New Jersey Administrative Code
Title 17 - TREASURY - GENERAL
Chapter 7 - ALTERNATE BENEFIT PROGRAM
Subchapter 12 - NEW JERSEY ADDITIONAL CONTRIBUTIONS TAX-SHELTERED PROGRAM (ACTS)
Section 17:7-12.1 - Employee elective deferrals to ACTS; additional voluntary contributions
Current through Register Vol. 56, No. 18, September 16, 2024
(a) The Board of Governors of Rutgers, the State University; the Board of Trustees of the New Jersey Institute of Technology; the Board of Trustees of Rowan University; the boards of trustees of State and county colleges; and local boards of education are hereby authorized to enter into an agreement with each employee participating in the ABP whereby the employee agrees to make elective deferrals by a reduction in salary with respect to amounts earned after the effective date of such agreement in return for the agreement of the respective institution to use a corresponding amount to purchase an annuity for such employee, so as to obtain the benefits afforded under IRC § 403(b). Any such salary reduction agreement shall specify the amount of such reduction, the effective date thereof, and shall be legally binding and irrevocable with respect to amounts earned while the agreement is in effect; provided, however, that such agreement may be terminated after it has been in effect for a period of not less than one year upon notice in writing by either party, and provided further that not more than one such agreement shall be entered into during any taxable year of the employee. For the purposes of this section, any investment option and annuity or other contract offered by the DSP that meets the requirements of IRC § 403(b), may be utilized. The amount of the reduction in salary under any agreement entered into between the institutions and any employee pursuant to this section shall not exceed the limitations set forth in IRC §§ 415(c) and 403(b).
(b) Amounts payable pursuant to this section by an institution on behalf of an employee for a pay period shall be transmitted and credited not later than the fifth business day after the date on which the employee is paid for that pay period.
(c) Employee elective deferrals are permitted as follows:
(d) In addition to elective deferrals, an employee may make additional voluntary contributions to the ACTS subject to the limits of IRC § 415(c), if these contributions are accepted in the investment option.
(e) The following employees are excluded from eligibility to have elective deferrals made on their behalf under the ACTS:
(f) Each participant shall provide to the Plan Administrator at the time of initial enrollment, and later if there are any changes, any information necessary or advisable for the Plan Administrator to administer the ACTS, including any information required under the investment options.
(g) Unless the salary reduction agreement is otherwise revised, if an employee is absent from work by leave of absence, elective deferrals under the ACTS shall continue to the extent that compensation continues.