New Jersey Administrative Code › Title 17 - TREASURY - GENERAL › Chapter 3 - TEACHERS' PENSION AND ANNUITY FUND › Subchapter 1 - ADMINISTRATION › Section 17:3-1.13 - Age determination; contribution rate

Current through Register Vol. 56, No. 14, July 15, 2024
(a) For purposes of
				enrollment, the age assigned to the applicant is based on the applicant's age
				on the date of enrollment. However, if the applicant is six months or more past
				his or her most recent birthday, the assigned age for enrollment will be his or
				her age on his or her next birthday.
(b) For purposes of purchasing additional
				service credit, the age used to determine the applicable actuarial factor is
				based on the applicant's age on the date the purchase request is received by
				the Division. However, if on that date the applicant is six months or more past
				his or her birthday, the purchase actuarial factor will be based upon the
				applicant's age on his or her next birthday.
(c) For purposes of calculating a retirement
				option selection, the age used to determine the applicable actuarial reduction
				factor is based upon the ages of the member and designated beneficiary (or
				beneficiaries) on the effective date of retirement. If on that date, the age of
				either the member or the designated beneficiary (or beneficiaries) is six
				months or more past that individual's birthday, the age used for the option
				selection will be based upon that individual's age on his or her next
				birthday.
(d) For purposes of
				calculating an Option 1 reserve balance upon the death of a retired member,
				when a beneficiary elects (or beneficiaries elect) an annuity certain
				(specified number of years) or a life annuity, the applicable factor is based
				upon the age of the beneficiary (or beneficiaries) at the time of the member's
				death. If that age is six months or more past the birthday of the named
				beneficiary (or beneficiaries), the factor is based upon the age of the
				beneficiary or beneficiaries on the next birthday attained.
(e) For purposes of calculating the group
				life insurance benefits upon the death of an active employee when the
				beneficiary elects (or beneficiaries elect) an annuity certain (specified
				number of years) or a life annuity, the applicable factor is based upon the age
				of the beneficiary (or beneficiaries) at the time of the member's death. The
				factor is based solely on the age of the beneficiary (or beneficiaries) at the
				time of the member's death; it is not rounded up to the next
				birthday.
(f) Pursuant to
				18A:66-29, the full contribution
				rate was increased from five percent to 5.5 percent of salary in July of 2007.
				In October of 2011, the contribution rate was increased to 6.5 percent of
				salary, with an additional increase of one percent phased in through seven
				increments from July 2012 until July 2018, when the total pension contribution
				rate reaches 7.5 percent of salary.
(g) For members who enrolled in the Fund
				prior to July 1, 2007, the contribution rate in effect is applied to the full
				pensionable salary, up to the current Federal ceiling on pensionable
				compensation under section 401(a)(17) of the Internal Revenue Code.
(h) For members who enroll (or enrolled) on
				or after July 1, 2007, the contribution rate in effect is applied to the
				pensionable salary up to the maximum compensation limit for pension
				contributions, pursuant to the Federal Insurance Contributions Act and based on
				the annual maximum wage for Social Security deductions.