not eligible for membership due to the irregular and limited work schedule of the position.

      As amended and reported by the committee, Senate Bill No. 871 (1R) is identical to Assembly Bill No. 2286, which was also amended and reported by the committee on this date.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

· replace reference to a person’s membership in the retirement system being terminated with reference to a member’s enrollment in the Public Employees’ Retirement System prior to November 1, 2008 for service in a county as a fire instructor;

· delete language concerning a person being reenrolled in the retirement system on the condition that the person repay any contributions and interest that were returned when membership was terminated; and

· provide that that person who served as a fire instructor that was determined ineligible for enrollment in the retirement system is to be granted service credit for that period of enrollment, provided the person repays any contributions and interest that were returned when it was determined that the person was ineligible for membership in the retirement system.