2630                                         Reports

2 of the Resolution permits a member who participates in the new pension
system, and who has pre-1971 years of service, to elect, prior to January
1, 1975, to have the pension for all of his years of service calculated under
the old pension plan, thereby gaining also the right to receive such a
pension prior to reaching age 55. In the event of such an election the
pension is based upon the member's "highest annual earnable compensa-
tion" prior to January 1, 1971.

A member with years of service both prior to and after January 1,
1971, is placed under no compulsion to enroll in the new pension plan. The
new plan is optional for all members as was the prior plan. If such a member
does wish to participate, however, and desires credit under the new plan
for prior years of service, he must make contributions for those years (and
pay interest thereon) in the manner described in the Resolution at the time
he notifies the Employees' Retirement System in writing of his decision
The Commission found no merit in those provisions of the old pension plan
permitting a deferred election to participate in the plan. This "wait and
see" feature not only causes administrative and actuarial headaches, but
permits an unfair advantage to a member utilizing it because he may make
up his contributions at a low rate of simple interest. The option to partici-
pate in the new pension plan, therefore, must be exercised on or before
March 15, 1971 by present members and no later than 60 days after taking
office for members subsequently appointed or elected.

VII. CONCLUSION

In this Report, the Commission has presented the considerations which
resulted in the various recommendations contained in the attached Resolu-
tion. The process of establishing a fair and equitable pattern of compensa-
tion is inexact by its very nature. Fortunately, because of the wording of
the constitutional amendment creating it, the Commission is a continuing
one and will report again three years hence. If experience proves that the
recommendations of the Commission are unrealistic or unjustifiable in any
or all respects, steps may be taken at that time to revise legislative compen-
sation and allowances upward or downward accordingly.

Respectfully submitted,
Williford Gragg, Chairman

Joseph P. Brennan

John E. Chubb

Edward J. Courtney

H. Vernon Eney

Mrs. Elizabeth Murphy Moss

Alfred L. Scanlan

Edward G. Uhl

George S. Wills

The Commission wishes to express its sincere appreciation to Henry
R. Lord, Esquire, Assistant Attorney General, for his assistance in drafting
this Report and the accompanying Resolution. The Commission is also
grateful to Ronald L. Schreiber, Esquire, Deputy Legislative Officer on the
staff of Governor Mandel, for the assistance he has provided it in many
ways since its appointment on December 3, 1970.