This calculator estimates a PERS or TPAF pension for a Tier 5 member: the annual maximum allowance, what one more year of service is worth, and what retiring before 65 costs. Enter the date you enrolled rather than the tier, and the tool will confirm it.
What will my pension be?
For New Jersey public employees and teachers at the top of PERS and TPAF, where the salary cap and the early-retirement reduction are worth six figures over a retirement. Enter the date you were enrolled, your final average salary, your service credit and the age you plan to retire. The estimate comes with what the reduction for going early costs you, what one more year of service is worth, and whether the cap applies to you.
Now the pension itself. These three figures, and whether you are a qualifying veteran.
Tier dates, retirement ages and eligibility from the PERS Member Guidebook and the TPAF Member Guidebook, published by the Division of Pensions and Benefits.
The rules
Who is in Tier 5
You are a Tier 5 member if you enrolled in PERS or TPAF on or after 28 June 2011. That covers everyone hired in the last fifteen years, and its terms differ from the pensions their colleagues are retiring on.
| Tier | Full retirement age | Retiring at 55 | Retiring at full retirement age |
|---|---|---|---|
| Tier 1 | 60 | $57,273 | $57,273 |
| Tier 2 | 60 | $54,409 | $57,273 |
| Tier 3 | 62 | $53,264 | $57,273 |
| Tier 4 | 62 | $48,825 | $52,500 |
| Tier 5 | 65 | $36,750 | $52,500 |
Three things are harder in Tier 5
Normal retirement age is 65, against 60 for Tiers 1 and 2 and 62 for Tiers 3 and 4.
Early retirement needs 30 years, not 25. Every earlier tier reaches it at 25.
The reduction is 3% for every year under 65, and it applies from the first year rather than starting gently. A Tier 5 member retiring at 60 gives up 15% permanently. Tiers 2 through 4 lose 1% a year between 55 and their normal age, with 3% a year only below 55.
The divisor is 60 and final average salary is the highest five consecutive years, both of which Tier 5 shares with Tier 4.
Questions
Common questions
How many years do I need to be vested?
Ten years of service credit.
Is the reduction reversed at 65?
No. A reduced allowance stays reduced for life.
Is any of my salary excluded?
Pay above the Social Security taxable wage base does not count toward the pension. It goes into a Defined Contribution Retirement Program account instead, which is a separate balance with separate rules.
Several of these choices cannot be undone.
Tier 5 reaches early retirement five years later than the tiers around it, and the reduction runs from the first year rather than easing in. We can cover it in a short conversation, at no charge and with no obligation.
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