N.J. Admin. Code § 18:26-6.14

Current through Register Vol. 56, No. 11, June 3, 2024

Section 18:26-6.14 - State pensions

(a) All payments at death under the Teachers' Pension and Annuity Fund, the Public Employees' Retirement System of New Jersey, and the Police and Firemen's Retirement System of New Jersey, and such other State, county, and municipal systems as may have a tax exemption clause as broad as that of the three major State systems addressed in this section, whether such payments either before or after retirement are made on death to the employee's estate or to his or her specifically designated beneficiary, are exempt from the New Jersey transfer inheritance tax.

(b) All other benefit plans that do not have an exemption clause as broad as those under (a) above, such as, but not limited to, TIAA-CREF, are not exempt.

(c) The benefit payable under the supplementary annuity plan of the State of New Jersey is not considered a benefit of the Public Employees' Retirement System and is taxable whether paid to a designated beneficiary or to the estate.

(d) The death benefits paid by the Social Security Administration or Railroad Retirement Board to the spouse of a decedent are also exempt from the New Jersey transfer inheritance tax. For purposes of filing a return these amounts neither need to be reported nor are they to be deducted from the amount claimed as a deduction for funeral expenses. In all other cases the death benefit involved should either be reported as an asset of the estate or deducted from the amount claimed for funeral expenses.

N.J. Admin. Code § 18:26-6.14

Adopted by 50 N.J.R. 1624(a), effective 7/16/2018