N.J. Admin. Code § 17:4-5.4

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

Section 17:4-5.4 - Methods of payment for purchase of service credit

(a) Methods of payment include:

1. Lump sum;

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

3. Additional payroll 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 or transfer of tax-deferred contributions from financial plans that qualify under terms specified under I.R.C. § 401(a)(31). All payments remitted to the Division must be accompanied by properly completed Direct Rollover Transfer Request for the Purchase of 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 § 17:4-5.4

Amended by R.2001 d.393, effective 11/5/2001.
See: 33 N.J.R. 2612(a), 33 N.J.R. 3757(a).
In (a)2, deleted "of $ 250.00 or more".
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), substituted "payment" for "repayment" in the introductory paragraph, added a new 4, and recodified former 4 as (b).
Amended by R.2011 d.235, effective 9/6/2011.
See: 43 N.J.R. 1177(a), 43 N.J.R. 2364(b).
Section was "Methods of payment". In (a)2, substituted "additional" for "extra", and inserted "or" at the end; in (a)3, substituted "Additional payroll" for "Extra" and a period for a semicolon at the end; added new (b); deleted former (b); recodified (a)4 as (c); and rewrote (c).