Annual local employer appropriation
billings are for the TPAF Early Retirement Incentive (ERI*) only,
the PERS (normal contribution, accrued liability and ERI*) and
the PFRS (normal contribution, accrued liability and ERI*). The
bills are due April 1 of each year. There is a 30-day grace period
and interest starts accruing at the statutory annual rate of 10%
on May 1.
*ERIs
of 1991, 1993
Teachers Pension and Annuity Fund
Bill
School
districts that adopted and filed a resolution with the Division
of Pensions and Benefits to participate in the Early Retirement
Incentive Program under Chapter 229 or 231, P.L. 1991, are liable
for the additional pension and health benefits costs incurred,
resulting from eligible employees in their district electing to
take advantage of the program. The additional pension liability
incurred as a result of eligible employees retiring under ERI
1 of the program is to be amortized over a period of 27 years
as equal annual installments. The installments began 4-1-1995
and will end 4-1-2021.
School districts
that adopted and filed a resolution with the Division of Pensions
and Benefits to participate in the early retirement incentive
program 2 (ERI 2) under chapters 138 and 163, P.L. 1993 are liable
for the additional pension costs incurred resulting from a location's
eligible employees electing to take advantage of the program.
The additional pension liability incurred as a result of eligible
employees retiring under ERI 2 will be billed in equal annual
installments to each location beginning 4-1-1997, and every year
thereafter based on the individual location's stated payment election.
Public Employees' Retirement System
Appropriation
invoices are prepared upon receipt of the actuary's valuation
and are normally mailed by November for payment on April 1 of
the following year.
PERS
Local Employer Pension Contributions Due April 1, 2008
In 2008,
local employers (municipalities, counties, school boards, authorities,
etc.) participating in the PERS will once again have an employer
pension contribution due. Please recall that Chapter 108,
P.L. 2003, which calls for the return of employer pension contributions
on a phase-in basis, was enacted to assist employers with this
returning obligation.
For 2008,
the amount due will be 80% of the actuarially calculated employer
contribution. To
get specific information about the 2008 employer contribution
due for your location, click here.
For 2007,
the amount due was 60% of the actuarially calculated employer
contribution. To
get specific information about the 2007 employer contribution
due for your location, click here.
For 2006,
the amount due was 40% of the actuarially calculated employer
contribution. To
get specific information about the 2006 employer contribution
due for your location, click here.
In 2005,
the amount due was 20% of the actuarially calculated employer
contribution. For
specific information about the 2005 employer contribution due
for your location, click here.
To
view a Comparison of Required PERS Local Employer Contributions
for State Fiscal Years Ending 2007 (actual) and 2008 (projected), click here.
Under the current funding method, the normal contribution and accrued liability are derived by taking the second quarter (calendar) report of contributions salaries from 2 years prior, which are annualized (ex. bills due 4-1-2008 mailed 11-07; the calculation will utilize the 3-31-06 ROC Report of Salaries). The annualized salaries are then multiplied by the applicable annual rates determined by an independent actuary.
The ERI 1
program is to be amortized over a 27-year period with an annual
6% increase per year. The first installment began 4-1-1995 and
will end 4-1-2021.
The ERI 2
liability is being billed with an annual 6% increase per year
on installments beginning 4-1-1997 and every year thereafter based
on the individual location's stated payment election.
A
listing of the history of PERS appropriations in recent years
is available here.
Police And Firemen's Retirement
System
Appropriation
invoices are prepared upon receipt of the actuary's valuation
and are normally mailed by November for payment on April 1.
Under the current funding method the normal contribution and accrued liability are derived by taking the second calendar quarter Report of Contribution salaries from three years prior. The second quarter salaries are annualized to provide the basis for assessment. For example: bills due 4-1-2008 were mailed 11-07; the calculated bill utilizes the salary information provided on the second quarter ROC (quarter ending 3-31-05).
The annualized salaries are then
multiplied by the applicable annual rates determined by an independent
actuary.
Legislation effective on July 1,
2003, (Chapter 108, P.L. 2003), reduces the normal and accrued
liability contributions that local employers must make to the
Police and Firemen's Retirement System (PFRS), for a period of
four years.
Under the law, the State Treasurer
will reduce local employer PFRS normal and accrued liability contributions
to a percentage of the amount certified annually
by the PFRS, as follows: 20 percent for payments due in State
fiscal year 2004 (July 1, 2003 to June 30, 2004); not more than
40 percent for payments due in State fiscal year 2005 (July 1,
2004 to June 30, 2005); not more than 60 percent for payments
due in State fiscal year 2006 (July 1, 2005 to June 30, 2006);
and not more than 80 percent for payments due in State fiscal
year 2007 (July 1, 2006 to June 30, 2007).
PFRS
Local Employer Pension Contributions Due April 1, 2008
In 2008,
local employers (municipalities, counties, and other local groups)
participating in the PFRS will once again have an employer pension
contribution due. Please recall that Chapter 108, P.L. 2003,
which calls for the return of employer pension contributions on
a phase-in basis, was enacted to assist employers with this returning
obligation (see above).
For
specific information about the employer contribution due for your
location in 2008, click here.
For
specific information about the employer contribution that was due for your
location in 2007, click here.
For
specific information about the employer contribution that was due for your
location in 2006, click here.
For
specific information about the employer contribution that was
due for your location for 2005, click here.
To
view a Comparison of Required PFRS Local Employer Contributions
for State Fiscal Years Ending 2007 (actual) and 2008 (projected), click here.
A
listing of the history of PFRS appropriations in recent years
is available here.
Dunning Notices
A reminder
notice is sent in the middle of April to locations that have not
made a payment for the appropriation bills due April 1st stating
that payment must be remitted by April 30. Three dunning notices
are sent to locations that are delinquent as of May 1, June 1,
and September 1.
Consolidated
Police And Firemen's Pension Fund
The administrative
costs of the fund shall be charged to the various employers in
proportion to the number of their employees and beneficiaries
covered by the fund. The bills for administrative fees are mailed
in July and are due April 1 of the following year. Dunning notices
are sent May 1 and June 1.
BACK
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Delayed Enrollment Employer Liability
(TPAF, PERS and PFRS)
A
delayed enrollment liability is generated when an employee is
not enrolled in the pension system within one year after the compulsory
enrollment date. When this occurs, the employer becomes liable
for one-half of the pension contributions that the employee would
have paid had he or she been enrolled in a timely manner.
The
Delayed Enrollment billing is calculated as follows:
Delayed Enrollment
- The employee's normal rate
of contribution multiplied by the employee's salary =
contribution dollar amount.
- The
contribution dollar amount multiplied by the number of
pays the member should have been properly enrolled = the
total amount of the liability.
- The employer is responsible
for one half of the liability amount; the other half is
the responsibility of the employee.
Delayed Appropriation
- The employee’s salary multiplied by the number of pays delayed enrolled multiplied by the employer rate.
The
salary reported on the ROC is used to calculate the annual employer
appropriation billing (PERS and PFRS).
The employer liability for delayed
enrollments is governed by Chapter 121, P.L. 1971 and NJAC 17:1-3.1.
Delayed Enrollment and Back Contributory
Group Life Insurance Premiums
For new enrollees and transfers,
the contributory insurance amount printed on the Quarter Report
of Contributions represents all premiums due from the contributory
group life insurance effective date (as shown on the Certification
of Payroll Deductions) to the end of the quarter in which
the member's name first appears on the Report of Contributions.
However, in cases where an employee's
enrollment has been delayed for a period of more than a year,
deductions for back contributory group life insurance premiums
cannot be taken for more than a year's time.