Bill
A 4590
Allows state retirement system members to purchase retirement credit for time enrolled in US military service academies, under existing payment rules.
Title: Permits purchase of service credit in PERS, TPAF, PFRS, and SPRS for period of enrollment in military service academy
Sponsor: Asm. Robert C. Carroll
Status (most recent actions): Reported out of Assembly State & Local Government Committee with committee amendments (1/23/2025); referred to Assembly Military & Veterans’ Affairs Committee; referred to Ways & Means (2/4/2025). Introduced in the Assembly (first listed) 6/17/2024; reprinted 1/23/25.
Purpose
- To explicitly allow members of State-administered retirement systems to purchase service credit for time they were enrolled in a U.S. military service academy (e.g., U.S. Military Academy, Naval Academy, Air Force Academy, Coast Guard Academy) for retirement credit purposes.
Key provisions and changes
- Amends statutory provisions governing prior-service credit (including N.J.S.18A:66-13 and C.43:15A-73.1) to specify that a “period of enrollment in a military service academy” is eligible military service that may be purchased for retirement credit.
- Retains existing purchase mechanics:
- A member may purchase up to 10 years (nearest years/months) of prior service; if purchasing the 10-year maximum, may buy up to 5 additional years for qualifying veteran military service.
- Purchase cost is paid into the annuity savings fund using an actuarial factor based on the member’s age, applied to current salary or highest prior compensation, whichever is greater.
- Payment may be made in installments (minimum of one-half the normal contribution) over up to 10 years.
- Employers (including the State) are not liable for making payments on behalf of members for these purchased credits.
- Clarifies financing/benefits rules:
- Members are not responsible for costs associated with financing pension adjustment benefits and retiree health care when purchasing these categories of prior service.
- Service credit purchases made by application on or after P.L.2008, c.89 are generally ineligible to be counted when determining qualification for employer‑paid retiree health care — except that purchases for military service (including academy enrollment) are excluded from that restriction (i.e., they remain eligible for consideration toward health care qualification).
- Committee amendments: technical updates to align text with current law.
Who is affected
- Current and future members of New Jersey’s State-administered retirement systems (PERS, TPAF, PFRS, SPRS) who previously were enrolled in a U.S. military service academy prior to becoming system members. Also relevant to retirees and employers insofar as purchased credit affects retirement calculations and eligibility.
Procedural/timing notes
- Companion bill: S806. Related/earlier bills: A6078, A1612, A6008 (prior sessions).
- After committee referral (Military & Veterans’ Affairs, Ways & Means), the bill would need additional committee approvals and floor votes in the Assembly and Senate (and governor’s signature) to become law.
Fiscal note
- The bill preserves the current rule that the member pays the full cost of the purchased credit; employers and the State are not required to contribute toward the purchase. Any broader actuarial or budgetary impact would depend on uptake and actuarial valuation and would be assessed in committee fiscal analysis.
Compiled from official sources — confirm details with the bill’s official record.
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