SENATE, No. 2031

STATE OF NEW JERSEY

INTRODUCED MAY 8, 1997

By Senator MATHEUSSEN

An Act concerning coverage under the State Health Benefits Program and supplementing P.L.1961, c.49 (C.52:14-17.25 et seq.).

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

    1. Notwithstanding any law, rule or regulation to the contrary, any retiree receiving a retirement allowance from a State-administered retirement system who, at the time of retirement, opted not to continue coverage under the State Health Benefits Program may opt to enroll in the program. The cost of the premiums or periodic charges for the health benefits provided to such a retiree and the retiree's covered dependents shall be paid by the retiree. The retiree shall not be allowed to discontinue coverage during the lifetime of the retiree or the retiree's covered dependents.

    A retiree who retired prior to the effective date of this act is eligible for the coverage under the State Health Benefits Program if the retiree applies to the program for such coverage within one year after the effective date of this act.

    2. This act shall take effect immediately.

STATEMENT

    This bill allows retirees who had opted not to continue coverage under the State Health Benefits Program (SHBP) upon retirement to enroll in the program. It provides that any retiree receiving a retirement allowance from a State-administered retirement system who, at the time of retirement, opted not to continue SHBP coverage may opt to enroll in the program. The cost of the premiums or periodic charges for the health benefits provided to such a retiree and the retiree's covered dependents shall be paid by the retiree. The retiree shall not be allowed to discontinue coverage during the lifetime of the retiree or the retiree's covered dependents.

    A retiree who retired prior to the effective date of this act is eligible for SHBP coverage if the retiree applies to the program for such coverage within one year after the effective date of this act.