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Bill

S 4266

Permits retired municipal code officials to return to part-time employment after 90-day period without reenrollment in PERS.

2026-2027 Regular Session

Allows a former PERS municipal code official to return part-time (up to 20 hours/week) within 3 years of retirement after 90 days, without reenrolling in PERS.

Referred to Senate Budget and Appropriations Committee
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Bill Summary · S 4266

Summary of Bill: S 4266 (New Jersey, 222nd Legislature)

Purpose and Intent

  • The bill allows a former municipal code official who has retired from the Public Employees' Retirement System (PERS) to return to work in a part-time municipal code official role after a 90-day waiting period, without needing to reenroll in PERS.
  • This creates a streamlined path for retirees to resume limited municipal employment while maintaining their prior retirement status, subject to specific conditions.

Key Provisions

  • Scope and applicability (new subsection e. to N.J.S.A. 43:15A-57.2):

    • Applies to a former member who served as a municipal code official and received a retirement allowance for non-disability reasons.
    • The retiree may return to employment as a municipal code official within three years after the retirement date.
    • The return-to-work arrangement must meet three conditions:
    • The return begins no fewer than 90 days after retirement.
    • The retiree had reached the service retirement age (as of retirement).
    • The retiree is re-employed as a part-time employee, working no more than 20 hours per week.
    • The retiree’s retirement remains bona fide; employment under this provision cannot be prearranged before retirement.
    • The retiree may continue in the position under the same rules as a part-time employee, with no cancellation of the retirement and no reenrollment in the retirement system.

  • Conditions and limitations:

    • The bill explicitly states that the status and eligibility for retirement benefits are preserved, and the return-to-work is contingent on maintaining federal qualification for the retirement system.
    • This subsection is designed to permit limited rehiring while avoiding the need for reenrollment in PERS.

  • Other related provisions (existing framework retained):

    • Subsection (a) describes the general rule that if a former member returns to a position making them eligible for the retirement system, their retirement and death benefits are canceled until retirement again, with re-enrollment and adjustment of benefits following subsequent retirement. This continues to apply unless overridden by subsection (e).
    • Subsections (b), (c), and (d) set forth exceptions to the cancellation/reenrollment framework for limited-employment scenarios (e.g., low compensation, certain public higher education positions, critical-need positions, and specific timing constraints after retirement). These existing carve-outs guide how and when re-employment can occur without triggering full reenrollment.

  • Effective date:

    • The act takes effect immediately upon enactment.

Who Is Affected

  • Former municipal code officials who are current retirees (from PERS) and meet the specified criteria (retired for non-disability reasons, within three years of retirement, service retirement age reached, part-time status, up to 20 hours/week).

Procedural and Timeline Aspects

  • Timing to re-employment:

    • Must begin no fewer than 90 days after retirement.
    • The window for returning to work is within three years of retirement.

  • Employment cap and structure:

    • Part-time limit of 20 hours per week.
    • Return-to-work status must be bona fide and not prearranged.

  • Administrative oversight:

    • The Director of the Division of Pensions and Benefits may adjust certain margins (e.g., in subsection b) to reflect changes in index percentages, consistent with existing law.

Practical Impact and Considerations

  • Provides municipalities with a mechanism to re-hire experienced municipal code officials on a limited, part-time basis without complicating retirement benefit administration.
  • Potentially increases workforce flexibility for municipal code enforcement and related duties while preserving retirement system integrity.
  • Could affect budgeting for municipalities and retirees if there are overlapping roles or scheduling considerations, though the 20-hour cap and 90-day waiting period aim to keep arrangements tightly controlled.

If you’d like, I can provide a quick comparison with current law text to highlight exactly how the new subsection (e) alters the status quo.

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

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