N.J. Admin. Code § 5:37-10.7

Current through Register Vol. 56, No. 24, December 18, 2024

Section 5:37-10.7 - Return to participants

(a) Plan funds, less administrative expenses, including all amounts deferred and any and all return on investment of the plan funds shall be credited to the participants' accounts. Such credit shall be made in a manner that is prorated in a non-discriminatory manner. After the first year of program operation, the contractor or plan manager shall not permit the cumulative plan balance to be less than the total cumulative sum of all amounts deferred by all participants, or any participant's account to have a balance less than the cumulative sum of all the individual participant's deferrals since participation in the plan commenced. The only exceptions to this last statement shall be:

1. Variable annuities which guarantee that during the first three years of fund accumulation a participant will have distributed, upon withdrawal from the plan, an amount equal to the amount deferred;

2. A variable annuity with no such guarantee which is offered as part of a fixed and variable product line; and

3. Life insurance contracts.

N.J. Admin. Code § 5:37-10.7

Amended by R.1999 d.58, effective 3/1/1999.
See: 30 New Jersey Register 3989(a), 31 New Jersey Register 673(b).
In (a), substituted a reference to contractors and plan managers for a reference to administrators in the third sentence of the introductory paragraph.