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State Teacher Plans for New Jersey
Many teachers do not have access to low-cost choices in their 403(b) plans. Of the 226 district 403(b) plans that we have graded so far in New Jersey, 0 districts have an A rating, 1 district has a B rating, 87 districts have a C rating, 86 districts have a D rating, and 52 districts have an F rating.
If you are a teacher in New Jersey, here are the state teacher plan options that are available to you.
New Jersey TPAF
Most states still offer a traditional formula-based pension. Under this type of arrangement an educator would receive a percentage of their final year's salary until death that is based on some combination of years worked, age, and salary. Some states have made pension plans less generous to new hires, and some states have replaced traditional pensions with 401(k)-type plans.
More information about the New Jersey TPAF plan is available directly from the pension website, and Karl Fisch's book on the New Jersey pension is available here. Pension plan information for other states is also available for reference through this state pension search tool. This data is shared with us by Karl Fisch, and it is current as of January 1, 2025.
Applicable to All Teachers
Social Security
New Jersey teachers also pay into Social Security
Administrative Fee for Supplemental Plans
None
New Teachers Hired On or After 1/1/2024
Defined Benefit
Employee: 7.5%; Employer: 34.64%
Multiplier
FAS/60
Average Salary
Highest 60 consecutive months
Normal Retirement
Age 65
Cost-of-Living Adjustment (COLA)
None
Veteran Teachers Hired Prior to 1/1/2001
There are 3 additional benefit tiers between the new teacher and veteran teacher tiers compared here. The exact transition dates between these tiers are not relevant to this comparison.
Defined Benefit
Employee: 7.5%; Employer: 34.64%
Multiplier
FAS/55
Average Salary
Highest 36 consecutive months
Normal Retirement
Age 60
Cost-of-Living Adjustment (COLA)
None
New Jersey 457(b)
Every state operates a 457(b) plan that serves governmental workers like police, fire, and state government officials. These plans are generally excellent, and in many cases they are superior to the 403(b) offerings available in school district plans. Most states allow educators to participate in these plans; unfortunately, about a dozen do not.
Find out more about how we rate state 457(b) plans and view plans in other states.
Green NJSEDCP
New Jersey teachers are not eligible to contribute to this plan.
Fees
0.064% admin fee, $0 account fee, and a low index fee
Record Keeper
Empower
Target Date Fund
Goalmaker