New Jersey § 18a:66-56

§ 18a:66-56.

a. (1) Subject to the provisions of chapter 70 of the laws of 1955, 1 the general responsibility for the proper operation of the teachers' pension and

annuity fund shall be vested in the board of trustees , and, as specified, in the committee established pursuant to subsection b. of this

section . Subject to the limitations of the law, the board shall annually establish rules

and regulations for the administration and transaction of the board's and committee's business and for the control of the funds created by this article. Such rules and regulations shall be consistent with those adopted by the other pension

funds within the Division of Pensions and Benefits in order to permit the most economical and uniform administration of all such retirement

systems. The committee shall adopt such regulations as provided in subsection b. of this section. (2) The membership of the board shall consist of the following: (a) The State Treasurer or the deputy State Treasurer, when designated for that purpose

by the State Treasurer; (b) Two trustees appointed by the Governor, with the advice and consent of the Senate,

who shall serve for a term of office of three years and until their successors are

appointed, and who shall be private citizens of the State of New Jersey and who are

neither an officer thereof nor active or retired members of the system, except that

of the two trustees initially appointed by the Governor pursuant to P.L.1992, c. 41 ( C.43:6A-33.1 et al.), one shall be appointed for a term of two years and one for a term of three

years; (c) Three trustees from among the active or retired members of the retirement system,

elected by the membership or by the delegates elected for this purpose by the membership,

one of whom shall be elected each year for a three-year term commencing on January

1, following such election in such manner as the board of trustees may prescribe. If the board of trustees determines that the election of trustees under this subsection

is to be made by delegates elected by the membership, it shall prescribe that those

delegates shall be chosen from among active and retired members of the retirement

system; (d) One trustee not an active or retired teacher nor an officer of the State, elected

by the other trustees, other than the State Treasurer, for a term of three years. (3) A vacancy occurring in the board of trustees shall be filled in the same manner as

provided in this section for regular appointment or election to the position where

the vacancy exists, except that a vacancy occurring in the trustees elected from among

the active or retired members of the retirement system shall be filled for the unexpired

term. Each member of the board shall, upon appointment or election, take an oath of office

that, so far as it devolves upon him, he will diligently and honestly administer the

board's affairs, and that he will not knowingly violate or willfully permit to be

violated any provision of law applicable to this article. The oath shall be subscribed to by the member making it, certified by the officer

before whom it is taken and filed immediately in the office of the Secretary of State. Each trustee shall be entitled to one vote in the board and a majority of all the

votes of the entire board shall be necessary for a decision by the board of trustees

at a meeting of the board or committee. The board shall keep a record of all its proceedings, which shall be open to public

inspection. The members of the board shall serve without compensation but shall be reimbursed

for any necessary expenditures. No employee shall suffer loss of salary or wages through serving on the board. (4) The State Treasurer shall designate a medical board after consultation with the Director

of the Division of Pensions and Benefits , subject to veto by the board for valid reason. It shall be composed of three physicians who are not eligible to participate in

the retirement system. The medical board shall pass upon all medical examinations required under the provisions

of this article, shall investigate all essential statements and certificates by or

on behalf of a member in connection with an application for disability retirement,

and shall report in writing to the retirement system its conclusions and recommendations

upon all matters referred to it. b. There is established a committee to be composed of eight members, four of whom

shall be appointed by the Governor as representatives of public employers whose employees

are enrolled in the retirement system, three of whom shall be appointed by the head

of the union representing the greatest number of members of the retirement system

having union membership, and one of whom shall be appointed by the head of the union

representing the second greatest number of members of the retirement system having

union membership. The members of the committee shall not be appointed until the system, or part of

the system, attains the target funded ratio. The members of the committee shall serve for a term of three years and until a successor

is appointed and qualified. Of the initial appointments by the Governor, two members shall serve for two years

and until a successor is appointed and qualified, and one shall serve for one year

and until a successor is appointed and qualified. Of the initial appointments by the head of the union representing the greatest number

of members of the retirement system, one member shall serve for two years and until

a successor is appointed and qualified, and one shall serve for one year and until

a successor is appointed and qualified. The members of the committee shall select a chairperson from among the members, who

shall serve for a term of one year, with no member serving more than one term, until

all the members of the committee have served a term in a manner alternating among

the employer representatives and employee representatives, unless the committee determines

otherwise with regard to this process. The provisions of paragraph (3) of subsection a. of this section, and N. J.S.18A:66-60 , shall apply to the committee and its members, as appropriate. Upon the convening of any meeting of the committee, the members shall consider a motion

to assume the authority provided in this subsection and shall proceed only if a majority

of the members of the committee vote in the affirmative on that motion. The committee may contract with such actuaries or consultants, or both, in accordance

with the provisions of P.L.1954, c. 48 ( C.52:34-6 et seq. ), as the committee may deem necessary to perform its duties, when the system or part

of the system has attained the target funded ratio. When the retirement system, or a part of the system, has attained the target funded

ratio as defined in section 27 of P.L.2011, c. 78 ( C.43:3C-16 ), the committee shall have the discretionary authority for the system or for that

part, as appropriate, to (1) modify the: member contribution rate; formula for calculation

of final compensation; the fraction of compensation applied to service credited after

the modification; age at which a member may be eligible for and the benefits for

service or early retirement; and benefits provided for disability retirement; and

(2) activate the application of the “Pension Adjustment Act,” P.L.1958, c. 143 ( C.43:3B-1 et seq. ) for retirees for the period that the system or part is at or above the target funded

ratio and modify the basis for the calculation of the adjustment and set the duration

and extent of the activation. The committee shall give priority consideration to subparagraph (2) of this paragraph. The committee shall not have the authority to change the years of creditable service

required for vesting. The committee may consider a matter described above and render a decision notwithstanding

that the provisions of the statutory law may set forth a specific requirement on that

matter. The committee may consider a matter described above and render a decision notwithstanding

that the provisions of the statutory law do not set forth a specific requirement on

the considered aspect of that matter or address that matter at all. The members of the committee shall have the same duty and responsibility to the retirement

system as do the members of the board of trustees. No decision of the committee shall be implemented if the direct or indirect result

of the decision will be that the system's or part's funded ratio falls below the target

funded ratio in any valuation period during the 30 years following the implementation

of the decision. The actuary of the fund shall make a determination of the result in that regard

and submit that determination in a written report to the committee and the board prior

to the implementation of the decision. If any matter before the committee receives at least five votes in the affirmative,

the board of trustees shall approve and implement the committee's decision. If any matter regarding benefits before the committee receives four votes in the affirmative

and four votes in the negative or the committee otherwise reaches an impasse on a

decision, the provisions of section 33 of P.L.2011, c. 78 ( C.43:3C-17 ) shall be followed. A final action of the committee shall be made by the adoption of a regulation that

shall identify the modifications to the system by reference to statutory section. The regulations shall also specify the effective date of the modification and the

system members, including beneficiaries and retirees, to whom the modification applies. Regulations of the committee are considered to be part of the plan document for

the system. A regulation adopted by the committee may be modified by regulation in order to

comply with the requirements of this section. c. No member of the board, committee, employee of the board, or employee of the Division

of Pensions and Benefits in the Department of the Treasury shall accept from any person,

whether directly or indirectly and whether by himself or through his spouse or any

member of his family, or through any partner or associate, any gift, favor, service,

employment or offer of employment, or any other thing of value, including contributions

to the campaign of a member or employee as a candidate for elective public office,

which he knows or has reason to believe is offered to him with intent to influence

him in the performance of his public duties and responsibilities. As used in this paragraph, “ person ” means an (1) individual or business entity, or officer or employee of such an entity,

who is seeking, or who holds, or who held within the prior three years, a contract

with the board; (2) an active or retired member, or beneficiary, of the retirement

system; or (3) an entity, or officer or employee of such an entity, in which the

assets of the retirement system have been invested. A board or committee member or employee violating this prohibition shall be guilty

of a crime of the third degree. 1

N.J.S.A. § 52:18A-95 et seq.