SENATE, No. 1119

 

STATE OF NEW JERSEY

 

INTRODUCED MAY 9, 1996

 

 

By Senator INVERSO

 

 

An Act conforming the administration of certain State-administered retirement systems and pension funds to federal Internal Revenue Code requirements and supplementing Title 43 of the Revised Statutes.

 

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

 

    1. In accordance with the provisions of section 401 (a) (2) of the federal Internal Revenue Code, and subject to such exceptions as may be permitted for governmental plans under section 401 (a) (2) of the federal Internal Revenue Code, at no time prior to the satisfaction of all liabilities with respect to members and their beneficiaries under the Teachers' Pension and Annuity Fund, established pursuant to N.J.S.18A:66-1 et seq., the Judicial Retirement System, established pursuant to P.L.1973, c.140 (C.43:6A-1 et seq.), the Prison Officers' Pension Fund, established pursuant to P.L.1941, c.220 (C.43:7-7 et seq.), the Public Employees' Retirement System, established pursuant to P.L.1954, c.84 (C.43:15A-1 et seq.), the Consolidated Police and Firemen's Pension Fund, established pursuant to R.S.43:16-1 et seq., the Police and Firemen's Retirement System, established pursuant to P.L.1944, c.255 (C.43:16A-1 et seq.), and the State Police Retirement System, established pursuant to P.L.1965, c.89 (C.53:5A-1 et seq.), shall any part of the corpus or income of the respective retirement systems or pension funds, within the taxable year or thereafter, be used for or diverted to purposes other than for the exclusive benefit of the members or their beneficiaries.

 

    2. Notwithstanding any law, rule or regulation to the contrary, the contributions and benefits payable under the Teachers' Pension and Annuity Fund, the Judicial Retirement System, the Prison Officers' Pension Fund, the Public Employees' Retirement System, the Consolidated Police and Firemen's Pension Fund, the Police and Firemen's Retirement System, and the State Police Retirement System shall be subject to the limitations provided under section 415 of the federal Internal Revenue Code with any exceptions as may be permitted for governmental plans.

    3. This act shall take effect immediately.

 

 

STATEMENT

 

    The purpose of this bill is to conform the administration of the Teachers' Pension and Annuity Fund, the Judicial Retirement System, the Prison Officers' Pension Fund, the Public Employees' Retirement System, the Consolidated Police and Firemen's Pension Fund, the Police and Firemen's Retirement System, and the State Police Retirement System to federal Internal Revenue Code requirements in order to maintain the qualified status of these retirement systems and pension funds. The bill provides that in accordance with the provisions of section 401 (a) (2) of the federal Internal Revenue Code, at no time prior to the satisfaction of all liabilities with respect to members and their beneficiaries shall any part of the corpus or income of the respective retirement systems or pension funds, within the taxable year or thereafter, be used for or diverted to purposes other than for the exclusive benefit of the members or their beneficiaries. The bill also provides that the contributions and benefits payable under the above-mentioned retirement systems shall be subject to the limitations provided under section 415 of the federal Internal Revenue Code with any exceptions as may be permitted for governmental plans.

 

 

                            

 

Conforms administration of certain State-administered retirement systems and pension funds to Internal Revenue Code requirements.