N.J. Admin. Code § 17:6-16.16

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

Section 17:6-16.16 - Power-of-attorney

(a) A power-of-attorney is not effective to permit the attorney-in-fact to submit any claim, instruction, direction, or consent under the Program or otherwise act regarding the Program, unless the Plan Administrator, in his or her discretion, finds that the power-of-attorney is acceptable.

(b) Without limiting the effect of the preceding sentence, the Plan Administrator will not accept a power-of-attorney until he or she finds that the power-of-attorney:

1. Is a properly executed and filed durable power-of-attorney pursuant to the law of the jurisdiction in which it was created, which will remain effective despite the later incapacitation or disability of the participant;

2. Indemnifies the Plan Administrator and every person that may rely on the durable power-of-attorney against any liability that may arise out of the Plan Administrator's acceptance of the power-of-attorney;

3. Contains the following provision or a substantially similar provision: "No person who may act in reliance upon the representations of my attorney-in-fact for the scope of authority granted to the attorney-in-fact shall incur any liability as to me or to my estate as a result of permitting the attorney-in-fact to exercise this authority, nor is any such person who deals with my attorney-in-fact responsible to determine or ensure the proper application of funds or property."; and

4. Grants specific authority for the attorney-in-fact to conduct transactions with the participant's retirement plan or employee benefit plan.

(c) A general grant of power in the power-of-attorney for the attorney-in-fact to handle the participant's affairs, without specific authorization in the power-of-attorney to deal with the member's retirement benefits, does not authorize the attorney-in-fact to conduct any business on behalf of the participant with the Program.

(d) The attorney-in-fact may not designate himself or herself as the beneficiary for a retirement benefit unless the power-of-attorney authorizes the attorney-in-fact to designate himself or herself as a retirement beneficiary or authorizes the attorney-in-fact to give gifts of the participant's property to himself or herself.

N.J. Admin. Code § 17:6-16.16