SENATE STATE MANAGEMENT, INVESTMENT AND FINANCIAL INSTITUTIONS COMMITTEE

STATEMENT TO

SENATE, No. 481

STATE OF NEW JERSEY

DATED: MAY 9, 1996

      The Senate State Management, Investment and Financial Institutions Committee reports favorably Senate, No. 481.

      This bill provides State-paid health benefits to a retired State employee and any dependents, but not including survivors, if the employee: (1) retired prior to the effective date of this act under the State Police Retirement System with more than 20 but less than 25 years of service credit in the retirement system; (2) was subsequently employed by the State in another position or positions not covered by the State Police Retirement System; (3) has, in the aggregate, at least 30 years of full-time employment with the State; and (4) is covered by the State Health Benefits Program at the time of terminating full-time employment with the State.

      At its March 15, 1996 meeting, the Pension and Health Benefits Review Commission did not act on this legislation because it concluded that the bill "raised important general issues regarding aggregation of service credit among different pension systems and restrictions on post-retirement employment that should be comprehensively studied and addressed."