N.J. Admin. Code § 17:4-7.1

Current through Register Vol. 56, No. 12, June 17, 2024

Section 17:4-7.1 - Interfund transfers/State-administered retirement systems

(a) The receipt of a public pension or retirement benefit is expressly conditioned upon the rendering of honorable service by a public officer or employee. Therefore, the Board of Trustees of the new State-administered retirement system shall disallow the transfer of all or a portion of prior service of any member of the former State-administered retirement system for misconduct occurring during the member's prior public service which renders that prior service, or part thereof, dishonorable.

(b) A member is eligible to transfer the former membership in a State-administered retirement system into the retirement system that covers the new eligible employment, if the member has first ended employment with the former employer, and has not taken another position subject to coverage in the State-administered retirement system of the former account which would have the same effective date as the membership in the new State-administered retirement system.

(c) The system will transfer membership to any State-administered retirement system as follows:

1. A member, desiring to transfer service credit and contributions from one State-administered retirement system to another, shall file an "Application of Interfund Transfer" and an "Enrollment Application" in place of the customary "Application for Withdrawal." This application will void all possible claims against the former system when approved and the new membership is commenced in the new system.

2. The member's accumulated contributions, less any outstanding loan, shall be transferred to the new system for the account of the respective member. Any outstanding loan, back deductions or arrears obligation will be scheduled for repayment.

3. A statement reflecting the member's status as of the date of transfer shall be prepared by the Withdrawal Section of the Division and a copy forwarded to the former account.

4. The member's service credits established in the former system shall be transferred to the new system.

5. The member is not eligible to transfer service credit if any of the following conditions apply:

i. The member has withdrawn the previous membership;

ii. The member has credit in the former system for service earned after the date of enrollment in the new system (concurrent service); or

iii. The account has expired; that is, it has been more than two years from the date of the last contribution and there was not sufficient service credit to be eligible for deferred retirement.

6. A data sheet shall be created for the member's new account that will indicate an interfund transfer from the member's former retirement system and the service credit transferred into the new membership account.

(d) The reserves accrued in the former system will be valued and compared to the reserves required in the new system.

1. If the reserves accumulated or provided for in the former system are less than those required in the new system, the full reserve will be transferred.

2. If the reserves accumulated or provided for in the former system are more than those required in the new system, only the amount required to establish the credit will be transferred.

(e) Years of credit will be subject to the benefit formula of the new system after transfer.

(f) A member is subject to all age and medical requirements for enrollment into the Retirement System before an interfund transfer into the Retirement System shall take effect.

N.J. Admin. Code § 17:4-7.1

Amended by R.2001 d.66, effective 2/20/2001.
See: 32 N.J.R. 4060(a), 33 N.J.R. 684(a).
Rewrote section.
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), substituted "new State-administered retirement system" for "present System" and "former State-administered retirement system" for "System"; recodified former (b)-(e) as (c)-(f), added (b); in (c)3, substituted "former" for "old" and in (c)6, substituted "former" for "previous"; throughout (c) and (d), substituted "former" for "present"; and in (f), deleted "Police and Firemen's" preceding "Retirement System before" and substituted "Retirement System" for "PFRS".