The bill amends N.J.S.18A:66-2 to redefine "compensation" for the Teachers Pension and Annuity Fund (TPAF) to include additional remuneration for extracurricular activities performed by teachers outside of their regular school hours. This encompasses various activities such as preparation for public performances, contests, athletic competitions, demonstrations, displays, and club activities. However, the bill clarifies that this additional compensation will not include salary adjustments made primarily in anticipation of retirement or remuneration for temporary duties.

The intent of the bill is to ensure that teachers receive fair recognition in their pension calculations for the extra work they do beyond their standard teaching responsibilities, potentially increasing their retirement benefits. The amendments will apply to members of the retirement system who join on or after July 1, 2007, with certain exceptions for those transferring service credits from other retirement systems. The act is set to take effect on the first day of the second month following its enactment.