N.J. Stat. Ann. § 38A:13-9

2. The death benefit provided for in section 1 of P.L.1968, c.278 (C.38A:13-8) shall not be payable where there is a lump sum death benefit payable as a result of the deceased militiaman's membership in a public employees' pension system or when the militiaman was detailed to the Department of Military Affairs in a permanent duty status and entitled to benefits out of federal funds.