Choose the Maximum Option or one of eight other options. Your and your beneficiary's ages set the reduction (younger beneficiary, larger reduction). If you and your beneficiary both die before your accumulated contributions plus interest are paid out, the rest goes to your estate. The option can't be changed once the retirement is due and payable (30 days after the retirement date or Board approval, whichever is later). MBOS estimates show option amounts if you enter your beneficiary's birth date. Proof of age for the beneficiary is required for Options A, B, C, D, 2, 3 and 4. Guidebook pp. 29-31; Planning Guide p. 7
Every option starts from the Maximum Option the formula gives, after any early-retirement cut.
The nine choices
| Option | Your beneficiary gets | If they die first | Your check |
|---|---|---|---|
| Maximum Option | None | — | Highest |
| Option A (100% pop-up) | 100% of your check | Yours pops up to the Maximum | Less than the Maximum Check with NJDPB |
| Option B (75% pop-up) | 75% of your check | Yours pops up to the Maximum | Less than the Maximum Check with NJDPB |
| Option C (50% pop-up) | 50% of your check | Yours pops up to the Maximum | Less than the Maximum Check with NJDPB |
| Option D (25% pop-up) | 25% of your check | Yours pops up to the Maximum | Less than the Maximum Check with NJDPB |
| Option 1 (reducing reserve) | What's left of a reserve | No change | Less than the Maximum Check with NJDPB |
| Option 2 (100% joint and survivor) | 100% of your check | No change | Less than the Maximum Check with NJDPB |
| Option 3 (50% joint and survivor) | 50% of your check | No change | Less than the Maximum Check with NJDPB |
| Option 4 (specified amount) | An amount you choose | No change | Less than the Maximum Check with NJDPB |
Option amounts aren't published; they depend on both ages. Guidebook pp. 29-31; Planning Guide p. 7
New Jersey doesn't publish the reduction for each payment option. The one published example (a 59-year-old with a 60-year-old spouse) keeps about 85.5% of the Maximum under Option A and 94% under Option C.
We show the Maximum amount and the survivor share of each option, and the published example. We don't estimate option amounts for other ages.
Guidebook pp. 29-30; Planning Guide p. 7Each option in plain English
- Maximum Option
- Highest allowance, for your life only. At death, any of your contributions with interest not yet paid out go to your beneficiary. If you are married or in a domestic partnership, the State must notify your spouse or partner. Guidebook p. 29; N.J.S.A. 18A:66-47.1
- Option A (100% pop-up)
- Beneficiary gets the same monthly allowance for life. If the beneficiary dies first, your allowance rises to the Maximum. One beneficiary; can't be changed once due and payable. IRS age limits for a nonspouse beneficiary. Guidebook pp. 29-30; N.J.S.A. 18A:66-47 Option 5
- Option B (75% pop-up)
- Beneficiary gets 75% of your monthly allowance for life; pops up to the Maximum if the beneficiary dies first. IRS age limits for a nonspouse beneficiary. Guidebook pp. 29-30
- Option C (50% pop-up)
- Beneficiary gets 50% of your monthly allowance for life; pops up to the Maximum if the beneficiary dies first. Guidebook p. 29
- Option D (25% pop-up)
- Beneficiary gets 25% of your monthly allowance for life; pops up to the Maximum if the beneficiary dies first. Guidebook p. 29
- Option 1 (reducing reserve)
- An initial reserve based on your life expectancy is reduced each month by your initial monthly allowance. At your death any balance goes to your beneficiaries (more than one allowed, changeable at any time), as a lump sum or an annuity. If the reserve runs out you keep your allowance for life but nothing is payable at death. Guidebook p. 29; N.J.S.A. 18A:66-47 Option 1
- Option 2 (100% joint and survivor)
- Beneficiary gets the same monthly allowance for life. No increase if the beneficiary dies first, and no new beneficiary. One beneficiary. IRS age limits for a nonspouse beneficiary. Guidebook pp. 29-30; N.J.S.A. 18A:66-47 Option 2
- Option 3 (50% joint and survivor)
- Beneficiary gets 50% of your monthly allowance for life. No increase if the beneficiary dies first. One beneficiary. Guidebook pp. 29-30; N.J.S.A. 18A:66-47 Option 3
- Option 4 (specified amount)
- Beneficiary(ies) get a fixed monthly amount you specify, for life. Your allowance can't be more than under Option 2 (statute: the lesser allowance can't be smaller than Option 2). Calculated individually by the NJDPB; more than one beneficiary allowed. Age limits apply to a nonspouse beneficiary whose amount is more than half your allowance. Guidebook p. 30; N.J.S.A. 18A:66-47 Option 4
The NJDPB's example: Mary Jones
Member 59 with 29 years 8 months, FAS $58,500 (last three years), over 25 years and over 55 so an unreduced Early Retirement; spouse beneficiary 60. Option amounts are for these ages only.
| Option | Mary gets | Share of Maximum | Beneficiary gets |
|---|---|---|---|
| Maximum Option | $2,629.55 | 100.0% | $0.00 |
| Option A (100% pop-up) | $2,248.26 | 85.5% | $2,248.26 |
| Option B (75% pop-up) | $2,353.44 | 89.5% | $1,765.08 |
| Option C (50% pop-up) | $2,471.77 | 94.0% | $1,235.89 |
| Option D (25% pop-up) | $2,553.29 | 97.1% | $638.32 |
| Option 1 (reducing reserve) | $2,558.55 | 97.3% | Reserve $306,079.09 |
| Option 2 (100% joint and survivor) | $2,274.56 | 86.5% | $2,274.56 |
| Option 3 (50% joint and survivor) | $2,484.92 | 94.5% | $1,242.46 |
Amounts are the NJDPB's, for these two ages only. "Share of Maximum" is our arithmetic. Option 4 isn't in the example because it's figured one by one. Planning Guide pp. 7-8, Option Example
Beneficiaries who aren't your spouse
Options 2 and A: a nonspouse beneficiary can be no more than 10 years younger than you (Option B: 19), after subtracting the gap between your age at retirement and the applicable age if you retire younger than it. Options C, D, 1 and 3: any age. Civil union and domestic partners count as nonspouse for this IRS rule. Guidebook p. 30, Age Limits on Nonspouse Beneficiaries
What the NJDPB says
- At retirement you choose the Maximum Option or one of eight others: A, B, C, D (100%, 75%, 50%, 25% to your beneficiary, rising back to the Maximum if the beneficiary dies first), Option 1 (a reducing reserve paid to your beneficiaries), Options 2 and 3 (100% and 50% to your beneficiary, no pop-up), or Option 4 (a set amount you choose).Guidebook pp. 29-30; Planning Guide p. 7
- New Jersey doesn't publish option factors. In its one example, a 59-year-old with a $2,629.55 Maximum and a 60-year-old spouse would get $2,248.26 under Option A, $2,353.44 under B, $2,471.77 under C, $2,553.29 under D, $2,274.56 under Option 2 and $2,484.92 under Option 3.Planning Guide p. 7, Sample Options for Member
- You can't change your option or beneficiary once the retirement is due and payable: 30 days after the retirement date or 30 days after Board approval, whichever is later.Guidebook pp. 29, 32
- For Options 2, A and B, IRS rules limit how much younger a beneficiary who isn't your spouse can be (10 years for 2 and A, 19 for B, with an adjustment if you retire young). Civil union and domestic partners count as nonspouse for this rule.Guidebook p. 30
- If you choose the Maximum and are married or in a domestic partnership, the State must notify your spouse or partner.Guidebook p. 29; N.J.S.A. 18A:66-47.1
Questions
What payment options does the TPAF offer?
9: the Maximum Option and eight others. Options A, B, C and D leave your beneficiary 100%, 75%, 50% or 25% of your check and "pop up" to the Maximum if your beneficiary dies first. Options 2 and 3 leave 100% or 50% with no pop-up. Option 1 is a reducing reserve, and Option 4 is a fixed amount you choose.
How much less is a survivor option?
The NJDPB doesn't publish the factors. It depends on your age and your beneficiary's age. In its one example (member 59, spouse 60), Option A paid about 85.5% of the Maximum and Option C about 94%. MBOS shows your own amounts.
Can I change my option later?
Not once your retirement is due and payable: 30 days after your retirement date or the Board's approval, whichever is later.
Source: TPAF Member Guidebook, July 2026 (SP-0733-0726), pp. 29-32. Also: Retirement Planning Member Guidebook (March 2025), pp. 7-8. Statute: N.J.S.A. 18A:66-47, 18A:66-47.1. Last reviewed .