ASSEMBLY, No. 141

 

STATE OF NEW JERSEY

 

Introduced Pending Technical Review by Legislative Counsel

 

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

 

 

By Assemblyman JONES

 

 

An Act concerning the terms of coverage for health benefits of certain retired municipal employees and their dependents.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. Notwithstanding the provisions of N.J.S.40A:10-23 or any other law to the contrary, in the case of any municipality in which there shall have been in effect for at least six consecutive months during the 12-month period ending June 1, 1995 a health insurance plan covering employees of the municipality, under which plan the employer has assumed all or part of the cost of coverage and responsibility for payment in full or in part of the premiums for employees who retire from the service of that municipality without having met the requirements for such coverage under N.J.S.40A:10-23, and their dependents, the municipality may, by ordinance of the governing body adopted not later than the 90th day following the effective date of this act, assume the liability for the cost of continuing to provide that coverage to, and thereupon shall pay the premiums for, former employees of the municipality who retired from such employment on or before June 1, 1995 and prior to the attainment of age 62, and including the premiums for coverage of the dependents of those former employees, except that each of those former employees shall be liable for the periodic payment of such charges as shall have been applicable to that former employee under any schedule of retiree contributions for such coverage in effect with respect to that former employee on June 1, 1995 or the last day prior to that date on which the coverage plan shall have been in effect. In the event that, on or after June 1, 1995, or on or after such last day prior to that date, as applicable, and prior to the effective date of such an ordinance, a former employee entitled to paid or part-paid coverage under this section shall have paid any charge with respect to such coverage which is in excess of the amount applicable under that schedule, the municipality shall, within 30 days of the effective date of the ordinance, reimburse the amount of that excess charge to the former employee.

    The provisions of this section shall not apply to a former employee who retired on a disability pension or after 25 years' or more service with the employer, or who retired and reached the age of 62 or older with at least 15 years of service with the employer.

 

    2. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill provides that any municipality in which there shall have been in effect for at least six consecutive months during the 12-month period ending June 1, 1995 a health insurance plan covering employees of that municipality and their dependents under which the employer was responsible for paying all or part of the cost of maintaining that coverage after the employees' retirement may by ordinance assume liability for the cost of continuing to provide that coverage to, and thereupon shall pay all of the premiums for, former employees of the municipality who retired from such employment on or before June 1, 1995 and prior to having attained age 62, and their dependents. The former employees would, however, be liable for the payment each month of any charges applicable under the schedule of retiree contributions for such coverage in effect on June 1, 1995 or the last day prior to that date on which the coverage plan shall have been in effect. A municipality would have to adopt the legislation not later than the 90th day following the date on which the bill takes effect as law.

 

 

 

Permits certain municipalities to assume liability for cost of continuing to provide paid or part-paid health benefits coverage to certain retired municipal employees and their dependents.