WeVote
Log In

Bill

Bill

S 3997

Relates to amending the low income housing tax credit eligibility requirements

2025 Regular Session Introduced by Kevin Parker

Consolidates PERS to Tier 1 for all non-retired members, auto-enrolls eligible workers, transfers DCRP service credits to PERS (opt-out allowed), expands LTD disability retirements.

REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
0
WeVote Research Nonpartisan
Bill Summary · S 3997

Summary of S 3997 (Introduced Jan 14, 2025)

Note on discrepancy: The bill’s title indicates it relates to amending low income housing tax credit eligibility. The introduced text, however, is focused on benefits and membership provisions for the Public Employees’ Retirement System (PERS) in New Jersey. The summary below reflects the introduced content as written, with a note on the mismatch between the stated title and the bill’s actual provisions.

Purpose and intent

  • The bill seeks to modify PERS membership and benefit rules, effectively reducing the number of distinct PERS membership tiers by transferring all current non-retired members to Tier 1 and expanding eligibility in several ways for public employees.
  • It also provides for automatic retirement-system enrollment and transfer of service credits for certain employees, and expands disability retirement eligibility for LTD beneficiaries.

Key provisions

Section 1

  • a) All current, non-retired PERS members would be entitled to the same benefits as Tier 1 members, regardless of existing tier distinctions.
  • b) Public employees who earn above the minimum salary but do not meet minimum work-hour requirements would be enrolled in PERS as Tier 1 members. Employers must enroll affected employees within 60 days after the act’s effective date.
  • c) DCRP participants on the act’s effective date would be automatically transferred to PERS unless they opt out:
    • (1) Automatic transfer of all years of service credit to PERS upon enrollment.
    • Years of service transferred would qualify the member for retirement and health benefits in PERS, but would not count toward calculating the pension amount under PERS. Prior DCRP contributions would stay in the DCRP fund.
    • (2) A notice of this automatic transfer would be sent within 60 days after enactment.
    • (3) DCRP participants could opt out within six months of the notice; those who opt out remain in DCRP.
  • d) LTD recipients within PERS could apply for ordinary or accidental disability retirement if they apply within two years of the act’s effective date.
  • e) Any changes to early/ deferred/ service retirement and maximum base salary resulting from the transfer would apply only to members who begin processing retirement after enactment.

Section 2

  • The act takes effect immediately.

Affected entities and scope

  • All current non-retired PERS members (and those who would transfer from the Defined Contribution Retirement Program) would be affected by tier consolidation and enrollment/transfer provisions.
  • Public employers would be responsible for enrolling affected employees within the specified deadlines.
  • LTD beneficiaries within PERS would gain expanded disability retirement eligibility windows.

Procedural and timeline aspects

  • Enactment triggers compulsory enrollment for eligible employees within 60 days (or within two months, per the statement of purpose).
  • DCRP-to-PERS service credit transfers come with a 60-day notice period for affected employees and a six-month opt-out window.
  • Opt-out decisions preserve continued participation in the DCRP.
  • Disability retirement eligibility for LTD recipients must be pursued within two years of enactment.

Legislative actions and sponsorship

  • Introduced: January 14, 2025
  • Referred to Senate committees: State Government, Wagering, Tourism & Historic Preservation; then to Housing, Construction and Community Development
  • Primary sponsor: Senator Kevin S. Parker
  • Related/companion bills: A 5160, A 6695 (companion), and several prior-session S bills

Related notes

  • This bill’s stated subject matter (low income housing tax credit eligibility) does not align with the substantive text, which focuses on PERS reforms. If the LIHTC intended scope is to be addressed, additional bill text specific to LIHTC would be required.

If you’d like, I can adapt this summary to focus strictly on a LIHTC-related bill once the correct text is provided, or reframe it to clearly reflect just the PERS provisions as written.

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

Sign in to ask a question.