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Additional Contributions Tax-Sheltered
(ACTS) Program

	Contents
	What is the ACTS Program?
	Who is eligible to participate?
	Who are the present participating investment carriers?
	Who were the previous participating investment carriers prior to April 1, 2004?
	What are the guidelines governing carrier operations on campus?
	What are the employer's responsibilities?
	What ACTS forms must be processed by the employer?
	What are the payroll guidelines that should be used for deductions?
	When and how should ACTS money be remitted?
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What is the ACTS Program?

The Additional Contributions Tax-sheltered (ACTS) program allows eligible employees to obtain supplemental tax-sheltered annuities with the same investment carriers available to Alternate Benefit Program (ABP) participants. Contributions for ACTS investments are voluntary and would be in addition to the contributions required by mandatory membership in a State-administered retirement system.

Eligible Employees

Employees of the county colleges, State colleges and universities, the Commission on Higher Education, the Department of Education, and the Office of Student Assistance, are eligible to participate in the ACTS Program, as long as they normally work 20 or more hours per week.

Participation in the ACTS Program is also open those employees listed above who are now receiving retirement allowances from a State pension system and would otherwise be barred from joining another State pension system.

It is the employee's responsibility to initiate the enrollment process by securing information and/or forms for enrollments.

Current Investment Carriers

The following providers are currently approved by the Division of Pensions and Benefits to offer annuity investment accounts for ACTS members (as of April 1, 2004):

	ING Life Insurance and Annuity Co. 581 Main St., Fourth Floor Woodbridge, NJ 07095 877-873-0321
	The Hartford 303 Lippincott Center, Suite 122 Marlton, NJ 08053 1-800-243-7782, ext. 207
	AXA Equitable (AXA Equitable Life Insurance Company) 333 Thornall Street, 8th Floor Edison, NJ 08837 866-786-0856
	Teachers Insurance and Annuity Association/ College Retirement Equities Fund (TIAA/CREF) Village Blvd, Suite A Princeton, NJ 08540 1-800-842-8412
	Met Life (formerly Travelers - CitiStreet) Mack Cali IV 581 Main Street, Sixth Floor Woodbridge, NJ 07095 1-800-545-0108 (732) 602-0500
	AIG VALIC 450 Headquarters Plaza Morristown, NJ 07960 (973) 285-8200 1-800-448-2542

You can give employees a copy of Fact Sheet 34, The Additional Contributions Tax-sheltered (ACTS) Program (All Funds), which outlines the program and gives the names, addresses and phone numbers shown above.

Investment Carriers Prior to April 1, 2004

Companies that served as investment carriers in the ACTS Program prior to April 1, 2004 (under the old contract) included:

	ING Life Insurance and Annuity Co. 581 Main St., Fourth Floor Woodbridge, NJ 07095 877-873-0321
	Lincoln Financial Group 442 Route 202-206 North Bedminster, NJ 07921-1523 1-877-908-2499
	MetLife Resources 144 Turnpike Road Southborough, MA 01772 1-800-560-5001155 Village Blvd, Suite A Princeton, NJ 08540
	Teachers Insurance and Annuity Association/ College Retirement Equities Fund (TIAA/CREF) Village Blvd, Suite A Princeton, NJ 08540 1-800-842-8412
	Travelers (CitiStreet) Travelers Insurance Company (CitiStreet Retirement Services) Mack Cali IV 581 Main Street, Sixth Floor Woodbridge, NJ 07095 1-800-545-0108 (732) 602-0500
	AIG VALIC 450 Headquarters Plaza Morristown, NJ 07960 (973) 285-8200 1-800-448-2542

 

Two of the previous providers above, Lincoln Financial and MetLife, are longer offering service to new members, nor are they eligible to receive continuing contributions after March 31, 2004.

Members who had chosen Lincoln Financial as their investment carrier are permitted to leave accumulated account balances with that provider, because Lincoln Financial has agreed to:

• Service existing accounts of the program according to the terms and conditions of the expiring contract, and;
• Continue reporting requirements to the Division according to the terms and conditions of the expiring contract for as long as the provider holds assets in program member accounts.

As a result, program members with accounts maintained by Lincoln may leave accumulated account balances with Lincoln, until such time as Lincoln is unable to fulfill its requirements under the contract. If that were to occur, affected members would be notified, with sufficient time given to make other financial arrangements.

Members who had chosen MetLife as their investment carrier may be permitted to leave accumulated account balances with that provider, as long as the provider agrees to the same conditions that Lincoln Financial has already agreed to:

• Service existing accounts of the program according to the terms and conditions of the expiring contract, and;
• Continue reporting requirements to the Division according to the terms and conditions of the expiring contract for as long as the provider holds assets in program member accounts.

If MetLife does not agree to the conditions above, program members with accounts maintained by that provider will be given until September 27, 2004, to transfer these assets to an approved provider under the new contract. If the member fails to elect a new carrier, the member's assets will be transferred to the default carrier.

Since Lincoln Financial and MetLife are no longer eligible to receive continuing contributions after March 31, 2004, members who had previously selected either of these carriers must elect one of the approved investment carriers under the new contract (see list above) for future investments. In the case where a member fails to elect a new investment carrier, the employer must direct contributions after March 31, 2004 to the default carrier.

Default Providers under the New Contract

ING Life Insurance and Annuity Co. is the default provider (carrier) through December 31, 2008. Contact information is provided below:

581 Main St., Fourth Floor
Woodbridge, NJ 07095
877-873-0321
www.ingretirementplans.com

For a complete list of the default carriers for the years 2004 through 2009, click here.

Worksite Visits by the Investment Provider Representatives

Employers are reminded that each carrier must be given equal access to worksites and staff. Representatives from each of the approved investment carriers should have contacted each employer's human resource department by April 1, 2004, to arrange for worksite visits. The carriers are always responsible for making prior arrangements with each human resource office before appearing on campus (see Carrier Guidelines below).

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Carrier Guidelines

The following guidelines apply to the carriers:

1. The carriers must register their representative(s) with each employers' benefits office prior to contacting eligible employees. Registration is to include name, address, office, and telephone number of the representative(s).
   
   
2. The carrier must advise and receive approval from each employer's benefits office for all worksite contact with plan participants.
   
   
3. Carrier representatives may not solicit business for plans or services outside the ACTS Program, e.g. disability insurance or life insurance, unless they are authorized to market such products by the employers.
   
   
4. The carrier must not sell or otherwise distribute mailing lists developed for the ACTS Program.
   
   
5. The carrier must visit eligible employers at least once annually.
   
   
6. Customized literature published by the investment carriers for eligible employees is subject to the review and edit of the Division of Pensions and Benefits prior to distribution.
   
   
7. The investment carrier is responsible and accountable for the accuracy of all program materials and presentations.
   
   
8. The investment carrier's representatives must provide complete, clear, and concise investment descriptions including administrative costs to the participant, investment objectives, risk level, performance history, and independent rating analysis when available.
   
   
9. The investment carrier representatives must adhere to these guidelines. Abuses may lead to the reevaluation of the carrier's approval status.
   

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Employer Administrative Responsibilities

Employers must designate an individual(s) who is responsible to function as the carriers' worksite point of contact; coordinate worksite marketing; advise carriers of any unique characteristics of the employer; and investigate complaints or policy infractions.

The employer will determine the frequency of informational seminars and the arrangements will be coordinated with the benefits manager. The employer will distribute the investment carrier representatives' names and telephone numbers to eligible employees, and decide if it is appropriate to provide eligible participants' names and addresses to the carriers. Employees may initiate contact if additional information is needed.

Employers may develop additional guidelines as they deem appropriate subject to the approval of the Division of Pensions and Benefits. With respect to participant complaints and marketing violations, incidents must be reported to the employer's benefits office and/or the Division of Pensions and Benefits for investigation and resolution.

The benefits office of each eligible employer is responsible for:

1. Informing eligible employees of their ability to participate in the ACTS Program by providing an ACTS Carrier Comparison Guide (color version) or ACTS Carrier Comparison Guide (black and white version), which includes a brief introduction to each of the carriers. The employees can obtain detailed information on investment options by contacting carriers individually;
   
   
2. Overseeing the investment carriers' contact with their employees;
   
   
3. Disseminating publications and providing products/services information to employees through orientation programs and informational meetings, which may include presentations by the investment carriers;
   
   
4. Establishing guidelines for the number of times in a year participants can switch investment carriers or change the percentage of allocation among the investment carriers. (Participants employed by the Commission on Higher Education, the Department of Education, and the Higher Education Student Assistance Authority are permitted to change their choice of investment carriers, or the percentage of allocation among investment carriers, twice during the calendar year.), and;
   
   
5. Timely processing of the Carrier Election and Allocation Form and the Salary Reduction Agreement. (Please note that many county colleges and State colleges and universities of New Jersey have their own internally-developed forms for use with the ACTS Program.)

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Employer Processing of ACTS Forms

There are two forms that the employer is responsible to file on behalf of the participants*:

*Many county colleges and State colleges and universities of New Jersey have their own internally-developed forms for use with the ACTS Program. See note below regarding the establishment of filing and processing procedures, and use of forms by county colleges and State colleges and universities.)

State Agency Carrier Election and Allocation Form

Once an employee establishes an account with the carrier (or carriers) of choice by contacting the carrier directly, the employer must provide the employee with the Carrier Election and Allocation Form. This form indicates the investment carrier is authorized to receive the participant's voluntary tax-deferred contributions and shows the allocation of contributions. This form must be completed and filed with the employer each time the participant desires to change any investment carrier, or the percentage of allocation among multiple carriers. ACTS employers have the discretion to establish guidelines for the number of times in a year their participants can switch investment carriers or change the percentage of allocation among the investment carriers.

State Agency Salary Reduction Agreement Form

The Salary Reduction Agreement (SRA) establishes a contract between the employee and the employer whereby the employee's eligible earned base salary will be reduced by voluntary contributions beyond those required by mandatory membership in any State-administered retirement system. The reduction shall not exceed the employee's statutory exclusion allowance under Section 403(b), or the limitations of Section 415 and the regulations thereunder of the Internal Revenue Code.

• The rate of salary reduction must be stated as a percentage of the employee's includable compensation (base salary minus required deductions under payroll guidelines). 
  
  
• No fractional percentages will be permitted for employees of the Commission on Higher Education, the Department of Education, and the Higher Education Student Assistance Authority. 
  
  
• State agencies' employees paid through Centralized Payroll are permitted to change their rate of salary reduction once per calendar quarter. 
  
  
• State colleges and universities and county colleges may establish their own policies regarding the number of salary reduction agreement changes allowable per year. 
  
  
• State colleges and universities and county colleges may establish their own policy regarding whether fractional or whole-number percentage deductions will be allowed.
  
  
• Suspension of contributions does not constitute a change. 
  
  
• To change the rate of salary reduction, a participant must file a Salary Reduction Agreement.

Maximum Exclusion Allowance

Although it is the responsibility of the investment carriers to compute the maximum exclusion allowance for ACTS participants upon request, it is the ACTS employers' responsibility to ensure that the employees' contributions do not exceed the statutory exclusion allowance under Section 403(b) or the limitations of Section 415 and the regulations thereunder of the Internal Revenue Code.

Employers under the State Centralized Payroll System must certify both the Salary Reduction Agreement and the Carrier Election and Allocation forms. These forms must be forwarded to the ACTS Program office at the Division of Pensions and Benefits. The employer and participant will receive confirmation copies with an effective date of deductions.

The benefits offices of State colleges or universities or county colleges must determine their own filing and processing procedures, and the format of their Salary Reduction Agreement and Carrier Election Forms.

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Payroll Guidelines

The Division of Pensions and Benefits offers the following payroll guidelines to assist your location in the payroll functions involving deductions.  The State's Centralized Payroll Office follows this priority order.  For example purposes, the base salary considered here is $40,000.

Remittances

In accordance with recent federal statutes, all 403(b) money withheld on behalf of an employee must be remitted and credited to the member's account within five working days after any pay date.  It is very important for both the member and the employing location to process any transfers and reports of 403(b) money in a timely way.  

Each provider has its own procedures for remitting employee contributions.  Any questions should, therefore, be directed to the providers.

All records of member contributions are kept locally with the employer (except for State agencies covered by Centralized Payroll).

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