N.J. Admin. Code § 17:5-5.5

Current through Register Vol. 56, No. 11, June 3, 2024

Section 17:5-5.5 - Outstanding loan

(a) Any member who has an outstanding loan balance at the time of retirement shall repay the loan balance, with interest, as follows:

1. In full as provided by 53:5A-29;

2. By deductions from retirement benefit payments of the same monthly amount deducted from the member's compensation immediately preceding retirement until the loan balance, with interest, is repaid as authorized in accordance with 53:5A-29. If the member does not request repayment in full, repayment is by deductions in the same monthly amount deducted from the member's compensation immediately preceding retirement.

(b) If a retirant dies before the loan balance, with interest, is repaid, the remaining balance shall be paid first from the pension system group life insurance proceeds, and then from the proceeds of any returned contributions payable on account of the retirant to the beneficiary or estate and then from the proceeds of any surviving spouse benefit. If multiple beneficiaries are to receive these benefits, each beneficiary shall share in repaying the remaining balance in the same proportion in which they are entitled to the benefits.

N.J. Admin. Code § 17:5-5.5

Amended by R.1997 d.29, effective 1/21/1997.
See: 28 N.J.R. 4385(a), 29 N.J.R. 377(a).
Added (a)2i; rewrote (b); and added (c) and (d).
Amended by R.2000 d.115, effective 3/20/2000.
See: 32 N.J.R. 28(a), 32 N.J.R. 1047(c).
In (a)2.i., inserted "and State" following "Federal" and deleted ". If the member does not request repayment in full, repayment shall be made by retention of retirement benefits." following "tax withholding" and added (a)3.; deleted former (b) and (c); and recodified former (d) as (b).
Amended by R.2001 d.128, effective 4/16/2001.
See: 33 N.J.R. 204(a), 33 N.J.R. 1205(a).
In (a), deleted former 2 and recodified former 3 as new 2.
Amended by R.2012 d.042, effective 2/21/2012.
See: 43 N.J.R. 2568(a), 44 N.J.R. 507(c).
In (a)2, substituted "in accordance with N.J.S.A. 53:5A-29" for "by P.L. 1999 c.132".