A1002

An Act concerning retirement benefits of certain members of the Prosecutors Part of the Public Employees’ Retirement System and amending P.L.2001, c.366.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 4 of P.L.2001, c.366 (C.43:15A-158) is amended to read as follows:

4. a. Any member of the Prosecutors Part who has attained age 55 years may retire on a service retirement allowance by filing with the retirement system a written application, duly attested, stating at what time subsequent to the execution and filing thereof the member desires to be retired. The board of trustees shall retire the member at the time specified or at such other time within one month after the date so specified as the board finds advisable. Any prosecutor in service who attains age 70 years shall be retired by the board of trustees on a service retirement allowance forthwith on the first day of the next calendar month or at such time within one month thereafter as it finds advisable, except that a prosecutor attaining age 70 years may be continued in service on an annual basis upon written notice to the retirement system by the Attorney General or the [Board of Chosen Freeholders] board of county commissioners of the county employing the prosecutor.

b. Upon retirement for service a prosecutor shall receive a service retirement allowance which shall consist of:

(1) An annuity which shall be the actuarial equivalent of the prosecutor's aggregate contributions and

(2) A pension in the amount which, when added to the prosecutor's annuity, will provide a total retirement allowance of one-sixtieth of average final compensation multiplied by the number of years of creditable service, or 2% of average final compensation multiplied by the number of years of creditable service up to 30 plus 1% of average final compensation multiplied by the number of years of creditable service over 30, or 50% of final compensation if the prosecutor has established 20 or more years of creditable service, whichever is greater.

c. Any prosecutor as of the effective date of P.L.2001, c.366 (C.43:15A-155 et seq.) who has 20 or more years of creditable service at the time of retirement shall be entitled to receive a retirement allowance equal to 50% of final compensation plus, in the case of a prosecutor required to retire pursuant to the provisions of subsection a. of this section, 3% of final compensation multiplied by the number of years of creditable service over 20 but not over 25.

d. Upon the receipt of proper proofs of the death of a prosecutor who has retired on a service retirement allowance, there shall be paid to the prosecutor's beneficiary an amount equal to one-half of the compensation upon which contributions by the prosecutor to the annuity savings fund were based in the last year of creditable service.

e. Any member of the Prosecutors Part who was enrolled prior to the effective date of P.L. , c. (pending before the Legislature as this bill) and who is an active member on that effective date, may retire on or after the effective date of P.L. , c. (pending before the Legislature as this bill), but no later than the 60th month following that effective date, on a service retirement allowance, regardless of age, upon attaining 20 or more years of creditable service. The member shall be entitled to receive a service retirement allowance equal to 50 percent of the member’s final compensation.

(cf: P.L.2001, c.366, s.4)

2. This act shall take effect immediately.

STATEMENT

This bill permits an active member of the Prosecutors Part of the Public Employees’ Retirement System (PERS) who is enrolled before the effective date of this bill to retire on or after the effective date of this bill, but no later than 5 years from the effective date of the bill, upon attaining 20 or more years of service credit regardless of age. Under the bill, such a member will be entitled to a retirement allowance equal to 50 percent of the member’s final compensation.

Under current law, a member must be 55 years of age or older and attain at least 20 years of service credit to retire on a service retirement allowance of 50 percent of final compensation.