Typically, retirement functions comprise a get-together, with or without a meal, and the presentation of a gift or monetary token to the retiree, to his or her spouse, and/or to his or her dependent(s). In planning such events, the responsible group or individual must choose between two approved alternatives with regard to funding and the value of any and all gifts to be presented.
1. Gifts may be funded by a maximum contribution of $5 per person, collected from invitees to the retirement function. If this method of funding is used, no maximum value is set for the cost of the gifts, but contributions of more than $5 per invitee are not permitted.
2. The maximum value of retirement gifts cannot exceed $1,000. If this method is used, there is no maximum set on individual contributions, but the total value of retirement gifts and/or monetary tokens to the retiree, spouse, and dependent(s) cannot exceed $1,000.
If, instead of presenting gifts and/or monetary tokens to the retiree, spouse, and dependent(s), a decision is made to make monetary contribution to a qualified organization (under I.R.S. Code 501(c)(3)), no limit is placed on the maximum value of the contribution.
Retirement gifts from parties with whom the employee has had involvement in his/her official capacity are permissible provided the gift is not excessive or inappropriate for the purpose for which it is given.
Any questions about these guidelines or their implementation should be addressed to:
State Ethics Commission
28 West State Street
Room 1407 - P.O. Box 082
Trenton, New Jersey 08625
February 15, 1989; August 2006; Sept. 2006