Our Mission Vision and Value Statement

Establishment of the Division

The Division of Pensions and Benefits (organization) is the successor to the former Bureau of Public Employees' Pensions created in June 1952. Under the general reorganization acts of 1948, the pension funds were located within the State Division of Budget and Accounting. In 1950 they were transferred to the Division of Investment under the statute creating that division.

The Division of Pensions and Benefits, under the Department of the Treasury, was created by Chapter 70, P.L. 1955. All administrative functions of the state pension funds, except for the investment of the assets retained in the Division of Investment, were assigned to the Division of Pensions and Benefits.

Responsibilities

The Division of Pensions and Benefits is responsible for the second largest public employee benefits program in the nation. It administers a comprehensive benefit program that enables public employers throughout the State to attract and retain skilled and talented employees. These include State employees, teachers, police officers, fire fighters, correction officers, judges, and many other local employees whose jobs are fundamental to the safety and well being of all New Jersey residents. Participants in the nine separate pension systems include:

• Over 653,500 retired and active participants in the State's defined benefits pension plans.
  
  
• Over 15,950 participants in the State's defined contribution pension plan.
  
  
• Over 36,000 participants in the State's supplemental retirement savings plans.

The Division administers an extensive pension loan program to its members:

• Over 131,600 loans totaling almost $497 million were processed last year.

The Division also administers the State Health Benefits Program (SHBP) that includes nine different health plans, eleven dental plans, and a prescription drug card plan. This program, with a cost of over $1.4 billion dollars annually, provides coverage for employees, retirees, and their dependents, of the State (medical, prescription drug, and dental) and approximately 850 local employers (medical and prescription drug only). The SHBP includes:

There are over 1,700 different participating local employer-reporting locations that employ the majority of our plan participants. These employer locations include counties, municipalities, school boards, fire and police departments, as well as independent public agencies and authorities. More specifically, these local employer locations employ 80% of the pension membership and 50% of the health benefit membership. In addition there are approximately 100,000 (includes employees of the State colleges and universities) State employees served by the Division.

The Division's benefits programs also include the following three supplemental retirement savings programs with over 36,000 participants:

• New Jersey State Employees Deferred Compensation Plan
  
  
• Supplemental Annuity Collective Trust (SACT)
  
  
• Additional Contributions Tax Sheltered Program (ACTS)

The Division also administers the IRC Section 125 program, termed Tax$ave, for State employees with over 85,000 participants.

Boards and Commissions

The following Boards and Commissions provide oversight and direction to our benefits programs:

Approximately 1 out of every 13 residents of New Jersey is an active or retired member of a State administered retirement system.

Approximately 1 out of every 13 residents of New Jersey is a participant in the State Health Benefits Program.

Consolidated Police and Firemen's Pension Fund

This fund was established by Chapter 358, P.L. 1952, to place 212 local police and firemen pension funds on an actuarial basis. The membership consists of police and firemen appointed prior to July 1, 1944. The liabilities of these local funds were shared: two-thirds by the participating municipalities and one-third by the state.

Statutes can be found in New Jersey Statutes Annnotated , Title 43, Chapter 16. Rules governing the operation and administration of the fund may be found in Title 17, Chapter 6 of the New Jersey Administrative Code.

Prison Officers' Pension Fund

This fund was established under Chapter 20, P.L. 1941. It was closed to new employees as of January 1960. New employees are enrolled in the Police and Firemen's Retirement System. This system is not maintained on an actuarial reserve basis.

Statutes can be found in the New Jersey Statues Annotated, Title 43, Chapter 7.

Central Pension Fund

This fund consists of the administration of a series of noncontributory pension acts. No reserves are established for the payment of retirement benefits. These benefits are administered by the Division in accordance with the governing statute and the rules and regulations of the State House Commission.