Sponsored by:
Senator ANDREW ZWICKER
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Senator BOB SMITH
District 17 (Middlesex and Somerset)
SYNOPSIS
Permits purchase of service credit in PERS for time served as Eagleton Science and Politics Fellow.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the purchase of certain service credit in the Public Employees Retirement System for certain service as an Eagleton Science and Politics Fellow and supplementing chapter 15A of Title 43 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Notwithstanding the provisions of any other law to the contrary, a member of the Public Employees' Retirement System pursuant to P.L.1954, c.84 (C.43:15A-1 et seq.) who, prior to service in the position of employment which first made them eligible for enrollment in the Public Employees Retirement System, was a participant in the Eagleton Science and Politics Fellowship Program at the Eagleton Institute at Rutgers, the State University, as an Eagleton Science and Politics Fellow, may purchase service credit for time spent in the fellowship program as a fellow, but not to exceed one year, by agreeing to make contributions covering the service.
The member may purchase service credit for the service by paying into the annuity savings fund the amount required by applying the factor, supplied by the actuary as being applicable to the members age at the time of the purchase, to the members salary at that time, or to the highest annual compensation for service in this State for which contributions were made during any prior fiscal year of membership, whichever is greater. The purchase may be made in a lump sum or in regular monthly installments pursuant to formulas, rules, and regulations as the Division of Pensions and Benefits may establish. At a minimum, the member shall submit to the division a statement of service, detailing the members time and the nature of service in the fellowship program, signed and attested to by the Director of the Eagleton Institute of Politics.
No application shall be accepted for the purchase of credit for the service if, at the time of application, the member has a vested right to retirement benefits in another retirement system based in whole or in part upon that service.
The employer shall not be liable for payment to the division for any payment to the division made for the purchase of this credit. All contributions required with respect to the liability created by the purchase of this credit shall be made by the member.
Any member electing to make a
purchase pursuant to this section who retires prior to completing payments as
agreed with the division will receive pro rata credit for the purchase prior to
the date of retirement, but if the member so elects at the time of retirement
and such request is approved by the division, the member may make the
additional lump sum payment as required by the division at that time to provide
full credit.
2. This act shall take effect immediately.
STATEMENT
This bill allows for any current or future member of the Public Employees Retirement System (PERS) to purchase service credit for time they previously spent in the Eagleton Science and Politics Fellowship Program at the Eagleton Institute of Politics at Rutgers, the State University, as a fellow. Members may purchase up to one year of service credit for this time by agreeing to pay the contributions required to cover the time in service.
The bill provides that the member will be required to submit to the Division of Pensions and Benefits a statement, signed and attested to by the Director of the Eagleton Institute of Politics, detailing their time and the nature of their service in the fellowship program.
The member will not be eligible to purchase this additional service if the member has a vested right to retirement benefits in another retirement system based in whole or in part upon that service.
The public employer will not be responsible for any contributions to the retirement system based upon the members prior service in the fellowship program.