Pension Loans

  Pension loans are available for those enrolled in PERS or PFRS

PERS or PFRS Pension Loans

Eligibility 

  • Must be an actively contributing member of PERS or PFRS.  Retirees and members who are not in a “regular” pay status (i.e., suspended without pay or on a leave of absence) are not eligible for a pension loan

  • Must have three years of contributing membership posted to your account

  • Permitted no more than two loans in a calendar year

How to Apply: Submit your loan request online using the Member Benefits Online System (MBOS)

How Much You Can Borrow: The minimum amount you may borrow is $50.00.  Loans then increase in multiples of $10.  You may borrow up to one half of your posted pension contributions to a maximum of $50,000, whichever is less.

Interest on Loans: Interest is charged on a loan at a commercially reasonable rate set annually by the NJ State Treasurer. An administrative processing fee is $8.00 per loan.

Repayment Amount: The minimum deduction toward repayment of any new loan is equal to the normal pension contribution rate of your salary at the time you apply for the loan.  In most instances, your minimum loan repayment amount will be the same whether you borrow $500 or $5,000; however, the repayment of a larger loan will continue for a longer period of time than for a smaller loan.  PERS and PFRS loans are repaid through payroll deductions.

Maximum Loan Deduction: The maximum deduction toward the repayment of your loan is 25% of your base salary.

Note: The Internal Revenue Service regulations require that all loans have a maximum repayment schedule of 5 years. 

If you have an outstanding PERS or PFRS pension loan balance and plan to take another loan, you must repay the combined balance of the original loan and all subsequent loans within five years of the issuance date of the FIRST LOAN.

ABP Pension Loans

Eligibility

  1. Must be an actively contributing member to AXA, MassMutual, MetLife, Prudential, TIAA, Valic, or VOYA. Full list of providers.
  2. Must be a vested member to receive loan.
  3. Must not exceed $50,000 in total outstanding loan(s) including newly requested amount.
  4. Must have the loan application signed by Human Resources.

Members should contact the Designated Service Provider (DSP) for the following:

  • Loan application
  • Interest rate
  • Payment options
  • Payment status