Benefits & Executive Compensation News

New Jersey Cities Still Hand Out $599,877 Retiree ‘Boat’ Checks

Feb. 19, 2020, 5:48 PM

New Jersey municipalities have borrowed millions of dollars to cover retirement bonuses promised to public employees, years after a push by former Governor Chris Christie to curb the practice, according to a State Commission of Investigation report issued Wednesday.

Jersey City last year paid $8.1 million for so-called “terminal leave” payments, a type of severance that also provides compensation for unused sick days, according to the report. Paterson, the state’s third-largest city and one of its poorest, borrowed roughly $24 million over nine years for such employee payouts. To cover the bill recently, the analysis found, the city scrapped a...

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