Employers' Pensions and Benefits Administration Manual (EPBAM)
   

 

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    NJ State Employees
    Deferred Compensation Plan (NJSEDCP)
    General Background


Prudential Retirement Became NJSEDCP
Third-party Administrator, Effective January 1, 2006
Background Information about NJSEDCP

Determining Eligibility

Employer Processing and Forms Guide

Enrolling Eligible Employees

Transmittal Letter Procedures

Processing of Enrollment Package
Enrollment Form
Designation of Beneficiary

Rejected Enrollment Package

Document Review and Processing Procedures

Payroll Center (PCEN) Listing

Booklet: Reporting Employee Deferrals-
Finances and Correspondence (PDF™)


    Changes in the Administration of the New Jersey State Employees Deferred Compensation Plan

    On October 25, 2005, the State Treasury and New Jersey State Employers Deferred Compensation Board announced that Prudential Retirement, a business of New Jersey-based Prudential Financial, had been selected as the third party administrator for the New Jersey State Employees Deferred Compensation Plan (NJSEDCP). Because of this change in the administration of the NJSEDCP, effective January 1, 2006, some of the information provided below may no longer be accurate; other information has been added to incorporate the changes brought about by the plan administration changes explained above. The Division of Pensions will provide any additional procedural updates regarding the NJSEDCP as soon as they become available.

    Prudential's Deferred Compensation Forms Available

    Prudential's Salary Deferral Change Form

    Employees wishing to begin making contributions to the NJSEDCP or who wish to change their rate of contribution under Prudential Retirement must complete a Prudential Salary Deferral Change Form, click here.

    New participants must first establish an account by also completing the Request for Enrollment form, before authorizing payroll reductions with the Salary Deferral Change Form. To obtain these forms, see below.

    Members may also elect to discontinue participation in the NJSEDCP by completing the Salary Deferral Change Form and electing a 0% contribution rate.

    New! Prudential's NJSEDCP Forms and Materials Available on the Prudential NJSEDCP Web site (Click on the link for "Forms and Enrollment Materials."):

    • Enrollment Materials
      • Retirement Planning Guide
      • Enrollment Form
      • Rollover from Another Plan or IRA
    • Administrative Forms
      • Beneficiary Change Form
      • Deferral Rate Change Form
      • Catchup Contribution Form
      • Investment Allocation Change/Exchange Request
      • Pension Service Credit Purchase
    • Distribution Forms
      • General Distribution Form
      • Minimum Required Distribution
      • Beneficiary Claim
      • Voluntary In-Service

       

Enrolling Eligible Employees

Overview

Enrollment in the NJSEDCP is limited to employees of the State of New Jersey or an eligible agency, authority, commission, or instrumentality of State government. Employees of a county, township or municipality are not eligible for the NJSEDCP.

Enrollment packages are obtainable by contacting Prudential Financial, at 1-866-NJSEDCP (1-866-657-3327); employees with TDD equipment should use 1-877-760-5166. Enrollment packages are also available over the Internet, at: www.prudential.com/njsedcp   (After accessing Prudential's NJSEDCP Web site, click on the link for "Forms and Enrollment Materials.") Human resource and personnel representives should also have a supply of enrollment packages for use by their employees.

The enrollment packages must be completed and signed by the employee and forwarded to Prudential Financial. These forms can be mailed, faxed, or completed online for processing. (Please remember to keep a copy for your records.)

On page 3 of the Enrollment Form, those enrolling in the NJSEDCP are asked to name a beneficiary or beneficiaries. Any benefit that will be payable upon the employee's death will be made to the person(s) named on that part of the Enrollment Form.

The Enrollment Forms can be mailed to:

Prudential
30 Scranton Office Park
Scranton, PA 18507-1789.

The Enrollment Form can also be faxed to:

1-570-340-4328.

The Enrollment Form can be completed online, at:

http://www.prudential.com/njsedcp

Employees with questions about the enrollment process can contact their local Prudential Education Consultant, or they can call Prudential Retirement, at 1-866-NJSEDCP (1-866-657-3327), between 8:00 a.m. and 9:00 p.m. (TDD is available at 1-877-760-5166).

Deferral (Contribution) Amounts

Participants may defer between 1% and 100% of their salary (minus their tax-sheltered pension or other voluntary tax-sheltered contributions), but the dollar amount of their annual deferral cannot exceed $15,000 in 2006 ($20,000 for individuals age 50 or older).

For example, an employee who is 46 and makes an annual salary of $60,000 would not be permitted to defer more than of $15,000 in 2006, the maximum deferral amount permitted for this year. An employee who is 52 and makes an annual salary of $28,000 could defer up to $20,000 in 2006.

Transmittal Letter Procedures

The New Jersey State Employees Deferred Compensation Office receives numerous documents and forms from various payroll centers during daily operations.

The use of transmittal letters is required whenever documents are referred from a State payroll center to the Plan office.  

The transmittal letter is a cover sheet indicating the amount and type of forms enclosed, as well as the payroll center and date the documents are submitted. The transmittal letter should identify the authorized Personnel Representative to contact if discrepancies occur on the documents.

Transmittal letters received in the Plan office and containing discrepancies will be immediately corrected through the personnel representative at the payroll center submitting the required documents. This is necessary to assure that all documents are reviewed and processed in a timely manner.

Processing of Enrollment Package

Enrollment Request

PurposeTo obtain statistical information concerning the employee to be used in formulating the Deferred Compensation database and to inform the Plan participant of key relevant issues concerning the guidelines and administrative procedures to which the Plan conforms. See the Enrollment Form.

Enrollment Forms are submitted through the employee's personnel office and must be received in the Deferred Compensation office on or before the last working day of the month to be effective the second pay period of the following month.

The Enrollment Forms must be accompanied by a Designation of Beneficiary Form.

Employees who wish to to roll over an eligible amount from a former employer's IRC § 401(a), 401(k), §403(b), §457 (governmental only), or an IRA established in accordance with IRC § 408 (pre-tax money only), should also submit the Rollover Pre-approval form.

All Enrollment Forms are reviewed for the following information:

  • DIVISION/DEPARTMENT NAME
    The members entire Division and Department name printed in the space provided.
  • SOCIAL SECURITY NUMBER 
    The participant's Social Security number must be provided in the designated space. All participant accounts are referenced by the Social Security Number.
  • DAYTIME PHONE NUMBER
    The participant's daytime phone number, with area code should be filled in.
  • NAME AND ADDRESS
    The member's name and address, with street address, city, state, and ZIP Code included.

  • DATE OF BIRTH 
    The member's date of birth must reflect the participant's correct birth date. This date is utilized to calculate age when electing the Plan’s catch-up provision and at termination, retirement, or death for determining payment options.


  • CHECK DISTRIBUTION CODE 
    -- for payroll centers under the State’s centralized payroll, this is a ten digit code in which the first three digits are the State payroll location number. The fourth and fifth digits of this number represent the unit number. The sixth and seventh digits are the check distribution number. This information is necessary to determine participant's employment location and for returning confirmed copies of all forms for payroll center records. For payroll centers not under the State’s centralized payroll, this is provided for the payroll center’s use only and may be left blank.

  • EMPLOYEE'S NAME 
    -- should reflect the legal name of the participant.


  • EMPLOYEE'S ADDRESS 
    --
    should indicate the participant's complete home address. This address will be utilized for mailing purposes unless otherwise requested by the participant.


  • EMPLOYEE'S TELEPHONE 
    --
    should be indicated, both home and work numbers for future contact purposes.


  • RETIREMENT SYSTEM and MEMBERSHIP NUMBER 
    --
    indicates the participant's enrollment in a State administered retirement system. If the participant is not enrolled in one of the State administered retirement systems, the payroll center must attach a letter of explanation. (Eligibility requirements determine that the individual must either be presently enrolled in a New Jersey state administered retirement system, including the Alternate Benefit Program, or have accrued at least twelve (12) consecutive months of employment. The exceptions are those not required to enroll in the retirement system who are considered permanent in a position immediately, or any individual employed through a Governor's appointment.)


  • AUTHORIZED PAYROLL DEDUCTION 
    --
    should indicate a deferral percentage of at least 2%. A participant may contribute no more than 25% of compensation [salary minus IRC section 414(h) money, IRC section 125 or 403(b) reductions], not exceeding $8,500 per year. There is a dollar minimum of $10 deduction for employees paid on a biweekly basis and $20 for employees paid on a monthly basis.


  • INVESTMENT ELECTIONS 
    -- must total 100% and invested between the funds in multiples of 1% 
    Example: Fund 1, 15%; Fund 2, 35%; Fund 3, 50%, or
    Fund 1, 0%; Fund 2, 0%; Fund 3, 100% or 
    Fund 1, 0%; Fund 2, 65%; Fund 4, 35%, etc. 
    The participant may invest in any or all of the funds.


  • The four funds are: Bond, Money Market, Equity, and Small Cap Equity.

  • The form is signed and dated by the participant and the authorized Personnel Representative at the participant's payroll center  The Personnel Representative's name must be the same one on record with the Deferred Compensation office.

Acceptable changes to the information contained in the form must be initialed by the participant.

The completed Enrollment Request must be submitted with all copies intact. Once the Deferred Compensation office dates and signs the bottom of the form (Enrollment Request Confirmation), the related confirmation copies will be returned to the participant through the participant's payroll center personnel office.

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Beneficiary Request

Purpose: To obtain statistical information concerning the selected beneficiary(ies) to be used in the event of the participant's death for account distribution.

Upon receipt of the enrollment packet, the Beneficiary Request is reviewed for the following information:

  • SOCIAL SECURITY NUMBER 
    -- must be provided in the designated space. All participant accounts are referenced by the Social Security Number.


  • PAYROLL CENTER 
    --
    must be "0001" when payroll center is under the State’s centralized payroll. If the payroll center is not under the State’s centralized payroll, a number will be assigned by the Deferred Compensation Plan.


  • CHECK DISTRIBUTION CODE 
    -- for payroll centers under the State’s centralized payroll, this is a ten digit code in which the first three digits are the State payroll location number. The fourth and fifth digits represent the unit number. The sixth and seventh digits are the check distribution number. Information is necessary to determine participant's employment location and for returning confirmed copies of all forms for payroll center records. For payroll centers not under the State’s centralized payroll, this is provided for the payroll center’s use only and may be left blank.


  • EMPLOYEE'S NAME 
    --
    should reflect the legal name of the participant.  The information above should correspond with the Enrollment Request.


  • PRIMARY BENEFICIARY 
    --
    complete information should be listed, including name, address, birth date, Social Security Number, relationship to participant (if not a specific relationship, friend may be indicated), and entitled share percentage. More than one primary beneficiary may be listed. If more than one primary beneficiary is named and one predeceases the participant, the surviving primary beneficiaries will share the deceased’s percentage proportionally to their own stated share percentages. Total shares must equal 100%.


  • CONTINGENT BENEFICIARY 
    --
    if elected, must also contain name, address, birth date, Social Security Number, relationship to participant (if not a specific relationship, friend may be indicated), and entitled share percentage. Contingent beneficiaries receive benefits if all primary beneficiaries predecease the member. More than one contingent beneficiary may be listed. If more than one contingent beneficiary is named and one predeceases the participant, the surviving contingent beneficiaries will share the deceased’s percentage proportionally to their own stated share percentages. Total shares must equal 100%.

    All named beneficiaries must have a Social Security Number or the enrollment package will be returned. If a participant desires to elect a beneficiary that has not yet been issued a Social Security Number, it is suggested that the participant name his estate until the Social Security Number becomes available. At that time an updated Beneficiary Request may be filed.

    If the participant designates more primary or contingent beneficiaries than space allows on the Beneficiary Request form, a separate sheet of paper may be attached providing all requested information and signed by the participant.

  • NOTARY AND EMPLOYEE SIGNATURES 
    --
    must be signed and dated by the participant. After the form is completed in full and properly signed, it must be notarized (this applies to our updated Beneficiary Request forms that provide a space for a notary). If additional sheets are included for additional beneficiaries, these sheets must also be signed and notarized.

    Acceptable changes to the information contained in the Beneficiary Request form must be initialed by the participant.

The completed Beneficiary Request must be submitted with ALL copies attached. Once the Deferred Compensation Office dates and signs the bottom of the form (BENEFICIARY REQUEST CONFIRMATION), the related confirmation copies will be forwarded through the participant's payroll center.

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Rejected Enrollment Package

If the Enrollment Request is incomplete or contains errors in filing, all forms (Enrollment Request, and Beneficiary Request) are returned to the participant's personnel office.

All incomplete or unacceptable forms are returned to the respective personnel office accompanied by a cover letter indicating the reason for rejection. The personnel office should contact the employee and request the necessary information be corrected or provided. The Enrollment Package should then be reviewed by the personnel representative for accuracy and resubmitted to the Deferred Compensation office with a copy of the Plan’s cover letter indicating the reason for rejection.

If the Enrollment Request is satisfactorily completed, but the Beneficiary Request has minor errors (such as missing information regarding the relationship of the beneficiary to the participant) the enrollment is processed. However, the Beneficiary Request is rejected and returned to the authorized personnel representative. A copy of the request is kept on file until the corrected original is received.

If the Beneficiary Request has major errors (such as a missing signature of participant or notary, incorrect share information, lack of Social Security number or address for beneficiary) both the Enrollment Request and Beneficiary Request are returned to the participant’s personnel office. In this case the enrollment is not processed until the forms are properly completed and re-filed with the Deferred Compensation Office.

Document Review and Processing Procedures

It is extremely important for the authorized personnel representative to be familiar with the completion of the Deferred Compensation Plan Enrollment Request and Beneficiary Request. The representative verifies and approves, by way of a signature, the information and elections on the Enrollment Package forms. This verification acts as a check system for the enrollment procedure.

As previously stated, the Enrollment Request and Beneficiary Request are reviewed for completion and correction upon receipt in the Deferred Compensation Office. The review process is performed by technical personnel and supervised by a Pension Benefits Specialist in the Deferred Compensation Section.

Immediately upon receipt, technical personnel will date stamp each copy of the Enrollment Package documents. This is followed by a review of the Enrollment Package for accuracy. Also, the confirmations at the bottom of the Enrollment Request and the Beneficiary Request forms will be completed. The Enrollment Request Confirmation will indicate the effective enrollment date. The Deferred Compensation representative's signature and date signed will be entered on both forms of the Enrollment Package. This completes the confirmation of enrollment.

Once confirmation of the Enrollment Package is complete, the form copies are distributed by technical personnel as follows:

Enrollment Request and Beneficiary Request (as color copies apply):

    • White Copy -- retained by the Deferred Compensation section for data entry, and subsequently filed in the participant's account folder by Social Security Number.

    • Green Copy -- this copy will be returned to the appropriate centralized payroll office to update the participant’s payroll deduction file.

    • Canary Copy -- returned to the participant's personnel office to be maintained in the payroll or personnel file.

    • Pink Copy -- returned to the participant's personnel office to be forwarded to the participant as a confirmation of the action.

    • Gold Copy -- retained by the participant or personnel office before submission to the Deferred Compensation office for processing of the form as a record of filing.

    Technical or clerical personnel in the Deferred Compensation section will maintain an account folder to be filed in Social Security Number order under active participants.

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PAYROLL CENTER (PCEN) LISTING

PAYROLL
CENTER NUMBER

PAYROLL CENTER NAME

0001

State of NJ, Centralized Payroll

0002

Rutgers University

0003

University of Medicine & Dentistry of NJ

0004

NJ institute of Technology

0005

Palisades Interstate Park Commission

0006

Ocean County Soil Conservation Dist.

0007

NJ Water Supply Authority

0008

South Jersey Port Corp.

0009

Delaware River Basin Commission

0010

Hackensack Meadowlands Development Commission

0011

Waterfront Commission, New York Harbor

0012

NJ Education Facilities Authority

0013

Casino Reinvestment Authority

0014

NJ Housing & Mortgage Finance Agency

0015

The College of New Jersey

0016

Ramapo College

0017

Rowan University

0018

William Paterson College

0019

Thomas Edison State College

0020

Kean College

0021

Montclair State University

0022

Stockton State College

0023

New Jersey City University

0024

Pinelands Commission

0025

Atlantic City Convention Center Authority

0026

Warren County Soil Conservation Dist.

0027

NJ Health Care Facilities Financing Authority

0028

Burlington County Soil Conservation Dist.

0029

Mercer County Soil Conservation Dist.

0030

Freehold Soil Conservation Dist. (Monmouth & Middlesex Counties)

0031

Gloucester County Soil Conservation Dist.

0032

Hunterdon County Soil Conservation Dist.

0033

Morris County Soil Conservation Dist.

0034

NJ Commerce & Economic Growth Commission

 

Beneficiary Request Form

 

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Last Updated: December 7, 2005