SENATE COMMUNITY AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 174

STATE OF NEW JERSEY

DATED: JANUARY 18, 1996

      The Senate Community Affairs Committee reports favorably Senate, No. 174.

      This bill provides that a city which meets certain criteria may by ordinance, adopted within three months of the effective date of the bill, assume liability for the entire cost of continuing to provide health insurance coverage to former employees of the city who received health benefits upon their retirement, and their dependents, if the retirees had been receiving such health benefits prior to May 1, 1995. The bill would apply only to a city that: 1) has a population of not more than 8,500 according to the latest federal decennial census; 2) is located in a county of the second class having a population of at least 525,000 according to that census; and 3) has established a health insurance plan covering employees in and retirants from the service of that city, and their dependents. The retirees would, however, be liable for the payment each month of any charges applicable under the schedule of retiree contributions for health insurance coverage in effect on May 1, 1995.

      The bill does not affect any former employees who retired on a disability pension, or retired after 25 years or more of service with the employer, or retired and reached the age of 62 or older with at least 15 years of service with the employer.

      This bill was prefiled for introduction in the 1996 session pending technical review. As reported, the bill includes the changes required by technical review which has been performed.