N.J. Admin. Code § 17:7-12.16

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

Section 17:7-12.16 - Transfers to the ACTS

(a) At the direction of the employer, for a class of employees who are participants or beneficiaries in another plan under IRC § 403(b), the Plan Administrator may accept a transfer of assets to the ACTS only if:

1. The transferor plan provides for direct transfer of assets;

2. The participant is an employee or former employee of the employer;

3. The participant or beneficiary whose assets are being transferred has an accumulated benefit immediately after the transfer at least equal to the accumulated benefit with respect to that participant or beneficiary immediately before the transfer; and

4. The transferred amounts are subject to restrictions on distributions that are not less stringent than those imposed by the transferor plan.

(b) The Plan Administrator and any pension provider accepting such transferred amounts may require that the transfer be in cash or other property acceptable to it.

(c) The Plan Administrator or any pension provider accepting such transferred amounts may require such documentation from the other plan as it deems necessary to effectuate the transfer in accordance with Treasury Reg. § 1.403(b)-10(b)(3) and to confirm that the other plan is a plan that satisfies IRC § 403(b).

(d) To the extent provided in the investment options holding such transferred amounts, the amount transferred shall be held, accounted for, administered, and otherwise treated in the same manner as an elective deferral by the participant under the ACTS, except that the transferred amount shall not be considered an elective deferral under the ACTS in determining the maximum elective deferral under N.J.A.C. 17:7-12.7.

N.J. Admin. Code § 17:7-12.16

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