ASSEMBLY, No. 1986
STATE OF NEW JERSEY
INTRODUCED MAY 6, 1996
By Assemblyman KELLY
An Act concerning coverage under the State Health Benefits Program of certain retired members of the Police and Firemen's Retirement System of New Jersey, supplementing P.L.1961, c.49 (C.52:14-17.25 et seq.) and P.L.1944, c.255 (C.43:16A-1 et seq.) and amending N.J.S.40A:10-23.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) A qualified retiree from the Police and Firemen's Retirement System of New Jersey and dependents of a qualified retiree, but not including survivors, are eligible to participate in the State Health Benefits Program.
A qualified retiree is a retiree who:
a. retired on a benefit based on 25 or more years of service credit; or
b. retired, based on fewer years of service, on an ordinary disability retirement allowance pursuant to section 6 of P.L.1944, c.255 (C.43:16A-6) or an accidental disability retirement allowance pursuant to section 7 of P.L.1944, c.255 (C.43:16A-7).
A retiree who elected deferred retirement is not a qualified retiree.
The program shall reimburse a qualified retiree who participates in the program for the premium charges under Part B of the Federal Medicare Program for the retiree and the retiree's spouse.
The premium or periodic charges for benefits provided to a qualified retiree and the dependents of the retiree and the cost for reimbursement of Medicare premiums shall be paid by the retirement system. The State Health Benefits Commission shall annually certify to the system the cost for providing health benefits coverage to qualified retirees and their dependents under this section. The system shall annually remit to the commission the amount certified at a time specified by the State Treasurer.
A qualified retiree who retired prior to the effective date of this amendatory and supplementary act, P.L. , c. , is eligible for coverage if the retiree applies to the program within one year after the effective date.
The provisions of this section shall not apply to any member of the Police and Firemen's Retirement System who is a retired State employee and whose premiums or periodic charges for benefits under the program are paid by the State pursuant to section 8 of P.L.1961, c.49 (C.52:14-17.32).
2. (New section) Notwithstanding the provisions of any other law to the contrary, the State Treasurer shall establish the assumed rate of return on the assets of the Police and Firemen's Retirement System of New Jersey at a rate which will enable the retirement system to cover any increased costs resulting from providing paid coverage under the State Health Benefits Program to retired members of the retirement system pursuant to section 1 of this amendatory and supplementary act, P.L. , c. (C. ).
3. N.J.S.40A:10-23 is amended to read as follows:
40A:10-23. Retired employees shall be required to pay for the entire cost of coverage for themselves and their dependents at rates which are deemed to be adequate to cover the benefits, as affected by Medicare, of the retired employees and their dependents on the basis of the utilization of services which may be reasonably expected of the older age classification; provided, however, that the total rate payable by a retired employee for himself and his dependents, for coverage under the contract and for Part B of Medicare, shall not exceed by more than 25% the total amount that would have been required to have been paid by the employee and his employer for the coverage maintained had he continued in office or active employment and he and his dependents were not eligible for Medicare benefits.
The employer may, in its discretion, assume the entire cost of such coverage and pay all of the premiums for employees a. who have retired on a disability pension, or b. who have retired after 25 years or more of service credit in a State or locally administered retirement system and a period of service of up to 25 years with the employer at the time of retirement, such period of service to be determined by the employer and set forth in an ordinance or resolution as appropriate, or c. who have retired and reached the age of 65 years or older with 25 years or more of service credit in a State or locally administered retirement system and a period of service of up to 25 years with the employer at the time of retirement, such period of service to be determined by the employer and set forth in an ordinance or resolution as appropriate, or d. who have retired and reached the age of 62 years or older with at least 15 years of service with the employer, including the premiums on their dependents, if any, under uniform conditions as the governing body of the local unit shall prescribe, except that retired employees who are eligible for and upon retirement elect to take paid coverage under the State Health Benefits Program pursuant to section 1 of P.L. , c. (C. ) (now pending before the Legislature as this bill) shall not be eligible for employer-paid coverage under this section. The period of time a county law enforcement officer has been employed by any county or municipal police department, sheriff's department or county prosecutor's office, may be counted cumulatively as "service with the employer" for the purpose of qualifying for payment of health insurance premiums by the county pursuant to this section.
(cf: P.L.1995, c.136, s.1)
4. This act shall take effect on the first day of the fourth month after enactment.
STATEMENT
This bill extends to members of the Police and Firemen's Retirement System of New Jersey (PFRS) who retire with 25 or more years of service credit or on a disability retirement allowance coverage in the State Health Benefits Program (SHBP) at the expense of the retirement system. Qualified retirees would also be reimbursed by the retirement system for their premium charges under Part B of the Medicare program.
At present, PFRS members employed by units of local government receive employer-paid health insurance coverage upon retirement through the SHBP or another plan only if their employer chooses to provide paid coverage. The bill allows all qualified PFRS retirees to participate in the SHBP at the expense of the retirement system. Qualified retirees of non-SHBP participating employers could elect to accept SHBP coverage at the expense of the retirement system or to continue in their employer's program. State employees who are qualified retirees from PFRS currently receive paid coverage upon retirement at the expense of the State and would continue to do so.
The bill also directs the State Treasurer to establish the assumed rate of return on the assets of the PFRS at a rate which will enable the retirement system to cover any increased costs resulting from providing paid SHBP coverage.
Provides paid SHBP coverage to certain PFRS retirees.