DOCUMENTS FOR NJ DIVISION OF PENSIONS & DCRP WORKSHOPS (9/23 & 9/30/2014)

Transcription

1 DOCUMENTS FOR NJ DIVISION OF PENSIONS & DCRP WORKSHOPS (9/23 & 9/30/2014) Information for Employers Division of Pensions and Benefits ' 1 Electronic Correspondence to the Division of Pensions and Benefits : 2-3 Fact Sheets by Number Fact Sheet 79 - Defined Contribution Retirement Program (DCRP) 7-11 Fact Sheet 80- Defined Contribution Retirement Program for Elected and Appointed Officials.' Fact Sheet 82 - Defined Contribution Retirement Program if Ineligible for PERS OrTPAF, Certifying Officer Letters 2014.' 23 C.O. Letter 9/11/2014-Renewal Required for Annual Membership Certification C.O. Letter 8/22/2014- Compliance with IRS Code- Bona Fide Severance of Employment - post-retirement employment restrictions For individuals covered by any NJ State-Administered Retirement System PERS and TPAF Salary or Hours Requirement for Enrollment by Membership Tiers On-call Employees Long Term Substitutes (Permanent) and Replacement Teachers 36

2 .y/ w W w Governor Chris Christie Lt.Governor Kim Guadagno State of New Jersey. Department: of the Treasury Division of Pensions aad. Benefits Search Pensions 63 NJ Home } Services A to Z Departments/Agencies FAQs Select Language T Disclaimer INFORMATION FOR EMPLOYERS QUICK LINKS FOR EMPLOYERS * Certifying Officer Letters and Messages ONLY for SHBP/SEHBP * Forms and Publications Participating Locations that Offer a Private Pharmacy Benefits Manager * Employer Training Health Benefit Information for Pian Year INFORMATION FOR EMPLOYERS AND EMPLOYEES 2014 *.Enrollment-andTransfers «Chapter 5'2, P.L * Purchase Of Service Credit Annual Menibershfp Certification * Pension Loans * Retirement Info 1 Retirement Workshops J^nrollment/Transfer form update^ Training Information About Chapter 52 Online Guide to Retirement PERS, TPAF or PFRS \t Estimates «Retirement Employer Training Application Classes - Dates available for 2014 * Personal Benefit Statements * Group Life Insurance and Beneficiary Information * Withdrawals *. * Health Benefit Programs Iinformatiioffi by Retirement System PERS I TPAF PFRS ABP DCRP SPRS f 3RS j Closed Funds Supplemental Retirement and Tax Saving Programs N3SBDCP [ SACT ACTS \e CommLiberTax$ave Long Term Care Program.VE5P. EMPLOYER NEWS AND UPDATES Notice of Health Insurance Marketplace Coverage Options under the Affordable Care Act - for State Employers and.local Government and Education Employers * Updated Forms for Enrollment and Transfers Find out more! «Professional Services Contracts and Review of PERS Enrollment - Certifying Officer Letter. Fact- Sheer., and Checklist: e Employer Billing for PERS and PFRS ONLINE SERVICES Log on to MROS or FPTH Leam About EPIC-For Employers Register for Employer Training How Do I... Get employee account Information online? Help employees use MROS7 Get: forms and publications?» Get health benefits information? Get information on benefits for Civil Unions or Domestic Partners? -Get a Personal Benefit Statement? Find out when the Boards of Trustees meet? Find out about the Pension Planning Other Resources _Re e gt Leg Is la tig n Rule Changes J Boards and Commissions Other Benefit * Chapter 78, P.L, Pension ancj Health Benefit Reform Last update: May 30,2014 RULES & AUTHORITY Gnnfacl 13s Privacy Noftce I Legal Statement (Accessibiliiy Statement j Pensions and Benefits^ Home \r Manual Health Benefits Forms and Publications Counseling Appointments Treasury: Home [ Services J People Businesses Divisions/Agencies ] Forms Contact Us Statewide,1 NJ Home J Services A to Z \s J FAQs Copyright State of New Jersey, Thfe site Is maintained by the Division of Pensions and Benefits. 000

3 r -.L/UJJctL LUJDIJLL UJL UUO JULCddUL^ - JL/JLYI&JLUI1 UJL T CUJbJLUUd,// w W YY.6laus.JUj. State of New Jersey Department of the Treasury Division of Pensions and Benefits PO Box 295 Trenton, NJ The Division of Pensions and Benefits welcomes the opportunity to consider your thoughts, concerns, ideas, and questions. If you would like to send a message to the Division of Pensions and Benefits, please take a minute to complete the following form, which will provide the Division with the information necessary to identify your membership status and process your message. Technical Notes If you are unable to use this form, you can contact the Division of Pensions and Benefits at the address listed above, ELECTRONIC CORRESPONDENCE TO THE DIVISION OF PENSIONS AND BENEFITS Prefix? First Names MI: Last Names Pension Fund/Program: NAME (if applicable) Inquiry Types General /Benefits Question 0 Member Specific Question Membership/Retirement Numbers Social Security Numbers XXX - XX - ADDRESS Streets Suite/PBO*Box: Citys County: State: Zip Code.u Country: United States (if applicable) (optional - last 4 digits only) (required in NJ only) (required in US only) Phone Numbers - - Ext:. (optional) - s AFFILIATION If you are writing on behalf of an organization or group, please provide that group's name and indicate your relationship with that group, Groups N/A

4 JxltO UX 1NJ - -L/OpOi ULK/JULt UX LUC - X^XYX^XUXi OXIU. XJCJUOJUIO Relationship: N/A YOUR MESSAGE Have you contacted us before on this matters No Confirmation #: Topics Please Select One Subject: Please select from dropdown box above first Messages.. Send ^our Message, vstart-0v;er &M*:&3?»&'::-'te''-> ^ I'-^f^^^-'J^jfeH-'"': ^- ' K>^'"'^^''4,--'^-- '^^.J.'.- Last Updated: Monday, 10/22/12

5 UJL JT OJUaiUJLla ctjuu JLJCJLICUJLld- Governor Chris Christie Lt-Governor Kim Guadagno State of New Jersey Department of the Treasury Division of Pensions and Benefits Search Pensions NJ Home ( Services A to Z Departments/Agencies [ FAQs Select Language Disclaimer FACT SHEETS BY NUMBER View Fact Sheets By Category. Fact Sheet Number auid TopSc '. Fact Sheet #1, Purchasina Service Credit (PERS, TPAF & PFRS)' Adobe PDF (3710 Fact Sheet #2, Estimatina the Cost of-purchasina Service Credit (PERS & TPAF) Adobe PDF (3310 ; Fact Sheet #3, Estimatina the Cost of Purchasina Service Credit (PFRS) Adobe PDF (SOK) Fact Sheet #4, AppMna for Retirement (PERS & TPAF) Adobe PDF f49io Fact Sheet #5f Pension Options (PERS & TPAF) Adobe PDF fssio Fact Sheet #6, Vbtyr Retirement Checklist (All Funds) Adobe PDF- f45fo : Fact Sheet #7, New Jersey State Employees -Deferred Compensation Plan Distribution Options 'Adobe PDF f28io i Fact Sheet #8, Enrollment Ellalbllity and Aae Limits (PFRS) Adobe PDF (4110 Fact Sheet #9, Divorce and Your Deferred Compensation Plan Account Adobe PDF (29K) Pact Sheet #10, Reportina a Death Adobe PDF (2910 Fact Sheet #11, Enrolllna In Health Benefits Coveraae When You Retire Adobe PDF C47IO Fact Sheet #12, Taxation of Retirement Benefits (All funds) Adobe PDF (45K) Fact Sheet #13, Conversion of Group Life Insurance (All Funds) Adobe PDF f4iio Fact Sheet #14, Deferred Retirement (PERS, TPAF & PFRS) Adobe PDF fsoio Fa ct S h eet #1 5, Disability Retlremen t Ben effts (P E RS & TPAF) Adobe PDF C45K) [ Fact Sheet #16, Disability Retirement Benefits (PFRS) Adobe PDF (SOK). ' «Fact Sheet #17, Veteran Status (PERS, TPAF &' PFRS1) Adobe PDF agio Fact Sheet #18^ Cost-of-Livin a Adjustments (All Funds) AdobepDF'(24KD Fact Sheet #19, Aoolvina for Retirement (PFRS) Adobe PDF (saw Fact Sheet #20, Leave -of Absence and. Your Benefits (All Funds) Adobe PDF (4310 Fact Sheet #21, Employment After Retirement (PERS) Temporarily Unavailable Pending Revision Adobe PDF (45K) Fact Sheet #22, Waiver ofnoncontributory Group Life Insurance over $50',OQO Adobe PDF (ZBIO Fact S heet #23, Health Benefit Proarams and Medicare Parts A & B for Retirees Adobe PDF fszio. : Fact Sheet #24, Withdrawal from the Retirement System Adobe PDF (3010 Fact Sheet #25, Employer Responsibilities Under COBRA Adobe PDF (31K) Fact Sheet #26, Health Benefits Options When Terminatina Employment Adobe PDF fsik) Fact Sheet #27, The Taxability and Mandatory Wlthholdina of Income Tax: From Your Pension Distribution Adobe PDF (45K), ' Fact Sheet #28, Employment After Retirement (TPAF) Temporarily Unavailable Pending Revision Adobe PDF (44K) Fact Sheet #29, Employment After Retirement (PFRS) Temporarily Unavailable Pending Revision Adobe PDF (33K) Fact Sheet #30, The Continuation of Health Benefits Under COBRA Adobe PDF (3610 Fact Sheet #31, Benefits at Termination of Employment throuah Resianathn, Dismissal or Layoff Adobe PDF (42K) Fact Sheet #32, The New Jersey State Employees Deferred Compensation Plan Adobe PDF (29K) Fact Sheet #33, The Employer's Role in a Disability Retirement Adobe PDF (46K) Fact Sheet #34r The Additional Contributions Tax-Sheltered (ACTS) Program Temporarily Unavailable Pending Revision Adobe PDF (43 K) Fact Sheet #35, The Supple'mental Annuity Collective Trust Fund of New Jersey (SACT) (All Funds) Adobe PDF (29K) Last Update 5/14 5/14 8/13 8/13. 8/13 8/13 2/14 6/13. 5/11 7/10 11/12 2/09 1/13 1/13 7/14 4/14 ; 8/13' ' 2/14 2/14 7/13 8/11 2/14 '1/13 3/13 5/12 5/12 0/-J 0 ^/ J-.3 3/11 8/11 5/14 5/12 1/14 7/10 3/14 1/14 _ <* '

6 j. VJUMUJU UL roiidiuiid ana JLJ»GJUOJLU> JULLJJ.// w W w.auac.juj Fact Sheet #36, Military Service after Enrollment and USERRA Adobe PDF (31K) 7/12 Fact Sheet #37 r Employee Dental Plans Adobe PDF (39K) 3/14 [Fact Sheet #38f Alternate Benefit Program Adobe PDF (42K) 3/14 Fact Sheet #39, Disability Retirement Benefits (State Police Retirement System) Temporarily Unavailable Pending Revision Fact Sheet #40, SPRS Death Benefits (State Police Retirement System) Adobe PDF f44io Fact Sheet #41. Applvina for Retirement (State Police Retirement System) Adobe PDF (40K) 7/11 2/14 2/14 Fact Sheet #42, Divorce, Dissolution of a Civil Union, and Your Retirement Benefits Adobe PDF (33K) Fact Sheet #43, Back Pay Settlements and Retirement Credit Adobe PDF (24K) 8/13 Fact Sheet #44, Tax$ave Adobe PDF (42K) 8/13 Fact Sheet #45, Workers' Compensation (PERS, TPAF, PFRS & SPRS) Adobe PDF (44K) 2/14 Fact Sheet #46, LEO:Law Enforcement Officers and the Public Employees' Retirement System (PERS) Adobe PDF (37K) 2/14 Fact Sheet #47, Health Benefits Retired Coverage Under Chapter 330 (PFRS) (LEO) Adobe PDF (29K) 1/13 Fact Sheet #48. Family Status Changes - Employees (All Funds) Adobe PDF (35K) 1/11 Fact Sheet-#49, Family Status Changes - Retirees (All Funds) Adobe PDF (33K) 1/11 Fact Sheet #50, Charter Schools (PERS & TPAF) Adobe PDF (30K) 2/14 Fact Sheet #51, Con tin uin a Health Benefits Coveraae for Overage Children with Disabilities (SHBP and SEHBP) Adobe PDF (3 OK) Fact Sheet #52r Retirement Incentive Programs Adobe PDF (30i<) 1/01 Fact Sheet #53 Replaced by the PERS Handbook Addendum for the Legislative Retirement System (LRS) Adobe PDF (73 K) Fact Sheet #54r Calculating Your Own Retirement Adobe PDF (47K) 3/14 '. Fact Sheet #55, Accidental Disability or Accidental Death Benefit Coverage for Off-Duty or Outside Employment (PFRS & PERS) Adobe PDF (26K) 2/14 Fact Sheet #56, Creditable Compensation (PFRS) Adobe PDF (27K) 3/14 Fact Sheet #57, Employment After Retirement (SPRS) Temporarily Unavailable Pending Revision Adobe PDF (24K) 2/12 Fact Sheet #58, Group Life Insurance (PERS and TPAF) Ado be PDF (39K) 6/12 Fact Sheet #59, Group Life Insurance (PFRS) Adobe PDF (31K) 3/11 Fact Sheet #60, Voluntary Furlough Proaram (All Funds) Adobe PDF (40K) 12/10 Fact Sheet #61r JRS Survivor Benefits and Pension Options (JRS) Adobe PDF (47K) 2/14 Fact Sheet #62 Replaced by the PERS Handbook Addendum for the Prosecutors Part of the PERS Adobe PDF (7OK) Fact Sheet #63 Replaced by the PERS Handbook Addendum for the Workers' Compensation Judges (WC3) Part Of the PERS Adobe PDF (75K) Fact Sheet #64, About Your Retirement Check (All Funds) Adobe PDF (51K) 3/14 Fact Sheet #65f Volunteer Emergency-Worker's Survivors Pension Adobe PDF (77K) 3/14 Fact Sheet #66, Health Benefits Coverage for Part-Time Employees Adobe PDF (35K) 5/14 Fact Sheet #67, Commuter Tax$ave Program Adobe PDF (28K) 3/14 I Fact Sheet #68, Designating a Beneficiary Adobe PDF (32K) 1/13 Fact Sheet #69f SHBP Coverage for State Intermittent Employees Adobe PDF (30K) 10/13 Fact Sheet #70, Multi-State Agency Participation in the PERS (PERS) Adobe PDF (33K) 7/04 Fact Sheet #71, Benefits Under the Domestic Partnership Act Adobe PDF (53K) 5/11 Fact Sheet #72. Identity Theft and Your Benefits Adobe PDF (47K) 9/13 Fact Sheet #73, Retiree Dental Expense Plan Adobe PDF (35K) 1/11 I Fact Sheet #74, Health Benefits Coverage of Children until Age 31 under Chapter 375 Adobe PDF (27K) 5/14 [ Fact Sheet #75, Civil Unions Adobe PDF (54K) 5/11 Fact Sheet #76, Honorable Service Adobe PDF (39K) 9/09 Fact She'et #77, The Quarterly Report of Contributions Adobe PDF (43 K) 1/14 Fact Sheet #78, Requirements for Review of a Title for Participation In the PFRS Adobe PDF (54K) 2/12 7/12 2/14 Fact Sheet #79,Defined Contribution Retirement Proaram CDCRP} for PERS, TPAF,' PFRS, and SPRS Members Adobe PDF (38K) 3/14 Fact Sheet #80, Defined Contribution Retirement Proaram (DCRP) for Elected and Appointed Off/da Is Mobe. PDF (34K) 7/13 Fact Sheet #81, Pension Loans (PERS, TPAF, PFRS 8c SPRS) Adobe PDF (33K) 07/14

7 x pcojtcttx ux jrond.iu.ud.// w w VY. Fact Sheet #82, Defined Contribution Retirement Program CDCRP} if Ineligible for PERS or TPAF Adobe PDF (44K) 7/13 Fact Sheet #83, Qualified Domestic Relations Order (QDRO) Adobe PDF (44K) 5/13 Fact Sheet #84. Professional Services Contracts, Independent Contractors, and Pension Enrollment Adobe PDF (531<) 4/14 Return to Top Last update: 3uly 30, 2014 RULES & AUTHORITY Confeaci Us Privacy Nofes [ Legal Statement Accessibility SlaSesnsnt / OPRAJQpeJV Pensions and Benefits; Home Employer Manual Health Benefits Forms and Publications Counseling Appointments Treasury: Home Services ] People Businesses Divisfons/A0encfes Forms Contact Us Statewide: N3 Home Services A to Z 1 Departments/Agencies FAQs Copyright State of New Jersey, This site is maintained by the DK/lsbn of Pensions and Benefits.

8 FL ; Fact Sheet #79 fl PUBLICATION OF THE MEW IEBSEY DIVISION OF PENSIONS flnd BENEFITS ~ DEFINED CONTRIBUTION RETIREMENT PROGRAM (DCRP) For PERS, TPAF, PFRS, and SPRS Members The Defined Contribution Retirement Program (DCRP) was established July 1, 2007, under the provisions of Chapter 92, P.L 2007 and Chapter 103, P.L 2007, and expanded under the provisions of Chapter 89, PL 2008 and Chapter 1, PL. 2010, The DCRP provides eligible members with a tax-sheltered, defined contribution"retirement benefit, along with life insurance and disability coverage. ELIGIBILITY Individuals eligible for membership in the DCRP include:. State or local officials who are elected or appointed on or after My 1, 2007; Employees enrolled in the Public Employees' Retirement System (PERS) or Teachers' Pension and Annuity Fund (TPAF)"on or after My 1, 2007, who earn salary in excess of established "maximum compensation" limits; Employees enrolled in the Police and Fireman's Retirement System (PFRS) or State Police Retirement System (SPRS) after May 21, 2010, who earn salary in excess of established "maximum compensation" limits; Employees otherwise eligible to enroll in the PERS or TPAF on or after November 2, 2008, who do not earn.the minimum annual salary for PERS or TPAF Tier 3 enrollment ($8,100 in 2014 subject to adjustment in future years) but who arn salary of at least $5,000 annually; and Employees otherwise eligible to enroll in the PERS or TPAF after May 21, 2010, who do not work the minimum number of hours per week required for PERS ortpaftier 4 or Tier 5 enrollment (35 hours per week for State employees or 32 hours per week for local government or local education employees) but who earn salary of at least $5,000 annually This fact sheet addresses DCRP membership for employees enrolled in the PERS, TPAF, PFRS, or SPRS. Elected or appointed officials should refer to Fact Sheet #80, DCRP for Elected and Appointed Officials. Employees eligible for the DCRP because they do not meet the minimum salary or hours for the PERS ' or TPAF should refer to Fact Sheet #82, DCRP if Ineligible for the PERS or TPAF. Employees enrolledin the PERS or TPAF on or after My 1, 2007, or enrolled'^ the PFRS or SPRS after May 21/2010, are subject to a maximum compensation limit for pension contributions. The maximum compensation is based on the annual maximum wage for Social Security (see chart below) and is subject to change at the start of each calendar year. YEAR ; 2010; PERS/TPAF ANNUAL MAXIMUM WAGE MAXIMUM WAGE $102,000 $106,800 $110,100 $113,700 $117,000 March 2014 Page 1 _ Fact Sheet #79,

9 Fact Sheet #79 ft PBBUCATIBN Bf THE NEW ItBSEY PI ISIBH OF PiNSIBNS flnp BENEFITS FL Therefore, an eligible employee who earns in excess of the annual maximum wage will be enrolled in the DCRP in addition to the PERS, TPAF, PFRS, or SPRS (as appropriate). Employees who participate in the DCRP will receive service credit in their retirement system account, and will be eligible to retire under the rules of the retirement system with the final salary or final compensation at retirement limited to the maximum compensation amounts jn effect when the salary is earned, Additional income will be available in retirement based on contributions from salary above the maximum compensation limit invested in the DCRP. Optional Waiver A PERS, TPAF, PFRS, or SPRS member who is also eligible for the DCRP can choose to voluntarily waive participation in the DCRP by submitting a DCRP Waiver Form to the Division of Pensions and Benefits, If a member waives DCRP participation and later wishes to participate, he or she can apply for DCRP enrollment at that time, with membership to be effective January 1 of the following calendar yean ENROLLMENT Eligible members are enrolled in the DCRP when the annual salary exceeds the maximum compensation limit This may occur either: Upon enrollment into the PERS, TPAF, PFRS, or SPRS when an annual base salary is reported on the Enrollment Application that will exceed the maximum compensation; or. When an eligible member's annual salary is increased to where it will exceed the maximum compensation and it is reported by the employer to the Division of Pensions and Benefits (either by directly contacting the Division, or when submitted by the employer on the Quarterly Report of Contributions). When enrolled in the DCRP, members contribute 5.5 percent of the base salary in excess of the maximum compensation limit to a tax-deferred investment account established with Prudential Financial, which jointly administers the DCRP investments with the Division of Pensions and Benefits. Member contributions are matched by a 3 percent employer contribution based on the salary in excess of the maximum compensation limit it is important that an employer enroll a DCRP eligible member as soon as it is known that the employee's annual salary will exceed the maximum compensation, $o that the DCRP account can be established in advance of collection of any required contributions. Contributions are required from the date of DCRP eligibility. If any back-deductions are owed, employers must schedule and remit them to the DCRR Transfers Employees who transfer employment will not be subject to maximum compensation limits or DCRP enrollment if: The transferring employee was a member of PERS or TPAF on or before June 30, 2007; or The transferring employee was a member of the PFRS or SPRS on or before May 21, 2010; and Any of the following situations apply: The member is transferring to an eligible position without a break in service; or Fact Sheet #79 March 2014 Page 2

10 FL Fact Sheet #79 ft POBUCftTION Of THE MEW JERSEY D1 IS»ON OF PENSIONS HMD BtNEFITS ' Any break in service is 24 months or less from the date of the last contribution to the retirement system and the member's account has not been withdrawn; or Any break in service is 24 months or less from the end of an approved leave of absence. If a member transfers after a break in service that falls beyond the 24 month exceptions described above, the member will be subject to the maximum compensation rules and DCRP enrollment. Vesting A PERS, TRAP, PFRS, or SPRS member who becomes eligible and is enrolled-in the DCRP is immediately vested in the DCRP As a vested member, you have a right to a benefit at retirement based on both the employee and employer contributions to the DCRR Withdrawal Withdrawal occurs when a non-vested DCRP member separates from covered employment and submits a request to Prudential for a withdrawal of contributions. Only the member's contributions are available for withdrawal employer contributions are forfeited, After a withdrawal, the individual is eligible for reenrollment in the DCRP/or enrollment in another New Jersey State-administered retirement system, upon.a return to covered employment.... Retirement Retirement occurs when a vested DCRP member separates from covered employment and elects to receive a distribution of funds containing both-employer and employee contributions and interest. This action deems the former participant as "retired" and, therefore, ineligible to re-enroll in the DCRP or participate in any other New Jersey State-administered retirement system. APPLYING FOR RETIREMENT Six months before retirement, a member should contact the employer and Prudential Financial for information regarding DCRP benefits and options. A DCRP member may-elect to receive all or a portion of his/her account in a lump-sum distribution, or in a variety of periodic payment methods, Please contact your administrative services provider for more information. Ali returns of contributions-and earnings are considered taxable in the year they are. received; therefore, the type of payout plan-should be considered carefully prior to retirement There js no mihimum retirement age under the DCRP. The member will automatically be considered retired, regardless of age, if there is any distribution of mandatory contributions. A member may take a distribution at any time after-termination of employment; however; if you return to public employment in New Jersey, you cannot participate in any State-administered retirement system. DCRP members considering future employment in a position covered by. any of the State-administered retirement systems should carefully consider this impact before requesting a distribution, Health Benefits at Retirement Please note that service time from enrollment in the DCRP cannot be used to qualify for State Health Benefits Program (SHBP) or School Employees' Health Benefits Program (SEHBP) coverage at retirement; however, retirement system members who also participate in the DCRP through earnings in excess of the maximum wage will continue to earn credit toward SHBP coverage, if eligible at retirement, through their retirement system service.. March2014 Pages Fact Sheet #71

11 Fact Sheet #79 FL A P D B L I C f l T I O H Of THE HEW J E R S E Y D I V I S I O N OF P E N S I O N S HUD B E N E F I T S Please contact your employer's human resources office or benefits administrator to ask about health benefit coverage options available in retirement. LIFE INSURANCE COVERAGE While employed, a PERS, TPAF, PFRS, or SPRS member enrolled in the DCRP is covered by employerpaid life insurance, payable to their designated beneficiaries in the amount of 11/a times the annual base salary on which DCRP contributions were based. This coverage is available without a medical examination to members under age 60. Newly enrolled members 60 years of age or older must undergo a medical examination to qualify. DCRP members will continue to be insured for up to two years if on an approved leave of absence without pay for personal illness. Note: The Internal Revenue Service classifies all life insurance coverage over $50,000 as a fringe benefit subject to taxation. The amount of the life insurance coverage is not taxable, but the premium required to pay for the life insurance coverage is taxable. Members can elect to waive insurance coverage over $50,000 at any time. For more information on this topic, see Fact Sheet #22, Waiver of NonContributory Group Life Insurance over $50,000. Upon retirement, life insurance under the DCRP reduces to 3/16 of the annual base salary on which DCRP contributions were based. This life insurance coverage is available in retirement only to: * PERS, TPAF, PFRS, or SPRS members enrolled in the DCRP who are age 60 or older if the member has completed 10 years of participation in the DCRP, PERS, TPAF, PFRS, or SPRS; PERS, TPAF, PFRS, or SPRS members enrolled in the DCRP who are any age if the member has completed 25 years of participation in the DCRP, PERS, TPAF, PFRS, or SPRS. The member must also have been an active employee in the twelve months immediately preceding the initial receipt of a retirement annuity payment. LONG-TERM DISABILITY COVERAGE A member is eligible for employer-paid long-term disability insurance coverage after one year of participation in the DCRP. The member becomes eligible for the disability benefit after six consecutive months of total disability due to an occupational or nonoccupational condition. To be considered totally disabled due to sickness or accidental bodily injury, the member must be unable to perform any and every duty pertaining to his/her occupation. The member need not be confined to home, but must be under a doctor's regular care. If a member is totally disabled, the member is eligible to receive a regular monthly income benefit up to 60 percent of the base salary on which DCRP contributions were based during the 12 months preceding the onset of the disability. While disabled, the member's and the employer's mandatory contributions are automatically credited to the member's retirement account. The monthly income benefit is offset by any other periodic benefit the member may be receiving, such as Workers' Compensation, short-term disability, or Social Security. FaCt Sheet #79 March 2014 Page 4

12 FL Fact Sheet #79 ft PUBUCflTIBN OF THE HIW IEBSEY DIVISION Bf PINSI8MS AND BENEFITS Eighteen months after the onset of long-term disability eligibility, the member must be unable to engage in any gainful occupation for which he/she is reasonably suited by education, training, or experience. Total disability is not considered to exist if the member is gainfully employed, incarcerated, or if the disability resulted from an act of war, or was intentionally self-inflicted. Long-term disability benefits will be paid as long as the member remains disabled or until the member attains age 70. Should the member begin receiving payments under the retirement annuity, these benefits terminate, This fact sheet has been produced and distributed by: New Jersey Division of Pensions and Benefits * PO Box 295 Trenton, New Jersey (609) TDD for the hearing impaired (609) URL; hnp://www*state,njms/treasury/pensions E-maik pensions.nj@treas,state.njms This fact sheet is a summary and not intended to provide total information, Although every attempt at accuracy is made, it cannot be guaranteed. March 2014 Page 5 Fact Sheet #7i

13 FL Fact Sheet #80 ft PUBLICATION OF THE NEW JERSEY DIVISION Of PENSIONS HUB BENEFITS DEFINED CONTRIBUTION RETIREMENT PROGRAM (DCRP) FOR ELECTED AND APPOINTED OFFICIALS Elected and Appointed-Officials The Defined Contribution Retirement Program (DCRP) was established July 1,2007, under the provisions of Chapter 92, P.L 2007 and Chapter 103, P.L-2007, and expanded under the provisions of Chapter 89, RL 2008 and Chapter 1, RL. 2010, The DCRP provides eligible members with a tax-sheltered, defined contribution retirement benefit, along with life insurance and disability coverage, ELIGIBILITY Individuals eligible for membership in the DCRP include: State or local officials who are elected or appointed on or after My 1, 2007; Employees enrolled in the Public Employees5 Retirement System (PERS) or Teachers9 Pension and Annuity Fund (TPAF) on or after My 1, 2007, who earn salary in excess of established "maximum compensation'' limits; Employees enrolled in the Police and Fireman's Retirement System (PFRS) or State Police Retirement System (SPRS) after May 21, 2010, who earn salary in excess of established "maximum compensation" limits; Employees otherwise eligible to enroll in the PERS or TPAF on or after November 2, 2008, who do not earn the minimum annual salary for PERS or TPAF Tier 3.enrollment ($8,000 in 2013, subject to adjustment in future years) but who earn salary of at least $5,000 annually; and Employees otherwise eljgible to enroll in the PERS or TPAF after May 21, 2010, who do not work the minimum number of hours per week required for PERS or TPAF Tier 4 or Tier 5 enrollment (35 hours per we.ek for State employees or 32 hours per week for local government or local education employees) but who earn salary of at least $5,000 annually. This fact sheet addresses DCRP membership for elected and appointed officials. Employees enrolled in the PERS, TPAF, PFRS, or SPRS should refer to Fact Sheet #79, DCRP for PERS, TPAF, PFRS, and SPRS Members. Employees eligible for the DCRP because they do not meet the minimum salary or hours for the PERS or TPAF should refer to Fact Sheet #82, DCRP if Ineligible tor the PERS or TPAF. State and local officials who are elected or appointed on or after July 1, 2007 are eligible for enrollment only in the DCRP. An elected official is any individual who holds a State or local (county, municipal, etc.) elected public office. A State appointee is any individual appointed by the Governor, including those requiring the advice and consent of the Senate, or pursuant to an appointment by the Governor to serve at the pleasure of the Governor only during his or her term of office, A local appointee is any individual appointed by the Governor, including those requiring the advice and consent of the Senate; or an individual appointed in a substantially similar manner'by the governing body of a local public entity (county, municipality, school board, etc.) Page 1 Fact Sheet #8(

14 Fact Sheet #80 ft PUBLICATION OF THE NEW JERSEY DIVISION OF PENSIONS HMD BENEFITS FL Elected Officials An elected official who was already enrolled in the PERS prior to July 1, 2007 based on an elected office, will remain a PERS member while continuing to serve in that elected office. A newly elected official will only be enrolled in the DCRP and cannot enroll in the PERS. Under N.J.S A 43:30-3 a retired member of a State-administered retirement system who.is etectedto public office may either continue to receive a retirement benefit from the former employment and would be ineligible for enrollment in the DCRP or may suspend the retirement benefit from the former employ-. ment and enroll in the DCRP while serving in the elected office (upon termination of the elected office the retirement benefit from the former employment would be' reinstated). Appointed Officials. * A newly appointed official who does not have an existing PERS account will only be enrolled in the DCRP and cannot enroll in the PERS, An appointed official who was already enrolled in the PERS prior to July 1,2007, will remain a PERS member while serving in the appointed position/ Similarly, a regular employee who was enrolled in the PERS prior to July 1, 2007, who is appointed without a break in membership to a DCRP eligible position on or after My 1, 2007, will remain a PERS member while in the appointed position. An appointed official serving in a position that is otherwise eligible for membership in the TRAP, PFRS, SPRS, or JRS will not be enrolled in the DGRR In these instances, application should be made to enroll in the other retirement system regardless of any former retirement system affiliations. If a retired member of another Stateradministered retirement system is appointed to a DCRP eligible position, the appointee may either continue to receive the retirement benefit from the former employment and would be ineligible for enrollment in the DCRP, or may suspend the retirement benefit from the former employment and enroll in the DCRP while in the appointed position (upon termination of the appointed position the retirement benefit from the former employment would be reinstated). Note: Appointed titles that are ineligible for DCRP participation (see Chapter 92, RL 2007): Certified Health Officer, Tax Assessor, Tax Collector, Municipal Planner, Chief Financial Officer, Registered Municipal Clerk, Construction Code Official, Licensed Uniform Subcode Inspector, Qualified Purchasing Agent, or Certified Public Works Manager. ENROLLMENT The employer is responsible for enrolling an eligible elected or appointed official as of the starting date in the elected or appointed office by submitting a DCRP Enrollment Application to the Division of Pensions and Benefits, or using the online DCRP Enrollment Application available on the Employer Pensions and Benefits Information Connection (EPIC). Enrollment is required for eligible elected or appointed officials. Except for the specific- circumstances described above, there is no other option for waiver of DCRP enrollment. When enrolled, the elected or appointed official contributes 5.5 percent of the base salary to a tax-deferred investment account established with Prudential Financial, which jointly administers the DCRP with the Division of Pensions and Benefits. Member contributions are matched by a 3 percent employer contribution, Contributions are required from the date of DCRP eligibility. If any back-deductions are owed, employers must schedule and remit them to the DCRP. Fact Sheet #80 July 2013 Page

15 Fact Sheet #80 FL ft PUBLICATION OF THE HEW JERSEY DIVISION OF PENSIONS AND BENEFITS Salary Requirements A newly elected or appointed official must earn a minimum annual base salary of $5,000 to be eligible to participate in the DCRR Vesting If a newly elected or appointed official has an existing DCRP account, or is a member of another Stateadministered retirement system, the official is immediately vested in the DCRP. As a vested member, you have a right to a benefit at retirement based on both the employee and employer contributions to the DCRP. If a newly elected or appointed official does not qualify for immediate vesting in the DCRP, the employee and employer contributions are held during the initial year of membership. Upon commencing the second year of DCRP membership, the member is fully vested. However, if a member is not eligible to continue in the DCRP for a second year of membership, the member may apply for a refund of the employee contributions from the DCRP, while the employer contributions will revert back to a forfeiture account for the employing location. Withdrawal Withdrawal occurs when a non-vested DCRP member separates from covered employment and submits a request to Prudential for a withdrawal of contributions. Only the member's contributions are available for withdrawal employer contributions are forfeited. After a withdrawal, the individual is eligible for reenrollment in the DCRP, or enrollment in another New Jersey State-administered retirement system, upon a return to covered employment. Retirement Retirement occurs when a vested DCRP member separates from covered employment and elects to receive a distribution of funds containing both employer and employee contributions and interest. This action deems the former participant as "retired" and, therefore, ineligible to re-enroll in the DCRP JOT participate in any other New Jersey State-administered retirement system. APPLYING FOR RETIREMENT Six months before retirement, a member should contact the employer and Prudential Financial for information regarding DCRP benefits and options. A DCRP member may elect to receive all or a portion of his or her account in a lump-sum distribution, or in a variety of periodic payment methods. Please contact your administrative services provider for more information. All returns of contributions and earnings are considered taxable in the year they are received; therefore, the type of payout plan should be considered carefully prior to retirement. There is no minimum retirement age under the DCRP. The member will automatically be considered retired, regardless of age, if there is any distribution of mandatory contributions. A member may take a distribution at any time after termination of employment; however, if you return to public employment in New Jersey, you cannot participate in any State-administered retirement system. DCRP members considering future employment in a position covered by any of the State-administered retirement systems should carefully consider this impact before requesting a distribution. July 2013 Page 3 Fact Sheet #8

16 Fact Sheet #80 ft PUBLICATION OF THE MEW JERSEY DIVISION Of PENSIONS AMD BENEFITS FL Health Benefits at Retirement It is important to note that service time from enrollment in the DCRP cannot be used to qualify for State Health Benefits Program (SHBP) or School Employees' Health Benefits Program (SEHBP) coverage at retirement. Please contact your employer's human resources office or benefits administrator to ask about health benefit coverage options available in retirement. LIFE INSURANCE COVERAGE While serving in an elected or appointed office, DCRP members are covered by" employer-paid life insurance, payable to their designated beneficiaries in the amount of 11/ times the annual base salary on which DCRP contributions were based. This coverage is available without a medical examination to members under age 60. Newly enrolled members 60 years of age or older must undergo a medical examination to qualify DCRP members will continue to be insured for up to two years if on an approved leave of absence without pay for personal illness, '. Note: The Internal Revenue Service classifies all life insurance coverage over $50,000 as a fringe benefit subject to taxation. The amount of the life insurance coverage is not taxable, but the premium required to pay for the life insurance coverage is taxable. Members can elect to waive insurance coverage over $50,000 at 'any time. For more information on this topic, see Fact Sheet #22, Waiver of Noncontributory Group Life Insurance over $50,000. Upon retirement, life insurance under the DCRP reduces to 3/16 of the annual base salary on which DCRP contributions were based. This life insurance coverage is available in retirement only to: Members age 60 or older if the member has completed 10 years of participation in the DCRP; Members of any age if the member has pompleted 25 years of participation in the DCRR The member must also have been an active employee in the twelve months immediately preceding the initial receipt of a retirement annuity payment. Conversion Other than the retired insurance benefit described above, life insurance coverage under the DCRP ceases 31 days after termination.of employment. During the 31-day period following termination of employment, a member may convert existing group life insurance coverage (less any amount of coverage carried over into retirement) into, an individual whole life policy, without medical examination. For more information, see Fact Sheet #13, Conversion of Group Life Insurance. LONG-TERM DISABILITY COVERAGE A member is eligible for employer-paid long-term disability insurance coverage after one year of participation' in the DCRR The member becomes eligible for the disability benefit after six consecutive months of total disability due to an occupational or nonoccupational condition. To be considered totally disabled due to sickness or accidental bodily injury, the member must be unable to perform any and every duty pertaining to his/her occupation.the member need not be confined to home, but must be under a doctor's regular care. Fact Sheet #80 July 2013 Page

17 FL Fact Sheet #80 fl PHBUCATION OF THE NEW JERSEY DIVISION OF PENSIONS AND BENEFITS If a member is totally disabled, the member is eligible to receive a regular monthly income benefit up to 60 percent of the base salary on which DCRP contributions were based during the 12 months preceding the onset of the disability. While disabled, the member's and the employer's mandatory contributions are automatically credited to the member's retirement account. The monthly income benefit is offset by any other periodic benefit the member may be receiving, such as Workers' Compensation, short-term disability, or Social Security. Eighteen months after the onset of longterm disability eligibility, the member must be unable to engage in any gainful occupation for which he or she is reasonably suited by education, training, or experience. Total disability is not considered to exist if the member is gainfully employed, incarcerated, or if the disability resulted from an act of war, or was intentionally selfinflicted. Long-term disability benefits will be paid as long as the member remains disabled or until the member attains age 70. Should the member begin receiving payments under the retirement annuity, these benefits terminate. This fact sheet has been produced and distributed by: New Jersey Division of Pensions and Benefits PO Box 295 «Trenton, New Jersey (609) TDD for the hearing impaired (609) URL\h\\p:llwww.state,nj.us/treasury/pensions [email protected] This fact sheet is a summary and not intended to provide total information. Although every attempt at accuracy is made, it cannot be guaranteed. July 2013 Page 5 FdCt Sheet #80

18 Fact Sheet #82 FL ft P U B L I C A T I O N If THE NEW J E R S E Y D I V I S I O N OF P E N S I O N S AND B E N C F I T S DEFINED CONTRIBUTION RETIREMENT PROGRAM (DCRP) IF INELIGIBLE FOR PERS OR TPAF For Employees Below the Minimum Salary or Hours Required for PERS or TPAF The Defined Contribution Retirement Program (DCRP) was established July 1,2007, under the provisions of Chapter 92, P.L and Chapter 103, PL. 2007, and expanded under the provisions of Chapter 89, PL. 2008, and Chapter 1, PL The DCRP provides eligible members with a tax-sheltered, defined contribution retirement benefit, along with life insurance and disability coverage. ELIGIBILITY Individuals eligible for membership in the DCRP include: State or Local Officials who are elected or appointed on or after July 1,2007; Employees enrolled in the Public Employees' Retirement System (PERS) or Teachers' Pension and Annuity Fund (TPAF) on or after My 1, 2007, who earn salary in excess of established "maximum compensation" limits; Employees enrolled in the Police and Fireman's Retirement System (PFRS) or State Police Retirement System (SPRS) after May 21,2010, who earn salary in excess of established "maximum compensation" limits; Employees otherwise eligible to enroll in the PERS or TPAF on or after November 2, 2008, who do not earn the minimum annual salary for PERS or TPAF Tier 3 enrollment ($8,000 in 2013, subject to adjustment in future years*) but who earn salary of at least $5,000 annually; and Employees otherwise eligible to enroll in the PERS or TPAF after May 21,2010, who do not work the minimum number of hours per week required for PERS or TPAF Tier 4 or Tier 5 enrollment (35 hours per week for State employees or 32 hours per week for local government or local education employees) but who earn salary of at least $5,000 annually. This fact sheet addresses DCRP membership for employees who do not earn the minimum salary or work the minimum hours required for enrollment in the PERS or TPAF. Employees who are already enrolled in a retirement system should refer to Fact Sheet #79, DCRP for PERS, TPAF, PFRS, and SPRS Members. Elected and appointed officials should refer to Fact Sheet #80, DCRP for Elected and Appointed Officials. Chapter 89, P.L. 2008, established a minimum base salary requirements for eligibility for enrollment in the PERS or TPAF. Employees enrolled on or after November 2,2008 and on or before May 21,2010, must earn a minimum base salary of $8,000* or more per year to be eligible for enrollment in Tier 3 of the PERS or TPAF. *The Tier 3 minimum base salary is subject to adjustment annually in accordance with changes in the Consumer Price Index (for 2012 the minimum annual base salary was $7,800, tor 2010 and2011 the minimum annual base salary was $7,700, for 2008 and 2009 the minimum annual base salary was $7,500). July 2013 Page i Fact Sheet #$2 ^

19 Fact Sheet #82 A PMBLIKflTION OF THE MEW 1EBSEY PltflSIOH Of PENSIONS flhd BENEFITS Fb Under Chapter 89, any employee otherwise eligible to enroll in Tier 3 of the PERS or TPAF who does not earn the required minimum annual salary, but earns a minimum base salary of $5,000 or more, must bq enrolled in the DCRR Chapter t, R.L 2010, established a minimum number of hours required for enrollment eligibility in the PERS or TPAR Employees enrolled after May 21, 2010, must work a minimum of 35 hours per week if a State employee or 32 hours per week if a local government or local education employee to be eligible for enrollment in Tier 4 ortier 5 of the PERS or TPAR Under Chapter 1, any employee otherwise eligible to enroll in Tier 4 or Tier 5 of the PERS or TPAF who does not work the required minimum hours, but earns a minimum annual base salary of $5,000 or more, must be enrolled in the DCRR ENROLLMENT The employer 13 responsible for enrolling a DCRP eligible employee as of the starting date of employment by using the online DCRP Enrollment Application available on the Employer Pensions and Benefits Information Connection (EPIC). Enrollment is required for eligible employees. There is no option for waiver of DCRP enrollment for these individuals. When enrolled in the DCRP, members contribute 5,5 percent of the base salary to a tax-deferred investment account established with Prudential Financial, which jointly administers the DCRP investments with the Division of Pensions and Benefits. Member contributions are matched by a 3 percent employer contribution. Contributions are required from the date of DCRP eligibility. If any back-deductions are owed, employers must schedule and remit them to the DCRR If Later Eligible for the PERS or TPAF If an employee enrolled in the DCRP earns sufficient salary or works sufficient hours at a later date to qualify for enrollment in the PERS or TPAF, the employee will be enrolled in the PERS or TPAF. Upon becoming a PERS or TPAF member, contributions to the DCRP under Chapter 89 or Chapter 1 will cease; however, prior contributions remain invested in the DCRP pending retirement or termination of employment Contributions to the DCRP cannot be transferred to the PERS ortpaf, and service credit as a DCRP member is not eligible for purchase of service credit A PERS ortpaf employee may once again become eligible for the DCRP if: The annual salary fails below the minimum salary required for PERS or TPAF Tier 3 membership; deductions will cease and the member will contribute to the DCRP plan. The number of work hours fails below the minimum hours per week required for PERS or TPAF Tier 4 ortier 5 membership; deductions will cease and the member will contribute to the DCRP plan. The annual salary is in excess of the "maximum compensation" limit (members enrolled in the PERS or TPAF on or after My 1, 2007) under Chapter 103, PL 2007 see Fact Sheet #79, DCRP for PERS, TPAF, PFRS, and SPRS Members. Fact Sheet #82 July

20 FL Fact Sheet #82 ft PBBUCflTION BF THE NEW JERSEY DIVISION Of PENSIONS AND BENEFITS The employee becomes a State or local elected or appointed official see Fact Sheet #80, DCRP for Elected and Appointed Officials. Transfer of PERS or TPAF Membership Employees who are PERS or TPAF members and transfer to another PERS or TPAF poa^n are subject to the minimum salary or minimum hours of their existing PERS or TPAF Membership*^/a any of the following situations apply: *^^ The member is transferring to a PERS or TPAF eligible position without a break in service; or Any break in service is 24 consecutive months or less from the date of the last PERS or TPAF pension contribution and the account has not been withdrawn; or Any break in service is 24 consecutive months or less from the end of an approved leave of absence; or. You lose your job through no fault of your own (laid off or your position is abolished not terminated voluntarily or for cause) and you return to PERS or TPAF employment within 10 years of your termination date. If the exceptions described above apply the PERS or TPAF membership tier minimum salary/work hour requirements apply as follows, Membership Tier 1: Members who enrolled prior to July 1,2007 the minimum base salary requirement for enrollment is $1,500 per year for the PERS and $500 for the TPAF. «Membership Tier 2: Members who were eligible to enroll on or after My 1, 2007 and prior to November 2,20.08 the minimum base salary requirement for enrollment is $1,500 per year for the PERS and $500 for the TPAF. Membership Tier 3: Members who were eligible to enroll on or after November 2, 2008 and on or. before May 21,2010 the minimum base salary requirement for PERS or TPAF enrollment is M*QQQ per year (subject to adjustment in future years). Membership Tier 4 or Tier 5: Members who were eligible to enroll after May 21,2010 must work a minimum of 35 hours per wfeek if a State employee or 32 hours per week if a local government or local education employee. If a member transfers into the PERS or TPAF after a break in service that falls beyond the exceptions described above, the member will be subject to the Tier 4 or Tier 5 minimum hours requirement regardless of the previous membership tier status. If the work hours fall below the Tier 4 Tier 5 minimum requirement, the employee will be ineligible for transfer in the PERS or TPAF but will be eligible for DCRP enrollment if the-annual salary is at (east $5,000. PERS and TPAF Maximum Wage In addition Tier 2, Tier 3, Tier 4 and Tier 5 members are subject to a maximum wage limit for PERS or TPAF pension contributions, which is subject to annual adjustment The maximum wage limit for 2013 is $113,700. Tier 2, Tier 3, Tier 4, and Tier 5 members who earn in excess of the annual maximum wage will be enrolled in the DCRP in addition to the PERS or TPAF. See Fact Sheet #79, Defined Contribution Retirement Program for PERS, TPAF, PFRS, and SPRS Members, for more information. ' July 2013 Page 3. Fact Shee

21 Fact Sheet #82 ft PBBUCflTIBH OF THE HEW JERSEY DIVISION OF PENSIONS flnd BENEFITS FL Vesting Employer contributions are not vested in a DCRP member's account until after the member commences the second year of employment unless the member, at the time of initial employment, either (1) participates in a program substantially similar to the retirement program, or (2) is a member of another State-administered pension fund or retirement system. As a vested member, you have a right to a benefit at retirement based on both the employee and employer contributions to the DCRR Withdrawal Withdrawal occurs when a non-vested DCRP member separates from covered employment and submits a request to Prudential for a withdrawal of contributions. Only the member's contributions are available for withdrawal employer contributions are forfeited. After a withdrawal, the individual is eligible for reenrollrnent in the DCRP, or enrollment in another New Jersey State-administered retirement system, upon a return to covered employment. Retirement Retirement occurs when a vested DCRP member separates from covered employment and elects to receive a distribution of funds containing both employer and employee contributions and interest. This action deems the former participant as "retired" and, therefore, ineligible to re-enroll in the DCRP.or participate in any other New Jersey State-administered retirement system. APPLYING FOR RETIREMENT Six months before retirement, a member should contact the employer and Prudential Financial for information regarding DCRP benefits and options. A DCRP member may elect to receive all or a portion of his/her account in a lump-sum distribution, or in a variety of periodic payment methods. Please contact your administrative services provider for more information, All returns of contributions and earnings are considered taxable in the year they are received; therefore, the type of payout plan should be considered carefully prior to retirement There is no minimum retirement age under the DCRR The member will automatically be considered retired, regardless of age, if there is any distribution of mandatory contributions. However, lump-sum cash distributions to members under the age of 55 are limited to the member's contributions and earnings. The remaining employer contributions and earnings are only available after age 55, A member may take a distribution at any time after termination of employment; however, if you return to public employment in New Jersey, you cannot participate in any State-administered retirement system, DCRP members considering future employment in a position covered by any of the Stat^-adrninistered retirement systems should carefully consider this impact before requesting a distribution. Health Benefits at Retirement Please note that service time from enrollment in the DCRP cannot be used to qualify for State Health Benefits Program (SHBP) or School Employees' Health Benefits Program (SEHBP) coverage at retirement Please contact your employer's human resources office or benefits administrator to ask about health benefit coverage options available in retirement. Fact Sheet #82 r

22 Fact Sheet #82 FL A P U B L I C A T I O N OF THE MEW J E R S E Y D I V I S I O N OF P E N S I O N S HMD B E N E F I T S LIFE INSURANCE COVERAGE While employed, a DCRP member is covered by employer-paid life insurance, payable to designated beneficiaries, in the amount of 11/2 times the annual base salary on which DCRP contributions were based. This coverage is available without a medical examination to members under age 60. Newly enrolled members 60 years of age or older must undergo a medical examination to qualify. DCRP members will continue to be insured for up to two years if on an approved leave of absence without pay for personal illness. Note: The Internal Revenue Service classifies all life insurance coverage over $50,000 as a fringe benefit subject to taxation. The amount of the life insurance coverage is not taxable, but the premium required to pay for the life insurance coverage is taxable. Members can elect to waive insurance coverage over $50,000 at any time. For more information on this topic, see Fact Sheet #22, Wa/Ver of Non-Contributory Group Life Insurance over $50,000. Upon retirement, life insurance under the DCRP reduces to 3/16 of the annual base salary on which DCRP contributions were based. This life insurance coverage is available in retirement only to: Members age 60 or older if the member has completed 10 years of participation in the DCRP; Members of any age if the member has completed 25 years of participation in the DCRP. The member must also have been an active employee in the twelve months immediately preceding the initial receipt of a retirement annuity payment. Conversion Other than the retired insurance benefit described above, life insurance coverage under the DCRP ceases 31 days after termination of employment. During the 31-day period following termination of employment, a member may convert existing group life insurance coverage (less any amount of coverage carried over into retirement) into an individual whole life policy, without medical examination. For more information, see Fact Sheet #13, Conversion of Group Life Insurance. LONG-TERM DISABILITY COVERAGE A member is eligible for employer-paid long-term disability insurance coverage after one year of participation in the DCRP. The member becomes eligible for the disability benefit after six consecutive months of total disability due to an occupational or nonoccupational condition. To be considered totally disabled due to sickness or accidental bodily injury, the member must be unable to perform any and every duty pertaining to his/her occupation. The member need not be confined to home, but must be under a doctor's regular care. If a member is totally disabled, the member is eligible to receive a regular monthly income benefit up to 60 percent of the base salary on which DCRP contributions were based during the 12 months preceding the onset of the disability. While disabled, the member's and the employer's mandatory contributions are automatically credited to the member's retirement account. July 2013 Page 5 Fact Sheet

23 Fact Sheet #82 ft PUBUCflTlON OF THE NEW JERSEY PltflSIBM OF PENSIONS UNO BENEFITS FL The monthly income benefit is offset by any other periodic benefit the member may be receiving, such as Workers' Compensation, short-term disability, or Social Security. Eighteen months after the onset of Long-term Disability eligibility, the member must be unable to engage in any gainful occupation for which he/she is reasonably suited by education, training,, or experience. Total disability is not considered to exist if the member is gainfully employed, incarcerated, or if the disability resulted from an act of war, or was intentionally self-inflicted, ". Long-term disability benefits will be paid as long as the member remains disabled or until the member attains age 70. Should the member begin receiving payments under the retirement annuity, these benefits terminate. New Jersey Division of Pensions and Benefits * PO Box 295 Trenton, New Jersey (609) TDD for the hearing impaired (609) URL: Http;// pensions.nj@treas,state,nj,us This fact sheet is a summary and not intended to provide total information, Although every attempt at accuracy is made, it cannot be guaranteed. \s fact sheet has been produced and distributed by: Fact Sheet #82

24 Governor Chris Christie Lt.Governor Kim Guadagno State of New Jersey Department of the Treasury Search Pensions Home j Services A to Z D*pairtmenfc /Ageo.des ] FAQs Select Language T! Disciaimer Division of Pensions and Benefits «~~ -~' CERTIFYING OFFICER LETTERS 2014 Also available; Archived E-Messages to Certifying Officers and EPIC Users SUBJECT 1 DATE Renewal! Required for Annual Membership Certification Required under Chapter 32, PnL Certifying Officers and Supervisors of Certifying Officers PERS Notice of Election - Certifying Officers of the Public Employees' Retirement System (PERS) Compliance with US Internal Revenue Code Bona Fide Severance of Employment Post- Retirement Employment Restrictions for Individuals Covered by any New Jersey State-administered Retirement System - Certifying Officers of the Public Employees' Retirement system (PERS), Teachers' Pension and Annuity Fund (TPAF), Police and Firemen's Retirement System (PFRS), State Police Retirement System (SPRS)/ and Judicial Retirement System (JRS) Behavioral Health Claim Reimbursements Reconsidered - All Certifyina Officers, Human Resource Directors, and Benefit Administrators participating in the State Health Benefits Program (SHBP) and School Employees' Health Benefits Program (SEHBP) Compliance with Internal Revenue Code Maximum Pension Loan Balances - Certifying Officers, All Stateadministered Retirement Systems Pension Contribution Rate Change for PERS and TPAF - Certifyina Officers of the Public Employees' Retirement System (PERS) and the Teachers' Pension and Annuity Fund (TPAF) AffordabBe Care Act Classification.of FuIB-time Employees - State Colleae and University Certifying Officers, Human Resource Directors, and Benefits Administrators participating in the State Health Benefits Program (SHBP) Fiscal! 2015 Alternate Benefit Proaram Default Designated Service Provider - Certifying Officers of State Colleges and Universities ABP Annual Report of Covered Lives Certifying Officers, Alternate Benefit Program (ABP) Health Benefit Contribution Percentage Chancse - State Employees - State Biweeklv Certifyina Officers, State Monthly Certifying Officers Survey ONLY for SHBP and SEHBP Participating Locations that Offer a Private Pharmacy Benefits Manager (PPM) - Certifying Officers,, Human Resource Directors, and Benefits Administrators participating in the State Health Benefits Program and School Employees' Health Benefits Program Online Authorization of Scheduled Deductions Only for Purchase of Service C reels ft - Certifying Officers (PERS, TPAF, and PFRS) Alternate Benefit Proaram Membership Numbers Now Seven Digits - Certifyina Officers, State and County Colleges and Universities September 11, 2014 September 10, 2014 August 22, 2014 July 22, 2014 July 21, 2014 July 21, 2014 July 8, 2014 July 1, 2014 June 30, 2014 June 18, 2014 May 29, 2014 May 27, 2014 April 7, 2014 CERTIFYING OFFICER LETTERS FROM OTHER YEARS 2014 CO Letters 2013 CO Letters 2012 CO Letters 2011 CO Letters 2010 CO Letters 2009 CO Letters 2008 CO Letters 2007 CO Letters 2006 CO Letters 2005 CO Letters j 2004 CO Letters 2003 CO Letters CO Letters 2001 CO Letters 2000 CO Letters 1999 CO Letters 1998 CO Letters 1997 CO Letters Also available Archived E-Messages to Certifying Officers and EPIC Users. September 11, 2014

25 CHRIS CHRISTIE Governor KlM GUADAGNO Lt. Governor TO i FROM: SUBJECT: of 3&to Jersey DEPARTMENT OF THE TREASURY DIVISION OF PENSIONS AND BENEFITS (609) TDD (609) www,state.nj.us/treasury/pensions September. 11, 2014 Certifying Officers and Supervisors of Certifying Officers New Jersey Division of Pensions and Benefits Renewal Required for Annual Membership Certification MAILING ADDRESS: PC Box 295 TRENTON, NJ LOCATION: 50 WEST STATE STREET. TRENTON, NEW JERSEY ANDREW R SIDAMON-ERISTOFF State Treasurer FLORENCE J.SHEPPARD Acting Director Please be advised that this memorandum will serve as official notice to Certifying Officers1 and Supervisors of Certifying Officers1 that it is time to renew your Annual Membership Certification as required under the provisions of Chapter 52, P.L. 2011, MEMBERSHIP CERTIFICATION AVAILABLE ONLINE IN EPIC The Certifying Officer and Supervisor of the Certifying Officer are both required to complete the Chapter 52 Annual Membership Certification, which is available as an online application in the Employer Pensions and Benefits Information Connection (EPIC). All certifications must be completed no later than September 30, The Certifying Officer and Supervisor of the Certifying Officer should immediately; Log on to EPIC go to: and click the (ink "Log on to MBOS or EPIC/' Then log on to mynewjersey and EPIC. On your EPIC Home Page you will see a button for the "Chapter 52 Annual Certification/1 Click the button and the first page of the application will show the Chapter 52 training and certification status of the Certifying Officer and the Supervisor of the.certifying Officer. To complete the Annual Membership Certification, click the "Complete Certification" button, Note: If Chapter 52 training has not been completed by both individuals, it must be done immediately. The "Complete Certification" button will not be available until.the required Chapter 52 training is completed, If-you are able to certify that each member of the retirement system is properly enrolled, click "Yes," You will receive an online confirmation and the.process is completed. 1 "Certifying Officer" is defined in the law as an officer or employee of the State or of an. employer other than the.state who is responsible for submitting information to and performing the duties relating to matters concerning the retirement system with respect to each.of the employees of the employing location, as required by law, the Board of Trustees or Commission, and the'division of Pensions and Benefits, "Supervisor of the Certifying Officer" is designated by the employing location and is required to be the immedjate supervisor of the Certifying Officer as defined above, 2 Chapter 52, P,L 2011, (N.J.S.A. 43:3C-15) requires that both the Certifying Officer arid the immediate Supervisor.of the Certifying Officer receive training in enrollments and annually certify for each member of the retirement system, that the enrolled person is eligible 'for membership in the retirement system in accordance with' the statutes and regulations of the retirement system. Visit: for more about Chapter 52. New Jersey Is An Equal Opportunity Employer Printed on Recycled and Recyclable Paper

26 Renewal Required for Annual Membership Certification Page 2 September 11, 2014 If you are unable to certify that each member of the retirement system is properly enrolled, click "No" and you will be shown a page with detailed instructions on how to report any improperly enrolled individuals to the Division of Pensions and Benefits employers should also remove these individuals from the quarterly Report of Contributions, Once any instance of an improperly enrolled worker has been reported with the Division, you will receive a follow-up from the Division with instructions that you may return to EPIC and complete the Annual Membership Certification, Immediate action is required. The Certifying Officer and Supervisor of the Certifying Officer must each complete the Annual Membership Certification no later than September 30, Failure to do so will prevent the Division from accepting any new enrollment applications from the employing location until the certifications are completed. CERTIFICATION IS REQUIRED ANNUALLY Under the provisions of Chapter 52, Membership Certifications are due annually, each September, Employers will receive notification that memberships are again due for certification in September 2015s and each year thereafter; IMPORTANCE OF PROPER ENROLLMENT Improper enrollment of ineligible individuals in the retirement systems results in pension abuse and a loss of public confidence in local and state administrators. Failure to complete the required training and/or Annual Membership Certification may also result in financial hardship for your employees and financial harm or other penalties for you, the employer. Until Chapter 52 training and the Annual Certification is completed: Your employing location cannot process enrollment applications or transfers until both the Certifying Officer and the Supervisor complete training. Employees with delayed enrollments will have significantly larger back deduction amounts resulting in longer repayment schedules, Your employing location may be subject to a delayed enrollment liability if an employee is not properly enrolled in the pension system in a timely manner. An employer who enrolls, or permits the continued enrollment of, an individual who is ineligible for membership in the retirement system will be subject to prosecution under N.J.SA 43:3C-15 "any person who knowingly makes a false statement, or falsifies or permits to be falsified any record, application, form, or report of a pension fund or retirement system, in an attempt to defraud the fund or system will be guilty of a crime of the fourth degree/' It is essential that public employers remain up to date with the enrollment eligibility training and certification requirements- The Division of Pensions and Benefits expects that all Certifying Officers and their Supervisors will make every effort to ensure that their location is in full compliance with this law. 3 In the event of a change in either the Certifying Officer or the Supervisor of the Certifying Officer, the new individual must complete both Chapter 52 training in enrollments and complete a new membership certification. ^ff

27 Renewal Required for Annual Membership Certification Page 3 September 11,2014 ENROLLMENT AND TRANSFER FORM UPDATES Please also note that'the Division has updated its online and paper Enrollment Applications and Report of Transfer forms to reflect the Chapter 52 training and certification requirements. While' it remains a requirement that employers use the online Enrollment Applications available in EPIC whenever possible, in cases where paper Enrollment Applications or Transfer Forms need to be submitted to the Division, employers must use the most recent versions of the printable forms. Older versions of the forms will be rejected and returned for employer compliance, Current versions of the Enrollment Applications and Transfer Forms can be obtained from the "Forms Index" of the Employers' Pensions and Benefits Administration Manual (EPBAM) at: ADDITIONAL INFORMATION If you have questions or require additional information about Chapter 52 or any of the information in this letter, contact the Division of Pensions and Benefits, Employer Education Unit at (609) , or send to: pensions,nj@ treas.nj.gov

28 CHRIS CHRISTIE Governor KIM GUAOAGNO Lt. Governor of K DEPARTMENT OF THE TREASURY DIVISION OF PENSIONS AND BENEFITS (609) 292^7524 TDD (609) ww\v,5t<ite,nj.us/treasury/pcnsions August 22, 2014 MAILING ADDRESS: PO Box 295 TRENTON, NJ LoovnoN: 50 WEST STATE STREET * TRENTON, Nuw JERSEY ANDREW P. SIDAMON-ERISTOFF State Treasurer FLORENCE J, SHEPPARD Acting Director TO: FROM: SUBJECT: Certifying Officers of the Public Employees' Retirement System (PERS), Teachers' Pension and Annuity Fund (TPAF), Police and Firemen's Retirement System (PFRS), State Police Retirement System (SPR3), and Judicial Retirement System (JRS) Florence Sheppard, Acting Division of Pensions and Benefits Compliance with US Internal Revenue Code Bona Fide Severance of Employment Post-Retirement Employment Restrictions for Individuals Covered by any New Jersey State-administered Retirement System New Jersey State-administered retirement systems do not permit the payment of retirement benefits without a severance from public employment This memorandum addresses restrictions pertaining to the re-employment of retired members from any of New Jersey's.State-administered retirement systems. It also discusses a new form for all employers called the Notification of Employment after Retirement This form must be completed whenever you, the employer, engage the services of any retired New Jersey public employee. This requirement pertains to your former employees as well as those who retired from another New Jersey public employer INTERNAL REVENUE CODE The PERS, TPAF, PFRS, SPRS, and JRS are established as qualified governmental defined benefit plans in accordance with Internal Revenue Code (IRC) Sections 401 (a) and 414(d). In order to preserve the qualified status of these plans and to protect retirees from a 10% excise tax penalty on their monthly retirement payments, the Division of Pensions and Benefits was required to adopt and to enforce regulations to ensure compliance with the IRC requirements. "Compliance with Internal Revenue Code" was adopted as a special new rule, effective March 9, 2012, under Title 17, Chapter 1, Subchapter 17, of the New Jersey Administrative Code, The provisions of N.J AC. 17: , were needed to clarify criteria regarding retiree re-employment. N.J.A.C. I7:1-I7.l4.2(a) states: mbona fide severance from employment' means a complete termination of the employee's employment relationship with the employer for a period of at least 180 days.1 The following does not constitute a complete termination of the employee's relationship with the employer: i. Employment or re-employment in a part-time position; ii. Employment or re-employment in a position that is not covered by the Defined Benefit Plan; 1 Employees who work a 10-month school year and retire on July 1 or August 1, must count the 180-day severance of employment from the start of the following normal school year in September, New Jersey Is An Equal Opportunity Employer Printed on Recycled and Recyclable Paper

29 Compliance with Internal Revenue Code - Post-Retirement Employment Restrictions Page 2 Bona Fide Severance of Employment.. '. August iil A change in title; iv. Employment or re-employment as a contract employee, a leased employee,2 or an independent contractor; "or v. Termination of employment with a pre-arranged -agreement for re-employment Federal Internal Revenue Service factors shall be used as guidance in.determining whether an employment relationship exists. A mandatory retirement shall be treated as a 'bona fide severance from employment."' " The above 180-day requirement does not apply to individuals who were required to retire under the mandatory retirement provisions of the PFRS, SPRS, or JRS, Re-employment by a different unit of the same public entity, whether in a position covered by the same retirement system or a different retirement system, is considered to be employment by the same employer,. Example 1 - a State employee who retires from" one State agency and returns to work as a full- or part-time employee or independent contractor at the same or any other State agency, including a State university, within days following retirement is considered to be returning to work for the same employer. A bona fide severance from employment has not occurred and the individual does not qualify for the receipt of retirement benefits, Example 2 - a TPAF member who retires from a school district and returns as a part-time teacher in the same, district within 180 days following retirement is considered to be returning to work for the same employer. A bona fide severance from employment has not occurred and the individual does not qualify for the receipt of retirement benefits. Further, if an employee holds more than one position with the employer, he -or she must separate from all employment in -order to retire, even if the positions are covered-by different retirement systems, or the second position is not subject to pension contributions,. Example 3 - A municipal fireman, enrolled in PFRS, also works in a PERS position, for -the same municipality. In order to retire from the PFRS, the member must terminate from'both positions in order to qualify for retirement benefits from the PFRS. Further, the individual must be terminated from each position for at least 180 days prior to any consideration of return to. employment in the non-pfrs position.. Example 4 ~ A State employee in the executive branch is also an adjunct faculty member at a State college. The executive branch, position is covered by the PERS; the adjunct-faculty position is covered by the Alternate Benefits Program (a defined contribution plan). In order to retire from the executive branch position and collect PERS benefits the individual must also separate from the second State position, even though the position is-covered by a different retirement system. 'Further, the individual must be terminated from each position for at least 180 days prior to any consideration of return to employment in the non-pers position. 2 This includes services provided to all employers who are party to a shared service agreement with your former employer...

30 Compliance with Internal Revenue Code - Post-Retirement Employment Restrictions Page 3 Bona Fide Severance of Employment August 2014 Consequences of Invalid Re-employment If an individual returns to public employment with the former employer prior to satisfying the requirements of a bona fide severance from employment, the employee will be required to repay all retirement benefits received from the date of retirement and may be required to re-enroll in the same or a different retirement system. For example, a former employee of a county returns to county employment 135 days after retirement in a position that is not covered by his former retirement system. The former employee has not met the requirement for a bona fide severance from employment and will be required to repay all retirement benefits and be enrolled in the appropriate retirement system. AH employee/employer pension remittances related to the new enrollment will be retroactive to the date of re-employment. This individual will also not qualify for the receipt of retirement benefits from his former retirement system until he separates from all county employment. The IRS does not consider a pre-arranged return to public employment to be a bona fide severance from employment no matter how long the break in employment If the employer and employee make an arrangement prior to the employee's retirement to return to the same employer in any capacity, including as a volunteer at any future time, regardless whether the position is covered by the former retirement system the employer/employee relationship is not completely severed and the retirement will be invalid, Should this occur, the employee will be required to repay all retirement benefits received from the date of retirement and may be required to re-enroll in the same or a different retirement system. All employee/employer pension remittances related to the new enrollment will be retroactive to the date of the employment This would apply even if he or she waited 180 days before returning to the public employment. Education Employees - Special Provisions for Critical Need Employees N.J.S.A. 43;15A-57.2(c) and 18A: (b) provide an exemption from pension re-enrollment for certain retirees of the PERS or TPAF who are certificated superintendents or certificated administrators and who are hired in a position of critical need. Termination of employment for 120 days with a pre-arranged agreement to return to that employer will not be considered a bona fide severance from employment. While New Jersey law permits these retirees to return to employment with the same employer after 120 days without re-enrollment into the retirement system, the 180-day requirement still applies for tax purposes when considering the pension as an early distribution. A retiree who is under the age of 59% and returns to employment with the same employer prior to a 180-day break in service may therefore be responsible for excise tax penalties under IRS regulations. (The retiree must report the early distribution tax on IRS Form 5329), The Division of Pensions is required to report the premature distribution on the retiree's Form 1099-R, Education Employees - Special Provisions for Coaches Chapter 21, P.L 2014, enacted July 30, 2014, permits a former member of the TPAF, who has been granted a retirement allowance for any cause other than disability, to become employed again with the former employer as a coach of an athletics activity if the following conditions are met: (1) the reemployment commences after the retirement allowance becomes due and payable3; (2) the former member had attained normal retirement age as of the date of retirement4; and (3) the compensation for the employment is less than $10,000 per year. 3 Either more than 30 days after the date of retirement, or more than 30 days after the retirement has been approved by the Board of Trustees of the TPAF, whichever date is the later of the two, 4 Normal retirement age for members of the TPAF means age 60 for persons who became members before November 2, 2008 (Tiers 1 and 2); age 62 for persons who became members on or after November 2, 2008 (Tiers 3 and 4); age 65 for persons who became member on or after June 28, 2011 (Tier 5).

31 Compliance with Internal Revenue Code - Post-Retirement Employment Restrictions Page 4 Bona Fide Severance of Employment August 2014 EMPLOYER RESPONSIBILITIES If you retain the services of any individual who is retired from one of the New Jersey Stateadministered retirement systems, you are required to complete the Notification of Employment after Retirement form and submit it to the Division of Pensions and Benefits within 15 calendar days of the date of hire. The notification form will be reviewed by the Division to determine if the returning retiree can continue to receive retirement benefits while re-employed, or if the retirement must be canceled and the employee enrolled in the same or another retirement system, The employer must also notify the Division when the employee's services to the employer have been terminated. Completed notification forms should be submitted to; External Audit Unit, Division of Pensions and Benefits, P.O. Box 295, Trenton, NJ, ADDITIONAL INFORMATION Additional information regarding the taxability of pension benefits can be found in Fact Sheet #12, Taxation of Retirement Benefits. For specific questions regarding the tax implications of returning to enjoyment after retirement, current or former employees should consult with a professional tax advisor or contact the IRS at 1^800-TAX-1040, If you have general questions regarding any of the information provided in this letter, contact the Division's Office of Client Services -at (609) , Or the Division at; Enclosure Employer form: Notification of Employment after Retirement

32 P RS TPAF TJER1 Minium base safety of $1,300 required far PERS Tier 1 enrollment IRS Annual compensation Umlt ($245,000 in 011, 010, and aoogf $236rOOOln2008), Minimum b^sesalajy of required for TPAFTlerl enrollment, Compensation Limit on maximum salary generally apply 201 Or and 2009]* $ 30,000 In 2008), PERS AND TPAF SALARY OR HOURS REQUIREMENTS FOR ENROLLMENT BY MEMBERSHIP TIER All other PERS or TPAF enrollment requirements must be met in addition to minimum hours or^lary T1BR2 ft for enrollment; o 2007 and Mb/ Minimum base salary o required for PERS- Tier 2 enrollment. PERS salary IlirillBdfo Social s&curiiy maximum wa^a ($106,800 in 2011,2010, and 2009;- $102,000 In 2008), PERS members are efelbla for contribution BeUrernsnt Program (DCfip) for salary over he maximum wage limit Minimum base salary of $500 required for TPAFTJer^ enrollment TPAFsalaiy limited to social Security maximum wage ($los;aoo m 2011, 2olo, and 2009; ^102^000 In 20oe)r TPAFlnsrabers are. participation In the Defined contribution Retirement pro^mm (DGRP) for^alaiy over the TIERS' for, enrollment -pa or-sfie? November :,-2,008-and oft-or ' Minimum base.salary required for PERS Tiers enrollment {$7;7oo in 2011 and 201 Qj; $7;500 in and 2.008; -subject to adjustment In futuraye^r-s.) Employees-v/ith base-safaiy betv^esn ^5",ooo and currentmlntmimpbrs Tiers salaiy ara eijglblafor partofp^tlon In the petlned Contribution Retirement Program (DDRP). PERs salary limited-to social security maximum wa^e [$tpe;8oo in 2011, 2010, and 2009; $102,000 In 2008). PERS- members are eltsflble for thadgrp for salary over the maximum v/aga limit Minimum base-salary required for TPAF Tier-3 enrollment ($7,700 In sofl and 2010} $7^00 In 2009 and 200B; subject to adjustmentln future ye^rs4) Employees with bas&salarybety/een $5,000 and currentmlnlmum TPAF Tier 3 salaiy are eligible for participation In the Defined Contribution Retirement Program (DGRp). TPAF salary limited to -Social Securlfy maximum wage C$1 oe?aoo in 2011, 2010, and 2009J $102,000 In 2D08). TPAFt^embers^re eligible for parficlpatton In the DpRp for-salary the maximum wage jinflt : JIER4 (Eligibl 201 o--antf 201:1) PERS Tier 4 enrollment requires a minimum of s5 honr-sperweekfor state Employees, of 32 ho'ur-s perweekfor Local government or Local Education Employees, Ko mln(ma>u salary requirement Employees-who do nol Work the minimum required hours'but-who earn basa salary of at Jeast^OOO are elfglblafor partlclpa86n in the Defined contribution Retirement Program (DOHP). PERS salary Umitecj to social Securtty maximum wage (-$tos,boo in 2011, 2010, and 009] $l02rooo in 200S)r PERS members are- eligible for participation In th^ DORP for salary over the maximum wage- limit TPAFTl8r4 enrollment requires a mfnlmam of 35 hours parweekfor state Employees, or se hours per w Local Education Employees, Ho Employees V/ho do not Workthe minimum required hours but who earn base -salary of at least^ooo are eligible for participation, in the Defined contribution Retirement program (DCRP), TPAF salary limited to -Social -Security maximum V/a^e ($106,800 ffi 0l1, 9; $102^000 in aooa), TPAF member^ are eligible for DGRp for s-alary over TIERS, (Eligible, for enrollment ofl orafi&r PERS Tier 5 enrollment requires a minimum of a& hours p^r^veekfor staf& Employees, orse hours perweekfor Local government or Local Education 1 Employees*. Ko minimum ^afery requirement Employees who do network the. minimum required hours but who earn bass salary of afcleast-feoqo are $})Slble for participation In the Defined contribution Retirement Program PERS -salary limited to Social Securft/- maximum wa^e ($ioe78ooin[ 2011, 2010, andaoog? $102,000 PERS members ar^ participation In tha DGRp for -salary o\rer the maximum wa^e limit minimum Employees, or 32hour^ per V/e6)cfor llocal Employees: who do mlnrmutu required hours butwho oarn bas&sgdar/ of at lea^t $5,000 are eligible for participation In the Defined Contribution Betlretn&n^ Pro^raiB (DORP). TPAFsalary limited to Social Security maximum wage $106,800 fn ^Q11> 2010, and 009; $10^.000 in 2008). TPAFmember-s- ate eltglwe for partidpaiion In the DORP for -salary over *For loyers imadopted Gh -J1&, PJ* fw7 Hie Tier 1 MzxtfflUm salary fc $$BOT000 forzoll, 2010, Ind2009,

33 Eligible PERS AND TPAF RETIREMENT BENEFITS BY MEMBERSHIP TIER,, TIBR3 ; - ' T1ER4 -. (Eligible f^r 6^ro (m&nt off or after (Eligible fap enrollment; afte/- TIER 5 (HlfilW* for enrollment on. SERVIQB RETIREMENT. Minlmum'ao;e.ofeo; HP minimum service- required Annual Benefit Years of Service ^56 X Final -AWfle (a yr«4 - Minimum age of eo, no minimum service. requl Annual Bane (ft = ' Yeats- o f -Service ^r 56 X Final Average (^yr^) Safety,. Minimum age. of 6^, no minimum service required, Annual Benefit^ Years of Service 4» 55 X Final Average (3 yrs.^ Salary no minimum service required. Annual Benefit «Years of Service * SO X Final Average (5yr«,) -Salan/i Minimum age of 6^ no minimum service required'- Annual Benefit^ Year^ of Service -=-< GO XRnal Average. (5 yrs>) Salary,.pEEfERRED Collectable. at acft 0^ at feast 10 years of service required. Annual Benefit^ Years of Service ^ 6" X Final Average (3 yr-sv) Salary; COlleotaWe ataga 60; atle^stloyear-s-of service required, Annual Benefit^ Years- of Service ^ 55 X Final Average (3 yrsj) Collectable at age 62^ atleastioyeatsof ' service required. Annual Benefit^ Years of Service + 5 X Final Average (3 yr-s,) Salary. service required, Annual Benefit^ Yea.fc6f Service -7- GO X Final Average (styrs,) salary. a least 10 years- of service requlrecf. Annual Benefit^ Years of Service ^ ^0 X Final Average, (s yr&o Salary. EAHLY V : VETERAN' * HETlREMElsjT At east2$yearsof sett/tee required, Annual Benefit^ Yeaj-sofSfctvIoe-fSS X Final Average (ayrs~) Safety, No minimum age{ however, if under age of ^ the benefit!? reduced & percent peryear (1/4 ofi f>ercent per month) for eaoh year under aye 55. At least 25 year-? of servfco at a^e 55 or older] pr at least 20 years of service at ag> so or olden ' Annual Ben$fJtp~- 4v parent Xlastyear or highest 12 months- of salary; or At leastas ye^s of -service ' at age or older, Annual Benefit^ X Highest 12 Months of Salary, service required Annual Benefit^ Yee/a of Service -f 55 X Final Averag& (Syrs.) Salary, NO minimum age; however, If under age of W, the benefit fs reduced 1 percentperyear (1/12 Of 1 percent permotith)) for eagh yeaf under age 60 t>utwerage 55; andf 3 percent per year (1 /4 of 1 percent per month) for each year under a^e 5 j At leasts years- of service. at a.ge 55 or oldsr; or at least RO years of service at ag 6 eo or old en, Annual BeneHt^64,5percent X last year or highest 12. months- of At [e$st«3 y8ars of servfca atage,55 or older. Annual Benefltt=: Years of Service ±55 X Hlg:h^t12Months of Salary. At Ieast25 years of service require d* Annual Benefit^ " Years- of Service--^ 55 X Final Average [S yrs.) Salary, No minimum age) hwevefj ]f under age of 62, the benefit Ts reduced 1 per cent peryear (1/12 of 1 percent per month) for eaoh year tinder age 6 but OVer age 55;- tf)d3 percent peryear (1/4 of 1 percent per month) 1br $ach year under age 55, At jeast 5 years of service atage556ro(derj or at least 20 years of service ataga 60 or olden Annual BeneJft-545 percent X tastyear-or highest 12 months of salary; of At (east35year-s- of sefvlce t^ge55orolder. * Annual Benefit^ Yea s Qf5ervI(?eT 55 X Highest 12 Monte ofsalaiy. At least 25 years- of service required. Annual Benefit- Years of Sen/toe -f 0 X Final Average ( yrs,) JSJo minimum age- however If under a,ge of 62; tha benefit Is reduced 1 percent paryear (1/12 of 1 percent per month) for each year underage $Z but over age 55f and S percent peryear (1/4 of 1 percent per month) for each year Under age 55, Atleast2 ye$rs of service at least 20 years of -service atag&eo or old en Annual Beneflt=54J.5" percent. X lastyestf or highest 12 months of salary? or At Ieast35 years of service Annual Benefit^ Years-ofSen/lce-55 X Hlghestis Months of Salary, AtJeast30 year^ of service required. AhnUal Benefit^ Year-s-of Service -4- GO X Final Average (5 yrsf) Salary, No minimum age; ho\veyer4 If under a^e of GSy1he freftefftfe - reduced ^ percent peryear. (1/4 of 1 percent per month) for each year under age G^ At'Jeast 25 years of service at age 65 or older; or at least 20 yeat-s- of-service #tage60 or older, Annual Behefft=*54 percent X last year or highest 1 mon ths of salary; or At fe3si35yeafe vf sen/ice at age 55 or older. Annual Benefit^ Yesfr of Service ^55 X HTojiest 12 Months- of Salary, Asor6/^8/20'f:1

34 'tW ' i ; '*» ; ' ;. ' QRDWAW. - 'DlSABJUTy- :..\RErm6MENT PERS AW TPAF DISABILITY RETIREMENT BENEFITS BY MEMBERSHIP TIER T( a2 '..- ' TIER1 '*[ZWplMtefoM(\]y]r-2too7} (f approved^ AntlU^l benefit^ 43,Gpsr(?en-lX Btiai AVemge (3 yrs.) Safety, tsifllbja fbr entollme^t oft QT gffer J ulyiy an d before. N6V«Mber^2008) if approved! Annual benefit^ 46T6 percehtx Final Average (a yrs,] -Salary '.. t!br3 (Eligible for ejarolltoetit on gy ^fter *JS(oVertlb^r^j:2008.qnc( on or '-,dflforajy(ay^l/2p10} ]f appmvedf Annual benefit s= 4ff16 peroentx Final Average (.3 yjfeg saferyc T1ER4. (Eligible foj1 siirpllment -afte? May 1, ^OtO «^ Before ^ane28;2011) MoTAVAfLABLE FHHSTTer4 member^lnaybe eligible for bfeablltty Insurance CoVerag.et,, 1.TIER 5* " ' ; '(.Elfgible fofenrollirieht on <#^ ^erjane^ff^oil) >% ttoravmafftz PERS Tl&r 5 member ma,y be eiy ble for Dtsablllty Insuranoeooyerage* " '-ACCDDEKT^L -\ ;,. DISABILITY * ' ' ' '.RETIREMENT ' ' If approved^ Annual Benefit- 75,7 percentx-annual S&teiy atffmbofaooldent If Approved! Annual Benefit^ 72 J peroentx Annual Salary at time of accident If approved Annual Benefit- 7^,7 petcenfcx Annual Salary athme ofaocldenh wor^^xihiafl^ TPAF Tier 4-meWbers Way be eligible for Disability Insurance Coverage, ^orawi/wmh TPAFlter 5" members may beeligible for Dlsabjlliy Insurance Govefeige,

35 r.^^^ Is/a n roars, ht Oil-call Employees Qn-call employees, such as substitute teachers, bedside instructors, or home bound instructors, who are hired on or after May 21,2010 must now meet the requirements for Tier 4 PERS membership, including the minimum hours required weekly, in order to become a member of the PERS: 35 hours for State employees, or 32 hours for local government or State education or local education empfoyees. Those on-call employees hired on or after May 21, 2010 who do not meet the requirements for Tier 4 PERS membership are ineligible for PERS enrollment On-call employees may be eligible for enrollment in the Defined Contribution Retirement Program (DCRP). Monitoring of On-Call Employees after Enrollment (Tier 1, Tier 2, and Tier 3 Only) On-call employees with Tier 1, Tier 2 or Tier 3 PERS membership were enrolled in the PERS based on the number of days worked. Once an on-call employee had worked 100 days in a one-year period, the employer enrolled the employee in the PERS on the first of the 13th month of employment For on-call employees with Tier 1, Tier 2 or Tier 3 PERS membership, the employer does not need to monitor the number of days worked once enrollment has occurred. Instead, the employer must monitor the employee's monthly salary, because the^eioeioj^e rn< ><y, s^q- -IPJ^ f 8^ted by the enmk^^' On-call employees who being employment after May 21,2010 are generally ineligible for rmembership in the PERS, unless they can achieve the minimum number of hours required for PERS Tier 4 membership. Earliest Enrollment Date for On-call Employees The first day of the thirteenth month of employment was previously the earliest that on-call employees could be enrolled in the PERS. For example, an on-cali, ten-month employee was hired on February 1, 2008 and worked, oh average, 20 days per month and accumulated 100 total days of service as of the end of June 2008, Even though this employee had reached 100 days of on-call employment with one employer by June 2008, the employee was not yet eligible for enrollment Only when the employee returned to work in September 2008 and worked through January 2009 could the employee be enrolled in the PERS on the first of the 13th month February 1, 2009, Report Actual Salary after Enrollment, PERS Tier 1, Tier 2, or Tier 3 ONLY Once an on-call member in Tier 1, Tier 2, or Tfer 3 of the PERS has established his or her enrollment in the system and pension deductions have begun, the employer should report the members actual salary, I L

36 There is a minimum monthly salary that must be earned each month for pension service credit and salary to be reported. For Tier 1 asid Tier 2: When a 1 0-month member has a monthly importable salasy of $150 (one-tenth of 15500) or more, the employer should deduct pension contributions and report one month of service credit for the member for that month, For a 12-month member, the employer should deduct pension contributions and report one month of service credit for the member for that month if the member has a monthly reportabfl salary of $1 25 (one-twelfth of $1,500) or -more. For Tier 3: When a 1 0-month member has a monthly importable salary qyal to rue-tenth off the minimum salaty required for Tier 3 e^roljment for the current year or more, the employer should deduct pension contributions and report one month of service credit for the member for that month. For a 12-month member, the employer should deduct pension contributions and report one month of service credit for the member for that month if the member has a monthly reportable salary of one-twelfth of the mininmum salary required for Tier 3 enrollment for the current year or or AH months of service and salary must be reported from the date that payroll deductions are certified to begin. If a member's salary falls b Iow the minimum level for membership for a month, then that month's service and salary are not reported on the Quarterly Report of Contributions. Click here for rrvcr imsiisimfig- Please note that once a Tier f, Tier 2 or Tier 3 memiber has established his or her enrollment in the retirement system, the employer does not need to monitor the number of days worked. Long Term Substitutes and Replacement Teachers A replacement teacher Is an employee who assumes the duties of a teacher in a regularly-budgeted position for the length of time that teacher is on an approved leave of absence. Replacement teachers are eligible for PERS enrollment on the first day of the 13th month after the commencement of continuous service. If a replacement teacher is repfacing a teacher on terminal leave, he or she is eligible for TPAF membership. A permanent, long-term substitute in a regularly budgeted position is eligible for PERS enrollment on the date of hire.

37 Long Term Substitutes (Permanent) and'replacement Teachers A replacement teacher is an employee who assumes the duties of a teacher in a regularly-budgeted position for the length of time that teacher is on an approved leave of absence.. PERS: Not eligible for enrollment until after 12 months of continuous service. Replacement teachers are eligible for PERS enrollment on the first day of the 13th month after the commencement of continuous service. TPAF: Immediate if for. terminal leave. If a replacement teacher is replacing a teacher on-terminal leave,, he or she is eligible for TPAF membership. A permanent, long-term substitute is an employee in a regularly budgeted position (The position requires they report to the district and substitute where nece'ssary) PERS: Eligible for enrollment on.the date of hire. Please see the link below to the employer manual that addresses replacement teachers: ^ c