ASSEMBLY, No. 3446







Sponsored by:

Assemblyman  JOHN F. MCKEON

District 27 (Essex)






     Permits establishment of municipal employee early retirement incentive programs.



     As introduced.


An Act concerning local government early retirement incentive programs and amending P.L.2000, c.126.


     Be It Enacted by the Senate and General Assembly of the State of New Jersey:


     1.  Section 44 of P.L.2000, c.126 (C.43:8C-2.1) is amended to read as follows:

     44.  Notwithstanding the provisions of section 2 of P.L.1999, c.59 (C.43:8C-2) to the contrary, but subject to the other provisions of that law, a county or municipal governing body may, by resolution or ordinance, as appropriate, adopt an incentive program to encourage the retirement or termination of employment of county or municipal government employees, regardless of whether the county or municipality is entering into an interlocal services contract or a joint services contract.  The incentive program shall be submitted to the Director of the Division of Local Government Services in the Department of Community Affairs for approval.  The director may condition approval on modifications to the incentive program.  Following approval of the incentive program by the director, the county or municipal government may implement the program and offer the incentives to its employees.

(cf: P.L.2000, c.126, s.44)


     2.  This act shall take effect immediately.





     This bill would enable municipalities to establish early retirement incentive programs.  Currently, pursuant to either an interlocal services contract, joint services contract, or becoming a part of a consolidated municipality, local units may establish an early retirement incentive program.  Counties also may establish such programs without regard to interlocal or joint services contracts.  This bill is intended to grant municipalities the same flexibility as counties to reduce personnel costs through the offer of early retirement incentive programs.  No municipal employee early retirement incentive program can be implemented without the approval of the Director of the Division of Local Government Services in the Department of Community Affairs.