September 6, 2002
TO: State
Department Benefits Administrators
College and University Benefits Administrators
FROM: William
H. Kale
Assistant Director, Client Services
SUBJECT: New Employee
Long Term Care Insurance Orientation
As you are aware, the
special enrollment period for the State of New Jersey Long Term
Care Insurance Plan (Plan) closed on June 14th. There was a high
level of interest from employees and retirees with approximately
6,000 telephone calls, 1,300 e-mails, 17,000 web page hits, and
4,500 mail inquiries. Prudential mailed over 22,000 enrollment
kits and received about 3,500 enrollment applications. Applications
have been processed and payroll deductions have started for those
employees who were enrolled. Prudential has sent the certificates
of coverage to the individuals who have been approved for coverage.
Your involvement in
the marketing of the Plan, through the scheduling of educational
seminars, distribution of literature, and referral of employees
with questions to the experts at Prudential, was instrumental
in the initial success we experienced. We thank you for your support.
Now that the special
open enrollment is behind us, we need to focus our efforts on
establishing procedures to ensure that all newly hired employees
are provided the opportunity to enroll in the State of New Jersey
Long Term Care Insurance Plan. Every newly hired full-time employee
has 90-days from the date of hire in which to apply for coverage
using the short-form application, that is, without having to provide
detailed evidence of insurability. In your benefits orientation
for new hires, you should
- Advise them of the existence
of the State of New Jersey Long Term Care Insurance Plan;
- Provide a copy of the brochure
(attached) that discusses long term care in general terms
(Prudential will be mailing a supply of these brochures to
each employer location, within the next few weeks;
- Tell employees that they can
obtain more information on the Plan from the Division of Pensions
and Benefits Long Term Care Web Site (Click on the Long
Term Care link at www.state.nj.us/treasury/pensions) or
by calling Prudential Insurance Company's Long Term Care Customer
Service Center at 800-732-0416;
- Emphasize to those newly hired
employees that they have
90 days in which to enroll without having to provide detailed
evidence of insurability;
- Inform the employees that all
of their family members are eligible to apply for coverage;
and
- Encourage employees to send
in the business reply card that is attached to the back cover
of the brochure to request an enrollment kit. This will result
in their receiving detailed plan information and costs as
well as the National Association of Insurance Commissioners'
publication, A Shopper's Guide to Long Term Care Insurance.
Although the open enrollment
is over, eligible employees can always apply for coverage at any
time. Fulltime employees, who did not apply for the coverage during
the open enrollment or during their first 90-days of employment
with the State, and their eligible family members may apply for
coverage at any time by completing a long-form application. This
application requires the review and approval by Prudential's underwriting
department before coverage can take effect. All part-time, seasonal,
intermittent and per diem employees and their family members may
also apply for coverage at any time.
If you have any questions
about this program, contact Larry Lenahan from the Division of
Pensions and Benefits at (609) 292-3648 or e-mail him at Larry.Lenahan@treas.state.nj.us.
attachment
August 21, 2002
TO: State
Health Benefits Program Participating Local Employers
State Health Benefits Program
Participating Local Education Employers
FROM: Florence
J. Sheppard
Assistant Director for
Health Benefits
SUBJECT: SHBP
Open Enrollment 2002
The State Health Benefits
Program (SHBP) Open Enrollment period for local government and
local Board of Education employees will begin on October 1,
2002 and end on October 31, 2002. Completed employer certified
health benefit applications should be forwarded to the Health
Benefits Bureau as soon as they are received from employees. (The
last day that certified applications must arrive at the Health
Benefits Bureau to be effective for the start of the new plan
year is November 8, 2002.) All changes to coverage made during
this open enrollment will be effective January 1, 2003.
OPEN ENROLLMENT SUPPORT
The State Health Benefits
Commission is in the process of reviewing consultant recommendations
and rates for the new plan year. Once this information is available
in mid-September, the SHBP will be preparing materials that explain
any changes made, if any are made, to both you and your employees.
This mailing includes a milestone chart that lists key Open Enrollment
events and dates, and the projected delivery schedule for Open
Enrollment publications.
PRINT MATERIALS
In September, benefits
administrators will receive the SHBP's Open Enrollment Announcement
letter along with a preview issue of the Health Capsule
newsletter and an updated list of medical plans and their costs.
The Health Capsule
is written to announce the SHBP Open Enrollment period to employees
and to present important information and changes that may affect
their benefit selection. All participating local and education
employers will receive a supply of newsletters for distribution
to their employees for the Open Enrollment period.
Benefits administrators
will also receive copies of the SHBP Plan Comparison Summary
chart, and Summary Program Description booklet for
distribution to their employees. These publications will be revised
for the Open Enrollment and provide an overview of the SHBP, a
description of each plan offered, and plan by plan comparisons
of selected benefits to help employees make an informed health
plan choice.
Revisions are also being
made to the Employee Prescription Drug Plan Member Handbook
with distribution for the Open Enrollment period to those employers
that participate in the plan.
ONLINE INFORMATION
In addition to our printed
materials, Web-based presentations on the SHBP Open Enrollment
will be available for both employers and employees 24 hours a
day, seven days a week. These will be available for viewing during
the Open Enrollment period. Once Open Enrollment begins you will
find the link on the SHBP homepage at: www.state.nj.us/treasury/pensions/shbp.htm
Participating provider
information for all SHBP plans is available in the Unified Provider
Directory (UPD). The UPD is an online service that provides a
comprehensive listing of health care providers and facilities
that deliver their services through one or more of the SHBP's
health care plans. Updated monthly, you can access the UPD through
the SHBP home page at: www.state.nj.us/treasury/pensions/shbp.htm
HEALTH FAIRS DISCONTINUED
In keeping with the
policy adopted last year, the SHBP will not provide health
fairs during this year's Open Enrollment.
ADDITIONAL INFORMATION
If you have any questions
about the Open Enrollment or the information in this letter, please
contact our Office of Client Services at (609) 292-5353, and select
option #2 on the phone. When prompted, leave a message and a representative
will return your call.
Thank you for your assistance
in making the Open Enrollment a success for your employees.
Enclosure:
2002
SHBP Open Enrollment Milestone Chart
August 21, 2002
TO: State
Departmental Human Resource Directors
State Biweekly Human Resources Representatives
State Monthly Universities, Colleges and Authorities
FROM: Florence
J. Sheppard
Assistant Director for Health Benefits
SUBJECT: SHBP
Open Enrollment 2002
The State Health Benefits
Program (SHBP) Open Enrollment period for all State employees
will begin on October 1, 2002 and end on October 31, 2002.
Completed employer certified health benefit and/or dental applications
should be forwarded to the Health Benefits Bureau as soon as they
are received from employees. (The last day that certified applications
must arrive at the Health Benefits Bureau to be effective for
the start of the new plan year is November 8, 2002.) All changes
to coverage made during this open enrollment will be effective
on December 28, 2002 for State biweekly employees paid through
State Centralized Payroll Unit and on January 1, 2003 for all
other State employees.
State biweekly Human
Resources Representatives will note that this year's October
dates for Open Enrollment are new for State biweekly employees.
We ask that you make your employees aware of this change from
last year's September time frame.
OPEN ENROLLMENT SUPPORT
The State Health Benefits
Commission is in the process of reviewing consultant recommendations
and rates for the new plan year. Once this information is available
in mid-September, the SHBP will be preparing materials that explain
any changes made, if any are made, to both you and your employees.
This mailing includes a milestone chart that lists key Open Enrollment
events and dates, and the projected delivery schedule for Open
Enrollment publications.
PRINT MATERIALS
In September, Human
Resources Representatives will receive the SHBP's Open Enrollment
Announcement letter along with a preview issue of the Health
Capsule newsletter and an updated list of medical and dental
plans and their costs.
The Health Capsule
is written to announce the SHBP Open Enrollment period to employees
and to present important information and changes that may affect
their benefit selection. On September 27, the Health Capsule
newsletter and Open Enrollment fliers will be distributed with
paychecks to all employees paid through the State's Centralized
Payroll Unit. All other State monthly Human Resources Representatives
will receive a supply of newsletters for distribution to their
employees for the Open Enrollment period.
Human Resources Representatives
will also receive copies of the SHBP Plan Comparison Summary
chart, and Summary Program Description booklet for
distribution to their employees. These publications will be revised
for the Open Enrollment and provide an overview of the SHBP, a
description of each plan offered, and plan by plan comparisons
of selected benefits to help employees make an informed health
plan choice.
Revisions are also being
made to the State Dental Program Member Handbook and the
Employee Prescription Drug Plan Member Handbook with distribution
planned for the Open Enrollment period.
ONLINE INFORMATION
In addition to our printed
materials, Web-based presentations on the SHBP Open Enrollment
will be available for both employers and employees 24 hours a
day, seven days a week. These will be available for viewing during
the Open Enrollment period. Once Open Enrollment begins you will
find the link on the SHBP homepage at: www.state.nj.us/treasury/pensions/shbp.htm
Participating provider
information for all SHBP plans is available in the Unified Provider
Directory (UPD). The UPD is an online service that provides a
comprehensive listing of health care providers and facilities
that deliver their services through one or more of the SHBP's
health care plans. Updated monthly, you can access the UPD through
the SHBP home page at: www.state.nj.us/treasury/pensions/shbp.htm
HEALTH FAIRS DISCONTINUED
In keeping with the
policy adopted last year, the SHBP will not provide health
fairs during this year's Open Enrollment.
ADDITIONAL INFORMATION
If you have any questions
about the Open Enrollment or the information in this letter, please
contact our Office of Client Services at (609) 292-5353, and select
option #2 on the phone. When prompted, leave a message and a representative
will return your call.
Thank you for your assistance
in making the Open Enrollment a success for your employees.
Enclosure:
2002
SHBP Open Enrollment Milestone Chart
August 16, 2002
TO: State
University and College Benefits Administrators
State Monthly Benefits Administrators
FROM: John
D. Megariotis
Assistant Director, Finance
SUBJECT: Open
Enrollment For The New Jersey State Employees Tax Savings Program
(Tax$ave 2003)
The annual open enrollment
for the calendar year 2003 New Jersey State Employees Tax Savings
Program (Tax$ave 2003) will be conducted from September 13 through
October 31, 2002. Employees of the State, State authorities, State
universities, and State colleges who are eligible for participation
in the New Jersey State Health Benefits Program (SHBP) may participate
in Tax$ave.
About Tax$ave
Tax$ave consists of
three components:
1.The Premium Option
Plan (POP);
2.The Unreimbursed Medical
Spending Account (UMSA); and
3.The Dependent Care
Spending Account (DCSA).
Tax$ave offers eligible
employees the opportunity to increase their available income by
reducing their federal tax liability. Each year eligible employees
should review their personal financial circumstances and decide
if they wish to participate or not. Open Enrollment offers employees
the opportunity to conduct this review and then act on their decision.
Premium Option Plan
Enrollment in the Premium
Option Plan is automatic. This saves your employees tax money
by paying health and dental premiums from pre-tax dollars and
reducing their tax liability. If an employee does not wish to
take advantage of the Premium Option Plan in 2003 (and therefore
pay more in federal, Social Security, and Medicare taxes) he or
she should file a Declination of Premium Option Plan (POP) form.
Flexible Spending
Accounts
The Unreimbursed Medical
Spending Account (UMSA); and the Dependent Care Spending Account
(DCSA) are also referred to as Flexible Spending Accounts (FSA's).
Unlike the POP or the
plans of the SHBP, prior participation in a Tax$ave FSA in 2002
does not carry over automatically into 2003. Employees
must enroll again to participate in an FSA for calendar year 2003.
Employees have three
ways of enrolling in the Tax$ave FSA accounts this year: mail,
telephone, and Internet. The Tax$ave publications will provide
the following instructions to employees:
- Mail: FSA Election Applications
must be mailed directly to Horizon Healthcare by the employee.
All election forms must be postmarked no later than October
31, 2002, to be accepted. Those postmarked after October 31,
2002 will be returned without action. Benefits offices should
not be involved in processing or mailing FSA Election Applications.
- Telephone: Employees
may either enroll (or reenroll) in the UMSA or DCSA plans
for 2003 over the phone by calling Horizon Healthcare's automated
voice response unit at 1-800-224-4426. This is a great opportunity
to quickly and easily go through the process of a new or repeat
enrollment. Horizon will inform current participating employees
of this opportunity through a direct mailing in September.
The deadline for enrollment by telephone is midnight, October
31, 2002.
- Internet: Again this
year employees have the ability to enroll (or reenroll) over
the Internet. Go to the Horizon Healthcare Web page through
a link from the Division of Pensions and Benefits' Tax$ave
page at: www.state.nj.us/treasury/pensions/taxsave.htm
and follow the simple directions. The deadline for enrollment
over the Internet is midnight, October 31, 2002.
Tax$ave Support Materials
The remainder of this
letter provides information on the Tax$ave Open Enrollment publications
and support available to assist you in explaining this important
benefit program to your employees. Please do your best to make
a concerted effort to inform your employees of the open enrollment
and to educate them on the valuable benefits that Tax$ave offers
them. We believe that more employees will participate in Tax$ave
if they are made aware and understand the value of the tax savings
offered by the program.
Enclosed is the Tax$ave
Open Enrollment Milestones Chart that lists the critical dates
of the Tax$ave 2003 Annual Open Enrollment and outlines the efforts
being made to educate employees. Please use this chart as a checklist
to guide your activities during the open enrollment.
The Division will also
provide State Monthly employers, State Universities, and State
Colleges with sufficient copies of the Tax$ave
2003 Open Enrollment News and the Premium
Option Plan 2003 pamphlet for all eligible employees. Horizon
Healthcare will provide sufficient copies of the FSA pamphlet
for distribution to all of your eligible employees.
- The Tax$ave 2003 Open Enrollment
News announces the open enrollment, outlines the components
of the program with emphasis on its tax saving advantages,
and identifies the October 31, 2002 deadline for submission
of all election materials.
- The Premium Option Plan 2003
pamphlet explains the advantages and disadvantages of participation.
- The FSA pamphlet describes the
Unreimbursed Medical Spending Account (UMSA) and the Dependent
Care Spending Account (DCSA).
These publications will
be shipped to employers early in September and you should distribute
them to your employees before the Open Enrollment start date on
September 13, 2002. Preview copies of these publications are enclosed
with this letter.
We also encourage you
to provide your employees with reminders of the Tax$ave Open Enrollment
to ensure they don't allow this opportunity to slip by without
action.
The other open enrollment
materials you will need are the FSA Election Kits and the Declination
of Premium Option Plan (POP) for Plan Year 2003 form.
- FSA Election Kits for 2003
will be sent directly to benefits administrators by Horizon
Healthcare, along with a request form for additional kits.
Please provide the FSA Election Kits to those employees who
request them.
- This letter includes a minimal
supply of the declination forms. These can be copied for use
by those few employees who do not wish to participate in the
POP and, therefore, pay more in tax. (Note: do not distribute
POP Declination forms to employees unless they ask for one.)
If an employee chooses not to save tax dollars under the Tax$ave
Premium Option Plan and wants to pay more federal income,
Social Security, and Medicare taxes on the salary used to
pay their medical and dental premiums in 2003, they must complete
a POP form declining the federal tax break they could receive.
Employees should request these forms from you. We will be
instructing employees to return the Declination
of Premium Option Plan (POP) forms to benefits administrators
by October 31, 2002. Benefits administrators must then forward
declination forms to payroll.
We appreciate your cooperation.
Your involvement in the Tax$ave Open Enrollment is key to your
employees receiving the valuable benefits offered by this program.
If you have any questions about Tax$ave 2003 or the open enrollment,
call the Horizon Healthcare Insurance Agency, Inc. at 1-800-224-4426,
or visit the Division of Pensions and Benefits' Tax$ave Internet
site at: www.state.nj.us/treasury/pensions/taxsave.htm
Enclosures:
Tax$ave 2003 Open Enrollment
Milestones
Tax$ave 2003 Open Enrollment
News (sample)
The Premium Option Plan
2003 Pamphlet (sample)
Tax$ave Pamphlet - Savings
You Can Bank On.(sample)
Declination
of Premium Option Plan (POP) for Plan Year 2003 (three copies
enclosed)
August 16, 2002
TO: State
Department Human Resource Directors
State Biweekly Payroll Locations
Benefits Administrators
FROM: John
D. Megariotis
Assistant
Director, Finance
SUBJECT: Open
Enrollment For The New Jersey State Employees Tax Savings Program
(Tax$ave 2003)
The annual open enrollment
for the calendar year 2003 New Jersey State Employees Tax Savings
Program (Tax$ave 2003) will be conducted from September 13 through
October 31, 2002. Employees of the State who are eligible for
participation in the New Jersey State Health Benefits Program
(SHBP) may participate in Tax$ave.
About Tax$ave
Tax$ave consists of
three components:
1.The Premium Option
Plan (POP);
2.The Unreimbursed Medical
Spending Account (UMSA); and
3.The Dependent Care
Spending Account (DCSA).
Tax$ave offers eligible
employees the opportunity to increase their available income by
reducing their federal tax liability. Each year eligible employees
should review their personal financial circumstances and decide
if they wish to participate or not. Open Enrollment offers employees
the opportunity to conduct this review and then act on their decision.
Premium Option Plan
Enrollment in the Premium
Option Plan is automatic. This saves your employees tax money
by paying health and dental premiums from pre-tax dollars and
reducing their tax liability. If an employee does not wish to
take advantage of the Premium Option Plan in 2003 (and therefore
pay more in federal, Social Security, and Medicare taxes) he or
she should file a Declination of Premium Option Plan (POP) form.
Flexible Spending
Accounts
The Unreimbursed Medical
Spending Account (UMSA); and the Dependent Care Spending Account
(DCSA) are also referred to as Flexible Spending Accounts (FSA's).
Unlike the POP or the
plans of the SHBP, prior participation in a Tax$ave FSA in 2002
does not carry over automatically into 2003. Employees
must enroll again to participate in an FSA for calendar year 2003.
Employees have three
ways of enrolling in the Tax$ave FSA accounts this year: mail,
telephone, and Internet. The Tax$ave publications will provide
the following instructions to employees:
- Mail: FSA Election Applications
must be mailed directly to Horizon Healthcare by the employee.
All election forms must be postmarked no later than October
31, 2002, to be accepted. Those postmarked after October 31,
2002 will be returned without action. Benefits offices should
not be involved in processing or mailing FSA Election Applications.
- Telephone: Employees
may either enroll (or reenroll) in the UMSA or DCSA plans
for 2003 over the phone by calling Horizon Healthcare's automated
voice response unit at 1-800-224-4426. This is a great opportunity
to quickly and easily go through the process of a new or repeat
enrollment. Horizon will inform current participating employees
of this opportunity through a direct mailing in September.
The deadline for enrollment by telephone is midnight, October
31, 2002.
- Internet: Again this
year employees have the ability to enroll (or reenroll) over
the Internet. Go to the Horizon Healthcare Web page through
a link from the Division of Pensions and Benefits' Tax$ave
page at: www.state.nj.us/treasury/pensions/taxsave.htm
and follow the simple directions. The deadline for enrollment
over the Internet is midnight, October 31, 2002.
Tax$ave Support Materials
The remainder of this
letter provides information on the Tax$ave Open Enrollment publications
and support available to assist you in explaining this important
benefit program to your employees. Please do your best to make
a concerted effort to inform your employees of the open enrollment
and to educate them on the valuable benefits that Tax$ave offers
them. We believe that more employees will participate in Tax$ave
if they are made aware and understand the value of the tax savings
offered by the program.
Enclosed is the Tax$ave
Open Enrollment Milestones chart that lists the critical dates
of the Tax$ave 2003 Annual Open Enrollment and outlines the efforts
being made to educate employees. Please use this chart as a checklist
to guide your activities during the open enrollment.
The initial announcement
of the open enrollment to employees paid through Centralized Payroll
will be made in an August 30 paycheck message. On the September
13 paychecks there will be another Tax$ave 2003 Open Enrollment
announcement message and three payroll inserts. These inserts
are:
- The Tax$ave 2003 Open
Enrollment News that announces the open enrollment, outlines
the components of the program with emphasis on its tax saving
advantages, and identifies the October 31, 2002 deadline for
submission of all election materials;
- An FSA pamphlet that describes
the Unreimbursed Medical Spending Account (UMSA) and the Dependent
Care Spending Account (DCSA); and
- The Premium
Option Plan 2003 pamphlet that explains the advantages
and disadvantages of participation.
A copy of the check
message announcements and preview copies of the Tax$ave publications
are enclosed with this letter.
In addition to announcing
the open enrollment to employees paid through Centralized Payroll
in the August 30 and September 13 paychecks, we will provide "reminder
messages" about the Tax$ave 2003 Open Enrollment to employees
through paycheck messages on September 27, October 11, and October
25.
The other open enrollment
materials you will need are the FSA Election Kits and the Declination
of Premium Option Plan (POP) for Plan Year 2003 form.
- FSA Election Kits for 2003
will be sent directly to benefits administrators by Horizon
Healthcare, along with a request form for additional kits.
Please provide the FSA Election Kits to those employees who
request them.
- This letter includes a minimal
supply of the declination forms. These can be copied for use
by those few employees who do not wish to participate in the
POP and, therefore, pay more in tax. (Note: do not distribute
POP Declination forms to employees unless they ask for one.)
If an employee chooses not to save tax dollars under the Tax$ave
Premium Option Plan and wants to pay more federal income,
Social Security, and Medicare taxes on the salary used to
pay their medical and dental premiums in 2003, they must complete
a POP form declining the federal tax break they could receive.
Employees should request these forms from you. We will be
instructing employees to return the Declination
of Premium Option Plan (POP) forms to benefits administrators
by October 31, 2002. Benefits administrators must then forward
declination forms to Centralized Payroll by November 15, 2002.
We appreciate your cooperation.
Your involvement in the Tax$ave Open Enrollment is key to your
employees receiving the valuable benefits offered by this program.
If you have any questions about Tax$ave 2003 or the open enrollment,
call the Horizon Healthcare Insurance Agency, Inc. at 1-800-224-4426,
or visit the Division of Pensions and Benefits' Tax$ave Internet
site at: www.state.nj.us/treasury/pensions/taxsave.htm
Enclosures:
Tax$ave 2003 Open Enrollment
Milestones
Open Enrollment Check
Messages #1 and #2
Tax$ave 2003 Open Enrollment
News (sample)
The Premium Option Plan
2003 Pamphlet (sample)
Tax$ave Pamphlet - Savings
You Can Bank On.(sample)
Declination
of Premium Option Plan (POP) for Plan Year 2003 (three copies
enclosed)
MEMORANDUM
TO: Benefits
Managers
New
Jersey State Colleges and Universities
FROM: John
Megariotis
Assistant Director, Finance
DATE: July
15, 2002
SUBJECT: PAYMENT
OF BENEFITS UNDER ERI CATEGORIES 1 & 3
Under
the provisions of the 2002 Early Retirement Incentive (ERI) legislation,
Chapter 23, P.L. 2002, the
employing agency is responsible for the payment of the Category
1 and 3 incentive for employees enrolled in the Alternate Benefit
Program (ABP). The Category 1 incentive is 60 percent of one year's
base salary in two equal payments made one month and thirteen
months after retirement. The category 3 incentive is $500 a month
for 24 months. Sections 2d and 4d of Chapter 23 require that these
payments be made to the retiree's ABP retirement
annuity account and/or 403(b) account. Therefore, provisions must
be made to ensure that retirement accounts for eligible ERI retirees
remain active or that new accounts be established by the participants
with the respective Investment Carrier(s). The Division of Pensions
and Benefits has instructed the six participating ABP carriers
of
this requirement. Colleges and universities must notify the carriers,
however, of which of their ABP retirees are
eligible under Categories 1 and 3 of the ERI.
The
enclosed list identifies your former employees enrolled in the
Alternate Benefit Program who retired between February 1, 2002,
and June 1, 2002, and who meet the specific criteria for eligibility
under the Early Retirement
Incentive Program. Since Chapter 23 was retroactive to February
1, 2002, the benefit applicable to the category
noted should be paid along with benefits for the employees who
retired effective July 1, 2002. Be sure to include
these employees on the lists you send the carriers to ensure accounts
are available to accept payments.
Enclosure(s)
MEMORANDUM
TO:
Participating Investment Carrier For
the NJ Alternate Benefit Program
FROM: John
Megariotis
Assistant
Director, Finance
DATE: July
15, 2002
SUBJECT: Receipt
of Employer paid benefits under ERI Categories 1 & 3
Under
the provisions of the 2002 Early Retirement Incentive (ERI) legislation,
Chapter 23, P.L. 2002, the
employing agency is responsible for the payment of the Category
1 and 3 incentive for employees enrolled
in the Alternate Benefit Program (ABP). The Category 1 incentive
is 60 percent of one year's base salary in
two equal payments made one month and thirteen months after retirement.
The category 3 incentive is $500
a month for 24 months. Sections 2d and 4d of Chapter 23 require
that these payments be made to the retiree's
ABP retirement annuity account and/or 403(b) account. Therefore,
provisions must be made to ensure that
retirement accounts for eligible ERI retirees remain active or
that new accounts be established by the
participants with the respective Investment Carrier(s).
As
the participating ABP carriers Division of Pensions and Benefits
is instructing you of this requirement. The
eligible colleges and universities must notify you, however, of
which of their ABP retirees are eligible under
Categories 1 and 3 of the ERI.
If you should
have any questions concerning this matter, you may contact the
Defined Contribution Plans
Unit directly at (609) 777-0887.
July 2002
To: Certifying
Officers
From: Janice
C. Curtin
Assistant
Director, Operations
Subject: Revised
Application for Withdrawal
The Application
for Withdrawal has been revised to incorporate additional
rollover options. The major areas revised
in this application are as follows:
- The Rollover Election,
previously a separate form, has been added to the Application
for Withdrawal.
- The Employer Certification
is now a separate form from the Application
for Withdrawal.
- Fact
Sheet #27 - The Taxability and Mandatory Withholding
of Income Tax from your Pension Distribution has been revised and added to the booklet. It includes information
regarding the Internal Revenue Service regulations that result
in the changes to the Division of Pensions and Benefits' withdrawal
policies.
- In addition to the three options
that have been available for withdrawal in the past, there
are now two more options when rolling over pension contributions
to an Individual Retirement Account (IRA). Now the member
can choose to rollover the entire taxable and non-taxable
portions of their pension account (Selection #2), or rollover
the entire taxable amount and a portion of the non-taxable
amount (Selection #5).
Please recycle your
supply of the former version of the Application
for Withdrawal and begin using the new version immediately.
We have enclosed one
copy of the new Application for Withdrawal. When you require
more, please call the designated employer line for forms and publications,
(609) 777-4357, which is available 24 hours a day, 7 days a week.
Or e-mail your request to us at pensions.nj@treas.state.nj.us
The Application for
Withdrawal can be
downloaded from the Division of Pensions and Benefits' home page
at: www.state.nj.us/treasury/pensions/
The Application
for Withdrawal can also be obtained by fax from the Division
of Pensions and Benefits' Benefit Information Library Fax on Demand
service, 24 hours a day, 7 days a week, by calling (609) 777-1931
from a touch-tone phone. When prompted, select the option for
Fax on Demand and enter fax selection
number 8261 and your 10-digit fax machine number.
July 2002
To: Certifying
Officer,
State Autonomous Authorities
From: Thomas
P. Bryan, Director
SUBJECT: 2002
State Early Retirement Incentive Program
This letter outlines
the assistance the Division will provide for informing your employees
enrolled in the Public Employees' Retirement System (PERS) of
their eligibility to participate in the State Early Retirement
Incentive
(ERI) Program that your organization recently adopted.
Implementation for
PERS Members
The Division of Pensions
and Benefits will provide you with the following:
- ERI information packages (described
below) for each ERI category, to be sent by courier to your
work
site, for delivery to eligible employees,
- On-site ERI Workshops for eligible
employees, and
- A special State ERI web page.
The URL for the site is www.state.nj.us/treasury/pensions/stateeri.htm
The list of eligible
employees in the PERS that we previously provided to you is derived
from our pension records
as of May 22, 2002. These records cannot distinguish between full-time
and part-time employees. Therefore, an employee meeting the age
and service criteria may appear on the list of ERI-eligible employees
when they are not eligible because of part-time status. Additionally,
eligible employees will not appear on the list if they were on
an approved leave of absence at the time the eligibility was determined.
(The employee must be eligible to receive employer-provided health
benefits coverage while on a leave of absence to be eligible to
participate in the ERI).
Notify us by e-mail or fax if an employee should be deleted or
added to the list and provide the reason for the
change. The e-mail address is pensions_eri@tre.state.nj.us and
the fax number is (609) 341-3410.
The eligible PERS
employee ERI information packages, that we will courier to you,
will include the
following items:
- An eligibility letter that describes
the ERI Program and notifies the employee of the specific
incentive for
which he or she qualifies;
- An
Application for Retirement Allowance kit;
- Fact
Sheet #12, Taxation of Retirement Benefits and
- For Category 3 eligible employees
only - An incentive payment rollover kit which includes an
explanatory
letter, a Rollover Request Form
and an ERI Fact Sheet, Taxability
and Rollover Options for Your $500
Monthly Retirement Incentive Payment.
If your Authority participates
in the State Health Benefits Program (SHBP), the packets will
also include the
following:
- A letter offering the opportunity
to continue SHBP coverage into retirement;
- A State
Health Benefits Retired Status Application for enrollment
in the retired group of the State Health
Benefits Program;
- A SHBP rate chart showing the
rates for the various health plans for those employees who
do not qualify for employer-paid SHBP coverage in retirement
or who must premium share; and
- Fact
Sheet #11, Enrolling in the State Health Benefits Program
When You Retire.
The Division will also
courier to you a retirement estimate for each of your eligible
employees based on the last retirement date in your ERI window.
The estimate will include only Maximum Option and Option 1 information.
The estimate letter will provide information on ERI workshops
and how to obtain an estimate that includes joint
and survivor benefits.
ERI Workshop Program
Upon request, the Division
of Pensions and Benefits will conduct retirement workshops at
your work sites. We require a minimum attendance of 20 employees
per session with a maximum of 50 employees. If you are interested
in hosting these workshops for your employees, you should schedule
dates with us as soon as possible.
We will also schedule ERI workshops at our offices at 50 West
State Street, Trenton. These workshops are by appointment only
and will provide eligible employees a complete estimate that includes
joint and survivor options.
The retirement workshops
last approximately two and one-half hours. There is a 75 minute
presentation followed by 75 minutes devoted to answering questions
and assisting employees with application completion. You may schedule
morning and afternoon sessions with us for the same day.
Scheduling Workshops.
To schedule an ERI Workshop
at your location, call our dedicated ERI Workshop voice mailbox
at (609) 984-4521 and press Option "1". A Client Services
representative will return your call to schedule the workshop
date(s) with you.
At least one week before the scheduled date of each workshop,
fax to us an ERI Workshop Reservation Form (attached) for each
scheduled workshop. We need sufficient time to prepare personalized
retirement estimates for your employees. The ERI Workshop Reservation
Form is available on the State ERI Web site and can be completed
online and then printed and faxed.
Resources that will
be required of you to schedule and conduct an on-site ERI workshop
will include:
- A minimum of 20 and maximum
of 50 eligible attendees;
- A suitable meeting room of sufficient
size to hold all scheduled attendees (It must be appropriate
for a Power Point presentation, i.e., must be able to be darkened,
has at least one accessible power outlet, and has a projection
screen or an easily visible blank, light-colored wall);
- A flip chart, chalk board, or
dry erase board;
- A photocopier immediately accessible
and dedicated as a resource to the workshop;
- Sufficient work/table space
for your employees and Division of Pensions and Benefits staff
to complete and accept retirement related forms and applications;
and
- The completed ERI
Workshop Reservation Form (sent to the Division of
Pensions and Benefits a week before the workshop).
The workshop leader
will bring to the workshop an individualized Retirement Estimate
for each of the employees scheduled to attend. The estimate will
include all of the Survivorship Options, (provided the beneficiary
information
was provided to us on the ERI Workshop Reservation Form),
for the requested retirement date. The employees should bring
to the workshop the ERI package materials (previously mailed to
them and described above) and a photocopy of proof of age documents
for themselves and for their pension beneficiary(ies), if considering
a survivor option.
Workshop Aims.
The Division has two primary aims for these workshops. First,
they are to provide your ERI-eligible employees the opportunity
to learn as much as possible about the ERI. The second aim is
to facilitate the submission of the necessary forms at the workshop
should they decide to take advantage of the ERI and retire.
At the conclusion of each seminar, we will provide you with a
list of those employees who filed for retirement and their requested
retirement date so you can complete the Certification of Service
and Final Salary in a timely
manner.
Almost Eligible
PERS/TPAF Members. You may have some PERS covered employees
who would be eligible for this ERI if they purchased other eligible
public service they had performed earlier in their careers. If
you have employees in this situation, you may include them in
the workshops you schedule, but we may not be able to prepare
estimates for them for the workshops. Include their names on the
ERI Workshop Reservation Form, but annotate that they must
purchase service to qualify.
Extension of Retirement
Dates. The Governor's ERI proposal allows Autonomous Authorities
to extend the retirement date for essential individuals for any
number of months up until September 1, 2003, assuming that the
individual consents to the extension. The individual will still
need to formally file an application for
retirement prior to the end of the window with a retirement effective
within the window. The approval authority for these extension
requests is the Governing Body of the Autonomous Authority. Only
individuals who are deemed mission critical should be considered
for an extension. Please submit the list of employees granted
extensions as soon as possible on our form, Report
of Approved Delayed Retirements. The Report of Approved
Delayed Retirements, attached, is also available online through
the State ERI Web site.
June
2002
TO: Certifying
Officer: Teachers' Pension and Annuity Fund, Public Employees'
Retirement System
& Police and Firemen's Retirement System
FROM: John
D. Megariotis
Assistant
Director, Finance
SUBJECT: Report
of Contributions, Second Quarter 2002 (April 1st to
June 30th)
This
memorandum has pertinent information concerning the completion
of your Report of Contributions.
Please read this memorandum before you make any changes to the
Report.
DEADLINE
FOR FILING
Teachers'
Pension and Annuity Fund July 10, 2002
Public
Employees' Retirement System July 10, 2002
Police
and Firemen's Retirement System July 10, 2002
REPORTING
PROCEDURES
Through
the Transmittal Electronic Payments System (TEPS), employers must
submit monthly
transmittal remittances of approximately 1/3 of the total quarterly
amounts due for pension
contributions, contributory life insurance premiums and regular
SACT. Token payments are not acceptable.
Your June 2002 transmittal remittance, which represents the deductions
due for the balance of the quarter,
should be made through TEPS. The portion of the remittance for
total pension deductions should reflect the
sum of normal pension contributions, back deductions, loan payments,
and arrears/purchase deductions. The
TEPS remittance is also due by July 10, 2002.
With
the Report of Contributions, you must complete and return the
Transmittal Summary form for the 2nd quarter
2002. This document is used to assist your office and this Division
in reconciling your transmittal remittances to
the quarterly Report.
If
your quarterly Report and total contributions are not received
in a timely manner, we cannot update the pension accounts of your
employees. This may adversely affect any claim for benefits, including
loan applications, filed by your employees. Also, any delay affects
our scheduling in posting contributions to all members' accounts
as well as the mailing of Reports of Contributions for the following
quarter. Interest will be assessed, as prescribed by statute and
administrative code, when monthly
transmittal remittances and the quarterly Report of Contributions
are not received within fifteen days of the due dates.
When
you receive your quarterly Report, you should review it immediately.
If you think you will have a problem in meeting the filing deadline,
or if there is anything you do not understand, contact the Audit/Billing
Section at
(609) 292-3630. Normally reporting inquiries can be resolved with
a telephone call. Please make all necessary corrections to the
Report before you return it to the Division of Pensions and Benefits.
Verify that all changes are explained, the Report is added correctly,
and the totals agree with the sum of the transmittal remittances.
Please
show on the quarterly Report the telephone number of the individual
to be contacted if our auditors have questions concerning any
items.
SIGNATURE
- Your quarterly Report of Contributions must be signed. Any Report
not bearing a signature will be considered delinquent until an
affidavit is submitted by the Certifying Authority attesting to
its contents. Initials
will not be accepted.
CHANGE
TO MEMBER PENSION RATES - TEACHERS' PENSION AND ANNUITY FUND
Effective
January 1, 2002 Chapter 133, P.L. 2001 reduced the member's pension
rate from 4.5% to 3% for
members of the Teachers' Pension and Annuity Fund. This TPAF employee
contribution rate will remain in effect through 2002 and will
continue thereafter as long as the excess assets of the TPAF permit.
This is not a
permanent change to the normal contribution rate of 5% of salary.
The minimum repayment for pension loans and
the minimum deduction for the purchase of service credit, which
is based on the full 5% contribution rate, will not change.
Retroactive
increases paid on or after January 1, 2002 should be deducted
at 3%, including any portion of the
retroactive salary that covered a period prior to January 1, 2002.
CHANGE
TO MEMBER PENSION RATES - PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Chapter
415, P.L. 1999 reduced the pension rate for members of the Public
Employees' Retirement System for
calendar years 2000 and 2001 from 4.5% to 3%. The pension rate
for calendar year 2002 will remain at 3%.
Retroactive
increases paid on or after January 1, 2000 should be deducted
at 3%, including any portion of the
retroactive salary that covered a period prior to January 1, 2000.
Because the change is a temporary reduction,
the minimum repayment for pension loans and the minimum deduction
for the purchase of service credit will not change. The
minimum deduction for the single payment value will continue to
be computed on 5% of base salary.
SACT
TAX-SHELTERED ANNUITY - REMITTANCE OF 403(b) CONTRIBUTIONS, CHAPTER
247, P.L. 1999
Chapter
247, P.L. 1999 requires 403(b) salary reductions on behalf of
an employee to be transmitted and credited
within five business days from the pay date. Employees of local
boards of education may participate in the
SACT 403(b) program or a 403(b) plan administered by their employer.
This law impacts both arrangements.
Members
of the Public Employees' Retirement System, Teachers' Pension
and Annuity Fund and Police and
Firemen's Retirement System in the Supplemental Annuity (SACT)
Tax Sheltered Annuity Program are required
to have 403(b) salary reductions remitted to the Division of Pensions
and Benefits within the timeframes prescribed
by law. Contributions for these members will be made through the
Transmittal Electronic Payments System (TEPS).
REPORTING
ACTUAL SALARIES FOR PART-TIME EMPLOYEES
(Rule
Change N.J.A.C. 17:2-4.7)
The
Public Employees' Retirement System's Board of Trustees at its
November 17, 1999 meeting adopted a rule change for N.J.A.C. 17:2-4.7
that became effective on January 1, 2000. The amendment requires
reporting districts
to use the actual creditable salary earned by employees, not estimated
salary, for part-time hourly, on-call and
per diem employees.
The
enrollment criteria for part-time hourly, on-call, and per diem
employees remains unchanged. However, once membership is established,
an employee must only meet the $1,500 minimum salary regulation
to continue membership; the number of hours worked in a month
or a year is no longer applicable. This provides greater
equity in granting service credit. A member is entitled to a month
of service as long as the actual creditable salary
being reported exceeds the monthly minimum for enrollment. In
other words, when a 10-month member has a
monthly reportable salary exceeding $150 (one tenth of $1,500),
the member should be reported for that month. Similarly, $125
(one twelfth of $1,500) is the minimum monthly reportable salary
for a 12-month member. If the
member does not make $1,500 in the current calendar year, and
is not expected to make $1,500 in the following
year, that employee is no longer eligible for the retirement system.
TEPS
- TRANSMITTAL SHORTAGE PAYMENTS
The
Division sends transmittal shortage statements when the sum of
the transmittal remittances does not equal
the due figure on the quarterly Report of Contributions. Transmittal
shortage statement payments can only be paid through TEPS. Checks
received for payment of transmittal shortages will be returned.
If you have questions related
to TEPS, contact the TEPS Helpline at (888) 835-3345 or FAX your
inquiries to the Audit/Billing Section at
(609) 633-1708.
CHANGING
BANKING INFORMATION FOR TEPS
Notice
of Changes for TEPS should be submitted to the Division of Pensions
and Benefits on or after the date that
the new checking account becomes effective. Every Notice of Change
is prenoted to ensure that the Division has
the correct banking information. This normally takes 12 to 15
days.
CHANGE
TO BASE SALARY
It
is important to review the salary shown in column 6 and verify
that it correctly reflects the member's base salary for the quarter.
If the salary shown is not correct, draw a line through it and
write the correct salary above it. Pension Contributions, Contributory
Insurance, SACT, and Tax-Sheltered Annuity deductions must be
changed to reflect amounts due on the new salary.
If
your employees received a salary increase that is retroactive
to a prior quarter, change column 6 to reflect the COMBINED TOTAL
of:
(a)
the new base salary for the quarter, plus,
(b)
the additional base salary for the retroactive period.
The
new quarterly base salary should be written in column 1 of the
Report. This salary will be projected in column 6
of your next quarterly Report. This will eliminate the need to
make numerous changes on your 3rd quarter Report of
Contributions. Also, in the "Remarks Column" of the
current Report you should indicate that the members had a
salary increase and the effective date.
REPORTING
RETROACTIVE SALARY AFTER RETIREMENT
If
a member receives a retroactive salary adjustment after retirement,
do not write the member's name on the Report
of Contributions. Complete a new Certification of Service and
Final Salary and indicate that it is a retroactive
adjustment after retirement by writing on the top of the Certification
"Revised Due to Retro." Deduct the pension contributions
and contributory life insurance, if applicable, from the retroactive
check and remit that amount on
behalf of the member to the Audit/Billing Section of this Division.
STATEMENTS
OF OVERAGES/SHORTAGES
Overages
and shortages that affect a member's Annuity Savings Fund identify
whether or not the pension contributions are subject to the 414(h)
provision. These statements should be reviewed to determine when
adjustments are required to your payroll records in calculating
year-to-date mandatory pension contributions under 414(h). All
overage and shortage statements that cover a period prior to January
1, 1987 are not subject to the 414(h) provision. Please note that
all member shortages are to be paid by separate check. Do not
remit through TEPS.
Should
you have any questions or need assistance in completing the Report,
please telephone us at
(609) 292-3630.
Enclosures:
- Quarterly
Report of Contributions
- Transmittal
Summary for 2nd Quarter 2002
- Envelope
for Report
- Report
of Salary Change for 3rd qtr 2002 (TPAF and PERS
boards of education)
- Report
of Salary Change Instruction Memo
June
2002
To: Certifying
Officer
Public Employees' Retirement
System (Boards of Education)
Teachers' Pension and Annuity
Fund
From: John
D. Megariotis
Assistant
Director, Finance
Subject: Report
of Salary Change Instructions
The
enclosed Report of Salary Change lists those members projected
on your second quarter 2002 Report of Contributions. The list
shows the membership number, member's name, payment plan (10/12),
and provides space to insert the base salary to be projected on
the quarterly Report of Contributions for the third calendar quarter
of 2002.
You
should insert only the member's quarterly base salary,
rounded to the nearest dollar, which will correctly reflect the
member's base wage for the third quarter Report of Contributions.
Do not add members (new enrollments, transfers, employees returning
from leave of absence) to this report, nor should you reflect
a name change.
For
example, a 12-month employee whose annual salary is $24,000 effective
July 1st will be shown at a quarterly salary of $6,000.
This is the salary that will be paid for the months of July, August,
and September. Teachers who are on a "Summer Payment Plan"
are not to be reported as 12-month employees.
A
10-month employee at the same annual base salary of $24,000 will
be reported at $2,400, because the member will be paid for only
one month in the third quarter - the month of September. If the
member's payment plan will change in the third quarter from a
10-month basis to a 12-month basis or a 12-month basis to a 10-month
basis, please make this correction on the Report of Salary Change.
For
12 month members project only three full months of contractual
base salary even if an employee will be on leave of absence or
terminating employment. It has been our experience that employers
reporting one or two months of salary on the Report of Salary
Change have the correct base salary and contributions on the next
quarterly Report of Contributions, but the months of service column
is not changed to reflect the correct service credit.
There
is sometimes a delay in a board of education adopting its new
salary budget, and although salary changes are effective July
1st for 12-month members and September 1st for 10-month members,
the retroactive increase is not paid until the fourth quarter.
Under these circumstances, it is suggested that you forward the
Report of Salary Change to this Division before November 10th
with the new quarterly base salary for the fourth quarter plus
the retroactive increase covering the third quarter. This should
be one combined figure. In this case, you must denote on the
first page of the projection sheet that this is a fourth quarter
salary projection. In addition, you should request a Report of
Salary Change for the first quarter 2003 to insert the quarterly
base salaries to be projected on the first quarter 2003 Report
of Contributions. If you follow this procedure, it will avoid
numerous changes on your Report of Contributions, because the
Division will project the proper salary and deductions for each
quarter.
The
Division will furnish a Report of Salary Change for any quarter
upon request. To avoid delays in submitting your Report of Contributions,
it is recommended that you use the Report of Salary Change, rather
than column 1 of the Report, whenever you have numerous salary
projections. To process a Report of Salary Change, it must be
returned to the Division of Pensions and Benefits by the 15th
of the second month of a calendar quarter for the salaries to
be projected for that quarter.
To
project the salaries on your third quarter 2002 Report of Contributions,
the changes must be received no later than August 15th.
In
Summary
- Project
only 3 months of base salary for 12 month members (plus retro,
if applicable)
- Do
not add members
- Do
not make name changes
- Return
the report of salary change by August 15th
June 18, 2002
TO: State
Biweekly Human Resource Directors/Benefits Administrators
FROM: State
Health Benefits Program
SUBJECT: University
Health Plans (UHP), Termination in SHBP
Effective July 27, 2002
University Health Plans HMO will terminate its participation in
the State Health Benefits Program (SHBP) and will no longer be
available to your employees.
We request that you
not allow new employees to enroll in UHP. Other employees, who
might make health plan changes outside of the regular Open Enrollment
period - employees returning from leave of absence, COBRA enrollees,
etc. - should also be informed that UHP is no longer available.
Revised health plan
descriptions (that do not reference UHP) are being prepared and
will be available for the fall Open Enrollment.
Employees and retirees
currently enrolled in UHP are being contacted individually and
are being given an opportunity to transfer to another SHBP participating
health plan.
If you have any questions
regarding this matter, please contact the Division of Pensions
and Benefits, Office of Client Services at (609) 292-7524.
June 18, 2002
TO: SHBP Participating
Local Government Employers
SHBP Participating Local Education
Employers
State Monthly Human Resource
Directors/Benefits Administrators
FROM: State
Health Benefits Program
SUBJECT: University
Health Plans (UHP), Termination in SHBP
Effective August 1,
2002 University Health Plans HMO will terminate its participation
in the State Health Benefits Program (SHBP) and will no longer
be available to your employees.
We request that you
not allow new employees to enroll in UHP. Other employees, who
might make health plan changes outside of the regular Open Enrollment
period - employees returning from leave of absence, COBRA enrollees,
etc. - should also be informed that UHP is no longer available.
Revised health plan
descriptions (that do not reference UHP) are being prepared and
will be available for the fall Open Enrollment.
Employees and retirees
currently enrolled in UHP are being contacted individually and
are being given an opportunity to transfer to another SHBP participating
health plan.
If you have any questions
regarding this matter, please contact the Division of Pensions
and Benefits, Office of Client Services at (609) 292-7524.
Enclosure
January
2002
TO: Certifying
Officers, State Employers
FROM: Janice
A. Vasil, Manager, Operations
SUBJECT: Certification
of Payroll Deductions - Revision
The
Division of Pensions and Benefits is changing the Certification
of Payroll Deductions form that authorizes payroll deductions
for pension, loans, arrears, etc. The current mailers with the
carbon paper copies, that are sometimes difficult to read, will
be replaced by the type of mailer currently used for the annual
Personal Benefits Statements.
You
will receive only a member copy of the certification (no employer
copy) which will be an original print. There is no employer copy
of the certification, so there is no need to open the certification.
Just give the certification to your employee as their notice that
the deductions will begin. Employers will be able to access prior
certifications online through the Division's Employer Pensions
and Benefits Information Connection (EPIC) when it debuts
later this year. Centralized Payroll receives the Certification
of Payroll Deductions in a computerized format.
The
new form will be used for certifications to begin March 1, 2002.
A copy of the revised certification is enclosed for your information.
You
will note that, except for the heading of the certification, the
rest of the form is the same as the current form. What is missing
is the information that appeared on the back of the certifications
to explain some of the information on the form. That same information
is now available over the Internet at www.state.nj.us/treasury/pensions/cert.htm
or you may call the Office of Client Services at (609) 292-7524
for assistance.
We
continue to look for technology ways to improve our service to
employers and our members. This is one small step in that direction.
Enclosure
January
2002
TO: Certifying
Officers, Local Employers
FROM: Janice
Vasil, Manager, Operations
SUBJECT: Certification
of Payroll Deductions - Revision
The
Division of Pensions and Benefits is changing the Certification
of Payroll Deductions form that authorizes you to begin
employee deductions for pension, loans, arrears, etc. The current
mailers with the carbon paper copies, that are sometimes difficult
to read, will be replaced by the type of mailer currently used
for the annual Personal Benefits Statements.
Both
the employer copy and the member copy of the certification will
be an original print. As always, you should keep the employer
copy and give the employee copy to your employee.
The
new form will be used for certifications of deductions to begin
March 1, 2002. A copy of the revised certification is enclosed
for your information.
You
will note that, except for the heading of the certification, the
rest of the form is the same as the current form. What is missing
is the information that appeared on the back of the certifications
to explain some of the information on the form. That same information
is now available over the Internet at www.state.nj.us/treasury/pensions/cert.htm
or you may the Office of Client Services at (609) 292-7524 for
assistance.
We
continue to look for technology ways to improve our service to
employers and our members. This is one small step in that direction.
Enclosure
MEMORANDUM
TO: State
of New Jersey Human Resources Managers
FROM: Florence
J. Sheppard
Assistant Director, State Health Benefits Program
DATE: February
14, 2002
SUBJECT:
Long Term Care Plan Orientation for State Personnel Officers
The
Division of Pensions and Benefits will present an orientation
on the new Long Term Care Insurance Plan for Department Personnel
Officers and their benefits managers on February 28, 2002. The
meetings will last about an hour and will be held in the first
floor boardroom at One State Street Square starting at 9:30 a.m.,
11:00 a.m., and 2:00 p.m. You may attend whichever meeting best
fits your schedule.
The
purpose of the orientation is to give you an overview of the new
plan, explain how it will be marketed to your employees, and outline
how it will be administered. The presentation will encompass a
summary of the following items: plan design, eligibility, the
conduct of the open enrollment, the application process, costs,
the premium payment arrangements available to participants, and
general plan administration. The program has been designed
to not place any administrative requirements on either the Division
of Pensions and Benefits or your benefits managers and payroll
personnel, with the one exception that is mentioned below.
The
open enrollment period for State employees and retirees is scheduled
to commence on March 1 and end on May 31 of this year. All employees
of the State, including part-time, seasonal, intermittent and
per diem employees, will be eligible to enroll in the Plan. Prudential
Insurance Company, the administrator of the Plan, will be mailing
your employees informational materials to their home addresses.
We would also like to offer informational sessions at your job
sites during the open enrollment. We need your assistance in scheduling
these sessions and, once confirmed, in notifying your employees
of their time and location. Representatives of Prudential Insurance
Company will conduct these sessions. Each session will run about
an hour including answering questions the employees may have.
The size and number of sessions will be determined by the capacity
of the facility you are able to provide and any special scheduling
considerations you may have. Please develop and bring to the orientation
session a tentative listing of the locations where you would like
the informational sessions to be given and the approximate number
of sessions needed to accommodate your employees at each location.
Scheduling will be finalized with you by Prudential representatives.
I
apologize for the late scheduling and notification of this meeting,
but events beyond our control have prevented us from doing this
any earlier. Please call or e-mail Larry Lenahan in the Division
of Pensions and Benefits to confirm which session you will attend
and provide the names of anyone else in your organization you
wish to attend. Larry's telephone number is (609) 292-3648, and
his e-mail address is Lenahan_L@tre.state.nj.us
January
23, 2002
TO: Certifying
Officer for the Division of Criminal Justice,
Public Employees' Retirement System
FROM: Janice
C. Curtin
Assistant Director, Operations
SUBJECT: Prosecutor
Pension Benefits
Chapter
366, P.L. 2001 establishes the Prosecutors Part of the Public
Employees' Retirement System (PERS). This essentially provides
enhanced pension benefits for selected individuals within County
Prosecutor Offices and in the Division of Criminal Justice. The
law is rather complex and it will be some time before the Division
of Pensions and Benefits will be ready to distribute detailed
information on the benefits it provides and the procedures for
implementing those benefits. However, the first step in implementation
is the identification of affected employees and the certification
of their service as prosecutors. More information regarding this
process follows.
Reporting
Eligibility for the Prosecutors Part Benefits
Chapter
366, P.L. 2001 defines positions within the Division of Criminal
Justice eligible to be included in the new Prosecutors Part of
the PERS as
- The Division
Director,
- Any assistant
director, deputy director, assistant attorney general, and
deputy attorney general, and
- All criminal
investigators not in the Police and Firemen's Retirement System.
For
the purposes of Chapter 366, these positions are called prosecutor
positions.
Please
complete the attached form
and return it to the attention of the Special Case Processing
Unit, Enrollment and Purchase Bureau at the address on the letterhead
by February 15, 2002. We need information on the employees in
your prosecutor positions on January 7th (and those
appointed to them since that date). Please include name, PERS
membership number, social security number, job title, the dates
appointed to that prosecutor position, and, if applicable, any
other prosecutor position they previously held in the Division
of Criminal Justice and the dates they were in that position.
Do not include information on individuals who previously served
in prosecutor positions, but who were not in them on the effective
date of Chapter 366. A completed sample
form is enclosed as a guide to assist you in providing the
information requested.
Notification
to Eligible Employees
There
is a letter enclosed that we request
you use to notify employees of their eligibility for Prosecutor
Part benefits. It provides information currently available about
the new benefit. It also includes a form
that the employee should use to report prior prosecutor service
with other employers. The letter instructs the employee to return
the form directly to the Division of Pensions and Benefits, not
to the employer. We request that you provide each of the employees
you identify as eligible with a copy of the attached letter and
accompanying form.
Procedures
When Making New Appointments To Prosecutor Positions
When
you appoint employees to prosecutor positions in the future, you
need to specifically identify them as eligible for participation
in the Prosecutor Part of PERS. Do this by writing "Chapter
366 applies" in the certification section of the Enrollment
Application or the Report of Transfer Form. If the employee is
being appointed from within your organization (where no applications
would normally be required), send a letter identifying the employee,
the new position, and the date of appointment to the Division,
Attention: Special Case Processing Unit, Enrollment and Purchase
Bureau.
If
you have questions about this letter, please contact our Office
of Client Services at (609) 292-7524.
January
23, 2002
TO: County
Certifying Officers, PERS
FROM: Janice
C. Curtin
Assistant Director, Operations
SUBJECT: Prosecutor
Pension Benefits
Chapter
366, P.L. 2001 establishes the Prosecutors Part of the Public
Employees' Retirement System. This essentially provides enhanced
pension benefits for selected individuals within County Prosecutor
Offices and in the Division of Criminal Justice. The law is rather
complex and it will be some time before the Division of Pensions
and Benefits will be ready to distribute detailed information
on the benefits it provides and the procedures for implementing
those benefits. However, the first step in implementation is the
identification of effected employees and the certification of
their service as prosecutors. More information regarding this
process follows.
Reporting
Eligibility for the Prosecutors Part Benefits
Chapter
366, P.L. 2001 defines positions in county prosecutor offices
eligible to be included in the new Prosecutors Part of the PERS
as
- the county
prosecutor,
- the first
assistant prosecutor, and
- assistant
prosecutor as defined in N.J.S.2A:158-1 et seq.
Please
complete the attached form
and return it to the attention of the Special Case Processing
Unit, Enrollment and Purchase Bureau at the address on the letterhead
by February 15, 2002. We need information on the employees in
your prosecutor positions on January 7th (and those
appointed to them since that date). Please include name, PERS
number, social security number, job title, the dates appointed
to that prosecutor position, and, if applicable, any other prosecutor
position they previously held in your county prosecutor's office
and the dates they were in that position. Do not include information
on individuals who previously served in prosecutor positions,
but who were not in them on the effective date of Chapter 366.
A completed sample form is
enclosed as a guide to assist you in providing the information
requested.
Notification
to Eligible Employees
There
is a letter enclosed that we request
you use to notify employees of their eligibility for Prosecutor
Part benefits. It provides information currently available about
the new benefit. It also includes a form
that the employee should use to report prior prosecutor service
with other employers. The letter instructs the employee to return
the form directly to the Division of Pensions and Benefits, not
to the employer. We request that you provide each of the employees
you identify as eligible with a copy of the attached letter and
accompanying form.
Procedures
When Making New Appointments To Prosecutor Positions
When
you appoint employees to prosecutor positions in the future, you
need to specifically identify them as eligible for participation
in the Prosecutor Part of PERS. Do this by writing "Chapter
366 applies" in the certification section of the Enrollment
Application or the Report of Transfer Form. If the employee is
being appointed from within your organization (where no applications
would normally be required), send a letter identifying the employee,
the new position, and the date of appointment to the Division,
Attention: Special Case Processing Unit, Enrollment and Purchase
Section.
If
you have questions about this letter, please contact our Office
of Client Services at (609) 292-7524.
January
2002
TO: Employees
Eligible for Prosecutor Part Benefits,
Public Employees' Retirement System
FROM: Janice
C. Curtin
Assistant Director, Operations
SUBJECT: Prosecutor
Pension Benefits
Chapter
366, P.L. 2001 establishes the Prosecutors Part of the Public
Employees' Retirement System (PERS). This essentially provides
enhanced pension benefits for selected individuals within County
Prosecutor Offices and in the Division of Criminal Justice. The
law is rather complex and it will be some time before the Division
of Pensions and Benefits will be ready to distribute detailed
information on the benefits it provides and the procedures for
implementing those benefits. However, we have begun the first
step in implementation by asking employers to identify the affected
employees and to certify their service as prosecutors.
Eligibility
for the Prosecutors Part Benefits
Chapter
366, P.L. 2001 defines positions in county prosecutor offices
eligible to be included in the new Prosecutors Part of the PERS
as
- the county
prosecutor,
- the first
assistant prosecutor, and
- assistant
prosecutor as defined in N.J.S.2A:158-1 et seq.
The
law also defines positions in the Division of Criminal Justice
eligible to be included in the new Prosecutors Part of the PERS
as
- The Division
Director,
- Any assistant
director, deputy director, assistant attorney general, and
deputy attorney general, and
- All criminal
investigators not in the Police and Firemen's Retirement System.
For
the purposes of Chapter 366, these positions are called prosecutor
positions.
Reporting
other Prosecutor Service
Your
employer has identified you as eligible for Prosecutor Part benefits
and will be reporting on all your prosecutor service with them.
However, if you have prior prosecutor service with another employer,
you need to identify that service to the Division of Pensions
and Benefits. Please complete the attached
form and return it to the attention of the Special Case Processing
Unit, Enrollment and Purchase Bureau at the address on the letterhead
by February 28, 2002. Include your name, PERS membership number,
social security number, prosecutor job title(s), the dates served
in the prosecutor position(s), and the employer for whom that
prosecutor service was worked. The Division will verify that service
with your previous employer and notify you of your credited service
in the Prosecutor Part of PERS.
As
stated previously, the implementation of this law will take considerable
time. You will be contacted through your employer when we have
resolved all the outstanding questions, modified our computer
programs, and begun to calculate Prosecutor Part benefits.
If
you have questions about this letter, please contact our Office
of Client Services at (609) 292-7524.
enclosure
January
2002
TO: All
Systems Certifying Officers
FROM: William
H. Kale
Assistant Director, Client Services
SUBJECT: Recent
Benefits Legislation
Former
Acting Governor DiFrancesco signed several bills into law over
the past two months that effect employee benefits. This letter
provides chapter numbers, effective dates, programs effected,
and a brief summarization of those laws that impact a large number
of employers and members. All chapters listed are from the 2001
legislative session. You can obtain more detail on these new laws
from other documents in this package and from our Internet web
site (www.state.nj.us/treasury/pensions). Other benefit laws
recently enacted that effect only a single employer or a very
small number of members are not covered in this letter. Information
about them can be found on the Division Web site.
Chapter
253 - 11/15/01; PERS; allows PERS retirees to take employment
in a teaching position at an institution of higher education without
having to reenroll in the retirement system. An institution of
higher education includes all state colleges and universities
and county community colleges. There must be a 30-day break between
retirement and starting employment.
Chapter
278 - 12/27/01; PERS; changes the earnings limit that PERS retirees
can make before having to reenroll in the retirement system from
$10,000 to $15,000 per year. The new earnings limit is an aggregate
limit from all public employment in PERS-covered positions. Previously,
the limit only applied to earnings from a single public employer.
See the enclosed separate letter and Fact
Sheet # 21.
Chapter
341 - 1/5/02; PERS, TPAF; allows dual members of the PERS and
the TPAF with up to three years of concurrent dual membership
to merge their non-concurrent service credit into one system.
Chapter 6 had previously allowed the merger of non-concurrent
service if the concurrent period was less than two years. Prior
to that law, members were not allowed to merge service into one
system if concurrent dual membership existed.
Chapter
353 - 1/6/02 retroactive to 10/1/01; PERS, TPAF; increases retirement
benefit formulas by nine percent for Veteran, Ordinary Disability,
and Accidental Disability Retirements to 54.5%, 43.6%, and 72.7%,
respectively; increases retirement benefits of retirees/beneficiaries
of these type retirements by nine percent back to the effective
date of the law; makes PERS Veteran Retirement criteria identical
to those in the TPAF. A PERS member with veteran status now qualifies
for a Veteran Retirement with (1) 20 years of service and age
60, (2) 25 years of service and age 55, and (3) 35 years of service
and age 55. The Division will automatically review eligibility
for a veteran retirement of all PERS retirees who have established
veteran status and who retired on or after 10/1/01 on a service
or early retirement. PERS retirees eligible for veteran status,
but who did not establish that status, and who retired on or after
10/1/01 will have to self-identify if they believe they may now
be eligible for a veteran retirement under this law. The Division
will contact retirees affected by this law within the next several
weeks. Benefit increases will be made by May or June.
Chapter
355 - 1/6/02; TPAF, PERS; provides a one year exemption from employment
after retirement restrictions for certificated superintendents
and certificated administrators who are employed by the Commissioner
of Education or a school board in positions of critical need.
Exemptions can be extended for one additional year. Provides a
similar exemption for PERS retirees who obtain employment with
a Board of Education in positions of critical need. The exemption
does not pertain to employees who return to work within 120 days
with the same employer from which they retired. See the enclosed
Fact Sheet # 28.
Chapter
366 - 1/7/02; PERS; creates separate retirement benefits for prosecutors,
Criminal Justice Deputy Attorney Generals, and other designated
personnel within the PERS. The Division is just beginning review
of the details of this law; it may take several months to finalize
its implementation.
Chapter
367 - 1/8/02; SHBP; requires managed care plans in the SHBP to
pay in-network facilities at in-network rates for all services,
regardless of whether treating physician was in-network or out-of-network.
If
you have questions about these laws, check our Internet Web site,
e-mail us at Pensions_nj@state.nj.us, or call our Office of Client
Services at (609) 292-7524.
January
2002
TO: Certifying
Officers, Public Employees Retirement System
FROM: Janice
C. Curtin
Assistant Director of Pension Operations
SUBJECT: Change
to PERS Retiree Return to Employment Law
Acting
Governor DiFrancesco signed Chapter 278, P.L. 2001 into law on
December 31, 2001. This law changes the earnings limit for a retiree
of the Public Employees Retirement System (PERS) who is working
in a PERS-covered position for one or more public employers. The
new law requires suspension of the retirement and re-enrollment
in the retirement system if the PERS retiree will earn more
than $15,000 in a calendar year from all PERS-covered employment.
Previously, the earnings limit was $10,000 and it was not an aggregate
limit; rather, it was an earnings limit at any one employer.
You
should process PERS re-enrollments using the guidance provided
here.
Since
the new $15,000 earnings limit for PERS retirees is an aggregate
limit from all PERS covered employment, you may need to obtain
information from PERS retirees about other public employment at
the time you hire them, and each year thereafter, to determine
whether they should be re-enrolled in the PERS. We recommend
that you make this issue a checklist item with new hires. We also
recommend that you give PERS retirees you are considering hiring,
or have hired, a copy of the attached fact sheet that addresses
this issue so they are aware of the ramifications of work after
retirement in a PERS-covered position.
Chapter
278 only applies to public employment in positions that normally
lead to membership in the PERS. It does not apply to public employment
as a seasonal or intermittent employee or in positions covered
only by other pension systems.
Currently
Employed PERS Retirees
You
will have to ask currently employed PERS retirees that have not
been re-enrolled in the PERS if they have other public employment
in a PERS-covered position.
- Employees
with no other public employment in a PERS-covered position.
Regardless of the type of position (except hourly), enroll
the employee effective March 1st if the
contractual compensation will exceed $15,000 in 2002. If the
employee is an hourly employee, enroll the employee as soon
as the compensation exceeds $15,000 in a calendar year.
- Employees
with other public employment in a PERS-covered position. Regardless
of the type of position (except hourly), enroll the employee
effective March 1st if the compensation
from all PERS-covered positions in 2001 exceeded $15,000 and
is expected to remain at that level in 2002. If you are not
notified until after March 1st that the earnings
limit will be exceeded this year, enroll the employee immediately
upon notification. If the enrollment date has to be adjusted,
we will do so at the Division. If the PERS retiree is an hourly
employee, enroll the employee as soon as the compensation
you pay exceeds $15,000 in the calendar year or when the employee
notifies you that compensation from all PERS-covered positions
exceeds $15,000 in the calendar year.
Future
New Hires of PERS Retirees
You
should ask new hires that will not make $15,000 per year with
you if they have other public employment in a PERS-covered position.
- New
hires with no other public employment in a PERS-covered position.
Regardless of the type of position (except hourly), enroll
the new employee immediately if the contractual compensation
is more than $15,000 per year. If the new hire will be an
hourly employee, enroll the employee as soon as the compensation
exceeds $15,000 in a calendar year.
- New
hires with other public employment in a PERS-covered position.
Regardless of the type of position, enroll the employee
immediately if the compensation from you will exceed $15,000
per year or when the employee advises you that the combined
salaries from all PERS-covered employment will exceed $15,000
per year. If the new hire will be an hourly employee, enroll
the employee as soon as the compensation exceeds $15,000 in
a calendar year.
Suspension
of PERS Retirements
When
we receive an enrollment application for a PERS retiree, the Division
will suspend the retiree's current retirement allowance as of
the effective date of the new enrollment. The ramifications of
the suspension of a retirement are discussed in the attached Fact
Sheet. These should be specifically pointed out to any individual
considering a return to employment because they could have a severe
financial impact upon benefits payable to a member's beneficiary
in the case of the member's death while actively employed.
PERS
Retirees Already Reenrolled in the PERS
PERS
retirees who have returned to employment and reenrolled in the
retirement system must remain in the system as active employees
until they terminate all PERS-covered employment and retire
again. Falling below the Chapter 278 earnings limit does not automatically
cause the member to not have to continue to contribute to the
system.
Retiree
Notification of Chapter 278
The
Division of Pensions and Benefits will provide current PERS retirees
a very brief summary of the changes made by this law in their
February 1st pension check. We will tell those making over $15,000
a year in the aggregate from public employment in PERS-covered
positions to contact the Division or their employer to determine
how this law will affect them.
The
Division will notify future PERS retirees of the requirements
of Chapter 278 when we send them the letter of approval of their
retirement. We will also publish annual reminders of the employment
after retirement earnings limitations in the January issues of
our retiree newsletter, Pension-News.
Enforcement
Each
year, the Division compares retirement lists against Department
of Labor wage reporting records from public employers in New Jersey.
Therefore, PERS retirees who exceed the $15,000 earnings limit
without reenrolling in the retirement system will be identified.
Normally, this will result in a retroactive suspension of their
retirement and reenrollment into the PERS as of the date they
exceeded the earnings limit. It also will require repayment of
pension checks that should not have been issued and payment of
employee pension contributions back to the date of reenrollment.
We want to avoid this action because of the hardship and recrimination
it causes. We wish to ensure that retirees are aware of the impact
of working in public employment after retirement and that they
and their employers take appropriate action in a timely manner.
We appreciate your support in this effort.
The
requirements of Chapter 278 are covered in the Pension Processing
and Employer Responsibilities course offered to all employer representatives
working with the administration of pension benefits. Check our
Internet Web site at http://www.state.nj.us/treasury/pensions
for course schedules and enrollment information. If you have questions
about this new law, please E-mail us at pensions.nj@treas.state.nj.us
or call our Office of Client Services at (609) 292-7524.
January
2002
TO: State
Health Benefits Program Participating Employers
FROM: Florence
J. Sheppard
Assistant Director, State Health Benefits Program
SUBJECT: Health
Insurance Portability and Accountability Act (HIPAA) Update
The
federal Health Insurance Portability and Accountability Act (HIPAA)
of 1996 contained a number of provisions that affected the State
Health Benefits Program (SHBP) and its participating employers.
The SHBP implemented several actions to comply with the requirements
of HIPAA. These actions included:
- establishing
procedures to provide departing employees with certificates
of coverage for use with their next health carrier;
- amending
SHBP rules to comply with HIPAA coverage requirements;
- filing
exemptions for 1998, 1999, 2000, and 2001 to the provisions
of mental health parity in accordance with HIPAA procedures
for the Traditional Plan and NJ PLUS; and
- providing
employers with a required notice of compliance with HIPAA
to be distributed to all employees and their family members
upon enrollment.
Since
the mental health limitations currently in effect are detailed
in the law governing the SHBP, a change in plan design would require
legislative action. Therefore, the SHBP must file a mental health
parity exemption each plan year as long as a group plan is not
HIPAA compliant. The Commission has voted to file an exemption
for 2002. Therefore, mental health benefits will remain unchanged
through 2002 unless the statute governing the SHBP is amended.
Since HIPAA has a continuing notification requirement, a revised
compliance notice reflecting this exemption from federal mental
health parity requirements is attached for your use with newly
enrolling employees and family members. You should send it at
the same time you send the initial notice of COBRA rights.
A
brief refresher on HIPAA is also attached for your information.
If you have questions, contact Client Services at (609) 292-7524
or call the Employer's SHBP Hotline at (609) 292-5353 and leave
a message. A staff member will return your call on the next business
day.
Notice
to State Health Benefits Program Participants about
Compliance with Federal Health Insurance Requirements
This
notice is being provided to inform you about State Health Benefits
Program (SHBP) conformance with federal health insurance regulations.
The
Health Insurance Portability and Accountability Act (HIPAA), the
Mental Health Parity Act, and the Newborns' and Mothers' Health
Protection Act, federal laws enacted in 1996, contain a number
of provisions that have affected the SHBP since January 1998.
HIPAA required all group health plans to implement the following
provisions that are contained in the three federal laws:
#1
- Limit the use of pre-existing condition restrictions to a maximum
of twelve months;
#2
- Offer a special enrollment period to employees and dependents
who do not enroll in the plan when initially eligible because
they have other coverage, and who subsequently lose that coverage;
#3
- Eliminate discrimination against participants and beneficiaries
based on health status;
#4
- Provide a minimum level of hospital coverage for newborns and
mothers, generally 48 hours for a vaginal delivery and 96 hours
for a cesarean delivery; and
#5
- Provide parity in mental health benefits, that is, any dollar
limitations applied to mental health treatment cannot be lower
than those on medical and surgical benefits.
Since
January 1, 1998, all SHBP plans have met or exceeded
HIPAA requirements #1 through #4 above. SHBP HMOs also have complied
with requirement #5 above. The State Health Benefits Commission
filed exemptions from HIPAA compliance on mental health parity
(requirement #5) for 1998, 1999, 2000, and 2001 for the Traditional
Plan and NJ PLUS, as self-insured, non-federal governmental plans
are permitted to do. The Commission has voted to continue that
exemption through 2002. As a result, the mental health limits
for the Traditional Plan and NJ PLUS that are described in the
SHBP Summary Program
Description and the Traditional
Plan and NJ PLUS
Member Handbooks will remain in effect throughout 2002.
January
2002
TO:
Certifying Officers for the Public Employees' Retirement System,
Teachers' Pension and Annuity Fund, Police and Firemen's Retirement
System, and State Police Retirement System
FROM:
Janice C. Curtin
Assistant Director, Operations
SUBJECT:
Revised Loan Application
The
Loan Application
has been revised to incorporate changes to loan policies. The
major areas revised in this application are as follows:
- The overall
look of the application has changed. It is now in a booklet
format - a perforated and folded 11 x 17 sheet. The first
half describes step-by-step how to take a loan and fill out
the application. The other half is the detachable application
to complete and submit to the Division with the terms and
conditions stated on the reverse side.
- A notary's
signature is no longer required on the application.
- The application
promotes the use of the Automated Information System.
- Information
is included regarding the new Internal Revenue Service regulations
effective January 1, 2002 that result in changes to the Division
of Pensions and Benefits' loan policies. Internal Revenue
Section Code 72(p) requires that loan balances may not exceed
$50,000 and loan balances must be repaid within five years.
Please
recycle your supply of the former version of the Loan Application
and begin using the new version immediately.
We
have enclosed five copies of the new Loan
Application. When you require more, please call the designated
employer line for forms and publications, (609) 777-4357, which
is available 24 hours a day, 7 days a week. Or e-mail your request
to us at pensions.nj@treas.state.nj.us The loan application
can be downloaded from the Division of Pensions and Benefits'
homepage at: www.state.nj.us/treasury/pensions/../exhibits/pdf/cl0259.pdf
The Loan Application
can also be obtained by fax from the Division of Pensions and
Benefits' Benefit Information Library, 24 hours a day, 7 days
a week, by calling (609) 777-1931 from a touch-tone phone.
When prompted, enter fax selection number 9-0-0-0 and your
10-digit fax machine number.
May 2002
TO:
Certifying Officers, All Systems
Department Human Resource
Directors
FROM: William
H. Kale
Assistant
Director, Client Services
SUBJECT: New Employer
Pension and Benefits Administration Manual
The Division of Pensions
and Benefits is pleased to announce the release of the new Employers'
Pension and Benefits Administration Manual (EPBAM) for general
employer use.
The
new EPBAM can be accessed using your internet browser on the Division
of Pensions and Benefits' Web site. The URL (address) of the Division's
Home Page is: www.state.nj.us/treasury/pensions
Once you have accessed
the Home Page, click on the link for the manual.
The EPBAM is user friendly
and has been designed to meet the specific needs of those employers
who participate in the NJ State-administered benefit systems.
Information is organized according the particular pension and
other benefit administration tasks that employers regularly face.
The instructions don't just describe a benefit or a rule. They
tell you what you, the employer, are expected to do and how you
can best do it. In addition, forms and informational documents
are easily accessible for viewing and downloading.
Some EPBAM highlights:
Instructions on Common
Employee Related Tasks You Perform:
Pension enrollment -
Retirement processing - Making a purchase - Taking a loan - Withdrawing
from the pension systems - Death of an employee
Instructions on Common
Employer Tasks You Perform:
Financial reporting
- Remitting employee contributions - Certification of service
and final salary - State Health Benefits Forms and Instructions
Communications included
in the EPBAM:
Certifying Officer Memos
sent since 1999 - Legislative changes affecting benefits - Proposed
rule (Administrative Code) changes - All benefit publications
including member handbooks and fact sheets - Annual Reports
The greatest advantage
of this new EPBAM format is that the Division of Pensions and
Benefits is able to quickly update the manual whenever there are
changes in law and policy. This means that
- You needn't worry if you have
the most recent information on hand or the latest copy of
a handbook.
- You will always have the most
recent forms and publications on hand - they will always be
on-line;
- You will not need to keep large
numbers of forms on hand to meet employee needs. You can download
what you need when you need it. Within the near future, you
will be able to complete the forms on line and then download
them. Eventually, you will be able to electronically transmit
the forms to us, thereby eliminating all paper.
Another advantage of
the new format is the extensive use of links within the manual
that makes finding the specific information you need both quick
and easy. Quick refreshers are easy if you haven't done a particular
task in a while. Instructions on forms are complete and simple
to follow. Beginners or back-ups will also find it easy to use
the manual.
It is our hope that
you will find the EPBAM a useful tool that will allow you to accomplish
your regular benefit administration tasks easier, quicker, and
more accurately. Accessing the manual is free and available 24-hours
per day, seven days per week.
If you have questions
about the Employer Pensions and Benefits Administration Manual,
contact our Client Services counselors at (609) 292-7564. For
those employing locations without Internet access, the EPBAM is
available on CD-ROM. You may request a copy by contacting the
Employer Education Unit at the Division of Pensions and Benefits.
Mail:
Employer Education Unit
Division of Pensions and Benefits
PO Box 295
Trenton, NJ 08625-0295
Email:
pensions.nj@treas.state.nj.us
Phone: (609) 777-2111
May, 2002
TO: Certifying
Officers
Public
Employees' Retirement System
FROM: William
H. Kale
Assistant
Director, Client Services
SUBJECT: Proposed
Amendments to the New Jersey Administrative Code
The enactment of Public
Law 2001, Chapter 5, which revises the administrative rule-making
process, requires administrative agencies to further publicize
any proposed rule making. Proposed new rules and amendments are
currently published in The New Jersey Register, a bi-weekly
publication of the Office of Administrative Law, and posted to
www.state.nj.us/treasury/pensions,
the Division of Pensions and Benefits web page.
Therefore, the Division
of Pensions and Benefits would like to bring to your attention
the following proposed amendments to N.J.A.C. 17:2, the rules
of the Public Employees' Retirement System. If you wish to view
the text of any of these proposals, go to our web page and click
on proposed rule changes.
The proposed amendment
to N.J.A.C. 17:2-2.3, Ineligible persons, is necessary due to
the enactment of P.L. 2001, c.278. This law changed the earnings
limit for a retiree of the Public Employees' Retirement System
(PERS) who is working in a PERS covered position for one or more
public employers. It also requires cancellation of retirement
and re-enrollment if the PERS retiree earns more than $15,000
in a calendar year from all PERS covered employment. Previously,
the limit was $10,000 and it was not an aggregate limit; rather,
it was a limit at any one employer.
The proposed amendments
to N.J.A.C. 17:2-6.21 and 6.25 are necessary due to the enactment
of P.L. 2001, c.353 which provides that a PERS member with veteran
status now qualifies for the increased veteran's benefit if they
retire with 20 years of service at age 60 or older, or with 25
years of service and age 55 or older. P.L. 2001, c.133 also changed
the age requirement for veterans with 35 years of service to 55
or older. The proposed amendments to N.J.A.C. 17:2-6.21 and 6.25
would change the ages at which a member qualifies for benefits
to correspond with those recently enacted.
The proposed amendment
to N.J.A.C. 17:2-7.1 would allow for the transfer of service credit
from the Teachers' Pension and Annuity Fund (TPAF) to the PERS,
or PERS to TPAF for nonconcurrent service if the period of concurrent
service is less than three years. Previously, nonconcurrent service
could not be transferred into the new retirement system if a member
of TPAF at the time of enrollment in PERS unless the member had
fewer than two years of concurrent service. This amendment is
necessary due to the enactment of P.L. 2001, c.341.
The proposed amendment
to N.J.A.C. 17:2-4.9, Eligibility for Loan, would clarify what
the member's maximum outstanding loan balance can be. New Internal
Revenue Service regulations, effective January 1, 2002, have resulted
in changes to the Division's loan policies. Specifically, 26 U.S.C.
§ 72(p) requires that loan balances not exceed $50,000.
The proposed amendment
to N.J.A.C. 17:2-6.4, Outstanding Loan, would delete the option
to pay an outstanding loan balance by having the member's entire
pension check withheld until the loan was satisfied. P.L. 1999,
c.132 changed the repayment method of outstanding loans at retirement
and removed the provision that the Division of Pensions and Benefits
could withhold the entire retirement allowance until the loan
was satisfied. The proposed amendment would, therefore, also remove
the provision that allows the member to elect that the entire
retirement check be withheld until the loan is satisfied.
P.L. 2001, c.120 (N.J.S.A.
43:15A-50) provides for the creation of a fifth option which members
may select to receive their retirement benefits. This fifth option
provides four additional payment options that provide a lifetime
pension to a beneficiary upon the death of a member. These selections
under the new, fifth, option will be referred to as Options A,
B, C and D. Therefore, the Board proposes to amend N.J.A.C. 17:2-6.1,
Applications, by adding a new subsection to define these new options.
The Board proposes to
amend N.J.A.C. 17:3-6.10, Involuntary Disability Application,
by changing "maximum retirement allowance (without option)" to
"the maximum retirement option." The Division, until recently,
did not classify the maximum retirement allowance as an option.
The amendment at N.J.A.C. 17:2-6.17, Approved Allowance, would
also replace the reference to "allowance (maximum or option)"
because as stated above, the maximum allowance is now called "the
maximum retirement option"; therefore, it does not need to be
distinguished by the use of a parenthetical phrase.
If you have any comments
on any of these proposed amendments, please submit them within
60 days of the receipt of this memorandum to Mindy Smith-Sopko,
Administrative Practice Officer, at the Division's address.
BACK
TO TOP
BACK
TO HOME PAGE