Effective July 13, 2020, the New Jersey Division of Pensions and Benefits adopted provisions of the federal CARES Act which allows a “qualified individual” to request the suspension of pension loan repayments until December 31, 2020.
A “qualified individual” is an active or retired member of the PERS or PFRS pension plan who:
- Is diagnosed with COVID-19 by a test approved by the Centers for Disease Control and Prevention; or
- Has a spouse or dependent diagnosed with COVID-19 by a test approved by the Centers for Disease Control and Prevention; or
- Experiences adverse financial consequences as a result of (i) being quarantined, furloughed, laid off; or having work hours reduced due to COVID-19; (ii) being unable to work due to lack of child care due to COVID-19; (iii) being unable to work due to closing or reduced hours of a business owned or operated by the individual due to COVID-19; or (iv) other factors as determined by the Secretary of the Treasury.
If suspended, loan repayments will be delayed through December 31, 2020, interest will continue to accrue on the outstanding loan balance, and you will not be eligible to take an additional loan for the duration of the suspension. At the end of the suspension period, the loan balance will be recertified to include accrued interest, the loan repayments will resume on a revised schedule effective January 2021. Please be advised that the repayment amount may increase in accordance with federal guidelines.
If you meet the definition of a “qualified individual” and wish to request the suspension of loan repayments under the CARES Act, please complete and submit Request for Suspension of Loan Repayment Under the CARES Act – Active Employees form to the NJ Division of Pensions and Benefits as indicated.