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Supplemental (Optional) Retirement Savings Plans
Additional Contributions Tax-Sheltered (ACTS) Program
Additional Contributions Tax-Sheltered (ACTS) Program allows for eligible employees to obtain supplemental tax-deferred annuities with a variety of carriers through a salary reduction agreement. Participants can direct voluntary contribution among six authorized investment carriers. Each carrier provides a selection of investment choices to meet the needs and goals of retirement planning.
ABP/ACTS Pensions Benefit Providers are currently approved by the Division of Pensions and Benefits to offer annuity investment accounts for ABP members.
Employees of county colleges, state universities and colleges, the Commission on Higher Education, the Department of Education, and the Office of Student Assistance are eligible to participate in the ACTS Program. Participation in ACTS is also open to those employees previously mentioned who are now receiving retirement allowances from a state pension system and who would otherwise be barred from joining another state pension system. Eligible employees can obtain supplemental tax-deferred annuities with outside investment carriers on the same basis and with the same carriers as currently available to members of the Alternate Benefit Program (ABP).
To be considered eligible, you must work for one of the employers listed above and normally work 20 hours per week or more. To enroll in ACTS please complete the Salary Agreement/Vendor Allocation form. You will also be required to complete a Vendor enrollment form which is available through the Office of Human Resources or by downloading it at the above link. To make changes to your ACTS program, please complete the Salary Agreement/Vendor Allocation form and forward the completed Salary Agreement Vendor Allocation form to the Office of Human Resources.
For more information, your can visit the NJ Division of Pension and Benefits website at http://www.state.nj.us/treasury/pensions/fact34.htm, or contact our Human Resource department.
Deferred Compensation Plan
Deferred Compensation Plan provides an opportunity to voluntarily shelter a portion of your wages from federal income taxes while saving for retirement to supplement your social security and pension benefits. To be eligible, you must be enrolled in a New Jersey state-administered retirement system. Under this plan, federal income tax is not due on deferred amounts or accumulated earnings until you receive a distribution from your account.
For more information you can visit the NJ Division of Pension and Benefits web site at http://www.state.nj.us/treasury/pensions/fact32.htm, or contact our Human Resource department.
Supplemental Annuity Collective Trust Fund (SACT)
Supplemental Annuity Collective Trust Fund (SACT) is a voluntary investment program that provides retirement income separate from, and in addition to, your basic pension plan. Your contributions are invested conservatively in the stock market. The program consists of two separate plans, the SACT-Regular Plan and the SACT-Tax-Sheltered Plan (IRC Section 403 (b)).
Under the Regular Plan, your contributions are taken from salary that has been subject to federal income tax. When funds are withdrawn at retirement or separation of service, the contributions are not subject to federal income tax, but the earnings on those contributions are taxable. You may contribute between 1 and 10 percent of your base salary (in whole percentages) to the SACT-Regular Plan.
For more information, you can visit the NJ Division of Pension and Benefits website at http://www.state.nj.us/treasury/pensions/fact35.htm, or contact our Human Resource department.
