New Jersey Administrative Code › Title 17 - TREASURY - GENERAL › Chapter 6 - DEFINED CONTRIBUTION RETIREMENT PROGRAM › Subchapter 2 - DEFINITIONS › Section 17:6-2.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
Whenever used in the Program or with respect to an applicable
				  Plan, each of the following terms has the meaning stated below. To the extent
				  that any term is not defined in this subchapter or otherwise by this chapter,
				  such term has the meaning given by N.J.S.A. 43:15C-1 et seq., or by the
				  Internal Revenue Code.
"Account" means the total of the individual sub-account(s)
				  maintained on behalf of each participant, beneficiary, or alternate payee under
				  the investment option(s) held pursuant to the Retirement Plan.
"Alternate payee" means a person who is an alternate payee
				  (within the meaning of IRC § 414(p)(8)) under an order directed to the
				  Retirement Plan that the Plan Administrator has determined to be a Qualified
				  Domestic Relations Order.
"Annuity payment option" means a payment option under the
				  Retirement Plan, if permitted by the Plan Administrator, which includes a
				  provision for payments based, in whole or in part, upon the life of a natural
				  person.
"Applicable form" means the appropriate form as designated
				  and furnished by the Plan Administrator or DSP to make an election or provide a
				  notice as required by the Program, including a form in electronic medium with
				  an electronic signature in compliance with E-SIGN and applicable law. As used
				  in this definition, the following terms have the following meanings:
1. "E-SIGN" means
				  15 U.S.C. §§
										7001 to
				  7006,
				  7021 and
				  7031;
				  and
				  47
				  U.S.C. § 231 note - the Federal Electronic Signatures in Global and
				  National Commerce Act.
2. "Electronic" means, consistent with E-SIGN,
				  15
				  U.S.C. §
										7006(2), of or
				  relating to technology having electrical, digital, magnetic, optical,
				  electromagnetic, or similar capabilities regardless of medium.
3. "Electronic signature" means, consistent with E-SIGN,
				  15
				  U.S.C. §
										7006(5),
				  information or data in electronic form, attached to or logically associated
				  with an electronic record, and executed or adopted by a person or an electronic
				  agent of a person, with the intent to sign a contract, agreement, or record.
"Applicable law" means the law of the United States of
				  America or the law of the State of New Jersey that is applicable to the
				  governance or administration of the Program or an applicable Plan under the
				  Program.
"Base salary" means a participant's regular base salary;
				  except that for a participant described in
				  17:6-4.1(e),
				  it shall mean the excess over the maximum compensation as specified in that
				  paragraph. Base salary includes employee contributions as well as salary
				  reduction contributions and other amounts excluded from gross income with
				  respect to such base salary under, without limitation, IRC §§ 125,
				  132(f)(4), 402(e)(3), 402(h)(1)(B), 403(b), 414(h)(2) or 457(b). Base salary
				  excludes overtime or other forms of extra compensation, including but not
				  limited to longevity lump sum payments, lump sum terminal sick leave or
				  vacation pay, the value of maintenance, individual pay adjustments made within
				  or at the conclusion of the participant's final year of service, retroactive
				  salary adjustments or other pay adjustments made in the participant's final
				  year of service unless the adjustment was made as a result of a general pay
				  adjustment for all personnel of the public office or agency in which the
				  participant is employed, or any unscheduled individual adjustment made in the
				  final year to place the participant at the maximum salary level within salary
				  range.
"Beneficiary" means each person a participant designates by a
				  valid beneficiary designation to receive any undistributed benefit payable on
				  or after the participant's death.
"Beneficiary designation" means a valid and effective
				  beneficiary designation made according to N.J.A.C. 17:6-8.
"Benefit" refers to the right under the Retirement Plan of
				  the participant (or beneficiary or other payee) to receive a distribution of
				  all or any portion of the participant's account.
"Board" means the Defined Contribution Retirement Program
				  Board established under 43:15C-4.
"Civil union partner" means the individual that is the
				  participant's civil union partner under the laws of the State of New
				  Jersey.
"Contributions" means contributions under the provisions of
				  the Retirement Plan, including employee contributions and employer
				  contributions.
"Designated service provider" or "DSP" is a company
				  designated as a provider by the Defined Contribution Retirement Program Board
				  under 43:15C-4.
"Direct rollover" means a payment under the Retirement Plan
				  to an eligible retirement plan specified by the distributee.
"Distributee" means any person who receives, or but for his
				  or her instruction to the Plan Administrator is entitled to receive, a
				  distribution. A distributee includes an alternate payee to whom the Plan
				  Administrator is directed to make a payment under a Qualified Domestic
				  Relations Order.
"Distribution" means, as appropriate in the context, any kind
				  of payment (withdrawal or retirement) including a rollover provided by the
				  Retirement Plan.
"Distribution commencement date" means the first date on
				  which a distribution (or any payment under a distribution) is paid or becomes
				  payable.
"Effective date" means July 1, 2007 for eligible employees as
				  of the Retirement Plan implementation date and as effective with respect to
				  payroll periods starting on and after that date.
"Eligible employee" means an individual described in
				  17:6-4.1
				  and not excluded under
				  17:6-4.2,
				  consistent with the requirements of 43:15C-2, and who is an eligible employee
				  on or after the Retirement Plan implementation date. Subject to the approval of
				  the Plan Administrator, the employer's classification of a person as an
				  employee or other individual with the status of an eligible employee for
				  purposes hereof shall be final and conclusive.
"Employee contributions" means the sum of employee mandatory
				  contributions and employee voluntary contributions.
"Employee mandatory contributions" means those contributions
				  in the percentage amount of base salary required from a participant under the
				  first sentence of 43:15C-3(a).
"Employee voluntary contributions" means those contributions
				  in addition to the employee mandatory contribution that the Plan Administrator,
				  pursuant to authority under the second sentence of 43:15C-3(a), may permit the
				  participant to irrevocably elect upon initial enrollment in the Retirement Plan
				  (or, if later, following the voluntary contribution implementation
				  date).
"Employer" means the State or a political subdivision
				  thereof, or an agency, board, commission, authority or instrumentality of the
				  State or a subdivision, that pays the base salary of a participant for services
				  rendered by the participant. Except as described in the following sentence,
				  each employer with eligible employees shall be a participating employer with
				  respect to the Plan for the benefit of its eligible employees as described in
				  17:6-4.1
				  and not excluded under
				  N.J.A.C.
				  17:6-4.2, and shall not be required to take
				  affirmative action to adopt this Plan for its eligible employees or to enter
				  into any contractual arrangement regarding its obligations to contribute to the
				  Plan except as may be required by the Plan Administrator. Notwithstanding the
				  foregoing, the Plan Administrator may determine that an employer is not
				  eligible to maintain this Plan for its employees if the Plan Administrator
				  reasonably concludes that the employer is not an employer that can maintain a
				  "governmental plan" within the meaning of section 414(d) of the Internal
				  Revenue Code or Section 3(32) of the Employees Retirement Income Security Act
				  of 1974,
				  29
				  U.S.C. §
										1002(32), as
				  amended. The Plan Administrator's determination in this regard shall be final
				  and conclusive.
"Employer contributions" means those contributions made by
				  the employer under 43:15C-3(b).
"Enabling statute" means 43:15C-1 et seq.
"Fees" means any fees required or permitted to be charged
				  against the participant's (or beneficiary's or alternate payee's) Retirement
				  Plan account according to any one or more of the following: the Retirement
				  Plan, the Trust Agreement, the participation agreement, an investment option
				  including redemption fees, an investment advisory agreement, any other writing
				  signed by the participant (or, after the participant's death, the beneficiary),
				  any written notice given by or on behalf of the Plan Administrator or the
				  Trustee that is accepted or deemed accepted by the participant (or
				  beneficiary), or any court order. Additionally, the Plan Administrator may
				  impose fees to pay for expenses it deems proper to administer the Retirement
				  Plan. The fees may be charged to the participants' accounts according to an
				  equitable method determined by the Plan Administrator.
"Fiduciary" means a person that is a fiduciary within the
				  meaning of applicable law regarding the Program or an applicable Plan under the
				  Program.
"Group Disability Plan" means the Defined Contribution
				  Retirement Program Group Disability Benefit Plan as described in this chapter
				  and as it may hereinafter be amended.
"Group Life Insurance Plan" means the Defined Contribution
				  Retirement Program Group Life Insurance Plan as described in this chapter and
				  as it may hereinafter be amended.
"Internal Revenue Code" or "IRC" means the Internal Revenue
				  Code of 1986, as amended, and including any regulations and rulings (or other
				  guidance of general applicability) under the IRC, as applicable to a
				  governmental plan as defined by IRC § 414(d).
"Investment law" means, as applicable or relevant in the
				  context, any Federal or State banking law, insurance law, securities law, and
				  other rules of the National Association of Securities Dealers, Inc. (NASD),
				  NYSE and any stock exchange or commodities exchange, to the extent approved or
				  not disapproved by the SEC.
"Investment option" means any investment option selected by
				  the Board (see
				  17:6-3.2 ) in
				  accordance with the Retirement Plan's investment policy and approved by the
				  Plan Administrator, for investment by participants (or beneficiaries) of their
				  Retirement Plan accounts. Default investment funds (in which a Retirement Plan
				  account shall be invested in the event the participant or beneficiary has not
				  filed a valid investment direction (see N.J.A.C. 17:6-6.8), shall be selected
				  by the Plan Administrator, with the approval of the Division of
				  Investment.
"Limitation year" means each 12-month period ended December
				  31.
"N.J.S.A." means the New Jersey Statutes Annotated.
"NYSE" means the New York Stock Exchange.
"Participant" means the eligible employee (or former eligible
				  employee) who is enrolled in the Program or an applicable Plan under the
				  Program and, with respect to the Retirement Plan, for whom contributions under
				  the Retirement Plan have been made or accrued and whose account has not been
				  fully distributed under the Retirement Plan.
"Participation agreement" means the applicable form that
				  designates the participant's investment options and such other information as
				  the Plan Administrator may prescribe for the efficient or convenient
				  administration of the Program or an applicable Plan under the Program.
"Payment option" means any of the options for payment of a
				  participant's Retirement Plan account that is permitted by the Plan
				  Administrator consistent with the terms of the Retirement Plan and an
				  applicable Retirement Plan investment option. A payment option shall not be
				  based on gender-distinct actuarial tables. A payment option must satisfy all
				  applicable provisions of the Retirement Plan, including, but not limited to,
				  17:6-11.2.
"Person" means a natural person, a corporation, a limited
				  liability company, an unincorporated association, a partnership, a joint
				  venture, a business trust, or anything that is a person within the meaning of
				  applicable law.
"Personal representative" means the person duly appointed by
				  an order of the court (or of a registrar or administrator under the court's
				  supervision) having jurisdiction over the estate of the participant that grants
				  the person the authority to receive the property of the deceased participant
				  and to act as the personal representative of the participant's probate
				  estate.
"Plan" means the Retirement Plan, the Group Disability Plan
				  and/or the Group Life Insurance Plan, as the context requires.
"Plan Administrator" means the Director of the New Jersey
				  Division of Pensions and Benefits.
"Plan Sponsor" means the State of New Jersey.
"Plan Year" means each 12-month period ended June 30.
"Program" means the New Jersey Defined Contribution
				  Retirement Program provided by the enabling statute, as described by this
				  chapter. The Program consists of the Retirement Plan, the Group Life Insurance
				  Plan and the Group Disability Plan.
"Qualified Domestic Relations Order" or "QDRO" means a
				  domestic relations order directed to the Retirement Plan that creates or
				  recognizes the existence of the right of an alternate payee to receive all or a
				  portion of any benefit payable to a participant under the Retirement Plan and
				  that further meets all requirements for a qualified domestic relations order
				  stated by IRC § 414(p) as applied to a governmental plan and N.J.A.C.
				  17:6-8.
"Retired" means when a vested Defined Contribution Retirement
				  Program member separates from covered employment and elects to receive a
				  distribution of funds (of any amount) containing both employer and employee
				  contributions plus interest. This action renders the former participant
				  "retired" and, therefore, as a retiree, ineligible to reenroll in the DCRP or
				  enroll in any other New Jersey State-administered retirement system, pursuant
				  to N.J.S.A. 43:15C-2.b(3).
"Retirement Plan" means the Defined Contribution Retirement
				  Program Retirement Plan as described in this chapter, and as it may hereafter
				  be amended.
"Retirement Plan implementation date" means April 1, 2008,
				  the date following which eligible employees are first enrolled as participants
				  following the Plan's effective date.
"SEC" means and refers to the Securities and Exchange
				  Commission, an agency of the government of the United States of America,
				  established by § 4(a) of the Federal Securities Exchange Act of 1934,
				  15 U.S.C. §
										78d.
"Severance from employment" means the date the participant
				  terminates employment with an employer with no obligation or expectation for
				  future services to be performed for an employer by the participant. The Plan
				  Administrator is entitled to rely upon the date of severance from employment
				  certified by the employer.
"Spouse" means, except for the purposes of IRC §
				  401(a)(9), the individual that is the participant's spouse under applicable
				  law.
"State" means the State of New Jersey unless the context
				  clearly indicates otherwise.
"Treasurer" means the Treasurer of the State of New Jersey.
				  In the event there is no Treasurer then serving, the Acting Treasurer shall
				  perform the functions described in this chapter.
"Trust" means and refers to the legal entity and the legal
				  relationship created to hold and invest the assets of the Retirement Plan.
				  Consistent with IRC § 401(a)(2), the Trust must be solely for the purposes
				  of the Retirement Plan Program.
"Trust Agreement" means any agreement or declaration of trust
				  executed under the Plan to hold and invest the assets of the Retirement
				  Plan.
"Trustee" means the corporate trustee appointed and acting
				  under the Trust Agreement.
"Valuation date" means any day on which both the NYSE is open
				  for regular trading and the applicable DSP is open for regular business at its
				  principal office. A valuation date ends at the earliest of:
1. 4:00 P.M. New York time;
2. The time that the NYSE closes trading; or
3. The time that any investment option must value its assets
				  and price its shares.
In addition, the Plan Administrator may make reasonable rules
				  governing the time of day after which an instruction will be treated as
				  received on the next valuation date.
"Vested" means eligible to receive employer and employee
				  contributions. All members of the Public Employees Retirement System (PERS),
				  Teachers' Pension and Annuity Fund (TPAF), Police and Firemen's Retirement
				  System (PFRS), Alternate Benefits Program (ABP), or State Police Retirement
				  System (SPRS), and all DCRP members hired at the age 65 or older, are
				  immediately vested; members of DCRP hired before their 65th birthday vest after
				  one year of contributions.
"Voluntary contribution implementation date" means the date,
				  if any, designated by the Plan Administrator for the initial implementation of
				  employee voluntary contributions described at
				  17:6-5.2
				  and authorized by the second sentence of 43:15C-3(a).
"Withdrawal" occurs when a non-vested DCRP member separates
				  from covered employment and submits a request to the vendor for a withdrawal of
				  contributions. Only the member's contributions are available for withdrawal;
				  employer contributions are forfeited, pursuant to N.J.S.A. 43:15C-3.c. A
				  withdrawal differs from a distribution in that after a withdrawal, the
				  individual remains eligible for reenrollment in the DCRP or enrollment in
				  another State-administered retirement system upon a return to covered
				  employment.