New Jersey § 17:12b-51

§ 17:12b-51.

Without limiting the generality of the type of pension plan or plans a State association

may adopt, a pension plan adopted may provide for: (a) a fund accumulated from income of the State association or set aside from the

undivided profits account of the State association, out of which pension payments

may be paid directly or which may be used in whole or in part for the purchase of

annuity or insurance contracts, or both; and to which officers and employees may

make contributions; or (b) the purchase of group annuity or group insurance contracts, or both, the premiums

upon which may be paid in full by the State association, or in part by the State association

and in part by its officers and employees, as the board may from time to time determine;

or (c) a trust fund or funds accumulated or set aside and administered by trustees designated

by the State association out of which pension payments may be paid directly or which

may be used to purchase annuity or insurance contracts in whole or in part. A plan providing for such a trust fund or funds may also provide for the purchase

of life insurance contracts providing death benefits for participants in the plan

subject to the limitations of this act; or (d) such other plan or plans as may be approved by the commissioner, subject to the

limitations and conditions set forth in this act. Such plan or plans must provide that the total obligation or liability of the State

association as to each participant: (1) is stated in said plan, or is determinable from said plan, (2) is fully funded at the commencement of said plan or plans, or is funded as it

accrues, or (3) is limited to the amount funded. In the case of an insured association, that portion of the total obligation or liability

of such association to each participant, which has not been fully funded, shall automatically

terminate in the event of default as defined in Title IV of the National Housing Act. 1 1

12 U.S.C.A. § 1724.