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University Hospital
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 Benefits

Retirement Plans

Enrollment Regulations

Enrollment in a pension plan for eligible staff employees is mandated by the State of New Jersey.

Public Employees' Retirement System (PERS) 

PERS Retirement Plan Eligibility

PERS enrollment and retirement eligibility is based on the “membership tier”. The member’s enrollment date identifies the tier the employee is enrolled under.

  • Tier 1 Membership, members enrolled prior to July 1, 2007.
  • Tier 2 Membership, members enrolled between July 1, 2007 and November 1, 2008.
  • Tier 3 Membership, members enrolled between November 2, 2008 and May 20, 2010.
  • Tier 4 Membership, members enroll between May 21, 2010 and June 27, 2011.
  • Tier 5 Membership, members enrolled on or after June 28, 2011.

For enrollment eligibility please see “membership tiers”.

  • Employees holding "F" or "J" visas are not eligible to participate

PERS Plan Highlights

  • A defined benefit plan
  • Retirement benefit is based on a formula
  • Employee contributions (up to the pensionable maximum set for the membership tier)
    • July 2014 6.92%
    • July 2015 7.06%
    • July 2016 7.20%
    • July 2017 7.34%
    • July 2018 7.50%
       
  • Ten (10) year vesting based on credited service (years of pension contributions)
  • Service Retirement- Age Requirements: may retire regardless amount of service credit:
    • Members enrolled in Tiers 1 and 2: age 60
    • Members enrolled in Tiers 3 and 4: age 62
    • Members enrolled in Tier 5: age 65
  • Loans permitted upon completion of three (3) years of service
  • Disability Insurance is available for members

 

PERS Formula Used to Calculate Maximum Annual Pension

  • Membership Tiers 1, 2 and 3
    (Years + months of service)/55  x  average of the highest 3 years of membership or any highest fiscal years
  • Membership Tiers 4 and 5
    (Years + months of service)/60  x  average of the last 5 years of membership or any 5 highest fiscal years

Purchasing Service Credit

  • It may be beneficial to purchase additional service credit for prior public service
  • Examples of service that members may be eligible to purchase include: temporary service (prior to enrollment), leave of absence without pay, former membership service, out-of-state service, U.S. government service or military service
  • Request to purchase service credit is submitted online through Member Benefits Online system (MBOS).

For additional information
Division of Pensions and Benefits PERS website

Alternate Benefit Program (ABP) 

ABP Retirement Plan Eligibility

University Hospital employees hired July 1, 2013 and after are not eligible for enrollment in this plan.

UMDNJ employees enrolled in ABP and became University Hospital employees on July 1, 2013 are eligible to continue membership in ABP.

 

ABP Plan Highlights

  • A defined contribution plan
  • Retirement benefits based on investment growth over time and type of payout option selected
  • Members allocate contributions to State-authorized investment carriers
  • Members hired July 1, 1996 or later, contribute 5% of base salary pretax up to the annual compensation limit of $270,000 for 2017. Members hired prior to July 1, 1996 are grandfathered and not subject to this provision
  • There is an 8% employer match that is limited to an annual salary of $141,000 based on state regulations
  • Loans are permitted
  • Vesting:
    • Immediate if employee owns a retirement contract from a previous employer in the field of higher education or is an active/vested member of a state-administered retirement system
    • Twelve (12) month delayed vesting for newly eligible employees who do not meet the above criteria
    • Members in delayed vesting status who terminate employment with UH will receive their contributions only (not employer contributions)

State-authorized Investment Carriers
AIG-VALIC
AXA Equitable
MassMutual Retirement Services
Voya Financial Services
MetLife
Prudential
TIAA-CREF

Purchase of Service Credit Option is not available under this retirement plan.

Employees enrolled in ABP under UMDNJ who separate employment from University Hospital through no fault of their own and become re-employed by UH within two (2) years of separation are eligible to resume the ABP membership.

For additional information:
Division of Pensions and Benefits ABP website
 

Defined Contribution Retirement Program (DCRP) 

DCRP Eligibility

  • Hired after May 21, 2010 earning more than $5,000 and scheduled hours are less than 35 hours per week
  • PERS (Tier 4 & 5) members whose scheduled hours are reduced to below 35 hours per week
  • PERS (Tier3) members with earnings below the minimum base salary.  Waive (irrevocable election)
  • Optional enrollment for PERS (Tiers 2,3,4 & 5) members who earn over the maximum wage limit $127,200 in 2017
     

DCRP Plan Highlights

  • A defined contribution plan
  • Retirement benefits based on investment growth over time and type of payout option selected
  • Members allocate contributions to State authorized investment carrier (Prudential Retirement)
  • Employee contributions - 5.5% of annual base salary
  • Employer contributions - 3%
  • Up to the annual compensation cap of $270,000 in 2017
  • Vesting employer contributions are not vested in DCRP until after the member commences the second year of employment or unless the member is a member of another State administered pension plan
  • A PERS member enrolled in DCRP is immediately vested
  • Purchase of Service Credit Option is not available under this retirement plan

For additional information:
Division of Pension and Benefits DCRP website.
 

Life Insurance 

Plan Highlights

  • Underwritten by the Prudential Insurance Company
  • Payable to named beneficiary
  • New PERS and DCRP members age 60 or older require proof of insurability prior to enrollment
  • Ceases 31 days after termination of employment

Public Employees' Retirement System (PERS)

Coverage amount:

  • Non-contributory amount = one and a half times (1.5 x) the total annual base salary upon which your pension contributions were based during the year preceding your death during active service (100% employer paid)
  • Contributory amount = one and a half times (1.5 x) the total annual base salary upon which your pension contributions were based during the year preceding your death during active service (100% employee paid)
  • Members hired July 1, 2007 or later will have their annual base salary capped at the annual Maximum Compensation Limit
  • Cost of contributory life insurance to employee = annual base salary x .0050
  • Member may cancel contributory portion after one (1) year
  • Irrevocable decision for members who cancel, they cannot be reinstated

Alternate Benefit Program (ABP)

  • Coverage amount = three and a half times (3.5 x) annual base salary received prior to death (prorated in the first year)
  • Members hired on July 1, 1996, or later will have their annual base salary capped at $945,000 in 2017
  • No cost to employee

Defined Contribution Retirement Program (DCRP)

  • Coverage amount = one and a half times (1.5 x) annual base salary (prorated in first year)
  • No cost to employee

Changing Group Life Insurance Beneficiary

Waiving Group Life Insurance Coverage Over $50,000

  • Change anytime
  • Members can elect to waive insurance coverage over $50,000


  • Additional information:
    NJ Division of Pension and Benefits Group Life Insurance website

Disability Insurance  

Plan Highlights

  • Underwritten by the Prudential Insurance Company
  • Ceases 31 days after termination of employment

Public Employees' Retirement System (PERS)

  • Members enrolled on/or prior to May 21, 2010
    Ordinary Disability Retirement - 43.6% of retirement allowance
    Accidental Disability Retirement - 72.7% of retirement allowance
  • Members enrolled after May 21, 2010
    Disability Insurance - 60% of base monthly salary offset by Social Security and Workers Compensation

Defined Contribution Retirement Program (DCRP)

  • 60% of base monthly salary offset with Social Security and Workers Compensation

Alternate Benefit Program (ABP)

  • 60% of base monthly salary offset with Social Security and Workers Compensation

Loan Requests for PERS 
 

Eligible PERS member who wishes to borrow against their pension account must submit the loan request online using the Pension Loan Application accessible through a personal account with the Member Benefits Online System (MBOS).

Additional Information
Division of Pensions and Benefits website Pension Loans
 

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questions at benefits@uhnj.org
 

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University Hospital 150 Bergen St, Newark, NJ 07103 • (973) 972-4300
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