LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 4751
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: OCTOBER 30, 2024
SUMMARY
Synopsis: Permits purchase of service credit in SPRS for period of enrollment in
military service academy and in New Jersey State Police Academy,
and employment as class two special law enforcement officer.
Type of Impact: Annual expenditure increase to the State General Fund.
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) finds that permitting the purchase of service credit
in the New Jersey State Police Retirement System for all or a portion of the service rendered
while enrolled in a United States military service academy, enrolled in the New Jersey State
Police Academy, or employed as a class two special law enforcement officer will increase
annual State costs by an indeterminate amount to pay for the increase in the unfunded liability
of the system and provide State paid health care coverage in retirement to members who would
not qualify for this benefit without additional years of service credit in the retirement system.
BILL DESCRIPTION
This bill allows a member of the State Police Retirement System to purchase credit in the
retirement system for the period of enrollment in a United States military academy and the New
Jersey State Police Academy, and for the period of employment as a class two special law
enforcement officer.
Under the bill, the payment to purchase additional service credit will be determined by the
actuarial factor that corresponds to the member’s age at the time of purchase, and the greater of
the member’s salary at the time of purchase or the highest annual compensation for service in this
State for which contributions were made during any prior fiscal year of membership.
The bill provides that the purchase may be made in regular installments over a period not to
exceed 10 years.
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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To be eligible to purchase credit for service for the period of employment as a class two special
law enforcement officer, the bill requires the break in service as such an officer and the enrollment
date in the retirement system to be less than 365 days.
The majority of graduates from United States military academies earn their degree in four
years. Training for the New Jersey State Police Academy lasts approximately six months. The
OLS does not know the average length of employment current State Police Retirement System
members spend as a class two special law enforcement officer before enrolling in the retirement
system.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that permitting the purchase of service credit in the New Jersey State Police
Retirement System for all or a portion of the service rendered while enrolled in a United States
military service academy, enrolled in the New Jersey State Police Academy, or employed as a
class two special law enforcement officer will increase annual State costs by an indeterminate
amount to pay for the increase in the unfunded liability of the system and provide State paid health
care coverage in retirement to members who would not qualify for this benefit without additional
years of service credit in the system.
The OLS does not know the number of members who will become eligible to purchase
additional service credit in the retirement system or the number of eligible members who will
choose to make the purchase. Therefore, the fiscal impact of the bill on the resulting annual
increase in State costs is indeterminate.
Section: State Government
Analyst: Anna Harris
Associate 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: 53:5A-6, 53:5A-6.1