N.J. Admin. Code § 17:1-7.4

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

Section 17:1-7.4 - Biweekly salary computation; retirement and death benefits

(a) In computing the salary upon which pension contributions were based during a member's last year of service, in the case of a 12-month employee reported on a biweekly basis, a total of 26 biweekly pays will be used, including any retroactive salary payments made for the covered period.

(b) In computing final compensation upon which pension contributions were based, in the case of a 12-month employee reported on a biweekly basis, the number of biweekly pays used depends on a member's date of enrollment and the system or fund in which the member is enrolled, as specified in 17:2-6.24, 17:3-6.26, 17:4-6.26, and 17:5-5.9. Final compensation will include any retroactive salary payments made for the covered period.

(c) In order to compute the amounts under (a) and (b) above for biweekly employees, the actuary will supply factors to convert biweekly salaries to compensate for biweekly payroll schedules. Application of the factors to the salaries reported for pension purposes will develop the wage base for the calculation of benefits.

(d) In computing the amounts under (a) and (b) above in the case of employees reported on a 10-month basis, the total biweekly pays will include those pay periods in the third quarter of each year in which the member does not receive salary. The adjustment as specified in (c) above shall not be made.

(e) If a member was reported on a biweekly basis on any combination of 10-and 12-month contract years in such one or three-year period, the final average compensation or last year's salary period to death or retirement shall be determined on a proportional basis.

(f) The biweekly pay periods for which no contributions were made shall not be used in the calculation with the exception of the pay periods cited in (d) above.

N.J. Admin. Code § 17:1-7.4

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