For public employees in New Jersey, navigating the financial landscape can often require assistance, especially when it comes to managing pension funds and benefits. The CL-0259-0799 form is a critical tool for members of the state's various retirement systems, including the Public Employees' Retirement System, Teachers' Pension and Annuity Fund, Police and Firemen's Retirement System, and State Police Retirement System. This form serves as a loan application, designed to help employees borrow against their contributions under specific conditions. With a clear interest rate of 4% per annum and a maximum of two loans allowed per calendar year, the form lays out eligibility criteria that include having three years of contributing membership. Moreover, it addresses repayment scenarios in the event of retirement or the borrower's death, ensuring beneficiaries are informed. The application process is detailed, guiding members through each step, from indicating the retirement system membership to signing the form before a Notary Public. For employees facing changes in employment or salary adjustments, the form also provides sections for employer certification. Understanding the mandatory repayment amounts, the potential impact of borrowing on future deductions, and the process for loan recertification can empower members to make informed financial decisions regarding their pensions and benefits.
| Question | Answer |
|---|---|
| Form Name | Form Cl 0259 0799 |
| Form Length | 2 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 30 sec |
| Other names | loanapp nj divi ions of pensions form |
State of New Jersey — Department of the Treasury
Division of Pensions and Benefits
L O A N A P P L I C A T I O N
PO Box 295
Trenton, NJ
1. |
I am a member of: (check one only) |
2. |
Membership #: |
|
|
|||
|
Public Employees' Retirement System |
3. |
Social Security #: |
|
||||
|
Teachers' Pension and Annuity Fund |
|
||||||
|
|
|
|
|
|
|||
|
Police and Firemen's Retirement System |
4. |
Date of Birth: |
|
||||
|
State Police Retirement System |
|
|
|
|
|
||
5. |
Name: |
|
|
|
|
|
|
|
|
(Please Print) |
First |
Middle Initial |
Last |
||||
|
|
|
|
|
|
|
||
6.Mailing
Address: |
Street |
|
|
|
|
||
(Please Print) |
|
|
|
|
City |
State |
Zip Code |
7.Daytime Telephone #:
Area Code
8.Amount of Loan Requested - If you wish to borrow the highest amount allowable, write in the word "Maximum"; if not, write in a specific amount. Call (609)
$
9.Loan Repayment Requested - If you wish to repay at the lowest amount allowable, write in the word "Minimum"; if you wish to pay more than the minimum, write in an amount. Call (609)
$ |
|
monthly or $ |
|
biweekly |
|
|
(State employees only) |
||
I understand that I must repay this loan together with any balance I may have outstanding on a present loan, with interest at 4% per annum, through payroll deductions or, in the case of retirement, as indicated in the "LOAN PROVISIONS" section of this application. I certify that I am an actively contributing member and that I am not currently on a leave of absence without pay. (See reverse side.)
|
|
|
Signature of Member |
|
|
|
|
|
|
|
Current Employer |
||||||
State of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
County of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Sworn and subscribed before me this |
|
|
|
day of |
|
|
, |
. |
|||||||||
Signature of Notary or Commissioner of Deeds |
|
|
|
|
|
||||||||||||
|
|
|
|
||||||||||||||
My Commission expires |
|
/ |
/ |
|
. |
|
|
|
|
|
|||||||
Official Title |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
If you have been out of work without pay within the last 6 months or have recently changed employers, please have your current employer certify the following information in order to process your loan application.
Date Member Returned to Payroll: |
|
/ |
/ |
|
|
Current Salary: $ |
||||
|
|
|
|
|
|
|
|
|
|
|
Amount of Loan Contributions submitted since return: $ |
|
|
New Location Code (for transfers only): |
|
||||||
Signature of Certifying Officer
— OVER —
LOAN PROVISIONS & INSTRUCTIONS |
|
|
PO Box 295 Trenton, NJ
LOAN PROVISIONS —
•Interest rate is 4% per annum on the declining balance of the loan.
•To be eligible, you must be an active contributing member of an eligible retirement system.
•To be eligible, you must have three years of contributing membership POSTED to your account. (This usually occurs three years and three months after enrollment.)
•You are allowed only two loans in any calendar year. The Division of Pensions and Benefits will retain your loan application on file for one year only.
•If you retire with an outstanding loan balance, under the provisions of Chapter 132, P. L. 1999, you have the option to
•If you die before the outstanding loan balance with interest has been recovered, the remaining balance will be repaid from the proceeds of any other benefit payable to your beneficiary(ies) including group life insurance or monthly payments.
INSTRUCTIONS —
ITEM 1 — RETIREMENT SYSTEM: Be sure to indicate the retirement system of which you are a member. If you are not sure, consult your personnel or payroll office.
ITEM 6 — ADDRESS: We suggest you have your check mailed to your home address instead of work, especially if you work for a large employer. Loan checks must be mailed. They cannot be picked up at the Division of Pensions and Benefits.
If your address changes between the time you file the application and the check is mailed, you may change your address by contacting the Division of Pensions and Benefits at (609)
ITEM 8 — AMOUNT OF LOAN REQUESTED: Loans are made in multiples of $10 and may not exceed 50% of your total contributions. No loan may be less than $50, and no loan may exceed $50,000. To hear loan availability and repayment figures customized to your account call
(609)
ITEM 9 — LOAN REPAYMENT REQUESTED: Your minimum repayment is scheduled in equal payments which will be equal to or greater than your monthly or biweekly (for state employees only) base salary multiplied by your rate of contribution (5% PERS & TPAF, 8.5% PFRS, and 7.5% SPRS). You cannot repay less than the minimum amount. Repayments may not exceed 25% of your base salary (maxi- mum deduction). If you wish to repay within a specific period of time, write "Repay by (date)" in the repayment block.
SIGNATURE AND NOTARY: Be sure to sign your application and have your signature witnessed by a Notary Public. For your own protection, unsigned or improperly notarized applications will not be processed. The Division cannot accept photocopies or faxes of completed applications.
EMPLOYER CERTIFICATION: The bottom portion of the application is to be filled out by your employer only if you have been out of work without pay for two weeks or more within the last 6 months or have recently transferred employment. If you are unsure, please see your employer or call the Division of Pensions and Benefits at (609)
IMPORTANT — The following are
1.Will the amount I borrow affect the amount of the monthly deduction?
The minimum loan repayment deduction is calculated the same way regardless of the amount you borrow. Therefore, your loan deduction will be the same whether you borrow $200 or $5,000. However, the repayment of a larger loan will continue for a longer period than a smaller loan.
2.Can the deduction amount be changed later?
You cannot pay less than the minimum deduction. Once loan deductions are certified, deductions cannot be changed except if you are retiring within two years and want your loan paid off by your retirement date. You can request a recertification of loan deductions by contacting the Division of Pensions and Benefits at (609)
3.When will the deductions start?
Loan deductions begin approximately two months after the loan is processed. The Division of Pensions and Benefits will send two copies of a Certification of Payroll Deductions to your employer. This will explain when the loan deductions will start, how many deductions will be made and how much they will be. Your employer should give you a copy of the certification.
4.If I am out of work without pay or terminate employment, must I continue to make loan payments? Loan payments are only made as deductions from your salary. When you return to public employment, you or your employer must notify the Division of Pensions and Benefits. Upon such notification, loan deductions will be recertified with added interest. If you terminate public employment and withdraw your contributions, you will receive your total contributions less any outstanding loan balance.