N.J. Stat. § 43:16A-53
The board of trustees is hereby authorized and permitted to purchase from one or more life insurance companies, as determined by him, a group life insurance coverage to provide for the death benefits specified in sections 5 and 6, subsection (3) of section 7, section 9, and subsection (5) of section 10 of P.L. 1944, c.255 (C.43:16A-5 through C.43:16A-7, C.43:16A-9, and C.43:16A-10) and sections 16 and 17 of P.L. 1964, c.241 (C.43:16A-11.1 and C.43:16A-11.2). Such group life insurance coverage may be provided under one or more policies issued to the board of trustees specifically for this purpose or, in the discretion of the board of trustees, under one or more policies issued to the board of trustees which provide group life insurance coverage for members of one or more other retirement systems of the State of New Jersey. Whenever such policy or policies of group insurance shall be in effect, the benefits payable thereunder shall be in lieu of the above mentioned death benefits provided by said sections. Any dividend or retrospective rate credit allowed by an insurance company shall be credited in an equitable manner to the special insurance funds from which premiums are paid.
N.J.S. § 43:16A-53