The rules, tier by tier
Your tier comes from the date you enrolled (see which tier am I?). The cut comes off the Maximum Option the formula gives.
- Tier 1 (full pension at 60): 25 years of service before age 60. Reduced 1/4 of 1% for each month (3% a year) under age 55; no reduction from 55 to 60. Guidebook p. 25, Early Retirement
- Tier 2 (full pension at 60): 25 years of service before age 60. Reduced 1/12 of 1% for each month (1% a year) under 60 down to 55, plus 1/4 of 1% for each month (3% a year) under 55. Guidebook p. 25, Early Retirement
- Tier 3 (full pension at 62): 25 years of service before age 62. Reduced 1/12 of 1% for each month (1% a year) under 62 down to 55, plus 1/4 of 1% for each month (3% a year) under 55. Guidebook p. 25, Early Retirement
- Tier 4 (full pension at 62): 25 years of service before age 62. Reduced 1/12 of 1% for each month (1% a year) under 62 down to 55, plus 1/4 of 1% for each month (3% a year) under 55. Guidebook p. 25, Early Retirement
- Tier 5 (full pension at 65): 30 years of service before age 65. Reduced 1/4 of 1% for each month (3% a year) under age 65. Guidebook p. 25, Early Retirement
What you keep, by age
Share of your pension kept if you retire on your birthday at each age, with enough service for Early Retirement (25 years; Tier 5: 30).
| Age | Tier 1 | Tier 2 | Tier 3 | Tier 4 | Tier 5 |
|---|---|---|---|---|---|
| 50 | 85% | 80% | 78% | 78% | 55% |
| 51 | 88% | 83% | 81% | 81% | 58% |
| 52 | 91% | 86% | 84% | 84% | 61% |
| 53 | 94% | 89% | 87% | 87% | 64% |
| 54 | 97% | 92% | 90% | 90% | 67% |
| 55 | 100% | 95% | 93% | 93% | 70% |
| 56 | 100% | 96% | 94% | 94% | 73% |
| 57 | 100% | 97% | 95% | 95% | 76% |
| 58 | 100% | 98% | 96% | 96% | 79% |
| 59 | 100% | 99% | 97% | 97% | 82% |
| 60 | 100% (full) | 100% (full) | 98% | 98% | 85% |
| 61 | 100% (full) | 100% (full) | 99% | 99% | 88% |
| 62 | 100% (full) | 100% (full) | 100% (full) | 100% (full) | 91% |
| 63 | 100% (full) | 100% (full) | 100% (full) | 100% (full) | 94% |
| 64 | 100% (full) | 100% (full) | 100% (full) | 100% (full) | 97% |
Our arithmetic with the guidebook's per-month rates. Tiers 3 and 4 have the same early-retirement rule. Guidebook p. 25, Early Retirement
The early-retirement cut is figured per month short of the age. If your birthday falls mid-month, the sources don't say whether that part month counts.
Whole months only (a part month isn't counted), so the estimate could be up to one month's reduction (0.08% or 0.25%) too high.
Guidebook p. 25; N.J.S.A. 18A:66-37The NJDPB's own examples
| Example | Printed | Formula |
|---|---|---|
| Tier 1, age 54 | 97% | 97% |
| Tier 2, age 54 | 92% | 92% |
| Tier 2, age 57 | 97% | 97% |
| Tier 3 or 4, age 54 | 92% | 90% Check with NJDPB |
| Tier 3 or 4, age 57 | 95% | 95% |
| Tier 5, age 57 | 76% | 76% |
| Tier 5, age 63 | 94% | 94% |
Planning Guide p. 6
The planning guide prints 92%, the same figure as its Tier 2 example. The guidebook's rule gives 90% (formula: 7 years x 1% for 62 down to 55, plus 3% for the year under 55 = 10%). We use the rule.
TPAF Member Guidebook (July 2026) p. 25 gives the rule: 1/12 of 1% a month under 62 through 55, and 1/4 of 1% a month under 55. Statute 18A:66-37(c) says the same.Other ways to retire before the full-pension age
Veteran Retirement
Same for all tiers. A qualified veteran age 55+ with 25 years, or age 60+ with 20 years, gets 54.5% of the highest 12 consecutive months of base salary. Age 55+ with 35 years: years / 55 x highest 12 consecutive months. A veteran may take a Service Retirement instead if it pays more. Must be in active employment until retirement (or have qualified at termination) and have veteran status on file (DD 214 to the NJ Department of Military and Veterans Affairs). Guidebook pp. 25-26, Veteran Retirement; Planning Guide p. 6
Disability retirement (Tiers 1-3)
Totally and permanently disabled, 10 years of New Jersey service (purchased out-of-state, military and federal service don't count). Benefit: 43.6% of FAS or 1.64% of FAS per year of service, whichever is higher. Guidebook p. 27, Ordinary Disability Retirement
Totally and permanently disabled as a direct result of a traumatic event during regular or assigned duties; apply within five years of the event. Benefit: 72.7% of salary at the time of the event. Guidebook p. 28, Accidental Disability Retirement
Not eligible for disability retirement; may be eligible for Long-Term Disability insurance after one year of continuous employment. Guidebook p. 27; N.J.S.A. 18A:66-39.1
Deferred Retirement
Leave with 10+ years but too few for Early Retirement, and you can take a Deferred Retirement at your tier's full-pension age, with no cut. See Leaving teaching.
What the NJDPB says
- Service retirement age is 60 for Tiers 1 and 2, 62 for Tiers 3 and 4, and 65 for Tier 5. No minimum amount of service is needed at that age.Guidebook p. 25, Service Retirement; N.J.S.A. 18A:66-43
- All TPAF retirements start on the first of a month. Apply online through MBOS no more than a year ahead and before the retirement date; the Division suggests four to six months ahead.Guidebook p. 31
- Tiers 1-4 can take Early Retirement with 25 years of service before the service retirement age; Tier 5 needs 30 years before age 65. The benefit uses the regular formula and is then permanently reduced if you are under a certain age.Guidebook p. 25, Early Retirement; N.J.S.A. 18A:66-37
- Tier 1: 3% a year (1/4 of 1% a month) under 55, nothing from 55 to 60. Tier 2: 1% a year under 60 down to 55, plus 3% a year under 55. Tiers 3-4: 1% a year under 62 down to 55, plus 3% a year under 55. Tier 5: 3% a year under 65.Guidebook p. 25
- Examples: Tier 2 at 57 keeps 97%; Tier 3 or 4 at 57 keeps 95%; Tier 5 at 57 keeps 76% and at 63 keeps 94%.Planning Guide p. 6
- Check with NJDPBThe planning guide says a Tier 3 or 4 member retiring at 54 keeps 92%. The rule in the guidebook and the statute works out to 90% (7% for ages 62 down to 55, plus 3% for the year under 55).Planning Guide p. 6; Guidebook p. 25; N.J.S.A. 18A:66-37(c)The printed example doesn't match the formula; we use the formula.
Questions
Can I retire early from the TPAF?
Yes, with 25 years of service (30 in Tier 5) before your tier's service retirement age. The allowance is reduced for life if you're under the reduction age.
How much is the early retirement reduction?
Tier 1: Reduced 1/4 of 1% for each month (3% a year) under age 55; no reduction from 55 to 60. Tier 2: Reduced 1/12 of 1% for each month (1% a year) under 60 down to 55, plus 1/4 of 1% for each month (3% a year) under 55. Tier 3: Reduced 1/12 of 1% for each month (1% a year) under 62 down to 55, plus 1/4 of 1% for each month (3% a year) under 55. Tier 4: Reduced 1/12 of 1% for each month (1% a year) under 62 down to 55, plus 1/4 of 1% for each month (3% a year) under 55. Tier 5: Reduced 1/4 of 1% for each month (3% a year) under age 65.
What if I leave before I have 25 years?
With 10 or more years you can take a Deferred Retirement, which starts at your tier's service retirement age with no reduction. See Leaving teaching.
Is there a disability retirement?
Totally and permanently disabled, 10 years of New Jersey service (purchased out-of-state, military and federal service don't count). Benefit: 43.6% of FAS or 1.64% of FAS per year of service, whichever is higher. Tiers 4 and 5 don't have disability retirement; they may get long-term disability insurance instead.
Source: TPAF Member Guidebook, July 2026 (SP-0733-0726), pp. 25-28, 31. Also: Retirement Planning Member Guidebook (March 2025), p. 6. Statute: N.J.S.A. 18A:66-37, 18A:66-43. Last reviewed .