1. Q: Who is eligible to withdraw?
A: To withdraw the balance of your pension contributions in a lump
sum, you must have resigned your position and no longer be employed
in a covered position.
- If you
hold more than one position covered under the pension fund (multiple
membership), you cannot withdraw until you have terminated all
employment covered by the pension fund.
is not permitted by law if you are on a leave of absence granted
by your employer.
- If you
were dismissed from your position and are in the process of
appealing that dismissal, you cannot withdraw your contributions
until a decision has been rendered or your appeal is withdrawn.
- An employee
who is receiving periodic Workers Compensation benefits
as the result of an injury incurred in public employment is
considered an active employee and an active member of the pension
fund. If you are receiving Workers Compensation benefits,
or have a case pending, applying for withdrawal from the pension
fund could jeopardize your rights to benefits. In such cases,
the Division will require that you complete an additional retirement
benefit waiver form.
2. Q: What is inactive membership?
A: When you resign your position, you may leave your contributions
on deposit and continue an inactive membership in the fund for
a maximum period of two years.
return to active service in a position covered by the pension
fund before the expiration of your membership, you may reactivate
your account with the same service credit established at the time
you ceased employment.
during which you were inactive will not count as service credit
If your position
was abolished due to a layoff, your employer must notify the Division
of Pensions and Benefits in writing, and your membership in the
fund can remain inactive for a maximum of ten years (five years
for PFRS members).
3. Q: How do I apply for
A: You must complete the Application for Withdrawal which is available through the Member Benefits Online System (MBOS). Paper withdrawal applications are no longer accepted (except as indicated below).
- If you already have an MBOS account, Log on to MBOS and select the "Application for Withdrawal" to apply for your withdrawal online.
- If you are not registered with MBOS, Sign up for MBOS here!
Once your application for withdrawal is submitted, your former
employer will be contacted to complete the Employers
Certification for Withdrawal. Your withdrawal claim cannot
be paid until your former employer has completed this form.
If you are
a member of the New Jersey State Employees Deferred
Compensation Plan or Supplemental
Annuity Collective Trust (SACT), you must file separate applications
for withdrawal from those plans. You can obtain an application
by calling the Deferred Compensation Plan at 1-866-NJSEDCP, or
SACT at (609) 633-2031.
Exception to the online Application for Withdrawal — A limited number of members will not be able to access the MBOS Application for Withdrawal. These are members who have been off payroll for two years or more or whose accounts have been designated as “expired.”
Members with expired accounts can still withdraw their contributions, but must write, or send e-mail, to the Withdrawal Section of the Division of Pensions and Benefits, 50 West State Street, P.O. Box 295, Trenton, NJ 08625-0295. In any correspondence be sure to include your full name, pension membership number or Social Security number, and current mailing address and e-mail address. the Withdrawal Section staff will determine the status of the account and provide additional instructions for completing the withdrawal.
Please Note: Limited access to a computer orreluctance to use MBOS will not be considered sufficient circumstances to allow a paper application for a withdrawal.
4. Q: What happens to my
Group Life Insurance when I withdraw?
A: Group Life Insurance coverage will expire 31 days after your termination
of employment. You may convert all or any part of your insurance
to an individual policy by contacting the Prudential Insurance
Company of America, Inc. at 1-877-889-2070.
made for Contributory Group Life Insurance are not refundable
upon termination of employment.
5. Q: If I am taking another
job in New Jersey government, must I withdraw?
A: If you are terminating employment to accept another position covered
by any government agency in New Jersey (except federal government),
you may transfer your account. Please call the Office of Client
Services at (609) 292-7524 for more information.
6. Q: I have 10 years of
service credit, but have not reached normal retirement age. Must
A: If you have established at least 10 years of service credit and
have not reached normal retirement age, you can apply for Deferred
Retirement, whereby you begin collecting a monthly pension at
the normal retirement age. For more information about Deferred
Retirement see Fact Sheet #14, Deferred
Retirement Adobe PDF (43K).
age for the Public Employees' Retirement System (PERS) and the
Teachers' Pension and Annuity Fund (TPAF) is age 60 for Tier 1 and Tier 2 members, or age 62 for Tier 3 and Tier 4 members. Normal retirement
age for the Police and Firemen's Retirement System (PFRS) or the
State Police Retirement System (SPRS) is age 55.
You are not eligible for Deferred Retirement if you withdraw your contributions.
7. Q: What is payable when
A: If you terminate employment or cease to be an employee for any
reason other than death or retirement, you shall receive all of
the accumulated deductions standing to your credit in your individual
account less any outstanding loan balance.
members of the PERS or TPAF who have at least three years of contributing
membership service at the time the service ceases will have interest
is payable to withdrawing members of the PFRS or SPRS.