N.J. Stat. § 18A:66-175: Termination of membership or participation.

9. Membership or participation in the alternate benefit program shall terminate and the individual shall be considered retired once he has elected to receive a distribution of the value of his accounts in a direct payout, a rollover, an annuity, or a combination thereof. Any such distribution shall occur only upon separation from service, unless the individual is a participant in a transition to retirement program that meets the requirements for such programs established by the Division of Pensions and Benefits.

L.1969, c.242, s.9; amended 1993, c.385, s.7; 2013, c.120, s.1.