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Bill

S 4744

Permits certain elected municipal officials to be deemed retired for pension purposes upon forfeiting compensation for that position.

2024-2025 Regular Session Introduced by Joe Cryan

NJ bill lets certain elected municipal officials retire from the state pension while staying in office, if the pension is not solely for that office and they forfeit compensation.

Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee
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Bill Summary · S 4744

Summary of Bill S 4744

Purpose and intent

S 4744 would allow certain elected municipal officials in New Jersey to retire from the state retirement system while continuing to hold their elected office, provided the retirement allowance is not based solely on service in that office and the official voluntarily forfeits and stops receiving any compensation from that office. The bill states that it would be effective only to the extent federal qualification of the retirement system can be maintained, with any available program modifications made to enable its application.

Key provisions

  • Section 1 (Public employee retirement system member)

    • A member serving as an elected municipal official on the bill’s effective date may retire while still holding that elected office if:
    • The retirement allowance is not solely based on service in that elected office, and
    • The member voluntarily forfeits and ceases to receive any compensation associated with that office.
    • The Department of the Treasury must issue rules under the Administrative Procedure Act to implement the section.
    • The provision becomes effective only if federal qualification of the retirement system is preserved, with possible program modifications to allow implementation.

  • Section 2 (Retirement program participant)

    • A participant in the retirement program who is an elected municipal official on the bill’s effective date may retire while still holding that office if:
    • The retirement allowance is not solely based on service in that elected office, and
    • The participant voluntarily forfeits and ceases to receive any compensation from that office.
    • The Department of the Treasury must issue implementing rules under the Administrative Procedure Act.
    • The provision becomes effective only if federal qualification of the retirement program is preserved, with possible program modifications to allow implementation.

  • Section 3

    • The act would take effect immediately.

Who would be affected

  • Eligible individuals currently serving as elected municipal officials who are participants in New Jersey’s state retirement system or its related retirement program, provided they meet the “not solely based on service in that office” criterion and voluntarily forego compensation from the office.

Procedural and timeline aspects

  • Status: Introduced in the Senate and referred to the Senate State Government, Wagering, Tourism & Historic Preservation Committee.
  • Introduced date: February 12, 2025.
  • Regulatory actions: Requires the Department of the Treasury to draft and adopt rules under the Administrative Procedure Act to implement the measure.
  • Federal qualification condition: The bill’s effectiveness depends on maintaining qualified status of the retirement system under federal law; modifications may be needed to enable application.

Sponsors and related actions

  • Primary sponsors: Joseph P. Cryan; Cordell Cleare.
  • Senate cosponsors: Dean Murray; Patricia Canzoneri-Fitzpatrick; Pamela Helming.
  • Related bills: S 7786 (from prior session).

Practical implications

  • Creates a framework for “retire-while-serving” in municipal offices, aiming to prevent double-dipping while allowing seasoned elected officials to retire for pension purposes without forfeiting their remaining elected duties (subject to compensation forfeiture and federal qualification constraints).
  • Implementation depends on regulatory rules and federal pension qualification status, which may affect timing and scope.

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

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