N.J. Admin. Code § 17:5-3.2

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

Section 17:5-3.2 - Enrollment after May 21, 2010; maximum compensation limit

(a) An employee who is enrolled into the SPRS on or after May 21, 2010, will be subject to the benefit changes as a result of 53:5A-3. A maximum compensation limit will be imposed on members of the system on or after May 21, 2010. The maximum amount will be the amount of base salary equivalent to the annual maximum wage contribution base for Social Security, pursuant to the Federal Insurance Contribution Act. A new member for whom this annual maximum will be reached in any year will become a participant of the Defined Contribution Retirement Program with regard to the remaining compensation, unless the member irrevocably elects to waive the participation. The amount of compensation over the maximum compensation will have a 5.5 percent deduction as a contribution to DCRP. When a member of the SPRS also becomes a participant in the DCRP, the life insurance and disability benefit provisions of that program will be available for that participant.

(b) Members enrolled in the SPRS, who also participate in the DCRP will receive service credit in their corresponding SPRS account, and will be eligible to retire under the rules of the SPRS. The salaries used in the calculation of the retirement benefits are limited to the maximum compensation amounts in effect when the salary is earned.

(c) An employee who is enrolled into the SPRS on or after May 21, 2010 will have the member's retirement allowance calculated on the average annual compensation received by the member during any three fiscal years of membership providing the largest possible benefit.

N.J. Admin. Code § 17:5-3.2

Repealed by R.2001 d.128, effective 4/16/2001.
See: 33 N.J.R. 204(a), 33 N.J.R. 1205(a).
Section was "Revaluation".
New Rule, R.2012 d.042, effective 2/21/2012.
See: 43 N.J.R. 2568(a), 44 N.J.R. 507(c).
Section was "Reserved".