Membership and contributing employers of the defined benefit pension plans consisted of the following at June 30, 2022:
| 2022 | |
|---|---|
| Inactive plan members or beneficiaries currently receiving benefits | 47,518 |
| Inactive plan members entitled to but not yet receiving benefits | 60 |
| Active plan members | 42,188 |
| Total | 89,766 |
| Contributing Employers | 582 |
| Contributing Nonemployers | 1 |
Significant Legislation – For State of New Jersey contributions to PFRS, Chapter 1, P.L. 2010, effective May 21, 2010, required the State to resume making actuarially recommended contributions to the pension plan on a phased-in basis over a seven-year period beginning in the fiscal year ended June 30, 2012.
For the year ended June 30, 2022, it is assumed that the Local employers will contribute 100% of their actuarially determined contribution and 100% of their Non-Contributory Group Insurance Premium Fund (NCGIPF) contribution while the State will contribute 78% of its actuarially determined contribution and 100% of its NCGIPF contribution. The 78% contribution rate is the actual total State contribution rate paid in the 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, PFRS receives 1.2% of the proceeds of the Lottery Enterprise for a period of 30 years. Revenues received from the lottery proceeds are assumed to be contributed to the System on a monthly basis.
Consistent with Chapter 83, P.L. 2016, it is assumed that the State will make pension contributions in equal amounts at the end of each quarter. It is assumed the Local employers’ contributions are expected to be received on April 1st, 21 months after the associated valuation date.
Pursuant to the provision of Chapter 78, P.L. 2011, COLA increases were suspended for all current and future retirees of PFRS.
For the year ended December 31, 2022, the Borough’s total payroll for all employees was $6,781,247. For the year ended December 31, 2022, total PFRS covered payroll was $4,044,305. Due to payroll system limitations, covered payroll refers to pensionable compensation, rather than total compensation, paid by the Borough to active employees covered by the Plan.
Specific Contribution Requirements and benefit provisions – The contribution policy is set by N.J.S.A. 43:16A and requires contributions by active members and contributing employers. Pursuant to the provisions of Chapter 78, P.L. 2011, the active member contribution rate was 10% in State fiscal year 2022. Employer contribution amounts are based on an actuarially determined amount. The annual employer contributions include funding for basic retirement allowances and noncontributory death benefits.