12th District Legislators Sen. Jennifer Beck, Assemblyman Declan O’Scanlon and Assemblywoman Caroline Casagrande sent a letter to New Jersey Education Association on Feb. 5, 2009 asking it to inform its members of a technicality that could prevent earned pension benefits from being paid in the case of an accidental or sudden death. This situation occurs only in cases where an individual has the required 25 years in the pension system and does not sign the appropriate paperwork yet passes unexpectedly.
“It is our opinion that upon reaching retirement eligibility, ” the letter states, “one should not have to fill out paperwork mandating that the half-salary pension go to one’s spouse or survivors. That should be the default option unless otherwise noted, just as it is for PFRS and the State Police, and we have introduced legislation to that effect. Until that legislation is passed however, there are currently NJEA members who are retirement-eligible and who have not filled out their retirement paperwork who are essentially putting their families at financial risk.”
This action was brought about after the tragic and sudden death of Don Merce, 58, principal of Markham Place School, Little Silver on May 6, 2008.
At the time of his death, Mr. Merce was retirement-eligible, but had not done what many others in his situation do: file his retirement paperwork, and subsequently ask for a retirement extension. Because he had not filed this paperwork, his widow was not eligible to receive a pension amounting to roughly half of his final salary.
“This is nothing more than a technicality that most people probably don’t even know exists, ” said O’Scanlon, “and it’s one that must be addressed. Don Merce unwittingly put his family at financial risk because he wasn’t aware of it.”
O’Scanlon and Casagrande will introduce legislation in the Assembly, with a matching bill in the Senate to be introduced by Beck that would remove the requirement of filing retirement paperwork when one attains retirement eligibility, but chooses not to retire, in order for beneficiaries to receive the full pension benefits.
“Don Merce didn’t sign one piece of paper, ” said Beck, “and that makes quite a difference in the amount of money is widow has received.”
Casagrande said that this situation is rare, but really becomes pointed when a sudden death takes the life of someone eligible for retirement, but who has chosen not to retire, and, therefore, had not filed any retirement paperwork.
“The default should be for the beneficiaries of the deceased to receive the benefits they had been promised and expected all along, ” said Casagrande. “That’s how it works for PFRS and the State Police.”
In addition to addressing this technicality, the 12th District Legislators are sponsoring or supporting several pieces of legislation addressing pension benefits reform for public employees. These bills address issues such as increasing penalties for violations of pension laws, eliminating pension padding, limiting payment for accumulated sick and vacation time, and requiring a minimum annual hour requirement to qualify for a pension of health benefits.
In all, there are nine pieces of legislation at various stages at the State Senate and Assembly to which Beck, O’Scanlon and Casagrande are either sponsor or co-sponsor, which address the need for change in the public employee pension benefit system.
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