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Retirement from the
Public Employees' Retirement System (PERS)
and the Teachers' Pension and Annuity Fund (TPAF)
Introduction
This section offers an overview of
the retirement process for Public Employees' Retirement System (PERS) members
and Teachers' Pension and Annuity Fund (TPAF) members, with special
attention paid to the forms that are required to enable the Division
to process a member's retirement benefit.
For the Application for Disability
Retirement, there will be links to additional information
concerning the Certification of Service and Final Salary.
Line-by-line instructions are included
for each form.
Please note: It is important that
those who qualify for Veteran status for pension purposes establish
Veteran status well in advance of retirement.
Click
here to find out how to establish Veteran status (for pension) with the New Jersey Department
of Military and Veteran's Affairs.
Membership Tiers
PERS and TPAF members are now classified by enrollment date, as several laws, including Chapter 92, P.L. 2007, Chapter 103, P.L. 2007, Chapter 89, P.L. 2008, and Chapter 78, P.L. 2011 make the eligibility requirements for PERS and TPAF enrollment and retirement different for five distinct enrollment periods. The “membership tiers” by enrollment date are:
- Tier 1 Membership, for members who were enrolled prior to July 1, 2007.
- Tier 2 Membership, for embers who were eligible to enroll on or after July 1, 2007 and prior to November 2, 2008.
- Tier 3 Membership, for members eligible to enroll on or after November 2, 2008 and on or before May 21, 2010.
- Tier 4 Membership, for members eligible to enroll after May 21, 2010 but before June 28, 2011.
- Tier 5 Membership, for members eligible to enroll on or after June 28, 2011.
Retirement eligibility requirements will be listed separately, by Tier, for each type of retirement, when differences exist.
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Get An Estimate of Retirement
Benefits
Most retirement applications require
three to four months processing time, from the date the application
and retirement certification are received, for calculation, Board
approval, preparing the retirement account and receiving the first
check. Changes to retirement selections can often cause
delays in processing and can delay prompt payment of a member's
first retirement check. Needless to say, the Division of
Pensions and Benefits, the retiring member, and you, the employer,
would like to avoid delays of this kind.
The simplest way to avoid unnecessary
delays in processing a retirement is to ensure the member has
as much information as possible concerning the retirement process
and what to expect in retirement. A retirement estimate
is a valuable tool for retirement planning and can be obtained
simply and easily. The member can choose to:
*Member must first register for MBOS. Click here to learn how.
The Division suggests that members
request an estimate at least six months prior to an anticipated
retirement date. There is no obligation to retire when
a retirement estimate is requested since it is a planning tool,
not an application for benefits. Many members request
multiple estimates based on different projected dates of retirement,
retirement types and options.
- Retirement estimates may be obtained
for any eligible date up to two years ahead.
- All retirements begin on the
first of a month.
- The member must not be actively
employed as of the day prior to retirement. Even though payroll
checks may still be in process as of a member's retirement date,
there can be no more service rendered nor salary earned by the
member as of that date.
- A retirement is "due and
payable" — that is, eligible for the first retirement
check, 30 days after the retirement date, or 30 days after
the Board of Trustees approves the retirement, whichever is
later.
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Retirement
Eligibility, Calculations and Documents Required
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SERVICE RETIREMENT |
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Tier 1 Eligibility: |
Age 60 or older,
any number years of service |
Benefit Formula |
Years and Months of Service ÷ 55 X Final Average Salary (FAS) = Annual Maximum
FAS - 3 YEARS (See below) |
| |
Tier 2 Eligibility: |
Age 60 or older, any number years of service |
Benefit Formula |
Years and Months of Service ÷ 55 X Final Average Salary (FAS) = Annual Maximum
FAS - 3 YEARS (See below) |
| |
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Tier 3 Eligibility : |
Age 62 or older, any number years of service |
Benefit Formula |
Years and Months of Service ÷ 55 X Final Average Salary (FAS) = Annual Maximum
FAS - 3 YEARS (See below) |
| |
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Tier 4 Eligibility: |
Age 62 or older, any number years of service |
|
Benefit Formula |
Years and Months of Service
÷ 60 X Final Average Salary (FAS) = Annual Maximum
FAS - 5 YEARS (See FAS Tiers 4 and 5 below) |
| |
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Tier 5 Eligibility: |
Age 65 or older, any number years of service |
Benefit Formula |
Years and Months of Service ÷ 60 X Final Average Salary (FAS) = Annual Maximum
FAS - 5 YEARS (See FAS Tiers 4 and 5 below) |
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Member Responsibilities |
-
Complete Application
for Retirement Allowance and submit to Pensions
3-4 months in advance.
View instructions on completing the Application
for Retirement Allowance.
-
Submit proof
of age for member.
-
Submit proof
of age for beneficiary if Option A, B, C, D, 2,
3, or 4 are selected.
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Employer Responsibilities |
Complete and submit Certification
of Service and Final Salary as soon as possible
once you are aware member intends to retire.
View
Instructions
on completing Certification of Service and Final Salary. |
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Notes |
FOR TIERS 1, 2, AND 3 MEMBERS:
-
FAS (Final Average Salary) is last 36 months
of pensionable salary (30 months for 10 month members),
or highest 3 Fiscal Years (July 1 - June 30), for Tier 1, 2, and 3 members. Fiscal
Years do not have to be consecutive.
- Member should note on the Application for Retirement Allowance if the last
three years are not the highest years.
FOR TIERS 4 and 5 MEMBERS:
- FAS (Final Average Salary) is last 60 months
of pensionable salary (50 months for 10 month members),
or highest 5 Fiscal Years (July 1 - June 30).
- Member should note on the Application for Retirement Allowance if the last
five years are not the highest years.
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EARLY
RETIREMENT |
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Tier 1 Eligibility: |
Under age
60 with 25 or more years of service.
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Benefit Formula: |
Same calculation as a Service Retirement = Years
& Months of Service ÷ 55 X Final Average
Salary (FAS) = Annual Maximum;
FAS - 3 YEARS (See above)
Retirement allowance is permanently reduced if retirement occurs prior to member's attainment of age 55, according to membership tier.
For Tier 1 members who retire before age 55, allowance is reduced 1/4 of 1 percent (3 percent per year) for each month under age 55. |
| |
Tier 2 Eligibility: |
Under age 60 with 25 or more years of service.
|
Benefit Formula: |
Same calculation as a Service Retirement = Years
& Months of Service ÷ 55 X Final Average
Salary (FAS) = Annual Maximum;
FAS - 3 YEARS (See above)
Retirement allowance is permanently reduced if retirement occurs prior to member's attainment of age 60, according to membership tier.
For Tier 2 members who retire before age 60, allowance is reduced 1/12 of 1 percent (1 percent per year) for each month under age 60 through age 55, and 1/4 of 1 percent (3 percent per year) for each month under age 55. |
| |
Tier 3 Eligibility |
Under age 62 with 25 or more years of service.
|
Benefit Formula |
Same calculation as a Service Retirement = Years
& Months of Service ÷ 55 X Final Average
Salary (FAS) = Annual Maximum;
FAS - 3 YEARS (See above)
Retirement allowance is permanently reduced if retirement occurs prior to member's attainment of age 62, according to membership tier.
For Tier 3 members who retire before age 62, allowance is reduced 1/12 of 1 percent (1 percent per year) for each month under age 62 through age 55, and 1/4 of 1 percent (3 percent per year) for each month under age 55. |
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Tier 4 Eligibility: |
Under age 62 with 25 or more years of service.
|
Benefit Formula: |
Same calculation as a Service Retirement = Years
& Months of Service ÷ 60 X Final Average
Salary (FAS) = Annual Maximum;
FAS - 5 YEARS (See FAS Tiers 4 and 5 above)
Retirement allowance is permanently reduced if retirement occurs prior to member's attainment of age 62, according to membership tier.
For Tier 4 members who retire before age 62, allowance is reduced 1/12 of 1 percent (1 percent per year) for each month under age 60 through age 55, and 1/4 of 1 percent (3 percent per year) for each month under age 55. |
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Tier 5 Eligibility: |
Under age 65 with 30 or more years of service.
|
Benefit Formula: |
Same calculation as a Service Retirement = Years
& Months of Service ÷ 60 X Final Average
Salary (FAS) = Annual Maximum;
FAS - 5 YEARS (See FAS Tiers 4 and 5 above)
Retirement allowance is permanently reduced if retirement occurs prior to member's attainment of age 65, according to membership tier.
For Tier 5 members who retire before age 65, allowance is reduced 3 percent per year for each year under age 65. |
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Member Responsibilities: |
-
Complete Application
for Retirement Allowance and submit to Pensions
3-4 months in advance of attaining age required for retirement.
Instructions
on completing the Application for Retirement
Allowance.
-
Submit proof
of age for member.
-
Submit proof
of age for beneficiary, if Options A, B, C, D, 2, 3, or 4
selected.
|
|
Employer Responsibilities: |
Complete and submit Certification
of Service and Final Salary as soon as possible
once you are aware member intends to retire.
Instructions
on completing the Certification of Service and
Final Salary |
| Notes: |
- Maximum monthly benefit
is Annual Maximum divided by 12.
FOR TIER 1, 2, AND 3 MEMBERS:
- FAS (Final Average Salary) is last 36 months
of pensionable salary (30 months for 10 month members),
or highest 3 Fiscal Years (July 1 - June 30), for Tier 1, 2, and 3 members. Fiscal
Years do not have to be consecutive.
- Member should note on the Application for Retirement Allowance if the last
three years are not the highest years.
FOR TIERS 4 AND 5 MEMBERS:
- FAS (Final Average Salary) is last 60 months
of pensionable salary (50 months for 10 month members),
or highest 5 Fiscal Years (July 1 - June 30).
- Member should note on the Application for Retirement Allowance if the last
five years are not the highest years.
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DEFERRED
RETIREMENT |
|
Tier 1 Eligibility: |
Effective at age 60
with 10 or more years of service. Available to Tier 1 members who have at least 10 years of service credit and are not yet 60 years of age when they terminate employment.
The retirement would be effective on the first of the month after attaining the appropriate Tier 1 Deferred Retirement age of 60. |
|
Benefit Formula: |
Years & Months of
Service ÷ 55 X Final Average Salary (FAS) = Annual
Maximum
FAS - 3 YEARS (See above)
|
| |
Tier 2 Eligibility: |
Effective at age 60 with 10 or more years of service. Available to Tier 2 members who have at least 10 years of service credit and are not yet 60 years of age when they terminate employment.
The retirement would be effective on the first of the month after attaining the appropriate Tier 2 Deferred Retirement age of 60. |
Benefit Formula: |
Years & Months of
Service ÷ 55 X Final Average Salary (FAS) = Annual
Maximum
FAS - 3 YEARS (See above)
|
| |
Tier 3 Eligibility: |
Tier 3: Effective at age 62 with 10 or more years of service. Available to Tier 3 members who have at least 10 years of service credit and are not yet 62 years of age when they terminate employment.
The retirement would be effective on the first of the month after attaining the appropriate Tier 3 Deferred Retirement age of 62. |
Benefit Formula: |
Years & Months of
Service ÷ 55 X Final Average Salary (FAS) = Annual
Maximum
FAS - 3 YEARS (See above)
|
| |
Tier 4 Eligibility: |
Effective at age 62 with 10 or more years of service. Available to Tier 4 members who have at least 10 years of service credit and are not yet 62 years of age when they terminate employment.
The retirement would be effective on the first of the month after attaining the appropriate Tier 4 Deferred Retirement age of 62. |
Benefit Formula: |
Years & Months of
Service ÷ 60 X Final Average Salary (FAS) = Annual
Maximum
FAS - 5 YEARS (See FAS Tiers 4 and 5 above)
|
| |
|
Tier 5 Eligibility: |
Effective at age 65 with 10 or more years of service. Available to Tier 5 members who have at least 10 years of service credit and are not yet 65 years of age when they terminate employment.
The retirement would be effective on the first of the month after attaining the appropriate Tier 5 Deferred Retirement age of 65. |
Benefit Formula: |
Years & Months of
Service ÷ 60 X Final Average Salary (FAS) = Annual
Maximum
FAS - 5 YEARS (See FAS Tiers 4 and 5 above)
|
| |
|
Member Responsibilities: |
-
Complete Application for Retirement Allowance and submit to Pensions as soon as possible after terminating
employment or, at the latest, 3-4 months in advance
of attaining age 60.
Instructions
on completing the Application for Retirement Allowance
-
Submit proof
of age for
member.
-
Submit proof
of age for
beneficiary, if Options A, B, C, D, 2, 3, or 4 selected.
|
|
Employer Responsibilities: |
Complete and submit Certification of Service and Final Salary as soon as possible once you are aware member intends
to retire.
Instructions
on completing the Certification of Service and Final
Salary |
| Notes: |
FOR TIER 1, 2, AND 3 MEMBERS:
- FAS (Final Average Salary) is last 36 months
of pensionable salary (30 months for 10 month members),
or highest 3 Fiscal Years (July 1 - June 30), for Tier 1, 2, and 3 members. Fiscal
Years do not have to be consecutive.
- Member should note on the Application for Retirement Allowance if the last
three years are not the highest years.
FOR TIER 4 and TIER 5 MEMBERS:
- FAS (Final Average Salary) is last 60 months
of pensionable salary (50 months for 10 month members),
or highest 5 Fiscal Years (July 1 - June 30).
- Member should note on the Application for Retirement Allowance if the last
five years are not the highest years.
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VETERAN
RETIREMENT: PERS and TPAF
Member must provide
Form DD-214 to Department of Military and Veteran Affairs
to prove Veteran's status, well in advance of retirement.
Click here
to learn more about establishing Veteran status.
The age requirements and formulas for calculating a Veteran Retirement are the same for membership Tier 1, Tier 2, Tier 3, Tier 4, and Tier 5 |
|
Eligibility #1: |
Age 55 or older
with 25 years service
or
Age 60 or older with 20 years service
Please note that PERS
eligibility requirements were changed, effective
October 1, 2001. PERS members are now eligible for
this Veteran Retirement benefit in the two ways given
above.
(Must meet eligibility
requirements at termination of employment) |
|
Benefit: |
54.5 % X Final Salary* = Annual Maximum
OR
Highest 12 consecutive months (10 months if applicable) |
|
|
Eligibility #2: |
Attainment of 35
or more years of service
(Must meet eligibility
requirements at termination of employment) |
| Benefit: |
|
Years
of Service ÷ 55 |
X |
Highest
Consecutive * 12 months of Salary
(or 10 months if applicable) |
= |
Annual
Maximum |
|
|
|
Member Responsibilities: |
-
Member must provide
Form DD-214 to Department of Military and Veteran
Affairs to prove Veteran's status, well in advance
of retirement.
Click
here to learn more about establishing Veteran status.
-
Complete Application
for Retirement Allowance and submit to Pensions
3-4 months in advance.
Instructions
on completing the Application for Retirement
Allowance
-
Submit proof
of age for member
-
Submit proof
of age for beneficiary, if Options A, B, C, D, 2, 3, or
4 selected
|
|
Employer Responsibilities: |
Complete and submit
Certification
of Service and Final Salary as soon as possible
once you are aware member intends to retire.
Instructions
on completing the Certification of Service and
Final Salary
|
| Notes: |
* Final Salary
= Last 12 months (10 months if applicable) base salary;
Highest Salary = Highest consecutive 12 months (10
months if applicable) base salary;
|
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DISABILITY
RETIREMENTS
IMPORTANT NOTE: ORDINARY DISABILITY RETIREMENTS AND ACCIDENTAL RETIREMENTS ARE NOT AVAILABLE TO TIER 4 PERS OR TPAF MEMBERS
No age requirement
for Accidental or Ordinary Disability
|
Ordinary
Disability
ORDINARY DISABILITY RETIREMENTS ARE NOT AVAILABLE TO TIER 4 OR TIER 5 PERS OR TPAF MEMBERS
|
|
Eligibility: |
Member must be Totally
and Permanently disabled from doing normal
job duties.
Application must be made
within 2 years of termination date.
Member must have a minimum
of 10 years of New Jersey service credit (Out-of-state,
Military, and Federal government purchases are not
considered New Jersey service credit) |
|
Process: |
Must
be processed through Disability Review procedure. |
|
Benefit: |
Higher calculation of following formulas:
43.6% X Final Average Salary
(FAS) = Annual Maximum
1.64% X Years of Service X FAS = Annual Maximum
FAS (Final Average Salary) is last 36 months
of pensionable salary (30 months for 10 month members),
or highest 3 Fiscal Years (July 1 - June 30), for Tier 1, 2, and 3 members. Fiscal
Years do not have to be consecutive. Ordinary Disability retirements are not available to Tier 4 and Tier 5 PERS or TPAF members.
|
|
Member Responsibilities:
|
-
Complete an Application
for Disability Retirement Allowance 4-6 months
in advance
Instructions
on completing the Application for Disability
Retirement Allowance
-
Supply proof
of age document
for member
-
Submit proof
of age for beneficiary, if Options A, B, C, D, 2, 3, or 4
selected
-
Have medical providers
complete Medical
Examination by Personal or Treating Physician forms (as many as necessary, but 2 at least are recommended)
Instructions
on completing the "Medical Examination by Personal
or Treating Physician"
-
Secure medical records
through Authorization
for Release of Medical Records
For instructions
on completing the Authorization for Release
of Medical Records
Please note: Once the
PERS or TPAF 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 Employer Certification for
Disability Retirement
-
Include copy of Job Description
- PERS only
-
If you answered "Yes"
to Question #6 on the Employer Certification for Disability
Retirement, please include copies of indictments,
convictions and/or preliminary and final notices of
disciplinary action.
- If an Involuntary
Disability Retirement: 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. The employer must submit attendance
records, along with any pertinent medical records.
Sample Letter
Local employers must submit a resolution, authorizing the employing location to process an Involuntary Disability Retirement Application.
Sample Resolution
*When
an employer submits a PERS/TPAF 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. |
|
Notes: |
Maximum monthly benefit
= Annual Maximum divided by 12 |
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Accidental
Disability
ACCIDENTAL RETIREMENTS ARE NOT AVAILABLE TO TIER 4 PERS OR TPAF MEMBERS |
|
Eligibility: |
Member
must be determined to be Totally and Permanently (TP) disabled as a Direct Result (DR) of a Traumatic
Event (TE) while doing the member's normal job duties.
Must
be a member on or before accident date. |
|
Process: |
Must
be processed through Disability Review procedure.
Application
must normally be made within 5 years of accident date. |
|
Benefit: |
72.7 % X Salary
at time of Accident = Annual Maximum. |
|
Member Responsibilities:
|
-
Complete an Application
for Disability Retirement Allowance 4-6
months in advance.
Instructions
on completing the Application for Disability
Retirement Allowance.
-
Supply proof
of age document for member.
-
Submit proof
of age for beneficiary, if Options A, B, C, D, 2, 3, or
4 selected
-
Have medical providers
complete Medical
Examination by Personal or Treating Physician
forms (as many as necessary, but 2 at least are
recommended).
Instructions on completing the Medical Examination by Personal
or Treating Physician.
-
Secure medical records
through Authorization
for Release of Medical Records.
Instructions
on completing the Authorization for Release
of Medical Records.
Please note: Once the
PERS or TPAF 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 Employer Certification for
Disability Retirement.
-
Include copy of Job Description
- PERS only.
-
If you answered "Yes"
to Question #6 on the Employer Certification for Disability
Retirement, please include copies of indictments,
convictions and/or preliminary and final notices of
disciplinary action.
-
Copies of accident reports,
incident reports, witness statements, medical records
relating to the incident, and other related documents.
-
Copies of Workers' Compensation
awards.
-
If an Involuntary
Disability Retirement: 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. The employer must submit attendance
records, along with any pertinent medical records.
Sample Letter
- Local employers must submit a resolution, authorizing the employing location to process an Involuntary Disability Retirement Application.
Sample Resolution
|
|
Notes |
Maximum monthly benefit
is Annual Maximum divided by 12 |
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