N.J. Admin. Code § 17:3-5.6

Current through Register Vol. 56, No. 23, December 2, 2024

Section 17:3-5.6 - Methods of payment

(a) Methods of payment for purchases include the following:

1. Lump sum;

2. Partial lump sum; balance by additional payroll deductions; or

3. Extra deductions equal to at least one-half of the full regular pension deduction for a maximum period of 10 years.

(b) Additional payroll deductions under (a)2 or 3 above will include regular interest for the term of the installment.

(c) Lump sum payments and partial lump sum payments can include the direct rollover of transfer of tax-deferred contributions from financial plans that qualify under terms specified under § 401(a)(31) (2007) of the Internal Revenue Code. All payments remitted to the Division must be accompanied by a properly completed Direct Rollover/Trustee-to-Trustee Transfer of Funds for the Purchase of Additional Service Credit form. Checks remitted to the Division without the required forms shall be returned to the member. A lump sum rollover payment for a purchase cannot exceed the lump sum cost of that purchase. Checks in an amount greater than the lump sum cost of the purchase shall be returned to the member.

N.J. Admin. Code § 17:3-5.6

Amended by 47 N.J.R. 2876(a), effective 11/16/2015