The University's Benefits Assistance Program for employees in legacy UMDNJ positions 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. 

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 $275,000 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 $275,000 which is prorated in the first year. Upon enrollment in BAP's Supplemental Life Insurance Plan, your coverage will be the difference between $275,000 and your current annual base salary (rounded to the nearest thousand) multiplied by 3.5. [E.g. $275,000 - $265,000 = $5,000 x 3.5 = $17,500]. 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.