PENSION BENEFITS REPORT
Clarifying enrollment into PFRS
In the past few weeks, I have received some
questions regarding enrollment into the Police
and Fire retirement system (PFRS). Most of the
questions have been inquiring about the enrollment date. For most of our members, the enrollment date into PFRS should be the first of the
month; however, there are some members who
were enrolled during the month. I have received
PETER
some clarification regarding the enrollment
ANDREYEV process from the Division of Pensions. The following sections outline the enrollment date for new
employees in a regular appointment (civil service) or regularly budgeted position (non-civil service).
Employers who report pensions on a monthly basis
For employers who report on a monthly basis, the compulsory
enrollment date shall be fixed as the first of the month for an
employee whose regular civil service appointment or date of hire
into a non-civil service position falls between the first through the
16th of the month. The compulsory enrollment date shall be fixed
as the first of the following month for an employee whose appointment date falls between the 17th and the end of the month (N.J.A.C.
17:2-2.4(a)1 and (c)2).
Employers who report pensions on a bi-weekly basis
For employers who report on a bi-weekly basis, the compulsory
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enrollment date shall be fixed as the first day of the pay period for
an employee whose appointment date falls on the first through seventh day of the bi-weekly pay period. The compulsory enrollment
date shall be fixed as the first day of the following bi-weekly pay
period for an employee whose appointment date falls on any subsequent date within that pay period (N.J.A.C. 17:2-2.4(a)2 and (c)3).
For optional enrollees
An employee who is an optional enrollee shall be enrolled as of
the first of the month if the employer reports on a monthly basis, or
the first day of the next bi-weekly pay period if the employer reports
on a bi-weekly basis following the receipt of the enrollment application (N.J.A.C. 17:2-2(b)).
So the takeaway is basically this: If the employer is enrolling
someone new and he or she is hired between the first and the 15th,
you should enroll that employee for the month. If he or she is hired
on the 16th, that employee should be enrolled as of the next month.
“If someone is already enrolled and he or she has not worked
until the 16th, then the employer can use his or her discretion as to
whether that employee should be reported as being in pensi on that
month.”
Hopefully this clarifies some of the confusion regarding enrollment into PFRS. As always, I am available by phone or email should
you have any further questions. d