BOROUGH OF SOMERVILLE
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021
It is assumed that the local employers will contribute 100% of their actuarially determined contribution and 100% of the Non-Contributory Group Insurance Premium Fund (NCGIPF) contribution while the State will contribute 70% of its actuarially determined contribution and 100% of its NCGIPF contribution. The 70% contribution rate is the actual total State contribution rate paid in fiscal year ending June 30, 2022 with respect to the actuarially determined contribution for the fiscal year ending June 30, 2022 for all State administered retirement systems.
In accordance with Chapter 98, P.L. 2017, PERS receives 21.02% of the proceeds of the Lottery Enterprise for a period of 30 years. Revenues received from lottery proceeds are assumed to be contributed to the System on a monthly basis.
The Borough’s liability to PERS for the year ending December 31, 2022 consisted of the following:
| 2022 | |
|---|---|
| Normal Cost | $42,880 |
| Amortization of Accrued Liability | 294,929 |
| Total Pension | 337,809 |
| NCGI Premiums | 16,323 |
| Total Regular Billing | 354,132 |
| LTD Expense | - |
| Additional Billings: | |
| Ch. 19, P.L. 2009 | 22,689 |
| Total PERS Payment | $376,821 |
The Borough recognizes liabilities to PERS and records expenditures for same in the fiscal period that bills become due.
The vesting and benefit provisions are set by N.J.S.A. 43:15. PERS provides retirement, death and disability benefits. All benefits vest after ten years of service, except for medical benefits , which vest after 25 years of service or under the disability provisions of PERS.
The following represents the membership tiers for PERS:
| Tier | Definition |
|---|---|
| 1 | Members who were enrolled prior to July 1, 2007. |
| 2 | Members who were eligible to enroll on or after July 1, 2007 and prior to November 2, 2008 |
| 3 | Members who were eligible on or after November 2, 2008 and prior to May 22, 2010 |
| 4 | Members who were eligible to enroll on or after May 22, 2010 and prior to June 28, 2011 |
| 5 | Members who were eligible to enroll on or after June 28, 2011 |