11-K 1 a401kdec2019.htm 11-K DECEMBER 31, 2019 Document




UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 11-K

FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE,
SAVINGS AND SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


(Mark One)

[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2019

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to _______


COMMISSION FILE NUMBER 001-8359

NEW JERSEY RESOURCES CORPORATION
EMPLOYEES’ RETIREMENT SAVINGS PLAN


NEW JERSEY RESOURCES CORPORATION



1415 Wyckoff Road
Wall, New Jersey 07719










NEW JERSEY RESOURCES CORPORATION EMPLOYEES’ RETIREMENT SAVINGS PLAN


TABLE OF CONTENTS



Page
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Benefits
Statements of Changes in Net Assets Available for Benefits
Notes to Financial Statements4 - 12
SUPPLEMENTAL SCHEDULE
Form 5500, Schedule H, Part IV, Line 4i - Schedule of Assets (Held at End of Year)
SIGNATURES
EXHIBIT INDEX - 23.1 CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



All other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.


















i





REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustee and Participants of the
New Jersey Resources Corporation
Employees’ Retirement Savings Plan

Opinion on the Financial Statements
We have audited the accompanying statements of net assets available for benefits of the New Jersey Resources Corporation Employees’ Retirement Savings Plan (the Plan) as of December 31, 2019 and 2018, and the related statements of changes in net assets available for benefits for the years then ended and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2019 and 2018, and the changes in net assets available for benefits for the years then ended in the conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion
These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Supplemental Information
The supplemental information in the accompanying schedule of assets (held at end of year) as of December 31, 2019 has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental information is the responsibility of the Plan’s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.
/s/Baker Tilly Virchow Krause, LLP

We have served as the Plan’s auditors since 2006

Iselin, New Jersey
June 24, 2020
1


NEW JERSEY RESOURCES CORPORATION
EMPLOYEES’ RETIREMENT SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 2019 AND 2018
20192018
Assets:
Cash and cash equivalents$46,478  $—  
Investments, at fair value259,372,057  229,872,943  
Receivables:
Employer contributions1,632,645  1,294,993  
Participant contributions93,241  —  
Notes receivable from participants3,255,616  3,689,002  
Total receivables4,981,502  4,983,995  
Total Assets264,400,037  234,856,938  
Liabilities:—  —  
Net assets available for benefits$264,400,037  $234,856,938  






























The accompanying notes are an integral part of these financial statements.
2


NEW JERSEY RESOURCES CORPORATION
EMPLOYEES’ RETIREMENT SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018
20192018
Additions to net assets attributed to:
Investment income:
Dividends$10,634,456  $10,709,525  
Net appreciation (depreciation) in fair value of investments22,328,439  (8,192,047) 
Net investment income32,962,895  2,517,478  
Interest income from notes receivable from participants174,324  190,374  
Contributions:
Employer5,797,223  5,662,100  
Participants10,551,305  9,228,988  
Participant rollovers745,526  921,856  
Total contributions17,094,054  15,812,944  
Total additions50,231,273  18,520,796  
Deductions from net assets attributed to:
Benefits paid to participants20,579,655  12,864,760  
Administrative fees108,519  184,161  
Total deductions20,688,174  13,048,921  
Net increase29,543,099  5,471,875  
Net assets available for benefits:
Beginning of year234,856,938  229,385,063  
End of year$264,400,037  $234,856,938  














The accompanying notes are an integral part of these financial statements.
3

NEW JERSEY RESOURCES CORPORATION
EMPLOYEES’ RETIREMENT SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS

1. PLAN DESCRIPTION

The New Jersey Resources Corporation Employees’ Retirement Savings Plan (the Plan) is administered through a Benefits Administration Committee (the Plan Administrator) appointed by New Jersey Resources Corporation’s (the Company, NJR or the Sponsor) Board of Directors and is administered in accordance with the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), as amended.

The following description of the Plan is provided for general information only. Participants should refer to the Plan document for more complete information.

The Plan is a defined contribution plan. The Plan provides a savings component and had provided an employee stock ownership plan component, as described below.

Subsequent events

The plan has evaluated subsequent events for recognition or disclosure through June 24, 2020, the date the financial
statements were available to be issued.

Savings Component

General

The savings component provides for deferred pre-tax contributions, after-tax contributions, catch-up contributions, an employer special contribution and Company matching contributions.

All permanent employees of the Company and its subsidiaries who have completed 30 days of service are eligible to participate on a voluntary basis. Eligible employees are automatically enrolled in the plan and their pre-tax contributions are automatically escalated each year up to 6 percent. Payroll deductions begin with the first available pay period following the completion of 30 days of service, unless the employee elects not to participate.

Contributions and Vesting

As directed by the Plan Administrator, contributions by employees and the Company are transferred to T. Rowe Price (the Trustee) and held in the Plan’s trust fund for investment and allocation to participants’ accounts.

Employee Contributions

Under the savings component, eligible employees may make contributions of between 1 percent and 75 percent of base compensation, as defined in the Plan document, which shall be permitted as either pre-tax or after-tax contributions provided that they are within the calendar year elective deferral limit in effect for 401(k) contributions in accordance with the Internal Revenue Code (IRC). The elective deferral limit for pre-tax contributions was $19,000 and $18,500 for 2019 and 2018, respectively. In addition, employees who have both reached the minimum age of 50 and the elective deferral limit by the end of the plan year, may elect to make pre-tax non-matchable catch-up contributions. During the plan years ended December 31, 2019 and 2018, the Internal Revenue Service allowed catch-up contributions of up to $6,000. The total contribution for any participant may not exceed $56,000 for 2019 and $55,000 for 2018, except for those who have attained age 50, and then the total contribution by participant may not exceed $62,000 and $61,000, respectively. Contributions by employees are made primarily through payroll deductions. The Plan also accepts qualified roll-over contributions from eligible employees.

Employer Matching Contributions

For 2019 and 2018, the Company contributed an amount equal to 75 percent and 65 percent, respectively, of the first 6 percent of the pre-tax and/or after-tax participant contributions, subject to certain exceptions as described in the Plan document. The Company’s contribution related to those employees was approximately $4 million and $3.3 million for 2019 and 2018, respectively.
4

Employer Special Contributions

Non-transitioned union employees of NJR Home Services, an affiliated company, all union employees hired on or after January 1, 2012, and all non-represented employees hired on or after October 1, 2009, are not covered by the Company’s defined benefit plans. For these employees, the Company contributes an amount equal to 3.5 percent of base compensation for employees with less than five years but more than one year of service and 4.5 percent of base compensation for employees with five or more years of service. Eligibility begins after one year of employment, and the contribution is made by March 31 of the year following the completion of one year of employment. The Company contributed $585,735 and $487,834 related to the represented employees and $1,016,437 and $807,159 related to the non-represented employees for 2019 and 2018, respectively.

The employer special contribution for the non-transitioned union employees of NJR Home Services is invested automatically into the Plan’s Stable Value Fund, and may subsequently be directed by the participant into the Plan’s qualified default investment. The annual contribution for all other eligible employees is invested consistent with the employee’s current investment fund election or automatically into the Plan’s default investment and may subsequently be directed by the participant into any of the other investment options available under the Plan. The Plan’s default investments are various T. Rowe Price Retirement Year Funds, which are based on the participants’ year of birth.

In March 2018, the Company made a special per capita contribution of $1 million to the Plan for active employees hired on or before March 5, 2018. This contribution was made due to an amendment to the Plan, effective January 1, 2018, which allows for a special per capita contribution for any plan year in any amount determined by the Company. In February 2019, the Company made a special per capita contribution of $1,500 to each represented employee not covered by the Company’s defined benefit plans, totaling $189,000.

Employer special contributions are not eligible for loans or in-service withdrawals and may only be distributed upon termination, retirement or death.

Vesting

Employer matching and special contributions vest on the basis of service as follows: 25 percent after two years, 50 percent after three years, 75 percent after four years, and 100 percent after five years. Contributions are subject to limitations. Employee contributions vest at 100 percent when made.

Subsequent Events

Effective January 1, 2020, the Employer Matching Contributions increased to 80 percent of the first 6 percent of the pre-tax and/or after-tax participant contributions, subject to certain exceptions. Effective January 1, 2021, the Employer Matching Contributions will increase to 85 percent of the first 6 percent of the pre-tax and/or after-tax participant contributions, subject to certain exceptions.

In March 2020, COVID-19 was declared a pandemic by the World Health Organization and the Centers for Disease Control and Prevention and has spread globally, including throughout the United States. The rapidly developing pandemic has generated significant uncertainty in the global economy and volatility in financial markets. The COVID-19 pandemic has affected and may continue to affect the market price of Plan assets. Due to the ongoing economic uncertainty and volatility caused by COVID-19, the resulting financial impact to the Plan cannot be reasonably estimated.

On March 27, 2020, the United States Federal government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act allows eligible plan participants to request penalty-free distributions of up to $100,000 before December 31, 2020, for qualifying reasons associated with the COVID-19 pandemic, permits increasing the limit for plan loans, permits suspension of loan payments due for up to one year, and permits individuals to stop and/or defer receiving 2020 required minimum distributions.

Payment of Benefits

Prior to retirement or termination of service with the Company, participants may withdraw their contributions from the Plan subject to certain limitations. Participants may not withdraw the Company’s contributions until they become vested. Withdrawal of participants’ pre-tax funds may generally be made only upon disability, hardship or the attainment of age 59-1/2.

5

Distributions made upon retirement or death may be made either in a lump sum or in equal installments over a period not to exceed five years. All other distributions are made in a lump sum payment.

Notes Receivable from Participants

The Plan may loan to a participant an amount that shall not exceed the lesser of 50 percent of the value of the vested portion of such participant’s account, or $50,000. The minimum participant loan must be $1,000. Effective July 1, 2018, participants may only have one outstanding loan at a time. Any participants that had two loans as of July 1, 2018, were able to continue with both loans until paid off. No loan shall be for a term of more than five years except for loans used to acquire the participant’s principal residence, which term shall not exceed ten years. The loans are secured by the balance in the participant’s account. Notes receivable from participants are valued at their principal balance plus accrued unpaid interest.

Principal and interest are paid ratably through payroll deductions. A participant may repay any such loan in full by check at any time in accordance with such rules as may be prescribed by the Plan Administrator. Payments of principal and interest on loans shall be credited to the participant’s account(s) from which the loan was funded and shall be reinvested in investment funds in accordance with the participant’s then current investment selection.

The interest rate for loans will be 1 percent above the prime rate reported in the Wall Street Journal or such other rate as is prescribed by the Plan Administrator based on periodic re-evaluations of the adequacy of such rate. The fixed rate of interest shall apply to the term of each loan. Interest rates ranged from 4.25 percent to 6.50 percent at December 31, 2019.

Participant Accounts

Individual accounts are maintained for each plan participant. Each participant’s account is credited with the participant’s contribution, Company’s matching contribution, employer special contributions, loan repayments, if applicable, and plan earnings, and charged with withdrawals and an allocation of plan losses and administrative expenses that are paid by the Plan. Allocations are based on participant earnings or account balances, or specific participant transactions, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.

Investments

Participants direct the investment of their contributions into various investment options offered by the Plan. Except as previously noted, Company contributions are invested at the same percentage in the same investment options as the participant directed investments, including NJR stock. The Plan currently offers various investment options for participants.

Forfeited Accounts

Forfeitures are used to reduce Company contributions. At December 31, 2019 and 2018, forfeited non-vested accounts balance totaled $22,374 and $9,582, respectively. During the years ended December 31, 2019 and 2018, Company contributions were reduced by $49,181 and $32,604, respectively, from forfeited, non-vested accounts.

Employee Stock Ownership Plan Component (ESOP)

General

The Plan’s ESOP, which is no longer available for participant contributions effective January 1, 1996, includes amounts held by the Plan Trustee in Company stock (NJR Common Stock). All participants’ respective shares of NJR Common Stock are 100 percent vested.

Payment of Benefits/Diversification

Distributions to ESOP participants may be made in the case of separation of service, and may be in the form of full shares of the Company’s common stock and cash in lieu of fractional shares. ESOP participants may also elect to receive their total distribution in cash. Effective January 1, 2006, ESOP participants were able to diversify all or part of their account balance into any of the other 401(k) plan investment options, including NJR Common Stock. If and
6

when the participants make a transfer, they will be able to use these amounts for the allowable in-service withdrawals or participant loans.

Certain participants have the option to withdraw a portion of their ESOP accounts once a year after reaching age 55 and ten years of participation in the plan. This withdrawal option is offered annually to eligible participants until they reach age 59½.

In the event that a participant or beneficiary receives a distribution of shares of Company stock at a time when such Company stock is not readily tradable on an established market, then the following provisions shall apply:
The Company shall issue a “put option” to such participant or beneficiary. The put option shall provide the right to elect, at any time during the 60 day period following the date of such distribution or the first 60 days of the plan year immediately following the plan year in which the distribution is made, to sell such Company stock to the Company for an amount equal to the fair market value of such Company stock as of the most recent valuation date. The put option provision applies to both the ESOP and the NJR 401k stock.

Voting Rights

Each participant shall have the right, to the extent of the Company stock allocated to their accounts, to direct the Trustee by proxy, as to the manner in which to vote their shares on all matters shareholders of Company stock are entitled to vote. Best efforts must be utilized to distribute or cause to be distributed to each participant such information and proxy statements as will be distributed to shareholders of the Company. Unallocated shares of common stock, if any, held by the Trustee shall be voted by the Trustee in the same manner and in the same proportion as are those shares that are allocated to the accounts of the participants and the Trustee shall have no discretion in this matter. The Trustee shall not divulge to the Company the voting of any participant. The voting rights provision applies to both the ESOP and the NJR 401k stock. There were no unallocated NJR common stock shares as of December 31, 2019 and 2018.

Investment Income

The following amounts related to the ESOP were included in dividend income and net (depreciation) appreciation in fair value of investments, respectively, for the years ended December 31:
20192018
Dividend income$951,747  $975,148  
Net (depreciation) appreciation in fair value of investments$(575,221) $4,789,844  
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The accompanying financial statements have been prepared on the accrual basis of accounting.

Valuation of Investments and Income Recognition

The Plan’s investments are presented at fair value, which has been determined based on quoted market prices. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Note 3 for discussion of fair value measurements.

Purchases and sales of securities are recorded on a trade date basis. Dividend income is recorded on the ex-dividend date; interest income is recorded as earned. Net appreciation (depreciation) includes gains and losses on investments bought and sold as well as held during the year.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and changes therein and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.
7


Administrative Expenses

Administrative expenses of the Plan are paid for by the Plan to the extent that they are not paid for by the Company.

In determining the amount of administrative expenses incurred by the Plan, T. Rowe Price provides the Plan with a fixed annual administrative budget that is measured by the rate of administrative fee payments for certain plan investment options. T. Rowe Price credits the Plan's Administrative Budget after each calendar quarter for administrative fee payments that exceed the established fee threshold, as defined. To the extent that the administrative fee payments payable to T. Rowe Price for any quarter do not meet the fixed annual administrative budget amount, the difference is owed to T. Rowe Price by the Plan and/or Plan Sponsor.

For the plan years 2019 and 2018, T. Rowe Price contributed $105,808 and $96,244, respectively, to the Plan’s administrative budget account. During the year ended December 31, 2019 and 2018, the Plan used $82,826 and $160,142, respectively, of the administrative budget to off-set Plan expenses. As of December 31, 2019 and 2018, the balances of the administrative budget accounts were $51,646 and $28,147, respectively.

Payment of Benefits

Benefit payments to participants are recorded when paid.

3. FAIR VALUE MEASUREMENTS

The Plan measures its investments at fair value on a recurring basis in accordance with accounting principles generally accepted in the United States of America. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The framework that the authoritative guidance establishes for measuring fair value includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs used in determining valuations into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement.

The levels of the fair value hierarchy are as follows:
Level 1Fair value is based on unadjusted quoted prices in active markets that are accessible to the Plan for identical assets. These generally provide the most reliable evidence and are used to measure fair value whenever available.
Level 2Fair value is based on significant inputs, other than Level 1 inputs, that are observable either directly or indirectly for substantially the full term of the asset through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets or liabilities, quoted market prices in inactive markets for identical or similar assets, and other observable inputs.
Level 3Fair value would be based on significant unobservable inputs.

Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2019 and 2018.

Mutual Funds

The Plan’s mutual funds are open-ended public investment vehicles, consisting of equity or fixed income securities. Mutual funds are valued at quoted market prices in active markets at year end. These investments are categorized within Level 1 of the hierarchy.

Stable Value Fund

Investments in common collective trusts during the plan year included the T. Rowe Price Stable Value fund (Stable Value Fund). Net Asset Value (NAV) per share for the Stable Value Fund is provided by the fund administrator and is based on the value of the underlying assets owned by the fund, minus liabilities, and then divided by the number of shares outstanding. NAV is computed daily as of the close of business each day by the Trustee for the fund. NAV is used as a practical expedient to estimate fair value. Participants’ withdrawals are
8

unrestricted and are permitted daily at unit value. A full redemption of the Stable Value Fund by the Plan Sponsor may be subject to a holding period if sufficient liquidity does not exist.

NJR Stock

Participants can direct their contributions into NJR stock. In addition, as noted above, the Plan’s ESOP holds NJR stock. NJR Stock shares, which are valued at quoted market prices in active markets at year end, are categorized within Level 1 of the hierarchy.

The following tables summarize instruments measured at fair value on a recurring basis for the Plan:
Quoted Market Prices in Active Markets for Identical AssetsOther Significant Observable InputsSignificant Unobservable Inputs
(Level 1)(Level 2)(Level 3)Total
As of December 31, 2019:
Mutual funds$159,563,930  —  —  $159,563,930  
NJR stock71,812,964  —  —  71,812,964  
Total assets in the fair value hierarchy$231,376,894  —  —  231,376,894  
Investments measured at net asset value (1)
27,995,163  
Total investments at fair value$259,372,057  
As of December 31, 2018:
Mutual funds$125,588,245  —  —  $125,588,245  
NJR stock76,886,749  —  —  76,886,749  
Total assets in the fair value hierarchy$202,474,994  —  —  202,474,994  
Investments measured at net asset value (1)
27,397,949  
Total investments at fair value$229,872,943  
(1) Certain investments that were measured at net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the line items presented in the Statements of Net Assets Available for Benefits.

During the years ended December 31, 2019 and 2018, there were no transfers between levels.

The following table summarizes investments for which fair value is measured using NAV per share practical expedient as of December 31, 2019 and 2018, respectively. There are no participant redemption restrictions for these investments; the redemption notice period is applicable only to the Plan.
Fair ValueUnfunded CommitmentsRedemption Frequency (if Currently Eligible)Redemption Notice Period
As of December 31, 2019:
Stable Value Fund$27,995,163  n/aDaily12 months
As of December 31, 2018:
Stable Value Fund$27,397,949  n/aDaily12 months

4. INVESTMENTS

The Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in value by approximately $22.3 million and depreciated in value by approximately $8.2 million during the years ended December 31, 2019 and 2018, respectively.

9

Non-Participant Directed Investments

Information about the net assets at fair value and the significant components of the changes in net assets relating to the non-participant-directed investments as of December 31, 2019 and 2018, and for the years then ended is as follows:
Net assets:20192018
NJR Common Stock ESOP$32,924,316  $37,766,517  
T. Rowe Price Stable Value Fund—  1,912,323  
T. Rowe Price Retirement Year Funds2,532,020  1,739,567  
Total non-participant directed investments$35,456,336  $41,418,407  
Changes in net assets:
NJR Common Stock ESOP
Dividend income$951,747  $975,148  
Net (depreciation) appreciation in fair value of investments(575,221) 4,789,844  
Benefits paid to participants(4,524,455) (3,109,052) 
Transfers to participant-directed investments(694,272) (1,557,827) 
Net change(4,842,201) 1,098,113  
NJR Common Stock ESOP - beginning of year37,766,517  36,668,404  
NJR Common Stock ESOP - end of year$32,924,316  $37,766,517  

T. Rowe Price Stable Value Fund
Net appreciation in fair value of investments$13,792  $38,907  
Employer contributions233,790  385,560  
Transfers to participant-directed investments(2,109,097) —  
Benefits paid to participants(50,739) (139,895) 
Administrative expenses(69) (79) 
Net change(1,912,323) 284,493  
T. Rowe Price Stable Value Fund - beginning of year1,912,323  1,627,830  
T. Rowe Price Stable Value Fund - end of year$—  $1,912,323  
T. Rowe Price Retirement Year Funds
Net appreciation (depreciation) in fair value of investments$446,984  $(131,765) 
Employer contributions499,927  573,064  
Transfers to participant-directed investments(50,667) (51,151) 
Benefits paid to participants(103,774) (22,914) 
Administrative expenses(17) (7) 
Net change792,453  367,227  
T. Rowe Price Retirement Year Funds - beginning of year1,739,567  1,372,340  
T. Rowe Price Retirement Year Funds - end of year$2,532,020  $1,739,567  

5. FEDERAL INCOME TAX STATUS

The Internal Revenue Service (IRS) has determined and informed the Company by a letter dated December 18, 2013, that the Plan and related trust were designed as “qualified” in accordance with the applicable sections of the IRC. Although the Plan has been amended since the receipt of the determination letter, the Plan Administrator and the Plan’s tax counsel believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC, and that the Plan and the related trust continue to be tax-exempt.

Accounting principles generally accepted in the United States of America require plan management to evaluate tax positions taken by the Plan and recognize a tax liability if the organization has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.


10

6. RISKS AND UNCERTAINTIES

The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the Statements of Net Assets Available for Benefit. As of December 31, 2019 and 2018, the Plan had approximately $99.8 million and $104.3 million, respectively, that was concentrated in two investments.

7. PLAN TERMINATION

Although it has not expressed any intention to do so, the Company has the right under the Plan to discontinue its matching contributions, as well as the special contributions, at any time and to terminate the Plan subject to the provisions set forth in ERISA. In the event that the Plan is terminated, participants would become 100 percent vested in their accounts, including unvested Company contributions.

8. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500

The financial statements have been prepared on the accrual basis in conformity with accounting principles generally accepted in the United States of America. The Form 5500 is presented on the cash basis.

The following are reconciliations of net assets available for benefits and increase in net assets per the financial statements to the Form 5500 for the years ended December 31:
20192018
Net assets available for benefits per the financial statements$264,400,037  $234,856,938  
Less: Amounts due from employer per the financial statements(1,632,645) (1,294,993) 
Less: Amounts due from participants per the financial statements(93,241) —  
Net assets available for benefits per Form 5500$262,674,151  $233,561,945  
Contributions received from employer per the financial statements$5,797,223  $5,662,100  
Less: Current year contributions receivable from employer per the financial statements(1,632,645) (1,294,993) 
Add: Prior year contributions receivable from employer per the financial statements1,294,993  958,624  
Contributions received from employer per Form 5500$5,459,571  $5,325,731  
Contributions received from participants per the financial statements$10,551,305  $9,228,988  
Less: Current year contributions receivable from participants per the financial statements(93,241) —  
Add: Prior year contributions receivable from participants per the financial statements—  4,905  
Contributions received from participants per Form 5500$10,458,064  $9,233,893  
Increase in net assets per the financial statements$29,543,099  $5,471,875  
Less: Changes in amounts due from employer*(337,652) (336,369) 
Less: Changes in amounts due from participants**(93,241) 4,905  
Net income per Form 5500$29,112,206  $5,140,411  
* Included in contributions from employer in Statements of Changes in Net Assets Available for Benefits..
** Included in contributions from participants in Statements of Changes in Net Assets Available for Benefits.


11

9. EXEMPT PARTY-IN-INTEREST TRANSACTIONS

Certain plan investments are shares of mutual funds managed by the Trustee of the Plan. T. Rowe Price is the Plan Trustee and certain plan assets are invested in the T. Rowe Price Common Trust Funds. The Plan also issues loans to participants, which are secured by the participants’ account balance. These transactions qualify as exempt party-in-interest transactions. Fees paid by the Plan to the Trustees amounted to $108,519 and $184,161 for the years ended December 31, 2019 and 2018, respectively.

At December 31, 2019 and 2018, the Plan held 1,611,240 and 1,683,529 shares of NJR Stock, respectively, with a fair value of approximately $71.8 million and $76.9 million, respectively. The Plan recorded dividend income from Company common stock of approximately $2 million and $1.9 million during the years ended December 31, 2019 and 2018, respectively.

Certain employees and officers of the Company, who may also be participants in the Plan, perform administrative services to the Plan at no cost to the Plan. These party-in-interest transactions are not deemed prohibited because they are covered by statutory or administrative exemptions from the IRC and ERISA’s rules on prohibited transactions.
12


NEW JERSEY RESOURCES CORPORATIONPlan Number 005
EMPLOYEES’ RETIREMENT SAVINGS PLANTax ID Number 22-2376465
FORM 5500, SCHEDULE H, PART IV, LINE 4i---
SCHEDULE OF ASSETS (HELD AT END OF YEAR)
AS OF DECEMBER 31, 2019
(a)(b)(c)(d)(e)
Identity of Issue, Borrower,
Lessor, or Similar Party		Description of Investment, Including Maturity Date, Rate of Interest, Collateral, and Par or Maturity ValueCostCurrent Value
Participant Directed:
*T. Rowe Price Retirement 2005 FundMutual Fund$ **668,860  
*T. Rowe Price Retirement 2010 FundMutual Fund                   **430,836  
*T. Rowe Price Retirement 2015 FundMutual Fund**1,723,954  
*T. Rowe Price Retirement 2020 FundMutual Fund**5,963,600  
*T. Rowe Price Retirement 2025 FundMutual Fund**10,053,578  
*T. Rowe Price Retirement 2030 FundMutual Fund**11,345,485  
*T. Rowe Price Retirement 2035 FundMutual Fund**7,998,778  
*T. Rowe Price Retirement 2040 FundMutual Fund**4,675,347  
*T. Rowe Price Retirement 2045 FundMutual Fund**4,407,847  
*T. Rowe Price Retirement 2050 FundMutual Fund**2,991,797  
*T. Rowe Price Retirement 2055 FundMutual Fund**1,965,961  
*T. Rowe Price Retirement 2060 FundMutual Fund**655,280  
*T. Rowe Price Government Money FundMutual Fund**124,761  
Prudential Total Return Bond Fund Class QMutual Fund**9,621,752  
Harbor Capital Appreciation FundMutual Fund**12,239,252  
*T. Rowe Price Stable Value FundCommon Trust Fund**27,995,163  
Vanguard Institutional IndexMutual Fund**24,472,941  
Vanguard Small Cap Index, AdmiralMutual Fund**9,534,434  
Vanguard Windsor II FundMutual Fund**17,840,385  
*T. Rowe Price Small Cap Value FundMutual Fund**8,303,694  
American Funds Capital World Growth and Income FundMutual Fund**13,331,206  
Dodge & Cox International Stock FundMutual Fund**8,682,162  
*NJR Common Stock 401(k)Common Stock**38,888,648  
Non-Participant Directed:
*NJR Common Stock ESOPCommon Stock19,359,498  32,924,316  
*T. Rowe Price Retirement 2010 FundMutual Fund12,720  12,816  
*T. Rowe Price Retirement 2015 FundMutual Fund27,603  28,640  
*T. Rowe Price Retirement 2020 FundMutual Fund100,844  106,533  
*T. Rowe Price Retirement 2025 FundMutual Fund331,262  364,024  
*T. Rowe Price Retirement 2030 FundMutual Fund582,298  643,352  
*T. Rowe Price Retirement 2035 FundMutual Fund360,486  400,184  
*T. Rowe Price Retirement 2040 FundMutual Fund219,338  239,740  
*T. Rowe Price Retirement 2045 FundMutual Fund288,185  313,211  
*T. Rowe Price Retirement 2050 FundMutual Fund195,365  213,888  
*T. Rowe Price Retirement 2055 FundMutual Fund171,080  187,835  
*T. Rowe Price Retirement 2060 FundMutual Fund20,417  21,797  
*Notes receivable from participantsInterest rates of 4.25% - 6.50%—  3,255,616  
$21,669,096  $262,627,673  
* Party-in-interest as defined by ERISA.
** Cost information is not required for participant-directed investment and, therefore, is not included.
13

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized.



New Jersey Resources Service Corporation
Employees’ Retirement Savings Plan



Date: June 24, 2020

By: /s/ Amanda Mullan
Amanda Mullan
Plan Administrator
/s/ Patrick Migliaccio
Patrick Migliaccio
Plan Sponsor

14

EXHIBIT INDEX

Exhibit Number

15