EARLY
RETIREMENT INCENTIVE (ERI) 2008
FOR STATE EMPLOYEES
The application window for the 2008 State Early Retirement Incentive
ended Tuesday, July 15, 2008. Applications received after the July 15, 2008 deadline will not be honored.
On June 24, 2008, Governor Corzine signed Chapter 21, P.L. 2008, into law. This legislation provides an Early Retirement Incentive (ERI) program for certain full-time employees of the Executive and Judiciary Branches of New Jersey State government.
Employees of a Local Government employer, a Local Educational employer,
or a State College or University
are not eligible for the ERI.
The ERI requires that an eligible employee must retire as of August 1, 2008; submit an ERI Application for Retirement Allowance no later than the ERI application deadline on July 15, 2008; and must meet the additional criteria shown below as of their date of retirement.
ELIGIBILITY
To be eligible for the Early Retirement Incentive (ERI) you must be an employee of an included agency of the Executive or the Judicial Branch of New Jersey State Government, a member of either the Public Employees’ Retirement System (PERS) or the Teachers’ Pension and Annuity Fund (TPAF), and meet one of the following categories of age and service conditions by August 1, 2008:
Category One — be at least age 58 and have at least 25 years of service credit; or
Category Two* — be at least age 60 and have at least 20, but less than 25 years of service credit or
Category Three* — be at least age 60 and have at least 10, but less than 20 years of service credit.
*Under the ERI, Judicial Branch employees are only eligible for Category 1 benefits.
WHO IS ELIGIBLE - Listing of Included State Locations
Employees of State Departments and State Agencies in the linked list are eligible to participate in the 2008 State ERI if they meet the age and service credit requirements and apply within the ERI time frames.
WHO IS NOT ELIGIBLE - Listing of Excluded Locations
The ERI program does not include employees of certain State departments and State agencies as shown in the linked list. The employees in these departments and agencies are not eligible for the ERI program because the ERI is designed to ensure continuing budget savings through a reduction in the size of the State government workforce. This is to be achieved through a strict limit on the filling of vacancies resulting from the ERI so that departments and agencies do not replace those who retire under an ERI with new employees because that practice results in a program that increases liability and eliminates budget savings. To meet these goals, the ERI excludes employees in departments or agencies whose mission is principally related to the provision of direct care, or when the nature of their operations otherwise does not permit the imposition of a strict limit on the filling of vacancies.
Employees of a Local Government employer, a Local Educational employer,
or a State College or University
are not eligible for the ERI.
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CONDITIONS OF THE STATE EARLY RETIREMENT INCENTIVE
An eligible State employee must agree to the following terms and conditions when accepting retirement through the Early Retirement Incentive.
- Retirement under the ERI is irrevocable seven days after your ERI Application for Retirement Allowance is received by the Division of Pensions and Benefits. This means that seven days after your application is received, you cannot decide to cancel your retirement and return to State employment.
A State ERI retiree cannot work for the State of New Jersey Executive Branch in any capacity for a period of three years from the retirement date). Similarly, a Judiciary ERI retiree cannot work for the State of New Jersey Executive Branch in any capacity for a period of three years from the retirement date. The following situations are covered under these conditions: as an employee; as a result of an appointment; as a contractor for professional services; or as part of a contract awarded to a third party. (An Executive Branch retiree may return on an hourly basis for emergency management purposes.)
- Each department or agency shall have the right to require an eligible employee who accepts retirement through the ERI to extend employment for up to one year. This decision is at the option of the employer and is subject to approval by the State Treasurer — or for Judicial Branch employees by the Chief Justice.
RETIREMENT INCENTIVES
| Category |
Eligibility
Criteria |
Incentive |
1 |
Age
58 or older with 25 or more years of credited service in the Public
Employees' Retirement System (PERS), or Teachers'
Pension and Annuity Fund (TPAF). |
Service and Early Retirements:
3 additional years of service credit (an additional 5.45%
of final average salary).
Veteran
Retirement:* 3/55 of Final Salary added
to retirement allowance (an additional 5.45% of Final Salary). |
2‡ |
Age
60 or older with at least 20, but less than 25 years of credited service
in the PERS or TPAF. |
Paid
New Jersey Health Benefits Program (SHBP) post-retirement medical
benefits. Certain retirees may be subject to a health contribution of 1.5% of the retirement allowance unless the retiree participates in the Retiree Wellness Program.
|
3‡ |
Age
60 or older with at least 10, but less than 20 years of credited service
in the PERS or TPAF. |
$500
per month for 24 months after retirement, paid separately from your retirement allowance. |
| *Veteran Retirement Eligibility Criteria for PERS and TPAF |
- Age
60 with 20 years of membership credit (only applicable
to Category 2 of ERI)Age
55 with 25 years of membership credit (must be at least age 58 for ERI eligibility)
- Age
55 with 35 years of membership credit (must be at least age 58 for ERI eligibility)
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| ‡Judicial Branch employees are only eligible for Category 1 benefits |
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RECENT UPDATES
ERI Estimates and Applications
The Division of Pensions and Benefits has prepared an ERI mailing for eligible PERS and TPAF members which were mailed to members' home addresses. The mailing includes:
- A letter describing the ERI including eligibility criteria and the ERI Terms and Conditions (listed above);
- An individualized Estimate of Retirement Benefits based on the ERI category for which the member qualifies; and
- An ERI Application for Retirement Allowance booklet with additional information and the forms needed to apply for ERI retirement.
An eligible employee must retire as of August 1, 2008.
The completed ERI Application for Retirement Allowance must be received by the Division of Pensions and Benefits no later than the ERI application deadline on July 15, 2008. Applications received after the July 15, 2008 deadline will not be honored.
Eligible members must use the ERI Application for Retirement Allowance to apply for the incentive benefits. The regular PERS/TPAF Application for Retirement Allowance or applications made through the Member Benefits Online System (MBOS) will not qualify. (Eligible members are able to obtain an Estimate of Retirement Benefits using MBOS.)
Purchase of Service Credit
Service credit in the PERS or TPAF established through a purchase completed after the effective date of the ERI legislation (June 24, 2008) shall not be considered in determining a member's eligibility for the ERI. This means that qualification for the ERI, or an ERI category, by submitting a Purchase Application or using a “pending” purchase request is not permitted.
However, members who have previously authorized payroll deductions for the purchase of service credit or received a Quotation Letter for the purchase of service credit within 90 days prior to the effective date of the ERI legislation, may complete the purchase to qualify for the ERI, provided that the entire purchase is paid in full within 90 days of the Quotation Letter or by the close of business on July 15, 2008, whichever is earlier.
Check back for additional updates to the ERI information
ERI LETTERS AND PUBLICATIONS
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