Employers' Pensions and Benefits Administration Manual (EPBAM)
   

 

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Instructions for Retirement Forms
for the Teachers' Pension and Annuity Fund (TPAF)
and the Public Employees' Retirement System (PERS)


     
 

Retirement Estimate Request

 
 

Retirement Application

 
 

Certification of Service and Final Salary

 
     

Retirement Estimate Request

An Important Note: The Request for a Retirement Estimate is offered as a planning tool for members of the State-administered retirement systems. By submitting a request form, a member is not obligated to retire on the date listed, nor is the option selection or the beneficiary information binding. The Division does not notify the employer nor any other institution or person. A member may submit as many forms as he or she finds necessary in order to make adequate plans for retirement.

Fund Check Box

Check the box that corresponds to the pension fund to which the member belongs.

Member Information

The member should include all information requested to enable the Division of Pensions and Benefits to provide a correct estimate of retirement benefits. The Division will mail the estimate to the address listed on this form. Also, it is very important for the member to include the exact date of birth and Social Security number.

Prior Retirement Check Box

If a member is requesting a retirement estimate and has retired once before from public employment in New Jersey, it is important that he or she check the appropriate box here. This information could have a huge effect on the estimate prepared at the Division of Pensions and Benefits.

Three Highest Years Earnings

Most retirement allowances in the PERS and the TPAF are calculated using the average of the three highest years' earnings, called the Final Average Salary (FAS). Usually the last three years are an employee's highest years of base salary. But in some cases, members have earned higher salaries in prior years. If the member indicates the years of highest earnings, the Division will be able to provide a more accurate estimate of retirement benefits.

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Retirement Type

The member is asked to choose which type of retirement he or she would like an estimate for. If eligible for more than one type, a member may request an estimate for each one. For more information concerning types of retirement, click here.

Planned Retirement Date

An estimate can be calculated for retirements up to two years in advance. All retirements begin on the first of a month.

Planned Termination Date

Employees must terminate their employer/employee relationship prior to the date of retirement. For most persons retiring under a Service, Early, Veteran or Disability Retirement, the date of termination will be the last day of the month prior to their retirement date. For Deferred Retirements and some Service Retirements, the termination date may be well in advance of the retirement date. By correctly providing this information, the Division can correctly estimate the amount of service credit a member will have upon which to base a retirement benefit.

Beneficiary Information

Should a member desire an estimate that includes amounts for Options 2, 3, 4, A, B, C, or D, beneficiary information must be included here. The Division will need the name and birthdate of the prospective beneficiary in order to complete these calculations.

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Retirement Application - TPAF and PERS

The Application For Retirement Allowance is completed in its entirety by the member. The member's signature is required on the application in at least two locations. Certain option and beneficiary choices require additional member signatures, so please check the application carefully. Make sure the member has signed in all applicable locations, in order to prevent delays in processing the retirement application. The signature will be verified when the application is keyed into the Division's system.

Please note that the application no longer requires notarization.

Loan information is also no longer requested on the retirement application. It is assumed that if the member has an outstanding loan, it will be 'carried' into retirement. All retirees can 'carry' their loans into retirement at the same monthly repayment level as when they were an active member. (Biweekly loan payments are converted to monthly payments by multiplying the biweekly payment by 2.175.) Interest will continue to accrue at 4.00% if the member chooses to 'carry' the loan. The member may choose to pay off the loan in a lump sum before retiring, by requesting a loan payoff quote and by making the quoted total payment by the payoff date given.

PART ONE: Member Information

Pension Fund

The member's pension fund (PERS or TPAF) is required in Item 1. The member checks the correct box.

Membership Number

The membership number should be provided. A member's membership number can be obtained from the Quarterly Report of Contributions or from the Division of Pensions and Benefits.

Item 3 is the member's Social Security number.

Member's Personal Data

In Items 4 - 8 of the application, the member's name, address, e-mail address at home, and the member's phone numbers at home and at work are requested.

Retirement Date of Member

In Item 9, the member indicates his or her effective retirement date. The effective date of retirement must always be the first of a month. The application must be received in the Division prior to the member's effective retirement date.

Date of Birth

Item 10 is for the member's date of birth. Include the month, day, and year of birth. Proof of age will be required from the member if it has not already been submitted.

Salary Information

In Item 11, the member provides salary information by answering, "Were the last 3 years of service also the years during which you earned the highest salaries?"  

If "no", the member can direct the Division to the three fiscal years (July 1 - June 30) that the member feels are the highest. (Certain Veteran Retirement calculations are an exception.) Three spaces are provided for each of the member's three highest fiscal years' salaries. It is not necessary for the three highest fiscal years to be consecutive.

Purchase Information

For Item 12, the box provided should be checked if the member has applied to purchase service credit within six months of filing this retirement application.

Service credit purchases cannot be 'carried' into retirement. Prior to retiring the member must make a lump sum payment for the balance of the service credit purchase to receive full service credit. If the member does not wish to pay off the balance, the member will receive prorated credit for the amount of service that has been paid for.

Spouse Information

In Item 13, the member writes his or her spouse's name; Item 14 is for the spouse's home address, if it is different from the member's. This information is needed for the letter to the member's spouse notifying the spouse if the member takes the Maximum Option pension benefit. This letter is sent by certified mail.

If the member is not married, or is widowed or divorced, the member should write N/A here, for not applicable.

PART TWO: Type of Retirement Requested

In Part Two, the type of retirement the member wishes to select is indicated. The type of retirement can be any one of the following as long as the member qualifies:

  • Service: Age 60, any number of years of service credit.

  • Early: Under 60, 25 or more years of service credit.

  • Veteran: See "Veteran Status" in the Enrollments Procedures Guide for all eligibility criteria.

  • Deferred: Age 60, at least 10 years of service credit, not in service with employer at retirement.

 

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PART THREE: Pension Payment Options

Available Payment Options in Retirement.

Here, the member chooses a method of payment from the nine pension payment options available.

The payment option selected by the member allows the member to determine the type of survivor's benefit, if any, that will be payable to a chosen beneficiary upon the retiree's death. Beneficiary  information must be supplied for Options 1, 2, 3 and 4, and also for Options A, B, C and D (See Fact Sheet #5). Selecting any of these options (1, 2, 3, 4, A, B, C, or D) reduces the member's benefit from the Maximum Option Allowance. There is no monthly pension survivor benefit when the Maximum Option is chosen.

Once the benefit is "due and payable", the payment option cannot be changed. When electing the Maximum Option Allowance or Options 1, 2, 3, or 4, the member receives the selected benefit for life. However, if the member chooses options A, B, C or D, and the chosen beneficiary dies before the member, the member's monthly benefit is increased to the amount paid under the Maximum Option.

     
 

Links to Brief Descriptions of the Options

 
 

Maximum Option

 
 

Option A

 
 

Option B

 
 

Option C

 
 

Option D

 
 

Option 1

 
 

Option 2

 
 

Option 3

 
 

Option 4

 
     

 

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Retirement Option Beneficiary

In this section, the member names the beneficiary who will receive the retirement benefit determined by the option selected by the member. The beneficiary's Name, Address, Relationship, and Date of Birth are required. The SS# is optional.

Under options 2 , 3, A, B, C and D, only one primary beneficiary may be listed; multiple beneficiaries are allowed under Option 1 and Option 4. Multiple beneficiaries are allowed under the Maximum Option as well, but remember, there is no monthly pension allowance paid to the beneficiary (ies); the beneficiary (ies) will only receive a return of contributions if any remain, and the last check benefit.

Since multiple beneficiaries may be selected by the member for Option 1 or Option 4, page four of the "Application for Retirement Allowance" provides space for additional beneficiary information. If multiple beneficiaries are chosen to receive a return of any unused contributions under the Maximum Option, this information can be written on page four as well. The member must then sign and date page four of the application.

Page four should not be used for Options 2, 3, A, B, C, or D.

If more than five primary beneficiaries are chosen for Option 1 or Option 4, or for any unused pension contributions under the Maximum Option, the additional beneficiaries can be listed on an attached sheet, signed and dated by the member.

Primary Beneficiaries receive the survivor's pension benefit as defined by the option selection (see Pension Payment Options). If the member chooses multiple primary beneficiaries under the Maximum Option or Option 1 and one beneficiary predeceases the member, the remaining beneficiary(ies) will usually split that beneficiary's share. Some unusual designations are allowable, but uncommon.

Under Maximum and Option 1, the beneficiary may be any person(s), an institution, charity, their estate, etc. If the person listed is not related, "friend" should be listed. If a charity or institution is listed, an incorporation date is required in lieu of date of birth. Under Maximum, the beneficiary(ies) will receive any undistributed contributions remaining at the member's death. If no beneficiary is listed for the Maximum or Option 1 benefits, any unused pension benefits will be payable to the member's estate.

Additional primary beneficiaries should be listed on page four of the retirement application first; if the member wishes to name more than five primary beneficiaries for Options 1, 4, or Maximum, the list should be continued on an attached sheet signed by the member, as noted above.

Contingent Beneficiaries are paid only if all the primary beneficiaries predecease the member. The same information is required for contingent beneficiaries as for primary beneficiary(ies). Under Options 2, 3 ,4, A, B, C, and D, the contingent beneficiary would only be entitled to the return of the member's unused contributions, if any, and a last check benefit (similar to the benefits under the Maximum Option). Under Option 1, the contingent beneficiary would receive the amount of the member's retirement reserve that remains if none of the named primary beneficiaries are living.

Contingent beneficiaries can be listed on an attached sheet which is signed and dated by the member.

Member's Signature.

The member must sign and date below the beneficiary and retirement option information, indicating that the information is correct, in order for the retirement application to be processed.

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PART FOUR: Designation of GLI Beneficiaries.

Group Life Insurance

Non-disability retirees must have at least 10 years service credit and life insurance as active members to qualify for Death Benefits. Disability retirees qualify upon retirement approval if they have life insurance as active members.

Primary Beneficiary(ies)

The primary beneficiary receives the group life insurance, if any. If the member chooses multiple primary beneficiaries and one beneficiary predeceases the member, the remaining beneficiary(ies) will usually share that beneficiary's portion. Some unusual designations are allowable, but uncommon. Unless otherwise stated, if multiple beneficiaries are listed, they are considered "share and share alike." If the member had no active group life insurance coverage through the pension fund, then the member will not have group life insurance coverage as a retiree.

The following information should be provided: Beneficiary's Name, Relationship to the member (spouse, daughter, son, father, mother, friend, grandchild, etc.), Birth Date of the beneficiary, and SS# of the beneficiary (this is optional, but helps the benefit processing at the time of member's death). If no beneficiary is listed, the death benefits will be payable to the member's estate.

Contingent Beneficiaries

Contingent Beneficiaries are paid only if all the primary beneficiaries predecease the member. The same required information is needed for these beneficiaries as for the Primary Beneficiary(ies).

Additional beneficiaries for either Primary or Contingent beneficiaries can be listed on an attached, signed and notarized sheet.

SIGNATURE OF APPLICANT

If the member's signature is missing, the application can not be processed. If any additional sheets for the retirement application are attached, then these additional sheets must also be signed and dated.

 

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Certification of Service and Final Salary - TPAF and PERS Retirements

The certification form is completed by the member's Employer(s). If the member is active at more than one employer at retirement, all active locations must submit a complete "Certification of Service and Final Salary".

If the member had more than one employer and was only active at one location at the time of retirement, only that certification is required in full. The inactive locations must only submit a certification with question #6 completed.

If the member is not active at retirement, only the last location's certification is required (minimum of question # 6 to be answered).

Please indicate the Pension Fund to which the member belongs.

Line 1. Name of Member (check to ensure correct member).

Line 2 Membership No.(M/S#)

Line 3. Social Security No.(SS#)

Line 4a. Employing Agency (name of employer)

Line 4b. Employer Location No. (Employer's pension ID number)

Line 5. Date Service Terminated:

This is the member's last date of employment with the employer. The member should not be employed (on payroll) by this employer after this date. (In some PERS cases, the member may return to limited employment after retirement with the same employer after at least a 30 day break in service from the member's retirement date).

Notable Exception: Elected Officials.

Line 6. Was the Employee Employed Part-Time?

Please indicate Full-time or Part-time status here.

Line 7a. Is the member currently on suspension?

If this is answered YES, the employer is to state the date suspension began and mark the box stating if the member is PAID or UNPAID while on suspension.

Line 7b. Is the applicant facing disciplinary action or indictment?

If this is answered YES, a detailed explanation must be submitted by the employer. The Division will review the explanation to determine if it is sufficient for continued processing, additional information is needed, or submission to the system's Board of Trustees (BOT) is required.

IF either 7a or 7b are answered YES, copies of the preliminary and final notices of disciplinary action, or the equivalents, or a copy of the indictment should be included.

Line 8. List unpaid leaves of one month (pay period for state locations) or more, within the last 12 working months.

This information shows gaps in service due to Leave of Absence (LOA). Some LOAs can be purchased by the member. A LOA for a work related incident may indicate a possible Worker's Compensation claim. If Worker's Compensation is determined, the employer may be required to submit pension contributions, until retirement, on the member's behalf.

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Line 9. Base salary subject to pension fund contributions paid for the last full year of service....

Last 12 months (10 months if applicable) of salary must be indicated. Salary should be reported by the number of months at a given salary, the amount of the monthly base salary, the beginning and ending dates of that salary and the total base salary for the period. Salary beyond the last reported quarter is to be projected to the best of the employer's ability.

Line 10. If the member has received a significant annual salary increase in the last 3 years of employment.?

If the answer is yes, the employer must furnish cause for the increase, with documentation. The Division may approve the increase, if justifiable, deny the increased salary, or forward the case to the Board of Trustees for determination.

Line 11. Has there been any retroactive salary paid to the employee within the past three years?

A retroactive salary increase can falsely inflate a member's salary if it is not properly credited back to the correct dates. Retroactive salaries can also incorrectly show a single salary increase, when in fact it may cover several years of increases. The beginning and ending dates should show for each retroactive increase and the corresponding new annual base salary.

If the member receives a retroactive raise after the original Certification has been sent to the Division, a new Certification must be sent in. The new Certification should state 'Amended' or 'Revised for Retroactive Raise.'

See the Quarterly Report of Contributions: Revised Certification Section.

Line 12. The following deductions have been made or will be made from the member's base salary during the final two quarterly periods including the quarter in which service terminated.

The employer indicates the actual and/or projected base salary subject to pension contributions for the last two quarters preceding the member's termination date. Also noted in this section are the amounts of actual and/or projected payroll deductions for: Pension Contributions, Loan Repayment, Back Deductions (including the number of payments taken), Arrears (and/or Purchases) deductions, and the Total Pension Deductions taken (and/or projected to be taken) by the employer and remitted to the Division for this member.

State employers must attach a screen print of the member's TREADHOC biweekly certification with salaries projected until termination date in lieu of completing Item 11.

Completed by: denotes who actually completed the form.

Phone number is the phone number of the person who completed the form. This number allows us to directly contact the employer for any follow up questions we may have on the Cert.

Signature of Certifying Officer is where the individual responsible for this information at each location signs that this information is correct. Each location has one Certifying Officer. This signature must be an original signature and can not be a stamped signature.

Date is when the form was signed by the Certifying Officer. The date signed is helpful when more than one Certification is received by ensuring that the most recent Certification is used. Usually more than one Certification is received when there is a retroactive raise (marked "Revised for Retro" or "Retroactive Raise") or a change in the Certification (marked "Amended").

NOTE Concerning Workers' Compensation:

 If the member is receiving periodic payments from Workers' Compensation, the employer may be required to pay the member's pension contributions until the member's effective date of retirement. No loan payments, back deductions, or arrears payments are required from the member or the employer while the member is on Workers' Compensation. Whenever possible, an official statement of the Workers' Compensation award showing the amount of the periodic benefits and the beginning and ending dates of the benefits awarded should be attached, or mailed in under separate cover.

 

 

 

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Last Updated: August 5, 2003