NEW JERSEY STATE EMPLOYEES
DEFERRED COMPENSATION PLAN
to Prudential's NJSEDCP Web site
and Performance Information
Fact Sheets and Forms
The New Jersey State Employees Deferred
Compensation Plan (NJSEDCP) provides you, as an eligible state
employee, an opportunity to voluntarily shelter a portion
of your wages from federal income taxes while saving for retirement
to supplement your Social Security and pension benefits. Under
the Plan, federal income tax is not due on deferred amounts
or accumulated earnings until you receive a distribution (payment)
from your account. Presumably, distribution is at retirement
when your tax rate is expected to be lower.
The NJSEDCP, governed by the guidelines
of Internal Revenue Code Section 457 and the laws of the State
of New Jersey, is administered by Prudential
Financial for the State of New Jersey. Individual participant's
accounts are maintained by the Administrator and statements
of account are furnished quarterly. All plan expenses are
borne by the participants and notification of administrative
fees is provided at enrollment. The Deferred Compensation
Board is the final authority on all matters concerning the
operation of the Plan and by law, the State Investment Council
has the right to supervise certain aspects of the Plan including
the investment of assets.
ELIGIBILITY FOR ENROLLMENT
To enroll in the NJSEDCP, you must be employed
by the State of New Jersey or an eligible agency, authority,
commission, or instrumentality of state government.
If you are employed through a county, township,
or municipality and not paid directly by the State of New
Jersey or one of its agencies, you are NOT eligible for the
HOW TO ENROLL
You can obtain an enrollment package from
your Human Resource or Personnel Representative or enroll
by contacting Prudential Retirements directly at 1-866-NJSEDCP
(1-866-657-3327 a TDD line is also available at: 1-877-760-5166)
or over the Internet at: www.prudential.com/njsedcp
Upon enrollment, you agree that your deferrals
and any earnings will be held in trust for you and your beneficiaries
and will be paid to you following severance of employment.
You may defer between 1% and 100% of your salary (minus your
tax-sheltered pension or other voluntary tax-sheltered contributions)
with an annual dollar maximum in 2015 of $18,000 ($24,000
for individuals age 50 and older). You then choose how you
want to invest among the 23 investment funds now offered through
MANAGING YOUR INVESTMENTS
As a participant in the NJSEDCP, you have
the ability to make changes on your account such as increase,
decrease, suspend, or resume deferral percentages. You may
also change your investment elections to any of the 23 pre-approved
products offered under Prudential. Participants with balances
remaining in the 4 closed State-managed investment funds (Bond,
Equity, Money Market, and Small Cap Equity) may transfer all
or a portion of those investment balances between the 4 funds
on a monthly basis. You may also exchange amounts accumulated
in your Prudential-managed funds to any of the 23 funds on
a daily basis. You may not transfer balances in the Prudential-managed
investments to the State-managed funds.
As of March 31, 2006, the State-managed
investments, which was previously valued on a monthly basis,
began to be valued daily. You are allowed to continue the
transfer between the 4 State-managed funds on a daily basis
or request daily transfers of all, or any portion, of your
balances to any of the Prudential funds. However, you may
not transfer holdings in the Prudential-managed funds to the
DISTRIBUTION OF YOUR MONEY FROM THE PLAN
Your Deferred Compensation Plan account
may be distributed following severance of employment due to
termination, retirement, or disability. Distribution is also
permitted in the case of an unforeseeable financial hardship,
as defined under Section 457 of the Internal Revenue Code,
following approval by the Deferred Compensation Board. In-service
distributions are permitted on smaller, inactive accounts.
If your account balance is less than $5,000
at the time of distribution as a result of severance of employment,
you must take a lump-sum payment.
If your account balance is $5,000 or more,
you may elect:
1. A one-time lump-sum
2. A portion of your account
in a specific dollar amount; or
3. Periodic installment payments.
Upon severance of employment, you may begin
your account distribution as soon as administratively feasible,
you may elect a future distribution date, or you may do nothing.
However, you must begin receiving distribution no later than
March of the year following your attainment of age 70 1/2,
or the year of employment termination whichever is later.
For daily valued funds, your account will be valued at the
close of the day prior to your distribution date. For monthly
valued funds, your account will be valued at the close of
the month prior to your election for payment. A Distribution
Request form must be completed and returned to the Plan office.
The New Jersey State Employees Deferred
Compensation Plan is an eligible state deferred compensation
plan under Section 457 of the Internal Revenue Code. Distributions
from the Plan may be eligible for rollover, however, distributions
do not qualify for special 5-year or 10-year averaging. Distributions
are defined as pension payments and are subject to federal
income tax unless rolled over to another retirement plan.
IF YOU DIE BEFORE DISTRIBUTION IS COMPLETE
At the time of your death, your executor,
beneficiary, or a family member should contact Prudential
at 1-866-NJSEDCP. Your beneficiary will be notified of the
options for account distribution. Your beneficiary will have
the same distribution options available to members who terminate
employment. However, the maximum period for periodic installment
payments to non-spousal beneficiaries cannot exceed five years.
Beneficiaries receiving distributions are subject to the same
tax consequences as the original member.
Contact Prudential or the New Jersey State
Employees Deferred Compensation Plan through the Division
of Pensions and Benefits in writing or call 1-866-NJSEDCP.
The Deferred Compensation Plan office can answer your questions
about the plan, your account, and provide any necessary forms.
Additional information on account and investment
options is also available from Prudential Financial at: www.prudential.com/njsedcp