Bill
A 5049
The bill bars withholding PFRS retirement or death benefits solely due to pending civil litigation, with limited exceptions and post‑litigation adjustments.
Note on title
- The title supplied with the request (“Establishes the task force on education funding and property tax reform”) is inconsistent with the bill text and committee reports. The actual subject of Assembly Bill A5049 (1R) is changes to rules governing withholding of retirement and death benefits under the Police and Firemen’s Retirement System (PFRS). The summary below reflects the bill’s text and legislative reports.
Summary — A5049 (1R)
- Purpose: Limit the PFRS Board of Trustees’ ability to withhold (hold in abeyance) retirement or death benefits on the basis of pending civil litigation, while preserving and clarifying other withholding authorities and allowing post‑litigation adjustments.
Key provisions
- Prohibition on withholding for pending civil litigation:
- The Board of Trustees of the Police and Firemen’s Retirement System may not hold in abeyance a member’s retirement or death benefits solely because the member is a party to pending civil litigation. (This removes a regulatory practice that allowed withholding when civil litigation pertaining to a member’s employment was pending.)
- Exceptions retained and added:
- The board may continue to withhold benefits if the member is subject to criminal charges or has been dismissed from public employment due to administrative charges.
- Committee amendments permit the board to hold benefits in abeyance if the member is using civil litigation to challenge a final board determination to deny or adjust benefits.
- Adjustment authority:
- The bill expressly authorizes the board to adjust a member’s retirement or death benefits based on the outcome (disposition) of any legal proceeding to which the member was a party.
- Effective date: The act takes effect immediately upon enactment.
Who is affected
- Directly affected: Members and beneficiaries of the Police and Firemen’s Retirement System (police officers and firefighters covered by PFRS) who are parties to civil litigation.
- Indirectly affected: The PFRS (system financial operations) and the Department of the Treasury (overseeing the system), as the system may lose interest earnings it previously obtained on undisbursed payments.
Fiscal and administrative impact
- Office of Legislative Services (OLS) estimate: Potential annual loss of interest income to PFRS from funds that would previously have been held in abeyance. The amount is indeterminate because OLS lacks data on how many members would be affected, the amounts involved, and litigation durations.
- Administrative effect: The board’s practice must change to disburse benefits despite pending civil suits in most cases, and to implement adjustments after legal outcomes when appropriate.
Legislative status and timeline
- Introduced in Assembly: November 14, 2024.
- Reported by Assembly committees with amendments (State & Local Government; Appropriations; Budget).
- Passed both houses: Assembly (80-0) and Senate (39-0) on June 30, 2025.
- Approved and enacted as law: P.L.2025, c.157 (approved November 13, 2025). The law took effect immediately on enactment.
Sponsors and related measures
- Primary sponsors (Assembly and Senate members listed in bill text), multiple co‑sponsors across both houses.
- Companion bill: S3812.
- Prior-session related bills: A940, A9642.
Bottom line
- A5049 removes the Board of Trustees’ general authority to withhold PFRS retirement or death benefits because a member is involved in pending civil litigation, while preserving withholding for criminal or administrative dismissal circumstances, allowing withholding when a member is litigating a final board determination, and authorizing post‑litigation benefit adjustments. The main fiscal consequence is a potential, indeterminate loss of interest income to PFRS.
Compiled from official sources — confirm details with the bill’s official record.
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