DIVISION OF PENSIONS AND BENEFITS
DIVISION OFPENSIONS AND BENEFITSA Department of the State of New JerseyCOMPREHENSIVE ANNUALFINANCIAL REPORTfor the Fiscal Year EndedJune 30, 2010Our mission is to providequality benefits and servicesthat meet the needs of our clients and otherswe are committed to serve,through our efficient and responsive workforce.
Our Mission . . .To provide quality benefits and services that meet the needsof our clients and others we are committed to serve,through our efficient and responsive workforce.Our Vision . . .WE will achieve client satisfaction through equitable, effective, responsive service, and clear andaccessible communications that meet the needs ofour clients.WE will encourage and support an accomplishedworkforce that is knowledgeable, flexible, technically proficient and committed to excellence.WE will be committed to working with executiveand legislative agencies and governing boards toimprove the design and implementation of thebenefit programs.WE will support technologies that simplify procedures and improve services, manage ourresources in a responsible and creative manner,and hold contracted service providers to highstandards.WE will work with participating employers toenhance their role in the administration of benefits for their employees through integrated technology that allows them to access and processbenefit information directly.Our Values . . .WE are customer-focused, recognizing eachclient individually.WE acknowledge as our greatest asset ourknowledgeable, hardworking, dedicated and caring staff.WE are financially responsible in the administration, oversight, and delivery of our benefit programs.WE are committed to providing quality, timely,accurate, efficient, and cost effective services.WE are committed to creating and developing aquality work environment using state-of-the-arttechnologies, and processes that foster continuousimprovement of our organization through teamwork, motivation, and communication amongstaff.Our Goals . . .Customer Service —TO create and maintain a customer focusedwork environment that anticipates and meetsclient needs.Staff —TO have a full complement of staff that iswell trained, undergoes continual development, and is motivated to provide benefitservices effectively and efficiently in a customer friendly manner.Technology —TO have an integrated, easily maintained andmodified, information processing system thatsupports the efficient and effective delivery ofservices.Planning —TO have an effective planning system thatfacilitates improvement, anticipates changeand properly focuses resources on priorities.Benefits Processing —TO provide benefits to clients in a timely andefficient manner.Advocacy —TO help structure a well-funded system ofbenefits that meets the needs of publicemployees and employers.Oversight and Compliance —TO administer programs with clear and consistent policies and procedures and provideoversight to safeguard fund assets and ensurebenefit entitlement.
NEW JERSEY DIVISIONPENSIONSANDOFBENEFITSA DEPARTMENT OF THE STATE OF NEW JERSEY55thCOMPREHENSIVEANNUAL FINANCIAL REPORTFor the Fiscal Year Ended June 30, 2010Chris ChristieGovernorAndrew P. Sidamon-EristoffFlorence J. SheppardState TreasurerActing DirectorSTATE OF NEW JERSEYDEPARTMENT OF THE TREASURYDIVISION OF PENSIONS AND BENEFITSPO BOX 295TRENTON, NJ 08625-0295(609) 292-7524
Programs administered by theNEW JERSEY DIVISION OF PENSIONS AND BENEFITSPERS Public Employees' Retirement SystemTPAF Teachers' Pension and Annuity FundPFRS Police and Firemen's Retirement SystemSPRS State Police Retirement SystemJRS Judicial Retirement SystemDCRP Defined Contribution Retirement ProgramABP Alternate Benefit ProgramPOPF Prison Officers' Pension FundCPFPF Consolidated Police and Firemen's Pension FundNJSEDCP NJ State Employees Deferred Compensation PlanSACT Supplemental Annuity Collective TrustACTS Additional Contributions Tax-Sheltered ProgramCPF Central Pension FundPAF Pension Adjustment FundUCTDSE Unemployment Compensation and Temporary Disability for State EmployeesSHBP State Health Benefits ProgramSEHBP School Employees’ Health Benefits ProgramPDP Prescription Drug PlanEDP Employee Dental PlansTax ave NJ State Employees Tax Savings ProgramPremium Option Plan,Unreimbursed Medical Flexible Spending Account, andDependent Care Flexible Spending AccountCommuter Tax ave State Employees Commuter Tax Savings ProgramLTC State Employees Long Term Care Insurance PlanINDEPENDENT AUDITORKPMG LLPNew Jersey Headquarters150 John F. Kennedy ParkwayShort Hills, NJ 07078ACTUARIAL REPORTSBUCK CONSULTANTS500 Plaza DriveSecaucus, NJ 07096-1533MILLIMAN1550 Liberty Ridge DriveSuite 200Wayne, PA 19087-55722New Jersey Division of Pensions and Benefits
TABLE OF CONTENTSINTRODUCTORY SECTIONLetter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11All in a Year’s Work (Accomplishments in 2010) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16Organization — Board of Trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20Significant Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22Scope of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29FINANCIAL SECTIONIndex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39Management’s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41Basic Financial StatementsStatement of Fiduciary Net Assets — Fiduciary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46Combining Statement of Fiduciary Net Assets — Fiduciary Funds — Pension Trust andState Health Benefit Program Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47Statement of Changes in Fiduciary Net Assets — Fiduciary Funds . . . . . . . . . . . . . . . . . . . . . . . . . .48Combining Statement of Changes in Fiduciary Net Assets — Fiduciary Funds — Pension Trust andState Health Benefit Program Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49Notes to Financial Statements(1) Description of the Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50(2) Summary of Significant Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51(3) Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61(4) Securities Lending Collateral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68(5) Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69(6) Vesting and Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76(7) Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82(8) Contingencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85Schedules#1Required Supplementary Information (Unaudited) — Schedule of Funding Progress . . . . . . .86#2Required Supplementary Information (Unaudited) — Schedule of Employer Contributions . . .91#3Schedule of Administrative Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94#4Schedule of Investment Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95#5Schedule of Expenses for Consultants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95#6Schedule of Fiduciary Net Assets — Fiduciary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . .96#7Schedule of Changes in Fiduciary Net Assets — Fiduciary Funds . . . . . . . . . . . . . . . . . . . . .97New Jersey Division of Pensions and Benefits3
TABLE OF CONTENTS#8Combining Schedule of Balance Sheet Information — Fiduciary Funds — Agency Funds . . . .#9Schedule of Changes in Fiduciary Net Assets Information — Fiduciary Funds —Agency Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9899#10 Combining Schedule of Fiduciary Net Assets Information — State Health BenefitProgram Fund — State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100#11 Combining Schedule of Changes in Fiduciary Net Assets Information — State Health BenefitProgram Fund — State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101#12 Combining Schedule of Fiduciary Net Assets Information — State Health BenefitProgram Fund — Local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102#13 Combining Schedule of Changes in Fiduciary Net Assets Information — State Health BenefitProgram Fund — Local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103#14 Combining Schedule of Fiduciary Net Assets Information — State Health BenefitProgram Fund — Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104#15 Combining Schedule of Changes in Fiduciary Net Assets Information — State Health BenefitProgram Fund — Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105#16 Combining Schedule of Balance Sheet Information — Agency Fund —Dental Expense Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106#17 Combining Schedule of Changes in Fiduciary Net Assets Information — Agency Fund —Dental Expense Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107#18 Schedule of Changes in Assets and Liabilites Information — Agency Fund —Alternate Benefit Program Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108#19 Schedule of Changes in Assets and Liabilites Information — Agency Fund —Pension Adjustment Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109#20 Schedule of Changes in Assets and Liabilites Information — Agency Fund —Dental Expense Program — Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110#21 Schedule of Changes in Assets and Liabilites Information — Agency Fund —Dental Expense Program — State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111#22 Schedule of Changes in Assets and Liabilites Information — Agency Fund —Dental Expense Program — Local . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112INVESTMENT SECTIONReviews of Major Policy Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115State Investment Council — Key Regulations Pertaining to Pension Fund Assets . . . . . . . . . . . . . . . . . . 116Proxy Voting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116Investment Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117Fair Value and the Percent of Total Fair Value for Each Major Type of Investment . . . . . . . . . . . . . . . . . . 117State of New Jersey Composite Asset Allocation History (Graph) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118U.S. Equities — Portfolio Sector Weightings (Graph) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1194New Jersey Division of Pensions and Benefits
TABLE OF CONTENTSInternational Equities Developed Markets — Portfolio Sector Weightings (Graph) . . . . . . . . . . . . . . . . . . 119List of Largest Assets Held . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120Domestic Equity Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122International Equity Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122ACTUARIAL SECTIONPublic Employees’ Retirement System (PERS)Actuary’s Certification Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125Summary of Actuarial Assumptions and Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128Schedule of Retired Members and Beneficiaries Added to and Removed from Rolls . . . . . . . . . . . . . . 131Schedule of Active Member Valuation Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132Solvency Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133Analysis of Past Financial Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134Summary of Benefit and Contribution Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135Teachers’ Pension and Annuity Fund of New Jersey (TPAF)Actuary’s Certification Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140Summary of Actuarial Assumptions and Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143Schedule of Retired Members and Beneficiaries Added to and Removed from Rolls . . . . . . . . . . . . . . 150Schedule of Active Member Valuation Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150Solvency Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150Analysis of Financial Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151Summary of Principal Plan Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152Police and Firemen’s Retirement System (PFRS)Actuary’s Certification Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157Summary of Actuarial Assumptions and Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160Schedule of Retired Members and Beneficiaries Added to and Removed from Rolls . . . . . . . . . . . . . . 163Schedule of Active Member Valuation Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164Solvency Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165Analysis of Past Financial Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166Summary of Benefit and Contribution Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167State Police Retirement System (SPRS)Actuary’s Certification Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170Summary of Actuarial Assumptions and Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172Schedule of Retired Members and Beneficiaries Added to and Removed from Rolls . . . . . . . . . . . . . . 174Schedule of Active Member Valuation Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174Solvency Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174New Jersey Division of Pensions and Benefits5
TABLE OF CONTENTSAnalysis of Past Financial Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175Summary of Benefit and Contribution Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176Judicial Retirement System (JRS)Actuary’s Certification Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178Summary of Actuarial Assumptions and Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180Schedule of Retired Members and Beneficiaries Added to and Removed from Rolls . . . . . . . . . . . . . . 182Schedule of Active Member Valuation Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182Solvency Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182Analysis of Past Financial Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183Summary of Benefit and Contribution Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184Consolidated Police and Firemen’s Pension Fund (CPFPF)Actuary’s Certification Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186Summary of Actuarial Assumptions and Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188Schedule of Retired Members and Beneficiaries Added to and Removed from Rolls . . . . . . . . . . . . . . 189Schedule of Active Member Valuation Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189Solvency Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189Analysis of Past Financial Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190Summary of Benefit and Contribution Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191Prison Officers’ Pension Fund (POPF)Actuary’s Certification Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192Summary of Actuarial Assumptions and Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194Schedule of Retired Members and Beneficiaries Added to and Removed from Rolls . . . . . . . . . . . . . . 195Schedule of Active Member Valuation Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195Solvency Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195Analysis of Past Financial Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196Summary of Benefit and Contribution Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197Supplemental Annuity Collective Trust (SACT)Actuary’s Certification Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198Summary of Actuarial Assumptions and Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200Schedule of Retired Members and Beneficiaries Added to and Removed from Rolls . . . . . . . . . . . . . . 201Schedule of Active Member Valuation Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201Solvency Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201Analysis of Past Financial Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202Summary of Benefit and Contribution Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2036New Jersey Division of Pensions and Benefits
TABLE OF CONTENTSSTATISTICAL SECTIONSchedule of Retired Members By Type of Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207Schedule of Revenues By Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208Schedule of Expense By Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210Participating County and Municipal Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212Participating Education Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215Participating Agencies and Authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219Participating State Departments and Pension Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221New Jersey Division of Pensions and Benefits7
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INTRODUCTORY SECTION
10New Jersey Division of Pensions and Benefits
Mailing Address:PO Box 295Trenton, NJ 08625-0295Location:50 West State StreetTrenton, New JerseyState of New JerseyDEPARTMENT OF THE TREASURYDIVISION OF PENSIONS AND BENEFITS(609) 292-7524 TDD (609) 292-7718www.state.nj.us/treasury/pensionsLETTER OF TRANSMITTALCHRIS CHRISTIEGovernorDecember 1, 2010To the HonorableChris Christie, GovernorAndrew P. Sidamon-Eristoff, State TreasurerMembers of the LegislatureMembers of the Boards of TrusteesOn behalf of the Division of Pensions and Benefits, I am pleased to submitthe 55th Comprehensive Annual Financial Report (CAFR) of the New JerseyState-administered retirement systems and related benefit programs for thefiscal year ended June 30, 2010. The management of the Division of Pensionsand Benefits (the Division) is responsible for the accuracy of the data andthe completeness and fairness of the presentation. To the best of my knowledge and belief, the enclosed information is accurate in all material respectsand is reported in a manner that fairly represents the financial position andresults of the Division’s operations.ANDREW P.SIDAMON-ERISTOFFState TreasurerSTRUCTURE OF THE CAFRThis comprehensive annual financial report is divided into five sections: The Introductory Section, which contains this letter of transmittal, theorganization of the Division and Boards of Trustees, an overview of legislation enacted during the year covered by the CAFR, and general information regarding the operations of the Division. The Financial Section, which contains the report of the IndependentAuditors and the financial statements, schedules and supplementaryfinancial information regarding funds administered by the Division. The Investment Section, which contains information pertaining to themanagement of the investment of the Pension Trust Funds.FLORENCE J. SHEPPARDActing Director, Divisionof Pensions and Benefits The Actuarial Section, which contains the funds’ Actuary Certification letters and information regarding the actuarial assumptions and methodsused to determine the contribution requirements of the Pension TrustFunds. The Statistical Section, which contains general statistical informationregarding the programs administered by the Division.New Jersey Division of Pensions and Benefits11
LETTER OF TRANSMITTALTHE REPORTING ENTITYThe Division was established in 1955 as the Division of Pensions to provide all administration of the state pension funds except investments. The Division changed its name to the Division of Pensions and Benefits in 1992to more accurately reflect its roles and responsibilities beyond the realm of pensions. Currently, the Divisionadministers one of the largest non-federal public benefits program in the nation, consisting of ten separate retirement systems, three supplemental retirement savings programs, a health benefits program for employees, retirees,and family members, and several other employee benefits programs. Over 802,154 members enjoy the benefits ofthe various pension systems administered by the Division, and over 851,000 lives are covered in the State HealthBenefits Program (SHBP) and the School Employees’ Health Benefits Program (SEHBP). In addition to the State,1,751 local public employers participate in the retirement systems, and 1,024 local employers participate in theSHBP and SEHBP.CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTINGThe Government Finance Officers Association of the United States and Canada (GFOA) recognized the Division’s CAFRof last year for Excellence in Financial Reporting. A copy of the Certificate of Achievement is included in this CAFR.MAJOR INITIATIVESThe Division continued to focus its technology improvement efforts in the area of customer service. As identifiedin our information technology planning process, we continued to empower our members and the employersthrough internet utilization by providing them with the tools necessary to initiate and process transactions on areal time interactive basis. As a result, during the past year the Division has allocated resources to the followingmajor initiatives:Dependent Eligibility Verification Audit (DEVA) of the State Health Benefits Program (SHBP) and SchoolEmployees’ Health Benefits Program (SEHBP) — The DEVA was completed in 3 Phases: Phase 1 for the StateGroup, Phase 2 for the Local Education Group, and Phase 3 for the Local Government Group. Approximately252,000 employee/retiree households with coverage for one or more dependents (approximately 450,000dependents) were asked to submit documentation in support of dependent eligibility. In the final analysis, anestimated 36,600 ineligible dependents — representing 8 percent of the SHBP/SEHBP dependent enrollment —were found. AON Hewitt, who conducted the audit for the State, estimates that the 5-year savings generated bythe resultant termination of coverage amounts to more than 400 million using conservative assumptions. Theactual savings may be greater.Pension and Health Benefit Reform — Chapters 1, 2, 3, and 31, P.L. 2010, which reformed pension and healthbenefits for public employees, were enacted and successfully implemented by the Division in 2010. These lawswere enacted to make the cost of providing pension and health benefits more affordable for the State and Localpublic employers, preserving the ability for public employers to continue to provide these vital benefits to public employees in future years. Cumulatively, these pension and health benefits reform laws will provide the Stateand Local employers annual pension and health benefit cost reductions in the initial year of 2.9 billion and 314million, respectively.Pharmacy Benefit Manager (PBM) — The Division issued a Request for Proposal (RFP) which resulted in anaward of the PBM contract to Medco Health Solutions effective January 1, 2010. The intent of the RFP was tocontract with a single vendor to manage the prescription drug benefits of members of the SHBP and SEHBP. Threevendors were administering the benefits prior to the award of this contract. It is expected that the SHBP/SEHBPwill save 558 million over previous costs over the next 5 years.12New Jersey Division of Pensions and Benefits
LETTER OF TRANSMITTALEliminating Paper Applications and Reports for Employers — The Division expanded its efforts to eliminatepaper-based processes and reporting from all of the State’s benefits programs. In the last fiscal period, theDivision introduced the Health Benefits Membership and Activity Reports and an online repository for HealthBenefits Invoices, eliminating the production and mailing of over 18,000 pages of paper reports monthly toemployers who participate with the SHBP and SEHBP. The Health Benefits applications join twenty three otherinquiry and e-form applications as part of the Employer Pension and Benefits Information Connection (EPIC).Through EPIC, employers have Internet access to member account information; receive payroll certifications;verify retirement status; submit pension fund enrollment forms for the majority of retirement system enrollees;and submit certifications for retirement, withdrawal, purchase applications, and employee deaths. Since theinception of EPIC there has been a steady increase in Web-based reporting versus paper-based reporting. Currently99 percent of our local employers report to the Division using EPIC applications and the Internet-based Reportof Contributions (I-ROC) application. In fiscal year 2011, our development will continue to create e-forms forhealth benefit enrollments.Expanded Member Benefits Online System (MBOS) Access — MBOS is an Internet-based system that allowsregistered members access to their pension and if applicable, health benefits account information without having to contact Division staff or visit the Division’s offices. Recent addition of MBOS applications for retirees allowsfor access to retirement account information, the secure change of address, and the status or update of directdeposit and State and federal income tax withholding information. The continued development of MBOS applications will have a direct impact on current work pr
2 New Jersey Division of Pensions and Benefits Programs administered by the NEW JERSEY DIVISION OF PENSIONS AND BENEFITS PERS Public Employees' Retirement System TPAF Teachers' Pension and Annuity Fund PFRS Police and Firemen's Retirement System SPRS State Police Retirement System JRS Judicial Retirement System DCR
Executive summary Pensions dashboards will allow consumers to see their pensions in one secure place online. Legislation and rules will introduce a legal requirement on pension providers to connect into the pensions dashboards ecosystem and make pensions
2016 NHDOT Division 400 Construction Manual Link to: Division 100 Division 200 Division 300 Division 400 Division 500 Division 600 Division 700 Division 800 Division 900 Master Table of Contents 400-6 The State's Asphalt Plant Inspector should visit the commercial plant operation or portable plant as soon as it is set up and ready to operate .
2016 NHDOT Division 600 Construction Manual Link to: Division 100 Division 200 Division 300 Division 400 Division 500 Division 600 Division 700 Division 800 Division 900 Master Table of Contents 600-6 The following table list design requirements for 3750-D RCP pipe. Design Requirements For Reinforced Concrete Pipe (3) .
2016 NHDOT Division 100 Construction Manual Link to: Division 100 Division 200 Division 300 Division 400 Division 500 Division 600 Division 700 Division 800 Division 900 Master Table of Contents 100-7 101.5 - INTRA- DEPARTMENTAL RELATIONS Harmonious working relations among all employees are essential to the efficient operation of the .
2016 NHDOT Division 700 Construction Manual Link to: Division 100 Division 200 Division 300 Division 400 Division 500 Division 600 Division 700 Division 800 Division 900 Master Table of Contents 700-5 Therefore, the inspector is obligated to know the following: Which materials must be sampled
2016 NHDOT Division 800 Construction Manual Link to: Division 100 Division 200 Division 300 Division 400 Division 500 Division 600 Division 700 Division 800 Division 900 Master Table of Contents 800-2 Speak with the right -of-way agent responsible for agreements made for the project.
2016 NHDOT Division 500 Construction Manual Link to: Division 100 Division 200 Division 300 Division 400 Division 500 Division 600 Division 700 Division 800 Division 900 Master Table of Contents 500-7 Care should be taken to drive the sheets well below the bottom elevation of the excavation (toe-in). The Contract Administrator can put a grade .
Grade 2 ELA Week of April 13-17, 2020 Day Skill Instructions Monday . There was a city park very close to their apartment. The park was really big. Maybe part of it could be turned into a park for dogs. Then Oscar s puppy would have a place to run! 4 Now Oscar needed to turn his idea into a plan. Oscar worked very hard. He wrote letters to newspapers. He wrote to the mayor about his idea for .
