ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

[Second Reprint]

SENATE, No. 4831

STATE OF NEW JERSEY

DATED:  JANUARY 8, 2026

      The Assembly Appropriations Committee reports favorably Senate Bill No. 4831 (2R).

As reported, this bill extends the provision of current law that 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 the 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 the 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, as amended, the term of the return to employment is extended to seven years from four years.  A retired member who returned to employment under the current law is permitted to extend the return to employment to seven years from the date of return.

      As reported, Senate Bill No. 4831 (2R) is identical to Assembly Bill No. 6315, which was also reported by the committee on this date.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) 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, 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.

      The Legislature may also experience an expenditure increase to pay the salary costs of a retiree who returns to employment if the Legislature would not have otherwise hired new personnel to perform the duties of the rehired individual, but the net impact to the State will be an expenditure decrease as the retiree is not reenrolled in the retirement system and the retiree’s return to employment is limited to a certain number of hours per week.

      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 under the bill’s provisions; thus, a specific estimate of the potential savings for the Legislature cannot be made at this time.