New Jersey Assembly Bill A671

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22
• Refer: 6/9/22
• Report Pass: 6/23/22
• Engrossed: 6/29/22
• Refer: 9/22/22

Caption

Provides service credit for PERS member for former membership in transit retirement program.

Impact

By enabling former members of the TERP to count their service toward their retirement in PERS, A671 serves to unify the retirement benefits for public employees transitioning between various public service roles. This is significant for individuals who have had long careers in public service and relied on both retirement systems. The bill aims to promote fairness and consistency in retirement service credit, potentially improving the financial security of affected employees.

Summary

A671 is a legislative bill introduced in the New Jersey Assembly aimed at providing service credit for members of the Public Employees' Retirement System (PERS) who were previously part of the Transit Employees' Retirement Program (TERP) before July 30, 2006. The bill specifically outlines that for every 3.5 years of credited service in the TERP, a member can be credited with one year in the PERS, contingent upon the transfer of all associated funds from the TERP to PERS. This provision is designed to enhance the retirement benefits of individuals who have transitioned between these two retirement programs.

Contention

While the bill is aimed at assisting public employees, it has garnered some debate. Proponents argue that it rectifies inconsistencies in how service is credited across different programs, thereby providing equitable treatment to public employees. However, opponents may raise concerns regarding the financial implications of transferring funds from TERP to PERS, and whether this could potentially impact the fiscal health of the retirement systems involved. Additionally, there may be worries about the necessary qualifications and the processes surrounding the transfer of contributions.