N.J. Admin. Code § 17:5-4.2

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

Section 17:5-4.2 - Optional purchases of eligible service

(a) Notwithstanding the provisions at (a)5 and 6 below, the types of purchases indicated below will be calculated on the basis of the actuarial factor established for the member's age at the time of the purchase times the member's current salary:

1. Former SPRS membership credit: Service covered by former membership in this system will be included in the computation of retirement benefits in the same manner and value as current service. All or a portion of the service from a former membership may be included in the purchase of such service.

2. Former membership service established in another State-supported retirement system: In accordance with P.L. 2019, c. 251, for all retirements effective on November 1, 2019, and thereafter, such service can be used to qualify for retirement under the minimum service requirements. All or a portion of the service from a former membership may be included in the purchase of such service. This service shall be the same as creditable service as a full-time commissioned officer, noncommissioned trooper, or trooper rendered as a member.

i. Any active member shall be permitted to purchase such credits by paying, into the annuity savings fund, the amount required by applying the factor, supplied by the actuary, as being applicable to the member's age at the time of the purchase, to the member's salary at that time.

3. Leaves of absence without pay: A member must request to purchase a leave of absence without pay within one year following the member's return to service. A member may purchase:

i. All or a portion of the period of the leave for personal reasons that is less than three months. Maternity leave may consist of a personal leave component and a personal reasons component (for child care). Child care is considered a leave for personal reasons.

ii. All or a portion of the period of the leave up to two years for personal illness. The Division may require proof that the illness existed for the length of the leave. Members who apply to purchase any period of maternity leave as personal illness must provide certification from their physician, verifying that the member was disabled during the requested purchase period, due to pregnancy or childbirth. Absent physician certification, three months is the maximum allowable period of purchase for maternity leave for personal reasons.

4. Military service: A member may purchase credit in the retirement system for military service in the Armed Forces of the United States prior to becoming a member. A member may purchase credit for all or a portion of such service, up to 10 years, plus an additional five years if the member qualifies as a veteran with certain wartime military service. All members must provide the Division with a DD-214 Form, which includes a member's character of service, active/entry dates of service, and discharge/ending dates of service. The SPRS credit purchased for prior military service will be equivalent to service in the State Police as a member of SPRS in qualifying for retirement benefits.

i. The Federal Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) provides that a member who leaves employment to serve on active duty is entitled to purchase service credit for the period of uniformed service. If the member makes the pension contributions that would have been normally required upon return and within the time frames specified under USERRA, the military service will count for vesting, retirement eligibility, the calculation of the retirement benefit and, if applicable, health benefits eligibility, as though the member had not left. When a member returns from uniformed military service to SPRS-covered employment, the employer should notify the Division no later than 30 days after the member's return by submitting a Request for USERRA-Eligible Service form. Once notified, the Division will provide the member with a quotation for the cost for purchasing the service credit pursuant to N.J.A.C. 17:1-3.10.

5. Public employment in another state: In accordance with P.L. 2021, c. 399, for all retirements effective February 1, 2022, and thereafter, such service credit purchased will be equivalent to service credit acquired in the service in the State Police, as of the date of the purchase. A member may purchase service credit for all, or a portion of, such service up to the nearest number of years and months, but not to exceed five years. However, this service is only eligible for purchase if a member does not have a vested right to retirement benefits in another retirement system based in whole, or in part, upon that service. A member may purchase service credit for the service by paying into the annuity savings fund the amount required by applying the factor, supplied by the actuary as being applicable to the member's age at the time of the purchase, to the member's salary at the time, or to the highest annual compensation for service in this State for which contributions were made during any higher fiscal year, whichever is greater.

6. United States Government: In accordance with P.L. 2021, c. 399, for all retirements effective February 1, 2022, and thereafter, such service credit purchased will be equivalent to service in the service in the State Police, as of the date of the purchase. A member may purchase service credit for all or a portion of such service, up to five years. However, this service is only eligible for purchase if a member does not have a vested right to retirement benefits in another retirement system based in whole, or in part, upon that service. A member may purchase service credit for the service by paying, into the annuity savings fund, the amount required by applying the factor, supplied by the actuary, as being applicable to the member's age at the time of the purchase, to the member's salary at the time, or to the highest annual compensation for service in this State for which contributions were made during any higher fiscal year, whichever is greater.

N.J. Admin. Code § 17:5-4.2

Amended by R.2000 d.114, effective 3/20/2000.
See: 32 N.J.R. 27(a), 32 N.J.R. 1047(b).
In (a), in the introductory paragraph, substituted "the member's" for "his"; in 1., inserted "or a portion of" following "All" and substituted "may" for "must"; in 2., deleted "former members of the State Police Retirement and Benevolent Fund" following "to qualify", inserted "or a portion of" following "All", substituted "may" for "must" and added the last sentence; in 3., inserted "without pay:" and added the last two sentences; in 3.i., inserted "or a portion" following "All", substituted "is less than three months." for "does not exceed two months" and added the last sentence; in 3.ii., inserted "or a portion" following "All", deleted "or maternity" following "illness" and added the last sentence.
Amended by R.2012 d.042, effective 2/21/2012.
See: 43 N.J.R. 2568(a), 44 N.J.R. 507(c).
In (a)1, substituted "SPRS" for "State Police Retirement System".
Amended by R.2019 d.066, effective 6/17/2019.
See: 51 N.J.R. 349(a), 51 N.J.R. 1059(a).
Rewrote (a)3, and added (a)4.
Amended by R.2020 d.117, effective 11/2/2020.
See: 52 N.J.R. 1012(a), 52 N.J.R. 2010(b).
In (a)2, substituted "In accordance with P.L. 2019, c. 251, for all retirements effective on November 1, 2019, and thereafter, such service can" for "Such service cannot", and deleted "of 20 years at age 50 or 'Special Retirement' " from the end of the first sentence.

Amended by 55 N.J.R. 2354(b), effective 11/20/2023