Assemblyman THOMAS P. GIBLIN
District 34 (Essex and Passaic)
Assemblywoman CELESTE M. RILEY
District 3 (Cumberland, Gloucester and Salem)
Assemblywoman CONNIE WAGNER
District 38 (Bergen and Passaic)
Provides for distributions from ABP during transition to retirement programs for faculty at institutions of higher education.
CURRENT VERSION OF TEXT
An Act concerning certain distributions from the Alternate Benefit Program and amending P.L.1969, c.242.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 9 of P.L.1969, c.242 (C.18A:66-175) is amended to read as follows:
9. Membership or participation in the alternate benefit program shall terminate and the individual shall be considered retired once he has elected to receive a [cash] distribution of the value of his accounts in a direct payout, a rollover, an annuity, or a combination thereof. Any such distribution shall occur only upon separation from service [or an annuity option from the designated insurer or insurers or a designated mutual fund company or companies, as appropriate], unless the individual is a participant in a transition to retirement program that meets the requirements for such programs established by the Division of Pensions and Benefits.
(cf: P.L.1993, c.385, s.7)
2. Any actions taken in accordance with section 9 of P.L.1969, c.242 (C.18A:66-175) as amended by P.L. , c. (pending before the Legislature as this bill) are hereby validated.
3. This act shall take effect immediately and shall be retroactive to July 1, 2008.
This bill amends a provision of the Alternate Benefit Program (ABP) to allow a distribution of retirement benefits prior to separation from service for any individual who is a participant in a transition to retirement program which meets the requirements established by the Division of Pensions and Benefits in the Department of the Treasury. The bill clarifies that the division may authorize a transition to retirement program by regulation.
Transition to retirement programs allow public colleges and universities to retain retiring experienced senior faculty members on a limited basis. These programs permit a faculty member to receive a distribution from his or her retirement account in the ABP while continuing to work at a reduced level of assignment for a period of time. The bill is retroactive to July 1, 2008, to provide for its applicability to current transition to retirement programs at public colleges and universities.