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Police and Firemen's
Retirement System
Retirement Processing
Eligibility Requirements and Pension Calculations
PFRS Membership Tiers
Please note that effective May 21, 2011, PFRS members are now classified by enrollment date, as eligibility requirements for PFRS enrollment and retirement are now different for three distinct enrollment periods, according to the law. The “membership tiers” by enrollment date are:
- Tier 1 Membership, for members who were enrolled on or before May 21, 2010.
- Tier 2 Membership, for members who were eligible to enroll between May 21, 2010 and June 28, 2011.
- Tier 3 Membership, for members who are eligible to enroll after June 28, 2011.
For a PFRS Tier 1 member enrolled on or before May 21, 2010,
Final Compensation means the salary upon which pension contributions were based in the last 12 months of creditable service preceding retirement.
For a PFRS Tier 2 or Tier 3 member enrolled after May 21, 2010, Final Compensation means the average salary upon which pension contributions were based for any three fiscal years (July-June) of membership preceding retirement that provides the largest possible benefit.
Retirement allowance calculations for PFRS Service and Deferred Retirements are the same for Tier 1, Tier 2, and Tier 3 members, but Final Compensation calculations are different, according to the above definitions.
However, the Tier 3 PFRS retirement formula for Special Retirements has been changed under Chapter 78, P.L. 2011. Please see Special Retirements below to learn more.
PFRS
Retirement Eligibility and
Formulas for Retirement Allowance Calculations
SERVICE
RETIREMENTS (FOUR TYPES) |
|
Type
1Eligibility |
Age 55 or older |
|
Benefit |
Years of Service X 2% X Final
Compensation* = Annual Maximum Pension
Up to 30 years, plus 1% for each year over 30 years.
*Final Compensaton is defined differently for Tier 1 members versus Tier 2 and Tier 3 members:
|
|
Type
2 Eligibility |
Age 55 or older, with at least
20 years of service (but less than 25 years of service), or;
Twenty or more years of service at any age, but less than
25 years of service, if enrolled prior to 1/18/00. |
|
Benefit |
50% X Final Compensation* = Annual
Maximum Pension
*Final Compensaton is defined differently for Tier 1 members versus Tier 2 and Tier 3 members:
|
|
Type
3 Eligibility |
Mandatory Retirement at 65,
with 20 or more years of service but less than 25 years
of service.**
|
| Benefit |
50% X Final Compensation*, plus
three percent X Final Compensation* for each year of service
over 20, up to 25 years.
*Final Compensaton is defined differently for Tier 1 members versus Tier 2 and Tier 3 members:
|
Type
4
Eligibility |
Forty or more years of service credit. |
| Benefit |
70 percent X Final Compensation*, plus an additional one percent X Final Compensation* for each year of service credit over 40 years
*Final Compensaton is defined differently for Tier 1 members versus Tier 2 and Tier 3 members:
|
|
Member Responsibilities |
Complete a PFRS
Application for Retirement Allowance 3-4 months in
advance.
Instructions on completing
the application.
Supply proof of age document for member.
Supply proof of age document for spouse, civil union partner, or eligible same sex domestic partner*
Supply photocopy of: Marriage Certificate; OR Civil Union Certificate from NJ or a valid certification from another jurisdiction that recognizes same-sex civil unions; OR New Jersey Certificate of Domestic Partnership dated prior to February 19, 2007 or a valid certification from another jurisdiction that recognizes same-sex domestic partners.*
* Required for Survivor's Pension
to be paid upon retiree's death. |
|
Employer Responsibilities |
Complete Certification
of Service and Final Salary as soon as possible upon
learning of member's retirement.
Instructions on completing
the certification. |
|
Notes: **Mandatory
retirement is at age 65, except for elected officials. In
addition, members of the PFRS hired before January 1, 1987
may serve in the PFRS until they reach age 68 or 25 years
of creditable service, whichever comes first (effective January
12, 2006).
|
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|
SPECIAL
RETIREMENT |
| Eligibility |
Any age with 25 or more
years of service credit in the PFRS. |
| Benefit, Tier 1 and Tier 2 |
65% X Final Compensation*
plus 1% per year over 25 years (up to 30 years)= Annual Maximum Pension
Maximum Benefit = 70% of Final Compensation
*Final Compensaton is defined differently for Tier 1 members and for Tier 2 members:
|
| Benefit, Tier 3 |
60% X Final Compensation*
plus 1% per year over 25 years (up to 30 years)= Annual Maximum Pension
Maximum Benefit = 65% of Final Compensation
*Final Compensaton is defined differently for Tier 1 members versus Tier 2 and Tier 3 members:
|
| |
| Member Responsibilities |
Complete a PFRS
Application for Retirement Allowance 3-4 months
in advance.
Instructions on completing
the application.
Supply proof
of age document for member
Supply proof
of age document for spouse, civil union partner, or eligible same-sex domestic partner*
Supply photocopy of: Marriage Certificate; OR Civil Union Certificate from NJ or a valid certification from another jurisdiction that recognizes same-sex civil unions; OR New Jersey Certificate of Domestic Partnership dated prior to February 19, 2007 or a valid certification from another jurisdiction that recognizes same-sex domestic partners.*
*Required for Survivor's Pension to be paid upon retiree's
death |
| Employer
Responsibilities |
Complete Certification
of Service and Final Salary as soon as possible
upon learning of member's retirement.
Instructions on
completing the Certification. |
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|
DEFERRED RETIREMENT |
| Eligibility |
Ten (10) or more years
of service credit. |
| Effective Date |
First of month after member
turns 55. |
| Benefit |
Years of Service X 2% X Final
Compensation* = Annual Maximum Pension
*Final Compensaton is defined differently for Tier 1 members versus Tier 2 and Tier 3 members:
|
| Member Responsibilities |
Complete a PFRS
Application for Retirement Allowance 3 - 4 months
in advance
Instructions on completing
the application.
Supply proof
of age document for member
Supply proof
of age document for spouse, civil union partner, or eligible same-sex domestic partner*
Supply photocopy of: Marriage Certificate; OR Civil Union Certificate from NJ or a valid certification from another jurisdiction that recognizes same-sex civil unions; OR New Jersey Certificate of Domestic Partnership dated prior to February 19, 2007 or a valid certification from another jurisdiction that recognizes same-sex domestic partners.*
*
Required for Survivor's Pension to be paid upon retiree's
death |
| Employer Responsibilities |
Complete Certification
of Service and Final Salary as soon as possible
upon learning of member's retirement.
Instructions on
completing the Certification. |
DISABILITY
RETIREMENTS
No age requirement
for Accidental or Ordinary Disability
| Ordinary
Disability Retirement |
| Eligibility |
- Member must be determined
to be Totally and Permanently disabled from doing
normal job duties.
- Application must normally
be made while still on payroll or on an approved paid
or unpaid leave of absence with the employer. The member
must be considered "in service" with the employer (please
see information below regarding what is regarded as
"in service").
- Member must have a minimum
of 4 years of New Jersey service credit (out-of-state, U.S. Government and Military purchases cannot be used to attain the four years).
Please Note: A "member
in service" means that the member or the employer
was making pension contributions to the retirement system
at the time of filing the application for a disability
retirement allowance. It may also mean that the member
was on an approved leave of absence, paid or unpaid, or
suspension, paid or unpaid, at the time of filing the
application for a disability retirement allowance, and
it has not been more than the time frames permitted by
N.J.S.A. 43:16A-9(5)a for active membership since the
member's last contribution to the retirement system. If
the member had pending litigation for wrongful termination
filed against the employer, the member has 30 days from
the date the litigation is resolved to file for disability
retirement in order to be considered a "member in
service".
|
| Benefit |
40% X Final Compensation*
= Annual Maximum
OR
1.5% of Final Compensation* for each yr. of service credit
WHICHEVER IS HIGHER
*Final Compensaton is defined differently for Tier 1 members versus Tier 2 and Tier 3 members:
|
Member Responsibilities |
- Complete a PFRS
Application for Disability Retirement Allowance.
Instructions on
completing the Disability Retirement Application.
- Supply proof
of age document for member.
- Supply proof
of age document for spouse, civil union partner, or eligible same-sex domestic partner.*
- Supply photocopy of: Marriage Certificate; OR Civil Union Certificate from NJ or a valid certification from another jurisdiction that recognizes same-sex civil unions; OR New Jersey Certificate of Domestic Partnership dated prior to February 19, 2007 or a valid certification from another jurisdiction that recognizes same-sex domestic partners.*
- Have medical providers
complete Medical
Examination by Personal or Treating Physician
forms (as many as necessary, but 2 at least are recommended).
- Secure medical records
through Authorization
for Release of Medical Records.
* Required for Survivor's
Pension to be paid upon retiree's death
Please note: Once
the PFRS Board of Trustees grants approval for a disability
retirement, the member may only cancel the retirement
by submitting a letter requesting to do so to the Board
of Trustees, with a written statement from his/her physician
expressing that the member can return to work. The Disability
Review Section would then send the member for an IME,
and all medical information would be again submitted to
the Medical Review Board. Once all of the above information
is received, the Board of Trustees would make a determination
of whether member is able to return to work or not.
|
Employer Responsibilities |
- Complete Employer
Certification for Disability Retirement as soon
as possible upon learning of member's retirement.
Instructions
on completing the Disability Retirement Certification.
|
| Accidental
Disability Retirement |
| Eligibility |
- Member must be determined
to be Totally and Permanently disabled
- as a Direct Result
of
- a Traumatic Event
while doing his or her normal job duties.
|
| Process |
- Must be processed through
Disability Review Procedure.
- Application must normally
be made within 5 years of accident date, and;
- Member must still be
on payroll or on an approved leave of absence with the
employer. The member must be considered "in service"
with the employer (please see information below regarding
what is regarded as "in service").
Please Note: A "member
in service" means that the member or the employer
was making pension contributions to the retirement system
at the time of filing the application for a disability
retirement allowance. It may also mean that the member
was on an approved leave of absence, paid or unpaid, or
suspension, paid or unpaid, at the time of filing the
application for a disability retirement allowance, and
it has not been more than the time frames permitted by
N.J.S.A. 43:16A-9(5)a for active membership since the
member's last contribution to the retirement system. If
the member had pending litigation for wrongful termination
filed against the employer, the member has 30 days from
the date the litigation is resolved to file for disability
retirement in order to be considered a "member in
service". |
| Member Responsibilities |
- Complete a PFRS
Application for Disability Retirement Allowance.
Instructions on
completing the Disability Retirement Application.
- Supply proof
of age document for member.
- Supply proof
of age document for spouse, civil union partner, or eligible same-sex domestic partner. *
- Supply photocopy of: Marriage Certificate; OR Civil Union Certificate from NJ or a valid certification from another jurisdiction that recognizes same-sex civil unions; OR New Jersey Certificate of Domestic Partnership dated prior to February 19, 2007 or a valid certification from another jurisdiction that recognizes same-sex domestic partners.*
- Have medical providers
complete Medical
Examination by Personal or Treating Physician
forms (as many as necessary but 2 at least are recommended).
- Secure medical records
through Authorization
for Release of Medical Records.
* Required for Survivor's
Pension to be paid upon retiree's death.
Please note: Once
the PFRS Board of Trustees grants approval for a disability
retirement, the member may not cancel the retirement. |
| Employer Responsibilities |
- Complete Employer
Certification for Disability Retirement as soon
as possible upon learning of member's retirement, including
accident reports, medical notes, witness reports, etc.
Instructions
on completing the Disability Retirement Certification.
- Submit accident reports
that apply.
- Submit incident and witness
reports that apply.
|
| Benefit |
2/3 X Final Salary
at Time of Accident (traumatic event) = Annual Maximum,
or
2/3 X Final Salary (At time of retirement)
= Annual Maximum, whichever is greater.
|
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| Involuntary
Disability Retirement
|
| Eligibility |
- Four or more years of New Jersey service credit
(out-of-state, U.S. Government and Military purchases cannot be used to attain the four years)*, and
- Subject to Involuntary
Ordinary Disability Retirement
* The Involuntary Disability
Retirement Allowance calculation for members with four
or more years of service credit but less than twenty years
of service credit is different from that used for members
with twenty or more years of service credit. Please see
Benefit below.
|
| Member Responsibilities |
Supply proof
of age document for member.
Supply proof
of age document for spouse, civil union partner, or eligible same-sex domestic partner. *
Supply photocopy of: Marriage Certificate; OR Civil Union Certificate from NJ or a valid certification from another jurisdiction that recognizes same-sex civil unions; OR New Jersey Certificate of Domestic Partnership dated prior to February 19, 2007 or a valid certification from another jurisdiction that recognizes same-sex domestic partners.*
Have medical providers complete Medical
Examination by Personal or Treating Physician
forms (as many as necessary)
Secure medical records through Authorization
for Release of Medical Records
*Required for Survivor's
Pension to be paid upon retiree's death.
Please note: Once
the PFRS Board of Trustees grants approval for a disability
retirement, the member may only cancel the retirement
by submitting a letter requesting to do so to the Board
of Trustees, with a written statement from his/her physician
expressing that the member can return to work. The Disability
Review Section would then send the member for an IME,
and all medical information would be again submitted to
the Medical Review Board. Once all of the above information
is received, the Board of Trustees would make a determination
of whether member is able to return to work or not.
Also, when an employer submits
a PFRS Application for Disability Retirement Allowance
for a member's Involuntary Disability Retirement, the
member may not change the date of retirement indicated
by the employer.
|
| Employer Responsibilities |
- Complete a PFRS
Application for Disability Retirement Allowance
on behalf of the member.
Do not sign or designate beneficiaries for the
member—the member will have opportunity to do that
later. In place of the member's signature, write, "Involuntary
Disability Retirement" and have the Certifying
Officer sign.
Instructions on
completing the Disability Retirement Application.
- Complete Employer
Certification for Disability Retirement. Write
"Involuntary" on the top of the application.
Instructions
on completing the Disability Retirement Certification.
- State employers must enclose a letter addressed
to the Division of Pensions and Benefits stating that,
in the employing authority's opinion, the member is
"totally and permanently disabled" from fulfilling
his or her job duties, and enclose pertinent medical records. Sample Letter
Local employers must also submit a resolution, authorizing the employing location to process an Involuntary Disability Retirement Application and enclose any pertinent medical records.
Sample Resolution
|
| Benefit |
For members having four
or more but less than twenty years of service credit,
the calculation is the same as the regular Ordinary Disability
Retirement calculation:*
40% X Final Compensation = Annual Maximum Pension (if
approved).
For members with twenty
or more years of service credit, the special "Involuntary
Disability Retirement" calculation is:*
50% X Final Compensation =
Annual Maximum Pension, plus
3% for each year over 20 - up to a maximum of 65%
(if
approved).
*Out-of-state, U.S. government, and military service purchases may not be used to qualify for an Involuntary Disability retirement or to qualify for the higher benefit for members with 20 or more years of service.
|
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| Special
Disability Retirement |
| Eligibility |
- Member must be determined
to be Totally and Permanently disabled from doing
normal job duties.
- Application must normally
be made while still on payroll or on an approved leave
of absence with the employer. The member must be considered
"in service" with the employer.
- Member must have a minimum
of 5 years New Jersey service credit.
Special
Disability Retirement
To
qualify for Special Disability you must:
-
be
a member in service at the time the application is filed
with the Division of Pensions and Benefits (an official
leave of absence is considered in service);
-
have
five or more years of New Jersey service credit; and
-
receive
a heart transplant.
The
annual benefit calculation for a Special Disability Retirement
is equal to 50 percent of Final Compensation.
|
| Benefit |
50% X Final Compensation
= Annual Maximum.
|
| Member Responsibilities |
- Complete a PFRS
Application for Disability Retirement Allowance.
Instructions on completing
the Disability Retirement Application.
- Supply proof
of age document for member.
- Supply proof
of age document for spouse. *
- Supply photocopy of: Marriage Certificate; OR Civil Union Certificate from NJ or a valid certification from another jurisdiction that recognizes same-sex civil unions; OR New Jersey Certificate of Domestic Partnership dated prior to February 19, 2007 or a valid certification from another jurisdiction that recognizes same-sex domestic partners.*
- Have medical providers
complete Medical
Examination by Personal or Treating Physician
forms (as many as necessary, but 2 at least are recommended).
- Secure medical records
through Authorization
for Release of Medical Records.
* Required for Survivor's Pension
to be paid upon retiree's death
Please note: Once the
PFRS Board of Trustees grants approval for a disability
retirement, the member may not cancel the retirement.
|
Employer Responsibilities |
- Complete Employer
Certification for Disability Retirement as soon
as possible upon learning of member's retirement.
Instructions
on completing the Disability Retirement Certification.
|
Retirement
Benefits for Survivors
See
"Reporting a Death"
PFRS
Member Dies "While Active"
For
non-job-related deaths of an active member, the
survivor benefits are as follows:
|
| Surviving
Spouse/Civil Union Partner/Same Sex Domestic Partner Benefit* |
50% X Final Compensation
= Annual Maximum |
| If there
is no Spouse/Civil Union Partner/Same Sex Domestic Partner |
20% for one child,
35% for two, 50% for three or more children, until age 18 |
| If no Spouse/Civil Union Partner/Same Sex Domestic Partner
or Children |
25% if one surviving
parent; 40% if two surviving parents |
|
*Marriage/civil union/same-sex domestic partnership must be in effect as of the date of the death in order for the surviving spouse/civil union partner/same sex domestic partner to qualify for the survivor benefits. |
See
"Reporting a Death"
PFRS
"Accidental Death"
For job-related deaths
of an active member, the survivor benefits are
as follows:
|
| Surviving
Spouse/Civil Union Partner/Same-sex Domestic Partner Benefit* |
70% X
Final Compensation = Annual Maximum |
| If there
is no Spouse/Civil Union Partner/Same-sex Domestic Partner |
20% for
one child, 35% for two, 50% for three or more
children, until age 18 if in high school; until age 24 if
pursuing higher education. |
| If no Spouse/Civil Union Partner/Same-sex Domestic Partner
or Children |
25% if one surviving
parent; 40% if two surviving parents.
Member must have been responsible for support of the parents. |
|
*Marriage/civil union/same-sex domestic partnership must be in effect as of the date of the death in order for the surviving spouse/civil union partner/same sex domestic partner to qualify for the survivor benefits.
Benefit will continue even if the surviving
spouse/civil union partner/same-sex domestic partner subsequently remarries** or enters into a civil union after the member's death.
**For subsequent remarriages
occurring on or after September 12, 2003 only. |
See
"Reporting a Death"
PFRS
"Death After Retirement"
For
Retirees after 1/1/68 |
|
Surviving Spouse/Civil Union Partner/Same-sex Domestic Partner Benefit* |
50% X Final Compensation
= Annual Maximum, plus:15% for one child or 25% for two or more children, until age 18 |
| If
no Spouse/Civil Union Partner/Same-sex Domestic Partner |
20% for one child,
35% for two, 50% for three or more children, until age 18 |
| If
no Spouse/Civil Union Partner/Same-sex Domestic Partner or Children |
25% if one surviving
parent; 40% if two surviving parents.
Member must have been responsible for support of the parents.
|
|
*Marriage/civil union/same-sex domestic partnership must be in effect as of the date of the death in order for the surviving spouse/civil union partner/same sex domestic partner to qualify for the survivor benefits. |
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