January 26, 2011
TO:
Certifying Officers of the Public Employees’ Retirement System (PERS)
FROM:
Joseph Zisa, Manager 1, Fiscal Resources
Division of Pensions and Benefits
SUBJECT:
Retirement Benefits for Members of State Boards and Commissions
Pension benefit accrual in the Public Employees’ Retirement System (PERS) is
contingent upon eligible employees providing a minimum amount of service through their
government employment. Recent changes to the PERS under Chapter 1, P.L. 2010,
require a specific minimum number of work hours per week in order for an individual to
qualify for enrollment in the PERS. However, for individuals enrolled in PERS prior to
May 21, 2010, eligibility is determined by earning a minimum salary or compensation
amount per year. As a result of these minimum compensation requirements, some
members of State boards and commissions earn enough compensation to accrue PERS
retirement benefits for meeting just once a month.
The State Fiscal Budget for 2011 has eliminated this retirement benefit accrual for many
State commission and board members by reducing the compensation for a number of
boards and commissions. The affected boards and commissions are the:
•
Real Estate Commission;
•
Civil Service Commission;
•
Pilot Commissioners;
•
State Athletic Control Board;
•
Board of Mediation;
•
Council on Affordable Housing;
•
New Jersey Racing Commission;
•
Council on Local Mandates; Garden State Preservation Trust;
•
Various State professional boards;
•
Public Employment Relations Commission and Appeal Board; and
•
Certified Psychoanalysts Advisory Committee and the Audiology and
Speech-Language Pathology Advisory Committee in the Department of
Law and Public Safety
New Jersey Is An Equal Opportunity Employer
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Printed on Recycled and Recyclable Paper
Retirement Benefits for Members of State Boards and Commissions
January 26, 2011
Page 2
The amounts appropriated to these boards and commissions are now subject to the
following conditions:
•
The base salary, per diem salary, or any other form of compensation
(including expenses) for the board members or commissioners paid out of
State funds shall not exceed $100 per month; and
•
No State monies shall be used to pay for participation of board members or
commissioners in the State Health Benefits Program.
•
No other compensation shall be paid.
Division of Pensions and Benefits and the State Centralized Payroll Unit are in
communication to the payroll offices responsible for the various boards and commissions
about changes to payroll processing needed for pension and health coverage purposes.
Basically through a combination of the required minimum salary not being met and
proper coding of the payroll record, no pension deduction will be taken by Centralized
Payroll and no accrual of pension service credit or salary will occur following the Second
Calendar Quarter of 2010.
These provisions do not apply to the Commissioner/Chief Executive Officer of the State
Athletic Control Board, the Chairman/Chief Executive Officer of the Civil Service
Commission, the Chairman of the Public Employment Relations Commission, and any
commissioner or board member of any other State board, commission, or independent
authority who, in addition to being a member of the board or commission also holds a
full time staff position for such entity.
ADDITIONAL INFORMATION
If you have additional questions regarding the information provided in this letter, contact
the Division’s Office of Client Services at (609) 292-7524, or e-mail the Division at:
pensions.nj@treas.state.nj.us