A1073

An Act concerning retirement and death benefits for emergency services employees and supplementing P.L.1954, c.84 (C.43:15A-1 et seq.).

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

1. As used in this act, P.L. , c. (C. ) (pending before the Legislature as this bill):

“Beneficiary” means any person entitled to receive any benefit pursuant to the provisions of this act by reason of the death of a member or retirant of the Emergency Services Part.

“Emergency services employee” means any permanent and full-time employee serving in one of the following positions: emergency medical technician; paramedic; emergency medical services hazardous materials responder technician; public safety telecommunicator, dispatcher, 911 operator or instructor; fire inspector and fire official; county fire marshal and assistant fire marshal not authorized to enroll in the Police and Firemen’s Retirement System of New Jersey in accordance with section 1 of P.L.1971, c.197 (C.40A:14-1 et seq.); or any position the primary or essential duties of which require the employee to be trained in basic or advanced life support services, as defined in section 1 of P.L.1984, c.146 (C.26:2K-7) or section 1 of P.L.1985, c.351 (C.26:2K-21), and who holds an active certification or license by the Department of Health to perform these services. The term shall also mean any permanent and full-time fireman employed by the State, or any county, fire district, joint meeting, regional service agency or municipality, political subdivision, instrumentality or agency thereof who does not meet the age or medical requirements for entry into the Police and Firemen’s Retirement System of New Jersey.

“Final compensation” means the average annual compensation for which contributions are made for the three years of creditable service in New Jersey immediately preceding the member's retirement or death, or it shall mean the average annual compensation for New Jersey service for which contributions are made during any three fiscal years of membership providing the largest possible benefit to the member or the member's beneficiary.

“Retirant” means any former member of the Emergency Services Part receiving a pension or retirement allowance as provided by P.L. , c. (C. ) (pending before the Legislature as this bill).

“Veteran” means the same as that term is defined in section 6 of P.L.1954, c.84 (C.43:15A-6).

2. a. Notwithstanding the provisions of any other law, rule, or regulation to the contrary, an emergency services employee who is employed on the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), and who is enrolled in the Public Employees’ Retirement System, established pursuant to P.L.1954, c.84 (C.43:15A-1 et seq.), before the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be enrolled in the Emergency Services Part of the system, established by P.L. , c. (C. ) (pending before the Legislature as this bill), within 120 days of that effective date. The Division of Pensions and Benefits in the Department of the Treasury in conjunction with the board of trustees of the Public Employees’ Retirement System shall promulgate rules and regulations necessary to implement the provisions of this subsection and shall notify all members and retirants of the retirement system of the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), by letter sent via certified mail and by individual electronic correspondence within 30 days of enactment. An emergency services employee may elect to not be enrolled in the Emergency Services Part by filing a waiver with the division within 60 days of receiving correspondence from the board of trustees. A member who signs the waiver shall remain enrolled in the retirement system as a non-emergency services employee and shall not be subject to compulsory retirement as provided in section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill). Any member who is enrolled in the Emergency Services Part of the system in accordance with this section shall be eligible for the rights and benefits and subject to the requirements set forth in P.L. , c. (C. ) (pending before the Legislature as this bill) upon enrollment. All service credit in the retirement system earned in a title eligible for enrollment in the Emergency Services Part shall be considered service credit in the Emergency Services Part upon enrollment.

b. Notwithstanding the provisions of any other law, rule, or regulation to the contrary, an emergency services employee enrolled in the retirement system after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be enrolled as a member of the Emergency Services Part as a condition of employment.

c. Notwithstanding the provisions of any other law, rule, or regulation to the contrary, an emergency services employee who becomes a member of the Emergency Services Part of the retirement system after the effective date of P.L.2010, c.3 shall also be eligible for retirement and death benefits as provided by P.L. , c. (C. ) (pending before the Legislature as this bill).

d. Members of the Emergency Services Part of the retirement system shall be eligible for retirement, death, and other benefits, and credits as provided in P.L.1954, c.84 (C.43:15A-1 et seq.) not in conflict with retirement, death, and other benefits, and credits provided by P.L. , c. (C. ) (pending before the Legislature as this bill).

e. All outstanding obligations, such as loans, purchases and other arrearage, shall be satisfied by the member as previously scheduled for payment to the Public Employees' Retirement System.

3. a. Notwithstanding the provisions of section 25 of P.L.1954, c.84 (C.43:15A-25) to the contrary, a separate account shall be established in the annuity savings fund for each member of the Emergency Services Part and all contributions based on the member’s salary shall be credited to this account.

b. The percentage contribution rate of each member of the Emergency Services Part shall be fixed as provided by section 25 of P.L.1954, c.84 (C.43:15A-25).

c. An eligible member of the Emergency Services Part who is enrolled in the retirement system on the basis of other public service before, during, or after service as an emergency services employee shall contribute for such other service at the rate of contribution required of other members as provided by section 25 of P.L.1954, c.84 (C.43:15A-25).

4. A member of the Emergency Services Part who has attained the age of 55 and who immediately prior to retirement has 20 years of creditable service as an emergency services employee, shall be eligible for service retirement as an emergency services employee. Any member in service who is an emergency services employee at the time of attaining age 65 years shall be retired on a service retirement allowance forthwith or on the first day of the next calendar month, as is determined by the board of trustees of the Public Employees’ Retirement System; provided, however, any emergency services employee who is a veteran shall not be retired at age 65 years if the member does not have 20 years of service in office, position, or employment of this State, or of any county, fire district, joint meeting, regional service agency or municipality, political subdivision, instrumentality or agency thereof, but such veteran member shall be retired upon the completion of such 20 years of service or upon attaining age 70 years, whichever is earlier.

5. Upon service retirement as a member of the Emergency Services Part, a member shall receive a service retirement allowance consisting of:

a. An annuity which shall be the actuarial equivalent of the member’s accumulated deductions together with regular interest; and

b. A pension in the amount which, when added to the member's annuity, will provide a total retirement allowance equal to two percent of the member’s final compensation multiplied by the member’s number of years of service credit as an emergency services employee for which the member made contributions up to 25, plus the amount determined as provided in section 48 of P.L.1954, c.84 (C.43:15A-48) for years of service credit other than service as an emergency services employee, for which the member has made contributions, plus one percent of the member’s final compensation multiplied by the member’s number of years of service credit as an emergency services employee for which the member has made contributions over 25 or for which the member has made no contributions to the retirement system for the period while the member was an emergency services employee or, in the case of a veteran, while the member was in office, position or employment of this State, or of any county, fire district, joint meeting, regional service agency or municipality, political subdivision, instrumentality or agency thereof; provided, however, that in the case of any member electing to receive benefits under subsection b. of section 38 of P.L.1954, c.84 (C.43:15A-38), such benefits shall be payable at age 60.

c. The death benefit provided in subsection c. of section 48 of P.L.1954, c.84 (C.43:15A-48), shall apply in the case of any member retiring under the provisions of this section.

6. a. Should a member of the Emergency Services Part who has attained the age of 55 retire after having established 25 years of creditable service, the member shall receive, in addition to the service retirement allowance provided in section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), a supplementary “special” retirement allowance equal to five percent of the member's final compensation or such lesser amount as will, if added to the member's service retirement allowance, provide a total retirement allowance of 70 percent of the member's final compensation.

b. The supplementary “special” retirement allowance provided under subsection a. of this section shall be payable to any former member of the retirement system who, prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), retired as an emergency services employee as a member of the retirement system after having established 25 years of creditable service. The provisions of this subsection shall not be construed either to require a reduction in the retirement allowance payable to any retirant or to provide for the payment of any adjustment in such an allowance with respect to any period of time prior to the first day of the month following that effective date.

7. a. A member of the Emergency Services Part after having established 25 years of creditable service before reaching age 55 may elect “early retirement,” with a retirement allowance calculated in accordance with section 48 of P.L.1954, c.84 (C.43:15A-48) and reduced as set forth in section 41 of P.L.1954, c.84 (C.43:15A-41).

b. A member who has 10 or more years of creditable service as an emergency services employee who cannot qualify for service retirement as an emergency services employee having separated from service before reaching retirement age and not due to removal for cause on charges of misconduct or delinquency, shall receive upon retirement beginning at the retirement age, a retirement allowance as set forth in P.L. , c. (C. ) (pending before the Legislature as this bill), except that for each year of creditable service as an emergency services employee the member shall receive, instead of the pension provided in subsection b. of section 48 of P.L.1954, c.84, (C.43:15A-48) a pension which, when added to the annuity, will produce a retirement allowance equal to two percent of the member’s final compensation multiplied by the member’s number of years of creditable service as an emergency services employee for which the member has made contributions up to 25, plus one percent of the member’s final compensation multiplied by the member’s number of years of creditable service for which the member has made contributions over 25 or for which the member has made no contributions to the retirement system for the period while the member was an emergency services employee.

8. Any member of the Emergency Services Part who shall have been an emergency services employee for five years immediately preceding the member’s retirement shall have full rights to, and shall be subject to, the provisions governing ordinary disability retirement as set forth in sections 42, 44 and 45 of P.L.1954, c.84 (C.43:15A-42, C.43:15A-44, and C.43:15A-45, respectively).

9. a. A member of the Emergency Services Part who shall have been an emergency services employee under 65 years of age, or who is a veteran not having attained the age of 70, upon retirement for accidental disability shall have full rights to, and shall be subject to, the provisions governing accidental disability retirement as set forth in section 3 of P.L.2020, c.54 (C.43:15A-43.1) and in sections 43 and 46 of P.L.1954, c.84 (C.43:15A-43 and C.43:15A-46, respectively).

b. Upon the receipt of proper proof of the death of a member who at the time of retirement was an emergency services employee and who has retired on an accidental disability retirement allowance, there shall be paid to such person, if living, as the member shall have nominated by written designation duly executed and filed with the board of trustees of the Public Employees’ Retirement System, otherwise to the executor or administrator of the member's estate, the sum of $5,000 or the amount payable pursuant to subsection c. of section 46 of P.L.1954, c.84, (C.43:15A-46), whichever is greater.

10. An accidental death benefit shall be payable upon the death of an active member of the Emergency Services Part subject to the provisions governing accidental death benefits as set forth in section 49 of P.L.1954, c.84 (C.43:15A-49).

11. The State shall not be liable for any increased pension costs to a county, fire district, joint meeting, regional service agency or municipality, political subdivision, instrumentality or agency thereof as a result of the enrollment of an emergency services employee in the Emergency Services Part established pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), of the Public Employees' Retirement System, established pursuant to P.L.1954, c.84 (C.43:15A-1 et seq.). The actuary for the Public Employees' Retirement System shall determine the unfunded accrued liability for the Emergency Services Part of the retirement system and the benefits provided for members under that part in the same manner provided for the determination of the unfunded accrued liability of the retirement system by section 24 of P.L.1954, c.84 (C.43:15A-24). This unfunded accrued liability shall be amortized in the manner provided by that section 24 over an amortization period of 30 years.

12. This act shall take effect immediately.

STATEMENT

This bill creates an Emergency Services Part in the Public Employees’ Retirement System (PERS) to provide certain enhanced pension and death benefits equivalent to those provided to law enforcement officers under the Law Enforcement Officers (LEO) Part of PERS, including mandatory retirement due to age, to members who hold or held certain emergency services titles.

Membership in the LEO Part of PERS, and eligibility for the enhanced benefits it provides, is limited by law to certain law enforcement officer titles and positions.

Under the bill, members of the Emergency Services Part will include any permanent and full-time employee serving in one of the following positions: emergency medical technician; paramedic; emergency medical services hazardous materials responder technician; public safety telecommunicator, dispatcher, 911 operator or instructor; fire inspector and fire official; county fire marshal and assistant fire marshal not authorized to enroll in the Police and Firemen’s Retirement System of New Jersey; or any position the primary or essential duties of which require the employee to be trained in basic or advanced life support services, who holds an active certification or license by the Department of Health to perform these services. The term will also include any permanent and full-time fireman employed by the State, or any county, fire district, joint meeting, regional service agency or municipality, political subdivision, instrumentality or agency thereof who does not meet the age or medical requirements for entry into the Police and Firemen’s Retirement System of New Jersey.

The State will not be liable for the increased pension costs payable by counties, fire districts, joint meetings, regional service agencies or municipalities, political subdivisions, instrumentalities or agencies thereof resulting from the creation of the Emergency Services Part.

The bill provides that the unfunded accrued liability established through the creation of the Emergency Services Part is to be determined and amortized in the same manner as provided for the retirement system under current law.

Establishes Emergency Services part of PERS; provides enhanced benefits for emergency services employees.