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As reported on NJ.Com, Chris Christie urged Democrats in the state Legislature to work with him to overhaul the public workers’ retirement fund for a second time, or he would take “extreme measures” if they failed to cooperate.
“I’m ready work with the entire Legislature to come up with ideas to fix this, but if …
Linked below is a very interesting and powerful article published in Bloomberg Personal Finance that discusses the perils of various public employee pension systems across the United States. Every Public Employee in the State of New Jersey should take a few minutes to review this article to educate themselves regarding "the state" of Public Employee Pension Systems across America.…
As reported in the Trentonian on February 9, 2010, legislation requiring public workers to assume a portion of their health benefits costs and providing relief to the State pension system has been introduced. The package of bills introduced follows vows by Democratic leaders in the State Senate to revisit pension reform recommendations made four years…
New York Governor David Patterson dropped a bombshell on two powerful unions yesterday when he unexpectedly vetoed a routine measure that for nearly thirty (30) years had allowed New York city cops and firefighters to retire with generous pensions.
“These are not routine times,” Paterson said in vetoing the “temporary” measure that, since 1981, …
Following up on our previous entry, this article will help our readers understand the criteria that must be met in order for a public employee to qualify for an ordinary or accidental disability pension within one of the following State pension systems, the Public Employees Retirement System, the Teachers Pension and Annuity Fund, the State Police Retirement System, and the Judicial Retirement System. While these pension plans are similar in defined benefits and criteria for eligibility, each has their own specific nuances that are particular to the membership they serve.
Accidental v. Ordinary Disability Benefits
Public Employees Retirement System and Teachers Pension and Annuity Fund
In accordance with the Public Employees Retirement System (“PERS”) and Teachers Pension and Annuity Fund (“TPAF”) handbooks, in order to qualify for an ordinary disability retirement, an employee must:
· Have an active pension account;
· Have 10 or more years of New Jersey service credit;
· Be considered totally and permanently disabled; and
· Submit medical reports certifying the disability.
In order to qualify for an accidental disability retirement, a member must:
· Be an active member of PERS or TPAF on the date of the “traumatic event”;
· Be considered totally and permanently disabled as a result of a “traumatic event” that happened during and as a direct result of carrying out the member’s regular or assigned job duties;
· File an application for disability retirement within five (5) years of the date of the “traumatic event”; and
· Be examined by physicians selected by the retirement system.
If an employee claiming membership to either one of these retirement funds qualified for accidental disability, his/her annual retirement allowance will be 72.7% of their salary at the time of the “traumatic event.”
Should the public employee be receiving periodic workers’ compensation benefits, the accidental disability retirement benefits will be reduced dollar for dollar by the periodic benefits paid after the retirement date. However, the retirement benefit is not reduced by any Social Security or private insurance benefits that may be payable.
The New Jersey Division of Pensions and Benefits reports accidental disability retirement benefits as exempt from federal income tax. The benefits are also Continue Reading The Difference Between Accidental and Ordinary Disability Benefits Under PERS, TPAF, SPRS, and JRS
