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 new definition encompasses various activities such as preparation for public performances, contests, athletic competitions, demonstrations, displays, and club activities. The bill also clarifies that this additional compensation will not cover individual salary adjustments made primarily in anticipation of retirement or remuneration for temporary duties.

The changes apply to all members of the retirement system, including those who join on or after July 1, 2007. The bill aims to ensure that teachers receive fair recognition and compensation for their contributions outside of regular teaching responsibilities, thereby enhancing their retirement benefits. The legal language that has been deleted previously excluded remuneration for temporary or extracurricular duties, which is now replaced with a broader definition that acknowledges the importance of these activities in the educational experience. The act is set to take effect on the first day of the second month following its enactment.