State Codes and Statutes
Statutes > New-jersey > Title-52 > Section-52-18a > 52-18a-113-252:18A-113.2 Tax-deferred annuity, education employees; written agreement to reduce salary.
1. a. The Department of Education, the Commission on Higher Education, and the governing body of any public institution of higher education may enter into a written agreement with any of its employees to reduce the employee's annual salary for the purpose of investing in a tax-deferred annuity for the employee pursuant to section 403(b) of the federal Internal Revenue Code of 1954, as amended. Investments shall be (1) with an insurer or mutual fund company authorized to provide investment contracts under the alternate benefit program; (2) in investment contracts authorized under the program for supplemental retirement benefits which meet the requirements of section 403(b) of the federal Internal Revenue Code, as amended; and (3) on the same terms and conditions provided for participants in the alternate benefit program.
b.An agreement (1) shall specify the amount and the effective date of the reduction; (2) shall be subject to filing with and approval by the State Treasurer or filing with and approval by the governing body of the institution of public higher education, as appropriate; and (3) shall be legally binding and irrevocable with respect to the amounts earned while the agreement is in effect. The total amount of the reduction in an employee's salary pursuant hereto, for any calendar year, shall not, when added to the contributions made in the year on behalf of the employee in accordance with section 7 of P.L.1963, c.123 (C.52:18A-113), exceed the limitations set forth in Pub.L.93-406 (Employment Retirement Income Security Act of 1974) and section 415 (c) of the Internal Revenue Code (26 U.S.C.s.415 (c)).
c.An agreement may be terminated at any time upon written notice by either the employee or the employer. Termination shall take effect at the beginning of the payroll period whose first day is nearest to the 30th day following the day on which notification of termination was (1) received by the employer, in the event termination is initiated by the employee, or (2) sent to the employee, in the event termination is initiated by the employer.
d.Amounts payable pursuant to this section by an employer on behalf of an employee for a payroll period shall be transmitted and credited not later than the fifth business day after the date on which the employee is paid for that pay period.
L.1995,c.92,s.1; amended 1999, c.247, s.4.
