NJ A4054

School district and board of education employees working more than 20 hours per week who meet salary requirements but not minimum work hour requirements for PERS would become eligible for PERS enrollment under this bill.

Current DCRP participants affected by this change must be transferred to PERS within 180 days of the bill's effective date.

Transferred employees receive service credit in PERS dating back to their DCRP enrollment date, which counts toward retirement eligibility and health benefits but not toward calculating pension benefit amounts.

The State is responsible for a one-time payment to cover the unfunded accrued liability resulting from these transfers, with the liability amortized over 20 years.

Account balances must transfer from DCRP to PERS as direct trustee-to-trustee transfers compliant with IRS rules; if funds cannot transfer properly, employees will not receive full service credit for base pension calculations.