Types of Retirement Options

Retirement Planning 

Employees planning for retirement should use the Retirement Planning Resource for timelines, forms, and information.  An intent to retire letter must be completed and submitted to the Superintendent of Schools, School Business Administrator and the Office of Human Resources by January 31st in order to be eligible for sick day payout upon retirement, if applicable under your collective bargaining or non-affiliated agreement.

For more information about eligibility and benefits, access the online guide to retirement - Online Guide to Retirement, or reach out to the Office of Human Resources at paramusbenefits@paramusschools.org or 201-261-7800 ext. 3054. 

Retirement Systems

Eligible employees of Paramus Public Schools are enrolled in one of the state-administered retirement systems based on their position and employment status. These defined-benefit pension plans provide retirement income based on years of service and final average salary, and are funded through mandatory employee and employer contributions.

The following retirement systems are applicable to public education employees in New Jersey:

• Teachers' Pension and Annuity Fund (TPAF): Mandatory for certified instructional and administrative staff working in positions that require New Jersey Department of Education certification.

• Public Employees’ Retirement System (PERS): Applicable to eligible non-certified staff, including clerical, administrative, and support personnel, who meet the minimum hours and salary threshold.

Employee Contributions

Employee contributions to the pension system are deducted from each paycheck on a pre-tax basis. Contribution rates are determined by the State of New Jersey and are subject to change. The employer (Board of Education) also contributes a percentage, as required by law, on behalf of each participating employee.

Enrollment and Membership Tiers

Pension membership is automatic for eligible employees and is classified into tiers based on enrollment date. Membership tier determines factors such as retirement eligibility, benefit calculation formulas, and minimum years of service required. Detailed tier descriptions can be found on the New Jersey Division of Pensions and Benefits website.

Service Credit and Vesting

• Employees earn service credit for each year of pension-eligible employment.

• Members become vested after a minimum of 10 years of service credit (or as defined by their tier), at which point they become eligible for a retirement benefit upon reaching the required age.

• Purchases of prior service or out-of-state service credit may be available under certain conditions.

Types of Retirement

Depending on age and years of service, members may be eligible for:

• Service Retirement

• Early Retirement

• Deferred Retirement

• Disability Retirement

Each type of retirement has specific eligibility criteria and benefit calculations. Employees are encouraged to contact the Division of Pensions and Benefits for assistance in determining retirement options.

Retirement Planning and Counseling

Employees considering retirement should begin planning well in advance. The Human Resources Department can assist in providing general information and directing staff to the appropriate state resources. The New Jersey Division of Pensions and Benefits also offers retirement planning webinars, pension calculators, and individual counseling.

Supplemental Retirement Savings Plans

In addition to the state pension, employees may participate in voluntary tax-deferred savings plans such as:

• 403(b) Tax Sheltered Annuity Plans

• 457(b) Deferred Compensation Plans

These plans provide employees with opportunities to save additional retirement income. Participation is optional and contributions are deducted from paychecks based on the employee’s selected amount.