- July 2014 6.92%
- July 2015 7.06%
- July 2016 7.20%
- July 2017 7.34%
- July 2018 7.50%
- Ten (10) year vesting based on credited service (years of pension contributions)
- Service Retirement- Age Requirements: may retire regardless amount of service credit:
- Members enrolled in Tiers 1 and 2: age 60
- Members enrolled in Tiers 3 and 4: age 62
- Members enrolled in Tier 5: age 65
PERS Formula Used to Calculate Maximum Annual Pension
- Membership Tiers 1, 2 and 3
(Years + months of service)/55 x average of the highest 3 years of membership or any highest fiscal years - Membership Tiers 4 and 5
(Years + months of service)/60 x average of the last 5 years of membership or any 5 highest fiscal years
Purchasing Service Credit
- It may be beneficial to purchase additional service credit for prior public service
- Examples of service that members may be eligible to purchase include: temporary service (prior to enrollment), leave of absence without pay, former membership service, out-of-state service, U.S. government service or military service
- Request to purchase service credit is submitted online through Member Benefits Online system (MBOS).
For additional information
Division of Pensions and Benefits PERS websiteAlternate Benefit Program (ABP)
ABP Retirement Plan Eligibility
University Hospital employees hired July 1, 2013 and after are not eligible for enrollment in this plan.
UMDNJ employees enrolled in ABP and became University Hospital employees on July 1, 2013 are eligible to continue membership in ABP.
ABP Plan Highlights
- A defined contribution plan
- Retirement benefits based on investment growth over time and type of payout option selected
- Members allocate contributions to State-authorized investment carriers
- Members hired July 1, 1996 or later, contribute 5% of base salary pretax up to the annual compensation limit of $290,000 for 2021. Members hired prior to July 1, 1996 are grandfathered and not subject to this provision
- There is an 8% employer match that is limited to an annual salary of $141,000 based on state regulations
- Loans are permitted
- Vesting:
- Immediate if employee owns a retirement contract from a previous employer in the field of higher education or is an active/vested member of a state-administered retirement system
- Twelve (12) month delayed vesting for newly eligible employees who do not meet the above criteria
- Members in delayed vesting status who terminate employment with UH will receive their contributions only (not employer contributions)
State-authorized Investment Carriers
Purchase of Service Credit Option is not available under this retirement plan.
Employees enrolled in ABP under UMDNJ who separate employment from University Hospital through no fault of their own and become re-employed by UH within two (2) years of separation are eligible to resume the ABP membership.
For additional information:
Division of Pensions and Benefits ABP website
Defined Contribution Retirement Program (DCRP)
DCRP Eligibility
- Hired after May 21, 2010 earning more than $5,000 and scheduled hours are less than 35 hours per week
- PERS (Tier 4 & 5) members whose scheduled hours are reduced to below 35 hours per week
- PERS (Tier3) members with earnings below the minimum base salary. Waive (irrevocable election)
- Optional enrollment for PERS (Tiers 2,3,4 & 5) members who earn over the maximum wage limit $160,200 in 2023
DCRP Plan Highlights
- A defined contribution plan
- Retirement benefits based on investment growth over time and type of payout option selected
- Members allocate contributions to State authorized investment carrier (Prudential Retirement)
- Employee contributions – 5.5% of annual base salary
- Employer contributions – 3%
- Up to the annual compensation cap of $330,000 in 2023
- Vesting employer contributions are not vested in DCRP until after the member commences the second year of employment or unless the member is a member of another State administered pension plan
- A PERS member enrolled in DCRP is immediately vested
- Purchase of Service Credit Option is not available under this retirement plan
For additional information:
Division of Pension and Benefits DCRP website.Life Insurance
Plan Highlights
- Underwritten by the Prudential Insurance Company
- Payable to named beneficiary
- New PERS and DCRP members age 60 or older require proof of insurability prior to enrollment
- Ceases 31 days after termination of employment
Public Employees’ Retirement System (PERS)
Coverage amount:
- Non-contributory amount = one and a half times (1.5 x) the total annual base salary upon which your pension contributions were based during the year preceding your death during active service (100% employer paid)
- Contributory amount = one and a half times (1.5 x) the total annual base salary upon which your pension contributions were based during the year preceding your death during active service (100% employee paid)
- Members hired July 1, 2007 or later will have their annual base salary capped at the annual Maximum Compensation Limit
- Cost of contributory life insurance to employee = annual base salary x .0050
- Member may cancel contributory portion after one (1) year
- Irrevocable decision for members who cancel, they cannot be reinstated
Alternate Benefit Program (ABP)
- Coverage amount = three and a half times (3.5 x) annual base salary received prior to death (prorated in the first year)
- Members hired on July 1, 1996, or later will have their annual base salary capped at $1,732,850 in 2023
- No cost to employee
Defined Contribution Retirement Program (DCRP)
- Coverage amount = one and a half times (1.5 x) annual base salary (prorated in first year)
- No cost to employee
Changing Group Life Insurance Beneficiary
- Change anytime
- Designation of Beneficiary form for ABP or DCRP & PERS.
Waiving Group Life Insurance Coverage Over $50,000
- Change anytime
- Members can elect to waive insurance coverage over $50,000
Additional information:
NJ Division of Pension and Benefits Group Life Insurance website
Long-Term Disability
Plan Highlights
- Underwritten by the Prudential Insurance Company
- Ceases 31 days after termination of employment
Public Employees’ Retirement System (PERS)
- Members enrolled on/or prior to May 21, 2010
Ordinary Disability Retirement – 43.6% of retirement allowance
Accidental Disability Retirement – 72.7% of retirement allowance - Members enrolled after May 21, 2010
Disability Insurance – 60% of base monthly salary offset by Social Security and Workers Compensation
Defined Contribution Retirement Program (DCRP)
- 60% of base monthly salary offset with Social Security and Workers Compensation
Alternate Benefit Program (ABP)
- 60% of base monthly salary offset with Social Security and Workers Compensation
Loan Requests for PERS
Eligible PERS member who wishes to borrow against their pension account must submit the loan request online using the Pension Loan Application accessible through a personal account with the Member Benefits Online System (MBOS).
Additional Information
Division of Pensions and Benefits website Pension LoansWithdrawals for PERS
Effective February 23, 2022, inactive members electing to take a lump-sum withdrawal of their pension contributions will require disbursement via Electronic Funds Transfer (EFT), also known as direct deposit. Paper checks will no longer be issued for lump-sum withdrawals.
All inactive members must use the Member Benefits Online System (MBOS) to apply for a withdrawal. Those electing a lump-sum withdrawal will also be required to submit a valid ACH bank routing number and account number. Once the NJDPB verifies that the account and routing numbers are valid, the funds will be deposited in the member’s account, minus 20 percent for federal income tax on the taxable portion of payment. Members should allow at least three weeks for processing.
The process is not changing for those electing a direct rollover of their funds to a qualified IRA or employer plan, or those electing a partial rollover with the remainder of funds payable to the member. Members electing a direct rollover will still receive a paper check payable to the qualified institution for their deposit, and those electing a partial rollover will receive two checks; one payable to the financial institution for their deposit, and one payable to the member for the remaining portion of the payment, minus 20 percent federal income tax on the taxable portion.
