N.J. Admin. Code § 17:8-1.5

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

Section 17:8-1.5 - Variable Accumulation Account

(a) All contributions received from participants shall be credited to the Variable Accumulation Account and shall be converted into a number of equity units.

(b) An individual accumulation account will be maintained for each participant.

(c) Participant's contributions shall be converted into equity units quarterly on the basis of the value per equity unit at the end of the quarter during which the contributions are made.

(d) For eligible transfers from authorized tax-deferred annuity providers, the amount transferred shall be converted into equity units monthly on the basis of the value per equity unit at the end of the month during which the transfer is received by the Division of Pensions and Benefits.

(e) The total number of equity units credited to a participant's accumulation account will be increased by one third of one percent per month.

(f) In the event of termination of an accumulation account due to retirement prior to the end of a quarter, contributions since the first of the quarter shall be converted into equity units on the basis of the value per equity unit as of the end of the month of termination.

(g) Upon termination for death or withdrawal, the value of a participant's accumulation account shall be the sum of the equity units credited to his account as of the first day of the current quarter, increased by one third of one percent per month to the end of the month of termination, multiplied by the value per equity unit as of the end of the month of termination plus the participant's contributions during the current quarter.

(h) For eligible transfers to authorized tax-deferred annuity providers, the amount designated by the participant for transfer shall not exceed the value of a participant's accumulation account calculated by taking the sum of the equity units credited to an account as of the first day of the current quarter, increased by one-third of one percent per month to the end of the month of transfer, multiplied by the value per equity unit as of the end of the month of transfer.

(i) The total number of equity units in force in the Variable Accumulation Account at the end of each month shall be determined as follows:

1. The number of equity units in force at the start of the month; plus

2. The number of equity units credited as of the first of the month for participant's contributions received during the preceding quarter, if any; less

3. The number of equity units paid out in the current month on account of terminations for death or withdrawals during the preceding month; less

4. The number of equity units transferred to the Variable Benefit Account as of the first of the month for retirements during the preceding month; plus

5. One third of one percent of the balance so obtained.

N.J. Admin. Code § 17:8-1.5

Amended by R.1997 d.294, effective 7/21/1997.
See: 29 New Jersey Register 1685(a), 29 New Jersey Register 3269(a).
Inserted new (d) and (h), recodified former (d) through (f) and (g) to (e) through (g) and (i).