PERS and TPAF Tier 5 Pension Calculator

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.

The average salary your system uses, based on your highest consecutive years of earnings. How many years depends on your tier.

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.

Annual PERS pension by retirement age, Tiers 1 to 5, 2026Five panels on the same scale, one for each PERS tier, showing the annual Maximum Allowance for a member with 30 years of service credit and a $105,000 final average salary retiring between age 55 and age 65. Tier 1 is flat at $57,273 from 55. Tier 2 reaches $57,273 at 60, Tier 3 at 62. Tier 4 reaches $52,500 at 62 and Tier 5 at 65. Tier 5 at 55 pays $36,750, which is $20,523 a year less than Tier 1 at the same age. The table below gives the tier boundaries and both figures for every tier.$57,273Tier 15565Full at 60$57,273Tier 25565Full at 60$57,273Tier 35565Full at 62$52,500Tier 45565Full at 62$52,500Tier 55565Full at 65$40k$50k$60kAge at retirement, 55 on the left to 65 on the right of each panel. 30 years of service credit, $105,000 final average salary.
Annual Maximum Allowance by retirement age for each PERS tier, on 30 years of service credit and a $105,000 final average salary, with no veteran status. Every plotted figure was produced by running the pension estimator. TPAF uses the same tier boundaries and the same formulas and returns the same figures on these inputs. Source: New Jersey Division of Pensions and Benefits member guidebooks.
TierFull retirement ageRetiring at 55Retiring at full retirement age
Tier 160$57,273$57,273
Tier 260$54,409$57,273
Tier 362$53,264$57,273
Tier 462$48,825$52,500
Tier 565$36,750$52,500
Annual Maximum Allowance on 30 years of service credit and a $105,000 final average salary, with no veteran status. These are the figures plotted above, each one produced by running the pension estimator rather than by applying the formula by hand.

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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