The Supplemental Annuity Collective Trust of New Jersey (SACT) is a voluntary investment program that provides retirement income separate from, and in addition to, your employees basic TPAF / PERS pension plan. There are two (2) options employees can select when participating in the SACT program:
- The SACT Regular Plan allows contributions in whole percentages beginning at one percent of your employee's base salary. The maximum contribution allowable falls under the IRS limits and includes Pension 414(h) contributions. Although contributions to the regular plan are after-tax contributions, accumulated earnings are deferred from federal tax until withdrawn.
- The SACT Tax-Sheltered Plan allows contributions in whole percentages beginning at one percent of your employee's compensation (base salary minus pension contribution). The maximum contribution allowable is the prevailing IRS maximum for all 403(b) plans. Contributions are excluded from income for federal income tax purposes.
Recommended Deduction Settings for each Option:
(District MUST ensure the setting meet the Districts understanding of the program)
The SACT Regular Plan
The SACT Tax-Sheltered Plan
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