Employers' Pensions and Benefits Administration Manual (EPBAM)
   

 

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Employer Financial Services


Introduction

The core to the successful administration of any employee benefits program is the financial collection and reporting component of the program.  This part of the manual describes the financial procedures that are used to administer the various pension plans, supplemental savings plans, and the State Health Benefits Program.

Index

Reporting Employee Service, Salary and Payments
    The Quarterly Report of Contributions (ROC)
Employees Receiving Workers' Compensation
Remitting Employee Service, Salary and Payments
    Remitting Employee Contributions
Defined Benefit Plans
Defined Contribution Plans
The Employer Transmittal Electronic Payments System (TEPS)

Remitting Employer Payments
    Remitting Employer Payments
Defined Benefit Plans
Defined Contribution Plans
State Health Benefit Program (SHBP)

Remitting Employee Contributions

Defined Benefit Plans

All defined benefit plans administered by the NJ Division of Pensions and Benefits require that employee contributions be remitted regularly to the Division.  The defined benefit plans include the TPAF, PERS, PFRS, SPRS, and JRS.

State employers who use Centralized Payroll have employee contributions remitted for them by Centralized Payroll.  Pension contribution and salary records are available by accessing the TREADHOC system.

All other employing locations that utilize their own payroll methods must remit employee contributions through TEPS, "The Employer Transmittal Electronic Payments System" (see below).

To report and reconcile employee pension information and monies each calendar quarter, each employer that does not use Centralized Payroll is issued a preprinted Quarterly Report of Contributions.

Defined Benefit Plans and Pensionable Salary Limits

Under Chapter 113, P.L. 1997, the amount of compensation (salary) on which member contributions and benefits are based, for the defined benefit plans listed above, may not exceed the compensation limitation set by federal Internal Revenue Code. In other words, salary earned by a member in excess of the compensation limitation set by Internal Revenue Code is not pensionable; that is, it may not be used in determining member contributions and benefits. More information, including the current compensation limitation, is available here:History of Pensionable Salary Limits


Defined Contribution Plans

Each defined contribution plan (ABP, SACT, NJSEDCP, ACTS) has specific rules and procedures for reporting and remitting employee contributions.  By following a link below, you will be able to find information concerning the procedures for that fund.

ABP             

Alternate Benefits Program

ACTS           

Additional Contributions Tax-Sheltered

SACT          

Supplemental Annuity Collective Trust -- Regular & Tax-Sheltered

NJSEDCP     

New Jersey State Employees Deferred Compensation Plan

The Quarterly Report of Contributions (ROC)

This section addresses employer responsibilities for reporting employee contributions and payments for pension, group life insurance, and supplemental retirement savings plans, and reporting employee service on the Quarterly Report of Contributions.  Of particular importance are the discussions on base salary, service credit, group life insurance premiums, salary reported for members on a leave of absence with pay, and certified payroll deductions for employee pension liabilities like loans, arrears, and back deductions.

Included in this section is a sample ROC for a hypothetical, small PERS-covered employer with line-by-line instructions for completing this report. 

Copies of the ROC for Past Quarters

Copies of the Quarterly Report of Contributions submitted for past quarters are available from the Division.

Send a written request for the reports you need, specifying the fund and the quarter/year, along with a check to cover reproduction costs, as detailed below:

Cost (per Page) for Copies of the ROC for Past Quarters
If the ROC Requested Has:
Cost per Page
1 to 10 Pages
$0.75 per page
11 to 20 Pages
$0.50 per page
More than 20 Pages
$0.25 per page

Letters should be addressed to:

Audits and Billing
Division of Pensions and Benefits
PO Box 295
Trenton, NJ 08625-0295

Checks should be made out to: State of NJ, Department of the Treasury

Please allow 7 -10 working days for your request to be processed.

TEPS

To remit employee contributions, the Division of Pensions and Benefits requires employers to use the TEPS system.

The links below will take you to the information you need to use the TEPS, including establishing account processes, due dates, corrections, etc.  

TEPS: Introduction and Background

Detailed Telephone Procedure Guide

Employer Payments 

Appropriations are required from employers for their contributions and/or payments that are necessary to adequately fund employee benefits.  The amounts of all bills are established by the actuaries who monitor and assess the funding needs of the pension funds, SHBP, etc.  Historically, the bills for "employer liability" for the Defined Contribution Plans and State Health Benefits Program costs have been mailed during November of each year with a due date of April 1st of the following year.  

Each bill represents an amount that has been determined by the actuaries and has been prorated according to the membership totals at each employing location. The bills represent the employer costs for the plan year two years prior.

PERS Local Employer Pension Contributions Due April 1, 2007: In 2007, local employers (municipalities, counties, school boards, authorities, etc.) participating in the PERS will have an employer pension contribution due. 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 2007, the amount due will be 60% of the actuarially calculated employer contribution. For specific information about the 2006 employer contribution due on April 1, 2007 for your PERS location, click here.

PFRS Local Employer Pension Contributions Due April 1, 2007: In 2007, local employers (municipalities, counties, and other local groups) participating in the PFRS will have an employer pension contribution due. 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 specific information about the employer contribution due on April 1, 2007 for your PFRS location for 2006, click here.

Defined Benefits Pension Plans and Group Life Insurance

This section describes the billing and payment process for employer liabilities for the State-administered defined benefit pension plans, assessed employer shortages, and Noncontributory Group Life Insurance.

State Locations
The employer bill is sent in the form of a memo and a "book entry transfer" is conducted within State accounts.

Local Employers (including State agencies that do not use Centralized Payroll)
A bill is sent to the location, which is then required to pay by a check made out to the appropriate fund.  The bill is itemized and mailing instructions are included.

The items to be expected on employer bills will include some or all of the following:

Instructions for remittance and due date are included on an employer bill.

Defined Contribution Pension Plans and Group Life Insurance

The billing and payment process for employer liabilities for the Alternate Benefit Program (ABP), NJ State Employees Deferred Compensation Plan (NJSEDCP), Supplemental Annuity Collective Trust (SACT), and Additional Contributions Tax Sheltered (ACTS),  and Noncontributory Group Life Insurance.

  • ABP--Follow the link to instructions.
  • NJSEDCP--There are no employer liabilities under NJSEDCP.
  • SACT--There are no employer liabilities under SACT.
  • ACTS--There are no employer liabilities under ACTS.

State Health Benefits Program (SHBP)

This section describes the reporting, billing and payment process for the State Health Benefits Program.

SHBP Reporting and Billing

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Last Updated: August 1, 2006