N.J. Admin. Code § 17:7-12.9

Current through Register Vol. 56, No. 23, December 2, 2024

Section 17:7-12.9 - Protection of persons who serve in a uniformed service

(a) An employee whose employment is interrupted by qualified military service under IRC § 414(u) or who is on a leave of absence for qualified military service under IRC § 414(u) may elect to make additional elective deferrals upon resumption of employment with the employer equal to the maximum elective deferrals that the employee could have elected during that period if the employee's employment with the employer had continued (at the same level of compensation) without the interruption or leave, reduced by the elective deferrals, if any, actually made for the employee during the period of the interruption or leave. Except to the extent provided under IRC § 414(u), this right applies for five years following the resumption of employment (or, if sooner, for a period equal to three times the period of the interruption or leave).

(b) A participant receiving a "differential wage payment" within the meaning of IRC § 414 (u)(12)(D) from the employer, shall be treated as a participant who is eligible to make elective deferrals and the differential wage payment shall be treated as compensation and includible compensation. This provision shall be applied to all similarly situated individuals in a reasonably equivalent manner. However, such participant shall be treated as having a severance from employment for purposes of electing to take a distribution from the ACTS during any period such individual is performing service in the uniformed services described in IRC § 3401(h)(2) (A) while on active duty for a period of more than 30 days. A participant who elects a distribution from pre-tax amounts in his or her account by reason of the preceding sentence may not make an elective deferral during the six-month period beginning on the date of the distribution.

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