Sponsored by:
Senator STEPHEN M. SWEENEY
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Creates Local Part of PERS; creates board of trustees for Local Part of PERS.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the board of trustees for the Local Part of the Public Employees Retirement System and amending various parts of the statutory law and supplementing P.L.1954, c.84 (C.43:15A-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. (1) Subject to the provisions of P.L.1955, c.70 (C.52:18A-95 et seq.), the general responsibility for the proper operation of the Local Part of the Public Employees Retirement System is hereby vested in a board of trustees of the Local Part, and, as specified, the committees established pursuant to subsection e. of this section.
The board may with the approval of at least four members of the board, in its discretion and at such time and in such manner as the board determines, enhance any benefit set forth in P.L.1954, c.84 (C.43:15A-1 et seq.) as the board determines to be reasonable and appropriate or modify any such benefit as an alternative to an increase in the member contribution rate, which increase the board determines to be reasonable, necessary, and appropriate, or reinstate, when appropriate, such reduced benefit to the statutory level without an additional contribution by the member, so long as an actuarial certification provided by the actuary of the Local Part demonstrates that such change will not result in an increased employer contribution in the current year and that such change will not impact the long term viability of the fund. The board shall act exclusively on behalf of the contributing employers, active members, and retired members of the Local Part of the retirement system, as the fiduciary of the system. The primary obligation of the board shall be to direct policies and investments to achieve and maintain the full funding and continuation of the Local Part of the retirement system for the exclusive benefit of its members.
(2) The board of trustees of the Local Part shall consist of seven trustees as follows.
(a) Three trustees, to be
appointed by the Governor, who shall serve staggered terms and who either hold,
or have held, an elective public office as a mayor, member of a municipal
council, or member of a board of chosen freeholders or are employed, or have been
employed, by a municipal or county government as an administrator, manager, or
chief financial officer, to represent the interests of local government
employers. The Governor shall appoint trustees pursuant to this subparagraph
from among a list of names submitted by the New Jersey League of Municipalities
and the New Jersey Association of Counties. Two trustees appointed by the
Governor
pursuant to this subparagraph shall serve for an initial term of two years and one trustee shall serve for an initial term of four years. Following their first term, all trustees appointed pursuant to this subparagraph shall serve for a term of four years.
(b) Three trustees, appointed by the Governor, who shall serve staggered terms, from among recommendations by the Public Employee Committee of the AFL-CIO, with each trustee to represent a different collective bargaining unit that represents active members of the Local Part of the retirement system having union membership. Two trustees appointed by the Governor pursuant to this subparagraph shall serve for an initial term of three years and one trustee shall serve for an initial term of four years. Following their first term, all trustees appointed pursuant to this subparagraph shall serve for a term of four years.
(c) One trustee who is an active member of the Local Part of the retirement system, to be appointed in a manner prescribed by the board of trustees. The trustee appointed pursuant to this subparagraph shall serve for a term of four years.
(3) Each trustee shall, after appointment, take an oath of office that, so far as it devolves upon the trustee, the trustee will diligently and honestly fulfill the duties as a board member, and that the trustee will not knowingly violate or willingly permit to be violated any of the provisions of the law applicable to the Local Part of the retirement system. Such oath shall be subscribed by the trustee making it, and certified by the officer before whom it is taken, and immediately filed in the office of the Secretary of State. The board may remove a trustee, upon a majority vote of the trustees, for violating the trustee's oath of office. Any trustee who is absent, without an official excuse approved by a majority vote of the trustees, for more than three of the board's meetings in any calendar year shall be removed from the board and the trustee's position shall be filled in the same manner as the position was previously filled. The board shall adopt standards to define unexcused absences.
A trustee shall be permitted to participate in meetings of the board by teleconference.
(4) (a) If a vacancy occurs in the office of a trustee, the vacancy shall be filled in the same manner as the office was previously filled. A vacancy shall not last more than 60 days. If a vacancy lasts for more than 60 days, then the board shall appoint, upon a majority vote of the trustees then serving, a person qualified pursuant to subparagraph (a) or (b) of paragraph (2) of this subsection to fill the vacancy until a new trustee is appointed in the manner set forth in paragraph (2) of this subsection.
(b) A trustee serving pursuant to subparagraph (c) of paragraph (2) of this subsection who retires from active service may remain a trustee until a successor is appointed.
(c) Trustees appointed pursuant to paragraph (2) of this subsection shall serve at the pleasure of the official who appointed the trustee, but may be removed pursuant to paragraph (3) of this subsection.
(5) The trustees shall serve without compensation, but they shall be reimbursed for all necessary expenses that they may incur through service on the board.
(6) Each trustee shall be entitled to one vote in the board. Four trustees shall be present at any meeting of the board for the transaction of its business.
(7) Subject to the limitations of this act, P.L. , c. (C. )(pending before the Legislature as this bill), the board of trustees shall annually establish rules and regulations for the administration of the funds created by law and for the transaction of the board's business.
(8) (a) The board of trustees shall elect from its membership a chair and vice chair. The chair, or vice chair in the chair's absence, shall serve as the primary contact with board staff, shall coordinate and approve meeting agendas, and shall have the power to authorize any special staff action necessary to execute any of the board's duties. The chair and vice chair shall not have the authority to discipline or discharge an employee of the board unless authorized to take such action by a majority of the trustees at a public meeting. The board shall appoint a secretary of the board. The administration of the program shall be performed by personnel selected by the board in accordance with this section. The board shall hold an initial meeting on the first business day of the seventh month following the date of enactment of P.L. , c. (pending before the Legislature as this bill). At the initial meeting of the board, the board shall contract with the Division of Pensions and Benefits for the division to perform the administrative tasks that the division performed prior to the enactment of P.L. , c. (pending before the Legislature as this bill) and such other tasks as the board may require. The division shall receive compensation from the board for the performance of the