NJ Gov Proposes Delayed Pension Payments for Towns
Friday, November 21, 2008
New York, NY —
Gov. Corzine says he will seek a delay of some municipal pension contributions as a way to help local communities cope with the faltering economy.
Corzine says without help, the communities may have to cut services or boost property taxes, which are already the highest in the nation.
The proposal would affect about half of the $1 billion in pension contribution New Jersey towns and counties are scheduled to make in April. It allows for $540 million to be deferred.
Corzine told the 900 local leaders at a meeting of the state's League of Municipalities yesterday that he'll ask the legislature to approve a three-year deferment.
When full pension fund payments resume they would be larger to compensate for the years of lower funding.