N.J. Admin. Code § 17:5-2.1

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

Section 17:5-2.1 - Computation of insurance benefits

(a) Full salary credit will be given for the biweekly pay period in which a member dies, if the member was paid salary to the date of death and the salary paid was sufficient to permit a full normal biweekly pension deduction.

(b) For members who enrolled on or before May 21, 2010, death benefits and noncontributory insurance benefits shall be based on the base salary upon which contributions to the Annuity Savings Fund were actually made during the 26 biweekly pay periods immediately preceding the member's death, plus maintenance received by the member concurrent with such salary. Biweekly pay periods in which no salary was paid shall not be used in the calculation. For members who enrolled after May 21, 2010, death benefits and noncontributory insurance benefits shall be based on the average salary upon which pension contributions to the Annuity Savings Fund were made for any three fiscal years of membership preceding the member's death as an active member that provides the largest possible benefit.

(c) If a member dies during the first year following the date of enrollment, the insurance benefit shall be 3 1/2 times the member's base salary on which the member contributed or would have contributed immediately prior to death, plus the maintenance received by the member concurrent with such salary.

(d) Where a post-audit of insurance claim payments indicates the pension contributions reported by an employer were incorrect and resulted in the underpayment of an insurance claim to the member's designated beneficiary or estate, an additional check would be sent to the beneficiary for the value of the underpayment. Should any change or error in the records result in any member receiving from the pension fund more than he or she would have been entitled to receive had the records been correct, the Board of Trustees shall correct such error, as far as practicable, and shall adjust the payments payable to the member's designated beneficiary or estate pursuant to N.J.A.C. 17:1 -2.10.

(e) If a deceased member does not have an eligible surviving spouse, child or parent, then refunds of a deceased member's pension contributions will be made to the member's designated beneficiary.

(f) In computing the salary upon which pension contributions were based during the member's last year of service, a total of 26 biweekly pays will be used including any retroactive salary payments made which are attributable to those 26 pay periods. The total salary will be adjusted by multiplying the total by the factors supplied by the actuary; such adjustment will compensate for State biweekly payroll schedules.

N.J. Admin. Code § 17:5-2.1

Amended by 51 N.J.R. 1059(a), effective 6/17/2019