RECENT LEGISLATION
1998

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Chapter 404, P.L. 1997

This bill permits a State employee member of the Public Employees' Retirement System (PERS) who was or is employed at an institution in the Department of Human Services during any part of the period commencing June 12, 1997, and ending February 15, 1998, to retire under the early retirement provisions of the PERS law, that is, before age 60, and to receive in retirement full- or part-paid health benefits under the State Health Benefits Program if the employee;

• applies to retire on or before February 15, 1998,

• retires on or before July 1, 1998, and

• at the time of retirement, has attained 55 years of age and accrued at least 22 years of service credit under PERS.

An employee retiring under this act who has not repaid the full amount of a loan from the retirement system by the effective date of retirement may repay the loan through deductions from the member's retirement benefit payments in the same monthly amount which was deducted from the member's compensation immediately preceding retirement.

A State employee purchasing service credit on or after the effective date of this act to qualify for a benefit under this act may purchase a portion of the credit which the employee is eligible to purchase.

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Chapter 397, P.L. 1997

This law permits a retiree from a State-administered retirement system who is also receiving a pension based on public employment in another state and who was ineligible for enrollment in a State-administered retirement system prior to September 10, 1991 because of eligibility to receive a pension based on public employment in another state may apply, within 30 days of the effective date of the bill, to the board of trustees of the retirement system to purchase up to 10 years of credit for the service which had been rendered in any position covered by the retirement system for which the person has received no credit.

September 10, 1991, was the date on which Chapter 276, P.L. 1991, took effect permitting pension fund members who were retirees from out-of-state public pension systems to be enrolled in a State-administered retirement system and to purchase credit for prior service.

The retiree may purchase all or a portion of the service credit by paying into the annuity savings fund the amount required by applying the factor, supplied by the actuary, applicable to the retiree's age at the time of the purchase to the highest annual compensation for service in this State for which contributions were made during any prior fiscal year of membership. The retiree is not liable for the costs of the enhanced pension adjustment benefits and post-retirement medical benefits. The purchase would have to be made in a lump sum and the retiree's retirement allowance and pension adjustment benefits will be recalculated to reflect the purchased service credit.

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Chapter 394, P.L. 1997

This law permits a person who, on the effective date of this law, is eligible to receive a pension from the Newark City Employees Retirement System (NERS) and is employed in a position covered by the Public Employees' Retirement System (PERS), to enroll in PERS notwithstanding the provisions of Chapter 23, P.L. 1968, that prohibit such enrollment. The person would be required to apply for such enrollment within 180 days of the effective date, to repay to the former system all pension payments received, and to waive all future rights and benefits under the former system. Employer and employee contributions for the member's service under the NERS, with interest at the rate of 6%, compounded annually, are to be remitted by NERS to PERS.

Credit for service established by the person under the former system is to be established in PERS. If the amounts remitted to PERS by the former system are insufficient to provide for the full cost of establishing that credit in PERS, the employee is to be liable for payment of the amount of the deficiency. If the member retires prior to completing payment for service credit under this law, pro-rata credit for service in proportion to the payments made by the member prior to retirement shall be established.

Finally, the employee is permitted to purchase all or a portion of the service rendered in the PERS-covered position of employment since the date of appointment thereto under the same terms as would be applicable to the purchase of previous PERS service.

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Chapter 330, P.L. 1997

This law provides post-retirement health care benefits in the State Health Benefits Program (SHBP) to a qualified retiree from the Police and Firemen's Retirement System (PFRS) or the Consolidated Police and Firemen's Retirement System (CPFPF), or from the Public Employees' Retirement System (PERS) if the retiree's service was as a law enforcement officer or in a position eligible for participation in PFRS, and to dependents of a qualified retiree, but not survivors, regardless of whether the retiree's employer participated in the SHBP.

The law defines a qualified retiree as a retiree who:

1. retired on a benefit based on 25 or more years of service credit in PFRS or CPFPF, or in PERS as a law enforcement officer as defined in N.J.S.A. 43:15A-97 or in a position eligible for participation in PFRS under Chapter 204, P.L. 1989 (N.J.S.A. 43:16A-1.2); or

2. retired on a disability retirement under PFRS or CPFPF, or under PERS as a law enforcement officer or in a position eligible for participation in PFRS, based on fewer years of service credit, and

3. was eligible to receive health benefits coverage at the expense of the employer of the person immediately preceding retirement.

It provides that the State shall pay 80 percent of the premium or periodic charges for the category of coverage elected by the qualified retiree under the State managed care plan (NJ PLUS) or a health maintenance organization participating in the program which provides services in the 21 counties in the State, whichever provides the lower charge. The qualified retiree shall pay the difference between the premium or periodic charge for the coverage and the amount paid by the State.

A qualified retiree shall have two opportunities to enroll in this program;

1. at the time of retirement, and

2. when the qualified retiree becomes eligible for Medicare.

A qualified retiree receiving health benefits coverage from any employer after retirement shall be ineligible for the benefits under this act.

Any qualified retiree who retired prior to the effective date of this act, shall be eligible for coverage under this program if the retiree applies for this benefit within one year after the effective date of this act.

The provisions of this law shall not apply to (1) a retired State employee whose premium or periodic charges for benefits under the program are paid by the State pursuant to N.J.S.A. 52:14-17.32 or N.J.S.A. 52:14-17.28b; and (2) a retiree of an employer other than the State which pays the premium or periodic charges for health care benefits for eligible retirees pursuant to N.J.S.A. 52:14-17.38 or N.J.S.A. 40A:10-23 on the effective date of this law.

No provision of this law alters retiree health care benefits provided by an employer by negotiated agreement, ordinance or resolution. Further, the law also provides that an arbitrator in a compulsory interest arbitration proceeding shall not issue any finding, opinion or order reducing, eliminating or otherwise modifying retiree benefits which exist as a result of a negotiated agreement, ordinance or resolution because of the enactment of this or any other legislation providing such benefits for those who do not already receive them.

Date Approved: January 9, 1998

Effective Date: This act shall take effect on the first day of the sixth month following enactment (July 1, 1998).

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Chapter 332, P.L. 1997

This law allows plan beneficiaries of the Teachers' Pension and Annuity Fund (TPAF) or the Public Employees' Retirement System (PERS) to opt for the deduction of their dental insurance premiums from their retirement allowances.

Upon receiving a written request from a TPAF or PERS beneficiary, the Division will make deductions from the beneficiary's retirement allowance for the payment of premiums for the beneficiary's dental insurance plan, and transmit the sums deducted to the designated insurance plan carrier. The bill extends this deduction authorization subject to the condition that at least 1,000 beneficiaries covered by a dental plan make such a request before the Division would be required to make deductions for that plan.

Date Approved: January 12, 1998

Effective Date: This act shall take effect immediately.

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Chapter 335, P.L. 1997

This law provides Statepaid health benefits to a retired State employee and any dependents, but not including survivors, if the employee:

1. retired prior to the effective date of this act (January 12, 1998) under the State Police Retirement System with more than 20 but less than 25 years of service credit in the retirement system;

2. was subsequently employed by the State in another position(s) not covered by the State Police Retirement System;

3. has, in the aggregate, at least 30 years of fulltime employment with the State; and

4. is covered by the SHBP at the time of terminating fulltime employment with the State.

Date Approved: January 12, 1998

Effective Date: This act shall take effect immediately.

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Chapter 338, P.L. 1997

This law requires hospital, medical and health service corporations, individual, small employer and large group insurers, health maintenance organizations and the New Jersey State Health Benefits Program (SHBP) to provide coverage for the therapeutic treatment of inherited metabolic diseases, including the purchase of medical foods and low protein modified food products, when diagnosed and determined to be medically necessary by the covered person's physician.

The law defines "inherited metabolic disease" as a disease caused by an inherited abnormality of body chemistry for which testing is mandated pursuant to Chapter 321, P.L. 1977, (C.26:2-110 et seq.), such as phenylketonuria (PKU). "Low protein modified food product" is a food product that is specially formulated to have less than one gram of protein per serving and is intended to be used under the direction of a physician for the dietary treatment of an inherited metabolic disease, but does not include a natural food that is naturally low in protein; and "medical food" is a food that is intended for the dietary treatment of a disease or condition for which nutritional requirements are established by medical evaluation and is formulated to be consumed under direction of a physician.

Date Approved: January 12, 1998

Effective Date: This act shall take effect immediately.

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Chapter 281, P.L. 1997

Prior to this law being enacted, a member of the Police and Firemen's Retirement System (PFRS) who retired on an accidental disability received a retirement allowance of 2/3 of the member's actual annual compensation for which contributions were being made at the time of the occurrence of the accident. Under this law, the member may instead receive a retirement allowance of 2/3 of the member's actual annual compensation for which contributions were being made at the time of the member's retirement, whichever provides the largest possible benefit to the member.

Any increased pension benefits payable under this act shall apply to the benefits received by any member who retired on an accidental disability retirement on or after April 1, 1991 and shall apply only to pension benefits payable on or after the effective date of this act. Pension adjustment benefits for existing eligible retirees will be adjusted to reflect the increased benefit as of the date of retirement, and shall be first payable for the month of February, 1998 (March 1, 1998 pay date).

Date Approved: January 6, 1998

Effective Date: This act shall take effect immediately. Date Approved: January 12, 1998 Effective Date: This act shall take effect immediately.

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Chapter 205, P.L. 1997

Provides optional contributory insurance coverage to any member of the Judicial Retirement System for a death benefit in an amount equal to one and one-half times the member's compensation in the final year of service. The terms of the coverage are similar to those applicable to the optional contributory death benefit coverage available to members of the Public Employees' Retirement System.

Date Approved: August 14, 1997

Effective Date: This act shall take effect immediately.

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Chapter 209, P.L. 1997

Amends a provision of the law establishing the Council on Local Mandates that requires employees and members of the Council to be enrolled in the Public Employees' Retirement System (PERS).

This law provides that no person who has been granted a retirement allowance by any New Jersey public pension fund (including PERS) prior to commencing service as a employee or member of the council shall be eligible on the basis of that service for enrollment or membership in the PERS. This law effectively overrides the requirement, as it applies to new members or employees appointed to the Council only, that a PERS retiree be re-enrolled when re-employed in a PERS covered position (N.J.S.A. 43:15A-57.2).

Date Approved: August 18, 1997

Effective Date: This act shall take effect immediately.

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Chapter 184, P.L. 1997

Makes permanent the Police and Firemen's Retirement System (PFRS) mortgage loan program. Chapter 72, P.L. 1992, established a temporary mortgage loan program that was scheduled to expire five years after the date of enactment, on August 5, 1992. This bill removes the expiration provision.

This program provides residential mortgage loans to any active member of the PFRS to acquire or construct a residential property or refinance an existing property.

Date Approved: August 1, 1997

Effective Date: This act shall take effect immediately.

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Last update: March 2, 2010