Signed by Governor Jon Corzine

Vote Smart's Synopsis:

Vote to pass a bill that authorizes local governments to defer 50 percent of their contributions to the Public Employees' Retirement System (PERS) and Police and Firemen's Retirement System (PFRS) due for the 2008-2009 fiscal year if approved by the Local Finance Board of the Department of Community Affairs.

Highlights:

- Requires local governments to adopt a resolution explaining why they are unable to pay the full contribution without compromising public safety, health, and welfare or the fiscal stability of the local government, or a description of another condition that offsets the long term fiscal impact of the payment of the reduced contribution (Secs. 1-2). - Requires local governments to document in the resolution the actions it has undertaken to reduce its operating costs or provide a description of relevant anticipated circumstances that may have an impact on revenues or expenditures (Secs. 1-2). - Requires the Local Finance Board to approve the resolution upon finding that such fiscal conditions are valid and that the information contained in the resolution is accurate (Secs. 1-2). - Requires local governments that elect to defer 50 percent of their payment to PERS and PFRS to pay back the unfunded liability over a period of 15 years beginning with the 2011-2012 fiscal year, and specifies that if the full amount is not paid within 30 days of the deadline, a 10 percent interest shall be assessed against the unpaid balance (Secs. 1-2).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that authorizes local governments to defer 50 percent of their contributions to the Public Employees' Retirement System (PERS) and Police and Firemen's Retirement System (PFRS) due for the 2008-2009 fiscal year if approved by the Local Finance Board of the Department of Community Affairs.

Highlights:

- Requires local governments to adopt a resolution explaining why they are unable to pay the full contribution without compromising public safety, health, and welfare or the fiscal stability of the local government, or a description of another condition that offsets the long term fiscal impact of the payment of the reduced contribution (Secs. 1-2). - Requires local governments to document in the resolution the actions it has undertaken to reduce its operating costs or provide a description of relevant anticipated circumstances that may have an impact on revenues or expenditures (Secs. 1-2). - Requires the Local Finance Board to approve the resolution upon finding that such fiscal conditions are valid and that the information contained in the resolution is accurate (Secs. 1-2). - Requires local governments that elect to defer 50 percent of their payment to PERS and PFRS to pay back the unfunded liability over a period of 15 years beginning with the 2011-2012 fiscal year, and specifies that if the full amount is not paid within 30 days of the deadline, a 10 percent interest shall be assessed against the unpaid balance (Secs. 1-2).

Full Bill Text