Retiring Paterson Firefighters, Police Officers Receiving $1.2 million Leave Time Payouts Under Tax Deferred Plan
PATERSON, NJ (December 28, 2019)--Paterson Mayor Andre Sayegh (photo) and council members have agreed to set up what’s called a 401(a) plan, tax-differed retirement saving accounts, for retiring public safety employees. According to The Paterson Times members of the City Council approved a measure this past Monday allowing Sayegh’s administration to set up the plan at the request of the police and fire unions.
Under the proposal, the city will deposit the accumulated leave time payouts for police and fire employees into the tax-differed retirement savings accounts. Before the new year, the city is paying $1.2 million to 19 firefighters and police officers. The sum is a partial severance payout for the employees.
Municipal official disclosed the city has to pay approximately $5 million in accumulated leave time payouts to firefighters and police officers. The lot includes approximately 30 employees, said officials.