Pension Contribution Increases for the the Teachers’ Pension and Annuity Fund (TPAF) and Public Employees’ Retirement System (PERS)Effective July 1, 2013 TPAF and PERS employee contribution rate to the State pension system increased from 6.64% to 6.78% of salary.Public Law 2011, Chapter 78 mandates that pension contribution increases be phased incrementally over a seven year period beginning in July 2012, until members are paying 7.5% of salary as of July 2018.
July 2013 marks the third rate increase under the Chapter 78 provisions. The fourth contribution rate increase to 6.92% of salary will be effective July 2014.
The change in the employee’s contribution rate also increases the minimum repayment amount for new pension loans and the cost for a purchase of service credit if it is approved after the increased contribution rate becomes effective.
For more information, please go to http://www.state.nj.us/