March 18, 2009
Re: Pension Deferral Signed
Last evening, Governor Corzine signed the Pension Payment Deferral Option legislation, S-21/A-3868.
For detail on the legislation, see our March 12 letter at http://www.njslom.org/ml031209.html. And a copy of the bill is available at http://www.njleg.state.nj.us/2008/Bills/S0500/21_I1.PDF.
The new law requires the Treasurer to prepare new bills, reflecting the option to pay only 50%, subject to approval by the Local Finance Board. However, there is nothing in the law to alter the April 1 due date for pension payments. This, obviously, will put unexpected pressure on those of you who might need to take the 50% deferral.
We have contacted the Division of Local Government Services. DLGS expects to have a Local Finance Notice out on this, later today or tomorrow. They are also working with the Division of Pensions to provide some flexibility for municipalities forced to deal with this, in such a tight time frame. For more information, contact Jon Moran at 609-695-3481, ext. 121.
Very truly yours,
William G. Dressel, Jr.