2018 New Jersey Revised Statutes
Title 43 - PENSIONS AND RETIREMENT AND UNEMPLOYMENT COMPENSATION
Chapter 13 - Filling vacancies in trustees of certain trust funds; resignation of trustees
Section 43:13-22.67 - Loans from retirement system.
Section: 43:13-22.67: Loans from retirement system.
1. Any member who has at least three years of service credit for which contributions have been made as a member may borrow from the retirement system an amount equal to not more than 50\% of the amount of the member's aggregate contributions, but not less than $1,000.00; provided that the amount borrowed, together with interest, can be repaid by additional deductions from salary which do not exceed 25\% of the member's salary at the time the loan is made. The amount so borrowed, together with interest at a rate fixed by the commission on any unpaid balance, shall be repaid to the retirement system in equal installments by deduction from salary or in another manner and in amounts which the commission shall approve; but the installments shall be at least equal to the member's contribution to the retirement system and at least sufficient to repay the amount borrowed with interest at the conclusion of a term fixed by the commission or by the time the member attains age 70. No more than two loans may be made to any member in any 12-month period.
Interest charged for loans to members shall be fixed annually by the commission to take effect January 1 of each calendar year at a rate equal to the average of the daily rates of interest at constant maturity based on daily trades paid by 30-year United States Treasury bonds for the period beginning on the first and ending on the 30th day of the immediately preceding November plus 1\%, or 10\%, whichever is less. The interest earned from loans to members shall be treated in the same manner as interest from investments of the retirement system.
L.1987,c.171,s.1; amended 2003, c.167, s.1.