ASSEMBLY, No. 1340

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblyman DeCROCE and Assemblywoman MURPHY

An Act concerning post-retirement health care benefits of certain local government employees and amending P.L.1964, c.125.

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

    1. Section 7 of P.L.1964, c.125 (C.52:14-17.38) is amended to read as follows:

    7. The Division of Pensions shall certify to the certifying agent of each employer electing participation under the program the premium rates and periodic charges applicable to the coverage provided for employees and dependents. The participating employer shall remit to the division all contributions to premiums and periodic charges in advance of their due dates, subject to the rules and regulations of the commission.

    The employer shall reimburse the active employee for his premium charges under Part B of the federal Medicare Program covering the employee and the employee's spouse.

    From funds allocated therefor, the employer other than the State may pay all or a portion of the premium or periodic charges for the benefits provided to a retired employee and his dependents covered under the program, if such employee retired from a State or locally-administered retirement system on a benefit based on 25 years or more of service credited in such retirement system, excepting the employee who elected deferred retirement, but including the employee who retired on a disability pension based on fewer years of service credited in such retirement system, and may also reimburse such retired employee for his premium charges under Part B of the federal Medicare Program covering the retired employee and the employee's spouse. The participating employer, in an appropriate resolution adopted therefor, shall state what portion of the premium or periodic charges for the benefits provided to a retired employee and dependents it will pay. "Retired employee and his dependents" may, upon adoption of an appropriate resolution therefor by the participating employer, also include otherwise eligible employees, and their dependents, who retired from a State or locally-administered retirement system prior to the date that the employer became a participating employer in the New Jersey State Health Benefits Program. The term may also, upon adoption of an appropriate resolution therefor by the participating employer, include otherwise eligible employees, and their dependents, who did not elect to continue coverage in the program during such time after the employer became a participating employer that the employer did not pay premium or periodic charges for benefits to retired employees and their dependents pursuant to this section. Eligibility and enrollment of such employees and dependents shall be in accordance with such rules and regulations as may be adopted by the State Health Benefits Commission.

    The employer other than the State may, by resolution, pay the premium or periodic charges for the benefits provided to the surviving spouse of a retired employee and his dependents covered under the program as provided in this section.

(cf: P.L.1987, c.384, s.2)

    2. This act shall take effect immediately.

STATEMENT

    This bill permits a local government employer participating in the State Health Benefits Program (SHBP) to pay all or a portion of the cost of post-retirement health care benefits for qualified retirees and their dependents. Current law and regulations require that local government employers who choose to provide post-retirement SHBP benefits assume the entire cost thereof.

Permits local government employers to pay a portion, rather than all, of cost of State Health Benefits Program for qualified retirees.