SENATE BUDGET AND APPROPRIATIONS COMMITTEE
STATEMENT TO
SENATE, No. 4831
with committee amendments
STATE OF NEW JERSEY
DATED: DECEMBER 15, 2025
The Senate Budget and Appropriations Committee reports favorably and with committee amendments Senate Bill No. 4831.
As amended, this bill permanently extends the provisions of P.L.2021, c.498, which permits a retired member of the Public Employees’ Retirement System (PERS) to return to employment with the Legislature under certain circumstances.
Under current law, a retired member of PERS who was employed with the Legislature and who was granted a retirement allowance prior to or on January 18, 2021, or during calendar years 2022, 2023, or 2024, for any cause other than disability, may return to employment with the Legislature, without cancellation of the retirement and reenrollment in PERS, for a term of not more than four years. This return is permitted if:
(1) the return commences no less than 30 days after the retirement allowance becomes due and payable;
(2) the retired member had attained the service retirement age, applicable to that member, as of the date of retirement; and
(3) the retired member is re-employed as a part-time employee and works no more than 20 hours per week.
The retirement has to be a bona fide retirement and any return to employment under this law cannot be prearranged before retirement. The law does not apply to a former member of the Legislature itself.
Under this bill, retired members who had returned to employment with the Legislature pursuant to the current law may extend the term of the return to employment indefinitely. The bill also removes the language that provides that only former employees of the Legislature who were granted a retirement allowance prior to or on January 18, 2021, or during calendar years 2022, 2023, or 2024, may return to employment in the Legislature.
COMMITTEE AMENDMENTS:
FISCAL IMPACT:
The Office of Legislative Services finds that if a retiree of the Legislature is permitted to return to employment for 20 hours or less per week after retirement without reenrolling in the Public Employees’ Retirement System for an indefinite period of time, the Legislature may realize savings in contributions to the retirement system. Because each qualified retiree is not reenrolled in the retirement system and thus does not receive an increase in retirement benefits for the additional service, the retirement system would not incur additional costs.
During the period of the part-time reemployment, the retiree would continue to receive State paid post-retirement health care benefits under the State Health Benefits Program if the retiree is entitled to those benefits. If the retiree is not entitled to those benefits, the retiree would not be eligible for health care benefits under the Public Employees’ Retirement System during the period of part-time employment because eligibility for health care benefits for State employees is limited to those who are employed to work for 35 hours or more per week.
There is no information available to indicate the number of Public Employees’ Retirement System retirees who would be reemployed for an indefinite period of time; thus, a specific estimate of the potential savings for the Legislature cannot be made at this time.