Bill Would Prevent Double-Dipping Among Retired School Administrators [AUDIO]
Retired school administrators who return to public employment would no longer be able to continue to collect their retirement benefits in addition to their salaries under a bill that's been introduced by Assemblyman Ralph Caputo.
"We're having trouble funding the pension system in New Jersey. We're way behind in terms of fully funding our pension obligations and there are retirees who are earning generous salaries while collecting pensions, and the worst part is that they are not breaking any laws because the current system allows this to happen," said Caputo. "The state is in no position to just be giving away money. This bill would prohibit these individuals who have retired and are receiving retirement benefits from continuing to receive these benefits if they begin working in positions that would allow them to reenter the retirement system."
The bill would eliminate two existing exceptions to the re-enrollment requirement for certain retirees of the Teachers' Pension and Annuity Fund who become reemployed in positions that would make them eligible to once again be members of the retirement system.
Caputo also said the salary cap for school superintendents also contributes to the problem.
"It's more advantageous for them to retire, collect their more than $120,000 pensions in many cases and then work as an interim superintendent collecting another $600 to $800 a day," he said. "The caps should be lifted to encourage these people to stay in the system rather than to go out and make double pay."
"As retirees, these interim superintendents do not contribute to the state's pension system, which is facing a $42 billion shortfall, but continue to benefit from it. Some of these folks are earning twice as much as the salary cap for superintendents in the state's smallest districts. They are earning more as retirees than they would if they were not retired. That makes no sense," said Caputo.