Judicial Retirement System (JRS) Member Guidebook

Judicial Retirement System Pensions & Benefits (JRS) Member Guidebook SP-0611-0721 Judicial Retirement System

TABLE OF CONTENTS Reduction or Suspension of Your Benefits. . . . . 24 JRS General Information ...... 3 Employment After Retirement ...... 25 Foreword ...... 4 Active and Retired Death Benefits...... 26 The Retirement System...... 4 Overview ...... 27 Contacting the New Jersey Division Continuation of State Health of Pensions & Benefits (NJDPB)...... 4 Benefits Program (SHBP) Coverage...... 28 Plan Information...... 4 Group Life Insurance...... 28 Enrollments...... 6 Contributory Group Life Insurance...... 28 Overview ...... 7 Noncontributory Group Life Insurance...... 28 Benefits from Other Systems...... 7 Choosing a Beneficiary ...... 29 Service Credit ...... 8 Payment of Noncontributory Group Life Insurance...... 29 Purchasing Service Credit...... 9 Noncontributory Group Life Insurance Overview ...... 10 and Leave of Absence...... 30 Types of Service Eligible for Purchase...... 10 Taxation of Group Life Cost and Procedures for Insurance Premiums ...... 30 Purchasing Service Credit...... 10 Waiving Noncontributory Group Applying to Purchase Service Credit...... 10 Life Insurance over $50,000...... 30 Loans...... 12 Conversion of Group Life Insurance...... 30 Overview ...... 13 Withdrawal...... 32 Applying for a Loan ...... 13 Overview ...... 33 Internal Revenue Service (IRS) Withdrawing Contributions...... 33 Requirements...... 14 Appeals...... 34 Supplementing your Pension...... 15 Overview ...... 35 Overview ...... 16 Retirements...... 17 Overview ...... 18 Types of Retirement...... 18 Optional Settlements at Retirement...... 19 The Retirement Process ...... 21

JRS Member Guidebook July 2021 Page 2 JRS General Information Judicial Retirement System

FOREWORD THE RETIREMENT SYSTEM cept State holidays) . A plan representative will an- The New Jersey Judicial Retirement System (JRS) The JRS was established on June 1, 1973, after the swer your questions and provide enrollment and Member Guidebook provides a summary description of repeal of the laws that had provided benefits to certain distribution forms . the benefits of the plan and outlines the rules and reg- members of the judiciary and their beneficiaries since • To speak with a plan representative about the Sup- ulations governing the plan . The JRS Member Guide- 1948 . plemental Annuity Collective Trust (SACT), call book should provide you with all the information you For administrative purposes, the State House Commis- (609) 292-7524 weekdays (except State holidays) . need about your JRS benefits . However, if there is a sion acts as the Board of Trustees . The most current hours of operation can be found conflict with statutes governing the plan or regulations on our website . SACT representatives will answer implementing the statutes, the statutes and regulations This guidebook is available for viewing on the NJDPB your questions and provide enrollment and distri- will take precedence . Complete terms governing any website, as well as JRS-related forms, fact sheets, and bution forms . employee benefit program are set forth in the New Jer- news . sey Statutes Annotated . Regulations, new or amend- CONTACTING THE NEW JERSEY Internet, Email, and Mailing Address ed, are published in the New Jersey Register by the DIVISION OF PENSIONS & BENEFITS (NJDPB) General information and most publications of the State Office of Administrative Law supplementing the NJDPB can be found on the NJDPB website . You can Telephone Numbers New Jersey Administrative Code . This guidebook, email the NJDPB at: [email protected] containing current updates, is available for viewing on • To speak with a Judges Benefits Aide in the Our postal address is: our website at: www.nj.gov/treasury/pensions While Human Resources Office of the AOC, call at the New Jersey Division of Pensions & Benefits (609) 292-4687 . New Jersey Division of Pensions & Benefits (NJDPB) website, be sure to check for JRS-related • To speak with a pensions representative about P.O. Box 295 forms, fact sheets, and news affecting the JRS . your JRS benefits, call (609) 292-0909 weekdays Trenton, NJ 08625-0295 The purpose of this guidebook is to provide you with between 8:00 a m. . and 4:00 p m. . (except State On all correspondence, be sure to include your mem- information about the retirement system to assist you in holidays) . bership number or last four digits of your Social Secu- making decisions concerning you and your family’s fu- • To speak with a counselor about your State Health rity number . ture . If you have questions concerning your retirement Benefits Program coverage, call (609) 292-7524 PLAN INFORMATION system benefits, please see the “Contacting the New weekdays (except State holidays) . The most cur- Jersey Division of Pensions & Benefits (NJDPB)” sec- rent hours of operation can be found on our web- Name of Plan tion for information on contacting the Human Resourc- site . es Office of the Administrative Office of the Courts The Judicial Retirement System of New Jersey (JRS) . (AOC) or a counselor at the NJDPB . If you are hearing impaired and require the services of a relay operator, please dial 711 and pro- Administration Since this is your guidebook, we would appreciate any vide the operator with the following phone number: The JRS is a defined benefit plan administered by the comments or suggestions for improvement that you (609) 292-6683 . You will then be connected to a NJDPB . might have . Please send them to the address listed Client Services phone representative for assis- below: tance . Provisions of Law New Jersey Division of Pensions & Benefits • To speak with a plan representative about the The JRS was established by New Jersey Statute and ATTN: Office of Communications NJSEDCP, also known as Deferred Comp, call can be found in the New Jersey Statutes Annotated, P.O. Box 295 Prudential at 1-866-NJSEDCP (1-866-657-3327) Title 43, Chapter 6A . Changes in the law can only be Trenton, NJ 08625-0295 weekdays between 8:00 a m. . and 9:00 p m. . (ex- made by an act of the State Legislature . Rules govern-

JRS Member Guidebook July 2021 Page 4 Judicial Retirement System

ing the operation and administration of the system may be found in Title 17, Chapter 10 of the New Jersey Ad- ministrative Code .

Funding The funds used to pay benefits come from three sources: State contributions, employee contributions, and investment income from those contributions .

Plan Year For record-keeping purposes, the plan year is July 1 through June 30 .

Service of Legal Process Legal process must be served on the Attorney General of New Jersey pursuant to New Jersey Court Rules, R . 4:4-4(7) .

Employment Rights Not Implied Membership in the JRS does not give you the right to be retained in service for the judiciary, nor does it give you a right of claim to any benefit you have not accrued under terms of the system .

Benefits and provisions of the JRS are subject to changes by the legislature, courts, and other officials . While this guidebook outlines the benefit and contribution schedules of the JRS, it is not a final statement . Complete terms governing any judicial benefit program are set forth in the New Jersey Statutes Annotated . Regulations, new or amended, are published in the New Jer- sey Register by the State Office of Administra- tive Law supplementing the New Jersey Admin- istrative Code .

Page 5 July 2021 JRS Member Guidebook Enrollments Judicial Retirement System

OVERVIEW N .J . Motor Vehicle Commission; Member Contribution Rate • A current digital Pennsylvania or New York driver’s N J. S. A. . 18A:66-29, the Pension and Health Benefit Eligibility Criteria license; or Reform Law, increased the JRS member contribution If you are a member of the State Judiciary, you are re- rate over seven years to bring the total contribution rate • Naturalization or immigration papers . quired to join the JRS as a condition of employment . to 12 percent of base salary as of July 1, 2017 . The JRS covers the Chief Justice and Associate Jus- Unacceptable documentation includes military records Increases in the member contribution rate also increase tices of the State Supreme Court, as well as all judges indicating your age, expired documentation, out-of- the minimum repayment amount for pension loans or of the Appellate Court, Superior Court, and Tax Court state driver’s licenses except P A. . and N Y. ,. hospital for the cost of a purchase of service credit, if certified of the State of New Jersey . birth certificates, marriage certificates, census records, after the effective date of the rate change . baptismal records, or affidavits from older family mem- Enrollment/Certification of Payroll Deductions bers . Federal Pensionable Maximum — Since the JRS is Both you and the AOC must complete the JRS Enroll- a qualified pension plan under the provisions of the ment Application to enroll you in the retirement system . Public Information and Restrictions Internal Revenue Code (IRC), Section 401(a)(17), the The AOC will send the completed application to the Most of the information maintained by the retirement current federal ceiling on pensionable compensation NJDPB for processing . system, including member salary and/or pension ben- applies to the base salaries of JRS members . When enrollment processing is complete, you and the efit information, is considered a public record under Tax Deferral — Since January 1987, all mandatory AOC will receive a Certification of Payroll Deductions N J. S. A. . 47:1A-1 et seq ,. the Open Public Records Act pension contributions to the JRS have been federally showing the date deductions will begin, your rate of (OPRA) . However, certain personal information such tax deferred . Under the 414(h) provisions of the IRC contribution, and any back deductions that may be due . as a member’s address, telephone number, Social Se- this reduces your gross wages subject to federal in- You may wish to keep the Certification of Payroll De- curity number, pension membership number, beneficia- come tax . Purchases of service credit are voluntary ductions on file with your other important papers so that ry information while the member is living, and medical and are not tax deferred unless funded by a rollover you have a record of your enrollment in the retirement information is restricted from public access . from another tax-deferred plan . See the “Rollover for system . Further restrictions to personal health information ex- Purchase Payment” section . ist under the privacy provisions of the federal Health Proof of Age Insurance Portability and Accountability Act (HIPAA) . BENEFITS FROM OTHER SYSTEMS All members of the JRS must provide documentation Members may be required to provide specific written Membership in the JRS requires that you cease mem- that proves their age . If possible, you should provide authorization for the release of medical information to bership in any other New Jersey State-administered your proof of age to the NJDPB when you enroll; how- a third party who is not a doctor, hospital, or business retirement system prior to JRS enrollment; you cannot ever, it does not delay the processing of your enroll- partner of the NJDPB or the health benefit programs . join any other retirement system while a member of ment application if you do not . Proof of age will be re- Information about HIPAA is available on the NJDPB the JRS . If you are a member of another New Jersey quired to be eligible to retire . website . State-administered retirement system at the time you become a judge, you can: Acceptable evidence of your age includes a photocopy The NJDPB has implemented additional protection for of: members in accordance with the New Jersey Identity • Withdraw all your contributions to the prior retire- Theft Prevention Act, N J. S. A. . 56:11-28 et seq . Secu- ment system; • Birth certificate — with visible seal; rity Freeze procedures are available to restrict access • Transfer your membership by depositing all con- • Passport or U S. . Passport Card; to the accounts of members who are, or have a serious tributions from the prior retirement system into the • A current digital New Jersey driver’s license or risk of becoming, victims of identity theft . Additional JRS, provided the prior account has not expired, identification card (for non-drivers) issued by the information is available in the Identity Theft and Your by filing an Application for Interfund Transfer; or Benefits Fact Sheet .

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• If eligible to either receive or defer retirement ben- SERVICE CREDIT When an employee returns from uniformed military service to JRS-covered employment, the employer efits in another retirement system, you can enroll Since retirement benefits are based in part on accu- should notify the NJDPB no later than 30 days after in the JRS and receive a portion of the benefits, mulated service credit, it is important that you receive the employee’s return by submitting a Request for when due and payable, based upon your own con- the correct amount of credit for the amount of time you USERRA-Eligible Service form . Once notified, the NJ- tributions to the other retirement system . However, work . Your service and contributions are reported bi- DPB will provide the employee with a quotation for the if you later elect to receive benefits from the JRS, weekly . you forfeit your right to all other retirement benefits cost of the service . • You receive judicial service credit equal to one bi- from the prior system . (You are entitled to a refund There is a time-sensitive element to the USERRA pur- weekly pay period for each pay period a full pen- of your contributions you made to the prior system, chase which differs from other purchase provisions sion contribution is made . reduced by the value of any benefit you have al- available to JRS members . For additional information, ready received .) • You receive non-judicial service credit for any ser- see the USERRA — Military Service After Enrollment If at the time you become a judge you are already re- vice (other than prior judicial service) which you Fact Sheet . ceiving a retirement allowance or pension from another are able to transfer from another State-adminis- retirement system, you must either: tered, defined benefit retirement system into the JRS at the time of enrollment . • Enroll in the JRS and waive retirement benefits from the other retirement system (you are entitled You may also be eligible to purchase prior service . See to a refund of your contributions you made to the the “Purchasing Service Credit” section . prior system, reduced by the value of any benefit Credit for Military Service you have already received); or After Enrollment • Waive enrollment in the JRS and continue to re- The federal Uniformed Services Employment and Re- ceive the full benefit from the other retirement sys- employment Rights Act of 1994 (USERRA) provides tem . If you waive enrollment in the JRS, you cannot that a member who leaves employment to serve on ac- be enrolled in the JRS at a later date . You must file tive duty is entitled to certain pension rights upon return a written notification indicating your irrevocable in- to employment with the same employer . If the member tention not to enroll in the JRS . Such waivers must makes the pension contributions that would have been be filed with the JRS within 90 days from the date normally required upon return and within the specif- of your appointment . ic time frames specified under USERRA, the military Information regarding these options will be explained service will count for vesting, retirement eligibility, the in writing at the time of your enrollment in the JRS to calculation of the retirement benefit, and, if applicable, assist you in making the decision that best meets your health benefits eligibility, as though the employee had needs . not left .

JRS Member Guidebook July 2021 Page 8 Purchasing Service Credit Judicial Retirement System

OVERVIEW Note: There is a time-sensitive element to this pur- Note: The cost of a purchase of Military Service After Enrollment under USERRA is based on the required Since your retirement allowance is based in part on the chase . See the USERRA — Military Service After En- pension contributions for the period of military service . amount of service credit posted to your account at the rollment Fact Sheet . time of retirement, it may help you to purchase addition- You will receive judicial service credit for the purchase JRS Purchase Rate Chart al service credit if you are eligible to do so . of eligible judicial service . You will receive non-judicial service credit for the purchase of eligible non-judicial Purchase Purchase Only active members of the retirement systems are Age Factor Age Factor permitted to purchase service credit . An active member service . 40 0 .0298 56 0 .0939 is one who has not retired or withdrawn, and who has COST AND PROCEDURES FOR 41 0 .0324 57 0 .0969 made a contribution to the retirement system within two PURCHASING SERVICE CREDIT consecutive years of the purchase request . In no case 42 0 .0352 58 0 .0994 can you receive more than one year of service credit The cost of a purchase is based on three factors: 43 0 .0383 59 0 .1017 for any calendar or fiscal year . “Service” means public • A purchase factor based on your nearest age at 44 0 .0416 60 0 .1035 service rendered for which pension credit is allowed on the time the NJDPB receives your purchase appli- 45 0 .0453 61 0 .1043 the basis of contributions made by the State . cation (see the “JRS Purchase Rate Chart”); 46 0 .0492 62 0 .1051 TYPES OF SERVICE ELIGIBLE FOR PURCHASE • The higher of either your current annual salary or 47 0 .0535 63 0 .1059 highest fiscal year salary (July - June) posted to The following types of service may be eligible for pur- 48 0 .0582 64 0 .1067 your membership account; and chase: 49 0 .0633 65 0 .1075 • The years and months of service being purchased . • Former Membership in a New Jersey State-ad- 50 0 .0688 66 0 .1083 ministered, defined benefit retirement system may The cost of the purchase will rise with an increase in 51 0 0738. 67 0 .1091 be purchased at any time during your membership your age and/or salary . 52 0 .0786 68 0 1100. in the JRS . Partial Purchases 53 0 .0829 69 0 1108. • Previous Service rendered in an office, position, 54 0 .0870 70 0 1116. You may purchase all or part of any eligible service . If or employment of the State of New Jersey, or of a you make a partial purchase, you may purchase any 55 0 .0906 county, municipality, board of education, or public remaining eligible service at a later date . The cost of agency of the State of New Jersey . any later purchase will be based upon your age and the APPLYING TO PURCHASE SERVICE CREDIT • Military Service After Enrollment rendered after annual salary or highest fiscal year salary at the time of You may obtain a quotation of the cost of purchasing October 13, 1994, may be purchased under the your subsequent request to purchase . additional service credit by writing to the New Jersey requirements of USERRA at full cost . However, Division of Pensions & Benefits, Judicial Retirement Estimating the Cost of a Purchase under N J. A. C. . 17:1-3 10,. USERRA-eligible ser- System, P O. . Box 295, Trenton, NJ 08625-0295 . In vice will only be used toward vesting, retirement To estimate the cost of a purchase, multiply the high- your correspondence be sure to include the dates of eligibility, the calculation of the retirement benefit, er of your current annual salary or highest fiscal year the service you are requesting to purchase, the former and, if applicable, health benefits eligibility, if the salary times the purchase factor corresponding to your employer’s name and address, the name of the retire- employee pays the required pension contributions nearest age; see the “JRS Purchase Rate Chart ”. The ment system, and the job title you held . that would have been required if the employee had result is the cost of one year of service . Multiply this Upon receipt of your request and all required support- not left . cost by the appropriate number of years being pur- ing documentation, a quotation of cost will be calculat- chased . ed if all purchase eligibility criteria are met . Processing

JRS Member Guidebook July 2021 Page 10 Judicial Retirement System

times vary and a request cannot be completed until the lump-sum payments, partial payments, or installment Note: The NJDPB cannot accept rollovers from a Roth NJDPB receives all required verification of eligibility . payments . The member will receive prorated service IRA or a Coverdell Education Savings Account (former- ly known as an Education IRA) . After the NJDPB verifies employment, you will receive credit for the service purchased to the date installment a Purchase Cost Quotation Letter indicating the cost of payments cease . Additional information on requesting a transfer or roll- any service approved for purchase . You must respond If you have an outstanding arrears obligation for the over of tax-deferred funds for the purchase of service to the quotation letter within the specified time period . purchase of additional service credit, interest may be credit is included in the Purchase Cost Quotation Letter you receive upon the NJDPB’s determination of your When you agree to purchase a certain amount of ser- assessed if there is a lapse of two years or more in eligibility to purchase service . vice credit, the NJDPB assumes that you will complete payments toward the purchase . the purchase and credits your account with the entire Rollover for Purchase Payment amount of service, even if you are paying the cost through payroll deductions . Any estimates of retirement Members may pay for all or part of a purchase by trans- allowance you receive are based on the full amount of ferring or rolling over tax-deferred funds from an eligible credit you agreed to purchase . or qualified retirement savings plan . The types of plans from which a transfer or rollover can be made are: You may pay the cost of purchasing service credit: • 401(a) qualified plan (including 401(k) plan) and • In one lump-sum payment; 403(a) qualified annuity; • By having extra payroll deductions withheld from • 403(b) - Tax-Sheltered Annuity Plan; your pay . The minimum deduction is equal to one- half of your normal rate of contribution to the retire- • 457(b) - State and Local Government Deferred ment system over a maximum period of 10 years, Compensation Plan; or and includes interest at the assumed rate of return • IRA - With tax-deferred funds: of the retirement system; – Traditional IRA; • By paying a single down payment and having the – SIMPLE IRA (must have been open for two or remainder paid through payroll deductions; or more years); • With a direct rollover or trustee-to-trustee transfer – Simplified Employee Pension (SEP) Plan; of tax-deferred funds from a qualified retirement plan (see the “Rollover for Purchase Payment” – Conduit IRA; or section) . – Rollover IRA . If you retire before completing a purchase, you may choose to receive prorated credit for the amount of service you have paid for, or you can pay the balance at the time of retirement to receive full service credit . See the “Unsatisfied Balances” section . A member who authorizes a purchase of service credit through payroll deductions may cancel those deductions at any time . No refunds will be made of any

Page 11 July 2021 JRS Member Guidebook Loans Judicial Retirement System

OVERVIEW When you borrow, you will have the same inter- must be repaid within five years of the date of the est rate for the life of your loan unless you borrow If you are an active contributing member of the JRS, first loan . This means that the repayment amount again in a different calendar year, after the inter- you may be eligible to borrow from your pension ac- may be substantially higher to ensure full repay- est rate has changed . Every time you borrow, the count . ment of the total loan balance within five years of entire outstanding balance is re-certified at the the issuance of the original loan . Furthermore, the Loans are governed by the following conditions: current year’s interest rate . The new loan must be requested loan amount may be reduced, or the • Service Credit — You must have three years of repaid within five years of the original loan date . loan request may be rejected, if the payroll deduc- pension service credit posted to your retirement The interest rate is determined using the Prime tions required to repay the loan within this five-year system account . Pension contributions are posted Rate as of December 1st of the previous year plus period would exceed the 25 percent of salary re- to your account on a quarterly basis . It normally 2 .5 percent . striction in State law (see the “Internal Revenue takes 45 days after the end of a quarter for your Service (IRS) Requirements” section) . • Administrative Fee — An administrative process- contributions to be posted to your account . For ex- ing fee applies to all pension loans . The adminis- ample, if you enrolled in the retirement system on APPLYING FOR A LOAN trative processing fee is set annually and is based February 1, 2015, you would not have three years You may apply for a loan by submitting a JRS Loan on the actual costs associated with administering posted to your account until May of 2018, when we Application to the NJDPB . To obtain an application, see the pension loan program . The current administra- update the quarter in which you will attain three the Human Resources Office at the AOC, or you may tive processing fee is posted on the NJDPB web- years . print an application from the NJDPB website . site . • Number of Loans Per Year — You may borrow Note: If you are applying for a loan within six months of • Loan Repayment — Loans must be repaid within twice in any calendar year . This is determined by returning from a leave of absence, or within six months five years . The minimum deduction toward the re- the date of the check, not the date of the request . of transferring to a new employer or between different payment of a loan is equal to the JRS contribution For example, if you make a request for a loan on retirement systems, your employer must complete the rate (see the “Member Contribution Rate” section) . December 28th but the check is dated January certification at the bottom of the JRS Loan Application The maximum allowable deduction toward the re- 6th, the loan is considered your first for the new to verify your salary and/or certify that you are actively payment of your loan is 25 percent of your base year . employed . salary . Provided that the minimum loan repayment • Loan Amount — The minimum amount you may amount will repay the loan balance within five Canceling a Loan borrow is $50, and loan amounts then increase in years, the minimum repayment amount of a loan If you are not satisfied with a loan amount or the re- increments of $10 . will be similar whether you borrow $500 or $5,000; payment schedule when you receive your loan check, The maximum you may borrow is one-half of your however, the repayment of a larger loan will con- you may cancel the loan by returning the original, un- contributions that are posted to your account, up tinue for a longer period of time than for a smaller cashed and unmarked loan check . When a loan check to a maximum loan balance of $50,000, whichever loan . is returned, the funds are deposited back into your re- is less, when added to the highest balance of any Loan repayments will increase to more than the tirement system account and will be available after the loan in the last 12 months . minimum deduction if the entire loan balance can- next quarterly posting . • Interest Rate — Interest is charged on the de- not be paid within the five year requirement, or if Note: By cashing the loan check, you are agreeing to clining balance of the loan at a commercially rea- you have an outstanding loan and take another the loan amount and the terms and conditions of the sonable rate set annually by the New Jersey State loan . repayment schedule . Treasurer . The current interest rate is posted on If you have an outstanding loan balance and take the NJDPB website . another loan, the new combined loan balance

Page 13 July 2021 JRS Member Guidebook Judicial Retirement System

Early Loan Repayment result in either a substantial increase in your repayment on it to be paid within the remaining period left in the amount, or may limit the amount that you can borrow if original five-year schedule . Any repayments will be re- You may request a repayment figure for your full loan the payroll deductions to repay the loan exceed the 25 turned to your account as after-tax contributions . balance any time prior to the end of your regular re- percent of base salary restriction on loan repayments . payment schedule . Only a lump-sum payoff of your full You may not take another loan until the deemed distri- loan balance is permitted — partial payments are not The IRS regulations also require members to make bution is paid in full . A deemed distribution cannot be allowed . timely payments toward outstanding loan balances . canceled by resuming your loan payments or repaying While it is your employer’s responsibility to withhold the loan in full prior to the end of the tax year in which You may request a lump-sum payoff by contacting loan deductions from your salary, if you are out of work the default occurs . If you resume your loan repayments the NJDPB at (609) 292-0909 . The Loan Payoff Letter without pay, your employer has no salary from which after the default, the payments received will be posted will indicate the lump-sum payoff amount, the date by to take deductions . Members who leave payroll with to your account as previously taxed contributions that which the payment must be received, and the date on an outstanding loan balance will be notified after three will increase the nontaxable portion of your pension at which scheduled loan repayments from payroll will end . months of nonpayment and offered the option of paying retirement . Loans at Retirement, Death, or off the entire loan balance or making loan repayments Unlike a normal pension distribution, a loan treated as Termination of Employment through personal billing . It is the member’s responsibil- a distribution cannot be rolled over to an IRA or other ity to ensure that the loan balance, plus interest, is paid If you retire before repaying the outstanding balance qualified retirement plan . in full in accordance with IRS regulations . of your loan, your loan payments will be carried into retirement . The monthly loan payment will be calculated Failure to repay the loan as scheduled, either through to have the loan plus interest satisfied by your five-year lump-sum payment, personal billing, or return to pay- end date . You may also repay your outstanding loan roll, will result in the unpaid loan balance being de- balance in one lump sum prior to retirement . clared in default . If a loan is in default, the loan balance is declared a deemed distribution and will be reported If you die before repaying your loan, either before or af- to the IRS as taxable income . For the tax year in which ter retirement, the outstanding balance will be deduct- the default occurs, the NJDPB will send you a Form ed from the proceeds of any benefits to be paid to your 1099-R for tax filing purposes . You will be required to beneficiaries . include the portion of the loan representing before-tax If you terminate employment and withdraw your contri- contributions as income on your federal return . In ad- butions before repaying your loan, all your contributions dition, if you are under age 59 1/2, you will be required less the loan balance will be returned to you . See the to pay an additional 10 percent tax for taking an early “Internal Revenue Service Requirements” section . pension distribution .

INTERNAL REVENUE SERVICE (IRS) If you default on your loan, it will be your responsibil- REQUIREMENTS ity to make an estimated tax payment to the IRS to cover your tax liability on the deemed distribution; no IRC Section 72(p) requires that loan balances cannot withholding will be deducted from your account by the exceed $50,000 and must be repaid within five years . NJDPB . If you take any subsequent loans and your original loan balance is not completely paid off, the repayment Note: Paying taxes on a defaulted loan balance does period will remain five years from the date of the first not negate the balance; you are still responsible for loan . The repayment rules on subsequent loans may paying the loan balance and any interest that accrues

JRS Member Guidebook July 2021 Page 14 Supplementing Your Pension Judicial Retirement System

OVERVIEW Supplemental Annuity Collective Trust (SACT) In addition to your regular pension contributions, there The SACT is a voluntary investment program that pro- are other opportunities to supplement your retirement vides retirement income separate from, and in addition income and possibly set aside money on a tax-deferred to, your basic pension plan . Your contributions are in- basis . vested conservatively in the stock market . The SACT Regular Plan is available to all actively contributing New Jersey State Employees members of a New Jersey State-administered retire- Deferred Compensation Plan (NJSEDCP) ment system . Contributions to this plan are made after As an employee of the State, you may be eligible for the deductions for federal income tax . NJSEDCP (IRC Section 457) . Contributions to the plan SACT brochures and enrollment packets are available are not subject to federal income tax until you take a on the NJDPB website . distribution from the plan, either at retirement or termination before retirement . The main benefits of the plan You can also contact the SACT office by writing to: are to help you save on federal income tax now and New Jersey Division of Pensions & Benefits, Supple- to supplement your retirement income through invest- mental Annuity Collective Trust, P O. . Box 295, Trenton, ments . NJ 08625-0295 . For plan and investment information, visit the Group Variable Universal NJSEDCP website at: www.prudential.com/njsedcp Life Insurance (GVUL) Investment Options or call 1-866-NJSEDCP (1-866-657-3327) . Other in- See the “Contributory Group Life Insurance” section for formation about the plan is available by writing to: information on this after-tax investment program avail- New Jersey Division of Pensions & Benefits, New Jer- able to JRS members . sey State Employees Deferred Compensation Plan, P O. . Box 295, Trenton, NJ 08625-0295 .

JRS Member Guidebook July 2021 Page 16 Retirements Judicial Retirement System

OVERVIEW Service Retirement In this case, your benefit will be calculated as follows: (Judicial and Non-Judicial Service) • Two percent of Final Salary x the number of years Retirement Calculation Definitions If you retire at: of service up to 25 years; plus Judicial Service means your years of service as a • Age 65 or older with 15 or more years in the aggre- judge under the JRS . • One percent of Final Salary x the number of years gate of public service of which five or more con- of service over 25 years; and In the Aggregate of Public Service means your total secutive years were judicial service; or years of both judicial and non-judicial service credit in • Then actuarially reduced for the number of months • Age 60 or older with 20 or more years in the aggre- the JRS . This would include service transferred into the remaining until you are age 60, to cover the cost of gate of public service of which five or more con- JRS from another New Jersey retirement system . paying your benefit over a longer period of time . secutive years were judicial service; Final Salary means the salary on which your JRS pen- Deferred Retirement Your annual benefit is calculated at 50 percent of Final sion contributions are based as of the date of your re- Salary . If you leave the JRS before you are eligible for a Ser- tirement . vice or Early Retirement and you are under the age of If you retire at age 60 to 64 with 15 years or more in 60, you may still have a right to a Deferred Retirement TYPES OF RETIREMENT the aggregate of public service, of which five or more benefit . You are eligible for a Deferred Retirement if you consecutive years were judicial service, your annual There are several types of JRS retirement to meet your leave after completing: individual needs . Keep in mind that retirement from the benefit is calculated as follows: • Five or more consecutive years of judicial service; JRS is mandatory at age 70 . • Two percent of Final Salary x the number of years and JRS retirements are calculated using a combination of of service up to 25 years; plus • 10 or more years in the aggregate of public ser- your age at retirement, your total years of judicial and/ • One percent of Final Salary x the number of years vice . or non-judicial service credit, and your Final Salary . of service over 25 years . Your Deferred Retirement benefit is calculated in the If you retire at age 60 or older and do not meet the Service Retirement (Judicial Service Only) same way as an Early Retirement, taking into account minimum amounts of service credit listed above, your If you retire at: your salary and service when you leave . However, your annual benefit is calculated as follows: Deferred Retirement benefit is not reduced since it is • Age 70 with 10 or more years of judicial service; or • Two percent of Final Salary x the number of years not payable until you reach age 60 . • Age 65 or older with 15 or more years of judicial of judicial service up to 25 years; plus You must file an Application for Retirement Allowance service; or • One percent of x Final Salary x the number of for the Deferred Retirement to take effect . You may • Age 60 or older with 20 or more years of judicial years of service over 25 years . apply for a Deferred Retirement when you terminate service; covered employment or any time prior to attaining age Early Retirement Your annual benefit is calculated at 75 percent of Final 60 . Under no circumstances can a Deferred Retirement Salary . If you wish, you may retire before age 60 and receive a become effective prior to the date the application is re- reduced benefit, provided you have: ceived by the NJDPB . • Five or more consecutive years of judicial service; If a member is removed from employment for cause, and he/she will be ineligible for a Deferred Retirement . • 25 or more years in the aggregate of public ser- At any time before your Deferred Retirement becomes vice . effective, you may change your mind and apply for a

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lump-sum withdrawal of all your pension contributions . and continue the SHBP coverage into retirement . If you die while in service as the county prosecutor, the However, once you cancel your Deferred Retirement If the 18 months of COBRA coverage ends before JRS retired death benefits become effective . and withdraw your contributions, all the rights and privi- the retirement commences, the member will not be leges of membership in the retirement system end . entitled to maintain health coverage through the Disability Retirement SHBP . Participants should contact the Human Re- Please note the following important information about For your added security, the JRS provides an income sources Office at the AOC to see if they qualify for your life insurance, health benefits coverage, loans, if you become disabled before qualifying for a Service, COBRA continuation . and purchase arrears if you are considering a Deferred Early, or Deferred Retirement . Retirement: • Loans — If you terminate employment, failure to You are considered disabled if: repay a pension loan as scheduled may result in • Life Insurance — Your group life insurance cov- • You are physically or otherwise incapacitated for the unpaid loan balance being declared a taxable erage will end 31 days after you terminate employ- full and efficient service to the State in a judicial distribution that will be reported to the IRS . For ment and will not be in effect until your Deferred capacity as determined by three physicians ap- more information about the IRS regulations re- Retirement becomes payable . If you die before pointed by the Governor; and garding the repayment of pension loans, see the your Deferred Retirement becomes effective, the “Internal Revenue Service (IRS) Requirements” • Your disability is certified by the Supreme Court last named beneficiary will receive a return of your section . and approved by the Governor . pension contributions . There is no group life insurance benefit under these circumstances . However, • Purchase Arrears — If you have not made in- If certified, your Disability Retirement benefit will be cal- during the 31-day period after you terminate em- stallment payments for the purchase of additional culated at 75 percent of Final Salary . ployment, you may convert your group life insur- service credit for two years, your purchase will be A Disability Retirement Application identifying a retire- ance coverage to a private policy with Prudential canceled . You will receive pro rata credit for the ment date must be on file with the JRS at least 30 days Financial . For more information see the “Conver- service purchased to the date that the installment prior to the effective date of a Disability Retirement . sion of Group Life Insurance” section . payments ceased . See the “Applying to Purchase Service Credit” section for more information . Approval for Workers’ Compensation or Social Security In addition, if you have the GVUL Insurance, you Disability benefits has no bearing on your application have the option to keep it in effect by remitting pre- Appointment as County Prosecutor — P L. . 2021, c . for JRS Disability Retirement . miums directly to Prudential . If you do so, that pol- 201 (Chapter 201) allows a member of the JRS who is icy, and the value of any supplemental investments at least age 65, has attained at least 25 years of judicial OPTIONAL SETTLEMENTS AT RETIREMENT you made, would be payable upon your death . service, and who has been appointed by the Governor Upon your death as a retired member of the JRS, your with the advice and consent of the Senate to the po- • Health Benefits — JRS members who are elect- surviving spouse, civil union partner, or domestic part- sition of county prosecutor, the right to file a Deferred ing a Deferred Retirement cannot normally trans- ner receives a statutory survivor benefit equal to 25 Retirement application . The effective date of retirement fer their active health care coverage to the re- percent of your Final Salary . Dependent children are for the member shall be deferred to the first day of the tired group of the State Health Benefits Program also eligible to receive a statutory survivor benefit . See month following the termination of the member’s ser- (SHBP); however, members electing Deferred the “Payment of Statutory Death Benefits” section for vice in the position of county prosecutor . In addition, Retirement may be eligible for continuation of more information . the health care benefits under the State Health Bene- SHBP coverage under the Consolidated Omnibus fits Program that the person would be entitled to upon In addition to the statutory survivor benefits for an el- Budget Reconciliation Act of 1985 (COBRA) leg- retirement as a State employee would also be deferred igible spouse/partner and/or dependent children, you islation for up to 18 months if they were covered until after service as a prosecutor ends and the retire- may also elect one of eight voluntary pension options by the SHBP just prior to terminating employment . ment becomes effective . The annual benefit is calcu- that provide a pension benefit to a named beneficiary If the actual retirement commences while the 18 lated at 75 percent of Final Salary and will be payable of your choice . Selecting a pension option will reduce months of COBRA coverage is in effect, the retir- upon the termination of service as a county prosecutor your monthly retirement allowance; the amount of this ee may then transfer from the COBRA coverage

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reduction depends on which option you select . Regard- more your pension is reduced to account for the bene- beneficiary may elect to receive the proceeds in a lump less of the payment option you select, your retirement ficiary’s longer life expectancy . If there is no surviving sum or as an annuity payable over a certain number of benefits are paid during your lifetime . spouse/partner or child to receive the statutory survivor years . benefit and you and your beneficiary die before all your Please be sure that you understand the different pay- Options 2, 3, and 4 pay a monthly allowance to a ben- accumulated pension contributions plus interest have ment options available to you because once your retire- eficiary upon your death for the lifetime of that benefi- been distributed in the form of a monthly allowance, the ment becomes due and payable, you cannot change ciary . Under any of these options, once your retirement remainder will be paid to your estate . your option selection . Due and payable is defined as 30 has become due and payable, you cannot change the days after your retirement date . Note: For Options A, B, C, and D, you may only desig- beneficiary, regardless of the circumstances . If your nate one beneficiary designated beneficiary dies before you, your monthly Note: whether or not you take an optional settlement at allowance will not be increased nor can you name a retirement, the statutory survivor benefit for an eligible • Option A provides that upon your death, your ben- new beneficiary . Your age and the age of the benefi- surviving spouse/partner and/or dependent children eficiary will receive the same monthly allowance ciary determine your monthly allowance — the younger remains in effect . that you were receiving at the time of your death the beneficiary, the more your pension is reduced to for the duration of his/her lifetime The Maximum Option — also called a single-life an- account for the beneficiary’s longer life expectancy . If nuity, is the highest amount payable and provides a • Option B provides that upon your death, your ben- there is no surviving spouse/partner or child to receive retirement benefit to you for the remainder of your life . eficiary will receive 75 percent of the monthly al- the statutory survivor benefit and you and your bene- If you are not concerned with providing either a lump- lowance that you were receiving at the time of your ficiary die before all your accumulated pension contri- sum benefit or providing a monthly income to another death, for the duration of his/her lifetime . butions plus interest have been distributed in the form person after your death, the Maximum Option may be • Option C provides that upon your death, your ben- of a monthly allowance, the remainder will be paid to the most appropriate payment choice for you . Upon eficiary will receive 50 percent of the monthly al- your estate . your death, benefits end and your survivors do not re- lowance that you were receiving at the time of your Note: For Options 2 and 3, you may only designate one ceive a pension allowance other than those provided death, for the duration of his/her lifetime . beneficiary . For Option 4, you may designate more than under the statutory survivor benefits . • Option D provides that upon your death, your ben- one beneficiary . If there is no surviving spouse/partner or child to receive eficiary will receive 25 percent of the monthly al- • Option 2 provides that upon your death, your ben- the statutory survivor benefit and you die before receiv- lowance that you were receiving at the time of your eficiary will receive the same monthly allowance ing, through your retirement allowance, the amount that death, for the duration of his/her lifetime . that you were receiving at the time of your death, you contributed to the retirement system while working for the duration of his/her lifetime . plus interest, the balance of your contributions will be Option 1 sets aside an initial reserve based on your life paid to your named beneficiary or your estate . expectancy . This reserve is then reduced each month • Option 3 provides that upon your death, your ben- by the amount of your initial monthly retirement allow- eficiary will receive 50 percent of the monthly al- Options A, B, C, and D pay a monthly allowance to a ance . Upon your death, the balance of the reserve, if lowance that you were receiving at the time of your beneficiary upon your death for the lifetime of that ben- any, is paid to your beneficiary(ies) . If you exhaust your death, for the duration of his/her lifetime . eficiary . Under any of these options, once your retire- initial reserve, you will continue to receive your monthly • Option 4 provides that upon your death, your ben- ment has become due and payable, you cannot change retirement allowance for the rest of your life; however, eficiary(ies) will receive a specified fixed monthly the beneficiary, regardless of the circumstances . If your there will be no benefit payable to your beneficiary(ies) . allowance for the duration of his/her lifetime . Your designated beneficiary dies before you, your monthly You may designate more than one beneficiary for Op- allowance cannot be more than that provided un- allowance increases to the Maximum Option amount . tion 1 . A beneficiary may be a person, a charity, an in- der Option 2 . Your age and the age of the beneficiary determine your stitution, or your estate . You may change a beneficiary monthly allowance — the younger the beneficiary, the under this option at any time . Upon your death, your Note: Members should allow for additional pro-

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cessing time for Option 4 calculations with multiple resulting age difference can be no more than 10 Retirement System, P O. . Box 295, Trenton, NJ 08625- beneficiaries . years younger than you . 0295, or calling (609) 292-0909 . The estimate will provide you with the retirement allowance available and Should a member apply for retirement, other than a For Option B: your lump-sum death benefits . Deferred Retirement, and die prior to the retirement be- • If you are age 70 or older at retirement, your non- coming effective, the beneficiary may choose between spouse beneficiary can be no more than 19 years 4-6 Months Before Retirement the active death benefit or the retired optional settle- younger than you . ment that the member selected . The member must Retirement Applications — It is your responsibility have been eligible for retirement at the time of death for • If you are under age 70 at retirement, determine: to file an Application for Retirement Allowance with the the beneficiary to be eligible to choose between active 1 ). the number of years difference between your NJDPB . You can submit your application no more than and retired death benefits . age at retirement and age 70; and one year before your retirement date — and as late as the last business day prior to your retirement date — Age Limits on Nonspouse Beneficiaries 2 ). the number of years difference between your but four to six months advance filing is recommended . For all options, you can name your spouse as your ben- age at retirement and the age of your nonspouse beneficiary . • You can obtain an Application for Retirement Al- eficiary regardless of your spouse’s age . For Option lowance form and instructions from the Human C, D, 1, or 3, you can name someone other than your Subtract the age 70 difference from the difference Resources Office at the AOC or by printing the ap- spouse as beneficiary regardless of age . in age between yourself and your beneficiary . The plication from the NJDPB’s website . Note: Because the IRS is a federal agency, a civil union resulting age difference can be no more than 19 years younger than you . • You can obtain an Application for Disability Retire- partner or domestic partner as defined under New Jer- ment by contacting the JRS Administrator at (609) sey State law does not qualify as a spouse under these If you name a nonspouse beneficiary underOption 4, 292-0909 or from the AOC . circumstances and would be subject to the age limita- and the dollar amount of your beneficiary’s pension is tions described . more than half of your allowance, restrictions on your All retirements are effective on the first of a month, ex- beneficiary’s age apply . cept Mandatory Retirement which is effective on the For Options 2, A, or B, if you are naming a beneficiary judge’s 70th birthday, and Disability Retirement which who is not your spouse, IRS regulations restrict the age THE RETIREMENT PROCESS is determined by the AOC . Under no circumstances of your beneficiary: can a retirement become effective prior to the date the The time frames in this section serve as a guide to For Options 2 and A: application is received by the NJDPB . help you understand the retirement process . Actual • If you are age 70 or older at retirement, your non- processing times, however, may vary and cannot begin Processing times vary and cannot begin until the spouse beneficiary can be no more than 10 years until the NJDPB receives all the necessary information NJDPB has received all the necessary information and younger than you . and forms from both you and the AOC . forms from both you and the AOC . • If you are under age 70 at retirement, determine: • If you have not furnished proof of your age to the 6-8 Months Before Retirement 1 ). the number of years difference between your NJDPB, you must do so when applying for retire- When planning for a successful retirement, it is import- age at retirement and age 70; and ment (see the “Proof of Age” section) . Proof of age ant to give yourself enough time to review your bene- for your beneficiary is required if you choose Option 2 ). the number of years difference between your fits and options . You should inquire about retirement at A, B, C, D, 2, 3, or 4 . If any proof of age documents age at retirement and the age of your non- least six months before your retirement date . are given under a maiden name, please identify spouse beneficiary . Retirement Estimates — You may request an esti- them as such . Attach photocopies of any proof of Subtract the age 70 difference from the difference mate of your JRS retirement benefits by writing to the age documents to your retirement application, as in age between yourself and your beneficiary . The New Jersey Division of Pensions & Benefits, Judicial we cannot guarantee that original documents will

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be returned . Please also be sure to write your pen- Other Retirement Plans — If you participate in other gation will be paid before your retirement . Therefore, sion membership number or the last four digits of retirement savings plans, you must inform them sepa- your account is credited with the full amount of service your Social Security number on all documentation rately of your plans to retire: you have agreed to purchase . If this obligation has not that you submit . Your retirement application will not • Contact the NJSEDCP at 1-866-NJSEDCP . been fully paid when you retire, your Quotation of Re- be processed until the NJDPB receives copies of tirement Benefits will state the balance of your arrears birth date evidence . • Contact the SACT at (609) 292-7524 . (purchase) as of your retirement date . At that time, you must pay the balance of your arrears . • Ask your Human Resources Office at the AOC to Approximately 3 Months Before Retirement submit a Certification of Service and Final Salary to If you do not pay off the balance, the service credit Health Benefits Coverage at Retirement — See the the NJDPB . which has not been paid for will be subtracted from your Summary Program Description and the Health Benefits total years and months of service . This will reduce the • The designation of a beneficiary named on a re- Coverage — Enrolling as a Retiree Fact Sheet for infor- amount of your retirement allowance and may even af- tirement application that is filed with and accepted mation regarding continuing health benefits coverage fect your eligibility to retire . Contact the NJDPB as soon by the NJDPB supersedes any older designation as a retiree . of beneficiary on file . The designation is effective as possible to advise whether or not you wish to pay off upon acceptance by the NJDPB, even if the retire- Approximately 2 Months Before Retirement the arrears balance in full . ment date on the application is in the future or the You will receive a Quotation of Retirement Benefitslet - For Deferred Retirees who have an outstanding arrears member later cancels the retirement application . ter which shows your monthly retirement allowance, obligation for the purchase of additional service credit, You will be sent a letter acknowledging receipt of your along with: interest may be assessed if there was a lapse in payments of two years or more . retirement application by the NJDPB . • Statutory survivor benefits; Shortages — A shortage in your pension account oc- Life Insurance — The amount of your life insurance • Any pension option you selected; coverage through the JRS decreases at retirement or curs when your employer does not deduct the proper terminates if you have less than 10 years of service • A quote of any outstanding loan balance with re- pension contribution from your salary . You will be noti- credit . You may convert the dollar difference between payment options; and fied by the NJDPB of the amount of any shortage . You are responsible for payment of any shortages at retire- the group coverage you had before retirement and the • Any other unsatisfied balance on your account ment . group coverage you will have after retirement to a non- (see the “Unsatisfied Balances” section) . group life insurance policy . No retirement will be paid until purchase arrears and Unsatisfied Balances To protect your conversion privilege it is suggested that shortage obligations have been satisfied . Contact the you apply for conversion of your insurance at the time Loans — If you retire with an outstanding loan balance, NJDPB as soon as possible if your Quotation of Retire- you file your retirement application with the NJDPB . you may: ment Benefits indicates an arrears balance or shortage . However, you cannot file to convert your life insurance • Pay the loan in full prior to receiving any retirement After Your Retirement Date any earlier than six months prior to your retirement benefits; or date . While sending the application and premium to Statement of Retirement Allowance — You will re- • Repay the loan deductions from your retirement al- Prudential will protect your conversion privilege, under ceive a letter confirming your retirement and death ben- lowance until the balance of the loan plus interest no circumstances can the conversion policy become efits . The letter will also supply figures needed in filing is repaid . The monthly loan payment will be calcu- effective until 31 days after you cease employment . your income tax return . Keep this with your important lated to have the loan plus interest satisfied by your papers . See the “Conversion of Group Life Insurance” section five-year end date . and the Conversion of Group Life Insurance Fact Sheet • You have 30 days from your effective retirement Purchase Arrears — When you apply for a purchase for details . date to request any change to your retirement date, of service credit, the NJDPB assumes that the obli- option selection, or option beneficiary . If you wish

JRS Member Guidebook July 2021 Page 22 Judicial Retirement System

to make a change, it may delay your first retirement new address and your retirement number or the IRS at 1-800-TAX-1040 . Questions about New Jersey check . last four digits of your Social Security number . income tax should be directed to the New Jersey Divi- sion of Taxation at 1-800-323-4400 . • You may choose to cancel your retirement within Direct Deposit/Electronic Funds Transfer (EFT) — 30 days of your retirement date . This request must Direct deposit of retirement checks is mandatory ex- Federal Income Tax After Retirement — Every Jan- be in writing to the NJDPB . Canceling your retire- cept for foreign mailing addresses . Direct deposit will uary, the NJDPB issues each retiree an annual Form ment does not guarantee continued employment prevent your retirement checks from being lost, stolen, 1099-R reflecting the taxable retirement allowance with your employer . or delayed in the mail . paid during the preceding tax year . The degree to which your pension is taxed depends on whether or not Note: Members who are approved for Disability You can sign up for direct deposit up to two months the payments you receive have been previously taxed . Retirement cannot cancel their retirement . prior to your retirement date using the Electronic Funds Employee contributions made prior to 1987 were made Transfer application available to pending retirees Due and Payable — Your retirement becomes due and with after-tax dollars . That is, they were federally taxed through your Member Benefits Online System (MBOS) payable 30 days after your retirement date . prior to being made . Contributions for the purchase account . Registered retirees can also start or change of service credit are also made with after-tax dollars Once your retirement becomes due and payable you direct deposit online, at any time using MBOS . cannot change your retirement date, option selection, unless funded by a rollover from another tax-deferred Please allow approximately 60 days for a new direct de- or option beneficiary . plan . posit, or changes to an existing direct deposit, to begin . Note: If you return to a JRS-eligible position before 30 If you began contributing to the pension plan in 1987 Withholding Federal and N.J. State Income Tax — days have elapsed, on either a paid or voluntary ba- or after, and you have not made a purchase of service The NJDPB will provide for the withholding of federal sis, your retirement may be considered invalid and you credit, your entire pension is subject to federal income and New Jersey State income tax from your retirement could be required to reimburse the retirement system tax because your contributions have never been taxed . check . and reenroll in the JRS . See the “Employment After Re- If you contributed to the pension plan before 1987, or if tirement” section for additional requirements of a valid Federal income tax will be withheld at a default with- you have made a purchase of service credit since 1987, retirement . holding status of married with three dependents, re- your pension is immediately taxable based on the “ex- gardless of your actual marital status or number of de- Retirement Checks — Your first retirement check can- pected return rule ”. Part of your retirement allowance pendents . To change your federal withholding status, not be issued earlier than 30 days following your retire- comes from your own pension contributions that were you may do so through your MBOS account once you ment date . If processing of your retirement is delayed, already taxed, and the IRS allows you to recover these receive your first retirement check . Both federal and your first check will be retroactive to the date of your contributions tax free . This recovery is spread out over State withholding applications are available through retirement . your expected lifetime or the combined lifetime of you your MBOS account so that you can make changes at and your beneficiary, according to IRS life expectancy Regular retirement checks are dated on the first of the any time . tables . This means that a small amount of each month- month and are the allowance for the previous month . New Jersey income tax withholding is voluntary, and ly retirement check is tax free . The remainder of the For example, if you retire on July 1st, your first retire- none will be withheld unless you instruct us to do so . monthly benefit is subject to federal income tax . ment check would be due and payable on August 1st Please keep in mind that if you live outside New Jersey and is payment for the month of July . JRS Disability Retirement benefits are subject to feder- your retirement benefits are not subject to New Jersey al tax to the same extent as other pensions . Change of Address — It is important that you inform State income tax, but may be subject to state or local Any federal tax questions should be referred to the IRS the NJDPB of the change: taxes in the jurisdiction in which you reside . There is no at 1-800-TAX-1040 . • By calling (609) 292-7524; or provision for withholding any local or out-of-state taxes . N.J. State Income Tax After Retirement — If you • By writing into the NJDPB . Be sure to include your The NJDPB cannot provide tax advice . Questions live in New Jersey, you will be subject to New Jersey about your federal income tax should be directed to the

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State income tax when you have recovered in pension • You return to a position covered by the JRS (see Matrimonial/partnership dissolution orders regarding checks the amount of pension contributions you made the Employment After Retirement Restrictions Fact your retirement will not take effect until you retire and to the retirement system while working . However, if you Sheet) . begin receiving a monthly retirement allowance . The will not recover your total contributions within three • You become mentally or physically incompetent . court order can designate a specific dollar amount or years of retirement, contact the New Jersey Division Your benefits will not be reinstated until a legal percentage, or a percentage based on the number of of Taxation at 1-800-323-4400, visit their website at representative has been appointed . years of pensionable service you accrued during the http://www.nj.gov/treasury/taxation to determine marriage/partnership to be withheld from your retire- how your pension is taxed . • You have a shortage in your account at the time of ment allowance . The amount withheld is sent directly retirement . If you are receiving a Disability Retirement allowance, from the NJDPB to your former spouse/partner unless your pension is exempt from New Jersey income tax if • You waive your right to a portion of any pension to the order specifies another payee (i e. ,. a probation de- you are under age 65 . When you reach age 65, your which you are entitled . partment) . Any court-ordered withholding paid to your former spouse/partner from your retirement allowance disability pension is treated as a regular pension and is • You are incarcerated (although the State House will terminate upon your death or the death of the for- considered taxable for New Jersey income tax . Commission may permit the continuance of your mer spouse/partner . Cost-of-Living Adjustment — in accordance with benefits to your dependents) . If the former spouse/partner is designated as the bene- N J. S. A. . 43:3B-2, the Pension and Health Benefit Re- • An accounting error is made and the JRS must be ficiary under a JRS pension — either voluntarily by the form Law, Cost-of-Living Adjustments (COLA) for re- repaid . tirees of all retirement systems — including the JRS member or by the court order — the surviving divorced Your pension is normally exempt from any liens against — are suspended . Please note, however, that there is spouse/partner is entitled to the survivor’s benefit for it . Exceptions are tax liens imposed by the IRS, and no reduction to any COLA increases that were already as long as he or she lives . If another person is des- court orders for child support, alimony, or equitable dis- added to retiree benefits prior to June 28, 2011, the ignated as the beneficiary of the pension option, the tribution . effective date of the law . Prior to the suspension of divorced spouse/partner cannot receive any equitable COLA, the Pension Adjustment Program provided an A court order is effective only when you withdraw your distributions from the survivor’s benefit . annual Cost-of-Living Adjustment to retirees and their funds or when you begin to receive monthly retirement Misconduct survivors who received a monthly retirement allowance payments . It is the responsibility of the member to be from the JRS . The COLA was based on the initial re- certain that the NJDPB is provided with copies of all The receipt of retirement benefits is expressly condi- tirement allowance; however, if the retiree selected Op- court orders in order to comply with them . tioned upon the rendering of honorable service by a tion 1, the COLA was calculated using the Maximum public officer or employee . In accordance with N .J .S .A . Option amount . Prior Cost-of-Living Adjustments are Divorce or Dissolution of a 43:1-3 1. ,. your benefits may be reduced or forfeited if shown under the Current Earnings section of the retire- Civil Union/Domestic Partnership you are convicted of a crime in any way related to your ment benefit Statement of Allowances and Deductions The retirement system will implement matrimonial/civ- employment, or if you are suspended or dismissed from (check or EFT stub) . il union/domestic partnership dissolution court orders your employment . See the Honorable Service Fact granting alimony, child support, or equitable distribu- Sheet available on our website for further information . Social Security — Your pension is not reduced by any Social Security benefits you may receive . See the “So- tion . cial Security Earnings Test” section . Matrimonial/partnership dissolution orders regarding your withdrawal from the retirement system will take REDUCTION OR SUSPENSION OF YOUR BENEFITS effect if you voluntarily apply to withdraw your JRS ac- Normally, you will receive retirement benefits as long count . See the “Withdrawal from the Retirement Sys- as you live . Your benefits, however, could be reduced tem” section . or suspended if:

JRS Member Guidebook July 2021 Page 24 Judicial Retirement System

EMPLOYMENT AFTER RETIREMENT Working for private industry or the federal government after retirement will not affect your JRS retirement benefits, with the exception that no member, while receiving a pension or retirement allowance from the JRS, shall engage in the practice of law before any of the courts of this State . For JRS members who resume New Jersey public employment after retirement, please see the Employment After Retirement Restrictions Fact Sheet .

Disability Retirees Restored to Active Service Before returning to active service, JRS disability retirees must first prove to the satisfaction of the State House Commission that they are no longer disabled . When you return to active service, you enroll again in the retirement system . Deductions for pension are re- sumed and you are treated as an active member in all respects . Upon subsequent retirement, you will receive a benefit based on total service .

Social Security Earnings Test There is an earnings test for people receiving Social Security benefits under the normal retirement age (age 65 to 67 depending on year of birth) . Check with the Social Security Administration at 1-800-772-1213 for information on their earnings limit .

Page 25 July 2021 JRS Member Guidebook Active and Retired Death Benefits Judicial Retirement System

OVERVIEW certification from another jurisdiction that recognizes If there is no surviving spouse/partner, or your spouse/ Upon your death as an active or retired JRS member, same-sex domestic partners is required for verification . partner dies, remarries, or enters into a civil union, the the following benefits are payable: See the Civil Unions and Domestic Partnerships Fact following benefit is payable to your eligible children: Sheet for details . • A statutory benefit paid monthly to a surviving • 15 percent of Final Salary to one dependent child; spouse, civil union partner, domestic partner, and/ Note: In cases of death as a result of an accident during or or dependent children (or dependent parents of the performance of regular or assigned duties, and pro- • 20 percent of Final Salary divided evenly between active members); and vided death is not a result of willful negligence, the four two dependent children; or year marriage/partnership requirement is waived . • Group life insurance . • 30 percent of Final Salary divided evenly among Child — Your unmarried child: Retired members may also elect to provide an optional three or more dependent children . pension benefit to a designated beneficiary . • Under the age of 18; or If there is no surviving spouse/partner or dependent • Under the age of 21 and attending school full time; child(ren), a pension is paid to your eligible parent(s) Payment of Statutory Death Benefits or as follows: The terms used in the explanation of the statutory • Any age who, at the time of your death, is disabled • 20 percent of Final Salary to one dependent par- death benefits are explained here: because of mental or physical incapacity and is ent; or Spouse — A person to whom you were married for incapable of substantial gainful employment be- • 30 percent of Final Salary divided evenly between at least four years prior to the date of your death (see cause of the impairment . This incapacity must two dependent parents . note) and who has not remarried or entered into a civil last or be expected to last for a continuous period union . A photocopy of the Marriage Certificate is re- of not less than 12 months as determined by the If there is no surviving spouse/partner, child(ren), or quired for verification . Medical Review Board . parent(s), the member’s contributions are paid to your named beneficiary . In the event a specific beneficiary is Civil Union Partner — A person of the same sex as Parent — Your parent(s) who received at least one-half not named, the funds will be paid to your estate . defined by P L. . 2006, c . 103 (Chapter 103), with whom support from you in the 12 months immediately preced- you were partnered in a civil union for at least four years ing your death . Retired Members prior to the date of your death (see note) and who has Final Salary — For the purpose of the statutory death Upon your death as a retired member, your eligible sur- not entered into a new civil union or married . A photo- benefit, Final Salary means the current salary for the viving spouse/partner receives a pension benefit equal copy of the New Jersey Civil Union Certificate or a valid judicial position in which you served at the time of death to 25 percent of the current salary for the judicial posi- certification from another jurisdiction that recognizes or retirement . tion you held at retirement, plus: same-sex civil unions is required for verification . See the Civil Unions and Domestic Partnerships Fact Sheet Active Members • 10 percent of Final Salary to one dependent child; for details . or Upon your death as an active member, your eligible Domestic Partner — A person of the same sex as de- surviving spouse/partner receives a statutory pension • 15 percent of Final Salary divided evenly among fined by P.L . 2003, c . 246 (Chapter 246), with whom you benefit equal to 25 percent of your Final Salary, plus: two or more dependent children . were partnered in a domestic partnership for at least • 10 percent of Final Salary to one dependent child; If there is no surviving spouse/partner, or your spouse/ four years prior to the date of your death (see note) or partner dies, remarries, or enters into a civil union, the and who has not entered into a civil union or married . following benefit is payable to your eligible children: A photocopy of the New Jersey Certificate of Domestic • 15 percent of Final Salary divided evenly among • 15 percent of Final Salary to one dependent child; Partnership dated prior to February 19, 2007, or a valid two or more dependent children . or

Page 27 July 2021 JRS Member Guidebook Judicial Retirement System

• 20 percent of Final Salary divided evenly between these contributory insurance plans, you can also en- member for enrollment at higher coverage levels or for two dependent children; or roll your spouse and/or dependent children in a $5,000 those enrolling or increasing coverage at a later date . • 30 percent of Final Salary divided evenly among group term insurance policy; spouses who are also Contributory Group Life Insurance Coverage at three or more dependent children . judges enrolled in the JRS may not be covered as both a judge and a spouse . Retirement or Termination of Employment CONTINUATION OF STATE HEALTH BENEFITS Contributory insurance premiums are paid through reg- Group Term Life Insurance coverage ends when you PROGRAM (SHBP) COVERAGE ular payroll deductions . Rates are adjusted each year retire or terminate covered employment . You can, how- For active or retired JRS members, a surviving spouse/ on the first day of the pay period that includes May 1 — ever, continue your Contributory Group Life Insurance partner may continue health coverage through the the anniversary date of the plan . coverage after you leave employment by purchasing a SHBP as long as he or she is included under your converted life insurance policy from Prudential, without Your Contributory Group Life Insurance amount is a medical examination, at your own expense . See the SHBP coverage at the time of death . It will be the sur- based on your judicial salary at enrollment and is ad- vivor’s responsibility to pay for the full cost of the cov- “Conversion of Group Life Insurance” section for more justed, for any pay increases thereafter, on the first day information . erage . The coverage can also include any dependent of the pay period that includes May 1 . children who are covered at the time of death . GVUL Insurance is portable coverage . This means that Added Benefits of the GVUL coverage can be continued after retirement or if you GROUP LIFE INSURANCE In addition to the life insurance benefits provided by this leave covered service as a judge . You will be billed JRS members are eligible for both Contributory and coverage, the GVUL Insurance plan offers additional monthly by Prudential for the full premium plus a $3 Noncontributory Group Life Insurance . Group life insur- benefits including investment options that allow you to monthly service fee . ance is provided through policies issued by the insur- direct funds to any of 16 variable annuity plans, similar More Information about the ance carrier — the Prudential Insurance Company of to mutual funds, and loans against your GVUL Insur- Contributory Group Life Insurance Plans America . ance . See the plan prospectus, which is available from • Contributory Group Life Insurance is insurance for Prudential, for full details . Both the Group Term Life Insurance and the GVUL are administered by Prudential . If you have any questions which you pay . There are two contributory group life insurance plans available to JRS members . Enrollment in Contributory Group Life Insurance about the program or would like to receive a plan prospectus, contact the Prudential Insurance Company of • Noncontributory Group Life Insurance is provided The JRS requires that newly enrolled members must be covered by one of the two Contributory Group Life America, Group Life Services, P O. . Box 948, Horsham, by the State of New Jersey through the retirement PA 19044, or call 1-800-524-0542 . system . There is no cost to you for this coverage . Insurance plans for at least the first 12 months of membership . Either plan is optional for JRS members after NONCONTRIBUTORY GROUP LIFE INSURANCE CONTRIBUTORY GROUP LIFE INSURANCE completing the first 12 months of service, or for members enrolled prior to May 1, 2001 . Note: The following information applies only to the Upon enrollment, all JRS members are eligible for one Noncontributory Group Life Insurance provided by the of two types of Contributory Group Life Insurance: JRS members who are not covered by contributory in- JRS; it does not pertain to the separate Contributory surance may elect to enroll at any time, but must pro- • Group Term Life Insurance; or Group Life Insurance options . vide evidence of good health . • Group Variable Universal Life (GVUL) Insurance . The State pays the cost of your noncontributory insur- Evidence of Good Health ance . Upon enrollment, you receive an individual cer- Both the Group Term Life Insurance and the GVUL In- tificate from the NJDPB that you should keep with your surance offer coverage at levels of 1 1/2, 2, 3, 4, or 5 Newly enrolled JRS members do not need to provide important papers . times your judicial salary . Upon enrollment in one of evidence of good health for coverage at 1 1/2 times salary . Evidence of good health is required from any JRS

JRS Member Guidebook July 2021 Page 28 Judicial Retirement System

Final Salary — For noncontributory insurance, Final er, your named beneficiary (or estate where there designations at any time during retirement by filing a Salary means the salary on which your JRS pension is no named beneficiary) will receive an amount new Designation of Beneficiary form with the NJDPB . equal to 25 percent of Final Salary . contributions are based as of the date of your death or For your protection, beneficiary designations cannot be retirement . CHOOSING A BENEFICIARY accepted or confirmed over the telephone or by email . The NJDPB will only accept a written request from the Noncontributory Group Life Insurance Your JRS Enrollment Application contains a section in member that includes the member’s signature and so- Coverage for Active Members which you name beneficiaries for both your Noncontrib- cial security number or pension ID number . If your death occurs in active service before retirement, utory Group Life Insurance benefits and the return of your named beneficiary, or estate where there is no your pension contributions . You may name any person, Divorce/Dissolution of Partnership organization, your estate, or a trust as beneficiary . named beneficiary, will receive a death benefit equal to In cases of divorce or dissolution, N J. S. A. . 3B:3 14. 1 1/2 x Final Salary . Active members may change Noncontributory Group states that even if your Designation of Beneficiary form Life Insurance designations at any time by filing a indicates a former spouse/partner and/or relatives of Noncontributory Group Life Insurance new and properly completed Judicial Retirement Sys- the former spouse/partner as beneficiaries for life in- Coverage for Retired Members tem Member Designation of Beneficiary form with the surance, or return of pension contributions if an active Noncontributory Group Life Insurance coverage is NJDPB . employee, they cannot receive the benefit . Therefore, available in retirement to JRS retirees with at least 10 Members enrolled in a contributory plan must change the pension and/or life insurance proceeds become years of service credit in the JRS or to those who retire their beneficiary designation with that plan separately . payable to your remaining primary beneficiaries, if any, on a Disability Retirement . Contact the Prudential Insurance Company of Amer- contingent beneficiaries, if any, or your estate . Howev- • Service and Early Retirees — if you die after re- ica, Group Life Services, P O. . Box 948, Horsham, PA er, the following exceptions will be honored and con- tirement, your named beneficiary (or estate where 19044, or call 1-800-524-0542 . sidered valid: there is no named beneficiary) will receive an At retirement, you are asked on your Application for • Court orders are filed that specifically designate amount equal to 25 percent of Final Salary . Retirement Allowance to name a beneficiary(ies) for your former spouse/partner to receive an active • Deferred Retirees — your noncontributory cover- pension benefits and separately name beneficiaries for pension and/or life insurance benefit; or age is not in effect between the time you terminate Noncontributory Group Life Insurance benefits . Some • You file aDesignation of Beneficiary after the final judicial service and your Deferred Retirement date . restrictions apply to who may be named for optional date of judgment that names your former spouse/ If you die between the time you terminate your ju- pension benefits; however, you may name any person, partner and/or relatives of your former spouse/ dicial service and your retirement date, the last organization, your estate, or trust as beneficiary for partner as the active pension and/or life insurance named beneficiary will receive only the return of noncontributory insurance benefits . See the “Optional beneficiary . your pension contributions with interest . There is Settlements at Retirement” section . no other death benefit under these circumstances PAYMENT OF NONCONTRIBUTORY The designation of a beneficiary on an Application for (see the “Conversion of Group Life Insurance” sec- GROUP LIFE INSURANCE Retirement Allowance that is filed with and accepted by tion) . the NJDPB supersedes any older designation of bene- Group life insurance benefits for active members can • Disability Retirees — If you die while on a Dis- ficiary on file . The designation is effective upon accep- be paid in one of several ways (group life insurance for ability Retirement before reaching age 60, your tance by the NJDPB, even if the retirement date on the retirees must be paid in a lump sum) . The options are: named beneficiary (or estate where there is no application is in the future or the member later cancels • Lump Sum — A single payment to your beneficia- named beneficiary) will receive an amount equal the retirement application . ry(ies) . to 1 1/2 x Final Salary . If you die at age 60 or old- Retirees may also change noncontributory insurance

Page 29 July 2021 JRS Member Guidebook Judicial Retirement System

• Annuity Certain — Equal installments over a se- To determine the taxable amount, subtract $50,000 WAIVING NONCONTRIBUTORY lected period of years . from your noncontributory life insurance coverage . The GROUP LIFE INSURANCE OVER $50,000 premium rates are then applied to the remaining life • Life Annuity — Paid monthly to your beneficiary You may waive your Noncontributory Group Life In- insurance amount . The premium costs for the life infor life . surance coverage by completing a waiver form and surance are determined by the IRS based on your age submitting it to the NJDPB . The waiver form must be Death benefits cannot be paid until all the necessary (see the “IRS Premium Rates” chart) and the life insur- received by the NJDPB before December 31 to be ef- information and claim forms have been received from ance in excess of $50,000 . fective January 1 of the next calendar year . Once a your beneficiary by the NJDPB . Example: A JRS member is age 52 and has noncon- waiver form has become effective, it shall be irrevoca- To report a death, contact the JRS at (609) 292-0909 . tributory insurance coverage of 1½ times salary. ble for the entire calendar year . The waiver will remain in effect until you submit a reinstatement form to the Taxation of Group Life The member’s annual base salary is $100,000. The NJDPB . The reinstatement will become effective the Insurance Payments member’s life insurance coverage totals $150,000 (1.5 X $100,000). following January 1 . Information regarding death claim payments are sup- Waiver and reinstatement forms are available from the plied to the New Jersey Division of Taxation, in accor- The fringe benefit amount is determined by subtract- NJDPB or from the Human Resources Office at the dance with their requirements . A beneficiary or bene- ing $50,000 from the total benefit amount ($150,000), AOC . ficiaries may be considered by the Division of Taxation which equals $100,000 ($150,000 - $50,000). to be personally liable for any and all inheritance and/ According to the IRS, the premium cost for an individual If a waiver is in effect at the time of termination of judi- or estate taxes until paid . 52 years of age is $2.76 per $1,000 of coverage. The cial service or retirement, you will not be permitted to premium cost in this example is $276.00 (100 x $2.76) convert any amount of your noncontributory coverage NONCONTRIBUTORY GROUP LIFE INSURANCE and would be added to the member’s taxable income. over $50,000 . See the “Conversion of Group Life Insur- AND LEAVE OF ABSENCE ance” section . IRS Premium Rates* Your Noncontributory Group Life Insurance coverage Before completing the waiver, you should completely (Annual cost per $1,000 of coverage) will continue in full force for an official leave of absence understand the ramifications of waiving your Noncon- Age Premium without pay under the following conditions: tributory Group Life Insurance . For more information, Under age 25 $0 .60 • Up to two years while on an official leave of ab- refer to IRS Publication 525, Taxable and Nontaxable sence for personal illness . 25–29 $0 72. Income. 30–34 $0 .96 • Up to 93 days while on official leave for person- CONVERSION OF GROUP LIFE INSURANCE al reasons . A member who has been suspended 35–39 $1 08. Contributory Group Term Life Insurance coverage ends without pay is covered for group life insurance for 40–44 $1 .20 31 days after you cease judicial service, whether for up to 93 days . 45–49 $1 .80 reasons of retirement or termination of service, or when 50–54 $2 .76 TAXATION OF GROUP LIFE the period of coverage under a leave of absence with- INSURANCE PREMIUMS 55–59 $ 5 .16 out pay ends . 60–64 $7 .92 The IRS classifies all employer-provided life insurance Contributory GVUL Insurance is portable coverage . coverage over $50,000 as a fringe benefit subject to 65–69 $15 .24 This means that coverage can be continued after retire- taxation . The amount of life insurance coverage is not 70 and older $24 .72 ment or if you leave judicial service, at your own cost, taxable, but the premium required to pay for the life in- *These rates are subject to change by the IRS. by contacting Prudential at 1-800-354-6903 . surance coverage is taxable .

JRS Member Guidebook July 2021 Page 30 Judicial Retirement System

Noncontributory Group Life Insurance coverage is reduced at retirement if you retire with at least 10 years of service credit in the JRS *. Otherwise, noncontributory coverage ends 31 days after you cease judicial service or after the period of coverage under a leave of absence without pay ends . You have the option to convert any Contributory Group Term Life Insurance or your Noncontributory Group Life Insurance coverage, without a medical examination and at your own expense, to an individual policy from the Prudential Insurance Company when you retire, terminate judicial service, or lose coverage while on a leave of absence without pay . See the Conversion of Group Life Insurance Fact Sheet for details .

*If you retire on a Disability Retirement the 10-year minimum requirement is waived, and the noncontributory insurance is not reduced until you reach age 60.

Page 31 July 2021 JRS Member Guidebook Withdrawal Judicial Retirement System

OVERVIEW must occur within 60 days of the withdrawal check date . If payment is made directly to you, the taxable portion is When Membership Ends subject to 20 percent federal income tax withholding . In Your active membership in the JRS ends 30 days after addition, if you receive payment before you reach age your retirement date or 30 days after the approval of 59 1/2 and you do not roll it over, you may have to pay your retirement, whichever is later, or if: an extra tax equal to 10 percent of the taxable portion of any payment . If you have any questions concerning • You die; or this federal law, call the IRS at 1-800-TAX-1040 . • You end your employment and withdraw your con- If you are age 60 or have at least five years of judicial tributions from the JRS . service and at least 10 years in the aggregate of public Should you return to covered employment after your service credit when you file for withdrawal, you must employment ends or you have withdrawn your account, waive any rights you have to a retirement or death ben- you will be treated as a new member of the JRS in all efit . This written waiver is part of a letter which states respects . Service credit from a former membership the amount of retirement and death benefits to which may be purchased by members returning to the system you are entitled if you do not withdraw . after withdrawal of a former account . See the “Types of No withdrawal application can be processed until all Service Eligible for Purchase” section . the necessary information has been received from you WITHDRAWING CONTRIBUTIONS and the AOC . If you terminate judicial service before retirement, you may withdraw all your contributions less any outstanding loan or other obligations . You may withdraw only the money you have contributed and partial withdraw- als are not permitted . Upon your withdrawal, all rights and privileges of membership end . Since the employer/employee relationship must be severed, no withdrawal will be paid if there are unre- solved legal matters concerning your termination of employment . To withdraw, you must file a properly completed Appli- cation for Withdrawal. In accordance with federal law, income tax must be withheld on certain pension distributions that produce an annual taxable income of $200 or more, unless the taxable amount is directly rolled over into an Individual Retirement Account (IRA) or a new employer’s retirement plan, if applicable . To qualify, this direct rollover

Page 33 July 2021 JRS Member Guidebook Appeals Judicial Retirement System

OVERVIEW case, the Commission shall reject your hearing request and issue detailed findings of fact and conclusions of If you wish to appeal any administrative decision of the law . These findings and conclusions will become the NJDPB, address your appeal to: Commission’s Final Administrative Determination and Secretary to the State House Commission may be appealed to the Superior Court, Appellate Di- Judicial Retirement System vision . New Jersey Division of Pensions & Benefits P O. . Box 295 Trenton, NJ 08625-0295 Your appeal to the State House Commission must include a copy of the administrative decision, a detailed explanation of your basis for disagreement with the decision, and all supporting documentation that you wish to be considered by the Commission . If your appeal is denied by the Commission, you may request a formal hearing by sending a written statement to the Commission within 45 days from the date of the Commission’s decision . State in detail the reasons for your disagreement with the Commission’s determination and submit any and all supporting documentation if you have not already done so . If no such written statement is received within the 45-day period, the determination shall be considered final . If your request for a formal hearing is approved, the Commission will submit the matter to the Office of Ad- ministrative Law (OAL) . Upon completion of this hearing, the Administrative Law Judge will submit an initial decision which the Commission may adopt, reject, or modify . If the Commission rejects or modifies the initial decision, it shall issue a detailed findings of fact and conclusions of law which will become the Commis- sion’s Final Administrative Determination and may then be appealed to the Superior Court, Appellate Division . When the State House Commission reviews your request for a hearing in the OAL, it determines whether the matter involves contested facts or is solely a question of law . If the appeal involves solely a question of law, an OAL hearing is not likely to be approved . In that

Page 35 July 2021 JRS Member Guidebook