N.J. Admin. Code § 17:7-6.1

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

Section 17:7-6.1 - Vesting schedules

(a) The Division may, in its sole discretion, qualify the ABP Retirement Plan under IRC § 401(a) of the Federal Internal Revenue Code (26 U.S.C. § 401(a)). In such a case, all contributions to the retirement annuity contracts shall be made as soon as the employee is eligible and has filed application forms required by the annuity pension provider.

1. A participant's interest in that portion of his or her account attributable to employee contributions shall immediately become and shall at all times remain fully vested and nonforfeitable.

2. A participant's interest in that portion of his or her account attributable to employer contributions shall become and shall remain fully vested and non-forfeitable on the date the participant commences the second year of employment. However, if at the time of the participant's initial employment, the participant either participates in a program substantially similar to the ABP Retirement Plan or is a member of another State-administered pension fund or retirement system, the participant's interest in that portion of his or her account attributable to employer contributions shall be immediately and fully vested.

3. Notwithstanding the vesting schedule described in (a)2 above, a participant's interest in that portion of his or her account attributable to employer contributions shall be vested and non-forfeitable upon his or her attainment, while employed by an employer, of age 65.

N.J. Admin. Code § 17:7-6.1