N.J. Admin. Code § 17:1-6.3

Current through Register Vol. 56, No. 9, May 6, 2024

Section 17:1-6.3 - Settlement agreements; employer responsibility for reimbursement to the pension fund or retirement system for associated costs

(a) Pursuant to the provisions of P.L. 2007, c. 49 ( 43:1-3.3), the following shall apply:

1. A State, county, or local employer participating in a State pension fund or retirement system shall be responsible for informing the Division of any settlement agreement between the employer and an employee that provides for the employer not to pursue any civil or criminal charges or an action for misconduct against the employee in exchange for the employee's resignation in good standing. A copy of the settlement agreement must be provided to the Division by the certifying officer within 60 days of execution of such agreement. Such agreement must also be included with any employer certification of service and salary relative to an employee's claim for benefits from the pension fund or retirement system.

i. In cases where a member was subject to administrative or criminal charges that resulted in a settlement agreement between the member and employer, the employer is required to submit to the Division and to the employee all documentation related to the settlement agreement, including the specific underlying charges, disciplinary actions taken, and reports related to the employee's misconduct, before any benefit claims submitted by the member will be processed.

ii. A member's claims for retirement or death benefits submitted after reaching a settlement agreement will be held in abeyance until the Division receives the required settlement agreement and all related documentation; and

2. Should the Division determine that the terms of the settlement agreement result in additional costs for the pension fund or retirement system, the State, county or local employer shall be responsible for the reimbursement of all such costs to the State pension fund or retirement system.

N.J. Admin. Code § 17:1-6.3

Amended by 48 N.J.R. 1306(a), effective 6/20/2016