New Jersey § 53:5a-30

§ 53:5a-30.

a. Subject to the provisions of P.L.1955, c. 70 ( C.52:18A-95 et seq. ), the general responsibility for the proper operation of the retirement system is

hereby vested in the board of trustees , and, as specified, the committee established pursuant to subsection o. of this section . b. The board shall consist of five trustees as follows: (1) Two active or retired members of the system who shall be appointed by the Superintendent

of State Police, who shall serve at the pleasure of the superintendent and until their

successors are appointed and one of whom shall be or shall have been a commissioned

officer of the Division of State Police. (2) Two members to be 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 who are

neither an officer thereof nor active or retired members of the system. Of the two members initially appointed by the Governor pursuant to P.L.1992, c. 125 ( C.43:4B-1 et al.), one shall be appointed for a term of two years and one for a term of three

years. (3) The State Treasurer ex officio. The Deputy State Treasurer, when designated for that purpose by the State Treasurer,

may sit as a member of the board of trustees and when so sitting shall have all the

powers and shall perform all the duties vested by this act in the State Treasurer. c. Each trustee shall, after his appointment, take an oath of office that, so far

as it devolves upon him, he will diligently and honestly fulfill his duties as a board

member, and that he will not knowingly violate or permit to be violated any of the provisions

of the law applicable to the retirement system. Such oath shall be subscribed by the member taking it, and certified by the official

before whom it is taken, and immediately filed in the office of the Secretary of State. d. If a vacancy occurs in the office of a trustee, the vacancy shall be filled in

the same manner as the office was previously filled. e. The trustees shall serve without compensation, but they shall be reimbursed by

the State for all necessary expenses that they may incur through service on the board. No employee member shall suffer loss of salary through the serving on the board. f. Except as otherwise herein provided, no member of the board of trustees shall have

any direct interest in the gains or profits of any investments of the retirement system;

nor shall any member of the board of trustees directly or indirectly, for himself

or as an agent in any manner use the moneys of the retirement system, except to make

such current and necessary payments as are authorized by the board of trustees; nor

shall any member of the board of trustees become an endorser or surety, or in any

manner an obligor for moneys loaned to or borrowed from the retirement system. g. Each trustee shall be entitled to one vote in the board. A majority vote of all trustees shall be necessary for any decision by the trustees

at any meeting of said board. h. Subject to the limitations of this act, the board of trustees shall annually establish

rules and regulations for the administration of the funds created by this act and

for the transactions of the board's and committee's business. 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 o. of this section. i. The actuary of the fund shall be selected by the Retirement Systems Actuary Selection

Committee established by P.L.1992, c. 125 . He shall be the technical adviser of the board and the committee on matters regarding the operation of the funds created by the provisions of this

act and shall perform such other duties as are required in connection herewith. j. The Attorney General shall be the legal adviser of the retirement system, except

that if the Attorney General determines that a conflict of interest would affect the

ability of the Attorney General to represent the board or the committee on a matter affecting the retirement system, the board may select and employ legal

counsel to advise and represent the board or the committee on that matter. k. The Director of the Division of Pensions and Benefits of the State Department of the Treasury shall appoint a qualified member of the division who shall be the secretary of the board. l . The board of trustees shall keep a record of all of its proceedings which shall

be open to public inspection. The retirement system shall publish annually a report showing the fiscal transactions

of the retirement system for the preceding year, the amount of the accumulated cash

and securities of the system and the last balance sheet showing the financial condition

of the system by means of an actuarial valuation of the assets and liabilities of

the retirement system. m. 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 of trustees for valid reason. It shall be composed of three physicians. The medical board shall pass on all medical examinations required under the provisions

of this act, and shall report in writing to the retirement system its conclusions

and recommendations upon all matters referred to it. n. (Deleted by amendment, P.L.1987, c. 330). o . There is established a committee to be composed of eight members, four of whom shall

be appointed by the Governor as representatives of the public employer whose employees

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

of the State Troopers Fraternal Association, and one of whom shall be appointed by

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

system who are supervisory officers having union membership. The members of the committee shall not be appointed until 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 State Troopers Fraternal Association, 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 subsections c. through g., inclusive, of this section shall apply

to the committee and its members, as appropriate. The committee shall keep a record of all of its proceedings which shall be open

to public inspection. 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 has

attained the target funded ratio. When the retirement 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 to (1) modify

the: member contribution rate; formula for calculation of final compensation or

final salary; age at which a member may be eligible for and the benefits for service

or special 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 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 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. p. 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 subsection, “ 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.