SENATE STATE MANAGEMENT, INVESTMENT AND FINANCIAL INSTITUTIONS COMMITTEE

 

STATEMENT TO

 

SENATE, No. 503

 

STATE OF NEW JERSEY

 

DATED: MARCH 14, 1996

 

      The Senate State Management, Investment and Financial Institutions Committee reports favorably Senate, No. 503.

      On September 21, 1995, the State Health Benefits Commission adopted an amendment to the commission's regulation governing "full-time employment" for purposes of determining a local government employee's eligibility for State Health Benefits Program (SHBP) coverage. The amended version of the regulation became effective upon its official publication on December 18, 1995. Prior to the amendment, "full-time" status was accorded any local government employee who worked an average of at least 20 hours per week. Under the regulation as amended, local employers were permitted to establish the number of hours per week required for full-time status.

      This bill provides that a local government employee who was covered under SHBP on December 17, 1995 shall continue to be eligible for such coverage if: (1) the employer continued to participate in SHBP; (2) the employee continued to be employed by that employer for an average work week of 20 hours during the period between December 18, 1995 and the date on which this legislation takes effect as law; and (3) the employer continues to be a participating employer and the employee continues to work for the employer for an average of at least 20 hours per week after the effective date of this act.

       Thus, this legislation would retroactively "grandfather" application of the prior regulation for employees covered under that regulation who have been and remain continuously employed with the same employer for an average work week of at least 20 hours.