The University‚Äôs Benefits Assistance Program (BAP) is for employees in legacy UMDNJ positions, hired and enrolled before December 31, 2017, and consists of an After-Tax Annuity Option plan and a Supplemental Life Insurance plan. Its purpose is to supplement the existing ABP benefits that have been limited as a result of the Federal Revenue Reconciliation Act's annual cap.  This program is no longer accepting enrollment and employees who would have been eligible for this program are now eligible for the ABP Plan & Trust program.

Under the BAP After-Tax Annuity Option and Supplemental Life Insurance Plans, employees who have pensionable earnings exceeding $280,000 (2019) may elect to make additional after-tax employee contributions. The employee may contribute 5% on the salary portion that exceeds $280,000 and the University will contribute 8%, both on an after-tax basis

Annual Pensionable Earnings

Under the Benefits Assistance Program's (BAP) After-Tax Annuity Option and Supplemental Life Insurance Plans, employees hired on/or after July 1, 1996, who have pensionable earnings exceeding $275,000 may elect to make additional after-tax employee contributions. The employee may contribute 5% on the salary portion that exceeds $280,000 and the University will contribute 8%, both on an after-tax basis.

This benefit is considered as ordinary income and is subject to applicable federal and state taxes. Employee and University after-tax contributions may be applied to a participating Alternate Benefit Program (ABP) investment carrier.

This program helps offset the limited pension and life insurance plans. 

  • Eligible employees in legacy UMDNJ positions are given the opportunity to enroll in both of the BAP's plans by completing a Pension and Life Insurance After-tax Benefits Assistance Program (BAP) Election/Waiver form
  • If they do not enroll when first eligible, eligible employees can enroll during a special open enrollment for the BAP program in April of each year with coverage effective the same year.
  • The Group Life Insurance benefit is based on the annual earnings limit of $280,000 which is prorated in the first year. Upon enrollment in BAP's Supplemental Life Insurance Plan, your coverage will be the difference between $280,000 and your current annual base salary (rounded to the nearest thousand) multiplied by 3.5. [E.g. $280,000 - $265,000 = $15,000 x 3.5 = $52,500]. There is a life insurance limit of $560,000 under the Supplemental Life Insurance Plan

The Internal Revenue Code requires employers to calculate imputed income for employees who receive group life insurance coverage in excess of $50,000. The IRS Tax code requires employees to pay taxes on what they consider the value of group life insurance in excess of $50,000. The amount of imputed income is reported annually on the employee's W-2 form.