Benefits January 26, 2007

NJ Proposal Would Switch To DC Plans for Elected Officials

January 26, 2007 (PLANSPONSOR.com) - The New Jersey Senate passed a measure Thursday that will require newly elected officials to participate in a defined contribution plan and will stop pension payments altogether for new solicitors, engineers and other part-time appointed workers, according to the Easton (PA) Express-Times.
Reported by

The new proposal would not apply for current elected officials, who now receive a taxpayer-funded pension, but those elected after July 1, 2007. The guideline will apply for current part-time appointed workers when their contract expires and would mean that the money they already paid into the pension system would be frozen.

The measure does not include part-time workers who hold a professional license or certificate, such as municipal clerks, tax assessors, tax collectors, construction code officials, municipal planners, chief financial officers, purchasing agents or certified public works managers.

According to the newspaper, the new proposal also limits the amount of vacation and sick time public workers can cash out upon retirement at $15,000.

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