N.J. Admin. Code § 17:7-5.2
Current through Register Vol. 57, No. 1, January 6, 2025
Section 17:7-5.2 - Employee contribution; pick-up in ABP Retirement Plan(a) Employee contributions will be made as follows: 1. Rutgers, the State University; the New Jersey Institute of Technology; University Hospital; and Rowan University shall reduce the compensation of each participant in the ABP Retirement Plan and pay over to the insurers or mutual fund companies for the benefit of the participant an employee contribution for the retirement annuity contract or contracts equal to five percent of the participant's base salary. The intervals for payroll shall be determined by the respective school governing bodies.2. The Division shall provide for reductions from the compensation of each participant in the ABP Retirement Plan employed by the State and county colleges of an employee contribution equal to five percent of the participant's base salary and pay this amount to the insurers or mutual fund companies for the individual's retirement annuity contract or contracts. The intervals for payroll shall be determined by the Division.(b) Each employer shall pick-up employee contributions with respect to all base salary paid after the effective date with respect to participants. The employee contributions so picked-up shall be treated as employer contributions pursuant to IRC § 414(h)(2). The employer shall pay the picked-up contributions directly to the Plan Administrator, instead of paying such amounts to the participants, and such contributions shall be paid from the same funds that are used in paying salaries to participants. Such contributions, although designated as employee contributions, shall be paid by the employer in lieu of employee contributions. Participants may not elect to receive such contributions directly instead of having them paid by the employer to the ABP Retirement Plan. Employee contributions so picked-up shall be treated for all purposes of the ABP Retirement Plan and State law, but not for Federal tax law, in the same manner as employee contributions made without a pick-up. N.J. Admin. Code § 17:7-5.2
Adopted by 47 N.J.R. 905(b), effective 5/4/2015.