JUDICIAL
RETIREMENT SYSTEM
MEMBER HANDBOOK
as
of November 1, 1999
THE RETIREMENT SYSTEM
The Judicial Retirement System (JRS) was established on June 1, 1973 after the repeal of the laws that had provided benefits to certain members of the judiciary and their beneficiaries since 1948. For administrative purposes, the State House Commission acts as the Board of Trustees. By law, the Director of the Division of Pensions and Benefits serves as secretary of the Commission.
As a member of JRS, you are part of a diverse group of individuals with different backgrounds, lifestyles and goals. Yet most members hold family, good health and financial security as important factors in their lives. The retirement system was designed with these similarities as well as your individual differences in mind. The purpose of this handbook is to provide you with information about the retirement system to assist you in making decisions concerning your future and your family's future. If you still have questions concerning the retirement system benefits. For information on contacting the Division of Pensions and Benefits.
MEMBERSHIP
ELIGIBILITY CRITERIA
If you are a member of the State judiciary, you are required to join the JRS as a condition of employment. The system covers the Chief Justice and Associate Justices of the State Supreme Court, as well as all judges of the Superior Court and Tax Court of the State of New Jersey.
ENROLLMENT
ENROLLMENT/CERTIFICATION OF PAYROLL DEDUCTIONS
Both you and your employer must complete the enrollment application for you to enroll in the retirement system. Your employer will send the completed application to the Division of Pensions and Benefits for processing. When processing is complete, you and your employer will receive a Certification of Payroll Deductions showing the date deductions will begin, your rate of contribution and any back deductions due.
It is important to keep the Certification of Payroll Deductions on file with your other records so that you have a record of your enrollment in the retirement system.
PROOF OF AGE
All members of the JRS must provide proof of their age at enrollment. Acceptable evidence of your age includes copies of:
— your birth or baptismal certificate;
— your passport;
— naturalization or immigration papers; or
— certain other records including military records, census records, school or business records, age recorded on marriage licenses and insurance or children's birth records.
You should attach your proof of age to your enrollment application.
CONTRIBUTION RATE
You and the State share in the cost of benefits provided by the JRS. If as a judge you had enrolled in the JRS prior to January 1, 1996 your contributions are equal to 3% of the difference between your current salary and the salary for that judicial position as it existed on January 18, 1982. Judicial members enrolled on or after January 1, 1996 shall contribute 3% of their total base salary to the pension system.
BENEFITS OF OTHER SYSTEMS
If you are a member of another New Jersey State-administered retirement system at the time you become a judge, you can:
— elect a refund of all your contributions to the prior retirement system, or
— transfer your membership, provided your account has not expired, by depositing all contributions to the prior retirement system in JRS, by filing an Application for Inter-Fund Transfer form, or
— if eligible, either receive or defer retirement benefits in the first system.
It is important for you to know that you can, while serving as a judge, receive a portion of the benefits you have earned under another retirement system. However, if you later elect to receive benefits from JRS, you forfeit your right to all other retirement benefits from a prior system. (Of course, you are still entitled to a refund of contributions to a prior system, reduced by the value of any benefits you have already received.)
If you die in active service while receiving benefits from another system and before electing benefits under JRS, your beneficiary is eligible to receive a refund of prior system contributions (minus the value of any benefits you have already received).
Information regarding these options will be explained in writing at the time of your enrollment in JRS.
SERVICE CREDIT
Since retirement benefits are based in part on accumulated service credit, it is important you receive the appropriate amount of credit for the amount of time you work.
You receive judicial service credit (one pay period for each pay period a full pension contribution is made).
You receive non-judicial service credit for any service (other than prior judicial service ) which you are able to transfer from another State-administered retirement system into JRS at the time of enrollment in JRS.
You may be eligible to purchase previous service rendered as a public employee of the State of New Jersey. This service is considered non-judicial service credit in JRS.
PURCHASING SERVICE CREDIT
Since your retirement allowance is based in part on the amount of service credited to your account at the time of retirement, it may be beneficial for you to purchase additional service credit if you are eligible to do so. Only active contributing members are permitted to purchase service credit. (In no case can you receive more than one year of service credit during any 12-month calendar or fiscal year.)
TYPES OF SERVICE ELIGIBLE FOR PURCHASE
1) FORMER MEMBERSHIP IN A NEW JERSEY STATE-ADMINISTERED RETIREMENT SYSTEM may be purchased at any time during your current membership in the JRS.
Partial purchase is permitted.
2) PREVIOUS SERVICE RENDERED IN AN OFFICE, POSITION OR EMPLOYMENT OF THE STATE OF NEW JERSEY, or of a county, municipality, board of education, or public agency of the State of New Jersey, provided that an annual salary or compensation of at least $500 was received.
Partial purchase is permitted.
COST AND PROCEDURES FOR PURCHASING SERVICE CREDIT
A member may obtain a quotation of the cost for purchasing additional service credit by writing or contacting the Judicial Retirement System, Division of Pensions and Benefits, PO Box 295, Trenton, New Jersey 08625-0295. It is the member's responsibility to obtain certification of the employment from the former employer for the service credit being purchased if it is not on file with the Division of Pensions and Benefits. No quotations of cost will be calculated until verification of employment is received by the Division of Pensions and Benefits.
The cost of a purchase is based on your nearest age at the time the Division receives all the appropriate documentation and your current annual salary. The cost of the purchase may increase with an increase in your age and/or salary.
You may purchase service credit _
— immediately in one lump sum;
— by having extra payroll deductions withheld from your pay. The minimum deduction must be equal to at least one-half of your full rate of pension contribution over a maximum of 10 years and includes interest of 8.75%; or
— by paying a single down payment and having the remainder amortized into payroll deductions.
The cost of purchasing service is borne by both you and the participating employers with the important exceptions of local, county or municipal service. If purchasing these types of service credit, you must pay both the employee and employer share of the cost.
After the processing of your request by the Division of Pensions and Benefits to purchase service credit, you will receive a quotation of the cost of the purchase. You must respond to the Division of Pensions and Benefits within the specified time period.
Once you have given authorization to purchase service credit to the Division of Pensions and Benefits, you cannot revoke your request or receive a refund.
When you agree to purchase a certain amount of service credit, the Division of Pensions and Benefits assumes that you will complete the purchase and credits your account with the entire amount of service even if you are paying the cost through payroll deductions. If you retire before completing the purchase, you will receive prorated credit for the amount of service actually purchased or you can pay the balance and receive full credit. Any estimates of retirement allowance you receive, including your Personal Benefits Statement, are based on the full amount of credit you agreed to purchase.
NEW JERSEY STATE EMPLOYEES' DEFERRED COMPENSATION PLAN
Since you are a State employee, you may be eligible for the New Jersey State Employees' Deferred Compensation Plan. Contributions to the plan are not subject to federal income tax until you take a distribution from the plan, either at retirement or termination before retirement. The main benefits of the plan are to help you save on federal income tax now and to supplement your retirement income through investments.
Informational booklets on investment options and other pertinent information are available by writing to: Division of Pensions and Benefits, New Jersey State Employees' Deferred Compensation Plan, PO Box 295, Trenton, New Jersey 08625-0295.
SUPPLEMENTAL ANNUITY COLLECTIVE TRUST
The Supplemental Annuity Collective Trust is comprised of two plans. The Supplemental Annuity-Regular Plan is available to all actively contributing members of a New Jersey State-administered retirement system. Contributions to this plan are made after deductions for federal income tax. The main benefit of this plan is to help supplement your retirement income through investments.
Informational brochures and enrollment packets are available by writing to: Division of Pensions and Benefits, Supplemental Annuity Collective Trust, PO Box 295, Trenton, New Jersey 08625-0295.
LOANS
Active contributing members are eligible to borrow up to one-half of their pension contributions twice per calendar year. You may obtain a loan from the retirement system by filing a properly completed and notarized Loan Application with the Division of Pension and Benefits. This form is available from your employer.
Loans are governed by the following conditions:
The maximum amount you may pay toward the repayment of your loan is 25% of base salary.
RETIREMENT
BEFORE YOU RETIRE
You should inquire about retirement at least six months before your retirement date. (See page 22 for a handy retirement check list.) This will give you enough time to review your benefits.
You may apply for an estimate of your retirement benefits by submitting a written request to the Division of Pensions and Benefits. This will provide you with the retirement allowances available and your lump-sum death benefits. Retirement estimates are kept confidential.
APPLYING FOR RETIREMENT
It is your responsibility to file an Application for Retirement Allowance with the Division of Pensions and Benefits. All retirements are effective on the first of a month. You are permitted to submit your Application for Retirement Allowance as late as the last business day prior to your retirement date, but five months advance filing is recommended. Under no circumstances can a retirement become effective prior to the date the application is received by the Division of Pensions and Benefits. Processing time varies and cannot begin until the Division has received all the necessary information and forms from both you and your employer.
If you have not furnished proof of your age with the Division, you must do so now (see page 2 for acceptable proofs of age). Proof of age for your beneficiary is required. If your beneficiary's birth evidence is in her maiden name, identifying documentation is also necessary (marriage certificate). Please attach copies of your proofs of age to your retirement application.
All State employees are eligible for employer paid New Jersey State Health Benefits coverage in retirement if the member retires on a benefit based on 25 or more years of service credit or on a disability retirement. You must be eligible for coverage in the program at the time of retirement. You will receive notification of this opportunity from the Division of Pensions and Benefits.
PURCHASE ARREARS/SHORTAGES
When you apply for a purchase of service credit, the Division assumes that the obligation will be paid before your retirement and your account is credited with the full amount of service you are purchasing. If this obligation has not been paid when you retire, the balance of the service credit which has not been paid for will be subtracted from your total years and months of service.
You will receive a letter stating the amount you still owe on your purchase several weeks after your retirement application is received by the Division of Pensions and Benefits (this may be delayed if the Certification of Service and Final Salary from your employer is late). At that time, you must inform the Division, in writing, how you wish to settle your obligation.
A shortage in your pension account can be caused for a variety of reasons. You will be notified by the Division of Pensions and Benefits indicating the amount and the time period of the shortage. You are responsible for payment of any shortages at retirement.
No retirement will be processed or paid until all obligations have been paid.
RETIREMENT CHECKS/CHANGE OF ADDRESS/DIRECT DEPOSIT
Your first retirement check cannot be mailed earlier than 30 days following your retirement date. This is when your retirement becomes 'due and payable.' If approval of your retirement is delayed, your first check will be retroactive to the date of your retirement.
If you die within this 30-day period, certain options must be considered by your beneficiaries. Beneficiaries should contact the Division of Pensions and Benefits if this happens and request information concerning filing a death claim.
All checks drawn for a full monthly allowance are released on the first of the month to cover the allowance for the previous month. For example, your check for the month of September will be dated October 1st.
Although retirement checks can be forwarded to a new address, it is important that you inform the Division of Pensions and Benefits of a new address. When informing the Division of Pensions and Benefits of a new address, be sure to include your new address and your retirement number or social security number. You can change your address with the Division of Pensions and Benefits by calling (609) 292-MOVE.
Direct deposit of retirement checks is also available and recommended. Shortly after your retirement date you will receive a Direct Deposit form from the Division of Pensions and Benefits. If you wish to have your retirement checks directly deposited, send the completed form to the Division of Pensions and Benefits (you will still receive a monthly statement of allowance and dedcutions). Please allow approximately 90 days for the direct deposit to begin. Direct Deposit will prevent your retirement checks from being lost or stolen.
FEDERAL AND STATE INCOME TAX AFTER RETIREMENT
Each retirement check is accompanied by a Statement of Allowances and Deductions. These check stubs should be kept with your income tax records. The Division of Pensions and Benefits also issues an annual 1099R which reflects the total retirement allowance paid during the preceding calendar year.
Shortly after your retirement date, you will receive W-4P forms for the withholding of Federal and New Jersey State income tax from your retirement check. The Division is obligated to withhold Federal income tax unless you file a W-4P instructing us not to do so. New Jersey State income tax withholding is voluntary and none will be withheld unless you instruct us to do so. Please keep in mind that if you live outside New Jersey, your retirement benefits are not subject to New Jersey State income tax. Any withholding must be requested on a Federal and/or State W-4P form. If you are already receiving retirement checks, you can obtain a W-4P form by calling or writing to the Division of Pensions and Benefits.
Any questions you have about your Federal or State income tax should be directed to the Internal Revenue Service at (800) TAX-1040 or the New Jersey Division of Taxation at (800) 323-4400. The Division of Pensions and Benefits cannot provide tax advice.
TYPES OF RETIREMENT
The JRS offers a number of possible retirement types to help meet your individual needs. Keep in mind that retirement is mandatory at age 70.
SERVICE RETIREMENT
If you retire at:
— age 70 with 10 years of judicial service, or
— age 65 with 15 years of judicial service, or
— age 60 with 20 years of judicial service,
your annual benefit is calculated at 75% x final salary.
Judicial service means all your years as a judge under the Judicial Retirement System.
If you retire at:
— age 65 with five consecutive years of judicial service and 15 years in the aggregate of public service, or
— age 60 with five consecutive years of judicial service and 20 years in the aggregate of public service,
your annual benefit is calculated at 50% x final salary.
In the aggregate of public service means your total years of both judicial and non-judicial service credit in the JRS.
If you retire at age 60 with five consecutive years of judicial service and 15 years in the aggregate of public service, your annual benefit is calculated as follows:
2% x final salary x number of years of service (up to 25)
plus
1% x final salary x number of years of service over 25
If you retire at age 60, your benefit is calculated as follows:
2% x final salary x number of years of judicial service (up to 25)
plus
1% x final salary x number of years of judicial service over 25
EARLY RETIREMENT
If you wish, you can retire before age 60 and receive a reduced benefit, provided you have:
— five consecutive years of judicial service, and
— 25 years in the aggregate of public service.
In that case, your benefit will be calculated as follows:
2% x final salary x number of years of service, up to 25
plus
1% x final salary x number of years of service over 25, and then actuarially reduced to cover the cost of paying your benefit over a longer period of time.
DEFERRED RETIREMENT
Even if you leave the JRS before you are eligible for service or early retirement and you are under age 60, you may still have a right to a plan benefit. This is known as deferred retirement. You are eligible for a deferred benefit if you leave after completing:
— five consecutive years of judicial service, and
— 10 years in the aggregate of public service.
Your deferred benefit is calculated in the same way as early retirement, taking into account your salary and service when you leave. Your deferred benefit is not reduced since it is not payable until age 60.
If you die between the time you terminate employment and the time your deferred retirement takes effect, there is no group life insurance coverage or survivor benefits payable. All that would be payable to a named beneficiary would be a return of your pension contributions to JRS plus interest. The named beneficiary on your Deferred Retirement application does not take effect until the deferred retirement becomes effective.
Those electing Deferred Retirement cannot transfer their active health care coverage to one of the retired group of the State Health Benefits Program. Those electing Deferred Retirement may be eligible for continuation of State Health Benefits coverage under the federal legislation called "COBRA' for up to 18 months. If the actual retirement commences while the 18 months of COBRA coverage is in effect, the retiree may then transfer from the COBRA coverage and continue the State Health Benefits coverage into retirement. If the 18 months of COBRA coverage ends before the retirement commences, the member will not be entitled to maintain health coverage through the New Jersey State Health Benefits Program. Participants should contact their personnel representative to see if they qualify for COBRA continuation.
At any time before your Deferred Retirement becomes effective, you may change your mind and apply for withdrawal instead. Once you cancel your Deferred Retirement and withdraw your contributions, all the rights and privileges of membership end.
DISABILITY RETIREMENT
For your added security, the plan provides an income if you become disabled before qualifying for service, early or deferred retirement.
You are considered disabled if:
— you are physically or otherwise incapacitated for full and efficient service to the State in a judicial capacity as determined by three physicians appointed by the Governor and
— your disability is certified by the Supreme Court and approved by the Governor.
In that case, your disability benefit will be calculated at 75% x final salary.
COST-OF-LIVING ADJUSTMENT
The Pension Adjustment Program provides cost-of-living adjustments to you and your eligible survivors who receive a monthly retirement allowance from the State-administered retirement systems. The first adjustment is granted in the 25th month after your retirement. Subsequent cost-of-living adjustments are computed annually and the adjustment is reflected in the February 1st check (representing the month of January).
Your rate of increase is equal to 60 percent of the percentage of change between the average Consumer Price Index (CPI) for the calendar year in which you retired and the average CPI for the 12-month period ending August 31st immediately preceding the year when the adjustment is payable.
SOCIAL SECURITY
Your pension is not reduced by any social security benefits you may receive.
EMPLOYMENT AFTER RETIREMENT
Working for private industry or the federal government will not affect your retirement benefits. Most public employees will not resume public employment in this state after retirement. For those who do, there are several areas of concern:
— No member shall, while receiving a pension or retirement allowance, engage in the practice of law before any of the courts of this State.
— Any retired justice of the Supreme Court or any retired judge of the Superior court may, with his consent, be recalled by the Supreme Court for temporary service in the Supreme Court or elsewhere within the judicial system. In this case, the justice or judge is paid a per diem allowance fixed by the Supreme Court. In no event shall he receive a salary which, when combined with his pension or retirement allowance, exceeds the current salary of a justice or judge of the court from which he retired. In addition, reimbursement will be made by the State for reasonable expenses incurred by the justice or judge in connection with his assignments.
— Returning to work in a position covered by any other State-administered retirement system. In this case, your retirement allowance continues and you can receive salary but cannot become a member of that system with the exception of certain eligible circumstances under deferred retirement.
— Returning to public employment in New Jersey may affect your eligibility to continue coverage under the State Health Benefits Program. Contact the Division of Pensions and Benefits for information.
DEATH BENEFITS
The JRS provides survivor benefits to protect your family from the serious financial consequences that might result from the loss of your earnings.
In the event of your death, benefits include a lump sum amount, payable through a non-contributory group life insurance policy, as well as an annual survivor benefit for an eligible spouse and any dependent children.
Life insurance is provided under policies issued by the Prudential Insurance Company of America, Inc. You will receive an individual certificate from the Division of Pensions and Benefits which you should keep with your important papers.
CHOOSING A BENEFICIARY
Your enrollment application contains a section in which you name beneficiaries for both your group life insurance benefits and return of your contributions. You may name any person, organization, your estate or trust as beneficiary. This designation may be changed by you at any time during your membership by filing the proper forms. At retirement, you will be asked to nominate beneficiaries on your Application for Retirement Allowance.
All designations of beneficiary must be made on forms provided by the Division of Pensions and Benefits and can be obtained from your employer. Designations cannot be accepted over the telephone or through a letter. This is for your protection. All beneficiary forms require notarization and must be filed in duplicate.
WHAT THE DEATH BENEFIT PAYS
The amount of the group life insurance benefit paid to your beneficiaries at your death depends on your status when you die, as shown in the chart.
In addition, if you die in active service, an annual survivor benefit is payable to your spouse * and/or dependent children as follows:
— 25 percent of final salary to your spouse
plus
— 10 percent of final salary to one dependent child; or
— 15 percent of final salary to two or more dependent children (divided evenly).
If you do not have a spouse, or your spouse* dies or remarries, benefits are paid to your dependent children as follows:
— 15 percent of final salary to one child; or
— 20 percent of final salary to two children (divided evenly); or
— 30 percent of final salary to three or more dependent children (divided evenly).
* Except in the case of accidental death, your spouse must be married to you for at least four years at the time of your death.
If you do not have a surviving spouse or dependent children, benefits are paid to your dependent parents as follows:
— 20 percent of final salary to one dependent parent; or
— 30 percent of final salary to two dependent parents.
If you die after retirement the same annual survivor benefits payable if you die in active service are payable after retirement, except that there are no survivor benefits payable to dependent parents.
PAYMENT OF GROUP LIFE INSURANCE
Active members can complete a Designation of Beneficiary form to designate how their life insurance benefits will be paid (group life insurance for retirees must be paid in a lump sum). If you choose Lump Sum, your beneficiary can pick another payment option for your active death benefits. The options are:
— LUMP SUM.
— ANNUITY CERTAIN is equal installments over a period of years. If your beneficiary dies before all the payments have been made, the remaining monies will be paid in a lump sum to your beneficiary's designated beneficiary.
— LIFE ANNUITY is paid monthly to your beneficiary for life. Payment continues even if your beneficiary outlives the actual amount of the benefits. For this reason, the value of the annuity is based on the amount payable and the life expectancy (age) of the beneficiary. Payments cease at the beneficiary's death.
— OTHER POSSIBILITIES include options provided by the insurance company (Prudential) to its ordinary life policyholders.
These death benefits cannot be paid until all the necessary information and forms have been received by the Division of Pensions and Benefits. To report a death, contact the Judicial Retirement System at (609) 292-5175.
GROUP LIFE INSURANCE AND LEAVE OF ABSENCE
Your group life insurance coverage will continue in full force for an official leave of absence without pay under the following conditions:
_ up to two years while on an official leave of absence for personal illness.
_ up to 93 days while on official leave for any reason other than illness.
CONVERSION OF GROUP LIFE INSURANCE
— TERMINATION OR LEAVE OF ABSENCE: _ If you terminate employment before retirement or your insured period during a leave of absence expires, you will continue to be covered for the following 31 days. During that period you may convert your group life insurance, without medical examination, to an individual policy with Prudential Insurance Company not to exceed the dollar amount of coverage you had as an active member (see example). You may select any type of individual policy customarily offered by Prudential except term life insurance or a policy containing disability benefits. The individual policy will be effective at the end of the 31-day period. The premiums will be the same as you would pay if you were applying for a private policy at your current age.
Example: If your final salary at the time of your termination or leave of absence was $100,000, your death benefit would be $150,000 (1-1/2 x final salary). If you decide to convert your coverage, you could purchase up to $150,000 worth of life insurance.
Requests for an individual policy should be submitted directly to your local Prudential office together with the group life insurance policy number (G14800) and your individual certificate number (your JRS membership number.) If you do not convert your group life insurance by the end of the 31-day period, your coverage will end.
— RETIREMENT _ When you retire and your group life insurance is in force at retirement, it will be reduced to one fourth of your final salary. However, within the 31-day period following your retirement date you have the privilege of conversion as explained in the paragraph above with respect to the amount by which your group life insurance has been reduced.
Example: If your final salary at retirement was $100,000 your death benefit as an active member would be $150,000 (1 1/2 x final salary). Once you retire that benefit would be reduced to $25,000 (1/4 x final salary) providing you qualify for insurance coverage in retirement. If you decide to convert your coverage, you could purchase up to $125,000 ($150,000 - $25,000) worth of coverage.
Requests for an individual policy should be submitted directly to your local Prudential office together with the group life insurance policy number (G14800) and your individual certificate number (your JRS membership number.) If you do not convert your group life insurance by the end of the 31-day period, your coverage will remain at the reduced amount at retirement.
If you return to public employment after conversion, and your individual policy is still in effect at the time you enroll in the retirement system, you will be required to submit satisfactory proof of insurability before you can be covered by group life insurance or discontinue your individual policy.
For further information about conversion, contact your employer and request a Conversion Notice.
DISABILITY CLAIMS AND GROUP LIFE INSURANCE
Your life insurance coverage will continue while your disability retirement benefits are being processed provided that the retirement claim was filed within 30 days of ending your employment.
GROUP LIFE INSURANCE COVERAGE WHILE RECEIVING WORKERS' COMPENSATION WITHOUT PAY
If you are disabled due to an illness or injury that is a direct result of your regular job duties, you may continue your group life insurance coverage under the following conditions:
— you must not be working;
— you cannot be retired;
— you must be receiving or eligible to receive workers' compensation or similar benefits;
— you must be an active member of the retirement system.
During the interval between the time you are without pay and the actual receipt of the workers' compensation award, you must be on an official leave of absence granted by your employer.
WITHDRAWAL FROM THE RETIREMENT SYSTEM
WHEN MEMBERSHIP ENDS
Your active membership in the JRS ends if
— you retire or die;
— you end your employment and withdraw your contributions from the System; or
— you have not been contributing to the System for two years and have less than 10 years of service credit. Two years is the limit for inactive membership before an account is expired.
Your membership will not end if
— you are granted an official leave of absence;
— your position is abolished.
WITHDRAWING CONTRIBUTIONS
If you terminate covered employment before retirement, you may withdraw all your contributions plus a small amount of interest less any outstanding obligations that have been credited to your account. You may withdraw only the money you have contributed and no partial withdrawal is permitted. Upon your withdrawal, all rights and privileges of membership end. Since the employer/employee relationship must be severed, no withdrawal will be paid if there are unresolved legal matters concerning your termination of employment. To withdraw, you must file a properly completed and notarized withdrawal application which is available from your employer.
In accordance with federal law, income tax must be withheld on certain pension distributions that produce an annual taxable income of $200 or more unless the taxable amount is directly rolled over into an individual retirement arrangement (IRA). To qualify, this direct rollover must occur within 60 days of the check date. If payment is made directly to you, the taxable portion is subject to 20% income tax withholding. In addition, if you receive payment before you reach 59 1/2 and you do not roll it over, you may have to pay an extra tax equal to 10% of the taxable portion of any payment. If you have any questions concerning this federal law, call 1-800-TAX-1040.
If your membership has been inactive for two years and you have not filed for and received a withdrawal of contributions, the Division of Pensions and Benefits will send a notice to your last known address (and a copy to your last employer in case they have a more current address) to remind you that your money is still in the System. You should then file a withdrawal application since contributions left in the System for over two years do not accrue interest.
Should you return to covered employment before the 2-year period ends, remember that you have the option of interfund transfer if you otherwise qualify. Should you return to covered employment after your account has expired or you have withdrawn your account, you will be treated as a new member in all respects. Service credit from a former membership may also be purchased by members returning to the System after withdrawal of a former account.
No withdrawal application can be processed until all the necessary information has been received from you and your former employer.
WORKERS' COMPENSATION WITHOUT PAY
As long as you are receiving periodic workers' compensation benefits, you retain the same status as an active member. Unless the employer/employee relationship is severed, you cannot withdraw from the JRS while receiving workers' compensation, have a claim pending or are involved in litigation regarding workers' compensation. Your employer is obligated by statute to pay your full pension contribution based on the salary you were receiving immediately before the receipt of workers' compensation benefits. Your employer is not obligated, however, to make voluntary contributions such as arrears.
The voluntary resignation or retirement of an employee receiving periodic workers' compensation frees the employer from pension contributions on behalf of the member.
If you have further questions regarding workers' compensation, please contact your employer.
APPEALS
If you wish to appeal any administrative decision, address your appeal to: Secretary to the State House Commission, Judicial Retirement System, New Jersey Division of Pensions and Benefits, PO Box 295, Trenton, New Jersey 08625-0295.
If your request is denied by the State House Commission, you will be notified that you have 45 days in which to file for a hearing. If the issue involves disputed matters of fact, the Commission will approve such a hearing and the matter will be referred to the Office of Administrative Law where an administrative law judge will schedule the hearing. You may wish to be represented by an attorney since this is a legal proceeding.
If the matter is heard by an administrative law judge, recommendations will be presented to the State House Commission. If the Commission affirms its original decision and denies your request, you will have an opportunity to appeal to the courts.
Benefits and provisions of the system are subject to changes by the legislature, courts and other officials. While this booklet outlines the benefit and contribution schedules of the Judicial Retirement System, it is not a final statement. Complete terms governing any employee benefit program are set forth in the New Jersey Statutes Annotated. Regulations, new or amended, are published in the New Jersey Register by the State Office of Administrative Law supplementing the New Jersey Administrative Code.
PLAN INFORMATION
NAME OF PLAN
The Judicial Retirement System of New Jersey.
ADMINISTRATION
The Judicial Retirement System is a defined benefit plan administered by the New Jersey Division of Pensions and Benefits, PO Box 295, Trenton, New Jersey 08625-0295, (609) 292-3678.
PROVISIONS OF LAW
The Judicial Retirement System was established by New Jersey Statutes and can be found in the New Jersey Statutes Annotated, Title 43, Chapter 6A. Changes in the law can only be made by an act of the State Legislature. Rules governing the operation and administration of the system may be found in Title 17, Chapter 10 of the New Jersey Administrative Code.
FUNDING
Contributions are made by the State on behalf of contributing JRS employees. All contributions not required for current operations are reported for investment to the State Division of Investment.
PLAN YEAR
For record keeping purposes the plan year is July 1 through June 30.
SERVICE OF LEGAL PROCESS
Legal process may be served on the Director of the Division of Pensions and Benefits who is the administrator of the system.
EMPLOYMENT RIGHTS NOT IMPLIED
Membership in the Judicial Retirement System does not give you the right to be retained in the employ of a participating employer, nor does it give you a right of any benefit you have not accrued under terms of the system.
TELEPHONE NUMBERS
Automated Information
System- (609) 777-1777
(Loan, Withdrawal,
Account History Information, and Purchase Estimates )
Available
24 hours per day
(Access using
a touch tone phone)
Recorded
Directions to the Division of Pensions and Benefits (609) 984-7109
Available
24 hours per day
(Access using
a touch tone phone)
Employer Requests
for Forms (609) 777-4357
Available
24 hours per day
Office of Client
Services- (609) 292-7524
TDD (for the
hearing impaired)- (609) 292-7718
(General Information
by speaking to a pension counselor)
Counselors available 8:30 a.m. to 4:00 p.m.
MAILING ADDRESS
On all correspondence, be sure to include your membership number or Social Security number.
Division of Pensions
and Benefits
PO Box 295
Trenton, New Jersey 08625-0295
The Division of Pensions
and Benefits offers one on one counseling services to members of the retirement
systems and other benefit programs. Counselors are available by appointment Monday through Friday from 7:40 AM to 3:40 PM. Counseling appointments can be made online at: www.state.nj.us/treasury/pensions
The office is located at:
One State Street
Square
50 West State Street
1st floor
Trenton, New Jersey
DIRECTIONS TO THE DIVISION OF PENSIONS AND BENEFITS
The Division of Pensions and Benefits is located at 50 West State Street (One State Street Square), which is a half block east of the State House. The directions below will take you to the parking garage next door to the Division of Pensions and Benefits. You must pay to park there. When leaving the garage, walk to the door next to the elevator and you will be facing the entrance to One State Street Square. After entering One State Street Square, proceed to the front of the building. The Client Services Reception Area is located in the lobby.
From Northeast New Jersey Via Route 1: Take Route 1 South toward Trenton. Just north of Trenton, Route 1 splits into two roads. Stay to the left (do not use Route 1 Alternate). From Route 1, take the Perry Street exit and turn left onto Perry Street. At the fourth traffic light, turn left onto Warren Street. At the second traffic light, turn right onto West State Street. At the next corner, turn right onto Chancery Lane. A half block up is a multilevel parking garage on the left. You must pay to park here; or
From Northeast New Jersey Via the NJ Turnpike: Take the NJ Turnpike south to Exit 7A. Follow I-195 West until it ends, then follow signs for Route 29, which bears to the left. When the freeway ends, turn right at the traffic light and continue on Route 29 North. After passing three more traffic lights and the State House, which has a gold dome and is located on the right, take the Calhoun Street exit. Turn right at the stop sign. At the first traffic light, turn right onto West State Street. Pass the State House and the next traffic light. At the next corner, turn left onto Chancery Lane. A half block up is a multilevel parking garage on the left. You must pay to park here.
From Northwest Jersey: Take Route 31 South to I-95 South to Exit 1 (Route 29). Follow Route 29 South for five miles to the Calhoun Street exit. At the first traffic light, turn right onto West State Street. Pass the State House, which has a gold dome, and go through the next light. Turn left at the next corner onto Chancery Lane. A half block up is a multilevel parking garage on the left. You must pay to park here.
From South Jersey Via Route 206 North: From Route 206 North, about four miles before reaching center-city Trenton, take the I-295 exit. Once on the interstate highway, follow the signs for Route 29, not I-295. Route 29 bears to the left. When the freeway ends, turn right at the traffic light and continue on Route 29 North. After passing three more traffic lights and the State House, which has a gold dome and is located on the right, take the Calhoun Street exit. Turn right at the stop sign. At the first traffic light, turn right onto West State Street. Pass the State House and the next traffic light. At the next corner, turn left onto Chancery Lane. A half block up is a multilevel parking garage on the left. You must pay to park here.
From South Jersey Via the NJ Turnpike: Take the NJ Turnpike north to Exit 7A. Follow I-195 West until it ends, then follow the signs for Route 29, which bears to the left. When the freeway ends, turn right at the traffic light and continue on Route 29 North. After passing three more traffic lights and the State House, which has a gold dome and is located on the right, take the Calhoun Street exit. Turn right at the stop sign. At the first traffic light, turn right onto West State Street. Pass the State House and the next traffic light. At the next corner, turn left onto Chancery Lane. A half block up is a multilevel parking garage on the left. You must pay to park here.
From South Jersey Via I-295 North: From I-295 North, take Exit 60 to Route 29. Route 29 bears to the left. When the freeway ends, turn right at the traffic light and continue on Route 29 North. After passing three more traffic lights and the State House, which has a gold dome and is located on the right, take the Calhoun Street exit. Turn right at the stop sign. At the first traffic light, turn right onto West State Street. Pass the State House and the next traffic light. At the next corner, turn left onto Chancery Lane. A half block up is a multilevel parking garage on the left. You must pay to park here.
From the Jersey
Shore: Take I-195 West until it ends, then follow signs for Route 29,
which bears to the left. When the freeway ends, turn right at the traffic
light and continue on Route 29 North. After passing three more traffic lights
and the State House, which has a gold dome and is located on the right,
take the Calhoun Street exit. Turn right at the stop sign. At the first
traffic light, turn right onto West State Street. Pass the State House and
the next traffic light. At the next corner, turn left onto Chancery Lane.
A half block up is a multilevel parking garage on the left. You must pay
to park here.
URL: http://www.state.nj.us/treasury/pensions/jrshbk.htm
October 31, 2000
NJ Division of Pensions
and Benefits
PO Box 295, Trenton NJ 08625-0295
Telephone: (609) 292-7524
Questions or comments, e-mail Division of Pensions and Benefits