Current through Register Vol. 56, No. 6, March 18, 2024
(a) For each participant enrolled in the Retirement Plan and making employee contributions, the employer shall, subject to 17:6-5.7, make employee mandatory contributions, including catch-up employee mandatory contributions (if applicable) and, if the participant so elects pursuant to his or her timely filing of a participation agreement, employee voluntary contributions, in the percentage amount applicable to the participant multiplied by the participant's base salary for each payroll period beginning on and after the effective date of the participant's enrollment, provided the participant remains an eligible employee. For participants described in 17:6-4.1(a)5, employee contributions shall be made only with respect to that portion of base salary, if any, which is in excess of the annual maximum wage contribution base for Social Security benefits, pursuant to the Federal Insurance Contributions Act, 26 U.S.C. §§
3101 et seq.
1. The enrollment of the participant in the Retirement Plan with respect to employee mandatory contributions shall, subject to 17:6-4.3, be effective as of the later of the effective date or the date on which the individual becomes an eligible employee. Because the Retirement Plan implementation date is later than the effective date, there shall be deducted, to the extent practicable, from the participant's base salary an additional amount equal to the catch-up employee mandatory contribution. The catch-up employee mandatory contribution is equal to the total employee mandatory contributions that are contributable for the period between the effective date (or the participant's date of hire as an eligible employee, if later) and the first payroll period following the Retirement Plan implementation date as of which the participant's employee mandatory contribution is in fact deducted from his or her base salary for contribution to the Retirement Plan.
i. The Plan Administrator shall establish rules, which shall be uniformly applied with respect to participants the Plan Administrator determines are similarly situated, regarding the number of payroll periods over which the participant's base salary shall be additionally reduced in order to make the catch-up employee mandatory contribution. The Plan Administrator shall, for purposes of measuring the employer contribution with respect to such catch-up mandatory employee contribution, designate the past period or periods to which the catch-up employee mandatory contribution relates.
2. To the extent permitted by State law, the Plan Administrator is empowered to promulgate rules and procedures, consistent with 43:15C-3(a), regarding the maximum and minimum percentages of base salary which an eligible employee may elect for his or her employee voluntary contributions. Because all employee contributions are "picked up" by the employer and treated as employer contributions, the percentage amount of employee voluntary contributions, once elected by eligible employee within 60 days of date of hire as an eligible employee (or the voluntary contribution implementation date, as applicable), are irrevocable and cannot thereafter be changed except as may be permitted by the IRC and approved by the Plan Administrator.
