New Jersey A 5053: Permits retired municipal code officials to return to part-time employment after bona fide severance period without reenrollment in PERS.*

Bill Text

A5053 2R FISCAL ESTIMATE 

LEGISLATIVE FISCAL ESTIMATE

[Second Reprint]

ASSEMBLY, No. 5053

STATE OF NEW JERSEY

222nd LEGISLATURE

DATED: JUNE 30, 2026

SUMMARY

 Synopsis:

 Permits retired municipal code officials to return to 
 part-time employment after bona fide severance period without reenrollment in 
 PERS.

 Type of Impact:

 Potential annual local expenditure reduction.

 Agencies Affected:

 Certain local government units.

 Office of 
 Legislative Services Estimate

 Fiscal Impact

 Local Expenditure Decrease

 Indeterminate

� 
The Office of Legislative Services (OLS) anticipates that 
permitting retired municipal code officials to return to part-time employment 
without reenrollment in the Public Employees� Retirement System under certain 
conditions, and within three years after the effective date of the bill, will 
result in indeterminate expenditure decreases for the affected local employer 
or employers, provided that the qualified status of the retirement system can 
be maintained upon the bill�s application.

� 
Such decreases will result from the returning official not 
incurring additional service credit upon reemployment.

� 
As the OLS does not know the number of retired officials who will 
return to employment under the bill�s provisions, nor the salary of such 
officials or the workload or staffing needs of the respective employer, the 
reduction in costs is indeterminate.

BILL DESCRIPTION

����� This bill permits retired municipal code officials to 
return to part-time employment without reenrollment in the Public Employees� 
Retirement System.

����� Under the bill, a former member of the Public 
Employees� Retirement System who served as a municipal code official and who 
has been granted a retirement allowance for any cause other than disability, 
may return to employment as a municipal code official with one or more 
employers within three years after the effective date of the bill, and will be 
eligible to continue employment, without cancelation of the retirement and 
reenrollment in the system, if: (1) the return commences more than 30 days 
after the member receives written notification that the retirement is approved 
by the board, or more than 30 days after the date of retirement, whichever is 
later, if the employment is with a different employer, or 90 days after the 
date of retirement if the employment is with the same employer; (2) the former 
member had attained the service retirement age applicable to that member as of 
the date of retirement; and (3) the former member is re-employed as a part-time 
employee and works no more than 20 hours per week per employer.

����� The bill requires the former member�s retirement to 
have been a bona fide retirement and prohibits any return to employment to be 
prearranged before retirement.

FISCAL ANALYSIS

EXECUTIVE BRANCH

����� � None received.

OFFICE OF LEGISLATIVE SERVICES

����� The OLS anticipates that permitting retired municipal 
code officials to return to part-time employment without reenrollment in the 
Public Employees� Retirement System under certain conditions, and within three 
years after the effective date of the bill, will result in indeterminate 
expenditure decreases for the affected local employer or employers, provided 
that the qualified status of the retirement system can be maintained upon the 
bill�s application.������� � ��������� 

����� Such decreases will result from the returning official 
not incurring additional service credit upon reemployment.

����� As the OLS does not know the number of retired 
officials who will return to employment under the bill�s provisions, nor the 
salary of such officials or the workload or staffing needs of the respective 
employer, the reduction in costs is indeterminate.

 Section:

 State Government

 Analyst:

 Anna Harris

 Associate Fiscal Analyst

 Approved:

 Thomas Koenig

 Legislative Budget and Finance Officer

This legislative fiscal estimate has been produced by the 
Office of Legislative Services due to the failure of the Executive Branch to 
respond to our request for a fiscal note.

This fiscal estimate has been prepared pursuant to P.L.1980, 
c.67 (C.52:13B-6 et seq.).