N.J. Admin. Code § 17:4-5.3

Current through Register Vol. 56, No. 17, September 3, 2024

Section 17:4-5.3 - Optional purchases of eligible service

(a) A shared-cost purchase is one in which the member pays only the employee's share and not the employer's share of the purchase. A member may purchase all or a portion of such eligible service. A share-cost purchase will be calculated on the basis or the actuarial purchase factor established for the member's age at the time of the purchase request times the higher of either the member's current annual base salary or highest fiscal year base salary. The following types of purchases are shared-cost purchases:

1. Former membership credit with a New Jersey State-administered retirement system and any service which would have been eligible for purchase under that membership;

2. Former service with any other employer that was not certified for membership but which would have qualified on an optional or compulsory basis at the time the service was rendered;

3. Temporary Service:

i. "Special Police Officer" service cannot be purchased; and

ii. Police academy or firefighting training cannot be purchased unless the training was rendered while serving and receiving compensation in an eligible New Jersey police or firefighting position;

4. Leaves of absence without pay when:

i. The period of the leave is for personal reasons, which does not exceed 93 days. Childcare is considered leave for personal reasons; and

ii. The period of the leave is up to two years for personal illness. The Division may require proof from the employer that the illness existed for the length of the leave; and

5. Eligible out-of-State public employment, up to a total purchase of 10 years. Out-of-State service cannot be used to qualify for an ordinary disability retirement.

(b) The types of purchases indicated in (b)1 through 5 below are considered to be full-cost purchases. A member may purchase all or a portion of such eligible service. The lump sum purchase cost shall be calculated on the basis of the actuarial purchase factor established for the member's nearest age at the time of the purchase request times the higher of either the member's current actual base salary or highest fiscal year base salary. The computed lump sum purchase cost shall then be doubled to establish the full cost to the member. This cost is calculated in this manner as 43:16A-11.9, 11.11 and 11.12 provide that the employer shall not be liable for any costs of purchasing this service; therefore, the member must pay both the employee and employer share.

1. Active duty military service prior to enrollment. Active military service that is eligible for purchase means full-time duty in the active military service of the United States. Such term includes full-time training duty, and attendance, while in the active military service, at a school designated as a service school by law or by the Secretary of the military department concerned. It does not include periods of service of less than 30 days. It does not include weekend drills or annual summer training of a National Guard or reserve unit, nor does it include periods when the member was on-call. It also does not include time spent in the Reserved Officers Training Corps or as a cadet or midshipmen at one of the service academies. Military service before enrollment cannot be used to qualify for an ordinary disability retirement;

2. Employment with the Federal government. United States government service cannot be used to qualify for an ordinary disability retirement;

3. Service established under a local municipal or county retirement system within the State of New Jersey;

4. Up to three years of service established for certain periods of employment with public agencies or private non-profit agencies pursuant to 43:16A-11.9;

5. Up to three years of service credit for police members who were laid off in good standing and not by removal for cause or charges of misconduct or delinquency from employment in police service positions and subsequently rehired in PFRS police service positions in accordance with P.L. 1999, c. 338, 43:16A-11.1 3 or up to three years of service credit for firefighter members who were laid off in good standing and not by removal for cause or charges of misconduct or delinquency from employment in firefighter positions and subsequently rehired in PFRS firefighter positions in accordance with P.L. 2001, c. 228. The purchase cost is based on the actuarial purchase factor established for the member's nearest age at the time of the purchase request and the member's salary during the 12 months preceding the layoff. The computed lump sum purchase cost will then be doubled to establish the full cost to the member.

(c) A member shall be eligible to purchase an aggregate of up to 10 years of out-of-State public employment, military service and Federal employment provided that the member is not receiving nor is entitled to receive a retirement allowance for such service from any other public retirement system and provides proof to the Division of Pensions and Benefits that the member has withdrawn from such other system. A qualified veteran shall be eligible to purchase an additional five years of military service rendered during periods of war for an aggregate of 15 years of such service.

N.J. Admin. Code § 17:4-5.3

Repeal and New Rule, R.2000 d.294, effective 7/17/2000.
See: 32 N.J.R. 1321(a), 32 N.J.R. 2600(a).
Section was "Optional purchases of eligible service".
Amended by R.2001 d.394, effective 11/5/2001.
See: 33 N.J.R. 2254(a), 33 N.J.R. 3756(b).
In (a)1, inserted "New Jersey" preceding "State-administered" and added "and any service which would have been eligible for purchase under that membership"; in (b)5, deleted "officer" preceding "members" and substituted "in police service positions" for "as police officers", and also added a credit reference for firefighters for three years who were laid off in good standing.
Amended by R.2005 d.118, effective 4/18/2005.
See: 37 N.J.R. 39(a), 37 N.J.R. 1217(a).
In (a), inserted "from the employer" following "The Division may require proof" in 4ii; in (b), rewrote 1.
Amended by R.2006 d.130, effective 4/3/2006.
See: 37 N.J.R. 4521(a), 38 N.J.R. 1578(a).
In (a)3, added "and time attending the Police Academy or Firefighter training".
Amended by R.2008 d.373, effective 12/15/2008.
See: 40 N.J.R. 4678(a), 40 N.J.R. 6991(b).
Rewrote (a)3; in the introductory paragraph of (a)4, inserted "when"; in (a)4i, inserted the first occurrence of "is" and inserted a comma following the first occurrence of "reasons", and substituted "; and" for a period at the end; and in (a)4ii, inserted "is" and "and".
Amended by R.2011 d.235, effective 9/6/2011.
See: 43 N.J.R. 1177(a), 43 N.J.R. 2364(b).
In (b)1, substituted "National Guard" for "national guard".