US - New Jersey local government employers will have the option to defer a portion of their annual pension contribution to the Public Employees' Retirement System (PERS) and the Police and Firemen's Retirement System (PFRS) for one-year.
Full pension contributions would again be required beginning in 2010. The bill would allow a local employer to contribute the full 100% pension contribution if so desired.
This contribution would be deposited into the pension funds in the same manner as a normal pension contribution.
NJ senator Richard Codey, who tabled the bill, said: "Since this bill was first introduced in December, revenue estimates have become even more grim.
"This bill will help provide immediate assistance to towns and counties faced with the sudden devastating loss of revenue."
In addition, the bill would provide an added level of scrutiny to assure an employer is deferring a portion of its pension contributions out of dire necessity.
The bill was first proposed by governor Jon Corzine at November's League of Municipalities Convention. The bill now awaits approval by the General Assembly of New Jersey.
This week's edition of Professional Pensions is out now
Collective defined contribution (CDC) schemes will need clear and transparent governance frameworks, as well as effective communication strategies, to be a success, the Work and Pensions Committee (WPC) has been told.
The aviation sector's constant evaluation of mistakes to improve safety should be applied to defined benefit schemes, as too many are making the same mistakes again and again, latest research shows.
A month of strikes are due to hit 64 universities from tomorrow over major reforms to the Universities Superannuation Scheme (USS).