The following is taken from pages 83-84 of Tom Hartman's lectures on Quantum Gravity and Black Holes.
See related questions here and here.
Consider a one-dimensional system with
- a single degree of freedom $q(t)$ and
- a conjugate momentum $\frac{\partial L}{\partial \dot{q}}$.
The action for the system is \begin{align}I = \int dt\ L = \int dt\ \left[ \frac{\partial L}{\partial \dot{q}} \dot{q}-H(p,q)\right].\end{align}
We can introduce a fake time-reparameterization symmetry by
- introducing a fake degree of freedom $t(\tau)$ and
- imposing the constraint $H(p,q) = -\frac{\partial L}{\partial t'},$
where $'$ denotes differentiation with respect to $\tau$.
Then, we find that the action becomes
$$I = \int d\tau \left[ \frac{\partial L}{\partial q'} q' + \frac{\partial L}{\partial t'} t' - N\left(H(p,q)+\frac{\partial L}{\partial t'}\right)\right],$$
where $N$ is a Lagrangian multiplier.
Then, the new Hamiltonian of the system is
$$H' = N \left( H(p,q)+\frac{\partial L}{\partial t'} \right).$$
The Hamiltonian $H'$, of course, vanishes on-shell, but I do not see why this is because $H'$ generates $\tau$-translations.