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A 5053

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

2026-2027 Regular Session Introduced by Lou Greenwald and 1 co-sponsor

Allows retired municipal code officials receiving PERS benefits to return part-time (≤20 hours/week) after 90 days without reenrolling in PERS, while keeping retirement bona fide.

Reported out of Assembly Comm. with Amendments, 2nd Reading
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Bill Summary · A 5053

Summary of Assembly Bill A-5053 (NJ, 222nd Legislature)

Purpose and intent

  • The bill permits retired municipal code officials who are receiving retirement benefits to return to part-time employment in the same role after a 90-day period without having to reenroll in the Public Employees' Retirement System (PERS).
  • It amends P.L.1966, c.217 (PERS) to create a specific pathway for such reemployment while preserving the bona fide nature of the retirement.

Key provisions and changes

  • Amends Section 27 of P.L.1966, c.217 (C.43:15A-57.2) to add a new subsection (e) allowing:
    • A former PERS member who served as a municipal code official and who received a retirement allowance (for any cause other than disability) to return to employment as a municipal code official without canceling retirement and without reenrollment in PERS, under these conditions: 1) The return begins at least 90 days after retirement. 2) The former member had attained the service retirement age applicable at retirement. 3) The former member is re-employed as a part-time employee and works no more than 20 hours per week.
    • The retirement remains a bona fide retirement; the reemployment cannot be prearranged before retirement.
    • The bill states it will apply only if federal law continues to qualify the retirement system and may require modifications to enable application.
  • The other subsections (a–d) of Section 27 remain in place, dealing with cancellations, reenrollment, and additional retirement allowances when a former member returns to employment in other scenarios, including:
    • Full reenrollment and recalculation of benefits if the reemployment triggers eligibility for PERS again (with limitations and protections described in existing subsections).
    • Special exemptions for certain employment arrangements (e.g., lower compensation, higher education positions, and term-limited contracts) and for individuals retired under specific prior provisions (e.g., a 2011/2015 framework) or positions of critical need.
  • Effective date: The act takes effect immediately upon enactment.

Who is affected

  • Retired municipal code officials who are currently drawing PERS benefits and who might wish to return to part-time work in the same role.
  • Municipal employers and hiring authorities that appoint or rehire municipal code officials in a part-time capacity.
  • The PERS program and its administration, which would implement the new reemployment arrangement without forcing reenrollment in most cases.

Procedural and timeline aspects

  • If enacted, the provision would allow reemployment to commence after a 90-day waiting period post-retirement.
  • Reemployed individuals must work no more than 20 hours per week.
  • The arrangement requires that retirement be bona fide and not prearranged.
  • The bill is prospective; it addresses future reemployment under the specified conditions and does not alter past arrangements.

Practical impact and considerations

  • Increases flexibility for municipalities to retain experienced municipal code officials in a part-time capacity after retirement.
  • Could help with workforce gaps in municipalities needing specialized code enforcement expertise on a limited-hours basis.
  • Maintains financial safeguards by requiring bona fide retirement, a 90-day waiting period, and a cap on weekly hours to limit pension windfall or dual-earning concerns.
  • Requires federal qualification of PERS under applicable law; potential administrative adjustments by the Division of Pensions and Benefits to implement the provision.

Note: This is an introductory version of the bill; the sponsor list includes Assemblymembers Karabinchak, Greenwald, and Rodriguez. The bill was introduced May 14, 2026, and amended/assigned for committee considerations in June 2026.

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

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