Text Box: CHANGES IN ADJUNCT PENSIONS What happened? The AFT worked all summer to parry the threat to adjunct pensions posed by the NJ State Legislature and the Governor’s office. Responding to the financial problems of the state, the Legislature drafted bills that would have eliminated pensions for all part-time state employees. After extensive lobbying by AFT, the legislature relented and, in the process, revamped the state pension system. What’s the difference in the two plans? Up to this time, adjuncts became members of PERS at the beginning of their third consecutive semester. PERS is a defined benefit system. Upon retirement, adjuncts will receive a monthly pension based on the salary and years of service. It takes ten years (non-concurrent) for adjuncts to become vested (have a legal right to the pension, even with breaks in service) in PERS. The new Alternate Benefit Program (ABP) is a defined contribution plan that offers substantial opportunities for long-term tax-deferred investment. Six investment carriers are authorized to provide investment options and services in the ABD. (This year, TIAA-CREFF is the default investor for those who do not designate another carrier.) The member and employer make regular tax-deferred contributions toward retirement savings. Members contribute 5% of base salary and employers contribute 8% of base salary. Under the voluntary 403(b) component of the program, members may make additional contributions on a tax-deferred basis. [403(b) is available for both PERS and ABP.] A member is vested in the ABP when beginning their third semester of employment at the member’s institution of higher education. If the member has an existing qualified account from a previous employer, the member is immediately vested. Once vested, all of the contributions and accumulations in the member’s account belong to the member, and will provide benefits to the member when he or she is eligible to receive them. If the member leaves the institution of higher education prior to becoming vested, he or she will receive a refund of the “employee” contributions, including any investment gain or loss. The “employer” contributions will be returned to the employer. Enrollment of adjunct faculty in the ABP should begin immediately upon the commencement of employment. I am an adjunct member of PERS. Can I continue with PERS? Yes. If you are already a member of PERS, you must elect within the first 30 days of the issuance of an employment contract to remain with PERS or to move to an ABP plan. In electing to stay with PERS, you irrevocably waive your benefits under the ABP and will continue your participation in PERS. On the other hand, if you elect to go to an ABP account, you irrevocably waive your benefits under PERS. Your accumulated pension service, contributions, and any available employer contribution under PERS moves to the ABP account. The employer’s contribution will be transferred into your ABP account only after you have accrued ten years of non-concurrent service. I am a new adjunct. What happens to me? All new adjuncts will be enrolled in the Alternate Benefit Program (ABP). I have taught at CCC for two semesters. Can I choose between the two programs? No. Since PERS enrollment doesn’t begin until your third consecutive semester, you will be enrolled in the ABP. I have taught at several colleges. Do I have to make the choice at each college? Yes. You must elect your coverage in every college in which you teach. You cannot, however, choose PERS in one institution and ABP in another. You must choose the same plan in all the institutions of higher education in which you teach. I do not have a course this semester but am a member of PERS. What do I do? You will have the opportunity to elect one of the programs when you return to teaching. However, if you do not teach for two years, your PERS account will become dormant. Check with the NJ State Pension program to discuss your options. How do I know which plan to select? In general, adjunct faculty members who are already vested in the PERS or close to vesting in the PERS plan may wish to remain with PERS. If you feel you will be teaching as an adjunct faculty member in the future, but have only been doing so for a brief period of time, seriously consider electing for the ABP, as the vesting in this plan is much sooner and you won’t have to worry about achieving ten years of service to vest as in PERS. Each case is different, however, and you may want to consult an investment counselor before making a decision. Information to help you make the choice that is right for you can be found on the NJ State Pension website. *Main website for pension information:   http://www.state.nj.us/treasury/pensions/active-home.htm *Comparison between PERS and ABP:  http://www.state.nj.us/treasury/pensions/abpvpers.htm *ABP member handbook:  http://www.state.nj.us/treasury/pensions/abpman.htm What is CCC doing to help me with this? CCC will be sending applications for electing the appropriate plan to PERS members the last week in January. You must return these election documents to Human Resources immediately, as your election period is limited to thirty(30) days from the start of your employment contract. In addition, if you elect to go with the ABP, CCC will be hosting a series of information sessions where you may speak with the State approved investment firms.