New Jersey § 43:8c-2

§ 43:8c-2.

A local unit entering into an interlocal services contract or a joint services contract

or becoming a part of a consolidated municipality may offer and implement an incentive

program for retirement or termination of employment after approval of such incentive

program by the director. The program shall be limited to full-time employees in any department, office,

section, or other organizational component of the local unit in which the number of

employees will be reduced or which will be eliminated as a result of the interlocal

services contract or joint services contract or municipal consolidation. The incentive program may include one or more of the following: a. cash payments or the purchase of annuities; b. employer contributions to an approved employee deferred compensation program to

the extent permitted by federal law; c. payment by the local unit for continuation of health benefits coverage after retirement

for not more than five years or until the employee attains the age of eligibility

for Medicare, whichever occurs first; d. payment by the local unit for health benefits coverage after retirement under the

“New Jersey State Health Benefits Program Act,” P.L.1961, c. 49 ( C.52:14-17.25 et seq. ), or under group insurance contracts pursuant to N.J.S.40A:10-23 , for employees and dependents in accordance with the law and rules governing the

State Health Benefits Program or the law governing such group insurance contracts,

as the case may be, for employees who fail to meet the service requirement for payment

for such coverage after retirement by no more than five years, but who are otherwise

eligible for employer payment for health benefits coverage after retirement; or e. additional service credit for employees who are members of the Public Employees'

Retirement System of New Jersey, pursuant to P.L.1954, c. 84 ( C.43:15A-1 et seq. ) or the Police and Firemen's Retirement System of New Jersey, pursuant to P.L.1944,

c. 255 ( C.43:16A-1 et seq. ), or a county pension fund created under P.L.1943, c. 160 ( C.43:10-18.1 et seq. ), or a municipal retirement system created under P.L.1954, c. 218 ( C.43:13-22.3 et seq. ) or P.L.1964, c. 275 ( C.43:13-22.50 et seq. ), as provided in section 4 of P.L.1999, c. 59 ( C.43:8C-4 ).