NJ Deferred Compensation Deadlines When a Payroll Supervisor Leaves

October 20, 2026

Deferred Compensation Deadlines When a NJ Payroll Supervisor Leaves

The Division of Local Government Services issued Local Finance Notice 2026-12 on August 20, 2026, a 13-page review of how local governments establish, amend, and report on employee deferred compensation plans. In many New Jersey towns, the person the Division has on file for that plan is the payroll supervisor or the CFO. When that person leaves and nobody updates the Division, its emails keep going to someone who no longer works for the town.

For 2026, local governments and plan contractors had until September 30 to submit their annual certifications. Starting in 2027, certifications are due to the Division no later than January 31. The Division will email the forms to the person it has on file as your contact at least 30 days before that deadline. If your payroll supervisor left this year, email the Division your new contact's information by December 1.

Payroll supervisor is one of the positions PM Consultants fills for New Jersey municipalities on an interim basis, along with the finance, clerk, and collector roles listed on our services page. A town that misses a certification can receive a noncompliance notice from the Division.

What LFN 2026-12 Asks of Local Governments

A deferred compensation plan is a voluntary retirement savings plan that lets local employees defer part of their pay into approved investments, under N.J.S.A. 43:15B and Section 457(b) of the Internal Revenue Code. A town can use a "prototypical" plan run by an outside contractor under a service agreement, or it can administer the plan itself. Either way, the Director of the Division must approve the plan, the service agreement, and any amendment before it takes effect.

The notice lists duties that stay with the town when its payroll supervisor leaves:

  • A local plan administrator: the person the governing body appoints by resolution to handle employee deductions and transfer deferred funds to the contractor.
  • Written notice to participants before any amendment: the governing body then adopts the approved amendment by resolution and sends a certified copy to the Director.
  • Certified resolutions for every change: adopting, amending, or terminating a plan or service agreement each requires one on file with the Director.
  • Current contact information: the town must send any update to the Division by December 1 of each year.

What Happens to Deductions When the Payroll Supervisor Leaves

When the payroll supervisor who served as local plan administrator leaves, the town keeps deducting deferrals from employees' paychecks, and someone still has to send that money to the contractor. The rules require the contractor or plan manager to invest deferred funds within 72 hours, excluding Sundays and holidays, of receiving them or learning they're available. The 72 hours don't start until the contractor has the money, so a late transfer from the town means employees' deferrals are invested late.

The notice also covers a newer option. P.L. 2025, c.358, effective January 20, 2026, lets local governments add automatic enrollment to their plans. Adding it is an amendment, so it needs Director approval and notice to participants. The town must also negotiate the terms with any union representing eligible employees.

Employees join a plan by signing a joinder agreement, and only one joinder agreement may be executed per calendar year. They can change their deferrals at times the employer sets. Employees often submit these changes at the start of a new year, while the payroll office is still closing out the old one. Call PM Consultants at (732) 674-3112 to set up a free consultation about an interim placement.

Interim Payroll Supervisor Coverage Through Year-End

The Division's two annual deferred compensation deadlines are December 1 for contact updates and January 31 for certifications, the same months the payroll office closes out the calendar year. PM Consultants places interim payroll supervisors with New Jersey municipalities to handle those filings while the town recruits.

A payroll supervisor also handles pension reporting and certified payroll, which have their own deadlines when a payroll supervisor leaves. An interim supervisor picks up all three at once.

What to Confirm Before December 1

Find the resolution that appointed your local plan administrator. If it names someone who has left, put a resolution appointing a replacement on the governing body's next agenda. Then confirm who the Division has on file as your contact, and email the Division an update by December 1 if that person has left.

Check whether your town submitted its 2026 certification by September 30. The Division has a formal process for noncompliance. It notifies the employer by certified mail at least 14 days before a required appearance, issues a written determination within 10 days after it, and allows a 60-day grace period to correct the problem.

Keep the Plan Covered While You Hire

The December 1 and January 31 deadlines apply whether or not the payroll supervisor position is filled, and they're easy to miss during year-end work. An interim supervisor can process deductions, send transfers to the contractor, and file the Division's forms until your permanent hire starts. Call PM Consultants at (732) 674-3112 or contact our office to schedule a free consultation on interim coverage.