ASSEMBLY, No. 1268

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblyman COLLINS

An Act concerning membership in and withdrawal from the Supplemental Annuity Collective Trust and amending and supplementing P.L.1963, c.123.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. Section 7 of P.L.1963, c.123 (C.52:18A-113) is amended to read as follows:

    7. Contributions by a participant shall be made through payroll deductions of integral dollar amounts not in excess of 10% of the participant's salary. Participants who are making contributions through payroll deductions may also make lump sum contributions by direct payments in integral dollar amounts of not less than $50.00, provided, however, that the total contributions for any one year may not exceed 10% of the participant's annual salary.

    Contributions by a participant shall cease upon retirement, death, [or upon] termination of membership in a State administered retirement system or withdrawal from the Supplemental Annuity Collective Trust.

    2. (New section) Any participant may elect to terminate participation in the Supplemental Annuity Collective Trust without terminating membership in any State administered retirement system by filing a withdrawal application with the Supplemental Annuity Collective Trust.

    In that event, the participant shall receive a single cash payment which shall be an amount equal to the value of his account as of the last day of the calendar month in which he ceases to be a participant of the Supplemental Collective Annuity Trust.

    3. This act shall take effect immediately.

STATEMENT

    This bill permits Supplemental Annuity Collective Trust participants to terminate their participation in the Supplemental Annuity Collective Trust without affecting their membership in State administered retirement system. This bill also provides that a person who ceases participation in the Supplemental Annuity Collective Trust shall receive a single cash payment in an amount equal to the value of his account as of the last day of the calendar month in which he ceases to be a participant of the Supplemental Annuity Collective Trust.

Permits termination in the Supplemental Annuity Collective Trust without affecting membership in the State Retirement System.