— Information for: How To Apply Police and Firemen’s Retirement System

MANDATORY RETIREMENT SUBMITTING YOUR ONLINE APPLICATION • Birth certificate (with visible seal); Retirement is mandatory at age 65 for all Police and You must meet all of the eligibility requirements for • Passport; Firemen’s Retirement System (PFRS) members ex- retirement and cannot submit your application more • A U.S. Passport Card; cept for elected officials. If you do not file for retire- than one year before your retirement date (members ment before age 65, you are automatically retired on eligible for a Deferred Retirement may file more than • A current digital New Jersey driver’s license or the first of the month following your 65th birthday. Re- one year in advance upon termination of employ- identification card (for non-drivers) issued by the tirement benefits, however, are not payable until the ment). N.J. Motor Vehicle Commission; application is filed. Paper applications are not accepted. The application • A current digital Pennsylvania or New York driv- Elected officials are exempt from mandatory retire- must be submitted online using MBOS. This is an er’s license; or ment from their elected position. easy, secure, and accurate way to apply for retire- • Naturalization or immigration papers. ment. Be sure to carefully read the instructions and Unacceptable documentation includes expired docu- BEFORE YOU RETIRE the fact sheets about retirement prior to submission, mentation, out-of-state drivers’ licenses (except New which are available on our website. You should inquire about retirement at least six York and Pennsylvania), affidavits from older family months before your retirement date. This will give you All are effective the first of a month. members, census records, baptismal records, mar- enough time to review the benefits that are available Your application must be received by the riage certificates, hospital birth certificates, or mili- to you in retirement. NJDPB before your retirement date. Under no cir- tary records. cumstances can a retirement become effective Members within two years of retirement can ob- Photocopies of proof of age can be mailed to the prior to the date the application is received by the tain an estimate of retirement benefits using the NJDPB at: New Jersey Division of & Ben- NJDPB. Member Benefits Online System (MBOS). To efits, Retirement Bureau, P.O. Box 295, Trenton, NJ register with MBOS, please visit our website at: It is your responsibility to file for retirement. Four to 08625-0295. You can also submit your proof of age www.nj.gov/treasury/pensions Estimates obtained six months advance filing is recommended. Process- using the Online Document Submission via MBOS. through MBOS provide the most accurate informa- ing times vary and cannot begin until we have re- If you retire with an outstanding loan balance, you tion available by using the service and current- ceived all the necessary information from both you must decide how you wish to repay your loan. You ly posted to your PFRS account. and your employer. Your employer will be notified that may pay the loan in its entirety prior to receiving any you have filed an application for retirement. You can also hear an estimate of retirement benefits benefits, or repay the loan through deductions from over the phone by calling the New Jersey Division If you have not furnished proof of age to the NJDPB, your retirement allowance until the balance of the of Pensions & Benefits (NJDPB) Automated Informa- you must do so when applying for retirement. If any loan with interest is repaid. The monthly loan pay- tion System at (609) 292-7524. documents are given under a maiden name, please ment will be calculated to have the loan plus interest identify them as such. Proof of age documents in- satisfied by your five-year loan payoff date. clude a copy of any of the following:

Page 1 April 2021 Fact Sheet #19 This fact sheet is a summary and not intended to provide all information. Although every attempt at accuracy is made, it cannot be guaranteed. Retirement — How To Apply

TYPES OF RETIREMENT • If you have at least 20 but less than 25 years of The effective date of a Deferred Retirement is the service credit, you will receive 50 percent of your first of the month after you attain age 55. You must file The following types of retirement benefits are calcu- Final Compensation; a retirement application to receive a Deferred Retire- lated using your Years of Service and Final Compen- ment, and you should file the application when you sation. • If you are age 65 (mandatory ) and have 20 or more years of service credit, you terminate covered . • Years of Service means the amount of member- will receive 50 percent of your Final Compensa- If you are terminated for cause, you may not be eligi- ship service you have credited to your account. tion, plus three percent of your Final Compen- ble to receive Deferred Retirement benefits. The Po- • Final Compensation — For a PFRS Tier 1 mem- sation for each year of service over 20, up to 25 lice and Firemen’s Retirement System of New Jersey ber enrolled on or before May 21, 2010, Final years, if enrolled in the PFRS as of January 18, (PFRSNJ) Board of Trustees will make that determi- Compensation means the salary upon which 2000; or nation at the time you file your application. contributions were based in the last 12 months • If you have at least 30 years of service credit, Your group coverage is not in effect be- of creditable service preceding retirement. you will receive two percent per year of your av- tween the time you terminate employment and when For a PFRS Tier 2 member enrolled after May erage Final Compensation for the first 30 years your Deferred Retirement becomes effective. If you 21, 2010, and on or before June 28, 2011, or of service, plus an additional one percent of your die before your Deferred Retirement becomes effec- a PFRS Tier 3 member enrolled after June 28, average Final Compensation for each year of tive, the beneficiary on your retirement application 2011, Final Compensation means the average service credit over 30 years. will receive a return of your contributions, unless a salary upon which contributions were subsequent Designation of Beneficiary form is filed. based for any three fiscal years of membership Special Retirement There is no other death benefit under these circum- preceding retirement that provides the largest This type of retirement is available to members at any stances. possible benefit. age who have 25 years or more of service credit in For information about converting your group life in- Final Compensation does not include extra pay the PFRS. surance to an individual policy at termination, see the for or large increases in compensation For Tier 1 and Tier 2 members, the annual benefit is Conversion of Group Life Insurance Fact Sheet. paid primarily in anticipation of retirement. equal to 65 percent of your Final Compensation, plus If you are covered by the State Health Benefits Pro- There are several types of retirement for which you one percent for each year of service over 25 years gram (SHBP), you will not be able to continue cover- may qualify: but not to exceed 30 years. The maximum allowance age under the SHBP Retired Group if you apply for is therefore 70 percent of your Final Compensation. Service Retirement a Deferred Retirement. However, you are entitled to For Tier 3 members, the annual benefit is equal to 60 continue coverage in the SHBP employee group for This type of retirement is available to members of all percent of your Final Compensation plus one percent up to 18 months after termination of employment in tiers at age 55 with no minimum amount of service for each year of service over 25 years but not to ex- accordance with the federal Consolidated Omnibus required. ceed 30 years. The maximum allowance is therefore Budget Reconciliation Act of 1985 (COBRA) . If Pursuant to P.L. 2021 c. 52 (Chapter 52), Service Re- 65 percent of your Final Compensation. your retirement allowance becomes due and payable tirement is also available to members with 20 years during the 18 months of extended COBRA coverage, of service, regardless of age, for those enrolled in Deferred Retirement you will qualify for coverage in the SHBP Retired PFRS and who are still a member of PFRS before This type of retirement is available to members who Group. In this case, you must contact the NJDPB April 19, 2021, and who retire prior to May 1, 2023. have at least 10 years of service credit and are not and request a health benefits offering letter within 60 days of your eligibility for the SHBP Retired Group The benefit calculations are as follows: yet 55 years of age when they terminate employ- ment. The annual benefit is equal to two percent of coverage. • If you have less than 20 years of service credit, your Final Compensation for each year of service. you will receive two percent of your Final Com- pensation for each year of service;

Fact Sheet #19 April 2021 Page 2 This fact sheet is a summary and not intended to provide all information. Retirement — How To Apply Although every attempt at accuracy is made, it cannot be guaranteed.

At any time before your Deferred Retirement be- • 18 years of age or older and enrolled in high Compensation means the last 12 months immediate- comes effective, you may change your mind and school; or ly preceding your death or retirement. apply for a lump-sum withdrawal of your pension • Any age who, at the time of your death, is dis- If a retiree was enrolled as a member of the PFRS on contributions. However, if you cancel your Deferred abled because of mental or physical incapacity or after July 1, 1971, life insurance is payable only if Retirement and withdraw your contributions, all the and is incapable of substantial gainful employ- the member retired with 10 or more years of pension rights and privileges of membership will end. ment because of the impairment. This incapacity membership credit or retired on a Disability Retire- Disability Retirement must last, or be expected to last, for a continuous ment. period of not less than 12 months as determined For information about Disability Retirement see the by the PFRS Medical Review Board. Conversion Disability Retirement Benefits Fact Sheet for PFRS For most members, group life insurance is reduced members. Retired Member Death Benefit at retirement. You have 31 days after termination of PAYMENT OF PENSION TO Upon your death as a retired member, your surviv- employment to convert the amount of insurance that ing spouse or partner is eligible to receive a pension was reduced to private individual insurance coverage. A SURVIVING FAMILY MEMBER benefit equal to 50 percent of your Final Compensa- If you wish to supplement this coverage with either a Upon your death as a retired member, your spouse, tion, plus 15 percent of your Final Compensation for conversion policy from the Prudential Life Insurance civil union partner or domestic partner, and/or one child or 25 percent of your Final Compensation Company, or a policy from another insurance carrier, child(ren) may be entitled to a monthly pension. for two or more children. This benefit is payable for it is best to begin exploring your options at least four Spouse means a person to whom you are legally the lifetime of the spouse/partner, or until the spouse/ to six months prior to your retirement. However, you married. A photocopy of the Marriage Certificate is partner remarries or enters into a new civil union or cannot file to convert your life insurance any earlier required for verification. domestic partnership. than six months prior to your retirement date, and the If there is no eligible surviving spouse or partner, or conversion policy cannot become effective until 31 Civil Union Partner means a person of the same days after you terminate employment. sex with whom you have entered into a civil union. your spouse/partner dies, remarries, or enters into a A photocopy of the New Jersey Civil Union Certifi- new partnership, the following benefit is payable to To estimate the cost of conversion to a private policy cate or a valid certification from another jurisdiction the eligible children: with Prudential, contact a Prudential agent or use the that recognizes same-sex civil unions is required for • 50 percent of Final Compensation to three or conversion calculator on the NJDPB website. verification. more eligible children; For additional information, see the Conversion of Domestic Partner means a same-sex domestic part- • 35 percent of Final Compensation to two eligible Group Life Insurance Fact Sheet. ner, as defined under P.L. 2003, c. 246 (Chapter children; or HEALTH BENEFITS 246), of any State employee, State retiree, or an eli- • 20 percent of Final Compensation to one eligible gible employee or retiree of a local public entity if the Employees who are covered by the SHBP through child. local governing body adopts a resolution to provide their employer will be offered SHBP coverage when Chapter 246 pension benefits. A photocopy of the GROUP LIFE INSURANCE they retire. In addition, some employers have agreed New Jersey Certificate of Domestic Partnership dat- to pay for the cost of coverage for retirees with 25 ed prior to February 19, 2007, or a valid certification Most members of the retirement system are covered or more years of service credit (and in some cases from another jurisdiction that recognizes same-sex by group life insurance. retirees on Disability Retirements). domestic partners, is required for verification. When you retire, the amount of your group life insur- If eligible, you will receive a letter approximately three Child means your unmarried child: ance will be equal to 50 percent of your Compensa- months before your retirement date offering you en- tion. rollment in the SHBP. • Under the age of 18; or

Page 3 April 2021 Fact Sheet #19 This fact sheet is a summary and not intended to provide all information. Although every attempt at accuracy is made, it cannot be guaranteed. Retirement — How To Apply

The Health Benefits Coverage - Enrolling as a Retir- CHANGING OR CANCELING ee Fact Sheet provides additional information about YOUR RETIREMENT DATE health benefits coverage in retirement. The following are some important points to remem- If you are not covered by the SHBP, contact your em- ber if you consider changing your retirement to a later ployer about your options for continuing your health date or canceling your retirement: benefits coverage. • You may change or cancel your retirement up Chapter 330 until 30 days immediately following your retire- ment date, or 30 days after the approval of your P.L. 1997, c. 330 (Chapter 330), provides health ben- retirement by the Board of Trustees, whichever is efits under the SHBP to local (non-State employee) later. police officers and firefighters who retire after 25 years of service, or on a Disability Retirement, and Note: You cannot change or cancel the date for a who do not receive any payment towards retiree Disability Retirement once it has been approved health coverage from their employers. by the Board of Trustees. If eligible, the State will pay 80 percent of the cost of • If you change or cancel your retirement date, it the least expensive SHBP plan offered and the retir- is your responsibility to notify your employer to ee then pays the remainder for the plan selected. A ensure that any active health benefits are not qualified retiree may enroll at the time of retirement canceled and your employment remains uninter- or when becoming eligible for Medicare. rupted. The eligibility of retired police officers and firefight- • Changing or canceling your retirement date ers for benefits under Chapter 330 depends on the does not guarantee continued employment with health benefits provided by the employer for retired your employer. police officers and firefighters as of the effective date of the , July 1, 1998. These employer benefits are This fact sheet has been produced and distributed by: indicated in labor and other employment contracts, New Jersey Division of Pensions & Benefits ordinances, and resolutions of the employers. P.O. Box 295, Trenton, NJ 08625-0295 Additional information about Chapter 330 is avail- (609) 292-7524 able in the Health Benefits Retired Coverage Under For the hearing impaired: TRS 711 (609) 292-6683 Chapter 330 Fact Sheet. www.nj.gov/treasury/pensions

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