N.J. Admin. Code § 17:7-1.2

Current through Register Vol. 57, No. 1, January 6, 2025

Section 17:7-1.2 - Program consists of five plans

(a) The Alternate Benefit Program consists of five benefit plans: the ABP Retirement Plan; the New Jersey Additional Contributions Tax-Sheltered Program (ACTS); the Group Life Insurance Plan (the "Group Life Insurance Plan"); the Group Long-Term Disability Benefit Plan (the "Group Long-Term Disability Plan"); and the ABP Pre-1995 Annuity Contracts Plan (Closed Plan). Assets held under the Program for the ABP Retirement Plan shall not be available for the payment of premiums, benefits, or administrative expenses with respect to the Group Life Insurance Plan, the Group Long-Term Disability Plan, and/or the New Jersey Additional Contributions Tax-Sheltered Program. Assets held under the Program for the New Jersey Additional Contributions Tax- Sheltered Program shall not be available for the payment of premiums, benefits, or administrative expenses with respect to the Group Life Insurance Plan, the Group Long-Term Disability Plan, and/or the Retirement Plan.

1. ABP Retirement Plan. The ABP Retirement Plan is a plan of retirement benefits for the benefit of eligible employees and their beneficiaries. The ABP Retirement Plan is intended to be a tax-qualified defined contribution pension plan under IRC § 401(a) et seq. The Plan Administrator intends to maintain the ABP Retirement Plan as a profit-sharing plan that qualifies for favorable income tax treatment under IRC § 401(a)(27). The ABP Retirement Plan is an individual account plan, which provides for an individual account for each participant and for benefits based solely upon the amount of contributions, investment gains and losses, fees, and expenses allocated to the participant's account. Assets with respect to the ABP Retirement Plan shall be used solely for the purpose of providing benefits under the ABP Retirement Plan and for paying the administrative expenses of the ABP Retirement Plan.

2. New Jersey Additional Contributions Tax-Sheltered Program (ACTS). ACTS is a plan for which the applicable governing body of a public institution of education can reduce an employee's base salary pursuant to the agreement and shall pay an amount equal to the amount agreed upon for the salary reduction as an employer contribution to the issuer of the employee's annuity. The ACTS may also include employer contributions in addition to salary reduction contributions. The ACTS is an IRC § 403(b) plan. Assets with respect to the ACTS shall be used solely for the purpose of providing benefits under the ACTS and for paying the administrative expenses of the ACTS.

3. Group Life Insurance Plan. The Group Life Insurance Plan is a plan for the provision of group life insurance benefits for eligible employees.

4. Group Long-Term Disability Benefit Plan. The Group Long-Term Disability Benefit Plan is a plan for the provision of group long-term disability insurance benefits for eligible employees.

5. Closed Plan. The Closed Plan is a grandfathered IRC § 403(b) plan providing individual annuity contracts for all public institutions of higher education in the State.

N.J. Admin. Code § 17:7-1.2

Amended by 50 N.J.R. 1616(a), effective 7/16/2018