N.J. Stat. tit. 43, ch. 8B

in effect

N.J. Stat. § 43:8B-1 Definitions

As used in this act: (a) "Employee" means any person holding office, position, or employment in any county, municipality, or school district in the State. (b) "Employer" means any county, municipality, or school district in the State. (c) "Final average salary" means the average base compensation paid by the employer to the employee for the three years of his employment preceding his retirement. (d) "Permanent and total disability." An employee is deemed to be permanently and totally disabled when it appears not only that he is physically or otherwise incapacitated for service, but that such incapacity will, in all reasonable probability, continue permanently. If an employee claims that such disability exists, the employer shall appoint a physician of skill and repute in his profession and resident of this State, who shall examine the employee. The physician shall make a report of the employee's physical condition or other disability, and if a disability exists, whether in all reasonable probability it will continue permanently, and does and will continue to prevent the employee from giving service to his employer in the performance of his duties. Any person who is retired for permanent and total disability hereunder, and who is under the age of 65 years, shall undergo an annual medical examination by a physician or physicians designated by the county, municipality or school district paying pension benefits based upon disability to such person. If upon examination it is determined that such disability no longer exists, the benefits payable hereunder for disability shall cease. If a person receiving pension benefits based upon disability refuses to submit to examination, the county, municipality or school district paying such benefits shall discontinue same until such person submits to physical examination. (e) The Social Security system shall not be deemed a retirement system for the purposes of determining eligibility to a pension under this act. L. 1955, c. 263, s. 1; amended by L. 1987, c. 117, s. 1.

N.J. Stat. § 43:8B-2 Employees entitled to pension

Any employee who is not a member of and was not required by law at the time of appointment or employment, or at any time thereafter, to become a member of a contributory retirement system, may, at the discretion of his employer, be retired and granted a pension under the provisions of this act. No employee shall receive a pension under this act, if he is eligible to receive a pension for the same employment under any other law of this State. L.1955, c. 263, p. 981, s. 2.

N.J. Stat. § 43:8B-3 Budget provisions for payment

The payment of pensions granted pursuant to this act shall be provided for in the budget of the employer. L.1955, c. 263, p. 981, s. 3.

N.J. Stat. § 43:8B-4 Eligibility

In order to be eligible for a pension under the provisions of this act, an employee must be at least 65 years of age, or have been employed by an employer for at least 40 years, or be permanently and totally disabled. L.1955, c. 263, p. 981, s. 4.

N.J. Stat. § 43:8B-4.1 Local employee eligibility

Notwithstanding the provisions of section 7 of P.L. 1954, c. 84 (C. 43:15A-7), as amended by P.L. 1985, c. 121, or any other law to the contrary, any employee who has been employed by any county, municipality, or school district continuously for at least 30 years, has become at least 65 years of age on or before April 15, 1986, and is not a member of or eligible to receive a pension from any State or locally-administered retirement system on the effective date of this act, may be eligible to receive the pension benefits provided by P.L. 1955, c. 263 (C. 43:8B-1 et seq.). L. 1986, c. 122, s. 2.

N.J. Stat. § 43:8B-5 Maximum pensions

The amount of pension granted under this act shall be fixed by the employer according to uniform percentages of final average salary applicable generally to all employees of such employer subject to the provisions of this act, which percentages shall be adopted by resolution and shall not exceed: (a) 30% of the employee's final average salary, if he has been employed by the employer for less than 20 years; or (b) 50% of the employee's final average salary, if he has been employed by the employer for 20 years or more; provided, however, that in the case of an employee having 35 or more years of public employment and being age 65, or having 40 or more years of public employment, the percentage shall not be less than 25% of his final average salary. No employee shall be eligible for pension benefits based upon disability hereunder unless he shall have at least five years of employment continuously, or in the aggregate, with the employer. No employee shall be eligible for pension benefits other than benefits based upon disability hereunder unless he shall have at least 15 years of employment continuously, or in the aggregate, with the employer. L. 1955, c. 263, p. 981, s. 5. Amended by L. 1957, c. 29, p. 56, s. 1; L. 1986, c. 122, s. 1, eff. Oct. 8, 1986.

N.J. Stat. § 43:8B-6 Repeals

The following acts and parts of acts are hereby repealed: Sections 18:6-29; 18:6-36; 18:6-43; 18:6-44; 18:14-62 to 18:14-64, both inclusive; 40:37-149; 40:37-150; 43:6-8 to 43:6-14, both inclusive; 43:8-5 to 43:8-7, both inclusive; 43:9-1 to 43:9-8, both inclusive; 43:11-3; 43:12-1 to 43:12-55, both inclusive, of the Revised Statutes, and chapter 142 of the laws of 1938, chapter 156 of the laws of 1939, chapter 36 of the laws of 1940, chapter 214 of the laws of 1941, chapter 368 of the laws of 1941, chapter 369, of the laws of 1941, chapter 255 of the laws of 1942, chapter 194 of the laws of 1943, chapter 154 of the laws of 1944, chapter 223 of the laws of 1944, chapter 287 of the laws of 1945, chapter 216 of the laws of 1947, chapter 221 of the laws of 1947, chapter 285 of the laws of 1947, chapter 119 of the laws of 1948, chapter 224 of the laws of 1948, chapter 254 of the laws of 1948, chapter 228 of the laws of 1949, chapter 262 of the laws of 1949, chapter 293 of the laws of 1949, chapter 248 of the laws of 1950, chapter 223 of the laws of 1951, chapter 262 of the laws of 1951, chapter 283 of the laws of 1952, chapter 353 of the laws of 1952, chapter 301 of the laws of 1953, chapter 308 of the laws of 1953, chapter 309 of the laws of 1953, and chapter 362 of the laws of 1953. L.1955, c. 263, p. 982, s. 6.

N.J. Stat. § 43:8B-7 Pensions granted under other sections; effect of repeal

No pensions may be granted under the provisions of any statute repealed by section 6 of this act after the date this act becomes effective. Any pension granted prior to the effective date of this act under the provisions of any statute repealed by section 6 of this act shall be continued in the same manner and under the same conditions as originally granted. L.1955, c. 263, p. 983, s. 7.

N.J. Stat. § 43:8B-8 Citation

This act shall be known and may be cited as the "General Noncontributory Pension Act." L.1955, c. 263, p. 983, s. 8.

N.J. Stat. § 43:8B-9 Definitions

As used in this act "retirant" means any former employee who is receiving a pension from his former employer under the provisions of the General Non-Contributory Pension Act, P.L.1955, chapter 263, and any acts or parts of acts repealed thereby. "Calendar year" means the 12-month period beginning January 1 and ending December 31. "Retirement year" is the calendar year 1967 for all retirants who retired before the calendar year 1968; for all retirants who retired after 1967, "retirement year" is the actual calendar year of retirement. "Index" shall mean the annual average over a calendar year of the Consumer Price Index for Urban Wage Earners and Clerical Workers, All Items Series A, of the United States Department of Labor (1957-1959=100). Should the reference base of said index be changed, the index used to determine the Consumer Price Index as defined herein will be the index converted to the new base by standard statistical methods. "Retirement year index" shall be the index of the calendar year 1967 for all retirants who retired prior to January 1, 1968 and the index for the calendar year of retirement for all retirants who retired thereafter. L.1971, c. 379, s. 1.

N.J. Stat. § 43:8B-10 Increase in pensions

The monthly pension originally granted to any retirant shall be increased in accordance with the provisions of this act. Pension increases shall not be paid to retirants who are not receiving their regular, full, monthly pensions. The increase granted under the provisions of this act shall be effective only on the first day of a month, shall be paid in monthly installments, and shall not be decreased, increased, revoked or repealed except as otherwise provided in this act. No increase shall be due to a retirant or his beneficiary unless it constitutes a payment for an entire month. L.1971, c. 379, s. 2.

N.J. Stat. § 43:8B-11 Ratio of increase

The "ratio of increase" which shall apply to the pension originally granted to a retirant shall be calculated in accordance with the following percentages as determined by the calendar year in which the retirement became effective. Year of Ratio of Retirement Increase 1915 219% 1916 198% 1917 153% 1918 116% 1919 88% 1920 62% 1921 82% 1922 94% 1923 90% 1924 90% 1925 85% 1926 84% 1927 87% 1928 89% 1929 89% 1930 94% 1931 113% 1932 138% 1933 151% 1934 143% 1935 137% 1936 134% 1937 126% 1938 130% 1939 134% 1940 132% 1941 120% 1942 99% 1943 88% 1944 85% 1945 80% 1946 66% 1947 45% 1948 35% 1949 36% 1950 35% 1951 25% 1952 22% 1953 21% 1954 21% L.1971, c. 379, s. 3.

N.J. Stat. § 43:8B-12 Cost of increase payable by employer

The employer shall bear the cost of the increase in the pensions payable to retirants who retired from the employ of such employer. The employer shall appropriate the amount, in the fiscal year next following, taking into account payments made to retirants of such employer and prospective payments to be made to such retirants in the following year. L.1971, c. 379, s. 4.

N.J. Stat. § 43:8B-13 Annual review of and determination of percentum of change in index

On or before October 1, 1970 and by the same date in each subsequent year, the Director of the Division of Pensions of the State Department of the Treasury shall review the index and determine the percentum of change in the index from the retirement year index pursuant to the provisions of the Pension Increase Act (P.L.1969, c. 169) (C. 43:3B-1 et seq.). The percentage of adjustment in the pensions shall be 1/2 of the percentum of change. The director shall notify the employer of the percentage of adjustment for the applicable year. In no instance shall the amount of the pension originally granted and payable to any retirant be reduced as a result of this adjustment. For purposes of this section a "retirant" shall include all retirants except those whose pension commenced within the 3 calendar years prior to the first of the month in which the adjustment is to become effective in any year. L.1971, c. 379, s. 5.

N.J. Stat. § 43:8B-14 Effect of blanket increase or provision for minimum pension on benefits provided by this act

If legislation is adopted providing for a blanket increase in the original pensions or for minimum pensions to any group of retirants eligible for benefits under this act, all increases provided under this supplementary act shall be terminated on the first of the month when such blanket increases or minimum pensions are payable, except in those instances where the retirant's original pension plus the increases provided under this act will exceed the amounts payable to such retirants as a result of such other legislation; in such event the amount payable under this act shall be the difference between the new pension payable as a result of such other legislation and the amount which would otherwise have been paid under this act. Any subsequent annual review of amounts payable under this act for such retirants shall continue to be determined on the basis of the original pension as granted by the employer prior to any blanket increase or provision for minimum pension for any group of retirants eligible for benefits under this act. L.1971, c. 379, s. 6.

N.J. Stat. § 43:8B-15 Rules and regulations; annual report

The Director of the Division of Pensions of the State Department of the Treasury shall promulgate such rules and regulations, not inconsistent with the provisions of the Pension Increase Act (P.L.1969, c. 169), (C. 43:3B-1 et seq.) and this act, as he shall deem necessary for the effective operation of the program. He shall include a report of the operation of the Pension Increase Act (P.L.1969, c. 169) (C. 43:3B-1 et seq.) and this act in his annual report submitted to the Governor and the Legislature regarding all of the operations of the Division of Pensions. L.1971, c. 379, s. 7.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.njleg.state.nj.us/legislative-activity/statutesFetched: 10/17/2026