New Jersey Administrative Code
Title 17 - TREASURY - GENERAL
Chapter 7 - ALTERNATE BENEFIT PROGRAM
Subchapter 12 - NEW JERSEY ADDITIONAL CONTRIBUTIONS TAX-SHELTERED PROGRAM (ACTS)
Section 17:7-12.11 - Benefit distributions

Universal Citation: NJ Admin Code 17:7-12.11

Current through Register Vol. 55, No. 48, December 18, 2023

(a) Except as permitted in the case of excess elective deferrals, pre-1989 elective deferral contributions (excluding earnings thereon) to an annuity contract that are separately accounted for, amounts rolled over into the ACTS, a distribution made in the event of hardship, a qualified reservist distribution as defined in IRC § 72(t)(2)(G), termination of the ACTS, a payment pursuant to QDRO or levy, or as may otherwise be provided by applicable law, distributions of elective deferrals from a participant's account may not be made earlier than the date on which the participant has a severance from employment, dies, becomes disabled (under IRC § 22 (e)(3)), or attains age 59 and one-half The participant's account may be distributed in accordance with any available payment option.

(b) To the extent permitted under the terms governing the applicable investment option, distributions may be made in the form of a lump-sum payment, without the consent of the participant or beneficiary, but not without the consent of the participant or beneficiary if the participant's accumulated benefit (determined without regard to any separate account that holds rollover contributions) exceeds $ 1,000, or any lesser amount specified in the investment option. Any such distribution shall comply with the requirements of IRC § 401(a)(31)(B) (relating to automatic distribution as a direct rollover to an individual retirement plan for distributions in excess of $ 1,000).

(c) The Plan Administrator shall make all reasonable attempts to determine the identity and address of a participant or a participant's beneficiary entitled to benefits under the ACTS. For this purpose, a reasonable attempt means:

1. The mailing by certified mail of a notice to the last known address shown on the employer's or the Plan Administrator's records;

2. Notification sent to the Social Security Administration or the Pension Benefit Guaranty Corporation (under its program to identify payees under retirement plans); and

3. The payee has not responded within six months. If the Plan Administrator is unable to locate such a person entitled to benefits under this subchapter, or if there has been no claim made for such benefits, the investment option shall continue to hold the benefits due such person.

Adopted by 50 N.J.R. 1616(a), effective 7/16/2018

Disclaimer: These regulations may not be the most recent version. New Jersey may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.