N.J. Admin. Code § 17:2-3.2

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

Section 17:2-3.2 - Computation of insurance benefits

(a) A member's insurance death benefit shall be based upon the base salary that is attributable to the 12 months or 26 biweekly pay periods immediately preceding the member's death upon which contributions to the annuity savings fund were made.

(b) For the purpose of calculating the benefit payable in (a) above, the salary, in a month or biweekly pay period in which no salary was paid, shall be counted as zero.

(c) Full salary credit will be given for the monthly or biweekly pay period in which a member dies, if the member was paid salary to date of death and the salary paid was sufficient to permit a full normal monthly or biweekly pension and insurance contribution deduction, provided such deduction was made by the employer.

(d) If a member dies during the first year following the member's date of enrollment, or if the member has contributed pension contributions for less than a year although the member's enrollment has been in effect for more than a year, the contributory insurance benefit shall be 1 1/2 times the member's annual base salary on which the member contributed or would have contributed immediately prior to death. The noncontributory insurance benefit shall be 1 1/2 times the actual base salary upon which contributions to the annuity savings fund were due from the date of enrollment to the date of death.

(e) Where post-death audits establish that the insurance benefits were underpaid, an additional check shall be sent to the beneficiary for the value of the underpayment. Should any change or error in the records result in any member receiving from the pension fund more than he or she would have been entitled to receive had the records been correct, the Board of Trustees shall correct such error, as far as practicable, and shall adjust the payments payable to the member's designated beneficiary or estate pursuant to N.J.A.C. 17:1-2.10.

(f) Refunds of a deceased member's pension contributions will be made to the member's designated beneficiary or the employer after written confirmation is received from the employer setting forth the reason for the refund of pension contributions to either the beneficiary or to the employer.

(g) Members who prove their insurability for the group life insurance benefits shall have their insurance benefit calculated on the basis of salary they received or salary upon which pension contributions were based during their last year (10 and 12 months) of service prior to death, regardless of their effective date of insurance coverage.

(h) 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 12 months a year on a biweekly basis, a total of 26 biweekly pays will be used, including any retroactive salary payments made within the prescribed period. The total salary will be adjusted by multiplying the total by the factors supplied by the actuary; such adjustment will compensate for biweekly payroll schedules.

(i) In computing (h) 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 a member does not receive salary. The adjustment as specified in (h) shall not be made.

(j) If a member was reported on a biweekly basis or any combination of 10 and 12-month contract years, the last year's salary prior to death shall be determined on a proportional basis.

N.J. Admin. Code § 17:2-3.2

Amended by 50 N.J.R. 646(a), effective 1/16/2018

Amended by 55 N.J.R. 749(a), effective 4/17/2023