N.J. Admin. Code § 17:2-6.1

Current through Register Vol. 56, No. 21, November 4, 2024

Section 17:2-6.1 - Applications

(a) Applications for retirement must be made over the Internet, using the online forms required by the System through a member's secure account established through the Member Benefits Online System (MBOS). Such forms must be completed in all respects and filed with the Division before the requested date of retirement. A member's retirement application becomes effective on the first of the month following receipt of application unless a future date is requested. Applications can be filed no more than one year in advance unless filing for a deferred retirement and the member's PERS-eligible employment has ended. Members enrolled in multiple PERS positions on or before May 21, 2010, who have not had break in service after May 21, 2010, pursuant to the provisions of N.J.S.A. 43:15A-25.2, must retire from employment in all covered positions before a retirement shall become effective.

(b) Except for a disability retirement application, in the event a member files an incomplete application, all deficiencies, except the employer certification, shall be brought to the member's attention and the member shall be required to provide the additional information within 90 days to enable processing. If there is no response within the 90-day time frame, the application will expire and the member will be required to refile, pursuant to the requirements set forth in (a) above. This subsection shall not apply to information that the employer is required to provide.

(c) A member who enrolls in the System after May 21, 2010, is not eligible to apply for a disability retirement, pursuant to N.J.S.A. 43:15A-42. Instead, the member may be eligible for disability insurance coverage.

(d) A member shall, on the retirement application, select one of nine ways (options) to receive retirement benefits. Each option provides the member with a lifetime monthly retirement benefit. Once a retirement benefit becomes due and payable as defined by N.J.A.C. 17:2-6.2, the option cannot be changed. Except under the Maximum Option and Option 1, once a member designates a pension beneficiary, that beneficiary cannot be changed. The options, as established by N.J.S.A. 43:15A-50, include the following:

1. Maximum Option provides the largest allowance for the member but does not include a pension benefit paid to a beneficiary upon the member's death.

2. Option 1 provides a reducing retirement reserve to one or more beneficiaries. At retirement, a reserve amount is established to pay the member's lifetime retirement allowance. This reserve is reduced each month by the member's original monthly retirement allowance. Upon the member's death, the beneficiary or beneficiaries receive the balance of the reserve, if any.

3. Option 2 provides, upon the member's death, a lifetime monthly retirement allowance equal to 100 percent of the member's monthly retirement allowance to a beneficiary.

4. Option 3 provides, upon the member's death, a lifetime monthly retirement allowance equal to 50 percent of the member's monthly allowance to a beneficiary.

5. Option 4 provides, upon the member's death, a lifetime monthly retirement allowance to one or more beneficiaries. The member determines the retirement allowance which in the aggregate cannot be more than the Option 2 allowance.

6. Option A provides, upon the member's death, a lifetime monthly retirement allowance equal to 100 percent of the member's monthly retirement allowance to a beneficiary. If the member's beneficiary predeceases the member, the member's retirement allowance shall increase to the Maximum Option.

7. Option B provides, upon the member's death, a lifetime monthly retirement allowance equal to 75 percent of the member's monthly retirement allowance to a beneficiary. If the member's beneficiary predeceases the member, the member's retirement allowance shall increase to the Maximum Option.

8. Option C provides, upon the member's death, a lifetime monthly retirement allowance equal to 50 percent of the member's monthly retirement allowance to a beneficiary. If the member's beneficiary predeceases the member, the member's retirement allowance shall increase to the Maximum Option.

9. Option D provides, upon the member's death, a lifetime monthly retirement allowance equal to 25 percent of the member's monthly retirement allowance to a beneficiary. If the member's beneficiary predeceases the member, the member's retirement allowance shall increase to the Maximum Option.

(e) Before an application for retirement may be processed, the Division must receive proof of the member's age, if none is already in the member's record, proof of the beneficiary's age, if the member elected Option 2, 3, 4, A, B, C, or D, and a completed Certification of Service and Final Salary form from the employer setting forth the employment termination date, and the salaries reported for contributions in the member's final year of employment.

(f) A member must request a reasonable accommodation, as defined by the Americans with Disabilities Act of 1990, 42 U.S.C. §§ 12101 through 12213, prior to filing for a disability retirement. Upon completion of the Certification of Service and Final Salary, the employer's designated certifying officer will certify that a reasonable accommodation was requested and whether such accommodation could be provided.

(g) In addition to the requirements at (a) through (f) above, the following shall apply when an application for disability retirement is filed:

1. An application for a physical disability retirement must be supported by at least two medical reports. One must be provided by the member's personal or treating physician on a form prescribed by the Division. The other may be either hospital records supporting the claim of disability or a report from a second physician on a form prescribed by the Division. The medical condition described on the member's retirement application must correspond to the medical reports submitted in support of the member's disability retirement application. Further, in the case of a member filing for an accidental disability retirement, only those disabilities associated with the purportedly disabling event shall be considered. If the member is denied an accidental disability retirement application but qualifies for an ordinary disability retirement based on the disabilities associated with the purportedly disabling event identified on the original accidental disability application, no additional application needs to be filed, pursuant to (g)6 below. The required documentation must be received within six months of the date of filing the disability retirement application. If it is not received, the retirement will be canceled and the member will be required to complete a new disability application for a future retirement date;

2. An application for a mental health disability retirement must be supported by at least two medical reports. One must be provided by the member's personal or treating psychiatrist or psychologist on a form prescribed by the Division. The other "medical report" may be in the form of either hospital records supporting the claim of disability, a report from a second psychiatrist or psychologist on a form prescribed by the Division, or a report from the member's personal or treating physician, or licensed clinical social worker. The required documentation must be received within six months of the date of filing the disability retirement application. If it is not received, the retirement will be canceled and the member will be required to complete a new disability retirement application for a future retirement date. The medical condition described on the member's retirement application must correspond to the medical reports submitted in support of the member's disability retirement application;

3. To qualify for disability retirement, a member must be unable to perform his or her regular and assigned duties due to a permanently disabling medical condition present at the time the member separates from service, as a result of which disabling condition the member should be retired. Termination of employment, voluntary or involuntary, that was caused by any reason other than the claimed disability disqualifies a member from filing for a disability retirement. A member whose employment ended after his or her employer initiated disciplinary action, or who was the subject of criminal or administrative charges or party to a settlement resulting in resignation or termination, is considered to have separated from service as a result of the employer action, charges, or settlement, and not due to a disability, unless the action, charges, or settlement is shown to be a result of the disability. Any agreement by settlement or by forfeiture of office by an administrative body or court would also preclude the member's eligibility for disability, as the member would not be able to comply with N.J.S.A. 43:15A-44;

4. Under certain circumstances, members who have discontinued service may be entitled to file for a disability retirement. Following the filing of a disability retirement application, a vested member enrolled prior to May 21, 2010, who has not withdrawn contributions from the PERS, and has discontinued service for more than two consecutive years, and who was otherwise eligible for a disability retirement at the time service was discontinued, shall be approved to receive disability retirement benefits by the Board, if:

i. The applicant demonstrates to the satisfaction of the Board that the applicant was physically or mentally incapacitated for the performance of duty at the time service was discontinued, and continues to be so incapacitated, with the same disability or disabilities, at the time of filing; and

ii. The applicant factually demonstrates to the satisfaction of the Board that service was discontinued because of the disability or disabilities;

5. A member filing for an accidental or ordinary disability retirement shall not file a separate application for any other type of retirement, including one based on any other allegedly disabling condition, while the original disability retirement application is pending. A separate application can be filed only for a date subsequent to withdrawal of the previous application.

i. An application for a disability retirement will be forwarded to the Board for consideration only when all documentation is received. The Division will schedule a medical examination for the purpose of providing additional information to the Medical Review Board to make a determination about a disability retirement application. The IME scheduled by the Division will be provided at no cost to the applicant; and

6. If a disability retirement application is denied by the Board and the applicant qualifies for any other retirement benefit, the applicant must submit a written statement accepting the alternate retirement type. If the applicant submits the written statement within 30 days of the Board's decision, the applicant may retain the retirement date designated on the disability retirement application. If a member is denied an accidental disability retirement, but qualifies for an ordinary disability retirement based on the accidental disability application, the ordinary disability retirement will be granted, and no additional application will be required.

(h) Retired members who return to public employment shall have their previous retirement allowances cancelled and be reenrolled in the System, pursuant to N.J.S.A. 43:15A-44, for those who retired on disability retirements, or N.J.S.A. 43:15A-57.2, for those who retired on early, service, veteran, or deferred retirements.

(i) A member who previously retired pursuant to (a) through (d) above and is reenrolled pursuant to (h) above must file a new retirement application with the Division in order to initiate payment of the retirement allowance. Except in the case of disability retirement, the previous retirement allowance shall then be reinstated, and the new retirement allowance, based on the member's subsequent covered employment, shall commence. If the member retained the same membership level and account upon returning to employment, the previous and subsequent retirement allowances shall then be combined and paid in one monthly benefit check. If the member is enrolled under a different membership level and account, the accounts will not be combined. The retirement allowance shall become effective on the first of the month following receipt of the application unless a future date is requested.

(j) If the total amount of retirement allowances received by a member or beneficiary under the option selected is less than the value of the member's contributions and interest on those contributions, the balance of contributions and interest shall be paid in a lump sum to the member's designated beneficiary or estate.

N.J. Admin. Code § 17:2-6.1

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

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