Current Pension Topics: Ex-Cop Can Teach And Still Get Full Pension

Current Pension Topics
Ex-Cop Can Teach And Still Get Full Pension
Q.: I am recently retired as a police officer for the City of Newark. I plan on accepting a teaching position in the Newark Public Schools. Can I continue to receive my full pension and full teaching salary?

Mr. Frank is a fee-only Retirement Financial Planner and a retired city high school Teacher of Accounting. He can be reached by telephone at (732) 536-9472, or via e-mail at rollover@optonline.net.

P.A.

A.: Yes, you can. You may not, however, become a member of the Teachers' Pension and Annuity Fund of New Jersey (TPAF), the pension system that covers your new teaching position.

Of Note: A New Jersey public-sector retiree may continue to receive his/her full pension and accept a new public-sector job provided the new position is not covered under the same pension system. The retiree is not entitled to join the retirement system that covers the new job. Example: Joe is working for the City of Trenton as a Staff Accountant. He is covered by the Public Employees Retirement System of New Jersey (PERS), from which he will receive his pension starting on Dec. 1, 2008. On or after Dec. 1, 2008, he accepts a teaching position in Marlboro Township, N.J. He continues to receive his full pension from the PERS and his new salary from the Marlboro Board of Education but may not join the TPAF.

Q.: I will be retiring shortly as a Teacher in the State of New Jersey. I know the life insurance benefit will be greatly reduced. Please provide the particulars.

R.W.

A.: The following chart, prepared by the NJ Division of Pensions and Benefits will generate your answer:

COVERAGE FOR RETIRED MEMBERS

Type of Retirement	Member with Non-contributory		Member with Both Contributory and
		Insurance Only	Non-contributory Insurance
	Death Before Age 60	Death After Age 60	Death Before Age 60	Death After Age 60
Disability	150%	18.75%	175%	43.75%
Early & Veteran	18.75%	18.75%	43.75%	43.75%
Deferred	None	18.75%	None	43.75%
Service	N/A	18.75%	N/A	43.75%

 

 

NOTE: The percentages above apply to the total base salary upon which pension contributions were based during the year preceding retirement or highest contractual year.

If a retiree was enrolled as a member of TPAF on or after July 1, 1971, life insurance is payable only if the member retired with 10 or more years of pension membership credit or retired on a disability retirement.

Q.: I have two public sector jobs in New Jersey. One is covered by PERS and the other is covered by TPAF. Can I belong to both retirement systems and receive benefits from both?

P.O.

A.: Yes, you can. You are considered a dual member, if you are a member of more than one New Jersey State-administered retirement system at the same time. For example, if you are a state employee and a member of the Public Employees' Retirement System (PERS) and an educator and a member of TPAF, you are a dual member. Unlike a multiple member described below, a dual member's contributions and service credit are kept separate. Benefits will be paid separately from each system in the event of death, retirement or withdrawal.

You are considered a multiple member if you are employed and reported to the retirement fund by more than one TPAF participating employer. For example, if you were a part-time music teacher working for more than one TPAF employer, you are enrolled as an employee of each employer. All of your base salaries are posted to your account and consolidated in calculating your retirement benefit. In terms of service credit, however, no more than 12 months of service credit will be given for any calendar or fiscal year. You are required to file an enrollment application from each employer. Once you have established multiple membership, you will be classified as a multiple member for your entire membership. Multiple members cannot withdraw or begin to collect retirement benefits until they have retired from or terminated every position covered by TPAF.