FAQ - Voluntary Savings Plans

1. What voluntary savings plans can members of PERS or PFRS enroll in?
   
   PERS or PFRS members may enroll in one or more of the following plans:
   
   • The Additional Contributions Tax-Sheltered Program (ACTS)
   • Supplemental Annuity Collective Trust Fund of NJ (SACT)
   • NJ State Employees Deferred Compensation Plan
     
     
2. What voluntary savings plans can members of ABP enroll in?
   
   ABP members may enroll in one or more of the following plans:
   
   • Additional Voluntary Contributions – through your investment carrier(s)
   • NJ State Employees Deferred Compensation Plan
     
     
3. How does the IRS classify these voluntary savings plans?
   
   ACTS, SACT and Additional Voluntary Contributions through your investment carrier are " 403(b)" plans. The NJ State Employees Deferred Compensation Plan is an IRS “457” plan.
   
   
   
4. What are the annual contribution limits for each of these plans?
   
   ACTS, SACT (PERS or PFRS)
   
   • Under age 50, $15,500 in 2008
   • Age 50+, $20,500 in 2008
     
     
   Note: Members enrolled in ACTS and SACT have a combined $15,500 or $20,500 limit.

NJ State Employees Deferred Compensation Plan (PERS or PFRS or ABP)

• Under age 50, $15,500 in 2008
• Age 50+, $20,500 in 2008

Note: Three years prior to retirement, plan members may be able to defer up to twice the normal limit for that year. For additional information, please contact Prudential at 866/657-3327.

Voluntary Additional Savings (ABP)

• Under age 50, $15,500 in 2008
• Age 50+, $20,500 in 2008

Note: Members who have at least 15 years of Rutgers employment without previous substantial contributions, may be able to tax defer more – contact your state-authorized investment carrier for more information.

5. Can I suspend and restart contributions?
   
   Yes, contributions to any of these savings plans can be suspended and restarted at a future time.

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Last Updated: 11/19/2007