Contributions
All money,
from both employee and employer contributions, is remitted directly
to the investment carrier with whom the employee has a contract.
The employer's
obligation to the Division of Pensions and Benefits is to complete
a monthly report, the Employer
Contribution Report, to be submitted to the Division by
the 10th of the following month.
Group
Life Insurance
All group
life insurance premiums are paid by the State of New Jersey through
the Office of the Defined Contribution Plan Unit at the Division
of Pensions and Benefits. Note: The Employer Contribution
Report provides the basis for payment of any life insurance
benefits payable upon the death of a member. Please ensure
that your report is accurate and timely.
The Employer
Contribution Report form is available for download by
clicking here.
Instructions
Month
and Year of Report, Location Name, Location Number
Be sure the
identifying information requested (month/year, location name,
location number) at the top of the form is complete and accurate.
Summary
of Participants
"Total
Normal Base Salaries" represents base salaries that members
received in the current month.
"Total Back Deductions
Salaries" represents the base salaries that members
have received from the date of enrollment eligibility or intrafund
transfer to the date salaries were reported as part of "Total
Normal Base Salaries."
"Total
Base Salaries" equals the sum
of "Total Normal Base Salaries" and "Total Back
Deductions Salaries."
"Total
Number of Participants" represents the total number
of participants that are reported to the various ABP carriers
for the current salary month.
Additions
and Salary Increases to Report
In this section,
the institution must report changes that increase base salary
and/or the number of participants. Such changes would include
new employees, members returning from leave of absence, and members
returning to employment. Changes in base salary should also
be reported in this section.
An Alternate
Benefit Program Enrollment Application must be processed
by the Division of Pensions and Benefits before the institution
can add the employee to the Employer Contribution Report.
The certification is the Division's confirmation that an enrollment
application was processed. The institution must therefore
wait for a certification, and then add new employees to the Employer
Contribution Report when the certifications are received.
Under the
appropriate headings the institution must:
- Identify
the new employee by name and membership
number.
- Indicate
the employee's vested status with a "D"
for Delayed Vested or an "A" for Active.
- Indicate
whether the employee is categorized as "AC"
for Academic or "NA" for Non-Academic.
- Report
the new employee's Normal Base Salary for the current
month. (Do not report Back Deductions Salary in this
section.)
- Provide
a brief explanation as to why the employee is being added
to the Report, such as new enrollment, intrafund transfer, return
from leave of absence or return to employment. Be sure
to include the corresponding effective date.
- ABP members
returning to employment within two years of their last
date of contribution, who were not reported by any other institution
covered by the Alternate Benefit Program subsequent to their
return, should be added to the Report immediately. Do not
file an enrollment application or wait for a certification from
the Division of Pensions and Benefits to secure the 8% employer
contributions.
- Continue
to report the net change in base salaries resulting from
increases that take effect during the current salary month.
Identify the members involved and provide an appropriate explanation
for the change in the current month's salary.
- For retroactive
salary increases, show the retroactive salary portion
of the salary increase as a separate amount.
- The "Addition
Total" for "Base Salaries" is the total of
the base salary adjustments that increased the institution's
base wages for the current salary month.
- The "Addition
Totals" for the "Number of Participants"
reflect the total number of employees that were added to the
report.
Deletions
and Salary Decreases to Report
In this section,
the institution must report changes that decrease base salary.
Decreases would result from members who retire, resign, terminate,
die or take a leave of absence. Also, report members whose
base salary is contractually decreased. Non-recurring salary
changes, such as a retroactive raise that was reported on the
last month's Report, should be reported as a deletion item.
Under the
appropriate headings, the institution must:
- Identify
members who are being removed from payroll because of retirement,
resignation, termination, death, or leave of absence by name
and membership number.
- Report
the base salary decrease for each member removed from
the roll.
- Indicate
the employee's vested status, with a "D"
for Delayed Vested or an "A" for Active.
- Indicate
whether the employee is categorized as "AC"
for Academic or "NA" for Non-Academic.
- Provide
a brief explanation as to why the employee is being deleted
from the report. This would commonly include members who
retire, resign, terminate, die or take a leave of absence.
Include the effective date the member was removed from payroll.
- The "Deletion
Total" for "Base Salaries" is the total of
the base salary adjustments that decreased the institution's
base wages for the current salary month.
- The "Deletion
Totals" for the "Number of Participants"
reflect the total number of employees that were subtracted
from the report.
Addition
Totals and Deletion Totals
The "Total
Normal Base Salaries" in the "Summary of Participants"
section must equal the "Total Normal Base Salaries"
that were reported for the previous salary month plus the
total of the base salary changes reported the for the current
month under the section "Additions and Salary Increases
to Report", less the total of the base salary changes
reported for the current salary month under the section "Deletions
and Salary Decreases to Report."
The "Total
Number of Participants" under the "Summary of Participants"
section must equal the total number of participants that were
reported for the previous month plus the number of employees added
on the current month's Report under the section "Additions
and Salary Increases to Report", less the total number of
members that were deleted from the current Report under the section
"Deletions and Salary Decreases to Report."
Mandatory
Back Deduction Salary
In this section
the institution must report the base salary that the members received
from the date of eligible enrollment or intrafund transfer to
the date salaries were reported as part of "Total Normal
Base Salaries." The salary must be reported
in lump sum or in accordance with the salary on which you calculate
the periodic back deduction schedule.
- Autonomous
employers have the option of taking back deductions through
payroll deductions or by deducting a lump sum payment from the
member.
- Members
paid by Centralized Payroll Unit will have regular deductions
taken each biweekly pay period until the back deduction amount
is satisfied.
Under
the appropriate headings, the institution must:
- Identify
the employee by name and membership
number.
- Report
the base salary on which back deduction contributions
were made and sent to the ABP carrier(s) for the current salary
month.
- Indicate
the employee's vested status, with a "D"
for Delayed V ested or an "A" for Active.
- Indicate
whether the employee is categorized as "AC"
for Academic or "NA" for Non-Academic.
- Be sure
to explain any information provided in this section.
- The total
"Mandatory Back Deduction Salary" must be inserted
in the "Summary of Participants" section on
page 1 of the Report. This salary is added to the "Total
Normal Base Salaries" to derive "Total Base
Salaries."
The 8% employer's
contribution is based on the sum of the "Total
Normal Base Salaries" and the "Total Back Deductions
Salaries."
Voluntary
Additional Contributions -- Elective 403(b)
There is a
voluntary 403(b) component of ABP. Members may make additional
contributions on a tax-deferred basis. (See the Enrollments
Manual: ABP for further details.)
These contributions
are not
reported on the "Employer
Contribution Report" because they are not mandatory
pension deductions, there are no employer contributions to be
made as a result of Voluntary Additional Contributions, nor do
they have any impact on Group Life Insurance benefits.
Delayed
Vesting Participants Terminating in the First Year of Participation
The institution
must report all of the requested information pertaining to former
employees who terminate during their first year of participation.
The information
for the former employee should be reported in the same month that
the institution receives credit for the contributions from the
carrier(s). The amount to be reported would be the net value
of the employer's contributions, which equates to 8% of the member's
reported base salary, plus or minus any gains or losses from investments
by the carrier. The gross amount of employer reimbursement
for that month will be reduced by the amount of contributions
credited by the carrier.
Under the
appropriate headings, the institution must:
- Identify
the employee by name and membership
number.
- Report
the base salary on which contributions were made and
sent to the ABP carrier(s) for the current salary month.
- Indicate
the employee's vested status, with a "D"
for Delayed Vested or an "A" for Active.
- Indicate
whether the employee is categorized as "AC"
for Academic or "NA" for Non-Academic.
- Be sure
to explain any information provided in this section.
- The total
"Delayed Vesting Participants Terminating in the First
Year of Participation" must be inserted in the "Summary
of Participants" section on page 1 of the Report.
This salary is factored into the "Total Normal Base
Salaries" to derive "Total Base Salaries."
In addition,
a copy of the statement that was received from the carrier for
the credited contributions should be attached to the Report.
It is important to note that the terminated employee must be included
in the "Deletions and Salary Decreases to Report"
section of the report for salary month in which the employee terminates
and payroll deductions cease. This may or may not be the
month when you receive the credited contributions from the carrier.
The two sections are independent of each other.
The Certifying
Officer must sign the report to certify its accuracy.
Please direct
questions concerning the Employer Contribution Report to Jim Jefferson
at (609) 292-2914.