NJ S1682

Certifying officers must complete and sign a checklist verifying that public employees providing professional services (attorneys, engineers, accountants, auditors, physicians, architects) are eligible employees rather than independent contractors before enrolling them in the Public Employees' Retirement System (PERS).

Questions on the certification must be based on the IRS employee test, and officers must submit supporting documentation including the position-creating resolution, appointment resolution, and oath of office.

Certifying officers are prohibited from relying on representations from the individual being enrolled and must seek advice only from impartial individuals or Division of Pensions and Benefits employees.

The PERS board of trustees must establish a continuous audit program within 60 days of enactment, with the first 12 months focused on verifying eligibility of employees enrolled before the effective date.

Civil penalties apply to certifying officers or supervisors who knowingly violate enrollment laws: $1,000 for first violation, $2,500 for second violation within 10 years, and $5,000 for third or subsequent violations within 10 years.