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July 9, 2008

Defined Contribution
Retirement Plan (DCRP) REVISED Model Ordinance




Dear Mayor:

Thanks to the efforts of Bob Casey, Executive Director of the New Jersey Municipal Management Association, and the members of NJMMA, we are able to provide you with the model ordinance, for your consideration.  Click here (WORD / HTML) for a copy of the model Ordinance or you can go to our website

As you may recall, in June, the Division of Local Government Services (DLGS) directed each municipality to adopt an ordinance indicating which local officials and/or employees would be enrolled in the Defined Contribution Retirement Plan (DCRP), instead of the PERS.  Soon thereafter, Mr. Casey informed NJMMA members that the ordinance was, in his opinion, defective, since it ignored the concessions made, by the Local Finance Board, for those already in PERS. If not defective, it was, at least, confusing. Having discussed his concerns with DLGS, Mr. Casey has asked us to distribute the REVISED MODEL ORDINANCE for your consideration. 

Mr. Casey suggests that your provide your municipal attorney with this revised ordinance, as well as the Local Finance Notice 2008-10, which sets forth the formal Guidelines.  The suggested changes are in bold.  The DLGS does not take exception to the recommended ordinance, since it does not detract from the legal intention of their original draft.

If you have already introduced or even adopted the original ordinance, you may want to do a revision just to insure there are no future misunderstandings.

Again, we want to express our appreciation to Bob Casey and the members of the NJMMA.


                                                                        Very truly yours,


                                                                        William G. Dressel, Jr.
                                          Executive Director



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