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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 the Public Employees' Retirement System
and the Teachers' Pension and Annuity Fund 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 with the New Jersey Department
of Military and Veteran's Affairs).
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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:
- Call Client Services at (609)
292-7524,
- Visit the Division at 50 West
State Street, Trenton for an interview, or
- Fill out and submit a Request
for a Retirement Estimate form.
View
Instructions on completing the Request for a
Retirement Estimate form.
The Division suggests that retirees
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
|
SERVICE RETIREMENT |
|
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 |
|
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.
|
|
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. |
|
Notes |
-
Maximum monthly benefit
is Annual Maximum divided by 12.
-
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). 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.
|
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|
EARLY
RETIREMENT |
|
Eligibility: |
Under age
60 with 25 or more years of service. |
|
Benefit Formula: |
If age 55 or older,
same calculation as a Service Retirement = Years
& Months of Service ÷ 55 X Final Average
Salary (FAS) = Annual Maximum
If under age 55,
a reduction of .25% per month under age 55 is used (3%
per yr.)
Revised Early Retirement Benefit for New Employees: Under Chapter 103, for members enrolled on or after July 1, 2007 who retire with 25 or more years of service before reaching age 60, the retirement allowance will be reduced 1% per year (1/12 of 1% per month) for each year the member is under age 60 through age 55; and by 3% per year (1/4 of 1% per month) for each year the member is under age 55. |
|
Member Responsibilities: |
-
Complete Application
for Retirement Allowance and submit to Pensions
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 |
|
|
-
Maximum monthly benefit
is Annual Maximum divided by 12.
-
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). Fiscal Years do not have to consecutive.
-
Member should note on
the Application for Retirement if the
last three years are not the highest years.
|
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|
DEFERRED
RETIREMENT |
|
Eligibility: |
Effective at age 60
with 10 or more years of service.
|
|
Benefit Formula: |
Years & Months of
Service ÷ 55 X Final Average Salary (FAS) = Annual
Maximum
|
|
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: |
-
Maximum monthly benefit
is Annual Maximum divided by 12.
-
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). Fiscal
Years do not have to consecutive.
-
Member should note on the
Application for Retirement if the last three
years are not the highest years.
-
Deferred retirements can
only change their options up to one month prior
to their effective retirement date.
|
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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.
|
|
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 have been 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
|
|
|
* 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
No age requirement
for Accidental or Ordinary Disability
|
Ordinary
Disability |
|
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 |
|
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.*
*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 |
|
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.
|
|
Notes |
Maximum monthly benefit
is Annual Maximum divided by 12 |
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