New Jersey local governments failed to remove hundreds of contractors such as lawyers and engineers from pension rolls, which may cost taxpayers millions of dollars a year in improper payouts, a state audit shows.
Auditors identified 202 contractors who work for 134 communities and 25 school districts and participate in the Public Employees’ Retirement System even after a 2007 ban on their participation. Hundreds more probably are still enrolled by more than 1,100 other local government units, according to a report today from Comptroller Matthew Boxer.
The comptroller’s audit found that many of the contractors boost pensions by working for multiple government units, a method called “tacking.” The audit cited an attorney who works for both the borough of Fairview and the Guttenberg school board, earning $241,654 a year combined and amassing credit for 22 years of service and an annual pension of $97,196 if he quit tomorrow. The amount could be cut by $29,420 if the lawyer’s eligibility had ended in 2008, it said.
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