LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 5469
STATE OF NEW JERSEY
220th LEGISLATURE220th LEGISLATURE
DATED: DECEMBER 11, 2023
SUMMARY
Synopsis: Provides for purchase of PFRS credit for service as class two special
law enforcement officer.
Type of Impact: Potential State and local cost increases.
Agencies Affected: Division of Pensions and Benefits in the Department of the Treasury.
Office of Legislative Services Estimate
Fiscal Impact Year 1 Thereafter
Potential State Cost Increase None Indeterminate
Potential Local Cost Increase None Indeterminate
The Office of Legislative Services (OLS) estimates that this bill will have no impact on the
Police and Firemen’s Retirement System in the first year following enactment because the bill
requires the retirement system member to cover both the employee and employer cost of
service credit.
The OLS does not have the information to determine the number of members who served as
class two special law enforcement officers in the State prior to becoming eligible to participate
in the Police and Firemen’s Retirement System nor the number of such members who would
choose to purchase credit. However, the OLS anticipates that requiring members to be
appointed to a position covered by the Police and Firemen’s Retirement System fewer than
120 days after leaving service as a class two special law enforcement officer and restricting for
current members the application window for the purchase of credit to one year from the bill’s
enactment date will limit the number of applications.
The OLS acknowledges that permitting members to purchase credit for prior service as a class
two special law enforcement officer may result in such members attaining the 25 year service
threshold required to qualify for employer paid post-retirement medical benefits before the
member otherwise would have, but maintains that the requirements cited in the preceding
paragraph will limit the number of members who are able to accelerate qualification for
employer paid post-retirement medical benefits through the mechanism provided in this bill.
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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The OLS therefore anticipates that the bill’s provisions will have a modest or no impact on the
Police and Firemen’s Retirement System.
BILL DESCRIPTION
This bill allows members of the Police and Firemen’s Retirement System to purchase credit
for service as a class two special law enforcement officer with a public employer in the State prior
to membership in the Police and Firemen’s Retirement System.
Current law enables members of the Police and Firemen’s Retirement System to purchase
credit for public employment rendered in other states, with the federal government, or for military
service in the Armed Forces of the United States, not to exceed 10 years. Applicants are required
to cover both the employee and employer share of the cost for such prior service.
The bill extends these and other provisions of current law to the purchase of credit in the Police
and Firemen’s Retirement System for prior service as a class two special law enforcement officer
contingent upon a break between such service and the date of appointment to a position covered
by the Police and Firemen’s Retirement System of fewer than 120 days. Currently enrolled
members will have one year from the bill’s effective date to apply for a purchase.
Class two special law enforcement officers are required to complete a course approved by the
Police Training Commission. They receive instruction in physical fitness, criminal law, patrol
concepts, firearms, vehicle operations, defensive tactics, handcuffing, and arrest, search, and
seizure. They have similar powers to that of full-time police officers but on a restricted basis.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS estimates that this bill will have no impact on the Police and Firemen’s Retirement
System in the first year following enactment because the bill requires the retirement system
member to cover both the employee and employer cost of service credit.
The OLS does not have the information to determine the number of members who served as
class two special law enforcement officers in the State prior to becoming eligible to participate in
the Police and Firemen’s Retirement System nor the number of such members who would choose
to purchase credit. However, the OLS anticipates that requiring members to be appointed to a
position covered by the Police and Firemen’s Retirement System fewer than 120 days after leaving
service as a class two special law enforcement officer and restricting for current members the
application window for the purchase of credit to one year from the bill’s enactment date will limit
the number of applications.
The OLS acknowledges that permitting members to purchase credit for prior service as a class
two special law enforcement officer may result in such members attaining the 25 year service
threshold required to qualify for employer paid post-retirement medical benefits before the
member otherwise would have, but maintains that the requirements cited in the preceding
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3
paragraph will limit the number of members who are able to accelerate qualification for employer
paid post-retirement medical benefits through the mechanism provided in this bill.
The OLS therefore anticipates that the bill’s provisions will have a modest or no impact on the
Police and Firemen’s Retirement System.
Section: State Government
Analyst: Anna Harris
Assistant Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).
Statutes affected: Introduced: 43:16A-11.11