Employers' Pensions and Benefits Administration Manual (EPBAM)
   

 

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Supplemental Annuity Collective Trust
of New Jersey (SACT)
Tax-Sheltered
(Pretax) Plan — Orientation

Supplemental Annuity Collective Trust (SACT) Member Handbook



 
Major Areas of Discussion About SACT Tax-Sheltered
 
 

Eligibility 

 
 
Orientation (present page)
 
 

Enrollment

 
 

Changes 

 
 

Distribution

 


Orientation 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.

General Information

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, as amended.


 

 

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Last Updated: August 6, 2003