New Jersey local

New Jersey local governments failed to remove hundreds of contractors such as lawyers and engineers from pension rolls, which may cost taxpayers millions of dollars a year in improper payouts, a state audit shows.

Auditors identified 202 contractors who work for 134 communities and 25 school districts and participate in the Public Employees’ Retirement System even after a 2007 ban on their participation. Hundreds more probably are still enrolled by more than 1,100 other local government units, according to a report today from Comptroller Matthew Boxer.

“These 202 enrollees have accrued pension credits that could result in the state paying them a total of approximately $1.9 million per year” in retirement, according to the report. “Removing these professionals as of the 2008 cut-off date would significantly reduce the future annual pension payouts.”

Boxer said he referred the 202 enrollees to the state Division of Pensions and Benefits for removal of improper credits. His report didn’t identify the individuals.