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Pensions and Benefits

  1. Who is eligible to withdraw?
  2. What is inactive membership?
  3. How do I apply for withdrawal?
  4. What happens to my Group Life Insurance when I withdraw?
  5. If I am taking another job in New Jersey government, must I withdraw?
  6. I have 10 years of service credit, but have not reached normal retirement age. Must I withdraw?
  7. What is payable when I withdraw?

1. Q: Who is eligible to withdraw?

A: To withdraw the balance of your pension contributions in a lump sum, you must have resigned your position and no longer be employed in a covered position.

  • If you hold more than one position covered under the pension fund (multiple membership), you cannot withdraw until you have terminated all employment covered by the pension fund.

  • Withdrawal is not permitted by law if you are on a leave of absence granted by your employer.

  • If you were dismissed from your position and are in the process of appealing that dismissal, you cannot withdraw your contributions until a decision has been rendered or your appeal is withdrawn.

  • An employee who is receiving periodic Workers’ Compensation benefits as the result of an injury incurred in public employment is considered an active employee and an active member of the pension fund. If you are receiving Workers’ Compensation benefits, or have a case pending, applying for withdrawal from the pension fund could jeopardize your rights to benefits. In such cases, the Division will require that you complete an additional retirement benefit waiver form.

2. Q: What is inactive membership?

A: When you resign your position, you may leave your contributions on deposit and continue an inactive membership in the fund for a maximum period of two years.

Should you return to active service in a position covered by the pension fund before the expiration of your membership, you may reactivate your account with the same service credit established at the time you ceased employment.

The period during which you were inactive will not count as service credit for retirement.

If your position was abolished due to a layoff, your employer must notify the Division of Pensions and Benefits in writing, and your membership in the fund can remain inactive for a maximum of ten years (five years for PFRS members).

3. Q: How do I apply for withdrawal?

A: You must complete the Application for Withdrawal which is available through the Member Benefits Online System (MBOS). Paper withdrawal applications are no longer accepted (except as indicated below).

  • If you already have an MBOS account, Log on to MBOS and select the "Application for Withdrawal" to apply for your withdrawal online.

  • If you are not registered with MBOS, Sign up for MBOS here!

Once your application for withdrawal is submitted, your former employer will be contacted to complete the Employer‘s Certification for Withdrawal. Your withdrawal claim cannot be paid until your former employer has completed this form.

If you are a member of the New Jersey State Employees Deferred Compensation Plan or Supplemental Annuity Collective Trust (SACT), you must file separate applications for withdrawal from those plans. You can obtain an application by calling the Deferred Compensation Plan at 1-866-NJSEDCP, or SACT at (609) 633-2031.

4. Q: What happens to my Group Life Insurance when I withdraw?

A: Group Life Insurance coverage will expire 31 days after your termination of employment. You may convert all or any part of your insurance to an individual policy by contacting the Prudential Insurance Company of America, Inc. at 1-855-364-7783.

Contributions made for Contributory Group Life Insurance are not refundable upon termination of employment.

5. Q: If I am taking another job in New Jersey government, must I withdraw?

A: If you are terminating employment to accept another position covered by any government agency in New Jersey (except federal government), you may transfer your account. Please call the Office of Client Services at (609) 292-7524 for more information.

6. Q: I have 10 years of service credit, but have not reached normal retirement age. Must I withdraw?

A: If you have established at least 10 years of service credit and have not reached normal retirement age, you can apply for Deferred Retirement, whereby you begin collecting a monthly pension at the normal retirement age. For more information about Deferred Retirement see Fact Sheet #14, Deferred Retirement Adobe PDF (43K).

Normal retirement age for the Public Employees' Retirement System (PERS) and the Teachers' Pension and Annuity Fund (TPAF) is age 60 for Tier 1 and Tier 2 members, or age 62 for Tier 3 and Tier 4 members. Normal retirement age for the Police and Firemen's Retirement System (PFRS) or the State Police Retirement System (SPRS) is age 55.

You are not eligible for Deferred Retirement if you withdraw your contributions.

7. Q: What is payable when I withdraw?

A: If you terminate employment or cease to be an employee for any reason other than death or retirement, you shall receive all of the accumulated deductions standing to your credit in your individual account less any outstanding loan balance.

Withdrawing members of the PERS or TPAF who have at least three years of contributing membership service at the time the service ceases will have interest credited.

No interest is payable to withdrawing members of the PFRS or SPRS.


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