New Jersey § 18a:66-188

§ 18a:66-188.

The alternate benefit programs shall provide an option for cash surrender upon separation from service. The cash surrender shall be applicable only to employee contributions and accumulations

prior to the participant's 55th birthday, and thereafter to the full amount of all

employee and employer contributions and accumulations. Additionally, a participant may borrow from his employee account accumulations up

to the amounts allowed under federal law while still employed. Employee and employer account accumulations shall be used to qualify for the amount

of a policy loan . In the event a participant in the alternate benefit program terminates his employment

for reasons other than retirement or disability and requests repurchase of his annuity

or annuities, such repurchase shall be allowed provided it meets the conditions under

which the insurer or mutual fund company will repurchase annuities automatically, and provided that the portion of the repurchase

value attributable to employer contributions made pursuant to this act shall be refunded

to the employer. The amendments to this section made by P.L.1993, c. 385 ( C. 18A:66-172.1 et al.) shall apply to all contributions made to a plan under the alternate benefit

program on or after the 90th day following the effective date of that P.L.1993, c. 385 . Any plan contributions invested in the College Retirement Equities Fund prior to

that date shall be fully subject to distribution as cash if those contributions shall

not have been annuitized prior to that 90th day. Any plan contributions invested in the Teachers Insurance and Annuity Association

prior to that 90th day shall become subject to distribution as cash to the maximum

extent permitted by the contract if those contributions shall not have been annuitized

prior to that 90th day.