SENATE STATE GOVERNMENT COMMITTEE

STATEMENT TO

SENATE, No. 81

with committee amendments

STATE OF NEW JERSEY

DATED: JANUARY 22, 1996

      The Senate State Government Committee reports favorably and with committee amendments Senate, No. 81.

      This bill provides that each State employee shall be able to voluntarily purchase insurance policies, mutual funds, annuities or other investments on a group participation or individual basis. The costs shall be borne by the employee selecting the insurance coverage or investment program. Whenever any State employee requests in writing that a deduction be made from the employee's salary in order to pay for the costs, the employer shall make the deduction from the employee's salary and transmit the sum so deducted to the designated organization or company. The designated organization or company shall provide information concerning the insurance coverage or investment program to interested employees.

      As amended by the committee, the bill also provides that a law enforcement officer paid by a municipality in the State may voluntarily purchase a supplemental life insurance policy, on a group participation or individual basis, by means of a deduction from that officer's compensation. The disbursing officer of the municipality employing the law enforcement officer shall make the deduction and subsequently transmit it to the company providing the insurance.

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

COMMITTEE AMENDMENTS

      The committee amended the bill to provide that a law enforcement officer paid by a municipality in the State may voluntarily purchase a supplemental life insurance policy, on a group participation or individual basis, by means of a deduction from that officer's compensation. The disbursing officer of the municipality employing the law enforcement officer shall make the deduction and subsequently transmit it to the company providing the insurance.