New Jersey § 43:21-7

§ 43:21-7.

(a) Notwithstanding any other provisions of the “unemployment compensation law” for

the payment of contributions, benefits paid to individuals based upon wages earned

in the employ of any governmental entity or instrumentality which is an employer defined

under R.S.43:21-19(h)(5) shall, to the extent that such benefits are chargeable to the account of such governmental

entity or instrumentality in accordance with the provisions of R.S.43:21-1 et seq. , be financed by payments in lieu of contributions. (b) Any governmental entity or instrumentality may, as an alternative to financing

benefits by payments in lieu of contributions, elect to pay contributions beginning

with the date on which its subjectivity begins by filing written notice of its election

with the department no later than 120 days after such subjectivity begins, provided

that such election shall be effective for at least two full calendar years; or it

may elect to pay contributions for a period of not less than two calendar years beginning

January 1 of any year if written notice of such election is filed with the department

not later than February 1 of such year; provided, further, that such governmental

entity or instrumentality shall remain liable for payments in lieu of contributions

with respect to all benefits paid based on base year wages earned in the employ of

such entity or instrumentality in the period during which it financed its benefits

by payments in lieu of contributions. (c) Any governmental entity or instrumentality may terminate its election to pay contributions

as of January 1 of any year by filing written notice not later than February 1 of

any year with respect to which termination is to become effective. It may not revert to a contributions method of financing for at least two full calendar

years after such termination. (d) Any governmental entity or instrumentality electing the option for contributions

financing shall report and pay contributions in accordance with the provisions of R.S.43:21-7 except that, notwithstanding the provisions of that section, the contribution rate

for such governmental entity or instrumentality shall be 1% for the entire calendar

year 1978 and the contribution rate for any subsequent calendar years shall be the

rate established for governmental entities or instrumentalities under subsection (e)

of this section. (e) On or before September 1 of each year, the Commissioner of Labor shall review

the composite benefit cost experience of all governmental entities and instrumentalities

electing to pay contributions and, on the basis of that experience, establish the

contribution rate for the next following calendar year which can be expected to yield

sufficient revenue in combination with worker contributions to equal or exceed the

projected costs for that calendar year. (f) Any covered governmental entity or instrumentality electing to pay contributions

shall each year appropriate, out of its general funds, moneys to pay the projected

costs of benefits at the rate determined under subsection (e) of this section. These funds shall be held in a trust fund maintained by the governmental entity

for this purpose. Any surplus remaining in this trust fund may be retained in reserve for payment

of benefit costs for subsequent years either by contributions or payments in lieu

of contributions. (g) Any governmental entity or instrumentality electing to finance benefit costs with

payments in lieu of contributions shall pay into the fund an amount equal to all benefit

costs for which it is liable pursuant to the provisions of the “unemployment compensation

law.” Each subject governmental entity or instrumentality shall require payments from its

workers in the same manner and amount as prescribed under R.S.43:21-7(d) for governmental entities and instrumentalities financing their benefit costs with

contributions. No such payment shall be used for a purpose other than to meet the benefits liability

of such governmental entity or instrumentality. In addition, each subject governmental entity or instrumentality shall appropriate

out of its general funds sufficient moneys which, in addition to any worker payments

it requires, are necessary to pay its annual benefit costs estimated on the basis

of its past benefit cost experience; provided that for its first year of coverage,

its benefit costs shall be deemed to require an appropriation equal to 1% of the projected

total of its taxable wages for the year. These appropriated moneys and worker payments shall be held in a trust fund maintained

by the governmental entity or instrumentality for this purpose. Any surplus remaining in this trust fund shall be retained in reserve for payment

of benefit costs in subsequent years. If a governmental entity or instrumentality requires its workers to make payments

as authorized herein, such workers shall not be subject to the contributions required

in R.S.43:21-7(d) . (h) Notwithstanding the provisions of the above subsection (g), commencing July 1,

1986 worker contributions to the unemployment trust fund with respect to wages paid

by any governmental entity or instrumentality electing or required to make payments

in lieu of contributions, including the State of New Jersey, shall be made in accordance

with the provisions of R.S.43:21-7(d)(1)(C) or R.S.43:21-7(d)(1)(D) , as applicable, and, in addition, each governmental entity or instrumentality electing

or required to make payments in lieu of contributions shall, except during the period

starting January 1, 1993 and ending December 31, 1995 and the period starting April

1, 1996 and ending December 31, 1998, require payments from its workers at the following

rates of wages paid, which amounts are to be held in the trust fund maintained by

the governmental entity or instrumentality for payment of benefit costs: for the

calendar year 1999, 0. 05%; for each calendar year from 2000 to 2002, and the period from January 1, 2003 to June 30, 2004 , 0.10%; and each fiscal year thereafter, 0.30%.