N.J. Admin. Code § 17:7-3.2

Current through Register Vol. 56, No. 21, November 4, 2024

Section 17:7-3.2 - Selection of pension providers

(a) The Board shall select through a competitive bidding process at least three unrelated insurance or mutual fund companies licensed or otherwise authorized to transact business in New Jersey from which alternate benefit contracts will be purchased or investment options will be provided for the Retirement Plan and for the ACTS. These insurers or mutual fund companies shall be selected by competitive bidding in accordance with all applicable State laws and regulations. The selected pension providers shall be authorized to receive contributions within 60 days of their selection. Each contract shall be awarded for a period not to exceed six years with a renewal option for a period not to exceed three years. All pension providers shall be subject to a performance review by the Board every seven years and must meet such standards as the Board shall establish by rule in order to be renewed for another term of seven years as pension providers. The ability to remove a pension provider for cause during a seven-year term is not waived. In establishing by rule the criteria for the initial selection and any performance review of a pension provider, the Board shall consider, among other things, the following:

1. The portability of the contracts and investment options offered or to be offered by the company, based on the number of states in which the company provides contracts under similar plans;

2. The efficacy of the contracts and investment options in the recruitment and retention of employees for the various State public institutions of higher education;

3. The nature and extent of the rights and benefits to be provided by the contracts and investment options for participating employees and their beneficiaries;

4. The relation of the rights and benefits to the amount of contributions to be made pursuant to the provisions of 18A:66-172.1;

5. The suitability of the rights and benefits to the needs and interests of participating employees and the various State public institutions of higher education; and

6. The ability of the company to provide the rights and benefits under such contracts and investment options.

(b) The Board may not designate a company that serves as a disbursement system for other providers or which charges third-party administrative fees.

(c) A company that has been designated as of January 1, 1993 by the Division as a designated provider shall continue to be so designated until its status as a designated provider is terminated for cause by the Division or by the Board.

N.J. Admin. Code § 17:7-3.2