[Added 10-22-79 by Ord. No. 79-190]
[The salaries and compensation of the various officers and employees of the Township of East Brunswick are set by the Township Council by ordinance. Copies of current salary ordinances, as amended, are on file in the office of the Township Clerk and are available for inspection during regular office hours.]
N.J.S.A. 43:15B-1 provides that any municipality may establish a deferred compensation plan whereby the employer may enter into written agreement with any of its employees thereby providing a voluntary deferral of salary and such deferral shall remain in effect until the employee is terminated or until a new contract is executed by the employee and employer. The provisions of the salary deferral shall be in accordance with N.J.S.A. 40A:4-2 of the local budget law, which requires that one or more public officials, or the governing body as a whole, shall be designated and named to the fiduciary responsibility for administration of said plan and investments.
The deferred compensation plan which is established shall be in compliance with Section 457 of the Federal Internal Revenue Code and recent amendments as adopted by the Congress through Revenue Acts of 1978 which require that all eligible state deferred compensation plans comply with the classification systems to guarantee compliance with regulations of the I.R.S., the Securities and Exchange Commission, the Department of Social Security and the State enabling legislation.
The administration of the deferred compensation plan is recognized as a critical factor and the rules and regulations provided for implementation shall be promulgated by the Township Administrator and Director of Finance and listed as part of the administrative procedures manual clarifying such questions as, the interface with the local payroll system; who shall be the plan coordinator; how collections of payments shall be made; the role and responsibility of custodial functions; to insure appropriate deferrals and safeguard with stringent control for accuracy, safety and timeliness of investments. Also individual participants should receive annual statements which reflect both the value of contributions and the total amount which has been contributed. To insure compliance with the federal regulations, clear procedures providing for an employee's withdrawal of funds must be established and an annual review of these procedures should be initiated each year.
Nothing herein shall obligate the Township of East Brunswick to set up or maintain a deferred compensation plan.