New Jersey § 43:15a-34

§ 43:15a-34.

Any member who has at least 3 years of service to his credit for which he has contributed

as a member may borrow from the retirement system, an amount equal to not more than

50% of the amount of his accumulated deductions, but not less than $50.00; provided,

that the amount so borrowed, together with interest thereon, can be repaid by additional

deductions from compensation, not in excess of 25% of the member's compensation, made

at the same time compensation is paid to the member. The amount so borrowed, together with interest on any unpaid balance thereof, shall be repaid to the retirement system in equal

installments by deduction from the compensation of the member at the time the compensation

is paid or in such lump sum amount to repay the balance of the loan but such installments

shall be at least equal to the member's rate of contribution to the retirement system

and at least sufficient to repay the amount borrowed with interest thereon. Not more than two loans may be granted to any member in any calendar year. Notwithstanding any other law affecting the salary or compensation of any person

or persons to whom this act applies or shall apply, the additional deductions required

to repay the loan shall be made. The rate of interest for a loan requested by a member prior to the effective date

of P.L.2007, c. 92 ( C.43:15C-1 et al.) shall be 4% per annum on any unpaid balance thereof. For a loan requested after the effective date of that act, the rate of interest

per annum shall be a commercially reasonable rate as required by the Internal Revenue

Code to be determined by the State Treasurer on that effective date, and on January

1 of each calendar year thereafter. An administrative fee in an amount set by the State Treasurer for each calendar

year may be charged for any loan requested after the effective date of P.L.2007, c. 92 ( C.43:15C-1 et al.). Loans shall be made to a member from his accumulated deductions. The interest earned on such loans shall be treated in the same manner as interest

earned from investments of the retirement system.