Retirement Plans

Public Employees' Retirement System (PERS)

The Public Employees' Retirement System (PERS) is a defined benefit plan where the retirement benefit is based on a formula and guaranteed by the State.

Membership Tiers and Eligibility

The passage of Chapters 92 and 103, P.L. 2007, Chapter 89, P.L. 2008 and Chapter 2, P.L. 2010, changed the enrollment and retirement criteria for PERS members enrolled as of certain dates.  These differences in PERS membership are referred to as "membership tiers".  Please refer to the PERS Membership Tier Chart for additional information.

PERS Pension Contribution Rates

How to Enroll

Complete a PERS Enrollment Application

Please return the completed forms to your Human Resources

PERS Retirement Overview

Police and Firemen's Retirement System (PFRS)

The Police and Firemen's Retirement System is a defined benefit plan where retirement benefit is based on a formula.


  • Permanent, full-time law enforcement officers in an eligible PFRS job title must meet the age requirement (a prospective employee must not be one day past their 35th birthday to qualify for enrollment); training requirement (must be certified in the basic training course for police officers as prescribed by the Police Training Commission)  and medical requirements (must have a medical examination).
  • Employees holding "F" or "J" visas are not eligible to enroll.


Employee Contribution

10% of base salary made on a pretax basis

Employer Contribution

Determined annually by the state


10 Years

How to Enroll

  • Complete a PFRS Enrollment Application, Report of Examining Physician, and Proof of Age Documentation
  • Please return the completed forms to Human Resources

PFRS Retirement Overview

Defined Contribution Retirement Program (DCRP)

The Defined Contribution Retirement Program (DCRP) provides eligible members with a tax-sheltered, defined contribution retirement benefit, along with life insurance and disability coverage.


  • An employee who is ineligible for PERS (Public Employee Retirement System) because the hours of work are fewer than those required for membership [or a Tier 3 PERS member whose annual salary falls below the minimum required for eligibility is eligible for enrollment in the DCRP provided the annual salary is $5,000 or higher. Employees enrolled in PERS on or after July 1, 2007, who earn salary in excess of established “maximum compensation” limits; and
  • Employees otherwise eligible to enroll in PERS on or after November 2, 2008, who do not earn the minimum annual salary for PERS Membership Tier 3 enrollment, (subject to adjustment in future years) but who earn salary of at least $5,000 annually].

DCRP Plan Overview

Alternate Benefit Program (ABP)

The Alternate Benefit Program (ABP) is a defined contribution plan where retirement benefits are based on employee and employer contributions and investment performance.  The plan provides group term life insurance coverage and LTD benefits after the vesting period.


  • Regularly appointed faculty
  • Visiting professors
  • Part-time lecturers
  • Managerial, Professional, Supervisory, Confidential and Administrative staff
  • Employees holding "F" or "J" visas are not eligible to enroll.

ABP Plan Overview

Pension Loans

Public Employees’ Retirement (PERS) and Police and Fire Retirement System (PFRS) Participants


  • Must be an actively contributing member of PERS or PFRS.  Retirees and members who are not in a “regular” pay status (i.e., suspended without pay or on a leave of absence) are not eligible for a pension loan
  • Must have three years of contributing membership posted to your account
  • Permitted no more than two loans in a calendar year

How to Apply

Submit your loan request online using the Member Benefits Online System (MBOS)

How Much You Can Borrow

The minimum amount you may borrow is $50.00.  Loans then increase in multiples of $10.  You may borrow up to one half of your posted pension contributions to a maximum of $50,000, whichever is less.

Interest on Loans

Interest is charged on a loan at a commercially reasonable rate set annually by the NJ State Treasurer.  For eligible borrowers, the interest rate for loan applications received in 2014 is 5.25% per annum on the declining balance of the loan.  An administrative processing fee is $8.00 per loan.

Repayment Amount

The minimum deduction toward repayment of any new loan is equal to the normal pension contribution rate of your salary at the time you apply for the loan.  In most instances, your minimum loan repayment amount will be the same whether you borrow $500 or $5,000; however, the repayment of a larger loan will continue for a longer period of time than for a smaller loan.  PERS and PFRS loans are repaid through payroll deductions.


Maximum Loan Deduction

The maximum deduction toward the repayment of your loan is 25% of your base salary.

Note: The Internal Revenue Service regulations require that all loans taken after January 1, 2014, have a maximum repayment schedule of 5 years. 

If you have an outstanding PERS or PFRS pension loan balance and plan to take another loan, you must repay the combined balance of the original loan and all subsequent loans within five years of the issuance date of the FIRST LOAN.


Loans for Alternate Benefit Program Participants

Loans for members of the Alternate Benefit Program (ABP), which include participants enrolled in TIAA-CREF, ING Financial, MetLife, Mass Mutual, Equitable, VALIC and Prudential pension plans.


  • Vested members of the ABP are eligible to receive loans based on their account balances.
  • Members should contact their investment carrier(s) for applications and repayment procedures

Loan Application Forms cannot be signed if:

  • The total outstanding loan(s) and the newly requested loan is in excess of $50,000 or 45% of total assets
  • Loan request is submitted by a former employee (Loans are not available to former employees)

How to Apply

  • Contact the Investment Carrier directly for the Loan Application
  • Submit the Loan Application Form requiring Employer's Authorization signature to your Human Resources Office representative
  • Loan applicants may contact the Investment Carrier directly for current loan status

Interest - Current rate is 8%

Repayment - Loans are paid quarterly directly to the Investment Carrier.


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