The 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. This includes compensation for duties related to public performances, contests, athletic competitions, demonstrations, displays, and club activities. The amendment clarifies that this additional compensation will not cover salary adjustments made primarily in anticipation of retirement or remuneration for temporary duties. The previous definition of "compensation" excluded such remuneration, which has now been revised to recognize the contributions of teachers in these areas.

The changes apply to all members of the retirement system, including those who join after July 1, 2007. By including this additional pay in the pension calculations, the bill aims to ensure that teachers are fairly compensated for their extra work, thereby enhancing their retirement benefits. The act is set to take effect on the first day of the second month following its enactment, reflecting a commitment to valuing the important role of extracurricular activities in the educational experience.