PERS - Employers' Pensions and Benefits Administration Manual For the Public Employees' Retirement System
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Employers’ Pensions and Benefits
Pensions & Benefits
Administration Manual
For the Public Employees’ Retirement System
PERSEmployers’ Pensions and Benefits Administration Manual PERS
TABLE OF CONTENTS Purchase of Service Credit. . . . . . . . . . . . . . . . . . . 17 Making Changes to the
Retirement Application. . . . . . . . . . . . . . . . . . . . . 35
Enrollments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Waivers and Reinstatements
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Who May Purchase Service Credit? . . . . . . . . . . 18
of Retirement Benefits. . . . . . . . . . . . . . . . . . . . . 35
Employer Training . . . . . . . . . . . . . . . . . . . . . . . . . 5 What Types of Service are
Group Life Insurance Coverage. . . . . . . . . . . . . . . 36
Eligible for Purchase? . . . . . . . . . . . . . . . . . . . . . 18
General Eligibility Criteria. . . . . . . . . . . . . . . . . . . . 5
Noncontributory Group Life Insurance. . . . . . . . . 37
Cost and Procedures for
Civil Service vs. Non-Civil Service. . . . . . . . . . . . . 6
Purchasing Service Credit. . . . . . . . . . . . . . . . . . 20 Contributory Group Life Insurance. . . . . . . . . . . . 37
Part-Time Hourly Employees. . . . . . . . . . . . . . . . . 6
Application Process. . . . . . . . . . . . . . . . . . . . . . . 21 Enrolling in Group Life Insurance. . . . . . . . . . . . . 37
Part-Time Crossing Guards. . . . . . . . . . . . . . . . . . 6
Payment Options. . . . . . . . . . . . . . . . . . . . . . . . . 21 Naming a Beneficiary for
On-Call Employees . . . . . . . . . . . . . . . . . . . . . . . . 7 Group Life Insurance. . . . . . . . . . . . . . . . . . . . . . 38
Additional Purchase Guidelines. . . . . . . . . . . . . . 23
Long Term Substitutes and Withdrawal from Contributory Group
Employer Responsibilities . . . . . . . . . . . . . . . . . . 23
Replacement Teachers . . . . . . . . . . . . . . . . . . . . . 7 Life Insurance Coverage . . . . . . . . . . . . . . . . . . . 38
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Elected Officials. . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Seasonal Continuance of
Member Eligibility. . . . . . . . . . . . . . . . . . . . . . . . . 25 Group Life Insurance. . . . . . . . . . . . . . . . . . . . . . 38
Appointed Officials. . . . . . . . . . . . . . . . . . . . . . . . . 8
Applying for a Loan Through MBOS . . . . . . . . . . 25 Group Life Insurance While
Intermittent Employees . . . . . . . . . . . . . . . . . . . . . 9
IRS Loan Compliance Regulations . . . . . . . . . . . 26 on a Leave of Absence. . . . . . . . . . . . . . . . . . . . 38
Adjunct Faculty Members. . . . . . . . . . . . . . . . . . . 9
Payroll Certifications . . . . . . . . . . . . . . . . . . . . . . 27 Group Life Insurance for PERS Members
PERS Eligibility When
Suspended Without Pay. . . . . . . . . . . . . . . . . . . 39
Employed in a PFRS Title . . . . . . . . . . . . . . . . . . . 9 Leave of Absence or Off Payroll –
Group Life Insurance and Workers’
Law Enforcement Officers (LEOs). . . . . . . . . . . . 10 Revaluation of a Loan Schedule . . . . . . . . . . . . . 27
Compensation Without Pay. . . . . . . . . . . . . . . . . 39
Volunteer Firefighters and Calculation of an Additional Loan. . . . . . . . . . . . . 27
Group Life Insurance upon
Pension System Eligibility . . . . . . . . . . . . . . . . . . 10 Payment of a Loan Prior to Completion. . . . . . . . 27 Termination of Employment. . . . . . . . . . . . . . . . . 39
Multiple Membership . . . . . . . . . . . . . . . . . . . . . . 11 Retirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Taxability of Group Life Insurance
Contribution Rate. . . . . . . . . . . . . . . . . . . . . . . . . 12 over $50,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
General Information on
PERS Groups Closed to New Membership. . . . . 12 Retirement Benefits. . . . . . . . . . . . . . . . . . . . . . . 29 Waiving Noncontributory
PERS Enrollment Through EPIC . . . . . . . . . . . . 13 Proof of Age. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Group Life Insurance over $50,000. . . . . . . . . . . 40
Certification of Payroll Deductions. . . . . . . . . . . . 15 Retirement Estimates. . . . . . . . . . . . . . . . . . . . . . 29 Group Life Insurance Upon Retirement. . . . . . . . 41
Interfund and Intrafund Transfers. . . . . . . . . . . . . 15 Service, Early, Veteran, Conversion of Group Life Insurance . . . . . . . . . . 41
and Deferred Retirements. . . . . . . . . . . . . . . . . . 29
Veteran Status. . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Disability Retirements . . . . . . . . . . . . . . . . . . . . . 32
Credit for Military Service
After Enrollment. . . . . . . . . . . . . . . . . . . . . . . . . . 16 Pension Options. . . . . . . . . . . . . . . . . . . . . . . . . . 34
October 2021 Page 2PERS Employers’ Pensions and Benefits Administration Manual
Death Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Reporting a Death . . . . . . . . . . . . . . . . . . . . . . . . 44
Death in Service — Active Members. . . . . . . . . . 44
Employer Responsibilities . . . . . . . . . . . . . . . . . . 44
Accidental Death in Service. . . . . . . . . . . . . . . . . 44
Death in the Course of
Volunteer Service (VESP Benefit). . . . . . . . . . . . 45
Withdrawals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Employer Responsibilities . . . . . . . . . . . . . . . . . . 47
Inactive Membership . . . . . . . . . . . . . . . . . . . . . . 47
Extension of Inactive Membership
Period and Leave of Absence . . . . . . . . . . . . . . . 47
Workers’ Compensation and Withdrawal. . . . . . . 47
Page 3 October 2021Enrollments
PERS Employers’ Pensions and Benefits Administration Manual
OVERVIEW • Tier 1 Membership, for members enrolled before • The employee is in a permanent position or has
July 1, 2007, with a minimum annual salary of had 12 months of continuous temporary or provi-
The Public Employees’ Retirement System (PERS)
$1,500; sional service.
is a defined benefit pension fund established in 1955.
It is open to most State, county, municipal, authority, • Tier 2 Membership, for members enrolled on or Eligibility determinations are then based on whether or
and school board employees and elected officials who after July 1, 2007, and before November 2, 2008, not the employer uses Civil Service for hiring.
are not required to become members of any other New with a minimum salary of $1,500;
Jersey State-administered retirement system, i.e., the Visa Holders and PERS Membership Eligibility
• Tier 3 Membership, for members enrolled on or
Teachers’ Pension and Annuity Fund (TPAF), Police after November 2, 2008, and on or before May 21, J-1, F-1, M-1, and Q-1 visa holders are not eligible for
and Firemen’s Retirement System (PFRS), State Police 2010, and who meet or exceed the minimum salary membership in the PERS. Employees working under
Retirement System (SPRS), Judicial Retirement Sys- set for the current calendar year, subject to future other visa types whose earnings are subject to Social
tem (JRS), or Alternate Benefit Program (ABP). Mem- adjustment; Security withholding may be eligible for PERS enroll-
bership in the PERS for employees who meet eligibility
• Tier 4 Membership, for members enrolled after ment. If you are unsure about whether or not to enroll
requirements is mandatory in most cases. The PERS
May 21, 2010, and before June 28, 2011, and who a visa holder in the PERS, please contact the NJDPB.
is maintained on an actuarial reserve basis. The PERS
Board of Trustees has the responsibility for the proper work the minimum number of hours per week (fixed
PERS Ineligibility
administration of the retirement system. All membership hours of 35 hours or more for State employees, or
and retiree account records in the PERS begin with the 32 hours for local government, local education, or General rules concerning those who are ineligible for
number 02, except for legislative accounts. Legislative State education employees), with no minimum sal- membership in the PERS are as follows:
accounts begin with 00. ary requirement;
1. Persons with a bona fide retirement from the PERS,
• Tier 5 Membership, for members enrolled on or returning to public employment on a part-time ba-
EMPLOYER TRAINING after June 28, 2011, and who work the minimum sis.
All employers, including Certifying Officers and their number of hours per week (fixed hours of 35 hours
2. Persons with a bona fide retirement from a New
immediate supervisors, are expected to complete or more for State employees, or 32 hours for local
Jersey State-administered retirement system oth-
Board-approved training on proper enrollment pro- government, local education, or State education
er than the PERS (e.g., the Teachers’ Pension and
cedures. This training is available on the New Jersey employees), with no minimum salary requirement.
Annuity Fund), or from a local New Jersey retire-
Division of Pensions & Benefits (NJDPB) website: In addition, an employee must be enrolled in the PERS ment system, are not eligible for PERS enrollment,
www.nj.gov/treasury/pensions Without training and if: but may assume a PERS-covered position and
the annual certification, an employer will be unable to
• The employee’s wages are subject to Social Secu- receive the full salary without consequence to any
process new enrollments.
rity taxes; existing retirement allowance.
GENERAL ELIGIBILITY CRITERIA 3. Employees who do not meet the minimum salary
• The employee is not required to be a member of
any other State or local government retirement sys- requirements for Tier 1, 2, or 3 Membership, or the
Membership Tiers
tem on the basis of the same position; minimum hourly requirements for Tier 4 or 5 Mem-
PERS members are classified by membership tiers, as bership.
• The employee is receiving a monthly retirement al-
N.J.S.A. 43:15A-7 makes the eligibility requirements for lowance from the PERS and works the minimum 4. PERS disability retirees who have been approved
PERS enrollment and retirement different for five dis- number of hours per week required for Tier 5 enroll- to return to PERS-covered employment but do not
tinct enrollment periods: ment; and earn the minimum annual salary for enrollment un-
der their original PERS membership tier.
Page 5 October 2021Employers’ Pensions and Benefits Administration Manual PERS
5. Employees whose positions are not covered by So- 12. Temporary or provisional employees holding eligi- • If the position was not regularly budgeted, then the
cial Security. ble positions who do not have an existing PERS part-time hourly employee was eligible for PERS
account. enrollment at the beginning of the 13th month of
6. Provisional or temporary employees covered by
continuous employment.
Civil Service with less than 12 months of continu- CIVIL SERVICE VS. NON-CIVIL SERVICE
ous service. However, those who accept employment on or after
Civil Service Employers May 21, 2010, must meet the minimum weekly hours in
7. Persons employed under a Professional Service
order to become a member of the PERS: fixed hours of
Contract and persons whose services are engaged
If a person is regularly appointed to a classified position 35 hours or more for State employees, or fixed hours of
as consultants, self-employed contractors, or other
by a Civil Service employer, the PERS enrollment date 32 hours or more for local government, local education,
similar titles, and who do not qualify as employees
will also be his/her date of regular appointment. or State education employees. Employees who work
of an employing agency. The guidelines published
If an employee is provisionally appointed to a position, less than the fixed number of hours are ineligible for
by the Internal Revenue Service (IRS) are used to
the enrollment date will be the beginning of the 13th membership in the PERS.
determine if a person is considered an independent
contractor. The actual nature of the relationship month of continuous employment or the date of regular
Reporting and Certifying Salaries
between an employer and a person who provides appointment, whichever comes first.
of Part-time Hourly Employees
paid services is of central importance, not the title An employee in a regularly budgeted, unclassified posi-
of “contractor” or “consultant” itself. See the Inde- tion is eligible for enrollment as of the date of hire. Employers are instructed to report actual earnings for all
pendent Contractors, Professional Services Con- part-time, hourly employees on the Quarterly Report of
tracts, and Pension Enrollment Fact Sheet for more Non-Civil Service Employers Contributions. This applies to Tier 1, 2, and 3 employees
information. only, provided there has not been a break in service.
Employees at non-Civil Service locations who are hired
8. Seasonal employees, who are defined as those into regularly budgeted positions should be enrolled ef- PART-TIME CROSSING GUARDS
who work occasionally in a position that the em- fective their date of hire.
ployer does not expect will lead to permanent em- Part-time crossing guards hired after May 21, 2010, are
ployment, and whose work periods do not extend If hired into positions that are not regularly budgeted, ineligible for enrollment in the PERS, as they do not
beyond six consecutive months for employing loca- employees may be considered temporary within the work the minimum number of hours per week required
tions that report on a 12-month basis, or five months first year of employment for pension purposes. If other- for Tier 4 or 5 membership.
for employing locations that report on a 10-month wise eligible and employment continues into the second
Prior to May 21, 2010, enrollment of part-time crossing
basis. Further, the employer/employee relationship year, the compulsory enrollment date will be the first of
guards depended on several factors:
is severed at the end of the employment period, the 13th month of continuous employment.
• Enrollment was optional if the part-time crossing
and such breaks in service last at least 30 days
PART-TIME HOURLY EMPLOYEES guard was receiving periodic retirement benefits
(see N.J.S.A. 17:2-2.3(a)5).
Anyone employed on a part-time hourly basis prior to from the federal government (whether military, ci-
9. Newly elected State or local officials. vilian, or Social Security benefits).
May 21, 2010, was eligible to enroll in and contribute to
10. Newly appointed State or local officials who do not the PERS, provided all general eligibility requirements • A crossing guard who had previously retired from
have an existing PERS account. were met. any public retirement system in New Jersey, oth-
11. Employees who receive a lump-sum retirement • If the position was regularly budgeted, then the er than the PERS, was ineligible for enrollment,
distribution from the ABP or Defined Contribution part-time hourly employee was enrolled on the date though he or she could still be employed in the
Retirement Program (DCRP), regardless of distri- of hire. crossing guard position.
bution amount.
October 2021 Page 6PERS Employers’ Pensions and Benefits Administration Manual
• If a crossing guard was retired from the PERS, and For Tier 1 and 2 LONG-TERM SUBSTITUTES
earned more than $15,000 total from PERS em- AND REPLACEMENT TEACHERS
When a 10-month member has a monthly reportable
ployment, then enrollment was mandatory. salary of $150 (one-tenth of $1,500) or more, the em- A replacement teacher is an employee who assumes
ployer should deduct pension contributions and report the duties of a teacher in a regularly-budgeted position
ON-CALL EMPLOYEES
one month of service credit for the member for that for the length of time that teacher is on an approved
On-call employees, such as substitute teachers, bed- month. leave of absence. Replacement teachers are eligible for
side instructors, or home-bound instructors, who are PERS enrollment on the first day of the 13th month af-
For a 12-month member, the employer should deduct
hired on or after May 21, 2010, must meet the require- ter the commencement of continuous service; however,
pension contributions and report one month of service
ments for Tier 4 or Tier 5 PERS membership. By the if the replacement teacher is actively contributing to a
credit for the member for that month if the member has
very nature of the position, on-call employees generally PERS account, he/she does not have to wait until the
a monthly reportable salary of $125 (one-twelfth of
do not work fixed hours and would not be eligible for 13th month and is eligible for an immediate transfer pro-
$1,500) or more.
enrollment in the PERS. On-call employees may be eli- vided the tier requirements are met.
gible for enrollment in the DCRP. Tier 3
If a replacement teacher assumes the duties of a teach-
When a 10-month member has a monthly reportable er on terminal leave, he or she is eligible for TPAF mem-
Monitoring of On-Call Employees after Enrollment
salary equal to one-tenth of the minimum salary re- bership as of his or her date of hire.
On-call employees with Tier 1, 2, or 3 PERS member- quired for Tier 3 enrollment for the current year or more,
A permanent, long-term substitute in a regularly budget-
ship were enrolled in the PERS based on the number the employer should deduct pension contributions and
ed position is eligible for PERS enrollment on the date
of days worked. Once an on-call employee had worked report one month of service credit for the member for
of hire.
120 days in a one-year period for a 12-month member, that month.
or 100 days for a 10-month member, the employer en- For a 12-month member, the employer should deduct ELECTED OFFICIALS
rolled the employee in the PERS on the first of the 13th pension contributions and report one month of service Elected officials whose term begins on or after July 1,
month of employment provided all other eligibility crite- credit for the member for that month if the member has 2007, must be enrolled into the DCRP under N.J.S.A.
ria were met. a monthly reportable salary of one-twelfth of the mini-
43:15C-2, not the PERS. Enrollment in these cases into
For on-call employees with Tier 1, 2, or 3 PERS mem- mum salary required for Tier 3 enrollment for the current the DCRP is not optional.
bership, the employer does not need to monitor the year or more.
number of days worked once enrollment has occurred. All months of service and salary must be reported from Elected Officials Enrolled prior to July 1, 2007
Instead, the employer must monitor the employee’s the date that payroll deductions are certified to begin.
monthly salary, because the employee must earn a Information below applies only to elected and appointed
If a member’s salary falls below the minimum level for officials whose enrollment in the PERS occurred before
minimum monthly salary for pension service credit and
membership for a month, then that month’s service and July 1, 2007.
salary to be reported.
salary are not reported on the Quarterly Report of Con-
Prior to July 1, 2007, elected officials who qualified as
Report Actual Salary: PERS Tier 1, 2, or 3 Only tributions. See the “Report of Contributions” section.
veterans were required to enroll in the PERS if basic
PERS eligibility criteria were met.
Employers should report the on-call member’s actual
salary. There is a minimum monthly salary that must
be earned for pension service credit and salary to be
reported.
Page 7 October 2021Employers’ Pensions and Benefits Administration Manual PERS
Non-veteran elected officials had the option to enroll in Elected Officials Who Have Retired from the PERS APPOINTED OFFICIALS
the PERS when they assumed office, as long as the ba- An appointed official is someone whose employment is
sic eligibility criteria were met: $1,500 per year minimum Previously, retired PERS members had the option
through an appointing authority.
salary subject to Social Security withholding. to reenroll in the PERS if elected to public office and
their minimum salary was more than $15,000. Under A State or local official who is newly appointed by the
If they chose not to enroll at the start of their elected N.J.S.A. 43:15C-2, newly elected officials are not per- Governor on or after July 1, 2007, is ineligible for en-
term, but then decided to enroll at a later date, their mitted to reenroll in the PERS. rollment in the PERS. This includes those requiring the
PERS enrollment date was the first of the month follow- advice and consent of the Senate; pursuant to an ap-
ing receipt of the PERS enrollment application. Note: Veteran status is not a factor in the enrollment of
pointment by the Governor to serve at the pleasure of
retired members who are subsequently elected to pub-
These members may continue to receive PERS service the Governor only during his or her term of office; or in a
lic office, as it is with active members elected to public
credit while serving continuously in the same elected substantially similar manner by the governing body of a
office.
office, including being re-elected into the same office. If, local entity (county, municipality, etc.). Newly appointed
however, an individual is elected to a different elected Retirees of Another New Jersey State-Administered officials are eligible for enrollment in the DCRP.
office, PERS membership will end and the newly elect- Retirement System Elected to Public Office If the State or local appointee was a PERS member pri-
ed official may only be eligible for membership in the or to July 1, 2007, the individual may continue to receive
DCRP. If a retired member of another New Jersey State-admin-
PERS service credit while serving in the same or any
istered retirement system is elected to public office, the
Note: Service in either House of the State Legislature new or subsequent appointment, provided that there
elected official may either continue to receive the retire-
is considered a single elected public office — see addi- has not been a break in PERS service for more than
ment benefit from the former employment and not be
tional information in the PERS Handbook Addendum for two consecutive years prior to the appointment.
eligible for the DCRP, or he or she could choose to sus-
the Legislative Retirement System (LRS).
pend the retirement benefit from the former employment In addition, an appointee may be enrolled in the PERS if
In addition, any non-veteran official who was elected pri- and enroll in the DCRP while in elected office. Upon the individual holds a professional license or certificate
or to July 1, 2007, and opted not to enroll in the PERS, termination of the elected office, the retirement benefit and is appointed to one of the following titles that are ex-
will immediately become eligible for membership in the from the former employment would be reinstated. cluded from DCRP enrollment: Certified Health Officer,
DCRP upon re-election to the same elected office, or Tax Assessor, Tax Collector, Municipal Planner, Chief
If a PERS retiree enrolls in the DCRP:
if elected to a different elected office on or after July 1, Financial Officer, Registered Municipal Clerk, Construc-
2007. • The first retirement allowance is suspended and a tion Code Official, Licensed Uniform Subcode Inspector,
new membership account is created. Qualified Purchasing Agent, or Certified Public Works
Under N.J.S.A. 43:15C-2, effective June 28, 2011,
• If the member retires again, the first pension allow- Manager.
an elected official who chooses to retire from other
PERS-covered positions must also retire from the elect- ance is reinstated and a second pension allowance An appointed official who is excluded from DCRP enroll-
ed official position held on the same date. The retiree is calculated for the second period of service; each ment must follow the same PERS enrollment eligibility
may not continue as an elected official after retirement benefit is paid in a separate retirement check. rules and laws as any other PERS employee. See the
from other PERS-covered positions held. • If the member dies during the second membership, “General Eligibility Criteria” section.
If an elected official is retiring from PERS, and his or her only active death benefits from the second member-
PERS career is composed entirely of service in elected ship are payable — no death benefits are payable
positions, then the official must also terminate all elect- from the first retirement allowance, aside from any
ed positions before retirement. unpaid pension contributions.
October 2021 Page 8PERS Employers’ Pensions and Benefits Administration Manual
INTERMITTENT EMPLOYEES Adjunct Faculty Members • If a full-time faculty member at a public institution
with Prior PERS Membership of higher education is enrolled in the ABP and as-
An intermittent employee is one who does not work con-
sumes an adjunct faculty position with the same
tinuously throughout the year. Service with an employer Adjunct faculty members and part-time instructors employer, he or she is not eligible for enrollment in
is not continuous, is not full time or part time, and there whose employment agreement took effect prior to No- the PERS for the adjunct faculty position.
are significant breaks between service periods [N.J.A.C. vember 1, 2008, will become eligible to participate in
17:2-2.3(a)8]. the ABP once they sign and begin service under a new ABP vs. PERS
Example: An employee is hired in a municipal tax of- employment agreement. An adjunct faculty member or
fice to provide help during peak work times. This person part-time instructor already enrolled in the PERS, who For faculty members and employees of State colleges
works 30 hours per week during tax season, but does enters into a new employment agreement after Octo- and universities who have a choice of enrolling in ei-
not work at other, less busy times. This person is not ber 31, 2008, must complete the Election of Retirement ther the ABP or the PERS, several resources are avail-
eligible for enrollment because the service is not contin- Coverage — Transfer from PERS/TPAF form within 30 able to help them select the retirement system that best
uous and, therefore, intermittent. days of commencing employment in an ABP-eligible po- meets their needs. The ABP is a defined contribution
sition. The options available are to: plan, while PERS is a defined benefit plan. To learn
If you hire an employee for intermittent employment who more about the differences in benefits and administra-
has already established membership in the pension sys- • Irrevocably waive their statutory right to participate tion, plus information sources available to your employ-
tem, do not complete a Report of Transfer form to enroll in the ABP and continue their participation in the ees, you may visit the NJDPB website.
them at your location. The salary earned by an intermit- PERS;* or
tent employee would not be reported for pension credit. PERS ELIGIBILITY WHEN
• Irrevocably waive their right to remain in the PERS
and transfer their pension contributions to the ABP. EMPLOYED IN A PFRS TITLE
ADJUNCT FACULTY MEMBERS
*If the Election of Retirement Coverage form is not com- Eligibility criteria for enrollment in the Police and Fire-
An adjunct faculty member is a faculty member who
pleted, the member will not be permitted to continue to men’s Retirement System (PFRS) requires that the
teaches part-time at a public institution of higher edu-
participate in the PERS. member enroll in the PFRS once they receive a per-
cation. manent appointment and complete Police Training
Note: Members who irrevocably waive their right to Commission (PTC) training or firefighter certification.
Alternate Benefit Program (ABP) Eligibility remain in the PERS are permitted to leave an existing For those members with active PERS membership ac-
Requirements for Adjunct Faculty Members PERS account intact and enroll into a separate ABP counts, they cannot remain in the PERS if they have
account, or they may consolidate the PERS retirement
Any adjunct faculty member or part-time instructor a permanent appointment but have not completed the
credit under the ABP.
whose employment agreement began after October required academy training.
31, 2008, is required to participate in the ABP, under To determine whether the adjunct member is eligible for Those members who are eligible to remain in an active
N.J.S.A. 18A:66-168, et seq., and is not eligible to enroll PERS enrollment, and at what point in time enrollment PERS membership account are those who are provi-
in the PERS. should occur, these two factors must be considered: sional or temporary in a PFRS-eligible title. This is in
Enrollment is to begin within 30 days of commencing • If an adjunct faculty member is already enrolled accordance with the provisions of N.J.A.C. 17:2-2-8.
employment in the ABP-eligible position. in the PERS through other employment, he or Note: At State and county locations, all individuals who
she may be eligible for enrollment in the PERS or
For additional information, please see the Alternate are over age 35 upon permanent appointment to PFRS
ABP for the adjunct faculty position at the start of
Benefit Programs Administration on the NJDPB web- positions will continue membership in the PERS upon
employment in that position (eligibility may be re-
site. completion of PTC training or firefighter certification.
stricted due to changes in multiple membership in
accordance with N.J.S.A. 43:15A-7).
Page 9 October 2021Employers’ Pensions and Benefits Administration Manual PERS
At municipalities which are Civil Service locations, all Office of County Sheriff tire as soon as they have 20 years of such service credit
individuals who are one day or more past their 35th or on attainment of 70 years of age, whichever is earlier.
Sheriff’s Officer
birthday upon permanent appointment cannot enroll in All employees holding LEO-eligible titles, regardless of
the PFRS. For Non-Civil Service locations, they cannot Sergeant Sheriff’s Officer
whether they waive the right to participate in the LEO
be one day over age 35 at date of hire. These individ- Lieutenant Sheriff’s Officer category, are subject to Compulsory Retirement.
uals are not permitted to continue participation in the
Captain Sheriff’s Officer VOLUNTEER FIREFIGHTERS AND
PERS; therefore, these individuals cannot remain in
the PFRS-eligible position because participation in a Chief Sheriff’s Officer PENSION SYSTEM ELIGIBILITY
State-administered pension system (PERS or PFRS) is Sheriff’s Investigator Police and Firefighters must meet stringent age criteria
a condition of employment. in order to be eligible for enrollment in the PFRS. Those
Palisades Interstate Park Commission
who have passed their 35th birthday cannot be enrolled
LAW ENFORCEMENT OFFICERS (LEOs) Patrolman in the PFRS. Those over the age of 35 who are employ-
N.J.S.A. 43:15A-97 et seq., established the Law En- Police Officer ees of the State or of a county can still be hired in PFRS
forcement Officer (LEO) category as a special group of titles, but are enrolled in the PERS. However, State law
the PERS that includes employees at State and coun- Forms Required for PERS LEO Membership prohibits the hiring of municipal police officers and fire-
ty employing locations. The LEO group is eligible for fighters over age 35.
enhanced retirement benefits not available to regular PERS LEO members must be enrolled in the PERS via
There are two exceptions for municipal firefighters:
PERS members. See the Law Enforcement Officers the Employer Pensions and Benefits Information Con-
(PERS-LEO) Member Guidebook Addendum for more nection (EPIC). • N.J.S.A. 40A:14-44 allows individuals who are over
information. age 35 in a part-paid fire department (some of the
Upon submission of the Enrollment Application, a per-
department’s firefighters are paid, the others are
son employed in an eligible job title who meets the en-
LEO-Covered Titles under the PERS volunteers) to be hired to paid positions up to age
rollment criteria will be enrolled in the LEO category of
40, as long as they have served for at least two
PERS. A Law Enforcement Officers — Waiver Form will
Currently, new employees in LEO titles who do not meet years as a volunteer in the same fire department
be mailed to the member. If the member chooses to
the age or medical requirements for entry into the PFRS immediately prior to the appointment. They are eli-
waive participation as a LEO member, he or she must
may choose to participate in the LEO category of PERS gible for enrollment in the PERS, not the PFRS.
complete and sign the waiver form and return it to the
or as a regular member of the PERS. The following titles
NJDPB within 90 days. • N.J.S.A. 40A:14-56 allows individuals who are over
are covered by the LEO designation:
age 35 in a part-paid fire department, to be hired to
A LEO-eligible individual who signs the waiver form
Division of Fish and Game paid positions up to age 45, if they are able to ob-
will be enrolled as a non-law enforcement officer in the
Conservation Officer tain an Exempt Firefighter Certificate. Obtaining the
regular PERS category of membership. The decision
Exempt Firefighter Certificate requires such individ-
Office of County Prosecutor to waive participation in the LEO category of PERS is
uals to meet a number of conditions. For more in-
irrevocable.
County Detective formation, including the list of the conditions which
Lieutenant of County Detectives Compulsory Retirement under must be met to qualify and a sample Exempt Fire-
LEO-Eligible Positions fighter Certificate, please see below. Please note
Captain of County Detectives that individuals who qualify for this exemption are
Chief of County Detectives Non-veterans must retire by the first day of the calendar eligible for enrollment in the PERS, not the PFRS.
month after attaining age 65. However, veterans who
County Investigator
lack 20 years of PERS service credit at age 65 must re-
October 2021 Page 10PERS Employers’ Pensions and Benefits Administration Manual
The following conditions must be met by municipal vol- 2. The exempt firefighter’s department to be kept as a Under the provisions of N.J.S.A. 43:15A-7, multiple
unteer firefighters over age 35 in order to be granted an permanent record; membership is only available to Tier 1, 2, and 3 mem-
Exempt Firefighter Certificate: bers provided that there has not been a break in service
3. The firefighter; and
in any concurrently held PERS-eligible position.
1. The fire department or force is composed of both 4. The county clerk of the county in which it was is-
paid and volunteer firefighters (part-paid); Note: A break in service is any pension reporting peri-
sued (within 60 days).
od without pay — a month or a biweekly pay period as
2. The firefighter is not under age 18 or older than 45 There can be no fee associated with issuing the certif- appropriate to the employer’s reporting method — with
years of age; icate, and it must be signed by the official in charge of the exception of approved leaves of absences, layoff,
3. The firefighter is of good moral character at the the fire department and force, and the chief executive abolishment of position, military leave, Workers’ Com-
time of appointment; officer of the municipality. The municipal clerk must affix pensation, litigation, or suspension.
the municipal seal, attest the certificate, and ensure that
4. The firefighter performed as a volunteer firefighter Thus, for all tiers, any new, concurrently held PERS-eli-
the filing and delivery of copies are completed.
for at least seven years in a department or force gible position begun after May 21, 2010, will not qualify
that employs paid firefighters; for service credit or the compensation base for pen-
MULTIPLE MEMBERSHIP
5. The firefighter participated in at least 60 percent of sion contributions and calculation of retirement for any
A PERS multiple member is someone who is employed
fire duty at the location; PERS member.
by more than one PERS-participating employer and en-
6. If a firefighter, otherwise eligible for an Exempt Fire- rolled in the PERS through more than one employer — If there is a break in service with any concurrently held
fighter Certifcate, was unable to complete seven that is, more than one employer reports to the PERS for PERS-eligible position after May 21, 2010, that employ-
years of service due to injury or injuries that proved that employee concurrently. er will no longer be permitted to submit pension contri-
disabling, the firefighter may still be eligible for an butions for the multiple member. Furthermore, service
In the past, an employee already holding a PERS mem-
Exempt Firefighter Certifcate if he or she had par- credit or salary from any future employment with that
bership through one PERS-covered position could
ticipated in 60 percent of fire duty over a period of employer will not qualify for the compensation base for
become a multiple member when taking additional
five years; and pension contributions and calculation of retirement for
PERS-covered position(s). That employee had to enroll
the PERS multiple member.
7. If a firefighter had service in more than one munic- in the PERS for the new position(s) immediately, as of
ipal fire department, and if the aggregate service the date of hire, regardless of the member’s employ- A Tier 1, 2, or 3 employee who established multiple
(excluding concurrent service) totals seven years ment status, as long as salary and Social Security eligi- member, prior to May 21, 2010, will always be consid-
or more, the firefighter will be eligible for an Exempt bility requirements for the PERS were met. ered a multiple member for the duration of their mem-
Firefighter Certifcate from the department or force bership, even if at a later date the member works for
However, N.J.S.A. 43:15A-7, requires that an employ-
in the municipality in which he or she is participat- only one employer.
ee enrolled after May 21, 2010, be eligible for PERS
ing at the time of becoming eligible (N.J.S.A. 40A: Once a member has established multiple membership,
membership based upon only one position. It also re-
14-56). he or she cannot withdraw or collect retirement benefits
quires the retirement system to designate the position
providing the highest compensation for the member until retirement or termination from all positions covered
The Exempt Firefighter Certificate
from among any concurrently held positions. This posi- by the PERS occurs.
According to N.J.S.A. 40A: 14-59, when an Exempt tion will be used as the basis for eligibility for member- An employee who terminates PERS employment from
Firefighter Certificate is issued, there must be four cop- ship, service credit, the compensation base for pension one PERS employer to accept employment at a new
ies, which are given to: contributions, and for other pension calculations. PERS employer is transferring membership. See the
1. The New Jersey State Firemen’s Association; “Interfund and Intrafund Transfers” section.
Page 11 October 2021Employers’ Pensions and Benefits Administration Manual PERS
Note: An employee hired for intermittent employment Federal Pensionable Maximum Salary DCRP, unless the member waives participation when
cannot be enrolled in the PERS, and salary earned by first eligible. The PERS member may request to par-
PERS is a qualified pension plan under the provisions
an intermittent employee would not be reported for pen- ticipate in the DCRP at a later time; upon such a re-
of the Internal Revenue Code (IRC), Section 401(a)
sion credit. quest, enrollment will be effective the following January
(17); therefore, the current federal ceiling on pension-
1st. For the amount of compensation over the maximum
Since multiple membership is no longer permitted for able salary applies to the base salaries of PERS Tier 1
compensation, 5.5 percent will be deducted as a con-
positions taken after May 21, 2010, the Report of Trans- members. Salary earned by a PERS Tier 1 member in
tribution for the purposes of the program. Employers
fer/Multiple Enrollment form can no longer be used for excess of this amount is not pensionable; that is, it may
will contribute three percent of the amount of employ-
this purpose. However, the form is used when a higher not be used in determining member contributions and
ee base salary over the maximum compensation to the
paying position at another location replaces member- benefits. For more information about this topic, please
program.
ship at an existing location. see the IRS website at www.irs.gov
When a PERS member also becomes a participant in
The PERS contribution rate for Tier 1 members is ap- the DCRP, the life insurance and disability benefit pro-
CONTRIBUTION RATE
plied to the full pensionable salary, up to the federal visions of that program will be available for that partic-
The PERS full rate of contribution is established by the pensionable maximum. ipant.
legislature by enacting or amending pension law. Under
The PERS contribution rate for Tier 2, 3, 4, and 5 mem-
N.J.S.A. 43:15A-25, the PERS contribution rate will be PERS GROUPS CLOSED TO NEW MEMBERSHIP
bers is applied to the pensionable salary up to a com-
increased to 7.5 percent in phases, as follows:
pensation limit based on the annual maximum wage for Workers’ Compensation Judges Group
Pension Contribution Rate Social Security deductions. Members who earn in ex-
cess of the annual maximum compensation limit will be Effective June 8, 2007, in accordance with N.J.S.A.
Month–Year Contribution Rate
enrolled in the DCRP in addition to the PERS. A contri- 43:15A-143, the Workers’ Compensation Judges (WCJ)
July 2011 6.50% Part of the PERS was closed to new membership.
bution of 5.5 percent of the salary in excess of the limit,
July 2012 6.64%
plus three percent from the employer, will be forwarded Members who were enrolled in the WCJ Part of the
July 2013 6.78% to a DCRP account. Annual compensation limits can be PERS (those employed by the Division of Workers’
July 2014 6.92% found on the NJDPB website. Compensation of the Department of Labor as Workers’
July 2015 7.06% Compensation Judges, Chief Judge, Administrative
Maximum Compensation
July 2016 7.20% Supervisory Judge, Supervisory Judge, and Judge of
Compensation) prior to June 8, 2007, will continue to be
July 2017 7.34% N.J.S.A. 43:15C-2 imposes a maximum compensation
offered special retirement benefits through their mem-
upon which contributions will be made for Tier 2, 3, 4,
July 2018 7.50% bership in the WCJ Part of the PERS.
and 5 PERS members — those who are enrolled in the
With the exception of the PERS Prosecutors Part, the PERS on or after July 1, 2007. The maximum amount Prior to the enactment of N.J.S.A. 43:15A-144, the con-
rate increases apply to all PERS groups, including will be the amount of base or contractual salary equiva- tribution rate for the WCJ Part of the PERS was 5.5 per-
PERS LEOs, PERS Workers’ Compensation Judges, lent to the annual maximum wage contribution base for cent of base salary. This rate was effective July 1, 2007.
and PERS Legislators (LRS). See the Prosecutors Part Social Security, based on the Federal Insurance Contri- The rate prior to July 1, 2007, was five percent of base
(PERS-PP) Member Guidebook Addendum. butions Act. The annual maximum compensation limit salary.
can be found on the NJDPB website. Those who are appointed to a Workers’ Compensation
A member whose salary reaches or exceeds this annual Judge title at Division of Workers’ Compensation of the
maximum in any year will become a participant of the Department of Labor on or after July 1, 2007, including
October 2021 Page 12PERS Employers’ Pensions and Benefits Administration Manual
Chief Judge, Administrative Supervisory Judge, Super- Employers are reminded to submit the application for Beneficiary Designation
visory Judge, and Judge of Compensation, may be eli- each newly hired employee promptly, so that the NJDPB At the time of enrollment, the employee’s estate will
gible for enrollment in the DCRP, a plan established for can process the enrollment in a timely manner. Delayed automatically be designated as the beneficiary for any
elected and appointed officials under the provisions of and forced enrollments can be costly to the employer. death benefits payable. Employers should strongly en-
N.J.S.A. 43:15C-2. To sign up for EPIC please please visit the NJDPB web- courage new employees to register to use the Member
site: www.nj.gov/treasury/pensions For help in com- Benefits Online System (MBOS) in order to update their
Legislative Retirement System (LRS)
pleting the online Enrollment Application through EPIC, beneficiary information after enrollment. Please see the
N.J.S.A. 43:15A-135, closed the Legislative Retirement please refer to the EPIC User’s Guide. “Group Life Insurance Coverage” section for more infor-
System (LRS) group of the PERS to new enrollees as mation, including how a member can change his or her
Delayed Enrollment Employer Liability beneficiary information once enrolled.
of July 1, 2007.
A State legislator who is newly elected to office on or af- A delayed enrollment liability is generated when an em- The Designating a Beneficiary Fact Sheet is available to
ter July 1, 2007, is ineligible for enrollment in the PERS. ployee is not enrolled in the pension system within one provide information to members requiring help in mak-
Elected officials may be eligible for enrollment in the year after the compulsory enrollment date. When this ing their beneficiary selections for pension and/or group
DCRP. occurs, the employer becomes liable for 50 percent of life insurance.
the pension contributions that the employee would have
A State legislator who was enrolled in the LRS group Common Employer Tasks
paid had he or she been enrolled in a timely manner.
of PERS prior to July 1, 2007, may continue to receive at the Time of Enrollment
LRS-PERS service credit while serving in the same Delayed Enrollment billing is calculated as follows:
elected office — service in either House of the State For instructions on completing the EPIC PERS Enroll-
• The employee’s normal rate of contribution multi-
Legislature is considered a single elected public office. ment Application, see the EPIC User’s Guide.
plied by the employee’s salary equals the contribu-
If the individual is elected to a different elected office, tion dollar amount. If the member is over age 60 or returning to work from a
PERS membership will end and the newly elected offi- Disability Retirement, and wishes to be covered under
• The contribution dollar amount multiplied by the
cial may only be eligible for membership in the DCRP. group life insurance, the member must provide proof of
number of pays the member should have been
The DCRP for Elected and Appointed Officials Fact insurability.
properly enrolled equals the total amount of the lia-
Sheet provides additional information. bility. Creditable Compensation
Prosecutors Part of the PERS • The employer is responsible for 50 percent of the
liability amount; the other half is the responsibility of Creditable compensation consists of pay that meets all
Prosecutors taking office after May 21, 2010, will be en- the employee. of the following criteria:
rolled as Tier 4 or 5 members of the regular PERS, or
Delayed Appropriation billing is calculated as follows: • Pay for performance of duties required of a
regular PERS if a Tier 1 PERS member continuously PERS-covered position;
since July 1, 2007. An exception is made in the case of • The employee’s salary multiplied by the number of
a county prosecutor who is appointed by the Governor pays of delayed enrollment multiplied by the em- • Pay received in a regular paycheck, not in a lump-
with the advice and consent of the Senate, who will be ployer rate. sum payment;
enrolled in the DCRP. • Pay not specifically listed as extra compensation or
The salary reported on the ROC is used to calculate
the annual employer appropriation billing. The employer as not being creditable;
PERS ENROLLMENT THROUGH EPIC
liability for delayed enrollments is governed by P.L. 121, • Pay received in a similar manner by everyone else
An employer must log on to EPIC and complete the c. 121 (Chapter 121) and N.J.A.C. 17:1-3.1. in a similar situation; and
online Enrollment Application in order to enroll a newly
hired employee in the PERS.
Page 13 October 2021Employers’ Pensions and Benefits Administration Manual PERS
• Pay that is included in base salary from the first day • Individual retroactive salary adjustments, or adjust- Example #2 — Longevity is paid to employees begin-
it is paid. ments to place a member at the maximum salary ning in their fifth year. At that time, the employee gets to
range in the final year of service, where no suffi- make an irrevocable decision as to whether to have the
The creditable compensation rule does not prohibit the
cient justification is provided that the adjustment longevity pay included in base salary subject to pension
inclusion of longevity, holiday pay, or education pay in
was granted primarily for a reason other than re- deductions for his entire career.
creditable salary. These items can be included if the
tirement;
payments are made as a part of each paycheck for all Determination: The longevity is not creditable compen-
employees in the same collective bargaining agreement • Compensation in the absence of services; sation because its inclusion in base salary is voluntary.
from the time they first receive the compensation. • Increments or adjustments in recognition of the Example #3 — Longevity is paid to employees begin-
member’s forthcoming retirement; ning in their fifth year and is included in base salary sub-
Extra Compensation
ject to pension deductions throughout the employees’
• Any form of compensation that is not included in
Extra Compensation is not included in base salary. careers.
the base salary of all employees in the same posi-
Extra compensation means individual salary adjust- tion or covered by the same collective bargaining Determination: Longevity is creditable compensation
ments granted primarily in anticipation of retirement or agreement; because it is paid to all employees in a similar situation
as additional compensation for performing temporary and is included in base salary from the first time it is
• Retroactive increments or adjustments made at or
duties beyond the regular workday. In accordance with paid.
near the end of a member’s service, unless the ad-
N.J.A.C. 17:2-4.1, “…the compensation of a member
justment was made for all similarly situated person- Example #4 — A member in his final year of service is
subject to pension and group life insurance contribu-
nel as a result of an across-the-board adjustment; due $100,000 for unused vacation and sick pay. The
tions and creditable for retirement and death benefits in
and member agrees with the employer to accept $50,000
the System shall be limited to base salary, and shall not
included in base pay subject to pension deductions as
include extra compensation.” Some of the items identi- • Any form of compensation that is not included in
payment for this time.
fied as extra compensation are as follows: a member’s base salary during some of the mem-
ber’s service and is included in the member’s base Determination: The $50,000 is not creditable compen-
• Overtime;
salary upon attainment of a specified number of sation as it is a trade-in or sell-back.
• Pay for extra work, duty, or service beyond the nor- years of service. Example #5 — A member is covered under a bargaining
mal work day, work year (for 10-month employees),
agreement that does not include longevity as creditable
or normal duty assignments; Examples
compensation. The member is promoted and now falls
• Bonuses; under a different bargaining agreement. This agreement
Some examples that should clarify the subject follow:
• Lump-sum payments for longevity, holiday pay, va- does include longevity as creditable compensation for
Example #1 — The union contract covering a group of
cation, compensatory time, sick leave, etc.; all employees under that agreement.
employees stipulates that longevity will be included in
• Any compensation which the employee or employ- base salary subject to pension deductions in the 23rd Determination: Longevity for the newly promoted mem-
er has the option of including in base salary; year of service. Prior to that, it will be paid outside of ber is considered creditable compensation because it
base salary. is creditable for everyone who is similarly situated, i.e.,
• Sell-backs, trade-ins, waivers or voluntary returns
covered under the same bargaining agreement.
of accumulated sick leave, holiday pay, vacation, Determination: Longevity is not considered creditable
overtime, compensatory time, or any other pay- compensation because it is not pensionable when it is
ment or benefit in return for an increase in base first received and is included in the member’s base sal-
salary; ary upon attainment of a specified number of years of
service.
October 2021 Page 14PERS Employers’ Pensions and Benefits Administration Manual
Board Review Back deductions are calculated on the member’s cur- he/she may be eligible to transfer membership from the
rent annual salary, regardless of when the member is TPAF to the PERS.
The Board of Trustees may question the compensation
enrolled. If back deductions are owed for a time period
of any member or retiree to determine if all of the re- Interfund transfers are limited to pension systems ad-
exceeding 12 months, system interest is added.
ported salary is creditable whenever there is evidence ministered by the State of New Jersey. Members who
that there may be extra compensation included in the are actively contributing simultaneously to two separate
PERS Deductions are Tax Deferred
base salary. If the Board determines that there is extra State-administered retirement systems are not eligible
compensation included in the base salary, all employ- Since January 1, 1987, mandatory pension contribu- for an interfund transfer; they would be considered dual
ees and retirees affected by that contract will have their tions have been federally tax deferred. Under the 414(h) members for pension purposes.
contributions on that extra compensation refunded with- provisions of the IRC, this reduces a member’s gross Note: An interfund transfer may be processed if a
out interest. Retirees will have their retirement benefit wages subject to federal income tax. Purchases of ser- period of three years of service or less is concurrent
recalculated. Contributions remitted by the employer vice credit are voluntary pension contributions and are between PERS and TPAF accounts, and the member
will not be refunded and will be retained in the retire- not tax deferred, unless funded by a rollover from anoth- is no longer actively contributing to the TPAF account.
ment fund. A statement as to the creditability of sala- er tax-deferred plan. In such a case, only the non-concurrent service – that
ry in a negotiated union agreement is not binding on is, service not credited under both accounts – may be
the PERS Board of Trustees and has no effect on the CERTIFICATION OF PAYROLL DEDUCTIONS
transferred. Members who were enrolled in the SPRS
Board’s decision on the inclusion of that salary as pen- When enrollment processing is complete, you will re- or the PFRS may not do an interfund transfer to the
sionable compensation. N.J.S.A. 34:13A-8.1 states that ceive a Certification of Payroll Deductions indicating PERS if there is any period of concurrent service.
negotiations cannot annul or modify any pension statute when to begin deductions, the rate of contribution, and
or statutes. The New Jersey Supreme Court has upheld Required Forms
any back deductions.
this law and stated that public pensions are sacrosanct, 1. A PERS Enrollment Application submitted through
Note: Deductions, including regular pension contri-
i.e., they are not subject to collective bargaining agree- EPIC;* and
butions and back deductions, may begin only when a
ment. The Board of Trustees is the authority on whether
Certification of Payroll Deductions is received from the 2. An Application for Interfund Transfer, which must be
compensation is creditable or not for pension purposes.
NJDPB. filled out by the member (Part One) and the former
To assist the PERS Board of Trustees in fulfilling its ob- employer (Part Two), who is required to return it to
ligations to the retirement system and its membership, INTERFUND AND INTRAFUND TRANSFERS the member. The Application for Interfund Transfer
and assist employer compliance with the pension stat- should then be submitted to the NJDPB.
utes, the NJDPB will periodically request employers to Interfund Transfers
*If a member is ceasing employment at a State-biweek-
provide a copy of negotiated contracts. The NJDPB will
Interfund Transfers are for employees who change jobs ly location in a different pension fund and beginning
review those contracts to help ensure that compensa-
and accept positions that require enrollment in a differ- PERS-covered employment in a State-biweekly loca-
tion practices do not violate creditable compensation
ent retirement system. This applies even if the employ- tion, please complete a paper PERS Enrollment Appli-
guidelines.
er remains the same. cation and submit it to the NJDPB along with the Appli-
Back Deductions cation for Interfund Transfer.
Statutes permit any member of a different New Jersey
State-administered retirement system (TPAF, PFRS, In situations where the employer remains the same but
Back deductions are mandatory pension contributions SPRS, etc.) the option to transfer membership into the the member is transferring to a different retirement sys-
subject to IRC Section 414(h). They are the pension ob- PERS if the member obtains a PERS-eligible position. tem due to a title change, the employer must stop remit-
ligations owed from the date of enrollment or transfer to ting contributions under the former system once the em-
the date deductions are certified to begin. Example: If a teacher (TPAF) accepts a position in a
ployee becomes eligible for membership in the second
neighboring school district as a teacher’s aide (PERS),
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