N.J. Admin. Code § 17:7-8.1

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

Section 17:7-8.1 - Distribution and repurchase

(a) The ABP Retirement Plan shall provide an option for cash surrender upon a participant's severance from employment. The cash surrender shall be applicable only for employee contributions and accumulations prior to the participant's 55th birthday. However, the cash surrender option shall be applicable to the full amount of all employee and employer contributions and accumulations after the participant's 55th birthday.

(b) In the event a participant in the ABP Retirement Plan terminates his or her employment for reasons other than retirement or disability and requests cash out of his or her annuity or annuities after the participant's 55th birthday, such cash-out amounts shall be allowed provided it meets the conditions under which the insurer or mutual fund company will repurchase annuities automatically.

1. Upon a participant's severance from employment, the participant is entitled to apply to receive his or her vested account(s) under the ABP Retirement Plan in a single sum distribution or, if permitted by the Plan Administrator, in a uniform manner with respect to participants similarly situated, in any other payment option, if any. The Plan Administrator shall prescribe the payment option(s), if any, in addition to the single sum distribution and the rules for determining the payments under any such payment options. The Plan Administrator may, but shall not be required to, permit a participant to postpone distribution of his or her account, but not beyond the required beginning date (as defined in N.J.A.C. 17:7-8.3).

2. Upon a participant's death with undistributed amounts in his or her ABP Retirement Plan Account, such amounts will be distributed in a single sum to the participant's designated beneficiaries, as soon as practicable following the receipt of notice by the Plan Administrator of the participant's death. Notwithstanding the foregoing, the Plan Administrator may, but is not required to, promulgate rules regarding the distribution of amounts in a participant's account following his or her death other than in an immediate single sum distribution, in a payment option consistent with N.J.A.C. 17:7-10.2.

3. Membership or participation in the Retirement Plan shall terminate and the individual shall be considered retired once he or she has elected to receive a cash distribution of the value of his or her accounts in a direct payout as a cash distribution, a rollover, or an annuity (or a combination of these distributions). Any such distribution shall only occur upon severance from employment, unless the individual is a participant in a transition to retirement program that meets the requirements of N.J.A.C. 17:7-8.11.

N.J. Admin. Code § 17:7-8.1

Adopted by 47 N.J.R. 905(b), effective 5/4/2015.

Amended by 47 N.J.R. 2393(a), effective 9/21/2015