Earlier this week, Senate President Sweeney introduced S-3040, which would transfer the management of the Police and Fire Retirement System (PFRS) to a Board of Trustees comprised of Labor and Management representatives. The Board, acting exclusively on behalf of contributing employers, active and retired members, would have the general responsibility for the proper operation of the retirement system.
The Board may, in its discretion and at such time and a manner, as it determines:
- Enhance any benefit set forth in N.J.S.A. 43:16A-1 et seq.; or
- Modify any such benefit as an alternative to an increase in the member contribution rate; or
- Reinstate, when appropriate, such reduced benefit to the statutory level without an additional contribution by the member.
The Board’s primary obligation would be to direct policies and investments to achieve and maintain the full funding and continuation of the retirement system for the exclusive benefit of its members.
This legislation was developed with input from the public safety unions. Their concept was presented during a session of the 2016 League conference. The League is currently reviewing the legislation, focusing on its impact on property taxpayers in both the near and the long term. We plan to share our conclusions and concerns with the sponsor and look forward to cooperating with all concerned on a plan that protects the interest of our members; more analysis forthcoming.
Contact: Lori Buckelew, Senior Legislative Analyst, firstname.lastname@example.org, 609-695-3481 ext. 112.