This estimator covers both New Jersey systems: the Public Employees’ Retirement System and the Teachers’ Pension and Annuity Fund. It returns your tier from the date you enrolled, the estimated annual maximum allowance, what one more year of service is worth, and what going before your normal retirement age costs.
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.
How it works
Start from the enrollment date, not the tier
The tool asks when you enrolled and works the tier out on every run. New Jersey has five tiers, two of the boundaries fall mid-year, and Tier 4 is a window of about thirteen months, so asking members to name their own tier would produce confident wrong answers.
| Tier | Enrolled | Normal retirement age | Divisor | Early retirement at |
|---|---|---|---|---|
| 1 | On or before 30 June 2007 | 60 | 55 | 25 years |
| 2 | 1 July 2007 to 1 November 2008 | 60 | 55 | 25 years |
| 3 | 2 November 2008 to 21 May 2010 | 62 | 55 | 25 years |
| 4 | 22 May 2010 to 27 June 2011 | 62 | 60 | 25 years |
| 5 | From 28 June 2011 | 65 | 60 | 30 years |
| 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 |
Two numbers do the work
The divisor. Tiers 1 to 3 divide final average salary by 55; Tiers 4 and 5 divide by 60. On the same salary and the same service, that difference alone is roughly 9% of the pension, and it arrived with the 2010 law rather than with the Tier 3 age change.
The averaging period. Tiers 1 to 3 use the highest three consecutive years. Tiers 4 and 5 use five. A final promotion is worth considerably less in a five-year average than in a three-year one.
The salary cap, and where the rest of your pay goes
Pensionable salary for Tiers 2 through 5 is capped at the Social Security taxable wage base. Pay above that cap does not count toward the pension at all; it goes to a Defined Contribution Retirement Program account instead. Tier 1 has no cap. The calculator applies the cap where it applies and says so.
Questions
Common questions
How many years do I need to be vested?
Ten years of service credit, which is longer than New York requires, a difference that matters for someone moving between the two states.
Does veteran status change anything?
Yes, and materially. Qualifying veterans have their own retirement routes, which is why the calculator asks and why it takes your highest twelve consecutive months of salary as a separate figure.
Several of these choices cannot be undone.
The tier, the divisor and the averaging period are set by a date you cannot change, and everything after that is a decision you can. We can cover it in a short conversation, at no charge and with no obligation.
Book your Pension ReviewNot ready to book? Answer a few questions about your situation, or send a message.
Booking is handled through Rosefinch Investment Advisors. North Jersey Retirement is not affiliated with, endorsed by, or sponsored by any government agency, retirement system, plan sponsor, or employer named on this site.