Updated October 30, 2026. Quick answer: A retiring New Jersey judge in the Judicial Retirement System (JRS) chooses the Maximum Option (single life) or one of eight voluntary options, and each option except the Maximum reduces the monthly allowance. Options A, B, C and D pay a named beneficiary 100%, 75%, 50% or 25% of the allowance being paid at death. A surviving spouse also receives a statutory benefit of 25% of the current salary for the judicial position held at retirement, whichever option is chosen. The option cannot be changed once the retirement is due and payable, which is 30 days after the retirement date. Withdrawing contributions ends membership, and 20% of the taxable part is withheld unless it is rolled over (the guidebook applies the withholding to distributions of $200 or more of annual taxable income).
More on public pension COLAs for 2027: the New Jersey JRS COLA for 2027 and the suspension since 2011.
What this page covers and what it does not
This page works from the New Jersey Division of Pensions and Benefits (NJDPB) Judicial Retirement System Member Guidebook, printed March 2025, the system’s actuarial valuation as of July 1, 2025 (Cheiron, February 2026) and the Division’s annual financial report for the year ended June 30, 2025. The guidebook says: “The JRS covers the Chief Justice and Associate Justices of the State Supreme Court, as well as all judges of the Appellate Court, Superior Court, and Tax Court of the State of New Jersey.” It says it “provides a summary description of the benefits of the plan” and that “if there is a conflict with statutes governing the plan or regulations implementing the statutes, the statutes and regulations will take precedence”. Disability retirement, group life insurance and retiree health coverage are not examined in depth. Other New Jersey systems have their own rules: New Jersey PERS retirement decisions, New Jersey PFRS retirement decisions and New Jersey TPAF retirement decisions.
When a pension can start
The guidebook says “retirement from the JRS is mandatory at age 70”. It defines Final Salary as “the salary on which your JRS pension contributions are based as of the date of your retirement”. Before age 70, it lists these routes.
| Route | Age and service | Pension |
|---|---|---|
| Service, judicial service only | Age 70 with 10 or more years of judicial service; 65 or older with 15 or more; or 60 or older with 20 or more | 75 percent of Final Salary |
| Service, judicial and non-judicial | Age 65 or older with 15 or more years, or 60 or older with 20 or more, in the aggregate of public service, with five or more consecutive years judicial | 50 percent of Final Salary |
| Service, by formula | Age 60 or older with 15 or more years in the aggregate, five or more consecutive years judicial | Two percent of Final Salary per year up to 25, plus one percent per year over 25 |
| Early | Before 60, with five or more consecutive years judicial and 25 or more years in the aggregate | The same formula, actuarially reduced for the months until age 60 |
| Deferred | Leaving before 60 after five or more consecutive years judicial and 10 or more years in the aggregate | The same formula, not reduced, payable at 60 |
A computed example, not a JRS figure: with an assumed Final Salary of $200,000, a member retires at 60 with 15 years in the aggregate of public service, five or more consecutive years of it judicial. Two percent of Final Salary for each of 15 years gives a computed $60,000 a year, or a computed $5,000 a month, before any option reduction.
The election: Maximum Option or one of eight
The guidebook says “you may also elect one of eight voluntary pension options that provide a pension benefit to a named beneficiary of your choice”. “Selecting a pension option will reduce your monthly retirement allowance; the amount of this reduction depends on which option you select.” The Maximum Option “is the highest amount payable and provides a retirement benefit to you for the remainder of your life”, and “Upon your death, benefits end and your survivors do not receive a pension allowance other than those provided under the statutory survivor benefits”.
| Option | What the beneficiary receives | If the beneficiary dies first |
|---|---|---|
| Maximum | Nothing monthly beyond the statutory survivor benefit; unrecovered contributions plus interest go to a named beneficiary or the estate if there is no statutory survivor | Not applicable |
| Option A | The same monthly allowance being paid at death, for the beneficiary’s lifetime | Allowance rises to the Maximum Option amount |
| Option B | 75 percent of the allowance being paid at death, for life | Allowance rises to the Maximum Option amount |
| Option C | 50 percent of the allowance being paid at death, for life | Allowance rises to the Maximum Option amount |
| Option D | 25 percent of the allowance being paid at death, for life | Allowance rises to the Maximum Option amount |
| Option 1 | The balance of an initial reserve, if any, paid to beneficiaries | Not described for this case; the beneficiary may be changed at any time (nothing is payable to a beneficiary once the member has exhausted the reserve) |
| Option 2 | The same monthly allowance, for life | No increase, no new beneficiary |
| Option 3 | 50 percent of the monthly allowance, for the beneficiary’s lifetime (the valuation summary calls it a 50% joint and survivor annuity) | No increase, no new beneficiary |
| Option 4 | A specified fixed monthly allowance, not more than under Option 2 | No increase, no new beneficiary |
For Options A to D the guidebook says: “If your designated beneficiary dies before you, your monthly allowance increases to the Maximum Option amount.” The cost is set by ages: “the younger the beneficiary, the more your pension is reduced to account for the beneficiary’s longer life expectancy”. Under each of the four, “you may only designate one beneficiary”. Option 1 works differently: it “sets aside an initial reserve based on your life expectancy”. “You may change a beneficiary under this option at any time.” The general trade-off is at single-life versus joint-and-survivor pension.
What a survivor receives whichever option is chosen
An option sits on top of a statutory benefit. For a retired member, the guidebook says: “Upon your death as a retired member, your eligible surviving spouse/partner receives a pension benefit equal to 25 percent of the current salary for the judicial position you held at retirement”. It adds that “whether or not you take an optional settlement at retirement, the statutory survivor benefit for an eligible surviving spouse/partner and/or dependent children remains in effect”. For this benefit the guidebook gives Final Salary its own meaning: “For the purpose of the statutory death benefit, Final Salary means the current salary for the judicial position in which you served at the time of death or retirement” It defines a spouse as a “person to whom you were married for at least four years prior to the date of your death” who “has not remarried or entered into a civil union”. The guidebook waives the four-year requirement when death results from an accident during the performance of regular or assigned duties and is not a result of willful negligence.
A computed example from an assumed $200,000 Final Salary, not a JRS figure: 25 percent of $200,000 is a computed $50,000 a year to an eligible surviving spouse, before any child additions and before any option, taking that assumed figure as the current salary for the judicial position held at retirement. On divorce, the guidebook says: “If another person is designated as the beneficiary of the pension option, the divorced spouse/partner cannot receive any equitable distributions from the survivor’s benefit.”
A computed example from an assumed $6,000 monthly allowance already reduced for the option, not a JRS figure: Option A leaves the beneficiary $6,000 a month; Option B, 75 percent, a computed $4,500; Option C, 50 percent, a computed $3,000; Option D, 25 percent, a computed $1,500. The guidebook does not print each option’s reduction, so the starting allowance comes from the NJDPB quotation.
Who can be named, and the age limits
The guidebook says: “For all options, you can name your spouse as your beneficiary regardless of your spouse’s age.” “For Option C, D, 1, or 3, you can name someone other than your spouse as beneficiary regardless of age.” The guidebook adds that a civil union partner or domestic partner does not qualify as a spouse for this purpose and is subject to the age limits. The IRS limits apply to the rest: “For Options 2, A, or B, if you are naming a beneficiary who is not your spouse, IRS regulations restrict the age of your beneficiary”. Option 4 has its own condition: “If you name a nonspouse beneficiary under Option 4, and the dollar amount of your beneficiary’s pension is more than half of your allowance, restrictions on your beneficiary’s age apply”. For Options 2 and A, “your non-spouse beneficiary can be no more than 10 years younger than you” if the member is 70 or older, and for Option B the limit is 19 years: “your non-spouse beneficiary can be no more than 19 years younger than you”. A member under 70 applies a subtraction rule. “The designation of a beneficiary named on a retirement application that is filed with and accepted by the NJDPB supersedes any older designation of beneficiary on file.”
What is irrevocable and the deadlines
The guidebook warns that “once your retirement becomes due and payable, you cannot change your option selection”. “Due and payable is defined as 30 days after your retirement date.” Until then there is a short window: “You have 30 days from your effective retirement date to request any change to your retirement date, option selection, or option beneficiary.” A member may also cancel the retirement within 30 days of the retirement date, but “Members who are approved for Disability Retirement cannot cancel their retirement”.
On timing, the guidebook says: “You should inquire about retirement at least six months before your retirement date.” “Under no circumstances can a retirement become effective prior to the date the application is received by the NJDPB.” “No retirement will be paid until purchase arrears and shortage obligations have been satisfied.” Unpaid purchased service is removed: “If you do not pay off the balance, the service credit which has not been paid for will be subtracted from your total years and months of service”.
Lump sums: what the documents describe
A lump sum appears in the documents read as a withdrawal of contributions, as the Option 1 reserve and in death benefits. The pages read do not describe a lump-sum retirement option, a partial lump sum or a deferred retirement option plan (DROP). The general question is at pension lump sum versus monthly annuity break-even.
Leaving before retirement: deferred pension or withdrawal
A member who leaves before 60 with the service shown in the table can take a deferred pension. The guidebook says the benefit is “not reduced since it is not payable until you reach age 60”. “You must file an Application for Retirement Allowance for the Deferred Retirement to take effect.” “If a member is removed from employment for cause, he/she will be ineligible for a Deferred Retirement.”
The alternative is withdrawal. “If you terminate judicial service before retirement, you may withdraw all your contributions less any outstanding loan or other obligations.” “You may withdraw only the money you have contributed and partial withdrawals are not permitted.” “Upon your withdrawal, all rights and privileges of membership end.” The paths are linked: “At any time before your Deferred Retirement becomes effective, you may change your mind” and apply for a “lump-sum withdrawal of all your pension contributions”. “If you are age 60 or have at least five years of judicial service and at least 10 years in the aggregate of public service credit when you file for withdrawal, you must waive any rights you have to a retirement or death benefit.” On a return after withdrawing, “you will be treated as a new member of the JRS in all respects”. See pension refund versus leaving it.
The valuation describes the same fork: “Benefit is a refund of accumulated deductions, or a deferred life annuity beginning at age 60”. On interest, its plan summary says “Members receive interest credits while contributing and for the first two years of inactivity”, and its assumptions list “Interest Crediting Rate on Accumulated Deductions” at “7.00% per annum, compounded annually”. That is an actuarial assumption, not a quotation of what a withdrawal will include; the guidebook states no rate.
A deferred pension has other consequences. “If you die before your Deferred Retirement becomes effective, the last named beneficiary will receive a return of your pension contributions.” On health coverage, the guidebook says “JRS members who are electing a Deferred Retirement cannot normally transfer their active health care coverage to the retired group of the State Health Benefits Program (SHBP)”, but “members electing Deferred Retirement may be eligible for continuation of SHBP coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) legislation for up to 18 months if they were covered by the SHBP just prior to terminating employment”.
How a withdrawal is taxed and paid
The guidebook says income tax must be withheld on certain pension distributions that produce an annual taxable income of $200 or more, “unless the taxable amount is directly rolled over into an Individual Retirement Account (IRA) or a new employer’s retirement plan, if applicable”, and “this direct rollover must occur within 60 days of the withdrawal check date”. “If payment is made directly to you, the taxable portion is subject to 20 percent income tax withholding.” It also warns that “if you receive payment before you reach age 59 1/2 and you do not roll it over, you may have to pay an extra tax equal to 10 percent of the taxable portion of any payment”.
A computed example from an assumed $100,000 taxable withdrawal paid directly to the member, not a JRS figure: 20 percent of $100,000 is a computed $20,000 withheld for federal tax, leaving a computed $80,000 in cash before any further tax or penalty. See 20% withholding on a pension lump sum.
Buying service credit
“Only active members of the retirement systems are permitted to purchase service credit.” “Former Membership in a New Jersey State-administered, defined benefit retirement system may be purchased at any time during your membership in the JRS.” To estimate a cost, the guidebook says to “multiply the higher of your current annual salary or highest fiscal year salary times the purchase factor corresponding to your nearest age”. “Members may pay for all or part of a purchase by transferring or rolling over tax-deferred funds from an eligible or qualified retirement savings plan”. The purchase factor chart is in the guidebook and is not reproduced here. A way to set up the break-even is the pension buyback calculator.
Cost-of-living adjustments and taxes after retirement
The guidebook says cost-of-living adjustments for retirees of all retirement systems, the JRS included, “are suspended”, but that “there is no reduction to any COLA increases that were already added to retiree benefits prior to June 28, 2011”. “No future COLA is assumed.” On tax, the guidebook says: “If you began contributing to the pension plan in 1987 or after, and you have not made a purchase of service credit, your entire pension is subject to federal income tax because your contributions have never been taxed.” “New Jersey income tax withholding is voluntary, and none will be withheld unless you instruct us to do so.”
What the IRS adds on tax
A refund or lump sum from a public pension is a distribution, so the IRS rules apply on top of the JRS’s own. On withholding, the IRS says that a taxable eligible rollover distribution paid to you “is subject to mandatory income tax withholding (generally at a rate of 20%), even if you intend to roll it over later”, and that “If you do roll it over and want to defer tax on the entire taxable portion, you’ll have to add funds from other sources equal to the amount withheld”. The guidebook’s withdrawal rules describe the same 20 percent withholding on a payment made directly to the member and a direct rollover as the alternative. The rollover clock, if the money is paid to you: “you have 60 days from the date you receive it to roll it over to another eligible retirement plan”.
On early distributions the IRS says “the law imposes a 10% additional tax on certain early distributions from certain retirement plans”. Its list of exceptions includes “Distributions made to you after you separated from service with your employer after attainment of age 55” and “Distributions made to a qualified public safety employee from a governmental plan (within in the meaning of section 414(d)) provided that the qualified public safety employee has separated from service during or after the year in which they attained age 50 or 25 years of service under the plan, whichever is earlier”. Whether an exception fits a particular refund depends on your own plan and facts, so confirm it with a tax preparer before you take one.
Where the sources disagree
Contribution rate. The guidebook says the Pension and Health Benefit Reform Law “increased the JRS member contribution rate over seven years to bring the total contribution rate to 12 percent of base salary as of July 1, 2017”. The valuation’s plan summary says: “Members enrolled on or after January 1, 1996 contribute 3% of their full salary.” The documents read do not explain the difference, so the member’s own Certification of Payroll Deductions, which the guidebook says shows “your rate of contribution”, is the place to check.
Member count. The annual financial report’s JRS section says: “As of June 30, 2025, the active membership of the system totaled 417.” It counts “817 retirees and beneficiaries”. The valuation’s Table I-1 shows “Contributing Actives 411” and “Non-Contributing Actives 4”, with 728 retirees and beneficiaries. The 417 is an active membership at June 30, 2025 and the 411 is contributing actives at July 1, 2025; this page does not reconcile them.
What this page could not settle
- The pages read do not state how much each option reduces a particular member’s allowance; it depends on the option and the ages, and the NJDPB quotation shows it.
- The pages read do not describe a lump-sum retirement option, a partial lump sum or a DROP.
- The guidebook lists the flat 75 percent route, the flat 50 percent route and the two percent formula as separate rules and does not say how they combine for a member who meets more than one.
- The pages read do not state what interest a withdrawal will include.
- The purchase factor chart is not reproduced here.
- The statute (N.J.S.A. Title 43, Chapter 6A) and rules (N.J.A.C. Title 17, Chapter 10) were seen only through these documents.
- Loans, disability retirement, group life insurance and retiree health coverage were not examined in depth.
Common mistakes
- Assuming an option can be reconsidered after the retirement is due and payable; the guidebook says it cannot.
- Naming a beneficiary under Option A, B, C or D and expecting to replace that person later.
- Overlooking the statutory survivor benefit, which stays in effect whether or not an option is taken.
- Ignoring the IRS age limits when naming someone other than a spouse under Option 2, A or B (and under Option 4 when the beneficiary’s pension exceeds half the allowance).
- Withdrawing contributions without weighing that membership rights end and a later return starts a new membership.
- Taking a withdrawal check directly and expecting the full amount; 20 percent of the taxable portion is withheld unless it is directly rolled over.
Related on this site: New Jersey PERS retirement decisions, New Jersey PFRS retirement decisions, New Jersey TPAF retirement decisions, pension refund versus leaving it, single-life versus joint-and-survivor pension, 20% withholding on a pension lump sum, pension buyback calculator and public pension retirement decisions by system.
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Answer againSources
- New Jersey Division of Pensions and Benefits, Judicial Retirement System (JRS) Member Guidebook, SP-0611-0325 (March 2025): https://www.nj.gov/treasury/pensions/documents/guidebooks/jrsbook.pdf
- Cheiron for the Judicial Retirement System of New Jersey, Actuarial Valuation Report as of July 1, 2025 (February 2026): https://www.nj.gov/treasury/pensions/documents/financial/actuarial2025/2025jrs.pdf
- New Jersey Division of Pensions and Benefits, Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2025: https://www.nj.gov/treasury/pensions/documents/financial/annrpt2025/2025-ACFR-NJDPB.pdf
- IRS, Topic no. 413, Rollovers from retirement plans (irs.gov): https://www.irs.gov/taxtopics/tc413
- IRS, Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs (irs.gov): https://www.irs.gov/taxtopics/tc558
Sources: the primary documents linked above, read on October 30, 2026. General information from each system’s own published materials, not legal, tax or financial advice. Your own member statement and the system’s current rules decide your benefit, and a pension counsellor at the system or a fee-only adviser is the right place to confirm anything consequential.