Which of the new Jersey pension plans will you sign up for?
NJ pensioners who want to receive their full pension will have to sign up by Feb. 17 to receive it.
That’s according to the state’s Department of Labor and Industry, which is launching a pilot program to test the viability of the two most popular retirement plans in the Garden State.
The two plans, which are separate, differ in how they’re calculated, how much money is saved and how much will be paid out, but both offer similar benefits, according to NJLIA.NJLIA will launch the pilot program on Feb. 11, and has set a target for the final payout of $8,000 a month.
That means those who choose to enroll in either plan will save $100 a month in the first year and $300 in the second year.
The first month of the program will be spent paying for the cost of the plan and also paying off the remaining balance of their old pension, said NJLIL.
The second month will be devoted to paying off other existing liabilities and paying off any outstanding balances, NJLILA said.
The plan that was chosen to receive the most public support in the pilot is the New Jersey Pension Benefit Plan.
The plan will earn a 3 percent annual return on assets and a 1.5 percent return on liabilities.
It’s the first time a plan has earned the 3 percent and the 1.
5 percent rates in the same year.
It’s a different kind of investment, according the Pension Benefit Investment Council of New Jersey, a nonprofit that advocates for the plan.
It doesn’t pay for any assets.
It doesn’t offer a 401(k) plan, which means that you pay your pension.
Pensioners can opt out of the New Brunswick-based plan.
NJLIL will be the first agency to test a new pension plan in the state, which has a growing pension pool.
In December, the New York State Teachers’ Retirement System launched a similar pilot, and it is also a separate program.
The New Jersey program will receive more than $100 million in state aid over the next two years.