ASSEMBLY STATE GOVERNMENT COMMITTEE

 

STATEMENT TO

 

ASSEMBLY, No. 1372

 

STATE OF NEW JERSEY

 

DATED: MARCH 11, 1996

 

      The Assembly State Government Committee reports favorably Assembly, No. 1372.

      This bill permits employees of the Department of Education, the Commission on Higher Education, or the governing body of any public institution of higher education who participate in the State-administered Supplemental Annuity Collective Trust (SACT) under section 403(b) of the federal Internal Revenue Code to transfer funds from their SACT account to a tax-deferred annuity with an insurer or mutual fund company authorized by P.L.1995, c. 92 to provide investment contracts to these employees.

      P.L.1995, c.92 authorized these employers to permit their employees to invest in tax-deferred §403(b) retirement accounts with providers eligible to offer such contracts under the alternate benefit program. (The ABP is a deferred compensation plan available to higher education faculty). That law did not, however, authorize transfer of the employees' deposits with SACT to their accounts with the new providers.

      This bill was prefiled for introduction in the 1996 session pending technical review. As reported, the bill includes the changes required by technical review, which has been performed.