Eligibility
Enrollment
in PFRS is limited to full-time, permanent firefighters and police officers who
hold an approved job title or whose position has been approved by the Board of
Trustees of the Police and Firemen's Retirement System. Click here for a listing
of PFRS approved job titles as of January 2004.
J-1
and F-1 visa holders are eligible for membership in the PFRS if they meet the
general eligibility criteria expained above.
Training Requirements for PFRS Eligibility and Enrollment
To be eligible for participation in PFRS, a position must meet the statutory definition of a “police officer” or “firefighter,” including the mandate that a candidate for a PFRS position must successfully complete specific training requirements (As prescribed in N.J.S.A. 43:16A-1 and 52:17B-66 et seq. for police positions; and in N.J.S.A. 43:16A-1 and 52:17B-66 et seq. for firefighter positions)
All police officers enrolled in the PFRS must be certified in the basic training course for police officers as prescribed by the Police Training Commission (PTC).
Similarly, firefighters enrolled in the PFRS must complete and receive Firefighter 1 certification through the New Jersey Department of Community Affairs, Division of Fire Safety.
Any current PFRS police members or firefighting members who have not successfully completed the PTC or Firefighter 1 certification as of July 1, 2010 , will be removed from participation in the PFRS.
Employers (and PFRS members) have 18 months, from December 31, 2008 through June 30, 2010, to establish that all PFRS employees at their employing location have the required PTC or Firefighter 1 training and certification in order to retain their PFRS membership. PFRS members without the required certification will face removal from PFRS membership.
Obtaining
PFRS Board of Trustee Approval for a Job Title
If
a new employee's title does not appear on the list of PFRS approved job titles
at the time of enrollment, and PFRS membership is sought, the employer must submit
a statement explaining the qualifications and duties of the position/title with
the employee's enrollment application. The PFRS Board of Trustees will then render
a decision as to the individual's eligibility for PFRS membership, based upon
the explanation of qualifications and duties provided by the employer for the
title in question.
Promotion
Out of a PFRS Position and PFRS Eligibility
If
a PFRS member is promoted out of a PFRS title, statutes permit the member to transfer
to another State retirement system, such as the PERS, as long as the member meets
eligibility requirements for membership in the second system. In this case, the
member and employer must submit an Interfund Transfer Form to the Division
of Pensions and Benefits, allowing the Division to transfer member contributions
and service credit to the State-administered retirement system covering the new
position.
Promotion
Out of a PFRS Position and PFRS Eligibility When Supervision of PFRS Members Is
Involved
If a PFRS member is promoted
out of a PFRS title to assume a position in which he/she will be supervising PFRS
members, the employer can write to the Division seeking approval to allow the
member to remain in the PFRS.
Age
Restrictions on Membership in PFRS
Effective
February 25, 1997, individuals qualified to enroll in PFRS in all other respects
must comply with the maximum age restriction; that is, be appointed on or before
the day of their 35th birthday.
Also effective June 30, 1997, PFRS members must retire no later than the first
of the month following their 65th birthday.
Civil
Service and Non-Civil Service Positions
Civil
Service Positions
Individuals
hired in a PFRS-eligible title at Civil Service (Title 11) locations on
or after February 25, 1997, cannot be older than the day of their 35th
birthday as of the announced closing date of the Civil Service examination for
that title, in order to be eligible to establish membership in the PFRS. Individuals
meeting this age requirement can be hired at any time from a Civil Service list
while it is still active, and can be enrolled in the PFRS (N.J.S.A. 43:16A-3(1)).
Non-Civil
Service Positions
Individuals
hired in a PFRS eligible title at a Non-Civil Service location, on or after
February 25, 1997, can be no older than the day of their 35th birthday
on the date of hire, to be eligible for membership in the PFRS. (NJSA 43:16A-3(2))
Maximum
Age Restrictions at State and County Locations
Individuals
employed by any State or County location who do not meet the maximum
age requirement described above must establish membership in the Public Employees'
Retirement System (PERS) one year after being provisionally employed in the title,
or immediately after being permanently appointed in the title (NJSA 43:16A-3(1)).
Note:
Those individuals enrolled under the PERS in Law Enforcement Officer (LEO) titles
will be eligible for enhanced benefits under special LEO provisions. See
LEO section under "PERS Enrollment Eligibility".
Maximum
Age Restrictions at Municipal Locations
Individuals
hired by any municipality in an eligible PFRS title on or after February
25, 1997, who are one day or more past their 35th birthday on the date of hire,
cannot establish membership in any State-administered retirement system (NJSA
43:16A-3(2)).
For "Exceptions"
to the 35-Year Old Age Limit, see "Reducing A Member's
Age" below.
Medical
Requirements
A
physical examination must be completed by the employer's physician to prove medical
readiness for a PFRS position.
The
medical exam must occur within one year of the receipt of the medical form that
accompanies the PFRS Enrollment Application.
Required
Forms
In order to enroll a newly hired employee in the Police and Firemen's Retirement System (PFRS), the employer must submit the following:
- Either the completed PFRS Enrollment Application*
OR the MBOS online "PFRS Enrollment Application," AND;
- A Report
of Examining Physician form, completed by a physician representing the employing agency. (Only the Division of Pensions
and Benefits form is acceptable.)
- Civil
Service locations only: The employer must also provide the closing date of the Civil Service examination
for the position for which the individual is being hired. A photocopy of the Civil
Service list would be acceptable evidence.
*On
the paper version of the PFRS Enrollment Application, the member is asked to designate a beneficiary
(or beneficiaries) for the return of pension contributions and life insurance
benefits. If the member does not complete the
"Designation of Beneficiary" portion of the application, the Division
will still accept the enrollment application so that the enrollment can be processed
in a timely manner. Delayed
and forced enrollments can be costly to the employer.
Beneficiary Designation
At the time of enrollment, the new member should make his/her beneficiary designations for any benefits payable upon his/her death. To accomplish this task, the member may either register with the Member Benefits Online System (MBOS), which will enable the member to designate or update their beneficiary information online by using the "Designation of Beneficiary" application; complete the "Beneficiary Designation" section of the printed version of the PFRS Enrollment Application; or, complete and submit a printed Designation
of Beneficiary form.
If the member does not make beneficiary designations by either completing the "Beneficiary Designation" section on the printed version of the PFRS Enrollment Application, completing a printed Designation
of Beneficiary form, or using MBOS to designate pension and group life insurance beneficiaries online, the estate of the newly enrolled member will automatically be listed as both the group life insurance and pension beneficiary for any death benefit payable. In such cases, an insurance packet and policy rider confirming
the estate as beneficiary will be mailed to the member.
In order to change the beneficiary
information in effect once enrollment has occurred, the member
must either submit a new Designation
of Beneficiary form, or use the MBOS "Designation of Beneficiary" application to make changes. The "Designation of Beneficiary" section
of the enrollment application will not be accepted in place of the Designation
of Beneficiary form.
Click
here for PFRS Enrollment Application Instructions.
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History
of PFRS Enrollment Age Limits
Many
have commented on the confusing history of age limits relating to PFRS enrollment.
Changes have resulted from legislative initiatives, court rulings, and changes
in Administrative Code. It may be helpful, then, to review the history of maximum
enrollment age limits.
New
Jersey statutes and the New Jersey Administrative Code establish the maximum enrollment
age for the PFRS. These provisions were superseded in 1993 by the federal Age
Discrimination in Employment Act (ADEA) so that the State statutes and code could
not be enforced. In 1996, the federal government eliminated the ADEA restrictions
that applied to the PFRS governing statutes, and in Formal Opinion No. 1, published
on February 25, 1997, the State Attorney General stated that the age restrictions
must be enforced. The following chart highlights these and other changes at a
glance.
| Enrollment
Age Limit History |
|
Dates |
Age |
|
6/30/1944 - 4/11/1945
| 35
|
| 4/12/1945
- 9/03/1968 | 30
|
| 9/04/1968
- 7/10/1984 | 35
|
| 7/11/1984
- 2/28/1987 | No
Age Limit |
|
3/01/1987 - 12/31/1993
| 35
|
| 1/01/1994
- 2/24/1997 | No
Age Limit |
|
2/25/1997 - present
| 35
|
Members who
were enrolled in the PFRS while the age 35 restriction was not in force will be
allowed to retain membership in the system on the same basis as any other member.
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"Reducing"
a Member's Age
There
are situations in which age can be "reduced" for purposes of being eligible
for enrollment in the PFRS.
For
All Employing Locations
Members
can "reduce" their age by calculating their present age and reducing
it by the amount of active military service in the theater of operations during
war time or time of conflict, as stipulated by N.J.A.C. 17:4-2.5 and N.J.S.A.
43:1-1.1, the definition of a veteran for pension purposes. This applies to cases
involving State, county, and municipal locations.
For
more information see our Fact Sheet
#17, Veteran Status.
The
Following "Reductions" Apply Only to Municipalities:
- Members may also
"reduce" their enrollment age for prior service as State trooper, sheriff's
officer or deputy, or county or municipal police officer, as stipulated in N.J.S.A.
40-14-127.1. This statute provides that former municipal police officers can "reduce"
their age for entry into the PFRS if their actual age, less the number of years
of previous service as police officers, would reduce their age to 35 or less.
- Service as a municipal
police officer in another state may also qualify for use in "reducing"
a member's age for entry into the PFRS.
- An
age reduction may also be granted for persons who have prior service with the
police departments of the Delaware River Port Authority, Amtrak, the Burlington
County Bridge Commission, or SEPTA.
- Prior
service in federal law enforcement agencies may also be used to "reduce"
a member's age.
However,
no person may be appointed who is over the age of 45 except for those who were
involuntarily terminated previously from former employment.
Candidates
Who Exceed the Age Limit
Individuals
employed by any State or county location, who cannot meet the maximum age
requirement for membership in PFRS, must establish membership in Public Employees'
Retirement System under the following conditions:
- Immediately upon being permanently appointed
to a position with a Civil Service employer.
- After
serving provisionally in an eligible title for one year with a Civil Service employer.
- After
being employed for one year in temporary position with a Non-Civil Service employer.
Individuals
hired by any municipality in an eligible PFRS title who are over age 35
on the date of hire, even after "reductions in age" have been taken
into account, cannot establish membership in any State-administered retirement
system. Since enrollment in the PFRS is a condition of employment (N.J.S.A. 43:16A-3(1)),
these individuals are considered illegal hires.
Volunteer
Firefighters and Pension System Eligibility
Police
and firefighters must meet stringent age criteria in order to be eligible for
enrollment in the PFRS: Those who have passed their 35th birthday cannot be enrolled
in the PFRS. Those over the age of 35 who are employees of the State or of a county
can still be hired in PFRS titles but are enrolled in the PERS. However, State
law prohibits the hiring of municipal police officers and fire fighters over age
35.
There are two exceptions
for municipal firefighters:
- N.J.S.A.
40A:14-44 allows individuals who are over age 35 in a "part-paid" fire
department (some of the department's firefighters are paid, the others are volunteers),
to be hired to paid positions up to age 40 as long as they served for at least
two years as a volunteer in the same fire department immediately prior to the
appointment. They are eligible for enrollment in the PERS, not the PFRS. See the
PERS Enrollment Guide for instructions on enrolling
these individuals into the PERS.
- N.J.S.A
40A:14-56 allows individuals who are over age 35 in a "part-paid" fire
department (some of the department's firefighters are paid, the others are volunteers),
to be hired to paid positions up to age 40, if they are able to obtain an "Exempt
Firefighter Certificate". Obtaining the "Exempt Firefighter Certificate"
requires such individuals to meet a number of conditions. For more information,
including a list of the conditions that must be met to qualify, and a sample "Exempt
Firefighter Certificate", please see the Municipal
Volunteer Firefighter Exempt Certificate and Conditions. Please note that
individuals who qualify for this exemption are eligible for enrollment in the
PERS, not the PFRS. See the PERS Enrollment Guide
for instructions on enrolling these individuals into the PERS.
Candidates
Employed Part-time, Under Age 35
Employees
who are "part-time" officers should be enrolled into the PERS if they
are otherwise eligible for enrollment. Enrollment dates are set according to
PERS rules of enrollment. They cannot be enrolled in the PFRS.
Candidates
Awaiting Permanent Appointment
In
accordance with N.J.A.C. 17:2-2.8, employees at Civil Service employing locations,
otherwise eligible for enrollment, who are "temporary" or "provisional"
pending an examination, must be enrolled in the PERS one year after being employed
in the title. Once the candidate has attained permanent (RA) status, the member
may be enrolled in the PFRS and may transfer eligible PERS service credit into
the PFRS account.
Rate
of Contribution
The
rate of contribution for members of the PFRS is 8.5% of base salary. Deductions
may begin only when a Certification of Payroll Deductions is received from
the Division of Pensions and Benefits.
Back
Deductions
Back deductions are mandatory
pension contributions subject to IRC Section 414(h). They are the pension obligations
owed from the date of enrollment or transfer to the date deductions are certified
to begin.
Back deductions are calculated
on the member's current annual salary, regardless of when the member is enrolled.
If back deductions are owed for a time period exceeding 12 months, 8.25% interest
is added.
The
PFRS is a "Qualified Pension Plan"
The PFRS is a "qualified"
pension plan under the provisions of the Internal Revenue Code,
Section 401(a)(17); therefore, the current federal ceiling on
pensionable salary ($230,000 in 2008) applies to the base
salaries of PFRS members. Salary earned by a member in excess
of this amount is not pensionable; that is, it may not be used
in determining member contributions and benefits. Additional information
about this topic is available at: History
of Pensionable Salary Limits.
PFRS
Pension Deductions are Tax Deferred
Since
January 1, 1987, mandatory pension contributions have been federally tax deferred.
Under the 414(h) provisions of the Internal Revenue Code, this reduces a member's
gross wages subject to federal income tax.
Purchases of service credit are voluntary pension contributions and are
not tax deferred. For a fuller discussion of purchasing service credit,
click to the section, "Purchasing Service
Credit", in this manual.
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