SENATE, No. 1604

STATE OF NEW JERSEY

INTRODUCED OCTOBER 24, 1996

By Senator BENNETT

An Act concerning eligibility of certain retirants from the service of certain public employers other than the State for paid coverage under the State Health Benefits Program and amending P.L.1964, c.125.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. Section 7 of P.L.1964, c.125 (C.52:14-17.38) is amended to read as follows:

    7. The Division of Pensions and Benefits shall certify to the certifying agent of each employer electing participation under the program the premium rates and periodic charges applicable to the coverage provided for employees and dependents. The participating employer shall remit to the division all contributions to premiums and periodic charges in advance of their due dates, subject to the rules and regulations of the commission.

    From funds allocated therefor, the employer other than the State may pay the premium or periodic charges for the benefits provided to a retired employee and the employee's dependents covered under the program, if such employee retired from a State or locally-administered retirement system on a benefit based on 25 years or more of service credited in such retirement system, excepting the employee who elected deferred retirement, but including the employee who retired on a disability pension based on fewer years of service credited in such retirement system[, and]; in the case of an employee who retired from such a system on a benefit based on 25 years or more of service credited in the system, the employer other than the State may further require that the employee have served at least 15 years' continuous service with the employer immediately preceding retirement. The employer other than the State may also reimburse such retired employee for the employee's premium charges under Part B of Medicare covering the retired employee and the employee's spouse. "Retired employee and the employee's dependents" may, upon adoption of an appropriate resolution therefor by the participating employer, also include otherwise eligible employees, and their dependents, who retired from a State or locally-administered retirement system prior to the date that the employer became a participating employer in the New Jersey State Health Benefits Program. The term may also, upon adoption of an appropriate resolution therefor by the participating employer, include otherwise eligible employees, and their dependents, who did not elect to continue coverage in the program during such time after the employer became a participating employer that the employer did not pay premium or periodic charges for benefits to retired employees and their dependents pursuant to this section. Eligibility and enrollment of such employees and dependents shall be in accordance with such rules and regulations as may be adopted by the State Health Benefits Commission.

    The employer other than the State may, by resolution, pay the premium or periodic charges for the benefits provided to the surviving spouse of a retired employee and the employee's dependents covered under the program as provided in this section.

(cf: P.L.1996, c.8, s.4)

    2. This act shall take effect immediately.

STATEMENT

    This bill amends the statute authorizing local governments and other public employers other than the State that participate in the New Jersey State Health Benefits Program (SHBP) to provide paid coverage under the program to retirees with 25 years or more of service credited in a New Jersey public retirement system and the dependents of those retirees.

    Under present law, any such employer wishing to extend paid SHBP coverage to retirees from its employment who meet the 25-year total service qualification cannot additionally require that some minimum portion of that total service have been rendered to the particular employer.

    Under the bill, the employer other than the State would be allowed to require that the employee, in addition to having rendered 25 years' total pensionable service, have served at least 15 years' continuous service with the employer immediately preceding retirement.

Permits public employer other than State to require retirant with 25 years' pensionable service to have served 15 years with employer to be eligible for paid SHBP coverage.