ASSEMBLY, No. 1514

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 8, 1996

By Assemblyman WISNIEWSKI and Assemblywoman FRISCIA

An Act concerning terms of coverage for health benefits of certain retired city employees and their dependents and supplementing chapter 10 of Title 40A of the New Jersey Statutes.

    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, a city having a population of not more than 8,500 according to the latest federal decennial census and located in a county of the second class having a population of at least 525,000 according to that census, that shall have established a health insurance plan covering employees in and retirants from the service of that city, and their dependents, may by ordinance of the governing body within three months of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) assume the liability for the entire cost of continuing to provide that coverage to, and thereupon shall pay all of the premiums for, former employees of the city who retired from employment with the city and who received fully or partially paid health benefits from the city prior to May 1, 1995, 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 payment each month of such charges as shall be applicable to that former employee under the schedule of retiree contributions for such coverage in effect on May 1, 1995. In the event that, on or after May 1, 1995 and prior to the effective date of such an ordinance, a former employee entitled to 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 city shall, within 30 days of the effective date of the ordinance, reimburse the amount of that excess charge to the former employee.

    2. This act shall take effect immediately.

STATEMENT

    This bill provides that a city having a population of not more than 8,500 according to the latest federal decennial census and located in a county of the second class having a population of at least 525,000 according to that census which shall have established a health insurance plan covering employees in and retirants from the service of that city, and their dependents, may by ordinance of the governing body within three months of the effective date of the bill assume liability for the entire cost of continuing to provide that coverage to, and thereupon shall pay all premiums for, former employees of the city who received health benefits upon their retirement and their dependents, if the retiree was receiving such health benefits prior to May 1, 1995. The retirees 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 May 1, 1995.

    The bill does not affect any former employees who retired on a disability pension or after 25 years or more of 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.

Permits certain cities to assume liability for cost of continuing to provide fully or partially paid health benefits coverage to certain retirees and their dependents.