Chapter 78 and
contributions in retirement
Recently, there have been some misinformation and misunderstandings circulating about
what is being characterized as an opinion by the
Division of Local Government Services (LGS) in
the Department of Community Affairs concerning exemptions from paying health insurance
contributions on retirement for public employees
who did not have 20 years of pensionable service
when Chapter 78 became effective on June 28,
2011. The LGS interpretation, which was issued
by a regulatory affairs officer in the agency, is
not binding. It suggests that employees who did
not have 20 years of pensionable service by June
28, 2011, but who reached the 20-year threshold
before expiration of a contract in effect on that date, would be
exempt from paying for health insurance on retirement if the
contract provided that exemption when the employee retired.
It also differs from how the Division of Pensions & Benefits interprets Chapter 78, which is to require any members who did
not have 20 years of pensionable service as of June 28, 2011 to
contribute in retirement based on a percentage of a member’s
retirement benefit.
These issues are not new, and we have discussed them at
State PBA meetings on numerous occasions. It is likely that
a court will decide what Chapter 78 means on this issue. The
NJ State PBA has been advising PBA Locals that it is willing to
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support litigation in appropriate cases. To date, no
Local has come forward with specific information
about pending retirements that might be appropriate test cases. We do not recommend that any
members make any retirement decisions based
solely on the LGS interpretation without speaking
with the employer, and after consulting with counsel. If you have received information concerning
this LGS interpretation and have questions about
how, and if, it may affect you or your members,
you should contact your Local or your attorney.
Court holds that police officer is eligible for
unemployment comp even when terminated
The New Jersey Appellate Division recently provided guidance regarding circumstances in which applications for unemployment compensation may be denied. While the opinion
is unpublished, it is a favorable decision for law enforcement
officers or other public employees who are suspended or terminated from employment solely as a result of the filing of a
criminal charge.
In Township of Edison v. Board of Review, an Edison police
officer was suspended without pay, and termination sought,
based upon his arrest for alleged improper use of a law enforcement data bank in violation of N.J.S.A. 2C:20-25(a). Based
merely on the arrest, which was not accompanied by an indict-