This bill amends N.J.S.18A:66-2 to expand the definition of "compensation" for the Teachers Pension and Annuity Fund (TPAF) to include additional remuneration for extracurricular activities performed by teachers beyond their regular school hours or year. The bill specifies that qualifying extracurricular duties encompass preparation for public performances, contests, athletic competitions, demonstrations, displays, and club activities. Importantly, it clarifies that this additional compensation will not cover individual 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 undertake outside of their standard teaching responsibilities. By incorporating this additional pay into the definition of compensation, the bill aims to enhance retirement benefits for educators who play a crucial role in student engagement and development through extracurricular activities. The changes will take effect on the first day of the second month following the bill's enactment.