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Posted on: January 3, 2020

Lame Duck Update: PFRS Retirement, Lead Service Line Replacement

The 218th New Jersey State Legislature will end at midnight, January 13. The 219th Legislature will begin its work on January 14, including the State of the State Address by Governor Murphy. Between now and then, we expect significant legislative activity. Here is an update on two such items. We will advise you of other significant developments in the upcoming days and weeks.

 

In December, the General Assembly approved A-6024. This bill, along with its Senate companion, S-4297, would create an additional category of service retirement for Police Fire Retirement System (PFRS) employees. Under the bill, a PFRS employee who is enrolled before or after the bill’s effective date may retire, regardless of age, upon attaining 20 or more years of service credit and would receive a retirement allowance equal to 50% of the member’s final compensation.

The December 12 statement from the Assembly Appropriations Committee on the Assembly companion bill, A-6024 included a fiscal impact analysis, which was prepared by the non-partisan Office of Legislative Services (OLS). The OLS analysis stated that the bill "...will have a significant, indeterminate fiscal impact, likely in the hundreds of millions of dollars, on both the State and local portions of the PFRS pension funds and the unfunded liability costs that would be charged to the State and local government entities to fund the unfunded liability created by the bill.”

The League opposes these bills, which are now referenced to the Senate Budget and Appropriations committee. That Committee is scheduled to meet on Monday and these bills are not on the agenda. That could change or there may be another committee hearing so we are fully engaged on the issue and will advise you of any developments. There is a blog post on the topic at League’s Town Crier blog with more information.

Contact: Lori Buckelew, Senior Legislative Analyst, lbuckelew@njlm.org, 609-695-3481.

S-4110, which the League supports, provides clear authority allowing a municipality to pass an ordinance allowing the municipality, municipal water system, or an agent thereof to enter onto property within the municipality to perform lead service line replacement. The legislation requires that the municipality provide notice to the property owner at least 72 hours prior to entering the property. This bill has passed both houses and awaits the Governor’s action.


The League would like to thank the bill’s sponsors, Senator Teresa Ruiz and Assemblywoman Eliana Pintor Marin for their efforts in assisting municipalities to see that their communities are free of lead water service lines. 

Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481 x137.


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