SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 3812

STATE OF NEW JERSEY

DATED:  MARCH 17, 2025

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 3812.

      As reported, this bill removes certain limitations on the receipt of retirement or death benefits granted to members under the Police and Firemen’s Retirement System (PFRS).

       Pursuant to regulation, the Board of Trustees of PFRS withholds retirement or death benefits if the entitled 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.  This bill removes the board’s ability to withhold retirement or death benefits on the basis the entitled member has pending civil litigation.  Under the bill, the board will have the ability to adjust the member’s retirement or death benefits following the disposition of any legal proceeding.

FISCAL IMPACT:

      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.