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43:3C-9. Employer pickup of employee contributions
1. The mandatory contributions by members to the Teachers@ Pension and Annuity Fund required by N.J.S.18A:66-31, to alternate benefit providers under the alternate benefit program required by section 8 of P.L.1969, c.242 (C.18A:66-174), to the Judicial Retirement System required by section 26 of P.L.1981, c.470 (C.43:6A-34.1), to the Prison Officers@ Pension Fund required by section 7 of P.L.1941, c.220 (C.43:7-13), to the Public Employees@ Retirement System required by section 25 of P.L.1954, c.84 (C.43:15A-25), to the Consolidated Police and Firemen@s Pension Fund required by R.S.43:16-5, to the Police and Firemen@s Retirement System required by section 15 of P.L.1944, c.255 (C.43:16A-15), and to the State Police Retirement System required by section 38 of P.L.1965, c.89 (C.53:5A-38), shall be picked up by their employers and shall be treated as employer contributions as provided by section 414(h) of the United States Internal Revenue Code. The amount of contributions on behalf of each member shall continue to be included as regular compensation for all other purposes, except that the amount shall not be included in the computation of federal income taxes withheld from the member@s compensation.
L.1986,c.188,s.1; amended 1993,c.385,s.12.
43:3C-9.1. Corpus, income of retirement systems, restrictions on use, diversions
1. In accordance with the provisions of section 401 (a) (2) of the federal Internal Revenue Code, and subject to such exceptions as may be permitted for governmental plans under section 401 (a) (2) of the federal Internal Revenue Code, at no time prior to the satisfaction of all liabilities with respect to members and their beneficiaries under the Teachers@ Pension and Annuity Fund, established pursuant to N.J.S.18A:66-1 et seq., the Judicial Retirement System, established pursuant to P.L.1973, c.140 (C.43:6A-1 et seq.), the Prison Officers@ Pension Fund, established pursuant to P.L.1941, c.220 (C.43:7-7 et seq.), the Public Employees@ Retirement System, established pursuant to P.L.1954, c.84 (C.43:15A-1 et seq.), the Consolidated Police and Firemen@s Pension Fund, established pursuant to R.S.43:16-1 et seq., the Police and Firemen@s Retirement System, established pursuant to P.L.1944, c.255 (C.43:16A-1 et seq.), the State Police Retirement System, established pursuant to P.L.1965, c.89 (C.53:5A-1 et seq.), and the Alternate Benefit Program, established pursuant to P.L.1969, c.242 (C.18A:66-167 et seq.), shall any part of the corpus or income of the respective retirement systems, within the taxable year or thereafter, be used for or diverted to purposes other than for the exclusive benefit of the members or their beneficiaries.
L.1997,c.113,s.1.
43:3C-9.2. Limitations on contributions, benefits
2. Notwithstanding any law, rule or regulation to the contrary, the contributions to and benefits payable under the Teachers@ Pension and Annuity Fund, the Judicial Retirement System, the Prison Officers@ Pension Fund, the Public Employees@ Retirement System, the Consolidated Police and Firemen@s Pension Fund, the Police and Firemen@s Retirement System, the State Police Retirement System and the Alternate Benefit Program shall not exceed the limitations provided under section 415 of the federal Internal Revenue Code. The Division of Pensions and Benefits in the Department of the Treasury shall be responsible for implementation and enforcement of these limitations.
L.1997,c.113,s.2.
43:3C-9.3. TPAF, JRS, PERS, PFRS, SPRS compensation limitation not to be exceeded
3. Notwithstanding any law, rule or regulation to the contrary, for members of the Teachers@ Pension and Annuity Fund, the Judicial Retirement System, the Public Employees@ Retirement System, the Police and Firemen@s Retirement System, and the State Police Retirement System, the amount of compensation which may be used for member contributions and benefits under the retirement systems after June 30, 1996 shall not exceed the compensation limitation of section 401 (a) (17) of the federal Internal Revenue Code of 1986, (26 U.S.C. s.401 (a) (17) ), as amended pursuant to section 13212 of the Omnibus Budget Reconciliation Act of 1993, Pub. L.103-66, 107 Stat. 312 or as hereafter amended or supplemented, to the extent applicable to governmental plans. The provisions of this section shall not be applicable to members enrolled prior to July 1, 1996 if the employer of the members certifies to the Director of the Division of Pensions and Benefits, in the form and manner prescribed by the director, prior to July 1, 1997, that the employer will pay the additional cost for not applying the limit to the members.
L.1997,c.113,s.3.
43:3C-9.4. Alternate Benefit Program, compensation limitation not to be exceeded
4. Notwithstanding any law, rule or regulation to the contrary, for members of the Alternate Benefit Program, the amount of compensation which may be used for employer and member contributions and benefits under the program after June 30, 1996 shall not exceed the compensation limitation of section 401 (a) (17) of the federal Internal Revenue Code of 1986, (26 U.S.C. s.401 (a) (17) ), as amended pursuant to section 13212 of the Omnibus Budget Reconciliation Act of 1993, Pub. L.103-66, 107 Stat. 312, or as hereafter amended or supplemented, to the extent applicable to governmental plans. The provisions of this section shall not be applicable to members enrolled prior to July 1, 1996 if the employer of the members certifies to the Director of the Division of Pensions and Benefits, in the form and manner prescribed by the director, prior to July 1, 1997, that the employer will pay the additional cost for not applying the limit to the members.
L.1997,c.113,s.4.
43:3C-9.5. ~Non-forfeitable right to receive benefits~ defined, contributions; construction of act
5. a. For purposes of this section, a ~non-forfeitable right to receive benefits~ means that the benefits program, for any employee for whom the right has attached, cannot be reduced. The provisions of this section shall not apply to post-retirement medical benefits which are provided pursuant to law.
b. Vested members of the Teachers@ Pension and Annuity Fund, the Judicial Retirement System, the Prison Officers@ Pension Fund, the Public Employees@ Retirement System, the Consolidated Police and Firemen@s Pension Fund, the Police and Firemen@s Retirement System, and the State Police Retirement System, upon the attainment of five years of service credit in the retirement system or fund or on the date of enactment of this bill, whichever is later, shall have a non-forfeitable right to receive benefits as provided under the laws governing the retirement system or fund upon the attainment of five years of service credit in the retirement system or fund or on the effective date of this act, whichever is later.
c. The State shall make an annual normal contribution and an annual unfunded accrued liability contribution to each system or fund pursuant to standard actuarial practices authorized by law, unless both of the following conditions are met: (1) there is no existing unfunded accrued liability contribution due to the system or fund at the close of the valuation period applicable to the upcoming fiscal year; and (2) there are excess valuation assets in excess of the actuarial accrued liability of the system or fund at the close of the valuation period applicable to the upcoming fiscal year.
d. This act shall not be construed to preclude forfeiture, suspension or reduction in benefits for dishonorable service.
e. Except as expressly provided herein and only to the extent so expressly provided, nothing in this act shall be deemed to (1) limit the right of the State to alter, modify or amend such retirement systems and funds, or (2) create in any member a right in the corpus or management of a retirement system or pension fund.
L.1997,c.113,s.5.
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