N.J. Admin. Code § 17:7-6.2

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

Section 17:7-6.2 - Delayed vested contributions

(a) Employer contributions during a participant's first year of employment, including earnings credited thereto, shall be held in delayed vested status with the DSP specified by the participant. The first year of employment is considered to be completed after the participant has received credit in the Retirement Plan for 12 months of service.

(b) A participant who is in delayed vested status shall be ineligible to engage in the following transactions:

1. Loans from the ABP Retirement Plan;

2. Transfers of account accumulations between pension providers; and

3. Investments of employee contributions with more than one pension provider.

(c) The employer shall notify the DSP when a participant enters delayed vested status and then completes one year of service and is no longer in delayed vested status.

(d) An Alternate Benefit Program participant shall be immediately vested if the participant owns an annuity contract that contains employee and employer contributions based upon higher education employment or if participant is an active or vested member of a State-administered retirement system in New Jersey or the United States. The retirement contract must be in force and the member entitled to receive benefits at a future date. Employee contributions are remitted to the investment provider upon enrollment in the Alternate Benefit Program.

N.J. Admin. Code § 17:7-6.2