N.J. Stat. § 43:13-22.59

Current through L. 2024, c. 80.

Section 43:13-22.59 - Fund and contributions thereto

For the purpose of paying pensions pursuant to this act, a trust fund shall be and is hereby created and maintained in each city as defined in this act, as follows:

(a) In the case of a member who on the effective date of this act was a member of the pension fund in effect in said city under and by virtue of article 2, chapter 13, Title 43 of the Revised Statutes, there shall be deducted from every payment of salary to said member during the entire period of his membership subsequent to the effective date of this act and paid into the fund, the percentage of his salary applicable to his age at the time of his appointment, as follows:

Age at Appointment	% Rate of Contribution
Not exceeding 35 years ..............................	6%
Between 35 and 36 years .............................	6 1/2
Between 36 and 37 years ............................	7
Between 37 and 38 years .............................	7 1/2
Between 38 and 39 years .............................	8
39 and over ................................	8 1/2

(b) In the case of a member not included in (a) above, there shall be deducted from every payment of salary to said member during the entire period of his membership and paid into the fund the percentage of his salary applicable to his age at the time of his entrance into membership. These percentages shall be as follows:

Age at Entrance	% Rate of Contribution
0 and under ...................................	6.20%
21 . ............................................	6.20
22 . ............................................	6.30
23 . ............................................	6.40
24 . ............................................	6.50
25 . ............................................	6.60
26 . ............................................	6.70
27 . ............................................	6.80
28 . ............................................	6.90
29 . ............................................	7.05
30 . ............................................	7.25
31 . ............................................	7.35
32 . ............................................	7.55
33 . ............................................	7.75
34 . ............................................	7.95
35 . ............................................	8.15
36 . ............................................	8.35
37 . ............................................	8.65
38 . ............................................	9.00
39 . ............................................	9.30
40 . ............................................	9.50
41 . ............................................	9.60
42 . ............................................	9.60
43 . ............................................	9.65
44 . ...........................................	9.65
45 . ............................................	9.70
46 . ............................................	9.80
47 . ............................................	9.85
48 . ............................................	9.95
49 . ............................................	10.00
50 and over ....................................	10.15

(c) The city shall raise by taxation and pay yearly into the fund an amount equal to a certain percentage of the annual salaries of all members to be known as the normal contribution, and an additional amount equal to a percentage of such annual salaries to be known as the accrued liability contribution. The rates of such contributions shall be determined by actuarial valuation based on such interest rate and such mortality and service tables as shall be adopted by the commission.

Until the first actuarial valuation of the fund after the effective date of this act, the normal contribution shall be 7% and the accrued liability contribution shall be 18.81% of the annual salaries of all members.

On the basis of each actuarial valuation of the fund made after the effective date of this act, the normal contribution shall be that percentage of the annual salaries of all members computed to be required to provide the benefits payable on their account from city contributions currently accruing to such members. The accrued liability contribution shall be computed on the basis of the first actuarial valuation of the fund after the effective date of this act and shall be that percentage of the salaries of all members which shall equal 4% of that part of the total liabilities of the fund not dischargeable by the assets held, the contributions of members and the aforesaid normal contributions. After the accrued liability has been liquidated, the sole contribution payable by the city shall be the normal contribution which shall then be that percentage of the annual salaries of all members computed by deducting from the total liabilities of the fund the amounts of assets held and the present value of the future contributions of members, and dividing the remainder by 1% of the present value of the future salaries of all members.

N.J.S. § 43:13-22.59

L.1964, c.275, s.10; amended by L.1981, c.534, s.5, eff. 1/12/1982.