July 1, 2006 PERS TPAF PFRS. Office of Legislative Services State House Annex P.O. Box 068 Trenton, New Jersey 08625

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1 July 1, Retirement for Service Age 60, no minimum years of service, 1/64 FC x number of years of service for Class A service and 1/55 of FC x number of years service for Class B service..s.a. 43:15A-47, -48.S.A. 18A:66-43, -44 Age 55, no minimum years of service OR years service at any age (if enrolled in PFRS on 1/18/2000). (i) less than 20 years of service - 2% of FC x no. years service; (ii) years service - 50% of FC; (iii) 40 years service - 70% of FC plus 1% of FC for each year over 40, (iv) mandatory retirement at age 65 with 20 or more years service - 50% of FC plus 3% FC for each year service over 20 up to 25..S.A. 43: 16A-5. Ag 50% tha 3% ove mo plu serv (ma death benefit 3/16 of FC. ½ of FC. ½ o

2 2. Deferred Retirement Eligible after 10 years service; Benefit equals refund of accumulated deductions plus, if the member has completed three years of service, interest allowed thereon; or a deferred retirement benefit commencing at age 60, equal to the service retirement, based on service and FC at date of termination..s.a. 43:15A-38..S.A. 18A: Prior to age 55 and 10 years of service, benefit equals a refund of accumulated deductions. Prior to age 55 and after 10 years service (but less than 20 years service if a member on 1/18/2000 or less than 25 years of service if a member after 1/18,2000), benefit equals 2% FC x no. years of service up to 30 plus 1% FC multiplied by years of service over 30..S.A. 43:16A Prio serv of a def 2% up no. beg death benefit Benefit equals aggregate contributions plus interest; after age 60, 3/16 of FC. Before age 55, return of contributions; after age 55, ½ of FC. Bef con FC

3 3. Early Retirement (PERS, TPAF) and Special Retirement (PFRS, SPRS) 25 years service before age 60, 1/64 FC x no. years service for Class A service and 1/55 FC x no. years service for Class B service, reduced by ¼ of 1% for each month retirement date precedes age 55. Special Retirement after completion of 25 or more years of credited service, 65% of FC plus 1% of FC x no. of years of service over 25 to 30 (maximum 70% of FC). Spe com of s of F ove of F.S.A. 43:15A-41..S.A. 18A: S.A. 43:16A death benefit Return of contributions + lump sum 1½ x FC. 3/16 of FC. ½ of FC. ½ o

4 4. Veterans Retirement Eligible if member attains age 60 and completes 20 years of service or age 55 and completes 25 years of service, benefit equals 54.5% of highest 12- month contributory compensation; or age 55 with 35 years of service, benefit equals 1/55th of FC for each year of service. Member as of 1/1/1955, 50% of FC..S.A. 18A: None. No.S.A A-61.

5 death benefit Same as for service retirement, except for member as of 1/2/55, 1½ x FC before age 60; age 60+, 3/16 of FC.

6 5. Ordinary Disability Retirement Eligible after 10 years of service. Benefit equals annuity plus an employer pension which, together, equal 1.64% of FC for each year of service; minimum benefit 43.6% of FC..S.A. 43:15A-45.S.A. 18A-66:39, -41. Eligible after 4 years of service, must be under age 55, 1½% of FC x no. of years of service, but not less than 40% of FC. More than 20 but less than 25 years service, 50% FC plus 3% of FC x no. of years of service over 20 but less than 25 (maximum 65% of FC)..S.A. 43:16A-6. Elig mu FC not tha serv x n but of F death benefit Under age 60, 1½ x FC; age 60+, 3/16 x FC. Under age 55, 3½ x FC; after age 55, ½ x FC. Un age

7 6. Accidental Disability Retirement Eligible upon total and permanent disability prior to age 65 as a result of a duty injury. Benefit equals a member annuity plus an employer pension which, together, equal 72.7% of contributory compensation at the date of injury.? x actual annual compensation at time of accident or at the time of retirement, whichever is higher.?.s.a. 43:15A-46..S.A. 18A S.A. 43:16A-7. death benefit Under age 60, 1½ x FC; after age 60, 3/16 x FC. To age 55, 3½ x FC; after age 55, ½ x FC. To 55,

8 7. Active Death (non-accidental) Eligible if active. Return of aggregate contributions with regular interest + an amount equal to 1½ times contributory compensation at date of death..s.a. 43:15A-41..S.A. 18A: Active member with death occurring on or after 1/18/2000, lump sum payment equal to 3½ x FC to beneficiary. In addition, a pension is paid as follows: 50% of FC to surviving spouse. If no surviving spouse, 20% of FC one child; 35% of FC to two children, 50% of FC to three or more children. If no surviving spouse or children, a pension of 25% of FC to one parent, 40% of FC to two parents..s.a. 43:16A-9 Lum x F of 5 rem spo rem chi (3 o spo 25% par

9 Optional (contributory) death benefit Various forms of payment of equivalent actuarial value are available to retirees..s.a. 43:15A-57. Additional, employee-paid death benefit is available. Benefit prior to retirement is 2 times FC. Benefit after retirement is 1/4 times FC..S.A. 18A: None. No

10 8. Accidental Death (service connected) Eligible upon death of an active member resulting from performance of duty. Pension of 50% of FC to surviving spouse until death or remarriage. No surviving spouse, death or remarries, pension of 20% (1 child), 35% (2 children), 50% (3 or more children). If no spouse or child, a pension of 25% of FC (1 parent) or 40% (2 parents). In addition, employer-paid lump sum ordinary death benefit is paid (1 ½ FC)..S.A. 43:15A-49..S.A. 18A:66-46 Eligible upon death of an active member resulting from performance of duty. Accumulated Deductions plus 3½ x FC to beneficiary., plus pension of 70% of FC to surviving spouse. No surviving spouse or upon death of surviving spouse, pension of 20% of FC (1 child), 35% (2 children), 50% (3 or more children). If no surviving spouse or child, a pension of 25% of FC (1 parent) or 40% (2 parents)..s.a. 43:16A-10. Elig me per equ equ equ spo upo pen 35% mo spo 25% par

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12 9. Retiree Death At retirement, member may elect reduced retirement allowance during own life with survivor to receive: (i) if death occurs before retiree has received entire present value at retirement of expected lifetime allowance, balance to beneficiary; (ii) upon death, allowance continued to beneficiary; (iii) upon death, ½ of allowance continued to beneficiary; (iv) upon death, some other benefit continued to beneficiary or (v), If nominee dies prior to member, member's allowance shall increase to maximum..s.a. 43:15A-50..S.A. 18A: After retirement and after age 55, ½ x FC to beneficiary. In addition, a pension is paid as follows: 50% of FC to surviving spouse plus 15% of FC (1 child) or 25% (2 or more children). If no surviving spouse or remarries, a pension of 20% of FC (1 child), 35% (2 children), 50% (3 or more children)..s.a. 43:16A Dea the plu FC or r spo pen (2 c chi

13 10. Health Benefits New Jersey State Health Benefits Program Act, allows: (1) retiring State employees & dependents to enroll in State Health Benefits Plan. (2) Employees of local governments participating in SHBP & dependents may, on retirement, be eligible for such benefits at option of employer. Benefit equal to health benefits at time member earned 25 years of service. The State pays the cost of post retirement medical premiums including Medicare premiums for TPAF retirees and their dependents, provided the member retired after 25 years of service or under the disability provisions of the Fund. Not provided by retirement system. However, see 10 (1) and (2) under PERS. No sys und.s.a. 52: b..S.A. 52: f.

14 11. Cost-of-living The Pension Adjustment Act, applicable generally to all State-administered retirement systems, adjustments of retirement allowances and survivorship benefits paid under those systems. Adjustm survivor, or both jointly have received allowance and/or benefit payments for 24 months. Amoun amount of annual change in federal Department of Labor s Consumer Price Index for Urban Wag Workers. Adjustments to PERS, TPAF and PFRS allowances/benefits are paid through retiremen.s.a. 43:3B-1 et seq. PERS: Final Compensation (FC) the TPAF: Final Compensation (FC) "the average annual compensation for the three years of creditable service immediate highest three fiscal years of membership service." "the average annual compensation for the three consecutive years of creditable servic retirement or the highest three fiscal years of membership service." PFRS: or Average Final Compensation (AVC) "the average annual compensation for the three consecutive years of service immed the highest three consecutive fiscal years of membership service." Final Compensation (FC) "the annual compensation received by the member in the last 12 months of credited s SPRS: Final Compensation (FC) "the average compensation received by member in last 12 months of credited service death. Such term includes the value of the member's maintenance allowance for the same pe