treasury home page pensions and benefits home page treasury search seminars SHBP home page pensions and benefits home page treasury home page forms and publications EPBAM - employer manual contact us privacy notice legal statement nj home
top navigation graphic nj home my new jersey people business government departments
Pensions and Benefits Graphic
spacer

Cite as 31 N.J. Reg. 3229(a)

PROPOSED READOPTION WITH AMENDMENTS: N.J.A.C. 17:2

Additions are indicated by Text ; deletions by Text . Changes in tables are made but not highlighted.

Proposed New Rules: N.J.A.C. 17:2-3.9, 5.9, 5.10 and 7.2

Proposed Recodification with Amendments: N.J.A.C. 17:2-5.9 as 4.15 and 5.10 as 4.16

Proposed Repeals: N.J.A.C. 17:2-1.10, 4.5, 5.7, 6.19 and 6.23

The agency proposal follows:

Summary The Board of Trustees of the Public Employees' Retirement System is responsible for reviewing the administrative rules within N.J.A.C. 17:2. When it becomes aware of a change in the laws or a court decision that possibly could affect the Public Employees' Retirement System, the administrative rules are reviewed and, if changes therein are mandated, steps are taken to propose changes to those rules to conform to the new statute or court decision. Additionally, the rules are periodically reviewed by the Division of Pensions and Benefits, and the Board's staff to ascertain if the current rules are necessary and/or cost efficient.

After an extensive review through committees and multiple revisions, and a thorough review of the System's enabling statutes, the Board of Trustees of the Public Employees' Retirement System accordingly proposes to adopt N.J.A.C. 17:2, which expires on February 21, 2000, with amendments, repeals and new rules, and to extend the expiration date for such rules under Executive Order No. 66(1978). The current rules deal with administration, enrollment, insurance and death benefits, membership, purchases and eligible service, retirement and transfer aspects associated with the Public Employees' Retirement System.

Members, participating employers, retirees and survivors of retirees rely on the efficient operation of the retirement system to administer retirement benefits and to provide the information they need regarding individual accounts. They rely upon the presence and predictability of the rules that guide the administration of benefits and the stability of the Retirement System. The protections and guarantees that these rules afford its members mandate their continued existence.

The rules proposed for readoption and the proposed amendments, repeals and new rules reflect the requirements for eligibility and amounts of benefits available that are mandated within the statutes governing the Public Employees' Retirement System. The chapter originally became effective prior to September 1, 1969. Pursuant to Executive Order No. 66(1978), the chapter was readopted as new rules in 1984, and was readopted in 1989. In 1995 the chapter was again readopted as new rules. Following is a discussion of the proposed amendments, repeals and new rules.

Subchapter 1. Administration

The Board proposes that N.J.A.C. 17:2-1.1(b) be deleted as meetings are now regularly held in August. A proposed amendment at N.J.A.C. 17:2-1.1(c) (to be recodified as (b)) would change "chairman" to "chairperson." This change is to be made throughout the chapter. N.J.A.C. 17:2-1.3(a) is proposed to be amended to add that "a representative to the State Investment Council and the Pension System Actuary Committee" would be elected at this time, to reflect actual Board practice. "Board" and "Secretary" are proposed to be capitalized throughout the chapter. Proposed amendments to N.J.A.C. 17:2-1.3(e) insert the words "five members, three of whom shall be elected members of the Board" to conform to the statutory requirements of N.J.S.A. 43:15A-32 concerning finance committee membership.

Proposed amendments to N.J.A.C. 17:2-1.5 would change Certifying "agent" to Certifying "Officer" throughout this chapter because the participating employers are not agents of the Division. N.J.A.C. 17:2-1.5(d) would be added, stating "The Certifying Officer may be required to sign a statement, verifying that any reported information is accurate to the best of the officer's knowledge, and conforms with the statutes and rules governing the retirement system." This language will impress upon the Certifying Officers the importance of accuracy in the information they provide the Division.

Proposed amendments to N.J.A.C. 17:2-1.6 would add subsection (c) dealing with beneficiary information. The confidentiality of beneficiary information appears at N.J.A.C. 17:1-4.1 under General Administration, but the Board believes it also belongs in the PERS rules. Advice from the Attorney General's Office has been interpreted to permit the Division to release beneficiary information once a member's death has been reported to the System; therefore, proposed new N.J.A.C. 17:2-1.6(c) would provide as follows: "The designations of beneficiaries of all active and retired members are considered to be a part of the member's confidential files and shall only be released after the member's death has been entered into the reporting system." Existing subsection (c) would be recodified as (d). Proposed amendments at new (d) would establish the conditions under which the Division will release medical records.

The proposed amendments to N.J.A.C. 17:2-1.7 would change the word "claimant" to "applicant" to reflect Division practice. The required notice is proposed to be expanded through the efforts of the Board Secretary and the Attorney General's Office to include more information regarding the appeals process. These new paragraphs are to replace the existing notice.

Proposed amendments to N.J.A.C. 17:2-1.8(a)2 would make all retirants subject to pension check suspension, under the articulated circumstances and not just those retirants under age 60. All references to age would have been removed from the rules governing disability retirements to comply with the acts protecting older Americans. The Board proposes to repeal N.J.A.C. 17:2-1.10 as it is also found at N.J.A.C. 17:2-6.27(c)1.

Proposed amendments to N.J.A.C. 17:2-1.11(a) would delete "may be required" and replace it with "shall," because a member's age is required information. The next sentence would be deleted as the Division no longer targets those 45 or above for birth date evidence. A new sentence detailing acceptable proofs of age would appear next to establish examples of acceptable proofs. A proposed amendment to N.J.A.C. 17:2-1.11(b) would make the provision of evidence of birth date mandatory.

The proposed amendments to N.J.A.C. 17:2-1.12 would eliminate the word "State" from the section heading. In subsection (a). "State employees paid by centralized payroll" is replaced with "employers who report salary and contributions on a biweekly basis" because the computer reporting systems of employers are expected to be advanced enough at this time so as to permit the Division to request on-line reporting of information instead of paper-based reporting.

A proposed amendment to N.J.A.C. 17:2-1.13 would add a subsection (b) which will indicate that the contribution rate of all members is five percent due to the enactment of P.L. 1994, c.62, regardless of age at enrollment. Existing subsection (b) will be deleted because its subject matter will be addressed in (a).

Subchapter 2. Enrollment

Proposed amendments to N.J.A.C. 17:2-2.1(b) would delete the words "dual enrollments" as the word "dual" in the retirement system usage means different retirement systems and not multiple employment within the same system. The word "prescribed" would be changed to "required" to conform with more modern usage. N.J.A.C. 17:2-2.2(a) would be amended by replacing "his or her" and "he or she" with "the employee," while N.J.A.C. 17:2-2.2(b) would be amended by replacing "he or she" with "the elected official." The following sentences would be added to establish the applicable enrollment date in the situation outlined therein: "If the elected official was employed in the optional position first, the enrollment date for the optional position is established as the effective date of enrollment of the position which required the elected official to establish membership in the retirement system. If the individual has already established membership in the retirement system, the effective date of enrollment of the optional employment is established as the date of hire." Subsection (c) is proposed to be deleted. The Division interprets P.L. 1994, c.62, to require Law Enforcement Officers to contribute at the same rate as other PERS members.

Proposed amendments to N.J.A.C. 17:2-2.4 would do the following: "his and her" would be amended to be "their." A new paragraph (a)1 would be established using the existing language regarding the enrollment date of monthly employees, while a new paragraph (a)2 would be added to define what the compulsory enrollment date will be for biweekly employees. Subsection (b) would address optional enrollees and would change the word "applicant" to "employee." The words "for those reported monthly or first day of the next biweekly pay period for those reported on a biweekly basis" would be added to clarify the enrollment date for optional employees. The sentence, "fails to give the date of his or her enrollment application that he or she desires to enroll in the system" would be deleted. Subsection (b) would be recodified as (c) and the word "his" would be replaced with "the" and "he" would be replaced by "the employee." Paragraph (c)2 would be amended and new paragraph (c)3 would be added, to address monthly and biweekly enrollment dates. Subsection (c) would be recodified as (d), and the words "his" and "he" amended to be "the." New paragraphs (d)1 and 2 dealing with monthly and biweekly enrollment dates, would be added.

Proposed amendments to N.J.A.C. 17:2-2.7 would implement gender-neutral language and a new paragraph (a)13 would be added to state that members returning after July 1995 would be assigned a five percent rate of contribution.

Subchapter 3. Insurance and Death Benefits

Proposed amendments to N.J.A.C. 17:2-3.1(c) implement gender-neutral language and add the phrase "and meeting the eligibility requirements of the retirement system underwriter." Proposed amendments to N.J.A.C. 17:2-3.2 would delete subsection (a) because it is the same as N.J.A.C. 17:2-3.11. Existing paragraphs (a)1 and 2 would be recodified as (a) and (b). Text from subsection (d) would be added to new subsection (a). Existing subsection (d) would be deleted as redundant. The subsections would be recodified because of this, and redundant subsections (e) and (c) would be combined. Grammatical and technical changes to implement gender-neutral language, would be made throughout. Existing subsection (f) would be amended to delete the first sentence, "where a post-audit of insurance claim payments indicates the pension contributions reported by an employer were incorrect and resulted in the overpayment of an insurance claim to a member's designated beneficiary or estate, the employer will be billed for the value of the overpayment of the insurance benefits," as this will no longer be Division practice.

A proposed amendment at subsection (h) (to be recodified from existing subsection (i)) would require members to be paid "12 months a year" in order for their service to be credited. The word "State" would be deleted before "employees" and "biweekly payrolls" throughout the rule because the Division is expecting some local employers to report salary and contributions on a biweekly basis in the future instead of just the State locations. Subsection (j), to be recodified from existing subsection (k), would be amended to delete the words "or retirement," as this rule does not deal with retirement. In addition, the last sentence is to be deleted, as the subject matter of this provision is to be addressed in subsection (b).

The proposed amendments to N.J.A.C. 17:2-3.3 would reduce fifty-five one- hundredths to "one-half" due to the reduction of contributory insurance rates because of good experience rating and return of investments of the fund. This reduced rate became effective on January 1, 1999. N.J.A.C. 17:2-3.5 would be amended to have "life insurance coverage" added to the title and in the rule to clarify what type of coverage this refers to.

The proposed amendments to N.J.A.C. 17:2-3.6 would replace "of" with "subsequent to" and "as of" to "the first of the month subsequent to the date" in subsection (a) and would delete "immediately preceding the month" in subsection (b) due to the enactment of P.L. 1993, c.335, which provides for a benefit payable for the entire month in which a member or beneficiary dies.

Proposed technical amendments to N.J.A.C. 17:2-3.8 will capitalize "System" and make the text gender-neutral. Proposed new rule N.J.A.C. 17:2-3.9, Retired life insurance coverage, establishes the requirement that a member must have 10 or more years of pension credit or must retire on a disability retirement to be eligible for a paid-in- full death benefit. It also makes clear the amount of the death benefit and that contributory life insurance ceases at retirement. The proposed amendments to N.J.A.C. 17:2-3.10 include the addition of a new subsection (a) which states that "Contributory insurance coverage will be in effect for up to two years while a member is on an official leave of absence for the personal illness of the member without contribution by the member." This has been Division practice, based on statutory authority, but it was not established in the Administrative Code. Subsection (b) would establish that "insurance premiums are paid in advance by the member. It is the member's responsibility to make arrangements directly with the Division to continue these premium payments." This requirement of insurance premiums appears in existing paragraph (a)3, which is to be revised to delete redundancy. "Up to one year" was added before "to fulfill a residency requirement for an advanced degree; or as a full-time student at an institution of higher education" because this is the statutory time limitation of N.J.S.A. 43:15A-108(b) which has existed for many years, but which was not clearly stated in the Code.

Proposed amendments to N.J.A.C. 17:2-3.12 include the deletion of subsection (a) because the Division does not wish to limit the naming of beneficiaries. Subsection (b) would be recodified as (a) and would be amended to indicate that "When a member achieves multiple status by becoming employed by one or more additional employers in an eligible position or positions and files an enrollment application, the beneficiaries designated on the most recently submitted enrollment application supersede any older designations of beneficiaries on file." This is existing Division practice. The Board does not request the member to file new designations of beneficiaries if the beneficiaries on an enrollment application from a multiple location does not agree with the previous enrollment. N.J.A.C. 17:2-3.12(c) would be recodified as (b) and would be amended to substitute the words "any" and "more" for "anymore." Finally, an amendment at subsection (c) would correct a statutory reference, as the statute cited in the existing text was repealed and replaced by the statute proposed to be cited in its place. N.J.A.C. 17:2-3.13(b) would be amended to correct the statutory reference N.J.S.A. 18A:66-47 which refers to the Teachers' Pension and Annuity Fund and replace it with N.J.S.A. 43:15A-50, which is in the PERS statutes.

Subchapter 4. Membership

Proposed amendments to N.J.A.C. 17:2-4.2 would make the text gender-neutral.

N.J.A.C. 17:2-4.5 would be repealed because it is no longer needed by the Purchase Section and the form CS-21 is no longer to be used for verification of leaves. N.J.A.C. 17:2-4.6 would be amended to correspond to the tolerance set by N.J.A.C. 17:1-10(e) which is $2.00 per quarter and not $3.00 per year.

Proposed amendments to N.J.A.C. 17:2-4.8 would make this rule applicable only to periods of military leave prior to August 1, 1974. Attorney General Formal Opinion 1975, No. 9 limited the applicability of N.J.S.A. 38:23-6 to periods of war or national emergency prior to August 1, 1974. Proposed amendments to N.J.A.C. 17:2-4.9 would clarify what the member's maximum outstanding loan balance can be. Proposed amendments to N.J.A.C. 17:2-4.10 would expand the section heading to "waiver of retirement benefits upon withdrawal." The following sentence will be added to clarify when an estimate of retirement benefits is required before a waiver may be signed: "If a member is eligible to begin receiving a monthly retirement allowance (age 60 or more, or 25 years or more of credited service), the Division shall inform the member of the estimated amount of the retirement allowance and shall require the member to sign a waiver of such benefits, should the member still wish to withdraw."

Proposed amendment to N.J.A.C. 17:2-4.12 adds "pension and contributory insurance" before "deduction" to clarify what type of deduction is meant. In addition, subsection (b) is to be amended to establish that service credit shall not be given when deductions are not taken, and to address employers who report on either biweekly or monthly bases.

Proposed amendments to N.J.A.C. 17:2-4.13 insert the words "the day" to clarify when coverage is in effect. The requirements of proposed new rule N.J.A.C. 17:2-4.15 appear as existing N.J.A.C. 17:2-5.9, Ineligible service. Proposed new rule N.J.A.C. 17:2-4.16 appears as existing N.J.A.C. 17:2-5.10, Creditable service; law enforcement officers. These rules will be added to subchapter 4, Membership, as they deal with membership and not purchase issues. In N.J.A.C. 17:2-4.15, the words "leave of absence without pay" are to be omitted because the purchase of this type of service is covered in other sections.

Subchapter 5. Purchases and Eligible Service

Proposed amendments to N.J.A.C. 17:2-5.3 are technical. Proposed amendments to N.J.A.C. 17:2-5.4 would delete the word "purchase" from the section heading because this section deals with back deductions and not purchases. "Make retroactive contributions" would replace "purchase membership credit retroactive." Subsection (b) would remain unchanged except for the deletion of the letter "s" at the end of "purchases," the last word of this section. N.J.A.C. 17:2-5.7 would be repealed as the purchase of military time is covered under N.J.A.C. 17:2-5.5(b).

Proposed amendments to N.J.A.C. 17:2-5.8 would add hourly, on-call or as needed employees and would change the amount of days needed to 10 from 20. As stated above, N.J.A.C. 17:2-5.9 would be recodified with amendments as N.J.A.C. 17:2-4.15 because it deals with membership and not purchase issues. As stated above, N.J.A.C. 17:2-5.10 would be recodified as N.J.A.C. 17:2-4.16 as it does not deal with purchase issues.

Proposed amendments to N.J.A.C. 17:2-5.12 would provide that service credit and payment therefor shall be calculated "with applicable regular interest," and the last sentence is to be deleted to reflect how the Division will calculate these amounts.

N.J.A.C. 17:2-5.13 would remain the same except for the capitalization of Retirement System.

Subchapter 6. Retirement

Proposed amendments to N.J.A.C. 17:2-6.1(a) would indicate that the Division of Pensions and Benefits would receive applications under this rule. Language regarding the default effective date and retirement from all covered positions will be added. These are existing statutory requirements. In subsection (b), "Division" would replace "system," and "acceptance for" would be deleted, as the Division will accept an incomplete application but cannot process it. N.J.A.C. 17:2-6.1(c) would be amended to delete "it must be supported by a certificate" which would be replaced by "a completed Certification of Service and Final Salary form" which is the required form. The request for proof of age would be moved to the beginning of the sentence for additional clarity. Finally, N.J.A.C. 17:2-6.1(d) would be clarified to state what reports must be filed to support a disability retirement. The employer's statement will no longer be required because employers are not qualified to render the necessary medical opinions.

N.J.A.C. 17:2-6.3 would be repealed and the text recodified as new rule N.J.A.C. 17:2-6.2. "Death prior to" would be deleted from the section heading. Subsection (b) would be repealed because N.J.A.C. 17:2-3.13, Benefits payable under P.L. 1984, c.96 as amended by P.L. 1995, c.221, addresses the subject matter of (b). N.J.A.C. 17:2-6.2 would be recodified as N.J.A.C. 17:2-6.3 and amended so that the first sentence will address withdrawing from the system or canceling a retirement, while the second sentence will deal with changes to the retirement application. N.J.A.C. 17:2-6.2(b) would be amended to clarify that only a change in retirement option or date must go to the Board. Subsection (c) would be deleted, as it is no longer valid since the passage of P.L. 1995, c.221.

Subsection (d) would be recodified as (c) and confirms that a member may elect to retire on his or her 60th birthday if that birthday falls on the first of the month. Subsections (e) and (f) would be recodified as (d) and (e). N.J.A.C. 17:2-6.7(a)1 would be amended to clarify that the applicant must be a member to file unless he or she falls under the exception stated in N.J.A.C. 17:2-6.15, and to delete the requirement that the member be under age 60. Proposed amendments at N.J.A.C. 17:2-6.9 would delete the last sentence to conform to Division practice. Any medical information must be updated in order to file again.

Proposed amendments at N.J.A.C. 17:2-6.10 would amend the section heading to be "Involuntary disability application," and add the requirement that the certifying officer sign the application. Paragraphs (a)2 and 3 would be deleted and replaced with the requirement that the employer submit a written statement as to the grounds for the employer's application for the member's involuntary disability retirement and all available medical evidence. Paragraphs (a)4, 5, 6 and 7 would be recodified as (a)3, 4, 5 and 6.

Proposed amendments at N.J.A.C. 17:2-6.11 would add "reduction" to the section heading to better reflect the topic of this section. Subsections (a) and (b) would be reversed and age 55 would be changed to age 60 because anything under 60 is defined as "early" retirement. N.J.A.C. 17:2-6.12 would be amended to include a sentence regarding when a member's 60th birthday is the first of a month.

Proposed amendments at N.J.A.C. 17:2-6.13(a) would include the deletion of "as of the anniversary date of their retirement" and the change of "he" and "his" to the "retirant."

Proposed amendments at N.J.A.C. 17:2-6.14(b)3 would delete the last line and add that reduction will be dollar for dollar and that the Board will determine the length of the repayment. Proposed amendments at N.J.A.C. 17:2-6.16 are technical. A cross-reference to N.J.S.A. 43:15A-99 would be added to subsection (f).

N.J.A.C. 17:2-6.18 would be amended to include the word "regular" in front of "monthly allowance" to clarify that this is the amount to be subtracted from the reserve. "He" is amended to be "the retirant." N.J.A.C. 17:2-6.19 is proposed to be repealed to permit members or persons acting in their behalf greater options in the selection of retirement allowances. Proposed amendments at N.J.A.C. 17:2-6.20 include a reformatting of subsection (a) for clarity, and the addition of the words, "reported monthly" to the section headings. The word "pensionable" would be added to clarify that only months in which service credit accrued will be counted. The phrase, "including any retroactive salary payments that are attributable to the covered period," would be added to indicate that this type of salary is, and has been, includable. Subsection (c) would be deleted, as the added text establishes that only months in which service credit is received count.

The amendments at N.J.A.C. 17:2-6.21 include the addition of "paid on a monthly basis" to the section heading, and the deletion of "(veteran one-half pay retirement)" because this rule will deal with veterans both with 35 years and those who will receive half-pay. The format has been changed to better correspond to the rest of this rule in which the Board addresses 10-month and 12-month employees separately. Paragraphs (a)1 and 2 address the last year salary of veterans with 35 or more years of creditable service, while paragraphs (a)3 and 4 address veterans with 20 years aged 62 or more. Paragraphs (a)3 and 4 were added due to the enactment of P.L. 1995, c.332 which allows a veteran retiring on half-pay to use either the last 10 or 12 months of salary or the salary in a consecutive 10 or 12-month period in which the highest salary was attained.

Proposed amendments at N.J.A.C. 17:2-6.22 include the addition of "retired members or beneficiaries" instead of "person" and "retroactive" before "payment" as the Division does not pay amounts waived retroactively. N.J.A.C. 17:2-6.23 would be repealed because the statute it was based on, N.J.S.A. 43:14-17 was repealed in 1954, and the new statute which was adopted, N.J.S.A. 43:15A-26, deals with amounts contributed before 1953.

Proposed amendments at N.J.A.C. 17:2-6.24 would delete "State" before "employees" because more employers are expected to report on a biweekly basis, and this rule would apply to them as well. "Pensionable pay periods" would replace "pays" to indicate that only pay periods that received pension credit could be used in the determination. This clarification would allow for the deletion of the last sentence, "The biweekly pay periods for which no contributions were made shall be zero." "Prescribed" would be replaced with "covered" to reflect more common word usage. Proposed amendments at N.J.A.C. 17:2-6.25 would delete "State employees" and "centralized payroll" and add "on a biweekly basis," because more employers are expected to report on a biweekly basis, and this would apply to them. The section format has been changed to better correspond to the rest of this subsection in which the Board addresses 10 and 12-month employees. Subsection (a) and (b) address the last year salary of veterans with 35 or more years of creditable service, while subsection (c) and (d) deal with veterans with 20 years aged 62 or more. Subsections (c) and (d) were added due to the enactment of P.L. 1995, c.332, which allows a veteran retiring on half-pay to use either the last 10 or 12 months of salary or the salary in a consecutive 10 or 12- month period in which the highest salary was attained. The words "death or" would be deleted from new subsection (b) (now (e)) because this rule deals with retirement and not death.

Proposed amendments at N.J.A.C. 17:2-6.26 would delete references to specific membership directories from which physicians are to be designated by the Board or the Retirement System to conduct required medical examinations, and would require those physicians to be independent except in the case of "imminent death." The amendments at N.J.A.C. 17:2-6.27 would replace the gender pronouns with "the member" and would change the word "dues" to "duties" in paragraph (c)1.

Subchapter 7. Transfers

The amendments at N.J.A.C. 17:2-7.1 would include a new subsection (a), stating that "the receipt of a public pension or retirement benefit is expressly conditioned upon the rendering of honorable service by a public officer or employee. Therefore, the Board of Trustees shall disallow the transfer of all or a portion of prior service of any member of the

System for misconduct occurring during the member's prior public service which renders that prior service, or part thereof, dishonorable." This is necessary to establish that only honorable service can be transferred. Paragraphs (b)1 and 2 (former (a)1 and 2) are amended to clarify that service credits and contributions transfer, and the form names have been changed. The Division now does wire transfers and not checks. Back deductions are scheduled in the new account. Paragraph (b)3 (former (a)3) allows the statement to be prepared and forwarded, but does not require it to accompany a check because we don't issue one. Paragraph (b)4 (former (a)4) would delete mention of the same rate of contribution because we now have standardized and not age based rates. Paragraph (b)5 (former (a)5) is amended to detail when a member is not eligible to transfer service credit. Paragraph (a)6 would be deleted because it is no longer Division practice. Paragraph (b)6 is proposed to be amended to reflect a change in Division practice, which is to use a data sheet indicating an interfund transfer. Subsection (c) is proposed to be amended to clarify the procedure for handling and valuation of accrued reserves. Subsection (d) would also be deleted because of the standardized rates now in effect.

Proposed new rule N.J.A.C. 17:2-7.2 would clarify when a member is eligible to do an intrafund transfer, and impose penalties on employers for late enrollment.

Full text of the proposed amendments and new rules follows:

    SUBCHAPTER 1. ADMINISTRATION

    17:2-1.1 Board meetings

    (a) The Board of Trustees shall meet on the third Wednesday of each month or at such other time as may be deemed necessary by the board Board.

    (b) No meeting will be held in the month of August unless it is deemed necessary by the chairman or the secretary.

    (c)(b) The chairman chairperson may call for special meetings when necessary.

    17:2-1.3 Officers and committees

    (a) The members of the board Board shall elect a chairman chairperson and vice chairman chairperson, a representative to the State Investment Council, and the Pension System Actuary Committee from its membership for the forthcoming year at its regular meeting held in July.

    (b) The chairman chairperson of the Board shall preside at all of its meetings, or in the absence of the chairman chairperson, the vice chairman chairperson shall assume the chairman's chairperson's responsibilities.

    (c) The chairman chairperson and the secretary Secretary of the board Board shall have the power to act for the board Board in any matter which may be referred to them by the Board of Trustees.

    (d) There shall be three standing committees, which are the finance committee, the retirement committee, and the executive committee. The committees shall be appointed by the chairman chairperson at the July meeting for the forthcoming fiscal year.

    (e) The finance committee shall review all investment transactions and financial reports referred to it by the secretary Secretary for presentation to the board Board at its regular monthly meetings. The committee shall consist of five members, three of whom shall be elected members of the Board.

    (f) The retirement committee shall consider all cases referred to it by the secretary Secretary and submit its recommendations to the board Board at its next meeting. The committee shall consist of three members.

    (g) The executive committee shall consider all cases referred to it by the secretary Secretary and submit its recommendations to the board Board at its next meeting. The committee shall consist of three members.

    17:2-1.5 Certifying agent Officer (employer)

    (a) The Chief Fiscal Officer or other officer duly designated via resolution of each county, municipality or public agency and the personnel officer of the Division, Bureau or Institution of the State locations shall serve as the certifying agent Certifying Officer for that unit.

    (b) The Certifying agent Officer shall be responsible for the duties described by N.J.S.A. 43:15A-67 and Section 80 and any other section which refers to the Department head.

    (c) The Certifying agent Officer shall also be responsible for all other duties relating to matters concerning the System.

    (d) Upon the request of the Board, the Certifying Officer shall be required to sign a statement, verifying that any information reported is accurate to the best of the Officer's knowledge, and conforms with the statutes and rules governing the retirement system.

    17:2-1.6 Records

    (a)-(b) (No change.)

    (c) The designations of beneficiaries of all active and retired members are considered to be a part of the member's confidential files and shall only be released after the member's death.

    (c)(d) All medical testimony obtained in connection with an application for disability retirement shall be restricted for the confidential use of the Board of Trustees. The Division shall release a copy of the examining physician's medical report to the member, the member's attorney or any person authorized by the member in writing to receive a copy of such report. In no event shall the report be released to any individual not authorized in writing to receive the report.

    17:2-1.7 Appeal from Board decisions

    The following statement shall be incorporated in every written notice setting forth the Board's determination in a matter where such determination is contrary to the claim made by the claimant or his the claimant's legal representative:

    "If you disagree with the determination of the Board of Trustees in this matter, you may appeal by sending a written statement to the Board within 45 days from the date of this letter informing the Board of your disagreement and all of the reasons therefor. In no such written statement is received within the 45-day period, this determination shall be considered final."

    '(a) If you disagree with the determination of the Board, you may appeal by submitting a written statement to the Board within 45 days after the date of written notice of the determination. The statement shall set forth in detail the reasons for your disagreement with the Board's determination and shall include any relevant documentation supporting your claim. If no such written statement is received within the 45-day period, the determination by the Board shall be final.

    (b) The Board shall determine whether to grant an administrative hearing based upon the standards for a contested case hearing set forth in the Administrative Procedure Act, N.J.S.A. 52:14B-1 et seq., and the Uniform Administrative Procedure Rules, N.J.A.C. 1:1-1 et seq.

    (c) Administrative hearings shall be conducted by the Office of Administrative Law pursuant to the provisions of N.J.S.A. 52:14B-1 et seq. and N.J.A.C. 1:1-1.

    (d) If the granted appeal involves solely a question of law, the Board may retain the matter and issue a final determination which shall include detailed findings of fact and conclusions of law based upon the documents, submissions and legal arguments of the parties. The Board's final determination may be appealed to the Superior Court, Appellate Division.

    (e) If the granted appeal involves a question of facts, the Board shall submit the matter to the Office of Administrative Law.'

    17:2-1.8 Suspension of pension checks

    The disbursement of pension checks shall be suspended under the following circumstances and such suspensions shall continue during the period in default:

    1. (No change.)

    2. If a disability retirant under age 60 fails to timely file a report with the System of his annual earned income;

    3.-4. (No change.)

    17:2-1.10 Travel (Reserved)

    Travel to and from work when it is to and from the regular place of employment is not considered duty rendered in the course of employment for the purpose of determining eligibility for accidental disability or accidental death benefits.

    17:2-1.11 Proof of age

    (a) All members may be required to shall establish proof of their age with the System. A person enrolling at age 45 or older may be required to submit evidence at time of enrollment; under age 45, before a period of five years has elapsed from date of employment.

    Acceptable proofs of age include birth or baptismal certificates,

    passports, naturalization papers, Biblical records, affidavits of older members of the immediate family or primary school records.

    (b) In the event a member dies before satisfactory evidence of his the member's date of birth has been filed with the System, appropriate evidence may shall be required before any death claim is processed for settlement.

    (c) (No change.)

    17:2-1.12 State employees State Employees; biweekly salaries

    (a) Retirement and death benefits as well as service credit will be determined on the basis of biweekly pay periods for State employees paid by centralized payroll whose employers report salary and contributions on a biweekly basis. This biweekly schedule should conform to the biweekly reporting schedule issued by the State's Centralized Payroll Office.

    (b) In the event a member is reported on a combination of monthly and biweekly pay periods, his the member's last year's salary or final compensation as well as his the member's service credit will be computed on a proportional basis.

    17:2-1.13 Nearest attained age; enrollment; retirement

    (a) An individual Members who is are six months or more past his or her their most recent birthdate at the time of his or her enrollment or retirement will have his or her their pension contribution rate and retirement factor based upon the their age on his

    or her their next birthday.

    (b) Retired members and survivors will have their benefits calculated upon the basis of the factors applicable to their age as set forth in (a) above.

    (b) A flat five percent pension rate of contribution was enacted by P.L. 1994, c.62 for all employees enrolled on or after July 1, 1994. For members enrolled prior to July 1, 1994 whose previous full rate of contributions was six percent or more, the five percent contribution rate became effective on July 1, 1995. For members enrolled prior to July 1, 1994 whose previous full rate of contributions was less than six percent, their rate of contributions became four percent on July 1, 1995 and then five percent on July 1, 1996.

    SUBCHAPTER 2. ENROLLMENT

    17:2-2.1 Social Security coverage

    (a) (No change.)

    (b) In the case of multiple employments (dual enrollments), Social Security coverage is prescribed required in each position or employment for each to be qualified qualify for membership.

    17:2-2.2 Multiple employments

    (a) Any employee who has enrolled in a covered position must also enroll in any other position regardless of his or her the employee's employment status in such other position if he or she the employee's meets the salary and Social Security qualifications for enrollment. However, if an employee who is ineligible for

    membership later accepts an additional position which makes him or her the employee eligible for membership in that second position, his or her the employee's ineligibility for membership in the earlier position is not altered by his or her the employee's enrollment in the Public Employees' Retirement System.

    (b) An elected official must also enroll on the basis of such office if he or she the elected official is enrolled or is enrolling on the basis of other public employment. If the elected official was employed in the optional position first, the enrollment date for the optional position is established as the effective date of enrollment of the position which required the elected official to establish membership in the retirement system. If the individual has already established membership in the retirement system, the effective date of enrollment of the optional employment is established as the date of hire.

    (c) A LEO member who is also enrolled on the basis of a non-LEO position will contribute at the LEO rate of pension contribution on the base wages he or she receives from all positions.

    17:2-2.4 Enrollment date

    A new appointee New employees in the classified service shall be considered as beginning his or her their service on the date of his or her their regular appointments. The compulsory enrollment date shall be

    1. For employers who report on a monthly basis, the compulsory enrollment date shall be fixed as the first of the month for an appointee employee whose regular appointment date falls between the first through the 16th of the month and the compulsory enrollment date shall be fixed as the first of the following month for an appointee employee whose regular appointment date falls between the 17th and the end of the month.

    2. For employers who report on a biweekly basis, the compulsory enrollment date shall be fixed as the first day of the pay period for an employee whose appointment date falls on the first through seventh day of the biweekly pay period. The compulsory enrollment date shall be fixed as the first day of the following biweekly pay period for an employee whose appointment date falls on any subsequent date within that pay period.

    (b) If an applicant employee is, an optional enrollee, fails to give the date of his or her enrollment application that he or she desires to enroll in the system, the applicant employee shall be enrolled as of the first of the month for those whose employers report on a monthly basis or the first day of the next biweekly pay period for those whose employers report on a biweekly basis following the receipt of the enrollment application.

    (b)(c) An employee in the unclassified service or an elected position shall be considered as beginning service on the date of his the original appointment, or the date when he the employee assumed duties of the elective office, as the case may be.

    1. (No change.)

    2. The date of compulsory enrollment For employers who report on a monthly basis, the compulsory enrollment date shall be fixed as the first of the month for an appointee employee whose beginning employment date falls between the first through 16th of the month and the compulsory enrollment date shall be fixed as the first of the following month for an appointee employee whose beginning employment date falls between the 17th and the end of the month.

    3. For employers who report on a biweekly basis, the compulsory enrollment date shall be fixed as the first day of the pay period for an employee whose date of hire falls on the first through seventh day of the biweekly pay period. The compulsory enrollment date shall be fixed as the first day of the following biweekly pay period for an employee whose date of hire falls on any subsequent date within that pay period.

    (c)(d) An employee of a Civil Service employer who is not in a classified or unclassified position or an employee of a non-Civil Service employer who is not in a regular budgeted position may be considered a temporary employee by his the employer for the one-year period following the employee's date of hire, but if his the employment continues into his a second year, he the employee will be required to enroll immediately; his, as follows:

    1. For employees whose employers report on a monthly basis compulsory enrollment date will be the first of the month following the end of the one-year (12-month) period.

    2. For employees whose employers report on a biweekly basis, the compulsory enrollment date will be the first day of the pay period following the end of the one-year (12-month) period.

    17:2-2.7 Enrollment following deferred retirement

  • The membership account under which a member elected deferred retirement who resumes regular service prior to age 60 shall be reinstated.

  • 1. He The member shall be assigned his the original rate of contribution if he the member resumes service before a period of two years has elapsed since he the member last made a contribution to his the account.

    2. If there has been a lapse of more than two years, a commuted rate shall be assigned. Such commuted rate of contribution shall be determined by adding the lapsed period to his the member's age as of the date of his original enrollment.

    3. Members who return to employment after July 1, 1995 shall be assigned the contribution rate of five percent.

    SUBCHAPTER 3. INSURANCE AND DEATH BENEFITS

    17:2-3.1 Compulsory and optional enrollment

    (a)-(b) (No change.)

    (c) When proof of insurability is required, the member's opportunity to prove such insurability shall expire one year (12 months) from the date the initial written notice is sent advising him or her the member that he or she the member must prove insurability by taking a medical examination and meeting the eligibility requirements of the Retirement System underwriter.

    17:2-3.2 Computation of insurance benefits

    (a) Any member who is reported on a 10-month basis and who has not resigned or been discharged, shall be covered by his or her insurance benefits for the month or months he or she is on his regular seasonal layoff.

    1. The (a) A member's insurance death benefit shall be based upon the base salary upon which contributions to the annuity savings fund were made that are is attributable to the 12 months or 26 biweekly pay periods immediately preceding his or her the member's death upon which contributions to the annuity savings fund were made.

    2. The (b) For the purpose of calculating the benefit payable in (a) above, the salary, in the a month or biweekly pay period in which no salary was paid, shall be counted as zero.

    (b)(c) Full salary credit will be given for the month monthly or biweekly pay period in which a member dies, if he the member was paid salary to date of death and the salary paid was sufficient to permit a full normal month's monthly or biweekly pension and insurance contribution deduction, provided such deduction was made by the employer.

    (c)(d) If a member dies during the first year following his the member's date of enrollment, or if the member has contributed pension contributions for less than a year although the member's enrollment has been in effect for more than a year, the contributory insurance benefit shall be 1 1/2 times the member's annual base salary on which he the member contributed or would have contributed immediately prior to his death. The noncontributory insurance benefit shall be 1 1/2 times the actual base salary upon which contributions to the annuity savings fund were due from the date of enrollment to the date of death.

    (d) For a member dying after the first year following his or her date of compulsory enrollment, both the noncontributory and contributory insurance benefit shall be determined upon the base salary upon which contributions to the annuity savings fund were made, that are attributable to the 12 months or 26 biweekly pay periods preceding death.

    (e) If a member has contributed pension contributions for less than a year but his enrollment has been in effect for more than a year, only those wages upon which pension contributions were based can be used as salary to determine the value of the noncontributory insurance benefit, whereas the contributory insurance benefit will be based on the member's annual salary on which he last contributed.

    (f)(e) Where a post-audit of insurance claim payments indicates the pension contributions reported by an employer were incorrect and resulted in the overpayment of an insurance claim to a member's designated beneficiary or estate, the employer will be billed for the value of the overpayment of the insurance benefits. Where post-audits establish the insurance benefits were underpaid, an additional check would shall be sent to the beneficiary for the value of the underpayment.

    (g)(f) (No change in text.)

    (h)(g) Members who prove their insurability for the group life insurance benefits shall have their insurance benefit calculated on the basis of the basis of salary they received or salary upon which pension contributions were based during their last year (10 and 12 months) of service prior to death, regardless of their effective date of insurance coverage.

    (i)(h) In computing the salary upon which pension contributions were based during a member's last year of service, in the case of a 12-month State employee reported 12 months a year on a biweekly basis, a total of 26 biweekly pays will be used, including any retroactive salary payments made within the prescribed period.

    The total salary will be adjusted by multiplying the total by the factors supplied by the actuary; such adjustment will compensate for State biweekly payroll schedules.

    (j)(i) In computing (i) (h) above in the case of State employees reported on a 10-month basis, the total biweekly pays will include those pay periods in the third quarter of each year in which a member does not receive salary. The adjustment is specified in (i) (h) shall not be made.

    (k)(j) If a member was reported on a biweekly basis or any combination of 10 and 12-month contract years, the last year's salary prior to death,or retirement shall be determined on a proportional basis. The biweekly pay periods for which no contributions were made shall be counted as zero.

    17:2-3.3 Contributory insurance rate

    All participating members' contribution rate for contributory group insurance shall be fifty-five one-hundredths one-half of one percent (.0055) (.005) of the member's base or contractual salary, effective as of January 1, 1988 1999.

    17:2-3.5 Leave for illness; life insurance coverage

    (a)-Coverage Life insurance coverage during a leave of absence due to illness shall apply only to the personal illness of the member.

    (b) A leave of absence on account of another person's illness will not entitle the member to continued life insurance coverage.

    17:2-3.6 Survivor benefits

    (a) Payment of benefits to eligible survivors shall become effective on the first of the month of subsequent to the member's death and shall terminate as of on the first of the month subsequent to the date in which the survivor no longer qualifies for such benefits.

    In the instance of an active member who dies in the performance of duty (accidental death), the initial pension payment will be for the month following the month in which the member died, and the last payment will cover the month immediately preceding the month the survivor dies or ceases to qualify for the continuance of benefits.

    17:2-3.8 Withdrawal and return; contributory insurance

    Withdrawal from contributory insurance coverage shall apply only to the membership account under which the cancellation was exercised. Any person, who has canceled his contributory insurance coverage and withdraws from membership in the system, System shall, upon his or her subsequent re-enrollment in the system System, be subject to the provisions of N.J.A.C. 17:2-3.1.

    17:2-3.9 (Reserved) Retired life insurance coverage>

    If a member's date of PERS enrollment was on or after July 1, 1971, noncontributory life insurance shall be payable after the death of a retired member, only if the member established 10 or more years of pension membership credit at the time of retirement, or retired on a disability retirement. The life insurance shall equal 3/16 of the retiree's last 10 months of salary if formerly employed on a 10-month basis, or 12 months of salary if formerly employed on a 12-month basis. No premium payments are required to continue the 3/16 coverage after retirement. Contributory group life insurance coverage ceases at retirement.

    17:2-3.10 Contributory insurance premiums; leave of absence

    (a) Contributory insurance coverage will be in effect for up to two years while a member is on an official leave of absence for the personal illness of the member without premiums paid by the member.

    (b) Contributory insurance coverage will be in effect while a member is on an official leave of absence without pay for the following reasons, provided that insurance premiums are paid in advance by the member. It is the member's responsibility to make arrangements directly with the Division to continue these premium payments:

    1. To Up to one year to fulfill a residency requirement for an advanced degree; 2. As or as a full-time student at an institution of higher education; and

    3.2. Up to 93 days on an official leave for any other reason, provided insurance premiums were paid in advance of the date the leave was granted.

    17:2-3.12 Beneficiary designation; pension contributions

    (a) Only a primary and a contingent designation of beneficiary may be made by the member for the payment of such member's accumulated pension contributions.

    (b) Multiple members of a retirement system are required to file new beneficiary forms when the beneficiary nomination on the multiple enrollment forms do not agree.

    When a member establishes multiple status by becoming employed by one or more additional employers in an eligible position or positions and files an enrollment

    application, the beneficiaries designated on the most recently submitted enrollment application supersede any older designations of beneficiaries on file with the Division of Pensions and Benefits.

    (c) All beneficiaries must be specifically named. The designation "children," unless otherwise qualified by the member shall mean all individuals, including natural or adopted children, entitled to take from the member by the New Jersey laws of intestate succession, N.J.S.A. 3A:2A-1 3B:1-1 et seq., and excludes all persons who are only stepchildren, foster children, grandchildren or anymore any more remote descendants.

    17:2-3.13 Benefits payable under P.L. 1984, c.96 as amended by P.L. 1995, c.221

    (a) (No change.)

    (b) Where a beneficiary of a member requests that a retirement take effect and that a selection of an optional settlement be made as authorized under P.L. 1984, c.96, section 2, as amended by P.L. 1995, c.221, section 1 (N.J.S.A. 18A:66-47 43:15A-50), an additional amount of insurance, not to exceed the amount of insurance that could be converted under the group policies for noncontributory and contributory death benefits, shall be paid as claims under the group policies only if the member files an application for conversion of the insurance upon retirement as provided under N.J.S.A. 43:15A-93 and pays the initial premium for the converted insurance. The premiums paid for the converted insurance shall be retained by the carrier and be applied to the premiums payable by the State and the retirement system for benefits provided under the group policies.

     

    17:2-4.2 Leave with pay

    (a) (No change.)

    (b) If the leave with pay extends beyond six months, the member will be required to make contributions only if he the member is receiving 50 percent or more of his regular base salary.

    17:2-4.5 Approved leave (Reserved)

    When benefits are payable involving approved leaves of absence or when a purchase of credit is to be processed involving such leaves, a certified copy of the employer's resolution, or approved CS-21 form, granting such approved leave must be available in the file or must be confirmed before processing can be completed.

    17:2-4.6 Minimum adjustment

    In order to facilitate the reconciliation of a member's account, no rebates or additional contributions shall be made where an adjustment involves an amount of $3.00 or less $2.00 or less during a calendar quarter.

    17:2-4.8 Military leave prior to August 1, 1974; employer contributions

    (a) The following conditions apply to employer contributions for service during military leave prior to August 1, 1974:

    (a)1. (No change in text.)

    (b)2. Military leave contributions remitted by an employer shall be based on the employee's salary at the time he the member entered military service.

    (c)3. Payroll as referred to above shall be interpreted to mean any public payroll in New Jersey, not necessarily the payroll of the employer where the member was employed when he the member entered military service.

     

    17:2-4.9 Eligibility for loan

    Only active contributing members of the System may exercise the privilege of obtaining a loan and the maximum loan. The member's total outstanding loan balance shall be not exceed 50 per cent percent of the accumulated deductions posted to the member's account.

    17:2-4.10 Waiver required of retirement benefits upon withdrawal

    Any member, who makes application for withdrawal from the system System, who may otherwise be eligible to make application for a retirement benefit, shall be required to execute and file a statement with the System setting forth the benefits he the member is waiving in favor of withdrawal, before his the member's application for withdrawal may be processed. If a member is eligible to begin receiving a monthly retirement allowance (age 60 or more, or 25 years or more of credited service), the Division shall inform the member of the estimated amount of the retirement allowance and shall require the member to sign a waiver of such benefits, should the member still wish to withdraw.

    17:2-4.11 Termination; withdrawal

    (a) Under the terms of the statutes a member may withdraw from the system System only if he the member terminates all employment.

    (b) No application shall be approved, if:

    1. (No change.)

    2. The member certifies that his employment has not ended or that he the member has taken another position subject to coverage.

    3. The member has been dismissed or suspended from employment. In this event, such a member will be eligible to withdraw if he the member has formally resigned from his the position or there is no legal action contemplated or pending and the dismissal has been adjudged final.

    4.-5. (No change.)

    17:2-4.12 Deductions

    (a) A full pension and contributory insurance deduction shall be taken for the Public Employees' Retirement System in any payroll period (monthly or biweekly) in which the member is paid a sufficient amount to make a full normal deduction, plus any other arrears or loan deductions then in effect.

    (b) No deductions shall be taken, nor service credit given, in any pay period for employers who report on a biweekly basis or in any month, for employers who report on a monthly basis, in which the employee's salary is not sufficient to cover the required deductions for the Public Employees' Retirement System.

    17:2-4.13 Active employment; membership requirement

    All employees, otherwise eligible, who are not actively employed on the date of their enrollment will not be covered by the group life insurance program until the day they return to service.

    17:2-4.14 Continuance of membership; transfer

    Once an employee establishes membership in the retirement system, he the member is eligible to continue such membership should he the member be temporarily employed in a position covered by the system.

    17:2-4.15 Ineligible service

    (a) Members shall not be granted prior service or membership credit for the following employment:

    1. Honorary positions, without salary;

    2. Motor vehicle agents or as non-State employees of the agent; and

    3. Licensing agent of the Division of Fish, Game and Shellfisheries or as non-State employee of the agent.

    17:2-4.16 Creditable service; Law Enforcement Officers

    Two percent service credit for Law Enforcement Officer members is that service rendered in the capacity of a Law Enforcement Officer, for which the member has paid at the Law Enforcement Officer rate of contribution unless as otherwise provided by the statute.

    SUBCHAPTER 5. PURCHASES AND ELIGIBLE SERVICE

     

    17:2-5.3 Reestablishing military leave credit

    Any veteran Veterans who terminated membership before January 1, 1955, and whose withdrawal of contributions included contributions paid by his or her their employers during a period of military leave, shall receive veteran prior service credit for only the periods during which he or she they actually contributed. He or she They can receive additional membership credits for the periods of military leave if he or she redeposit they redeposits the amounts of employer contributions, plus regular interest to the date of his or her their authorizations of such purchases.

    17:2-5.4 Compulsory purchase contributions (back deductions)

    (a) An employee who was required to enroll and whose application was filed beyond his or her compulsory date of enrollment, will be required to purchase membership credit retroactive make retroactive contributions to the date of compulsory enrollment. Purchases Contributions will be calculated on the basis of the member's current salary at the full pension rate of contribution assigned as of his or her compulsory date of enrollment with regular interest.

    (b) Veterans, who were ineligible to establish membership in a local contributory pension fund and who elect to enroll in accordance with the provisions of Chapter 71, P.L. 1966, c.71, must agree, prior to their enrollment, to purchase all continuous public employment with the same employer since January 1, 1955, or the date of their regular appointment. The purchase of service will be calculated on the basis of their current salary multiplied by the actuarial factor established for the member's age at the time of purchases.

     

    17:2-5.7 Military leave (Reserved)

    Any active member purchasing credit for out-of-State public employment, may include in the maximum of 10 years credit to be purchased, his or her leave of absence for military service, provided he or she received credit for such leave in the State or local public retirement system, in which he or she was participating at the time he or she was in military service.

    17:2-5.8 Per diem credit

    For the purpose of granting prior service credit for service performed on a per diem, hourly, on-call, or as-needed basis, credit shall be prorated and granted on the basis of 20 10 days equal one month of credit.

    17:2-5.9 Ineligible service (Reserved)

    (a) Members will not be granted prior service or membership credit for the following employment:

    1. Honorary positions, without salary;

    2. Leaves of absence without pay, except military leave;

    3. Motor Vehicle Agents or as employees of the agent;

    4. Licensing Agent of the Division of Fish, Game and Shellfisheries or as employees of the agent.

    17:2-5.10 Creditable service; law enforcement officers (Reserved)

    Two percent service credit for Law Enforcement Officer members is that service rendered in the capacity of a Law Enforcement Officer, for which the member has paid at the Law Enforcement Officer rate of contribution unless as otherwise provided by the statute.

    17:2-5.12 Correction of errors

    Credit for all previous service established under the provisions of Chapter 104, P.L. 1974, c.104, and payment therefor, shall be calculated on the basis of salaries received during the period of such service with applicable regular interest. The pension rate of contribution will be determined as of the member's compulsory date of enrollment. The members shall pay on the basis of his or her current salary at the full pension rate of contribution with regular interest.

    17:2-5.13 Lump-sum purchases

    If a purchase is paid in a lump sum, the member shall receive full credit for the amount of service covered by the purchase upon receipt of the lump-sum payment. The service may be used for any purpose for which it is authorized under the Public Employees' Retirement System Act (N.J.S.A. 43:15A-1 et seq.) and the rules of the retirement system Retirement System.

    SUBCHAPTER 6. RETIREMENT

    17:2-6.1 Applications

    (a) Applications for retirement must be made on forms prescribed required by the system System. Such forms must be completed in all respects and filed with the system Division of Pensions and Benefits (the Division) on or before the requested date of retirement. A member's retirement application becomes effective on the first of the month following receipt of the application unless a future date is otherwise requested. Members enrolled at multiple PERS locations must retire from employment in all covered positions before a retirement shall become effective.

    (b) In the event a member files an incomplete application, the deficiencies shall be brought to his or her the member's attention and he will or she the member shall be required to file a completed application with the system Division to enable acceptance for processing.

    (c) Before an application for retirement may be accepted for processing it must be supported by a certificate processed, the Division must receive proof of the member's age, if none is already in the member's record, proof of the beneficiary's age, if the member elected Option 2, 3 or 4, and a completed Certification of Service and Final Salary form from the employer setting forth the employment termination date, and the salaries reported for contributions in the member's final years of employment and proof of age, if none is already in the member's record.

    (d) In addition to the foregoing retirements, an application for disability retirement must be supported by a report of the at least two reports, one by the member's personal or attending physician and a statement from the employer regarding the member's incapacity for further duty the other may be either hospital records supporting the disability or a report from a second physician.

    17:2-6.2 Effective date

    A member's retirement allowance shall not become due and payable until 30 days after the date the Board approved the application for retirement or 30 days after the date of the retirement, whichever is later.

    17:2-6.26.3 Effective dates; change

    (a) A member shall have the right to withdraw, cancel or change an application for retirement at any time before his the member's retirement allowance becomes due and payable; thereafter by sending a written request signed by the member. Thereafter the retirement shall stand as approved by the board

    Board.

    (b) Except in the event of deferred retirement, if a member requests a change in his retirement application of retirement date or option selection before his the member's retirement allowance becomes due and payable, said change will require approval of the board Board and the revised retirement allowance shallnot become due and payable until 30 days have elapsed following the effective date or the date the board Board met and approved the change in the member's retirement application, whichever is later.

    (c) If the applicant should die within 30 days following the date the Board of Trustees approved the revised application, the member shall be considered to be retired on the basis of the originally approved application for retirement, provided that the initial 30-day requirement was satisfied.

    (d)(c) A deferred retirement shall become effective on the first of the month following the member's 60th birthday. At the election of a member, if the member's 60th birthday falls on the first of a month, the retirement shall become effective on that date, provided the member files a timely retirement application pursuant to N.J.S.A. 43:15A-38(b) and requests that date as the retirement date.

    (e)(d) In the case of deferred retirement, if an applicant desires to amend his the retirement application, the amended application must be filed with the system Division a minimum of one month prior to his the effective date of retirement.

    (f)(e) (No change in text.)

    17:2-6.3 Effective date; death prior thereto

    (a) A member's retirement allowance shall not become due and payable until 30 days after the date the board approved the application for retirement or 30 days after the date of retirement, whichever is later.

    (b) A member who files an application for retirement and whose insurance coverage has not lapsed prior to filing the retirement application is covered under the insurance program as an active member in the event of death prior to the date the retirement allowance becomes due and payable.

    17:2-6.6 Retirement credit

    (a) (No change.)

    (b member who appeals the suspension or termination of his or her the member's employment and is awarded back pay for all or a portion of his or her that employment for the period of such suspension or termination shall receive retirement credit for the period covered by the award, regardless of the amount of the back pay awarded, provided a full normal pension contribution is received from the member or deducted from the value of the award. The amount of the pension contribution will be determined by the provisions of the award. If the member receives full back pay, including normal salary increases, then the contribution will be computed on the base salaries that the employee would have earned for the reinstated suspended or terminated period. When the settlement is less than the full back pay, the pension contribution will be based upon the salary that the member was receiving for pension purposes prior to the suspension or termination of employment. In the event that the amount of back payment is insufficient to deduct the value of the normal pension contributions due, such contribution shall be paid by the member.

    (c) (No change.)

    17:2-6.7 Disability determination

    1. A member for whom an application for accidental disability retirement allowance has been filed by the member, by his employer, or by one acting in behalf of the member, will be retired on an ordinary disability retirement allowance if the board Board finds that:

    1. The member was under the age of 60 The applicant was considered a member at the time of filing the application for a disability retirement allowance or is covered by the provisions of N.J.A.C. 17:2-6.15; and

    2. (No change.)

    3. The member is not eligible for accidental disability since the incapacity is not a direct result of a traumatic event occurring during and as a result of the performance of his the member's regular or assigned duties; and

    4. (No change.)

    17:2-6.8 Option selection

    If an applicant for an accidental disability retirement benefit is rejected for an accidental disability benefit but is approved by the board Board for retirement, in accordance with N.J.A.C. 17:2- 6.7, he the applicant will be permitted within 30 days following board Board approval of his the retirement, to amend the option selection which he the applicant made on the original accidental disability retirement application.

    17:2-6.9 Employer and employee notices

    If an applicant for accidental disability retirement is found to be physically or mentally incapacitated for the performance of duty but is rejected for accidental disability retirement because the board Board finds that the disability was not a direct result of a traumatic event occurring during and as a result of the performance of his the applicant's regular or assigned duties and, if the applicant does not meet the minimum statutory requirements for any other type of retirement allowance, the system System will notify both the member and his the member's employer that the member was found to be physically or mentally incapacitated for the continued performance of duty, as was previously certified to the system by both the employee and his employer System. Both the employer and the employee will also be advised that a copy of such notice will be placed in the member's file and will be given full consideration in any future claim for disability retirement benefits.

    17:2-6.10 Employer application; employee notice Involuntary disability application

  • If an application for an accidental disability retirement benefit or for an ordinary disability retirement benefit is filed by an employer for one of his their employees, the member will be promptly notified by letter that:

  • 1. His The member's employer has properly initiated a disability application signed by the Certifying Officer or other designated officer of the employer, on the member's behalf; and

    2. His employer has certified that the member is permanently and totally disabled for the continued performance of duty; and, if appropriate,

    3. His employer has certified that the member should be retired as a direct result of a traumatic event occurring during and as a result of the performance of his regular or assigned duties; and

    2. The member's employer has submitted a written statement as to the grounds for the employer's request for member's involuntary disability retirement and all available medical documentation;

    4. He 3. The member has a period of 30 days to contest his or her involuntary retirement before the

    board Board acts on his the employer's application;

    5. He 4. The member will be required to appear for an examination before a physician designated to conduct such an examination for the retirement system; and

    6.5. In the event the board Board finds that he the member is totally and permanently incapacitated for the performance of duty, he the member shall be granted the maximum retirement allowance, (without option) payable under the statute, if he (the member) does not file a completed "Application for Disability Retirement Allowance" setting forth the type of allowance he the member desires, before his the retirement goes into effect; and

    7.6. In the event the board Board finds that he the member is not totally and permanently incapacitated for the performance of duty, the employer's application shall be disallowed and the employer shall be informed that the member should be returned to duty.

    17:2-6.11 Early retirement benefits; reduction

    (a) The statutory reduction of one quarter of one percent applies to each month prior to the month in which the member attains age 55 and for the month in which the member attains age 55 if his 55th birthday occurs on or after the 15th day of the month. Retirement with 25 or more years of credited service before the first of the month in which a member attains age 60 shall be classified as "early" retirement.

    (b) Retirement on the first of the month in which a member attains age 55 shall be classed as "early" retirement, although a reduction is not applied if his 55th birthday occurs before the middle of such month. The statutory reduction of one quarter of one percent applies to each month prior to the month in which the member attains age 55 and for the month in which the member attains age 55 if the member's 55th birthday occurs after the 15th day of the month.

    17:2-6.12 Service retirement; eligibility

    A member becomes eligible for "Service" retirement on the 1st of the month following his the member's 60th birthday. At the election of a member, if the member's 60th birthday falls on the first of a month, the retirement shall become effective on that date, provided the member files a timely retirement application pursuant to N.J.S.A. 43:15A-47a, and requests that date.

    17:2-6.13 Disability retirant; annual medical examinations

    (a) All disability retirants may be required to undergo a medical examination each year for at least five years or for good cause thereafter by a physician designated by the System as of the anniversary date of their retirement, unless such examination requirement has been waived by the Board. Good cause means the receipt by the Board of creditable information that a member who is receiving a disability retirement allowance is no longer disabled.

    (b) Failure on the part of a retirant to submit to the required medical examination shall result in the automatic suspension of his the retirant's retirement allowance until he the retirant submits to a medical examination.

    17:2-6.14 Disability retirant; annual report (employment, earnings, test and adjustment)

    (a) (No change.)

  • If a retirant reports employment and earnings, then the following tests shall be made by the System to ascertain:

  • 1.-2. (No change.)

    3. If it is found, on or after April 30, that gross earned income for the calendar year exceeded the difference between the pension and the salary of the retirant's former position and if the retirant does not refund the excess pension to the

    System within 30 days of notification of the difference, the pension for the succeeding 12-month period shall be reduced by the excess pension received in the preceding calendar year portion of the retirement allowance shall be reduced, dollar for dollar, by the excess earnings. The Board of Trustees shall determine the length of time that the retirant's pension allowance will be reduced.

    17:2-6.16 Compulsory retirement; law enforcement officers Law Enforcement Officers (LEO)

    (a) Members classified as "law enforcement officers" "Law Enforcement Officers" shall be retired automatically by the board Board as of the compulsory retirement date established pursuant to N.J.S.A. 43:15A-99.

    (b) Should a member classified as law enforcement officer a Law Enforcement Officer fail to file an application with the system Division before his the member's compulsory retirement date, he the member shall be granted the maximum allowance payable on his the member's account; however, no retirement checks will be disbursed until he the member files the required application.

    (c) If an application is not filed with the system Division before a period of 30 days has elapsed after the board Board has acted on his the member's retirement, he the member shall not be eligible to exercise any of the available retirement survivorship options and his the member's retirement on maximum allowance shall stand as approved.

    (d) When such a member files his an application with the system Division, he the member shall be eligible to receive retirement benefits for the months that have elapsed since the date of his the member's compulsory retirement, provided satisfactory evidence is received to show that he the member terminated employment as of his the member's compulsory retirement date.

    (e) No retirement benefits shall be paid for any period the member continued in service beyond his the compulsory retirement date, nor shall he the member receive any credit for retirement purposes for salary received or service rendered beyond his the compulsory retirement date.

    (f) An LEO member who is also enrolled as a non-LEO member cannot continue his the LEO membership or employment in his the LEO capacity beyond age 65 should he the member continue his or her membership on the basis of his the member's non-LEO position pursuant to N.J.S.A. 43:15A-99.

    17:2-6.18 Option "1" benefit

    The reserve established under the provisions of Option "1" shall be a form of reducing term insurance, as the reserve shall reduce in value by the amount of the retirant's regular monthly allowance, whether received or not, for each month that he the retirant survives after the effective date of his retirement.

    17:2-6.19 Maximum allowance prescribed (Reserved)

    Where someone, other than a legal guardian, acting in behalf of a member makes application for a retirement allowance, such individual may not elect other than the maximum allowance for the member and the member's estate must be designated as the beneficiary for all death benefits payable on the member's account.

    17:2-6.20 Final compensation; 10-and 12-month members reported monthly

  • In order to determine the final compensation (three-year average) for benefits on a
  • :1. Member member reported on a monthly basis under a ten 10-month contract, use the creditable salaries upon which contributions were made to the system System for his the member's final 30 months, or the highest three fiscal years of pensionable service, including any retroactive salary payments that are attributable to the covered period and paid as part of a salary agreement with a group of employees.
  • 2. Member (b) In order to determine the final compensation (three-year average) for benefits on a member reported on a monthly basis under a 12-month contract, use the creditable salaries upon which contributions were made to the system for his the member's last 36 months or the highest three fiscal years of pensionable service, including any retroactive salary payments that are attributable to the covered period and paid as part of a salary agreement with a group of employees.

    (b)(c) (No change in text.)

    (c) The months for which no contributions were made shall be counted as zero.

    17:2-6.21 Determination of last year's salary; veterans paid on a monthly basis (veteran one-half pay retirement)

    For

    (a) In order to determine the last year's salary for a member veteran with 35 or more years of creditable service, age 60 or older, reported on a monthly basis under a ten 10-month contract, use the creditable salaries upon which contributions were made in the member's final 10 months of pensionable service preceding retirement, including any retroactive salary payments that are attributable to the covered period and paid as part of a salary agreement with a group of employees.

    (b) In order to determine the last year's salary for a veteran with 35 or more years of creditable service, age 60 or older, reported on a monthly basis under a 12-month contract basis, his use the member's creditable salaries upon which contributions were made in the member's final 12 months of pensionable service preceding retirement; combination of 10-and 12-month contracts, on a proportional basis. The months for which no contributions were made shall be counted as zero., including any retroactive salary payments that are attributable to the covered period and paid as part of a salary agreement with a group of employees.

    (c) In order to determine the last year's salary for a veteran with 20 or more years of creditable service, age 62 or older, reported on a monthly basis under a 10-month contract, use the creditable salaries upon which contributions were made in the member's final 10 months of pensionable service preceding retirement or in the consecutive 10-month period in which the member achieved the greatest earnings, including any retroactive salary payments that are attributable to the covered period and paid as part of a salary agreement with a group of employees.

    (d) In order to determine the last year's salary for a veteran with 20 or more years of creditable service, age 62 or older, reported on a monthly basis under a 12-month contract, use the member's creditable salaries upon which contributions were made in the member's final 12 months of pensionable service preceding retirement, or in the

    consecutive 12-month period in which the member achieved the greatest earnings, including any retroactive salary payments that are attributable to the covered period and paid as part of a salary agreement with a group of employees.

    (e) If a member was reported on any combination of 10-and 12-month contract years in such months, the last year's salary shall be determined on a proportional basis.

    17:2-6.22 Waiver

    (a) (No change.)

    (b) Such person retired members or beneficiaries may cancel the waiver effective as of the first day of any month subsequent to the receipt of the notice of cancellation; however, he they may not make a claim for retroactive payment of any benefits waived prior thereto.

     

    17:2-6.23 Additional contributions (Reserved)

    The additional contributions made under N.J.S.A. 43:14-17 as elected by the member, shall be credited for the purpose of retirement, with interest in the same manner as employed in the calculation of the regular retirement allowance.

    17:2-6.24 Final compensation; biweekly salary computation for State employees reported by centralized payroll on a biweekly basis

    (a) In computing "final compensation" upon which pension contributions were based, in the case of a 12-month State employee reported on a biweekly basis, a total of 78 biweekly pays pensionable pay periods will be used, including any retroactive salary payments that are attributable to the prescribed covered

    period.

    (b) In computing (a) above, the total salary will be adjusted by the factors supplied by the actuary to convert biweekly salaries to compensate for State biweekly payroll schedules. Application of the factors to the salaries reported for pension purposes will develop "final compensation."

    (c) In computing (a) above in the case of State employees reported on a 10-month basis, the total biweekly pays pay periods will include those pay periods in the third quarter of each year in which the member does not receive a salary. The adjustment as specified in (b) above shall not be made.

    (d) If a member was reported on a biweekly basis on any combination of 10-and 12-month contract years, the final average compensation prior to retirement shall be determined on a proportional basis. The biweekly pay periods for which no contributions were made shall be counted as zero.

    17:2-6.25 Determination of last year's salary; State employee veterans reported by centralized payroll on a biweekly basis

    (a) In computing the salary upon which pension contributions were based during a member's last year of service, in the case of a 12-month State employee In order to determine the last year's salary for a veteran with 35 or more years of creditable service, age 60 or older reported on a biweekly basis under a 12-month contract, use a total of 26 biweekly pays will be used pay periods including any across the board retroactive salary payments made within the prescribed covered period. The total salary will be adjusted by factors supplied by the actuary to compensate for State biweekly payroll schedules.

    (b) In computing (a) above, in the case of State employees In order to determine the last year's salary for a veteran with 35 or more years of creditable service, age 60 or older, reported on a biweekly basis under a 10-month basis contract, include in the total 26 biweekly pays will include pay periods those pay periods in the third quarter of each year in which the member does not receive salary, including any retroactive salary payments that are attributable to the covered period and paid as part of a salary agreement with a group of employees. The adjustment as specified in (a)1 above shall not be made.

    (c) In order to determine the last year's salary for a veteran with 20 or more years of creditable service, age 62 or older, reported on a biweekly basis under a 12-month contract, use the member's creditable salaries upon which contributions were made in the member's final 26 biweekly pay periods of pensionable service preceding retirement, or in the 26 consecutive pay periods in which the member achieved the greatest earnings, including any retroactive salary payments that are attributable to the covered period and paid as part of a salary agreement with a group of employees. The total salary will be adjusted by factors supplied by the actuary to compensate for biweekly payroll schedules.

    (d) In order to determine the last year's salary for a veteran with 20 or more years of creditable service, age 62 or older, reported on a biweekly basis under a 10-month contract, the total 26 biweekly pay periods will include those pay periods in the third quarter of each year in which the member does not receive salary, including any retroactive salary payments that are attributable to the covered period and paid as part of a salary agreement with a group of employees. The adjustment as specified in (a)1 above shall not be made.

    (c)(e) If a member was reported on a biweekly basis on any combination of 10-and 12-month contract years, the last year's salary prior to death or retirement shall be determined on a proportional basis. The biweekly pay periods for which no contributions were made shall be counted as zero.

    17:2-6.26 Medical examination; physician

    Where the statute prescribes that a N.J.S.A. 43:15A-42.43 and 44 require the Retirement System or the Board to designate physicians be designated by the retirement system to perform a medical examinations; such physician shall be selected from the current membership directory of the Medical

    Society of New Jersey and the New Jersey Association of Osteopathic Physicians and Surgeons; however,. A designated physician shall not be a member's personal physician, except in the cases of those a members whose personal physician has identified them the member as having a probable abbreviated life expectancy, such (referred to as an "imminent death" cases may be processed without the necessity of an examination by a physician designated by the Fund), if corroborating medical evidence of the diagnosis can be obtained.

    17:2-6.27 Work-related travel; accidental disability retirement and accidental death benefit coverage

    (a) A member whose duties include regular or occasional travel in the course of employment will be considered in the "performance of his the member's regular or assigned duties" for the purposes of accidental disability retirement or "in the actual performance of duty" for the purposes of accidental death benefits during employment-related travel as provided in this section. For the purposes of this section, "in performance of duty" means and includes both "performance of regular or assigned duties" and "in the actual performance of duty."

    (b) (No change.)

  • If a member's duties require or authorize the member to travel between his or her the member's place of residence and a location other than an office or workplace of the employer to which the member is regularly assigned or near to the regularly assigned office or workplace to perform the duties of the employment, the member is in performance of duty when he or she the member completely leaves the property of he or she the member's residence and begins to travel to the other location, or until he or she the member begins entry to the property of residence after travel from the other location, and all expenses of the travel are paid for by the employer. A member's duties are considered to authorize or require travel from the place of residence to a location other than a regularly assigned office or workplace of the employer in the following situations:

  • 1. The member's regular or assigned duties involve field work which requires or authorizes the member to travel to locations other than a regularly assigned office or workplace of the employer to perform his or her duties and do not require the member to report to a regularly assigned office or workplace before or after traveling to other locations.

    Travel by the member between a regularly assigned office or workplace of the employer and the place of residence of the member is not considered part of the member's dues duties.

    2. (No change.)

    3. The member is authorized or required by his or her the member's employer to respond to an emergency situation outside of the member's regularly scheduled work hours, regardless of whether the member goes to a regularly assigned office or workplace or another location, or whether the expenses of the travel are paid for by the employer or the member.

    4. (No change.)

    (d) (No change.)

    SUBCHAPTER 7. TRANSFERS

    17:2-7.1 Honorable service; interfund transfers; State-administered retirement systems

    (a) The receipt of a public pension or retirement benefit is expressly conditioned upon the rendering of honorable service by a public officer or employee. Therefore, the Board of Trustees of the present System shall disallow the transfer of all or a portion of prior service of any member of the System for misconduct occurring during the member's prior public service which renders that prior service, or part thereof, dishonorable.

    (a)(b) The system will transfer membership to any State- administered retirement system Retirement System as follows:

    1. A member, desiring to transfer his or her service credit and contributions credits to any from one State- administered retirement system must, to another shall file an application for "Transfer of Membership Credit" "Application for Interfund Transfer" and an "Enrollment Application" in place of the customary of application for withdrawal of accumulated contributions "Application for Withdrawal." This application will void all possible claims against the present system when approved and the new membership is commenced in the new system.

    2. A check covering the The member's accumulated contributions, full interest included, less any outstanding loan, shall be drawn payable transferred to the new system for the account of the respective member. Any outstanding loan, back deductions or arrears obligation will be scheduled for repayment.

    3. A statement reflecting the member's status as of the date of transfer shall accompany the check be prepared by the Withdrawal Section of the Division and a copy forwarded to the old account.

    4. The member shall enjoy the same rate of contribution and member's service credits established in the present system, subject to the provisions of shall be transferred into the new system.

    5. This procedure would not apply where a member has credit in the present system for service after the date of enrollment in the new system or where a person has ceased to be a member of the present system before establishing sufficient service credit to be eligible for a deferred retirement. The member is not eligible to transfer service credit if any of the following conditions apply:

    i. The member has withdrawn the previous membership;

    ii. The member has credit in the present system for service earned after the date of enrollment in the new system (concurrent service); or

    iii. The account has expired; that is, it has been more than two years from the date of the last contribution and there was not enough service credit to be eligible for a deferred retirement.

    6. A copy of the transfer application, together with a check covering the withdrawal value and a statement of the service credits being transferred, is to be forwarded to the new system.

    A data sheet shall be created for the member's new account that will indicate an interfund transfer from the member's previous retirement system and the

    service credit transferred into the new membership account.

    (b)(c) The reserves accrued in the present system will be valued and compared to the reserves required in the new system will cause to be valued the reserves accrued for such employee as compared to the reserves required in the second system.

    1.-2. (No change.)

    (c)(d) (No change in text.)

    (d) A member who makes a timely transfer in accordance with N.J.S.A. 43:2-1 et seq. will contribute to the new system at a rate based on his or her age at the time of enrollment in the present system and no refund of pension contributions will be made except for those contributions made by veterans covering service prior to January 1, 1955, where applicable. The contribution rate for a member granted a deferred retirement in the present system who makes a timely transfer at the time of enrollment in the new system will be determined in accordance with the rules concerning enrollment after deferred retirement in the new system. A member who does not make a timely transfer will contribute to the new system at a rate based on his or her age at the time of enrollment in the new system.

    17:2-7.2 (Reserved) Intrafund transfers; State-administered Retirement Systems

    (a) Members who leave one public employer and take a position with another public employer covered by the same pension system are immediately eligible to transfer their membership to their new employers, as long as the following conditions are met:

    1. The member has not withdrawn their contributions;

    2. The account has not expired; that is, it has not been more than two years between the date of the last contribution received from the old employer and the starting date of contributions with the new employer or there was enough service credit to be eligible for a deferred retirement; and

    3. The account has not been canceled due to Board of Trustees action. It is the responsibility of the employer to establish the employee's status. For accounts that are withdrawn, expired or canceled, an enrollment application is needed, and the standard enrollment rules are again in effect;

    (b) To transfer the member's account to the new employer, the new employer should file a Report of Transfer with the Division of Pensions and Benefits within 10 working days of the date employment begins. If more than one year elapses between the date that the member was required to contribute to the retirement system and the date contributions were first certified, the employer shall be assessed a late enrollment employer liability penalty plus delayed appropriation costs. 31 N.J.R. 3229(a)


31 N.J. Reg. 3524(b)

 

STATE HEALTH BENEFITS PROGRAM

ELIGIBILITY FOR STATE PAYMENT OF RETIREE COVERAGE UNDER P.L. 1997, C.330

Additions to proposals are indicated by Text ; deletions from proposals are indicated by Text . Changes in tables are made but not highlighted.

Adopted New Rule: N.J.A.C. 17:9-6.9
Proposed: August 16, 1999 at 31 N.J.R. 2300(b).
Adopted: September 30, 1999 by the State Health Benefits Commission, Margaret M. McMahon, Secretary.
Filed: October 4, 1999 as R.1999 d.373, with substantive changes not requiring additional public notice and comment (see N.J.A.C. 1:30-4.3).
Authority: N.J.S.A. 52:14-17.27.
Effective Date: November 1, 1999.
Expiration Date: July 13, 2003.

Summary of Public Comments and Agency Responses:

COMMENT: Paul Kleinbaum, Esquire, of Zazzali, Zazzali, Fagella and Nowak commenting on behalf of the New Jersey

State PBA expressed support of the proposed new rule. The commenter noted that the New Jersey State PBA fully supports adoption of the rule "in order to ensure that all law enforcement officers who retire without health insurance benefits are covered by Chapter 330."

RESPONSE: The Division of Pensions and Benefits thanks the commenter for his support of the proposed rule.

Summary of Agency Initiated Change:

The State Health Benefits Commission has determined that the effective date of P.L. 1997, c.330 is July 1, 1998 and not June 1, 1998 as stated in this proposed rule. The original legislation stated an effective date six months after the passage of the law, which was in January of 1998, and the Commission has been using the July date in all of its correspondence and application of this statute. Therefore, the Commission is amending the proposed rule to reflect this effective date. Because this change does not negatively impact any participant, the Division asserts that this addition is appropriate at adoption.

Federal Standards Statement

A Federal standards analysis is not required because N.J.S.A. 52:14-17.27 governs the subject of this rulemaking, and there is no Federal requirement or standard that affects the subject of this rule.

Full text of the adoption follows:

17:9-6.9 Eligibility for State payment of retiree coverage under P.L. 1997, c.330

  1. For the purposes of this section, "qualified retiree" means a person who:

    1. Is a retiree from:

    i. The Police and Firemen's Retirement System of New Jersey (N.J.S.A. 43:16A-1 et seq.), hereinafter referred to as PFRS;


    ii. The Consolidated Police and Firemen's Pensions Fund (N.J.S.A. 43:16-1 et seq.), hereinafter referred to as CPFPF; or


    iii. The Public Employees' Retirement System of New Jersey (N.J.S.A. 43:15A-6 et seq.), hereinafter referred to as PERS, from a position included in the definition of "law enforcement officer" under section 1 of P.L. 1955, c.257 (N.J.S.A.

    43:15A-97) or a position eligible for participation in PFRS as provided in section 9 of P.L. 1989, c.204 (N.J.S.A.

    43:16A-1.2);

    2. Retired on a benefit based on 25 or more years of service credit or on disability retirement under PFRS, CPFPF, or PERS;

    3. Was eligible to receive health benefits coverage at the expense of the employer immediately preceding retirement; and

    4. Is not eligible for employer payment of health benefits coverage after retirement, regardless of whether the employer pays for health benefits coverage for other retirees.

    (b) Pursuant to P.L. 1997, c.330 (N.J.S.A. 52:14-17.32i et seq.), a qualified retiree and his or her eligible dependents, as defined in section 2 of P.L. 1961, c.49 (N.J.S.A. 52:14-17.26), but not survivors, are eligible to participate in the State

    Health Benefits Program (SHBP) in accordance with the laws and rules governing the program, regardless of whether the retiree's employer participated in the program, and for State payment of an amount of the premium or periodic charges for the category of coverage elected by the qualified retiree equal to 80 percent of the premium or periodic charges for that category of coverage under the State managed care plan or health maintenance organization which provides services in the 21 counties of the State and the lower premium or periodic charges.

    The following persons are not eligible for benefits under N.J.S.A. 52:14-17.32i et seq.

    1. A retired State employee whose premium or periodic charges for health benefits under the State Health Benefits

    Program are paid by the State pursuant to section 8 of P.L. 1961, c.49 (N.J.S.A. 52:14-17.32) or section 6 of P.L. 1996, c.8 (N.J.S.A. 52:14-17.28b);

    2. A retiree of an employer other than the State for whom the employer pays premium or periodic charges for health benefits under the SHBP as authorized by section 7 of P.L. 1964, c.125 (N.J.S.A. 52:14-17.38) and pursuant to a collective negotiations agreement, ordinance, or resolution on June July 1, 1998;

    3. A retiree of an employer other than the State for whom the employer pays premium or periodic charges for health benefits as authorized by N.J.S.A. 40A:10-23 and pursuant to a collective negotiations agreement, ordinance, or resolution, for the life of the retiree, on June July 1, 1998;

    4. A retiree of an employer other than the State for whom the employer pays premium or periodic charges for health benefits as authorized by N.J.S.A. 40A:10-23, and pursuant to a collective negotiations agreement, ordinance, or resolution, for a period of time less than the life of the retiree while the employer is paying the amount of the premium or periodic charges, on June July 1, 1998;

    5. A retiree otherwise eligible for State payment of health benefits under the SHBP pursuant to N.J.S.A. 52:14-17.32i et seq. who is receiving health benefits coverage from an employer in connection with employment after retirement while the retiree is receiving the coverage; and

    6. A retiree of an employer other than the State who would have been ineligible for State payment for health benefits under the SHBP pursuant to N.J.S.A. 52:14-17.32i et seq. because of employer payment for health benefits coverage after retirement for the collective negotiations unit, the employment classification or the category, of which the retiree was a member, under a negotiated agreement, ordinance, or resolution on June July 1, 1998, and who otherwise meets the eligibility requirements for the benefit as a result of a change in the negotiated agreement, ordinance, or resolution after June July 1, 1998.

    (d) A qualified retiree who is ineligible for benefits under N.J.S.A. 52:14-17.32i et seq. because of employer payment for retiree coverage under (c)4 above or receipt of health benefits coverage in connection with employment after retirement under (c)5 above shall be eligible for the benefits after termination of employer payment for retiree coverage or employer coverage if the retiree applies to the SHBP for the benefits within 60 days after the effective date of termination of employer payment or coverage. 31 N.J.R. 3524(b)

spacer
bottom navigation graphic


pensions and benefits: home | shbp home | forms and publications | seminars | employer manual | pensions and benefits search

treasury: home | services | people | businesses | divisions | forms | online | treasury search

statewide: njhome | my new jersey | people | business | government | departments | search


Copyright State of New Jersey, 1996-2003
Division of Pensions and Benefits
PO Box 295
Trenton, NJ 08625-0295

All Technical issues regarding this Web site should be sent to the Division of Pensions and Benefits Webmaster.

Last Updated: March 27, 2003