N.J. Admin. Code § 17:10-5.12 - Outstanding loan

(a) Any member who has an outstanding loan balance at the time of retirement shall repay the loan balance, with interest, as follows:

1. In full as provided by N.J.S.A. 43:6A-34.4; or

2. By deductions from retirement benefit payments of the same monthly amount deducted from the member's compensation immediately preceding retirement until the loan balance, with interest, is repaid as authorized by N.J.S.A. 43:6A-34.4. If the member does not request repayment in full, repayment is by deductions in the same monthly amount deducted from the member's compensation immediately preceding retirement.

(b) If a retirant dies before the loan balance, with interest, is repaid, the remaining balance shall be paid first from the pension system group life insurance proceeds, and then from the proceeds of any returned contributions payable on account of the retirant to the beneficiary or estate and then from the proceeds of any other benefits payable on account of the retirant in the form of monthly payments that are due to the beneficiaries or the estate. If multiple beneficiaries are to receive these benefits, each beneficiary shall share in repaying the remaining balance in the same proportion in which they are entitled to the benefits.

Notes

N.J. Admin. Code § 17:10-5.12

New Rule, R.2000 d.290, effective 7/17/2000.
See: 32 New Jersey Register 173(a), 32 New Jersey Register 2602(a).
Amended by R.2003 d.296, effective 7/21/2003.
See: 35 New Jersey Register 388(a), 35 New Jersey Register 3381(a).
In (a), deleted existing 2 and recodified existing 3 as 2.