RECENT LEGISLATION
2001

Links to the New Jersey Legislature and other legislature information.

Chapter 278, P.L. 2001

Date Approved: December 27, 2001.

Effective Date: December 27, 2001.

Description:

This law increases from $10,000 to $15,000 the maximum annual aggregate compensation a Public Employees' Retirement System (PERS) retiree may receive from employment in a PERS-covered position with a public employer without being subject to cancellation of retirement benefits and reenrollment in the retirement system.

The law also specifies that $15,000 is the aggregate annual compensation that a retiree may receive from all public employers in all PERS-covered positions. Previously, a retiree was exempt from reenrollment if the compensation from each employer did not exceed the annual maximum of $10,000, regardless of the number of employers or aggregate compensation.

To view the new law, click here: Chapter 278, P.L. 2001 Adobe PDF (16K)

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Chapter 279, P.L. 2001

Date Approved: December 27, 2001.

Effective Date: December 27, 2001.

Description:

On February 25, 1997, the Attorney General advised the Department of Personnel and the Division of Pensions and Benefits that the age restrictions for hiring firefighters and for their enrollment in the Police and Firemen's Retirement System (PFRS) were once again in effect as a result of the repeal of a section of the federal Age Discrimination in Employment Act dealing with firefighters and law enforcement officers. This reimposition of hiring restrictions caused problems for individuals who successfully passed civil service examinations prior to the reimposition and were appointed after the reimposition but who were not allowed to join PFRS because of the over age 35 eligibility restriction.

This law provides that a municipal appointing authority may appoint to a uniformed firefighting position any person who is over 35 years of age if that person was placed on a civil service eligibility list for appointment as a member or officer of a paid fire department or force prior to February 25, 1997 and was appointed by a municipal appointing authority prior to June 30, 1998.

PFRS must accept as a member of the retirement system any firefighter, otherwise eligible for membership, who was appointed in accordance with the provisions of this law.

To view the new law, click here: Chapter 279, P.L. 2001 Adobe PDF (8K)

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Chapter 284, P.L. 2001

Date Approved: December 27, 2001.

Effective Date: December 27, 2001.

Description:

This law requires the State Health Benefits Program to ensure that any person covered under the program who is enrolled in a health maintenance organization or the NJ PLUS plan, will be provided with 90-days notice if that person's primary care physician will be terminated from the provider network. If 90-days notice cannot be provided because the termination will occur prior to the end of the 90-day period, the health maintenance organization or NJ PLUS must notify the member as soon as the health maintenance organization or NJ PLUS has knowledge of the termination. Upon receiving such notification, the covered person shall be permitted to change coverage to another health benefits plan, even though the physician's termination may occur outside of the annual open enrollment period.

To view the new law, click here: Chapter 284, P.L. 2001 Adobe PDF (9K)

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Chapter 293, P.L. 2001

Date Approved: December 28, 2001.

Effective Date: December 28, 2001.

Description:

This law makes changes to the mortgage loan program available to members of the Police and Firemen's Retirement System (PFRS). They are eligible for mortgage loans from the retirement system on their principal residences (either new mortgages or the refinancing of existing mortgages). This program was begun in 1992 and is administered by the New Jersey Housing and Mortgage Finance Agency.

Previously, the interest rate was set at two percent above the weekly average yield of one-year United States Treasury securities. This law sets the interest rate at one percent above the weekly average yield of ten-year United States Treasury securities.

The law also provides that if the issuance of ten-year United States Treasury securities is discontinued, the subsequent index will be determined by the State Treasurer with the advice of the New Jersey Housing and Mortgage Finance Agency.

To view the new law, click here: Chapter 293, P.L. 2001 Adobe PDF (13K)

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Chapter 316, P.L. 2001

Date Approved: January 3, 2002.

Effective Date: January 3, 2002.

Description:

This law extends State-paid post-retirement medical benefits upon mandatory retirement at age 55 to all State Police officers in the State Police Retirement System (SPRS) with more than 20 but less than 25 years of service.

Previously, only members of the SPRS as of the effective date of Chapter 175, P.L. 1985, which instituted the mandatory retirement age of 55, were eligible for State-paid post retirement medical benefits if a member was retired because of age prior to attaining 25 years of pension service credit.

To view the new law, click here: Chapter 316, P.L. 2001 Adobe PDF (17K)

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Chapter 318, P.L. 2001

Date Approved: January 3, 2002.

Effective Date: January 3, 2002.

Description:

This law extends the active death benefits provided in N.J.S.A.43:16A-9, as increased under Chapter 428, P.L. 1999, to a widow or widower, child or parent, of a member of the Police and Firemen's Retirement System (PFRS) with 10 or more years of PFRS service who died in active service on or after June 1, 1995 and before January 1, 1998 and whose widow or widower had, on May 1, 2001, an appeal of a denial of a benefit related to death in the line of duty pending before the PFRS board of trustees. The law requires that the appeal before the board of trustees have been withdrawn or denied and that an eligible beneficiary apply for the increased benefits within 90 days after the law's enactment and return to PFRS the member's aggregate contributions received. The benefits provided under the law will be prospective only, and not retroactive to the date of death of the member. The State will be liable for all costs to the retirement system attributable to this law.

To view the new law, click here: Chapter 318, P.L. 2001 Adobe PDF (8K)

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Chapter 341, P.L. 2001

Date Approved: January 5, 2002.

Effective Date: January 5, 2002.

Description:

Chapter 6, P.L. 2001, provided that a member of the Public Employees' Retirement System (PERS) or a member of the Teachers' Pension and Annuity Fund (TPAF) could transfer service credit between the two retirement systems even though there was a three year period of dual membership (concurrent membership in both retirement systems). This bill increases the permissible time period of dual membership from two to three years when transferring service credit between the two retirement systems.

To view the new law, click here: Chapter 341, P.L. 2001 Adobe PDF (15K)

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Chapter 350, P.L. 2001

Date Approved: January 6, 2002.

Effective Date: This act takes effect immediately but the adjustment provided for in this act shall not begin until the first benefit payment following the 90th day after enactment.

Description:

This law would increase the compensation base of the State Police Retirement System (SPRS) accidental death benefit for surviving spouses and children.

Current law provides a pension of 70% of final compensation (average compensation received in the last 12 months of service preceding death) for the use of the spouse and children of a SPRS member who dies in active service as a result of an accident met in the actual performance of duty. If there is no surviving spouse or in case the spouse dies or remarries, 20% of final compensation is payable to one surviving child, 35% of final compensation to two surviving children in equal shares, and if there are three or more children, 50% of final compensation is payable to such children in equal shares. A cost-of-living adjustment is made to such payments annually.

Under this law, SPRS accidental death survivors' benefit for spouses and children are to be based upon "adjusted final compensation" defined as the amount of final compensation or final compensation as adjusted, as the case may be, increased by the same percentage increase which is applied in any adjustments of the compensation schedule of active members after the member's death and before the date on which the deceased member of the retirement system would have accrued 25 years of service under an assumption of continuous service, at which time that amount will become fixed and then eligible for annual cost-of-living adjustments. Adjustments to final compensation or adjusted final compensation shall take effect at the same time as any adjustments in the compensation schedule of active members.

Adjustments to SPRS accidental death survivors' benefits will apply to benefit entitlements granted prior to enactment of this law but only for benefit payments on or after the date of enactment.

To view the new law, click here: Chapter 350, P.L. 2001 Adobe PDF (15K)

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Chapter 353, P.L. 2001

Date Approved: January 6, 2002.

Effective Date: January 6, 2002, retroactive to October 1, 2001.

Description:

This law provides for an increase in the special veterans retirement allowance and the ordinary and accidental disability retirement allowances for members of the Teachers' Pension and Annuity Fund (TPAF) and the Public Employees' Retirement System (PERS). The percentage increase is comparable to the increase provided in the service retirement formulas of those retirement systems under Chapter 133, P.L. 2001. That law increased the TPAF and PERS service retirement formulas and the veterans retirement formula for those veterans with 35 or more years of service, both of which are computed on the basis of the number of years of the retirant's service, by approximately 9 percent.

PERS and TPAF Veterans and Disability Benefit Formula Changes

This law provides that the TPAF and PERS special veterans retirement allowance will increase from 50 percent to 54.5 percent of the member's compensation during the highest-paid year of service. The minimum ordinary disability retirement allowance will increase from 40 percent to 43.6 percent of "final compensation" (average compensation during the three last or highest-paid years of service), and the accidental disability retirement allowance will increase from 66.66 percent to 72.7 percent of the actual annual compensation at the time of the accident. Existing retirees, or their beneficiaries, will also receive these percentage increases in their retirement allowances.

PERS Veterans Benefit Eligibility Changes

The law also: (1) reduces from 62 to 60 the age at which a PERS veteran member with 20 years of aggregate service credit may retire on the special veterans retirement allowance; and (2) provides that a PERS veteran member who is 55 years of age with 25 years of aggregate service credit may retire on the special veterans retirement allowance. These changes establish parity between eligibility qualifications for veterans retirement under PERS and those enjoyed by TPAF veterans since 1984.

PERS-Law Enforcement Officers (LEO) Service Retirement Benefit Formula Change

The law applies the new N/55 accrual rate to non-law enforcement officer service.

Miscellaneous

The law removes an inoperative provision of the law that had placed a cap on both ordinary and accidental disability retirement allowances. This provision was preempted by the federal Older Workers Benefit Protection Act.

Funding

The additional annual employer normal contributions to TPAF and PERS associated with this law will be paid from the benefit enhancement funds established by Chapter 133, P.L. 2001. If the assets in these funds are insufficient to pay the normal contribution, the State will pay the normal contribution not covered by the assets. Excess valuation assets will cover the unfunded liability created in TPAF and PERS. The State will be liable for any increased cost to local government employers participating in PERS as a result of these changes.

The provisions of this bill are retroactive to October 1, 2001.

To view the new law, click here: Chapter 353, P.L. 2001 Adobe PDF (46K)

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Chapter 355, P.L. 2001

Date Approved: January 6, 2002.

Effective Date: January 6, 2002.

Description:

This law provides an exemption from the re-enrollment after retirement provisions to the following:

1. A retiree of the Teachers' Pension and Annuity Fund (TPAF) who is a certificated superintendent or a certificated administrator and who becomes employed by the New Jersey Department of Education in a position of critical need as determined by the Commissioner of Education, or becomes employed by a board of education as a certificated superintendent or certificated administrator on a contractual basis for a term of not more than one year; and
   
   
2. A retiree of the Public Employees' Retirement System (PERS) who becomes employed by the New Jersey Department of Education in a position of critical need as determined by the commissioner, or becomes employed by a board of education in a position of critical need as determined by the superintendent of the district on a contractual basis for a term of not more than one year.

A retiree employed by a board of education will be able to renew the employment contract for one additional year; however, the retiree's total period of employment with any individual board of education may not exceed a two-year period. The law also provides that the current pension re-enrollment provisions will apply if a retiree accepts employment with the same employer from which he retired within 120 days of retirement.

To view the new law, click here: Chapter 355, P.L. 2001 Adobe PDF (21K)

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Chapter 366, P.L. 2001

Date Approved: January 7, 2002.

Effective Date: January 7, 2002.

Description:

This law establishes within the Public Employees' Retirement System (PERS) a special Prosecutors Part for any county prosecutor, first assistant county prosecutor or assistant county prosecutor; the Director of the Division of Criminal Justice in the Department of Law and Public Safety; any assistant director, deputy director, assistant attorney general or deputy attorney general employed by that department and assigned to that division; and any criminal investigator in the Division of Criminal Justice ineligible for enrollment in the Police and Firemen's Retirement System (PFRS). These positions are defined as prosecutors for the purposes of this law. The prosecutor must have been serving on or after the effective date of the law.

The specifics of the law are very complex and are currently being examined by the Division. When this process is complete, more details on the law will be provided.

To view the new law, click here: Chapter 366, P.L. 2001 Adobe PDF (29K)

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Chapter 367, P.L. 2001

Date Approved: January 8, 2002.

Effective Date: This act shall take effect on the first day of the second month following enactment.

Description:

This law requires a carrier which offers a managed care plan that provides for both in-network and out-of-network benefits to reimburse a health care facility for the services provided by the facility at the carrier's full contracted rate without any penalty for the patient's selection of an out-of-network health care provider, in accordance with the in-network policies and in-network copayment, coinsurance or deductible requirements of the managed care plan, even if.

• a covered person is admitted by an out-of-network provider to an in-network health care facility for medically necessary health care services, or
  
  
• the covered person receives covered, medically necessary health care services from an out-of-network provider while the covered person is a patient at an in-network health care facility and was admitted to the health care facility by an in-network provider.

The law also amends the "Health Care Quality Act," N.J.S.A. 26:2S-1 et seq., to require carriers which offer a managed care plan to disclose to subscribers, at the time of enrollment and annually thereafter, the carrier's preauthorization and review requirements of the health benefits plan regarding the determination of medical necessity that apply to a covered person who is admitted to an in-network health care facility, and the financial responsibility of the patient for the cost of services provided by an out-of-network admitting or attending health care practitioner.

The law applies to all policies and contracts issued or renewed on or after the date of enactment of the law.

Any contract purchased or renewed by the State Health Benefits Commission on or after the effective date of this Act, which provides hospital or medical expense benefits through a managed care plan, must meet the requirements of this law.

To view the new law, click here: Chapter 367, P.L. 2001 Adobe PDF (25K)

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Chapter 422, P.L. 2001

Date Approved: January 8, 2002.

Effective Date: This act shall take effect upon adoption of an ordinance by the Township of South Hackensack.

Description:

This law is special legislation to permit the Township of South Hackensack in Bergen County to appoint Robert Chinchar to its police department although his age is greater than the maximum age allowed under N.J.S.A. 40A:14-127.

The law requires the Board of Trustees of the Police and Fireman's Retirement System of New Jersey to accept Mr. Chinchar into the retirement system provided that he pays into the system, in a manner prescribed by the Board, the contribution due and payable from the date of his original appointment. The law will take effect upon its adoption by ordinance by the Township of South Hackensack.

To view the new law, click here: Chapter 422, P.L. 2001 Adobe PDF (8K)

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Chapter 423, P.L. 2001

Date Approved: January 8, 2002.

Effective Date: This act shall take effect upon adoption of an ordinance by the Borough of Cliffside Park.

Description:

This law is special legislation to permit the Borough of Cliffside Park in Bergen County to appoint Pasqual DeRito to its police department although his age is greater than the maximum age allowed under N.J.S.A. 40A:14-127.

The law requires the Board of Trustees of the Police and Fireman's Retirement System of New Jersey to accept Mr. DeRito into the retirement system provided that he pays into the system, in a manner prescribed by the Board, the contribution deemed due and payable from the date of his original appointment as a special law enforcement officer. The law will take effect upon its adoption by ordinance by the Borough of Cliffside Park.

To view the new law, click here: Chapter 423, P.L. 2001 Adobe PDF (8K)

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Chapter 259, P.L. 2001

Date Approved: December 6, 2001.

Effective Date: December 6, 2001.

Description:

This law amends the Public Employees Retirement System (PERS) statutes and creates special retirement benefits for members employed as Workers Compensation Judges. PERS members entitled to the new benefits would be the Chief Judge, the administrative supervisory judges, the supervisory judges, and the judges of compensation of the Division of Workers' Compensations of the Department of Labor.

The eligibility criteria and benefits provided under the Workers Compensation Judges Part of the PERS statutes are similar to provisions for members of the Judicial Retirement System (JRS), while retaining some current PERS provisions in areas of:

• options upon retirement;
  
  
• disability retirement; and
  
  
• contributory life insurance coverage.

The following chart provides a comparison of the new benefits under the Workers Compensation Judges Part (WCJP) of the PERS statutes to the JRS and the PERS benefit available to the general membership.

Chapter 259, P.L. 2001 Benefit Comparison

Under current law (N.J.S.A. 34:15-94j.), the Commissioner of Labor, with the authorization of and appropriation by the Legislature, transfers the amount necessary for the cost of the administration of the Division of Workers' Compensation, including the employer pension contributions of the State, from the Second Injury Fund, funded by an annual surcharge on all workers' compensation and employer's liability insurance policies. This new law will not change this funding mechanism.

To view the new law, click here: Chapter 259, P.L. 2001 Adobe PDF (152K)

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Chapter 253, P.L. 2001

Date Approved: November 15, 2001.

Effective Date: November 15, 2001.

Description:

This law would allow a retired member of the Public Employees' Retirement System (PERS) to accept employment with an institution of higher education in a teaching position covered by the retirement system, if the compensation is in excess of $10,000 per year, without being subject to the cancellation of retirement benefits and re-enrollment in the system. Under current law, a retired PERS member may already accept such employment if the compensation does not exceed $10,000 per year. Neither the individual nor the employer would be required to contribute to the retirement system with respect to the new employment. The law defines public institutions of higher education to include the University of Medicine and Dentistry of New Jersey, the New Jersey Institute of Technology, Rutgers - The State University, any State or county college, and any other college or university that may be established at some future time.

To view the new law, click here: Chapter 253, P.L. 2001 Adobe PDF (15K)

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Chapter 209, P.L. 2001

Date Approved: August 15, 2001.

Effective Date: August 15, 2001.

Description:

The law amends the statutes governing an employee's eligibility for paid coverage under the State Health Benefits Program (SHBP) upon retirement.

Previously, the law provided that to qualify for such coverage, a State employee (other than one retiring on a disability pension) must have accrued 25 years of service credit in a single State-administered retirement system. The State will also pay for retiree health benefits for a board of education or county college employee who has 25 years of service credit in the Public Employees' Retirement System, the Teachers' Pension and Annuity Program or the Alternate Benefit Program. A local government unit in SHBP may choose to provide post-retirement medical coverage to its retirees, but with certain exceptions, a local government retiree must have accrued 25 years of creditable service in a single State or locally-administered retirement system to qualify.

This law provides that instead of having to meet the 25-year service credit requirement in a single State or locally-administered retirement system, a public employee under SHBP may receive this benefit if the 25 years of service credit is in one or more State or locally-administered retirement systems.

To view the new law, click here: Chapter 209, P.L. 2001 Adobe PDF (36K)

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Chapter 228, P.L. 2001

Date Approved: August 27, 2001.

Effective Date:   August 27, 2001.

Description:

This law permits a member of the Police and Firemen's Retirement System (PFRS) who is laid off from employment as a firefighter and subsequently rehired as a firefighter in a position covered by PFRS to purchase up to three years of service credit for the time between layoff and rehire. The cost of the purchase is to be borne fully by the member and is based on the member's salary for the last 12 months of creditable service immediately preceding the involuntary separation from service.

To view the new law, click here: Chapter 228, P.L. 2001 Adobe PDF (10K)

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Chapter 227, P.L. 2001

Date Approved: August 27, 2001.

Effective Date:   August 27, 2001.

Description:

This law clarifies the requirements of Chapter 415, P.L. 1995, which requires health insurers which cover groups of 51 or more persons and health maintenance organizations to provide benefits for Pap smears. This law stipulates that the required health insurance coverage shall include coverage for any confirmatory test when medically necessary and as ordered by the woman's physician and all laboratory costs associated with the initial Pap smear and any such confirmatory test. The purpose of the law is to assist those patients who have found that their health insurance benefits for Pap smears as mandated by State law did not fully cover all of the costs addressed by this law.

This law also requires the State Health Benefits Commission to provide these same benefits to each person covered under the State Health Benefits Program.

To view the new law, click here: Chapter 227, P.L. 2001 Adobe PDF (22K)

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Chapter 201, P.L. 2001

Date Approved: August 8, 2001.

Effective Date: 90 days following enactment (November 6, 2001).

Description:

This law allows police and firefighters who transferred to the Police and Firemen's Retirement System (PFRS) under Chapter 247, P.L. 1993, to receive full benefits under PFRS for public safety service rendered prior to the transfer without having to pay the increased cost to the system of providing those benefits. This law applies to both active and retired PFRS members.

Chapter 247, P.L. 1993, (C.43:16A-3.8 et seq.) provided for the optional transfer from the Public Employees' Retirement System (PERS) to the PFRS of all municipal police officers and firefighters, plus certain other law enforcement officers, who were not already in PFRS. Chapter 247 provided that a transferring member would receive pro-rated PFRS/PERS benefits upon retirement, unless (1) the member paid to PFRS the full cost (i.e., both the employee's and employer's share) of the accrued liability for the purchased credit, or (2) the voters of the municipality or fire district in which the transferred officer was employed approved a local referendum to adopt PFRS and assume the employer's share of any accrued liability for such transfers.

The new law provides that a PERS member who transferred to PFRS under the 1993 law will automatically receive credit toward full benefits under PFRS for the transferred PERS service. In addition, the law provides that a transferred member who paid the cost for the establishment of full PFRS credit will be reimbursed for that payment.

The additional pension liability created by this law shall be funded by recognizing additional market surplus assets as of June 30, 1999.

To view the new law, click here: Chapter 201, P.L. 2001 Adobe PDF (32K)

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Chapter 200, P.L. 2001

Date Approved: August 8, 2001.

Effective Date: September 1, 2002.

Description:

This law requires providers of most health benefits plans that include prescription drug coverage to issue to their insured members an identification card containing standardized pharmacy information.

The law would apply to any health insurance carrier, multiple employer welfare arrangement or other health benefits plan provider, or its agents (including any pharmacy benefits manager or third party administrator for a self-insured health benefits plan), that provides, administers or manages coverage for prescription drugs provided on an outpatient basis. The law explicitly would not apply to providers of Medicaid fee for service, Medicare supplemental insurance, disability income and long-term care plans, hospitality indemnity insurance, and various other plans offering restricted health benefit coverage.

The law stipulates that the card shall comply with the standards set forth in the National Council for Prescription Drug Programs Pharmacy ID Card Implementation Guide in effect at the time of card issuance or, at a minimum, contain the following information:

(1) the insured's identification number;

(2) the insured's name or, if the card is issued for another person included under the primary insured's coverage, that person's name;

(3) if required for proper claims adjudication,

• the name or identification number of the health benefits plan,
  
  
• the American National Standards Institute International Identification Number assigned to the plan's administrator or pharmacy benefits manager
  
  
• The processor control number, and
  
  
• the insured's group number;

(4) the telephone number that providers may call for pharmacy benefits assistance; and

(5) any other information needed for proper claims adjudication, except for information required to be provided on the prescription.

The law provides that a plan provider need not issue a special pharmacy identification card to an insured who has already been issued a general plan member identification card containing the information required under the law. Also, it allows providers to use data elements that are required by State or federal regulations adopted under the federal "Health Insurance Portability and Accountability Act of 1996" ("HIPAA") in place of the information required under the law.

The law directs a plan provider to issue to each primary insured a new pharmacy identification card within 180 days after a change in the insured's coverage that changes the information required to be included on the card, if necessary for proper claims adjudication. The plan provider would not, however, have to issue a new card more than once in a calendar year.

The Commissioner of Banking and Insurance shall adopt rules and regulations to administer this act.

To view the new law, click here: Chapter 200, P.L. 2001 Adobe PDF (18K)

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Chapter 189, P.L. 2001

Date Approved: July 31, 2001.

Effective Date: Ju1y 31, 2001.

Division's Section(s) Affected by this Law: SHBP.

Description:

This law extends similar health benefit waiver provisions applicable to municipal employers under Chapter 259, P.L. 1995 to municipal authorities. Unlike Chapter 259, which applied to municipalities that participated in either the SHBP or another group health plan, this law only applies to municipal authorities that participates in the SHBP.

It provides that a municipal authority created by a municipality under the municipal sewerage authorities law, N.J.S.A. 40:14A-1 et seq., or the municipal and county utilities authority law, N.J.S.A. 40:14B-1 et seq., which participates in the State Health Benefits Program (SHBP) may allow any employee who is eligible for coverage as a dependent of the employee's spouse under that program or under another health benefits plan offered by the spouse's employer, whether a public or private employer, to waive the SHBP coverage to which the employee is entitled by virtue of employment with the municipal authority. In consideration of filing such a waiver, a municipal authority may pay to the employee annually an amount, to be established in the sole discretion of the authority, which shall not exceed 50% of the amount saved by the authority because of the employee's waiver of coverage. Current law permits any municipality participating in SHBP to offer such a waiver incentive.

Under this law, an employee who waives coverage will be permitted to immediately resume coverage if the employee ceases to be covered through the employee's spouse for any reason, including, but not limited to, the retirement or death of the spouse or divorce. An employee who resumes coverage will repay, on a pro rata basis, any amount received from the municipal authority which represents an advance payment for a period of time during which coverage is resumed.

The law also provides that the decision of a municipal authority to allow its employees to waive SHBP coverage and the amount of consideration to be paid therefor will not be subject to the collective bargaining process.

To view the new law, click here: Chapter 189, P.L. 2001 Adobe PDF (14K)

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Chapter 128, P.L. 2001

Date Approved: June 28, 2001.

Effective Date: June 28, 2001.

Division's Section(s) Affected by this Law: Retirements, Enrollments, Client Services.

Description:

This law expands the definition of veteran in the Teachers' Pension and Annuity Fund (TPAF), the Public Employees' Retirement System (PERS) and the Police and Firemen's Retirement System (PFRS) to include persons who served in the armed forces of the United States in peace-keeping operations in Somalia and the Republic of Bosnia and Herzegovina.

The law defines as a veteran any person who served in:

1. Operation "Restore Hope" in Somalia, commencing on or after December 5, 1992, or the date of inception of that operation as proclaimed by the President of the United States or the Congress, whichever date is earlier, and terminating on March 31, 1994, or the date of termination as proclaimed by the President of the United States or the Congress, whichever date is later, for at least 14 days, continuously or in the aggregate, in Somalia or on board any ship actively engaged in patrolling the territorial waters of that nation during the specified period; or
   
2. Operations "Joint Endeavor" and "Joint Guard" in the Republic of Bosnia and Herzegovina, commencing on or after November 20, 1995 or December 20, 1996, as the case may be, and terminating on December 20, 1996 or on such date as the United States Secretary of Defense may designate, as the case may be, who served in direct support of one or both of the operations for at least 14 days, continuously or in the aggregate, and was deployed in that nation or in another area in the region, or was on board a United States naval vessel operating in the Adriatic Sea, or operated in airspace above the Republic of Bosnia and Herzegovina.

Any person receiving an actual service-incurred injury or disability will be classed as a veteran whether or not that person completed the 14 days service requirement.

The definition of veteran in other sections of New Jersey law concerning civil service and property tax credits has already been changed to include these individuals by Chapter 49, P.L. 1998.

The State shall be liable for any increased pension cost to local employers resulting from this law.

To view the new law, click here: Chapter 128, P.L. 2001 Adobe PDF (62K)

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Chapter 127, P.L. 2001

Date Approved: June 28, 2001.

Effective Date: June 28, 2001.

Division's Section(s) Affected by this Law: Retirements, Enrollments, Client Services.

Description:

This law extends eligibility for certain veterans' benefits to veterans of the Lebanon Crisis of 1958.

Specifically, the law defines as a veteran any person who has served in Lebanon on or after July 1, 1958 or on board any ship actively engaged in patrolling the territorial waters of that nation for a period, continuous or in the aggregate, of at least 14 days commencing on or before November 1, 1958 or the date of termination of that conflict, as proclaimed by the President of the United States or Congress, whichever date of termination is later, in such active service. Any person receiving an actual service-incurred injury or disability shall be classed as a veteran whether or not that person has completed the 14 days' service provided by the law.

The benefits such a person would be eligible for include:

• Absolute civil service preference under Title 11A of the New Jersey Statutes,

• A veteran's retirement allowance under the Teachers' Pension and Annuity Fund (TPAF) or the Public Employees' Retirement System (PERS), and the purchase of additional military service credit in the Police and Firemen's Retirement System (PFRS), TPAF and PERS, and

• The annual personal property tax exemption provided for by Article VIII of the New Jersey Constitution.

The inception and termination dates for the Lebanon Crisis in the law are those recognized by the United States Department of Defense for this operation.

The State shall be liable for any increased pension cost to local employers resulting from this law.

To view the new law, click here: Chapter 127, P.L. 2001 Adobe PDF (62K)

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Chapter 133, P.L. 2001

Date Approved: June 29, 2001.

Effective Date: October 1, 2001.

Division Section(s) Affected by this Law: Financial Services, Retirements, MIS, Client Services.

Description:

This law increases the retirement benefits under the Teachers' Pension and Annuity Fund (TPAF) and the Public Employees' Retirement System (PERS) for service, deferred and early retirement by changing the formula from 1/70 to 1/64 of final compensation for each year of Class A service and from 1/60 to 1/55 of final compensation for each year of Class B service. The law also increases the retirement benefit for TPAF and PERS veteran members with 35 or more years of service and reduces the age qualification for this veteran's retirement benefit from 60 to 55. The law further provides that existing retirees and beneficiaries would also receive a comparable percentage increase in their retirement allowances (9.09%).

This law also provides up to a 2% reduction in TPAF member contributions beginning with calendar year 2002. At present, the TPAF member rate of contribution is 4.5%. After calendar year 2001, the rate of contribution will be reduced equally with employer normal contributions, but not by more than 2%, from excess valuation assets if the State Treasurer determines that excess valuation assets will be used to reduce normal contributions by the State. This change provides that future reductions in TPAF and PERS member contribution rates will be calculated in a similar fashion.

To fund the additional accrued liability for the increased benefits, the law provides that the actuarial value of assets for both TPAF and PERS, for the valuation period ending June 30, 1999, will be the full market value of the assets as of that date.

To fund the additional annual employer normal contribution for the increased benefits, the law establishes a benefit enhancement fund for both TPAF and PERS which would be funded by excess valuation assets beginning with the valuation period ending June 30, 1999. The amount of excess assets credited to the fund cannot exceed the amount of member contributions for the fiscal year in which the normal contributions are payable. To prevent over funding, the amount of excess valuation assets that can be credited to the benefit enhancement fund is limited to the present value of the expected additional normal contributions for the increased benefits over the expected working lives of the active members for the valuation period. No additional excess valuation assets will be credited to the benefit enhancement fund after the maximum amount is attained. If the assets in the benefit enhancement fund are insufficient to pay the normal contribution for the increased benefits for a valuation period, the State will pay the amount of the normal contribution for both the State and local employers not covered by assets from the benefit enhancement fund.

To view the new law, click here: Chapter 133, P.L. 2001 Adobe PDF (53K)

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Chapter 120, P.L. 2001

Date Approved: June 26, 2001.

Effective Date: June 26, 2001, but inoperable till July 26, 2001.

Division's Section(s) Affected by this Law: Retirements, MIS, Client Services.

Description:

This law provides an additional option for payment of a retirement allowance to members of the Teachers' Pension and Annuity Fund (TPAF) and the Public Employees' Retirement System (PERS).

At the time of retirement, in lieu of a maximum retirement allowance providing the highest payment for the retiree's lifetime and no survivor benefit; TPAF and PERS members may choose to receive a reduced retirement and provide a beneficiary with a benefit under one of four existing options. Under Options 2, 3 and 4, if a beneficiary predeceases the retiree, the retiree's retirement allowance remains unchanged.

This law establishes a fifth option. Under this new option, a TPAF or PERS member may choose an actuarially reduced retirement allowance in order to provide a beneficiary an allowance equivalent to the full amount, three-quarters, one-half or one-quarter of the reduced allowance. If the beneficiary dies before the retiree, the retiree's allowance will increase to the maximum amount. The total benefit under this "pop-up survivor option" will be calculated and certified by the actuary to be of equivalent actuarial value to the member's maximum retirement allowance.

To view the new law, click here: Chapter 120, P.L. 2001 Adobe PDF (21K)

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Chapter 74, P.L. 2001

Date Approved: April 30, 2001.

Effective Date: April 30, 2001.

Division's Section(s) Affected by this Law: Retirements, Death Claims, Client Services.

Description:

Chapter 205, P.L. 1997, enabled members of the Judicial Retirement System (JRS) to purchase optional contributory death benefit coverage. JRS members had one year from the effective date of that act to select such coverage. This law amends the statutes to give JRS members 90 days after the State House Commission approves any insurance contract or program for optional contributory death benefit coverage to select such coverage. This law also amends the statutes to provide that the coverage may exceed one and one-half times the compensation received by the member in the last year of creditable service.

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Chapter 86, P.L. 2001

Date Approved: May 8, 2001.

Effective Date: May 8, 2001.

Division's Section(s) Affected by this Law: Death Claims.

Description:

This law extends the active death benefits provided in N.J.S.A. 43:16A-9, as increased under Chapter 148, P.L. 1999, to a widow or widower, child or dependent parent, of a member of the Police and Firemen's Retirement System (PFRS) who died in active duty on or after January 1, 1998 and before January 18, 2000 (the effective date of Chapter 148, P.L. 1999). The law requires an eligible beneficiary to apply for the increased benefits within 90 days after the bill's enactment and to return to the system the member's aggregate contributions received under the law prior to Chapter 148, P.L. 1999. The benefits provided under the law will be prospective only, and not retroactive to the date of death of the member. The State will be liable for all costs to the retirement system attributable to this law.

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Chapter 79, P.L. 2001

Date Approved: May 4, 2001.

Effective Date: 120^th day following enactment (September 1, 2001).

Division's Section(s) Affected by this Law: Enrollments, Board and Trustee, MIS.

Description:

This law transfers the Bureau of Parole in the Department of Corrections to the State Parole Board, consolidating the two agencies under one direct authority.

Among other things, the law contains a provision that amends N.J.S.A. 43:16A-1.2 in the Police and Firemen's Retirement System statutes. It merely replaces the reference to the Bureau of Parole in the Department of Corrections and replaces it with the State Parole Board.

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Chapter 44, P. L. 2001

Date Approved: March 29, 2001.

Effective Date: March 29, 2001.

Division Section(s) Affected by this Law: Financial Services.

Description:

This law reduces by $150 million the Police and Firemen's Retirement System (PFRS) normal contribution due to be paid by local government employers in April of 2001.

Under previous law, the 2001 PFRS normal contribution for local employers was approximately $225 million. Very favorable investment returns on pension assets in recent years generated sufficient excess assets to eliminate normal contributions from those employers in 2002. This law allows for the recognition of additional surplus investment returns on pension assets to reduce local employer normal contributions in 2001. The law will reduce the April 2001 local government employer cost of approximately $225 million by $150 million. Savings realized by counties and municipalities as a result of the reduction will be required to be used for property tax relief.

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Chapter 6, P. L. 2001

Date Approved: January 16, 2001.

Effective Date: January 16, 2001.

Division's Section(s) Affected by this Law: Enrollments.

Description:

This law allows a member of the Public Employees' Retirement System (PERS) or a member of the Teachers' Pension and Annuity Fund (TPAF) to transfer all service credit between the two retirement systems even though there was a period, not to exceed two years, of dual membership.

Prior to this law, a transfer of service credit between PERS and TPAF was allowed only if there was no period of overlapping membership. If not vested in both accounts, this law allows a two year window in which to make the transfer.

The overlap between systems allowed under the law does not create any possibility of allowing service credit to two systems, or double service credit to any one system, for service during the same calendar period. N.J.S.A. 18A:66-15 (concerning TPAF) and N.J.S.A. 43:15A-39 (concerning PERS) each provide that not more than one year shall be credited for all service in a calendar year.

This law is effective immediately.

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Chapter 5, P.L. 2001

Date Approved: January 16, 2001.

Effective Date: July 1, 2001.

Division's Section(s) Affected by this Law: Board Section. Legal/Legislative Affairs.

This law revises New Jersey's "Administrative Procedure Act" (APA) to enhance access to the rule-making process. The provisions of the law are summarized as follows:

Table of fees, penalties, etc.: Each agency would have to include, in the publication of its rules of practice, a table of all permits and their fees, violations and penalties, deadlines, processing times and appeals procedures.

Quarterly calendar of anticipated rule-making activity: Each agency would have to publish in the New Jersey Register a quarterly calendar setting forth its anticipated rule-making activities for the next six months. An agency wishing to add a rule-making activity to its calendar would have to publish an amended calendar and delay that activity until at least 45 days after that publication. This provision shall not apply to rule making:

1. required or authorized by federal law when failure to adopt rules in a timely manner will prejudice the State;
   
2. subject to a specific statutory authorization requiring promulgation in a lesser time period;
   
   
3. involving an imminent peril subject to provisions of subsection (c) of section 4 of Chapter 410, P.L. 1968 (C.52:14B-4);
   
   
4. for which the agency has published a notice of pre-proposal of a rule in accordance with rules adopted by the Director of the Office of Administrative Law; or
   
5. for which a comment period of at least 60 days is provided.

A proposed rule falling within any of the exceptions to the provisions of this subsection shall so indicate in the notice of proposal.

Notice of intended action: Each agency proposing to adopt or change a rule would have to provide the 30-day notice of its intention to the news media covering the State House Complex, and electronically through the Internet.

Extension of public comment period: If, within 30 days of the publication of a proposed rule, there is sufficient public interest in an extension of time for public comment, an agency would have to allow an additional 30 days' comment period. The agency could not adopt the proposed rule until the end of the 30-day extension.

Broadening of public hearing requirement: Currently, an agency is required to hold a public hearing on a proposed rule only at the request of a committee of the Legislature or a governmental agency or subdivision within 15 days after publication of the proposed rule in the Register. The law extends the deadline for such a request to the 30th day after publication, and would also require the agency to hold a hearing if "sufficient public interest" is shown.

Petition to adopt or change a rule: An agency that receives a petition to adopt, amend or repeal a rule would have 60 days (rather than the current 30) to respond. The law provides, however, that if the petition is granted, rule-making proceedings shall be initiated within 90 days. It also authorizes the agency, instead of denying or granting the petition, to refer the matter for further study to be concluded within 90 days of the referral.

If the agency doesn't act within this time frame, then upon the petitioner's written request, the Director of the Office of Administrative Law (OAL) would have to order a public hearing on the petition. The affected agency would have 15 days in which to respond by notifying the director that it will hold a public hearing within 15 days. If the agency does not so respond, the director is to schedule and publish notice of such a hearing.

Public hearings generally-recording: Instead of the verbatim transcript now required, the law authorizes a verbatim record be kept of public hearings.

Publication of legislative finding of rule inconsistency: In addition to the current duty of the OAL Director to accept for filing and publication any rule that meets the APA's requirements, the director would have to accept for publication any duly adopted concurrent resolution of the Legislature invalidating a rule in whole or in part, or prohibiting a proposed rule, in whole or in part, from taking effect.

Agency review of administrative law decisions in contested cases: The law allows an agency head, when reviewing decisions by administrative law judges in contested cases, to reject or modify findings of fact on issues of lay witness credibility only upon a determination that the findings are arbitrary, capricious, unreasonable or not supported by sufficient, competent and credible evidence in the record. In rejecting or modifying any findings of fact, the agency head must state with particularity the reasons for rejecting the findings, and make new or modified findings supported by sufficient, competent and credible evidence in the record. The law also provides that an agency head who rejects or modifies findings of fact, conclusions of law or interpretations of agency policy in a decision must state clearly the reasons for doing so.

Standard of clarity: The law requires that any proposed rule, any summary of a proposed rule, any notice of intended rule-making, or any other document submitted to the Office of Administrative Law for publication shall be subject to a "standard of clarity." That is, the document must be written in simple language, give adequate notice to affected parties with some subject matter expertise, observe standard rules of grammar, avoid cross-references and convoluted phrasing, and otherwise convey the purport and significance of its contents. The standard would not apply to rules conforming to federal or other non-State agency models; the Governor could waive application of the standard in repromulgations of rules without amendment.

"Sunsetting:" The law codifies the provisions of Executive Order No. 66 of 1978, which provides that rules are to remain in effect for no more than five years unless readopted in a rule-making procedure.

Regulatory Impact Analysis Advisory Task Force: The law creates a 17-member Regulatory Impact Analysis Advisory Task Force as an advisory body to the Governor and the Legislature, consisting of six Executive branch department heads and the Chief Administrative Law Judge (or their respective designees), six public members appointed by the Governor, at least two of whom represent business interests in the State and at least one of whom is an attorney with experience in administrative law, and four members of the Legislature, two from each House who are not of the same political party, appointed by the respective presiding officers.

The task force will review current mandates upon agencies to conduct regulatory impact analyses, and will recommend changes to these requirements appropriate to the achievement of efficiency and accessibility in the regulatory process. The task force will report its findings and recommendations to the Governor, the Senate President, and the Speaker of the General Assembly within a year of convening.

Revision and partial repeal of inoperative law (Legislative veto): The law repeals sections 2 and 4 through 7 of Chapter 27, P.L.1981 (C.52:14B-4.2 and 52:14B-4.4 through -4.7, inclusive), which are no longer operative as a result of the New Jersey Supreme Court's decision (in General Assembly of N.J. v. Byrne, 90 N.J. 376 (1982)) that they violated the State Constitution's separation of powers doctrine.

This law is effective July 1, 2001.

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Chapter 4, P. L. 2001

Date Approved: January 16, 2001.

Effective Date: April 16, 2001.

Description:

This law is intended to establish pension benefit parity for public safety officers who were not impacted by the 5% increase in the "special retirement" allowance provided to Police and Firemen's Retirement System (PFRS) retirees by Chapter 204, P.L. 1989.

This law provides for an increase in the pension allowance payable to certain previously retired members of the Consolidated Police and Firemen's Pension Fund (CPFPF), PFRS members who retired prior to December 29, 1989, the effective date of Chapter 204, and to certain past and prospective law enforcement officer (LEO) retirants under the Public Employees' Retirement System (PERS). To be eligible for the increase, a retirant from any of the specified retirement systems must have rendered at least 25 years of creditable service under the system.

The amount of the increase would be 5% of the retirant's final compensation, or such lesser amount as would provide the retirant with a total pension of 70% of final compensation.

The State is liable for any increased cost to local government employers participating in CPFPF as a result of the increase. For PFRS and PERS, the amount of the difference between the expected value and the full market value of the assets to be added to the expected value of the assets for the valuation period ending June 30, 1999 will include an additional amount of the market value of the assets sufficient to fund the unfunded accrued liability for the retirement allowances provided by the PFRS and PERS under this law.

This law is effective on April 16, 2001.

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Chapter 162, P. L. 2001

Date Approved: May 31, 2001.

Effective Date: May 31, 2001.

Description:

This bill allows the State and local government employers to offer qualified transportation fringe benefits to their own employees as an employee set-aside program. As a result, this bill provides the full advantage under the Federal Internal Revenue Code of the tax incentives for qualified transportation fringe benefits recently extended under federal tax law in the federal Transportation Equity Act for the 21st Century (TEA-21), Title IX of Pub. L.105-178.

To view the new law, click here:  Chapter 162, P.L. 2001 Adobe PDF (128K)

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Last update: March 2, 2010