ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 5053

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 23, 2026

      The Assembly Appropriations Committee reports favorably and with committee amendments Assembly Bill No. 5053 (1R).

      As amended, this bill permits retired municipal code officials to return to part-time employment after a bona fide severance period without reenrollment in the Public Employees’ Retirement System (PERS).

      Under the bill, as amended, a former member of PERS who served as a municipal code official and who has been granted a retirement allowance for any cause other than disability, may return to employment as a municipal code official with one or more employers within three years after the effective date of the bill and will be eligible to continue employment, without cancelation of the retirement and reenrollment in the system, if:  (1) the return commences more than 30 days after the member receives written notification that the retirement is approved by the board, or more than 30 days after the date of retirement, whichever is later, if the employment is with a different employer, or 90 days after the date of retirement if the employment is with the same employer; (2) the former member had attained the service retirement age applicable to that member as of the date of retirement; and (3) the former member is re-employed as a part-time employee and works no more than 20 hours per week per employer.

      The bill requires the former member’s retirement to have been a bona fide retirement and prohibits any return to employment to be prearranged before retirement.

COMMITTEE AMENDMENTS:

      The committee amended the bill to require that the return to employment is a bona fide severance, meaning that the return to employment commences more than 30 days after the member receives written notification that the retirement is approved by the board, or more than 30 days after the date of retirement, whichever is later, if the employment is with a different employer, or 90 days after the date of retirement if the employment is with the same employer.  The amendments clarify that the former member may return to employment with one or more employers and also clarify that the former member cannot be employed for more than 20 hours per week per employer.

FISCAL IMPACT:

      Fiscal information for this bill is currently unavailable.