NJ S3625

Members of the Teachers' Pension and Annuity Fund (TPAF) and Public Employees' Retirement System (PERS) may request an alternate calculation of their final compensation using any three calendar years of service providing the largest benefit, rather than the standard calculation method.

Upon submitting a retirement application, the Division of Pensions and Benefits must send a notice detailing the final compensation calculation, and members have 60 days to request a recalculation.

The Division has 30 days to provide the recalculated compensation details, after which members have 30 days to approve the new calculation or default to the original method.

Members who retired after January 1, 2025 and began receiving benefits before the act's effective date have one year to request the recalculation, but adjustments apply only to future payments with no retroactive payments.

The act takes effect 90 days after enactment.