The bill amends N.J.S.18A:66-2 to expand the definition of "compensation" for the Teachers' Pension and Annuity Fund (TPAF) to include remuneration for extracurricular activities performed by teachers beyond their regular duties. This includes pay for participation in public performances, contests, athletic competitions, demonstrations, displays, and club activities. The amendment applies to all members of the retirement system, including those who join on or after July 1, 2007. The bill also removes previous language that excluded extracurricular duties from the compensation definition, thereby allowing for a more comprehensive understanding of educators' contributions to their students' educational experiences.

Furthermore, the bill clarifies that the new definition of compensation will not account for individual salary adjustments made primarily in anticipation of retirement or for temporary duties. By incorporating this additional pay into pension calculations, the bill aims to ensure that teachers receive fair recognition and benefits for their extra work outside of standard teaching responsibilities. The act is set to take effect on the first day of the second month following its enactment.