N.J. Admin. Code § 17:8-3.1

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

Section 17:8-3.1 - Retirement options

(a) At retirement a participant shall be paid a variable life annuity unless he or she files a SACT Application for Settlement at Retirement Form with the Division of Pensions and Benefits prior to retirement requesting:

1. A lump-sum settlement; or

2. The actuarial equivalent as a lesser annuity for life with the provision that:

i. In the event of the death of the retirant prior to the expiration of five years from the effective date of the annuity, the annuity will be continued to his designated beneficiary for the remainder of the five-year period.

ii. In the event of the death of the retirant prior to the expiration of 10 years from the effective date of the annuity, the annuity will be continued to his designated beneficiary for the remainder of the 10-year period.

iii. Upon his or her death, the same variable annuity shall be continued throughout the life of and paid to a natural person as he or she shall nominate by written designation duly acknowledged and filed with the Trust at the time of his or her retirement.

iv. Upon his death, one half of his variable annuity shall be continued throughout the life of and paid to such person as he shall nominate by written designation duly acknowledged and filed with the council at the time of his retirement.

3. An estate may not be designated as beneficiary under either the five year or 10-year certain and life thereafter options. However, if an estate should become the beneficiary under either of these options, the present value of the number of units payable for the remaining period would be determined according to factors established by the trust and a lump sum settlement would be made at the unit value as of the end of the month of death.

(b) At retirement, a participant may select only a single retirement option for the settlement of his or her account. If a participant has a tax-sheltered, a regular and/or qualified voluntary employee contributions (QVEC) account, such retirement option shall be for the settlement of the combined accounts.

(c) If a participant elects to use funds available in his or her variable accumulation account to satisfy all or any portion of a pension loan, any remaining balance in the variable accumulation account shall be distributed to the participant in the form of a lump sum settlement.

N.J. Admin. Code § 17:8-3.1

Amended by R.1997 d.294, effective 7/21/1997.
See: 29 New Jersey Register 1685(a), 29 New Jersey Register 3269(a).
In (b), substituted ", a regular and/or qualified voluntary employee contributions (QVEC) account" for "and a regular supplemental annuity collective trust account"; and added (c).

Amended by 53 N.J.R. 1921(b), effective 11/15/2021