Prosecutors Part of the Public Employees' Retirement System (PERS)
CONTRIBUTION RATE CHANGE

At its meeting of December 10, 2009, the Board of Trustees of the Public Employees' Retirement System (PERS) considered the November 9, 2009 decision of the Superior Court of New Jersey, Appellate Division, in the matter of Communication Workers of America, AFL-CIO, et al, v. Board of Trustees, Public Employees' Retirement System. In its decision, the Court upheld the Board’s authority to adopt the recommendation of its actuary to increase the Prosecutors Part contribution rate based on an experience study. However, the Court held that prior notice and an opportunity to provide written comments on proposed changes to their contribution rate should be provided to members of the Prosecutors Part.

Therefore, the PERS Board will provide a 60-day period upon which interested parties may submit written comments specifically regarding the actuarial basis for the increase in the contribution rate. The 8.5% contribution rate established by the PERS Board in March, 2008, will continue during the process. The actuarial report that contains the basis for the increase is entitled The Public Employees' Retirement System of New Jersey Fifty-Third Annual Report of the Actuary, Prepared as of July 1, 2007, and can be found on the Division of Pensions and Benefits’ Web site at: www.state.nj.us/treasury/pensions/pdf/boards/pers2007report.pdf Adobe PDF (3.3MB)

Further, the link to the March 6, 2008, letter from the actuary to Deputy Director John M. Megariotis recommending the increase in the Prosecutors Part rate can be found at: www.state.nj.us/treasury/pensions/pdf/boards/pp-rate-letter-3-6-08.pdf Adobe PDF (177K)

Written comments are limited to the Prosecutors Part rate and must be specific to the basis for challenging the data, economic assumptions and/or methodology used in the actuary’s calculations to determine the additional cost attributable to the enhanced benefits. Supporting documentation should accompany all submissions, if appropriate.

Submit comments by March 1 , 2010 to:

Susanne Culliton
Administrative Practice Officer
Division of Pensions and Benefits
PO Box 295
Trenton, NJ 08625-0295

Subsequent to the March 2010 closing date, comments will be reviewed. Notification of the date that the Board will address the comments will be provided through a posting on the Division’s Web site prior to the Board meeting.

Last update: December 30, 2009