This 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 beyond their regular school hours or year. The bill specifies that this additional compensation will cover activities such as preparation for public performances, contests, athletic competitions, demonstrations, displays, and club activities. However, it clarifies that this additional pay 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 and compensation for their contributions outside of standard classroom responsibilities, which could lead to increased retirement benefits. The amendments will apply to members who join the retirement system on or after July 1, 2007, with certain exceptions for individuals transferring service credits or reenrolling in the system. Overall, the bill aims to provide a more comprehensive understanding of what constitutes a teacher's compensation for pension purposes, reflecting the significance of extracurricular involvement in the educational experience. The act is set to take effect on the first day of the second month following its enactment.