LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 3323
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JUNE 26, 2024
SUMMARY
Synopsis: Requires pay for extracurricular activities to be included in
compensation for TPAF purposes.
Type of Impact: Annual State expenditure increase.
Agencies Affected: Division of Pensions and Benefits in the Department of the Treasury.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Expenditure Increase Indeterminate
 The Office of Legislative Services (OLS) estimates that revising the definition of
compensation for members of the Teachers’ Pension and Annuity Fund (TPAF) to include pay
for performing extracurricular duties beyond the regular school day or the regular school year
will result in indeterminate expenditure increases to the State for local boards of education that
separate compensation for the performance of extracurricular duties from the regular
contractual salary of employees.
 The number of such boards of education, the number of impacted members, and the additional
remuneration paid to such members, as commonly determined through a collective
negotiations agreement between the employee representative and the local board of education,
will determine the expenditure increase to the State to pay the full cost of the employer
contribution owed to the Teachers’ Pension and Annuity Fund for the members by law.
BILL DESCRIPTION
This bill amends the definition of compensation for members of the Teachers’ Pension and
Annuity Fund to include additional pay for performing extracurricular duties beyond the regular
school day or the regular school year as provided in accordance with the established salary policies
of the member’s employer. Current law defines compensation as the contractual salary for services
provided as a teacher in accordance with the established salary policies of the member’s employer,
but does not include additional pay for extracurricular duties.
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
 FE to A3323
2
By law, the State is responsible for paying employer contributions to the Teachers’ Pension
and Annuity Fund, excluding administrative costs.
Under the bill, extracurricular duties include, but are not limited to, preparation for and
involvement in public performances, contests, athletic competitions, demonstrations, displays, and
club activities.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS estimates that revising the definition of compensation for members of the Teachers’
Pension and Annuity Fund to include pay for performing extracurricular duties beyond the regular
school day or the regular school year will result in indeterminate expenditure increases to the State
for local boards of education that separate compensation for the performance of extracurricular
duties from the regular contractual salary of employees.
The number of such boards of education, the number of impacted members, and the additional
remuneration paid to such members, as commonly determined through a collective negotiations
agreement between the employee representative and the local board of education, will determine
the expenditure increase to the State to pay the full cost of the employer contribution owed to the
Teachers’ Pension and Annuity Fund for the members by law.
The OLS cannot know the number of such boards of education, the number of impacted
members, nor the additional compensation pay for such members under various collective
negotiations agreements, but estimates that the expenditure increase to the State for an individual
member earning a regular contractual salary of $60,000 per year who earns an additional $2,000
annually for the performance of extracurricular duties will be approximately $676 based on the
statistics provided in the most recent publicly available actuarial valuation report for the Teachers’
Pension and Annuity Fund.
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.).