Retirement
Information on all available retirement plans. If you are looking to plan your retirement, please reach out to benefits@njit.edu for more information.
For state funded retirement programs, please review the upcoming Informational Webinars provided by NJ Benefits.
The Public Employees’ Retirement System (PERS) is a defined benefit plan in which the retirement benefit is based on a formula and guaranteed by the State. PERS members are categorized by specific “membership tiers” based on enrollment date. Membership tiers affect a member’s enrollment and retirement eligibility. Please refer to the PERS Membership Tier Chart for additional information.
PERS Pension Contribution Rates
How to Enroll: Please follow the PERS Overview for information on PERS enrollment and provisions of the plan.
The Police and Firemen’s Retirement System is a defined benefit plan in which the retirement benefit is based on a formula.
Eligibility: Please see the PFRS Overview linked below for full eligibility requirements. Permanent, full-time law enforcement officers in an eligible PFRS job title must meet
- Age requirement
- Training requirement
- Medical requirements
- Employees holding “F” or “J” visas are not eligible to enroll.
How To Enroll:
- Complete a PFRS Enrollment Application, Report of Examining Physician, and Proof of Age Documentation
- Please refer to the PFRS Membership Tier Chart for additional information on PFRS Membership Tiers
- Please return the completed forms to the Benefits Department
The Alternate Benefit Program (ABP) is a tax-sheltered, defined contribution plan in which the retirement benefits are based on employee and employer contributions and investment performance. The plan provides group term life insurance coverage and LTD benefits after the vesting period. Eligibility:
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Regularly appointed faculty
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Visiting professors
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Part-time lecturers
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Managerial, Professional, Supervisory, Confidential and Administrative staff
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Employees holding “F” or “J” visas are not eligible to enroll.
The Defined Contribution Retirement Program (DCRP) provides eligible members with a tax-sheltered, defined contribution retirement benefit, along with life insurance and disability coverage.
Eligibility
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An employee who is ineligible for PERS is eligible for enrollment in the DCRP provided the annual salary is $5,000 or higher.
Please see the DCRP Plan Overview for complete information.
Eligibility
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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
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Must have three years of contributing membership posted to your account
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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.
Pension Loans – ABP
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Must be an actively contributing member to AXA, MassMutual, MetLife, Prudential, TIAA, Valic, or VOYA.
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Must be a vested member to receive loan.
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Must not exceed $50,000 in total outstanding loan(s) including newly requested amount.
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Must have the loan application signed by Human Resources.
Members should contact the Designated Service Provider (DSP) for the following:
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Loan application
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Interest rate
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Payment options
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Payment status
Information on the Alternate Benefits Program (ABP) and NJ State Employees’ Deferred Compensation Plans (NJSEDCP).
Alternate Benefits Program (ABP) Voluntary Contributions
Existing members of the Alternate Benefit Program may voluntarily tax shelter a portion of salary from federal income taxes while saving for retirement. If an employee enrolls in a pre-taxed 403(b) or 457 plans, Federal income tax is not due on deferred amounts until a distribution is received from the account. The Roth IRA is a post-tax benefit.
NJ State Employees’ Deferred Compensation Plans (NJSEDCP) Voluntary Contributions