By ZEINAB NAJM
TRENTON — The City Council unanimously approved the transfer of $81,000 to the city’s separation fund to ensure employee retirement costs are covered.
During a March 15 meeting, the amendment was made to the city budget for the fiscal year ending June 30. The $81,000 will be transferred from the 101 General Fund and to the 730 Separation Fund.
City Controller Karen Sall said the separation fund is money set aside for required payments to be paid to employees at retirement or separation.
This move comes after a multitude of retirements this year.
“The fund will be depleted if we do not make a transfer,” Sall said. “It will cover current retirements with a cushion for coming retirements — let’s put it that way.”
She also said the balance in the fund will be evaluated during the fiscal 2022 budget process.
“The money is coming from a one-time payment for Medicare reimbursements,” she said. “The company we have hired did a 2018 look back and so the money is in excess of our budget at this time.”
(Zeinab Najm can be reached at [email protected].)