N.J. Admin. Code § 12:16-7.5

Current through Register Vol. 56, No. 11, June 3, 2024

Section 12:16-7.5 - Use of surplus funds

(a) A governmental entity or instrumentality using the contributory method may use the surplus in its unemployment trust fund pursuant to the following conditions:

1. The governmental entity or instrumentality must request, in writing, permission to use a portion of the surplus funds. Upon written approval of the Commissioner or his or her designee, the governmental entity or instrumentality may proceed with its withdrawal of funds;

2. Worker contributions shall not be diverted from the fund;

3. In addition to worker contributions that remain in the fund, an amount equal to the highest one of the previous three years' contribution payments must remain in the fund to cover the next year's anticipated contributions.

(b) A governmental entity or instrumentality using the reimbursable method may not use the surplus in its unemployment fund for any purpose other than payment of benefits.

1. Governmental entities or instrumentalities which change from the reimbursable method to the contributory method pursuant to 43:21-7.3(b) may divert surplus trust funds subject to the provisions of this subchapter.

i. Surplus trust funds may be diverted only after the governmental entity or instrumentality has received written approval from the Commissioner or his or her designee.

N.J. Admin. Code § 12:16-7.5

New Rule, R.1988 d.437, effective 9/6/1988.
See: 20 New Jersey Register 1521(a), 20 New Jersey Register 2300(a).
Amended by R.1995 d.138, effective 3/6/1995.
See: 27 New Jersey Register 61(a), 27 New Jersey Register 919(a).