of New Employees
The following description of the
Supplemental Annuity Collective Trust Of New Jersey provides only
general information. For a complete description, please refer
to Sections 107-124 of Chapter 18A in Title 52 of the New Jersey
Statutes Annotated and the New Jersey Administrative Code Sections
17:8-1.1 through 17:8-4.4.
See also Fact
Sheet #35, The Supplemental Annuity Collective Trust Fund
of New Jersey.
The Supplemental Annuity Collective
Trust - Tax-Sheltered Plan (SACT TSA) allows an employee to take
advantage of federal tax laws and defer a portion of annual income
from federal taxes to purchase a tax-sheltered annuity. By participating
in this plan, members take advantage of an investment opportunity
that is operated on the concept of "dollar-averaging."
In this way, an individual can invest small sums of money and
gain diversification over time as well as among stocks.
Employees performing services for
qualified New Jersey educational institutions enter into agreements
whereby the employer purchases annuities from the Trust on their
behalf. These annuities for tax-sheltered or tax-deferred treatment
are permitted under Section 403(b) of the Internal Revenue Code,