New Jersey Administrative Code
Title 17 - TREASURY - GENERAL
Chapter 3 - TEACHERS' PENSION AND ANNUITY FUND
Subchapter 1 - ADMINISTRATION
Section 17:3-1.13 - Age determination; contribution rate
Current through Register Vol. 56, No. 6, March 18, 2024
(a) For purposes of enrollment, the age assigned to the applicant is based on the applicant's age on the date of enrollment. However, if the applicant is six months or more past his or her most recent birthday, the assigned age for enrollment will be his or her age on his or her next birthday.
(b) For purposes of purchasing additional service credit, the age used to determine the applicable actuarial factor is based on the applicant's age on the date the purchase request is received by the Division. However, if on that date the applicant is six months or more past his or her birthday, the purchase actuarial factor will be based upon the applicant's age on his or her next birthday.
(c) For purposes of calculating a retirement option selection, the age used to determine the applicable actuarial reduction factor is based upon the ages of the member and designated beneficiary (or beneficiaries) on the effective date of retirement. If on that date, the age of either the member or the designated beneficiary (or beneficiaries) is six months or more past that individual's birthday, the age used for the option selection will be based upon that individual's age on his or her next birthday.
(d) For purposes of calculating an Option 1 reserve balance upon the death of a retired member, when a beneficiary elects (or beneficiaries elect) an annuity certain (specified number of years) or a life annuity, the applicable factor is based upon the age of the beneficiary (or beneficiaries) at the time of the member's death. If that age is six months or more past the birthday of the named beneficiary (or beneficiaries), the factor is based upon the age of the beneficiary or beneficiaries on the next birthday attained.
(e) For purposes of calculating the group life insurance benefits upon the death of an active employee when the beneficiary elects (or beneficiaries elect) an annuity certain (specified number of years) or a life annuity, the applicable factor is based upon the age of the beneficiary (or beneficiaries) at the time of the member's death. The factor is based solely on the age of the beneficiary (or beneficiaries) at the time of the member's death; it is not rounded up to the next birthday.
(f) Pursuant to 18A:66-29, the full contribution rate was increased from five percent to 5.5 percent of salary in July of 2007. In October of 2011, the contribution rate was increased to 6.5 percent of salary, with an additional increase of one percent phased in through seven increments from July 2012 until July 2018, when the total pension contribution rate reaches 7.5 percent of salary.
(g) For members who enrolled in the Fund prior to July 1, 2007, the contribution rate in effect is applied to the full pensionable salary, up to the current Federal ceiling on pensionable compensation under section 401(a)(17) of the Internal Revenue Code.
(h) For members who enroll (or enrolled) on or after July 1, 2007, the contribution rate in effect is applied to the pensionable salary up to the maximum compensation limit for pension contributions, pursuant to the Federal Insurance Contributions Act and based on the annual maximum wage for Social Security deductions.
