Bill
S 51
Allows certain PERS retirees to return to low-paid elective public office with their pension intact, without rejoining PERS, if federal rules allow.
Status (selected)
- Bill No.: S 51 (221st Legislature)
- Sponsors: Sen. Nilsa I. Cruz-Perez; Sen. Joseph F. Vitale (primary sponsors listed in introduced text)
- Introduced: January 9, 2025 (pre-filed for 2024‑25 session)
- Most recent reported action: Reported favorably by Senate State Government, Wagering, Tourism & Historic Preservation Committee (Dec. 1, 2025); referred to Senate Budget & Appropriations Committee.
- Other milestones (from legislative record): Passed Senate (May 29, 2025); delivered to Assembly (May 29, 2025).
Purpose
- To allow certain retirees of the New Jersey Public Employees’ Retirement System (PERS) to return to elective public office with their former employer without terminating their retirement allowance or being reenrolled in PERS, subject to specific conditions and federal qualification requirements.
Key provisions
- Reentry allowed: A former PERS member who previously received a retirement allowance (for any cause other than disability) may return to an elective public office position with the former employer — either by appointment to fill a vacancy or by election — while retaining their retirement allowance and without reenrollment in PERS.
- Conditions for eligibility:
1. The return to office must commence after the retirement allowance becomes due and payable.
2. The retiree must have attained the applicable PERS service retirement age as of their retirement date.
3. Compensation for the elective public office must be less than $12,000 per year.
- Definition: “Former employer” means the public entity from which the member most recently retired.
- Effective date / federal qualification: The provision is effective only if applying it will not jeopardize the retirement system’s qualified status under federal law; the system may be modified as necessary to preserve qualified status. The act takes effect immediately upon enactment (subject to the federal-qualified-status condition).
Who is affected
- Primary: Retirees of the New Jersey PERS who meet the age and retirement conditions and who seek to hold low‑paid elective public offices with the same public employer from which they retired.
- Secondary: PERS administration (must implement and, if necessary, adjust plan provisions to preserve federal qualification), the former public employers (municipalities, counties, boards, etc.), and potentially voters in jurisdictions where retirees seek elective posts. Fiscal impact depends on administrative implementation and any required federal compliance modifications.
Procedural / timeline notes
- The bill includes a contingency requiring that its application not endanger the retirement system’s qualified status under federal tax law; any necessary modifications must be made before the section takes effect.
- As of the most recent committee action (Dec. 1, 2025), the bill was moved to Senate Budget & Appropriations for further consideration.
Potential impacts (summary)
- Permits experienced, age‑eligible retirees to serve in low‑paid elective roles without forfeiting pension benefits, which could broaden the candidate pool for small local offices.
- Because retirees remain on benefit and are not reenrolled, the bill may have limited direct pension-contribution effects, but administrative or plan-qualification adjustments could create implementation costs or actuarial considerations. The federal-qualified-status contingency indicates the State may need to adjust plan rules to comply with IRS requirements prior to enactment.
Compiled from official sources — confirm details with the bill’s official record.
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