Page 31 August 2024 PFRS Member Guidebook
Police and Firemen’s Retirement System
Purchase Arrears — When you apply for a purchase
of service credit, the NJDPB assumes that the obli-
gation will be paid before your retirement. Therefore,
your account is credited with the full amount of service
you have agreed to purchase. If this obligation has not
been fully paid when you retire, your Quotation of Re-
tirement Benets will state the balance of your arrears
(purchase) as of your retirement date. At that time, you
must pay the balance of your arrears.
If you do not pay o the balance, the service credit
which has not been paid for will be subtracted from your
total years and months of service. This will reduce the
amount of your retirement allowance and may even af-
fect your eligibility to retire. Contact the NJDPB as soon
as possible to advise whether or not you wish to pay o
the arrears balance in full.
For Deferred Retirees who have an outstanding arrears
obligation for the purchase of additional service credit,
interest may be assessed if there was a lapse in pay-
ments of two years or more.
Shortages — A shortage in your pension account oc-
curs when your employer does not deduct the proper
pension contribution from your salary. You will be noti-
ed by the NJDPB of the amount of any shortage. You
are responsible for payment of any shortages at retire-
ment.
No retirement will be paid until purchase arrears and
shortage obligations have been satised. Contact the
NJDPB as soon as possible if your Quotation of Retire-
ment Benets indicates an arrears balance or shortage.
After Your Retirement Date
Statement of Retirement Allowance — You will re-
ceive a letter conrming your retirement and death ben-
ets. The letter will also supply gures needed in ling
your income tax return. Keep this with your important
papers.
Due and Payable — Your retirement becomes due and
payable after there has been a break in employment
without pay of at least 30 days following your retirement
date, or 30 days following approval of your retirement
by the PFRSNJ Board of Trustees, whichever is later.
Once your retirement becomes due and payable you
cannot change your retirement date.
Note: If you return to a PFRS-eligible position before
the 30 days have elapsed, on either a paid or voluntary
basis, your retirement may be considered invalid and
you could be required to reimburse the retirement sys-
tem and reenroll in the PFRS. The same is true if you
return to your former employer/employee relationship
before meeting the requirements of a bona de sever-
ance of employment, having terminated your employ-
ment relationship for at least 180 days from your date
of retirement. See the Employment After Retirement
Restrictions Fact Sheet for additional requirements of
a valid retirement.
Retirement Checks — Your rst retirement check can-
not be issued earlier than 30 days following your retire-
ment date. If processing of your retirement is delayed,
your rst check will be retroactive to the date of your
retirement.
Regular retirement checks are dated on the rst of the
month and are the allowance for the previous month.
For example, if you retire on July 1st, your rst retire-
ment check would be due and payable on August 1st
and is payment for the month of July.
Change of Address — It is important that you inform
the NJDPB of the change by using the Retiree Change
of Address function in MBOS, calling the Automated
Information System at (609) 292-7524, or completing
a Change of Address Form available on our website.
If notifying the NJDPB of a change of address in writ-
ing, be sure to include both your old and your new ad-
dress and your retirement number or last four digits of
your Social Security number.
Direct Deposit/Electronic Funds Transfer (EFT) —
Direct deposit of retirement checks is mandatory ex-
cept for foreign mailing addresses. Direct deposit will
prevent your retirement checks from being lost, stolen,
or delayed in the mail.
You can sign up for direct deposit up to two months
prior to your retirement date using the Electronic Funds
Transfer application available to pending retirees
through MBOS. Registered retirees can also start or
change direct deposit online, at any time, using MBOS.
Please allow approximately 60 days for a new direct de-
posit, or changes to an existing direct deposit, to begin.
Withholding Federal and N.J. State Income Tax —
The NJDPB will provide for the withholding of federal
and New Jersey State income tax from your retirement
check.
The default withholding status for federal income tax
is Single with no adjustments regardless of your ac-
tual marital status or number of dependents. The
NJDPB is obligated to withhold federal income tax at
this status unless you submit a change to your federal
withholding through your MBOS account using the “In-
come Tax Withholding” button after you receive your
rst retirement check. Refer to IRS Form W-4P for in-
structions regarding federal tax withholding.
New Jersey income tax withholding is voluntary, and
none will be withheld unless you give instructions to do
so. Please keep in mind that if you live outside New
Jersey your retirement benets are not subject to New
Jersey State income tax, but may be subject to state or
local taxes in the jurisdiction in which you reside. There
is no provision for withholding any local or out-of-state
taxes.
Retirees can increase or decrease existing withhold-
ing amounts by using the online federal and New Jer-
sey W-4P applications available to retirees on MBOS.
Please note that IRS Form W-4R should be used for
non-periodic payments and eligible rollover distribu-