Provides for purchase of PFRS credit for service as class two special law enforcement officer.

Special officers can buy more pension credit

Beginning August 22, 2024, New Jersey’s Police and Firemen’s Retirement System (PFRS) allows members to buy credit for prior class two special law enforcement service. This covers service with a New Jersey public employer, including required basic police training before PFRS membership. The gap between that service and PFRS enrollment must be less than 365 days. Members already enrolled on August 22, 2024, had one year from that date to apply. Members cannot buy credit for service supporting a vested retirement benefit in another retirement system when they apply. The overall rules also cover qualifying public employment in other states or with the federal government, plus military service. Service must qualify for credit in a state-run retirement system if performed for a New Jersey public employer. Members can buy all or part of qualifying service, measured in years and months, up to 10 years. After buying the full 10 years, members can buy up to five additional years of military service qualifying them as veterans. The price uses an actuarial factor based on age and the higher of current salary or highest prior annual New Jersey pay on which pension contributions were made. Members can pay over up to 10 years, with installments at least half their full normal pension contribution. Employers owe nothing for purchases covering federal employment, military service, or New Jersey class two officer service. Members pay no costs for financing retiree pension adjustments or health benefits. Members retiring before finishing payments receive only the credit paid for, unless they elect a lump-sum payment at retirement to complete the purchase. The pension board must notify all members about the law.