In
order for a new public employer to participate in the public
retirement systems administered by the Division of Pensions
and Benefits, the employer must first be included in the State
of New Jersey's agreement with the Social Security Administration.
The
following are the required steps that new public employers
must take to be included under the State of New Jersey—Social
Security Administration Agreement, and ultimately to become
a participating employer in one of our retirement systems.
-
The
new public entity must submit a resolution from the governing
body or board to the Division, which states that the employer
will be responsible for the remittance of the employer's
share for Social Security coverage. A copy of the statute
or ordinance that created or authorized the creation of
the entity must accompany the resolution.
-
The
new public entity must provide a statement which includes:
- The
Employer Identification Number (EIN) from the IRS.
- The
effective date requested for Social Security coverage
(usually the date of the employer's first hire).
- The
number of employees to be covered.
- The
name, address, phone number, fax number, e-mail address
and title of the person who will be the Division's
contact (usually the Certifying Officer).
-
After
the required information is received, the Division executes
a formal modification to extend Social Security coverage
under Section 218 of the State's Social Security coverage
agreement.
-
The
Secretary of Health, Education and Welfare approves the
modification. This process may take two or more months.
-
Once
the Division receives notice of the successful modification,
a copy of the modification is sent to the contact person.
Copies of the modification are also sent to the Enrollment
Bureau, the State Health Benefits Bureau and the Employer
Education Unit of the Client Services Bureau within
the Division.
Upon
receipt of a copy of the modification, the Employer
Education Unit contacts the employer to arrange training
and assistance. Once enrollment or transfer forms are
received by the Division, an employer location number
is assigned for each retirement system in which the
employer is enrolled. The Division uses the location
number to create and identify the new employer in our
data base systems. Most pension documents submitted
to the Division by the employer will request this location
number.
The
Employer Education Unit will determine which materials should
be included in the new employer information package forwarded
to the new location. Materials sent may include member handbooks,
enrollment and transfer applications, annual reports, newsletters,
fact sheets, and other forms needed by employers to provide
information to employees and to fulfill their duties in delivering
the pension programs.
The
package also will include information regarding our Employer
Education Programs, and a cover letter providing the name
and phone number of a contact
person within the EEU should the employer have any questions
or need more information.
The
receipt of an enrollment application or transfer form, and
the subsequent assignment of a location number, will create
a master file for the new location in our data base system.
This will then generate all enrollment certifications for
payroll deductions and the quarterly Report
of Contributions (ROC) form.
Because
the Division does not have complete control of the process
involved in granting approvals for accepting a new employer
into the pension system, this procedure may take many months
to complete. During that time the employer will have employees
eligible for membership, but not able to be enrolled. This
means that when the employer receives a certification to withhold
pension contributions, the employee will have a pension contribution
liability to take them back to their eligibility date.
However,
the Division does not promote withholding of pension contributions
from employees before a certification is issued, and we cannot
accept pension contributions withheld by the employer in an
effort to avoid a hardship resulting from back deductions.
Social
Security (FICA) Reimbursement for School Districts,
Boards of Education, and Charter Schools
Social
Security Office Locator Link