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Bill

S 1401

Changes eligibility of Administrative Law Judges from DCRP to PERS.

2024-2025 Regular Session Introduced by Vin Gopal and 1 co-sponsor

New Jersey bill shifts Administrative Law Judges' retirement from a defined contribution plan to the more generous Public Employees' Retirement System, increasing state pension costs.

Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee
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Bill Summary · S 1401

Legislative bill overview

S 1401 would shift Administrative Law Judges (ALJs) in New Jersey from the Defined Contribution Retirement Plan (DCRP) to the Public Employees' Retirement System (PERS). This changes their pension structure from a contribution-based model to a traditional defined benefit pension system. The bill affects the retirement benefits and employer contributions for state ALJs going forward.

Why is this important

ALJs handle administrative hearings across state agencies, making their stable employment and compensation important for judicial independence and government operations. The shift from DCRP to PERS represents a significant change in long-term compensation—PERS typically offers more generous retirement benefits, which affects both ALJ recruitment/retention and state pension fund obligations. This change has fiscal implications for the state budget and pension liability.

Potential points of contention

  • Cost to the state: PERS typically requires higher employer contributions than DCRP, increasing long-term state pension obligations and potentially impacting the state's already-strained pension funding
  • Equity among state employees: The change raises questions about whether ALJs should receive different pension treatment than other state workers, or whether it sets a precedent for other employee groups to demand similar upgrades
  • Actuarial impact: Shifting employees to PERS affects the pension system's overall solvency calculations and could influence contribution rates for all PERS members

Compiled from official sources — confirm details with the bill’s official record.

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