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S 3998

Relates to civil actions for deprivation of constitutional rights

2025 Regular Session Introduced by Kevin Parker and 1 co-sponsor

Unify benefits for all current non-retired TPAF members into Tier 1, eliminating existing tiers.

REFERRED TO CODES
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Bill Summary · S 3998

Summary of Bill S 3998 (Introduced January 14, 2025)

Overview

S 3998 is an introduced New Jersey bill that proposes major changes to the Teachers’ Pension and Annuity Fund (TPAF). The bill seeks to unify benefits under Tier 1 for current non-retired members, mandate enrollment for certain public employees into TPAF, and create automatic transfers of service credit from the Defined Contribution Retirement Program (DCRP) to TPAF for affected employees. It also sets deadlines for notices and opt-outs, and provides a pathway for disability retirement for long-term disability recipients. The act is to take effect immediately and its changes would primarily apply to members who begin retirement processing after enactment.

Key Provisions

A. Tier 1 Uniformity for Current Members

  • All current, non-retired members of the TPAF would be entitled to, and receive, the same benefits as Tier 1 members (i.e., the benefits associated with the Tier 1 structure).
  • This effectively eliminates the existing membership tiers for current non-retired members, placing them in Tier 1.

B. Compulsory Enrollment for Eligible Public Employees

  • Employees who earn more than the minimum salary thresholds but do not meet the minimum work-hours requirements would be enrolled in TPAF.
  • Employers must process compulsory enrollment within 60 days following the act’s effective date.

C. Transfer of Service Credit from DCRP to TPAF (for affected DCRP participants)

  • DCRP participants who are enrolled on the act’s effective date would be automatically transferred to TPAF unless they opt out.
  • Upon transfer, all years of service credit from the DCRP would be transferred to TPAF to qualify the member for retirement-related benefits (deferred, early, service retirement, disability retirement, health benefits, etc.). However:
    • These transferred service credits would not be used to calculate the pension amount under N.J.S.18A:66-1 et seq.
    • Prior contributions made to the DCRP would remain in the DCRP and not be transferred to TPAF.
  • Affected employees would receive a notice of the automatic transfer within 60 days of enactment.
  • Opt-out window: Affected employees who wish to stay in the DCRP may opt out by providing a notice to their employer within six months of receiving the transfer notice.

D. Disability Retirement Eligibility for TPAF Long-Term Disability Recipients

  • Members receiving long-term disability insurance under the act could apply for ordinary or accidental disability retirement under TPAF.
  • The application must be filed within two calendar years after the act’s effective date.

E. Effective Date and Application

  • Changes to early/ deferred/ service retirement and maximum base salary would apply only to members who begin retirement processing after enactment.
  • The act takes effect immediately.

Affected Parties

  • Current non-retired TPAF members (Tier 1 alignment).
  • Public-sector employees who exceed salary but not hours thresholds (enrollment into TPAF).
  • Participants in the Defined Contribution Retirement Program (DCRP) as of enactment (possible automatic transfer to TPAF unless opt-out).
  • TPAF members on long-term disability (eligibility for additional disability retirement options).

Timeline and Procedural Aspects

  • Notice to DCRP participants about transfer within 60 days of enactment.
  • Opt-out deadline for DCRP transfers: six months after notice.
  • Employer enrollment deadlines: within 60 days after enactment.
  • Effective date: immediate; certain changes apply to retirement processing initiated after enactment.

Legislative History

  • Status: Referred to Codes (Senate) after introduction.
  • Introduced in the Senate on January 14, 2025.
  • Sponsors: Kevin S. Parker (primary) and Julia Salazar (cosponsor).
  • Related bills: A 5158 (companion), several prior-session equivalents listed.

Notes

  • The title in the bill description references civil actions for deprivation of constitutional rights, but the introduced text and statement focus on TPAF benefits and enrollment. Readers should confirm the final bill language to resolve any title-content alignment.

If you’d like, I can provide a side-by-side comparison with the current law to highlight all changes more precisely.

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

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