N.J. Admin. Code § 17:1-7.9

Current through Register Vol. 56, No. 23, December 2, 2024

Section 17:1-7.9 - Workers' compensation; reduction of retirement allowance

(a) A member who retires on an accidental disability retirement under the provisions of the applicable statutes governing the various State-administered retirement systems and who receives periodic benefits under the workers' compensation law after the date of retirement shall be subject to a reduction in the pension portion of the member's retirement allowance in the amount of the periodic benefits received after the date of retirement.

1. The reduction shall be a dollar-for-dollar reduction in the pension portion of the retirement allowance in the amount of the periodic benefits for the time period for which the periodic benefits are received.

2. If the retiree receives a retirement allowance without reduction and periodic benefits under the workers' compensation law for any time period after the date of retirement, the retiree shall repay to the retirement system the amount of the pension portion of the retirement allowance, which should have been subject to reduction under the applicable statute and this rule. If the retiree is unable to make payment in one sum, repayment may be scheduled over a period not to exceed five years. Regular interest, as defined by N.J.S.A. 43:15A-6n, 18A:66-2m, 43:16A-1(9), 53:5A-3p and 43:6A-3n, shall apply to all such repayment schedules. Any other schedule of repayment shall be referred to the Board of Trustees for consideration. In the event of the death of the retiree before full repayment of the amount required under this rule, the remaining balance shall be deducted from any death benefits payable on behalf of the retiree.

3. The reduction under this rule shall not affect the retiree's pension adjustment benefits or survivor benefits that may be payable upon the death of the retiree except for any remaining balance due to the Division as provided in (a)2 above.

(b) Any retiree or beneficiary receiving pension adjustment benefits based upon a reduced retirement allowance due to receipt of periodic workers' compensation benefits shall be entitled to receive pension adjustment benefits based upon the full retirement allowance.

N.J. Admin. Code § 17:1-7.9

Amended by R.2009 d.25, effective 1/5/2009.
See: 40 N.J.R. 4928(a), 41 N.J.R. 277(a).
In (a)2, inserted a comma following the second occurrence of "allowance", deleted the former second sentence and inserted the current second through fourth sentences.