Bona fide severance
A complete break from your former employer for at least 180 days after retirement.
Chapter 78
P.L. 2011, c. 78 (effective June 28, 2011): raised contributions, set Tier 5, suspended COLAs and set retiree health contributions.
COLA
Cost-of-living adjustment. Suspended for all New Jersey pension systems since June 28, 2011; increases granted before then stay.
DCRP
Defined Contribution Retirement Program, an investment account for pay above the compensation limit (Tiers 2-5) or for people who don't meet TPAF salary or hours rules.
Deferred Retirement
A pension for a member who leaves with 10 or more years before the service retirement age, starting at that age with no reduction. You must apply for it.
Due and payable
The point (30 days after the retirement date or Board approval, whichever is later) after which your retirement date and option are locked.
Early Retirement
Retirement before the service retirement age with 25 years of service (30 in Tier 5), reduced for each month you are under the tier's reduction age.
Final Average Salary (FAS)
The salary used to compute your pension: the average of your last 3 years (Tiers 1-3) or 5 years (Tiers 4-5) of base salary, or your highest fiscal years if higher.
Maximum compensation limit
For Tiers 2-5, the Social Security maximum wage for the year; pay above it doesn't count toward your pension and goes to the DCRP instead.
Maximum Option
The highest allowance, paid for your life only.
MBOS
Member Benefits Online System: where you get estimates and file for retirement, loans and purchases.
NJDPB
The New Jersey Division of Pensions & Benefits, which administers the TPAF.
Option 1 (reducing reserve)
A payment option where a reserve set at retirement goes down by each monthly check; any balance left at your death goes to your beneficiaries.
Pop-up option
Options A, B, C and D: your beneficiary gets 100%, 75%, 50% or 25% of your check, and your check rises to the Maximum if your beneficiary dies first.
Purchase of service
Buying credit for eligible service that wasn't covered, such as temporary service, leaves, out-of-state or military service, at a cost set by the purchase rate chart.
Retirement allowance
The pension plus the annuity.
SEHBP
School Employees' Health Benefits Program, which offers retired group coverage to eligible TPAF retirees.
Service retirement
Retirement at your tier's service retirement age (60, 62 or 65) with no minimum service and no reduction.
Tier
The set of TPAF rules you fall under, from Tier 1 to Tier 5, set by the date you were first eligible to enroll. It decides your formula, final average salary period and retirement ages.
Vested
Having 10 years of service, which guarantees a retirement at your tier's normal retirement age.
Veteran Retirement
A retirement for qualified veterans at 55 with 25 years or 60 with 20 years, paying 54.5% of the highest 12 months of base salary.
No terms match. Try a shorter word.
Plain English, not the official wordingThese definitions put the NJDPB's publications into everyday words. They aren't the official definitions, and they aren't legal or financial advice. The NJDPB decides your benefit.
Source: TPAF Member Guidebook, July 2026 (SP-0733-0726), pp. 4, 7, 10, 12, 14-16, 23, 25-26, 29-30, 32, 34. Also: NJDPB Fact Sheet #86 (Sept. 2025), p. 2. Also: NJDPB Fact Sheet #11 (Oct. 2026), pp. 1, 3. Also: NJDPB Fact Sheet #79 (Feb. 2026), p. 1. Statute: N.J.S.A. 18A:66-2, 18A:66-29, 18A:66-43, 43:3B-2. Last reviewed .