ASSEMBLY, No. 2075

 

STATE OF NEW JERSEY

 

INTRODUCED JUNE 3, 1996

 

 

By Assemblymen CARABALLO and Kramer

 

 

An Act concerning the New Jersey State Employees Deferred Compensation Plan and supplementing P.L.1978, c.39 (C.52:18A-163 et seq.).

 

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

 

    1. In addition to the investment options offered by the New Jersey State Employees Deferred Compensation Board, the New Jersey State Employees Deferred Compensation Plan shall include as investment options the insurers or mutual fund companies designated pursuant to section 3 of P.L.1993, c.385 (C.18A:66-172.1) to provide investment contracts under the alternate benefit program. A State employee who enters into a written agreement to have a portion of the employee's salary deferred and deducted each payroll period pursuant to section 3 of P.L.1978, c.39 (C.52:18A-165) may:

    a. elect to allocate all or a portion of the amount deferred and deducted from the employee's salary to an account with one or more of the designated insurers or mutual fund companies or to an investment option offered by the board; and

    b. direct the transfer of: (1) all or a portion of the employee's accumulated deferred compensation funds invested with any of the designated insurers or mutual fund companies to another of those insurers or mutual fund companies or to any of the investment options offered by the board, and (2) all or a portion of the employee's accumulated deferred compensation funds invested in any of the investment options offered by the board to any of the designated insurers or mutual fund companies.

 

    2. The designated insurers or mutual fund companies shall be authorized by the board to receive all or a portion of an employee's accumulated deferred compensation funds and all or a portion of the amount deferred and deducted from an employee's salary within 90 days after the effective date of this act.

 

    3. The New Jersey State Employees Deferred Compensation Board shall promulgate rules and regulations in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to effectuate the purposes of this act.

 

    4. This act shall take effect immediately.

 

 

STATEMENT

 

    The purpose of this bill is to provide State employees who participate in the New Jersey State Employees Deferred Compensation Plan with additional investment options. It provides that in addition to the investment options offered by the New Jersey State Employees Deferred Compensation Board, the plan shall include as investment options the insurers or mutual fund companies designated to provide investment contracts under the alternate benefit program. A State employee may elect to allocate all or a portion of the amount deferred and deducted from the employee's salary to an account with one or more of the designated insurers or mutual fund companies or to an investment option offered by the board. A State employee may also direct the transfer of: (1) all or a portion of the employee's accumulated deferred compensation funds invested with any of the designated insurers or mutual fund companies to another of those insurers or mutual fund companies or to any of the investment options offered by the board, and (2) all or a portion of the employee's accumulated deferred compensation funds invested in any of the investment options offered by the board to any of the designated insurers or mutual fund companies.

    At present, State employees may only choose among a State-administered bond fund, equity fund and money market fund even though the law establishing the deferred compensation plan allows for other investment options such as group annuity programs and mutual funds. It should also be noted that the ability to choose an alternate vendor would provide employees with additional pay-out options at the time of retirement as well as additional investment options while working.

 

 

                             

 

Provides State employees with additional deferred compensation plan choices.