New Jersey Administrative Code
Title 17 - TREASURY - GENERAL
Chapter 3 - TEACHERS' PENSION AND ANNUITY FUND
Subchapter 5 - PURCHASES AND ELIGIBLE SERVICE
Section 17:3-5.6 - Methods of payment

Universal Citation: NJ Admin Code 17:3-5.6

Current through Register Vol. 56, No. 6, March 18, 2024

(a) Methods of payment for purchases include the following:

1. Lump sum;

2. Partial lump sum; balance by additional payroll deductions; or

3. Extra deductions equal to at least one-half of the full regular pension deduction for a maximum period of 10 years.

(b) Additional payroll deductions under (a)2 or 3 above will include regular interest for the term of the installment.

(c) Lump sum payments and partial lump sum payments can include the direct rollover of transfer of tax-deferred contributions from financial plans that qualify under terms specified under § 401(a)(31) (2007) of the Internal Revenue Code. All payments remitted to the Division must be accompanied by a properly completed Direct Rollover/Trustee-to-Trustee Transfer of Funds for the Purchase of Additional Service Credit form. Checks remitted to the Division without the required forms shall be returned to the member. A lump sum rollover payment for a purchase cannot exceed the lump sum cost of that purchase. Checks in an amount greater than the lump sum cost of the purchase shall be returned to the member.

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