The state Senate and Assembly this week passed legislation to change eligibility and benefits under the state-operated pension systems.

S-17 would also allow school districts to offer employees incentives to waive coverage under the State Health Benefits Program. That provision represents an NJSBA goal. (See article, page 1.)

The bill must return to the Senate for concurrence on an Assembly amendment made Monday night. The next Senate voting session is scheduled for Feb. 5.

NJSBA is seeking clarification on bill provisions that address pension eligibility and pension benefits levels to determine their impact on school districts.

Some clarification would be made through regulations passed by the State Board of Education and other state agencies.

S-17 reflects recommendations of the Joint Legislative Committee on Public Employee Benefits Reform, one of the four panels convened during the special session on property tax reform.

Financial Stability NJSBA policy calls for a state pension system that is financially secure, properly funded and cost efficient. The Association will continue to analyze S-17 and other pension reform proposals to determine if they are in line with this belief.

S-17 would prohibit individuals who have professional services contracts with government entities and school districts from participating in the Public Employees’ Retirement System. Public employees and officeholders making less than $1,500 a year would also be ineligible for public pension systems.  In addition, the bill would allow employees earning less than $5,000 a year to opt out of the state pension system.