SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 119

with Senate committee amendments

STATE OF NEW JERSEY

DATED: JANUARY 14, 1997

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 119 (1R) of 1996 with amendments.

      Existing law provides that a beneficiary under the Teachers' Pension and Annuity Fund (TPAF) and the Public Employees' Retirement System (PERS) may request the Division of Pensions and Benefits to make deductions from the beneficiary's retirement allowance or pension for the payment of premiums for a group health insurance plan or the State Health Benefits Program. This bill would require the division to deduct premium payments for a group dental insurance plan for which 1,000 or more beneficiaries have requested deductions.

      In addition, the committee recommends that, upon the enactment of this bill, the State Treasurer and the Division of Pensions and Benefits negotiate with each provider of a group dental insurance plan for which deductions are made pursuant to this bill for the payment of a reasonable administrative fee to be paid to the State to cover the administrative costs of making the deductions.

COMMITTEE AMENDMENTS

      The committee amended the bill so that its provision would require deductions for any group dental insurance plan for which 1,000 or more beneficiaries of TPAF or PERS have requested deductions.

FISCAL IMPACT

      According to the Division of Pensions and Benefits, the division will incur some additional costs to administer this new deduction. At this time, the amount of that additional cost is unknown.