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Bill

Bill

S 2013

Makes local government business administrators eligible for membership in PERS; provides for transfer from Defined Contribution Retirement Program to PERS.

2024-2025 Regular Session Introduced by Tony Bucco and 4 co-sponsors

Bill expands New Jersey's PERS pension eligibility to local government business administrators and allows transfers from defined contribution accounts into the defined benefit plan.

Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee
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Bill Summary · S 2013

Legislative bill overview

Senate Bill 2013 expands eligibility for New Jersey's Public Employees' Retirement System (PERS) to include local government business administrators, a position currently excluded from this pension plan. The bill also creates a mechanism allowing affected employees to transfer accumulated benefits from the Defined Contribution Retirement Program (DCRP) into PERS.

Why is this important

This change directly affects compensation and retirement security for local government business administrators across New Jersey municipalities. It also has fiscal implications for PERS funding, as shifting employees from a defined contribution plan (which shifts investment risk to employees) to a defined benefit plan (which guarantees specific pension amounts) increases long-term pension liabilities for local governments and the state system.

Potential points of contention

  • Fiscal Impact: Transferring employees to PERS increases unfunded pension liabilities; local governments must absorb higher contribution rates, potentially affecting municipal budgets and taxpayers
  • Equity Concerns: Questions about why business administrators were excluded initially and whether this creates fairness issues for other municipal positions not covered by PERS
  • Actuarial Soundness: Critics may argue adding new members to an already underfunded system worsens PERS's financial health without addressing underlying solvency issues

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

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