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 covers various 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 in their pension calculations for the extra work they perform outside of their standard teaching responsibilities, potentially increasing their retirement benefits. The amendments will apply to members of the retirement system who join on or after July 1, 2007, with certain exceptions for individuals transferring service credits or reenrolling in the system. The act is set to take effect on the first day of the second month following its enactment.