LEGISLATIVE FISCAL ESTIMATE

SENATE, No. 3607

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: MARCH 14, 2025

 

 

SUMMARY

 

Synopsis:

Extends accidental death benefit for survivors of certain SPRS retirees.

Type of Impact:

Annual expenditure increase to the State General Fund.

Agencies Affected:

Division of Pensions and Benefits in the Department of the Treasury.

 

 

Office of Legislative Services Estimate

Fiscal Impact

 

Annual

 

 

State Expenditure Increase

 

$321,000 to $1.7 million

 

 

 

 

 

·         The Office of Legislative Services (OLS) estimates that extending accidental death benefits to certain survivors of State Police Retirement System retirees will annually increase State costs by $321,000 to $1.7 million to pay for the one-time enhanced accidental death payout, the annual accidental death retirement allowance, and the State-paid healthcare coverage for qualifying survivors.

·         Data from the State Troopers Fraternal Association and the Board of Trustees for the State Police Retirement System indicate that in total four to 21 survivors of qualifying State troopers may ultimately receive accidental death benefits due to the bill’s provisions.

·         Data from the Retired Pension Member dataset on the State Transparency website indicates that the average final compensation is approximately $128,000 for State troopers whose survivors are likely to qualify for the benefits under the bill’s provisions.

 

 

BILL DESCRIPTION

 

      This bill extends accidental death benefits to certain survivors of State Police Retirement System retirees.  Under the bill, the surviving spouse or surviving child or children of a qualifying member of the State Police Retirement System who retired on an accidental disability retirement allowance, an ordinary disability retirement allowance, a special retirement allowance, or a service retirement allowance may apply to receive the accidental death benefits available to a member who dies in active service.  The bill removes the limitation that the qualifying retiree must have passed before July 8, 2019.  The bill prohibits a written and sworn statement from being required when a survivor of a qualifying retiree applies for accidental death benefits.  The bill also requires the Board of Trustees of the State Police Retirement System to notify survivors of members of the retirement system of the bill’s impact by certified mail within 60 days of the bill’s effective date. 

      Under current law, the surviving spouse or children of a qualifying member of the State Police Retirement System who retired on an accidental disability retirement allowance may apply to receive the accidental death benefits available to a member who dies in active service provided that the member passed away before July 8, 2019.  Current law also requires a member or retiree seeking a recalculation or presumption for the awarding of accidental disability retirement benefits in conjunction with participation in the World Trade Center rescue, recovery, or cleanup operations to file a written and sworn statement with the Board of Trustees of the retirement system indicating the dates and locations of service.  By law, the survivor of such a member who qualifies for the presumption is entitled to an enhanced payment upon the member’s passing if certain other criteria are met.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

        None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates that extending accidental death benefits to certain survivors of State Police Retirement System retirees will annually increase State costs by $321,000 to $1.7 million to pay for the one-time enhanced accidental death payout, the annual accidental death retirement allowance, and the State-paid healthcare coverage for qualifying survivors.

      A survivor who qualifies under this bill would receive a one-time accidental death payout equal to 350 percent of the retiree’s final compensation instead of the current rate of 50 percent of the retiree’s final compensation upon the retiree’s passing.  A qualifying survivor is also entitled to receive an annual accidental death retirement allowance equal to 70 percent of the retiree’s final compensation instead of a regular death retirement allowance equal to 50 percent of the retiree’s final compensation.  Survivors who qualify for accidental death benefits are also entitled to receive State-paid healthcare coverage.

      Data from the State Troopers Fraternal Association and the Board of Trustees for the State Police Retirement System indicate that in total four to 21 survivors of qualifying State troopers may ultimately receive accidental death benefits due to the bill’s provisions.

      Data from the Retired Pension Member dataset on the State Transparency website indicate that the average final compensation for State troopers whose survivors are likely to qualify for benefits under the bill’s provisions is approximately $128,000.

      Data from the Rate Renewal Reports indicate that the annual premium for Medicare retirees receiving single coverage through State Health Benefits Program – State plan is currently $4,593.

 

Section:

State Government

Analyst:

Anna Harris

Associate 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.).