On Thursday, the Senate unanimously passed S-1017, which permits a PFRS employee who is enrolled before or after the bill's effective date to retire, regardless of age, upon attaining 20 or more years of service credit and would allow that employee to receive a retirement allowance equal to 50% of the member's final compensation. This benefit will expire after two years after enactment. The Assembly companion, A-2562, now awaits consideration by the Assembly Budget Committee.
As we previously reported, the League, along with the New Jersey Association of Counties, view this legislation as an enhancement of benefit at a time we can least afford it. The public safety unions are pushing this legislation in response to what they believe is a misinterpretation of the 1999 law and argued that the cost will be offset by the healthcare savings.
Funded by property taxpayer dollars, county and municipal governments across the State spent $1,038,351,129 in 2020 to subsidize the PFRS, while PFRS members contributed approximately $348,439,976 to the defined benefit plan. In other words, property taxpayers will have financed over 70% of PFRS in 2020, while PFRS members will pay 30%. Since these additional costs will be borne by taxpayers, the League opposes this legislation.
Please contact your Assembly representative and urge them to vote no A-2562.
Contact: Lori Buckelew, Assistant Executive Director, email@example.com, 609-695-3481 x112.