Employers' Pensions and Benefits Administration Manual (EPBAM)
   

 

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Retiring from the
Alternate Benefit Program (ABP)



 

The Retirement Process

 
    Required Form  
   

Minimum Retirement Age

 
   

Account Distribution at Retirement

 
    Age Limits, Distribution  
    Delaying Distribution  
   

Group Life Insurance Coverage

 
    Conversion of Group Life Insurance  
  ABP Locations  
  Fact Sheet #38, Alternate Benefit Program  
  Alternate Benefit Program Member Handbook  
  Choosing between the PERS and ABP  
  ABP Long Term Disability Information  

The Retirement Process

When a Member Wishes to Retire

A member who is planning to retire should contact you, the employer, and the authorized carrier for information regarding benefits and options. The carriers regularly provide informational seminars on retirement; employers can contact any of the carriers to arrange such informational seminars on-site. (See "Approved Investment Providers" below for carrier contact information.)

Required Form

Employees who are within four to six months of retirement must complete the Application for Retirement, Alternate Benefits Program.

Part One of the application, "Member Information", should be completed by the member. The member must provide his or her name, home address, daytime phone number, date of birth, Social Security number, investment provider, and date of retirement for immediate disbursement or date of deferred retirement.

Part Two of the application, "Certification of Employing Agency", should be completed by the employer. The employing ageny must provide the name of employing location, employer location number, the employee's membership number, the last day the employee worked, and the employee's union code at retirement. The date and the signature of the Certifying Officer of the employing location must be included.

Minimum Retirement Age

There is no minimum retirement age under the ABP. A member may take a cash distribution, or begin collecting an annuity, from the investment provider to which contributions have been remitted, at any time after termination of employment.

However, once a member takes a distribution, including a rollover of any amount to an IRA, the member is automatically considered retired, regardless of age, and cannot participate in any State-administered retirement system.

Please take note of the age limits that apply to lump sum cash distributions below.

Distribution: Lump Sum, Fixed Term Annuity, or Life Annuity

At retirement, a member may elect to receive all or a portion of his/her account in a lump-sum distribution, or as a fixed term or life annuity. The types of payout plans vary from carrier to carrier and should be a major consideration when the member selects a carrier at the time of enrollment or transfer.

All returns of contributions and earnings are considered taxable in the year they are received.

Age Limits, Distributions

Lump-sum cash distributions to members under the age of 55 are limited to the member’s contributions and earnings. The remaining employer contributions and earnings are available only when a member reaches age 55 or thereafter.

Delaying Distribution

A member may delay collecting a benefit from his or her 401(a) contracts following termination of employment. The employer should make the member aware, however, that if the member terminates ABP employment and then delays taking a distribution (retirement) for a period of time greater than twelve months, the member is no longer eligible for retired group life insurance benefits under the ABP, even if the other eligibility requirements for ABP retired group life insurance coverage are met.

Member Group Life Insurance Coverage in Retirement

ABP members in active service are covered by employer-paid group life insurance, payable to their designated beneficiaries in the amount of three and one-half times the employee’s annual base salary in the last 12 months of service. Active group life insurance coverage ceases 31 days after termination of employment. (See Conversion of Group Life Insurance below.)

Upon retirement, life insurance reduces to one-half of the annual base salary. To be eligible for this life insurance coverage in retirement, a member must be age 60 or older and must have completed 10 years of participation in the ABP at an eligible New Jersey institution of higher education. In addition, the member must have been an active employee within the twelve months immediately preceding the initial receipt of a retirement annuity payment, in order to receive retired group life insurance coverage. (See "Delaying Distribution" above).

Conversion of Group Life Insurance

As mentioned above, active group life insurance coverage ceases 31 days after termination of employment. During the 31-day period following termination of employment, the member may convert existing group life insurance coverage (less any amount of coverage carried over into retirement) into an individual whole life policy, without medical examination. For more information, please refer to Fact Sheet #13, Conversion of Group Life Insurance.

ABP Covered Locations

State Agencies and Institutions of Higher Education
Covered by the ABP

  • Atlantic Cape Community College
  • Bergen Community College
  • Brookdale Community College
  • Burlington County College
  • Camden County College
  • County College of Morris
  • Cumberland County College
  • Essex County College
  • Gloucester County College
  • Higher Education Student
    Assistance Authority (HESAA)
  • Hudson County Community College
  • Kean University
  • Mercer County Community College
  • Middlesex County College
  • Montclair State University
  • New Jersey City University
  • New Jersey Institute of Technology
  • New Jersey State Commission
    on Higher Education
  • Ocean County College
  • Passaic County Community College
  • Ramapo College of New Jersey
  • Raritan Valley Community College
  • Rowan University
  • Rutgers, The State University
    of New Jersey
  • Salem Community College
  • Sussex County Community College
  • The College of New Jersey
  • The Richard Stockton College of New Jersey
  • Thomas Edison State College
  • Union County College
  • University of Medicine and
    Dentistry of New Jersey
  • Warren County Community College
  • William Paterson University of New Jersey


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Approved Investment Providers

The Division of Pensions and Benefits currently approves the following providers to offer annuity investment accounts for ABP members:

 

ING/VOYA Finanical Services
581 Main St., Fourth Floor
Woodbridge, NJ 07095
877-873-0321
www.ingretirementplans.com

 

MassMutual (formerly The Hartford)
Gitterman & Associates Wealth Management, LLC
(financial advisors)
70 Wood Avenue South, 3rd Floor
Iselin, NJ 08830
(848) 248-4877
Mandatory Contributions:
http://www.retire.hartfordlife.com/newjersey401a/index.html
Voluntary Additional Contributions:
http://www.retire.hartfordlife.com/newjersey403b/index.html


 

AXA Financial (Equitable)
333 Thornall Street, 8th Floor
Edison, NJ 08837
866-752-0072
www.equitable.com/nj

 

Teachers Insurance and Annuity Association/
College Retirement Equities Fund (TIAA/CREF)

155 Village Blvd, Suite A
Princeton, NJ 08540
1-800-842-8412
www.tiaa-cref.org/njabp

 

MetLife (formerly Travelers/CitiStreet)
581 Main Street, Sixth Floor
Woodbridge, NJ 07095
1-800-545-0108
(732) 602-0500
www.njabp.metlife.com

 

VALIC
135 Route 202/206, Suite 13
Bedminster, NJ 07921

(908) 470-4110

www.aigretirement.com/njabp

  Prudential Retirement
30 Scranton Office Park
Scranton, PA 18507
1-866-657-3327
TDD line: 1-877-760-5166


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For additional information regarding the Alternate Benefit Program, please see Fact Sheet #38, Alternate Benefit Program or the Alternate Benefit Program Member Handbook.

 

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Last Updated: June 30, 2014