N.J. Admin. Code § 17:4-3.1

Current through Register Vol. 56, No. 21, November 4, 2024

Section 17:4-3.1 - Computation of insurance benefits

(a) Full salary credit will be given for the month or biweekly pay period in which a member dies, if the member was paid salary to date of death and the salary paid was sufficient to permit a full normal month's or biweekly pension deduction.

(b) Death benefits and noncontributory insurance benefits shall be based on the base salary upon which contributions to the Annuity Savings Fund were actually made during the 12 months or 26 biweekly pay periods immediately preceding the member's death. Months or pay periods in which no salary was paid shall not be used in the calculation.

(c) If a member dies during the first year following the date of enrollment, the insurance benefit shall be 3 1/2 times the member's base salary on which the member contributed or would have contributed immediately prior to death.

(d) Where a post-audit of insurance claim payments indicates the pension contributions reported by an employer were incorrect and resulted in the underpayment of an insurance claim to a member's designated beneficiary or estate, an additional check would be sent to the beneficiary for the value of the underpayment.

(e) If a deceased member does not have an eligible surviving spouse, child or parent, then refunds of a deceased member's pension contributions will be made to the member's designated beneficiary.

(f) In computing the salary upon which pension contributions were based during a member's last year of service, in the case of a 12-month State employee reported on a biweekly basis, a total of 26 biweekly pays will be used, including any retroactive salary payments made within the prescribed period. The total salary will be adjusted by multiplying the total by the factors supplied by the actuary; such adjustment will compensate for State biweekly payroll schedules.

N.J. Admin. Code § 17:4-3.1

Amended by R.2001 d.66, effective 2/20/2001.
See: 32 New Jersey Register 4060(a), 33 New Jersey Register 684(a).
Rewrote the section.