N.J. Admin. Code § 17:1-5.4

Current through Register Vol. 56, No. 18, September 16, 2024

Section 17:1-5.4 - Group life insurance and pension benefits

(a) A deceased member's group life insurance and pension benefits shall be payable directly to a named beneficiary who is at least 18 years old.

(b) If a member designates a beneficiary who is not yet 18 years old to receive the group life insurance and pension benefits, and no trustee or guardian is appointed, the Division will pay the benefit as soon as possible after the beneficiary's 18th birthday. The beneficiary must notify the Division at the time of his or her 18th birthday for the benefit to be paid.

(c) Special needs trusts are permissible beneficiary designations but are restricted to those special needs trusts created pursuant to 42 U.S.C. § 1396p(d)(4)(A). Before filing, a member must ensure that the special needs trust has been prepared in accordance with 42 U.S.C. § 1396p(d)(4)(A). The Division is not responsible for discerning whether the special needs trust document complies with statutory requirements at the time of filing with the Division.

(d) No interest accrues on the member's contributions between the date of the member's death and the date of distribution.

N.J. Admin. Code § 17:1-5.4

Amended by 48 N.J.R. 1306(a), effective 6/20/2016