N.J. Admin. Code § 17:10-6.1

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

Section 17:10-6.1 - Interfund transfers; other State systems

(a) Interfund transfers between State-administered pension funds are permitted by reciprocal transfer arrangements. Such transfers would not apply where the member has credit in the present system for service after the date of enrollment in the new system or where a person has ceased to be a member of the present system before establishing sufficient service credit to be eligible for deferred retirement.

(b) The receipt of a public pension or retirement benefit is expressly conditioned upon the rendering of honorable service by a public officer or employee. Therefore, if the Board or Commission of an employee's former system determines that all or a portion of the employee's prior service is dishonorable, the Board or Commission of the employee's new State-administered retirement system shall disallow the purchase or transfer of that portion of prior service deemed dishonorable.

(c) Membership credit so transferred shall be included in the computation of a retirement allowance. Such credits cannot be used to satisfy the statutory requirements of those benefits which specifically require a minimum number of years of creditable service as a judge, unless such service was rendered in an eligible judicial position.

(d) The System will transfer membership to any State-administered system as follows:

1. Pursuant to N.J.S.A. 43:6A-14A, a member desiring to transfer credits to any State-administered retirement system must file an "Application for Interfund Transfer" within 90 days of the appointment, in place of the customary application for withdrawal of accumulated contributions, where the date on which the member takes the oath of office will represent the culmination of the appointment process. This application will void all possible credit against the present system when approved and the new membership shall commence in the new system.

2. The member's accumulated contributions, full interest included, less any outstanding loan, shall be transferred to the new system for the account of the respective member. Any outstanding loan or arrears obligation will be scheduled for repayment.

3. A statement reflecting the member's status as of the date of transfer shall accompany the transfer.

4. The member shall enjoy the same service credits established in the present system subject to the provisions of the new system.

5. A copy of the transfer application, together with a statement of the service credits being transferred, is to be forwarded to the new system.

(e) The present system will cause to be valued the reserves accrued to such employee as compared to the reserves required in the new system.

1. If the reserves accumulated or provided for in the present system are less than those required in the new system, the full reserve will be transferred.

2. If the reserves accumulated or provided for in the present system are more than required in the new system, only the amount required to establish the credit will be transferred.

(f) Years of credit will be subject to the benefit formula of the new system after transfer.

N.J. Admin. Code § 17:10-6.1

Amended by 48 N.J.R. 1315(a), effective 6/20/2016