New Jersey Pension: TEAM | KCNA Employee Contribution

How much is the contribution? 

The current NJ pension contribution rate is 7.5% of your gross salary. It is important to remember that your payments may not start right away! Once you are enrolled, you may be responsible for double payments (your regular contribution and your back deductions) depending on how quickly the state processes your application.

We suggest that you use the Calculation tool below to figure out your payments and start setting money aside from your pay right away to avoid any surprises later on.

Calculating your pension contribution:

$_________(Gross Salary) X 7.5% = ____________ ÷ 24 = _______________ (The amount that will be withheld each day period toward your pension)

For example: $60,000 X .075 = $4,500 ÷ 24 = $187.50 (The amount that will be withheld each day period toward your pension)

If back deductions are owed, you will pay double this amount until you’re caught up on back contributions. Our office will reach out to you via email to confirm your expected contributions, effective date and payment schedule.

Please refer to the following link, Your Retirement Benefits - NJ Pension for additional information regarding your New Jersey pension account.