ASSEMBLY STATE GOVERNMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1670

with committee amendments

STATE OF NEW JERSEY

DATED: MAY 1, 1997

      The Assembly State Government Committee reports favorably and with committee amendments Assembly, No. 1670.

      This bill provides for optional deductions of dental insurance premiums from the retirement allowance of a beneficiary of the Teachers' Pension and Annuity Fund (TPAF) or the Public Employees' Retirement System (PERS).

      Current law provides that, if possible, whenever a beneficiary of TPAF or PERS requests in writing that the Division of Pensions and Benefits make deductions from the beneficiary's retirement allowance or pension for the payment of premiums for the beneficiary's group health insurance plan or the State Health Benefits Program, the division may make the deductions and transmit the sums deducted to the insurance plan carrier. The bill would extend this deduction authorization option to the beneficiary's dental insurance plan premiums, subject to the condition that at least 1,000 beneficiaries covered by the plan would have to request the deduction before the Division would be required to make the deduction.

COMMITTEE AMENDENTS

      The committee adopted amendments to this bill to:

      (1) Delete a provision for deduction of a beneficiary's professional organization dues and remittance of those deductions to the organization;

      (2) Extend the dental premium deduction option, which was limited to beneficiaries of the TPAF under the bill as originally introduced, to retirants from the Public Employees' Retirement System (PERS) as well; and

      (3) Incorporate the requirement that, for any particular dental plan, the deduction of premiums from retirement allowances would be made only upon the request of 1,000 or more pension fund beneficiaries covered by the plan.