Bill Text: NJ S1604 | 2010-2011 | Regular Session | Introduced
Bill Title: Allows public employers to offer retirees with other health care coverage incentive to waive SHBP coverage.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-03-04 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S1604 Detail]
Download: New_Jersey-2010-S1604-Introduced.html
Sponsored by:
Senator JEFF VAN DREW
District 1 (Cape May, Atlantic and Cumberland)
SYNOPSIS
Allows public employers to offer retirees with other health care coverage incentive to waive SHBP coverage.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the waiver of coverage under the State Health Benefits Program and amending P.L.1995, c.259.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 36 of P.L.1995, c.259 (C.52:14-17.31a) is amended to read as follows:
36. a. Notwithstanding the provisions of any other law to the contrary, an employer other than the State which participates in the State Health Benefits Program, established pursuant to P.L.1961, c.49 (C.52:14-17.25 et seq.), may allow any employee who is eligible for other health care coverage to waive coverage under the State Health Benefits Program to which the employee is entitled by virtue of employment with the employer. The waiver shall be in such form as the Director of the Division of Pensions and Benefits shall prescribe and shall be filed with the division. After such waiver has been filed and for so long as that waiver remains in effect, no premium shall be required to be paid by the employer for the employee or the employee's dependents. Not later than the 180th day after the date on which the waiver is filed, the division shall refund to the employer the amount of any premium previously paid by the employer with respect to any period of coverage which followed the filing date.
b. Notwithstanding the provisions of any other law to the contrary, the State as an employer, or an employer that is an independent authority, commission, board, or instrumentality of the State which participates in the State Health Benefits Program, may allow any employee who is eligible for other health care coverage that is not under the State Health Benefits Program to waive the coverage under the State Health Benefits Program to which the employee is entitled by virtue of employment with the employer. The waiver shall be in such form as the Director of the Division of Pensions and Benefits shall prescribe and shall be filed with the division.
c. Notwithstanding the provisions of any other law to the contrary, the State as an employer, an employer other than the State which participates in the State Health Benefits Program, or an employer that is an independent authority, commission, board, or instrumentality of the State which participates in the State Health Benefits Program, may allow any retired employee who is eligible for other health care coverage that is not under the State Health Benefits Program to waive the coverage under the State Health Benefits Program to which the retired employee is entitled pursuant to subsection c. of section 8 of P.L.1961, c.49 (C.52:14-17.32) or subsection b. of section 7 of P.L.1964, c.125 (C.52:14-17.38). The waiver shall be in such form as the Director of the Division of Pensions and Benefits shall prescribe and shall be filed with the division.
d. In consideration of filing a waiver as permitted in subsections a. [and] , b. and c. of this section, an employer may pay to the employee annually an amount, to be established in the sole discretion of the employer, which shall not exceed 50% of the amount saved by the employer because of the employee's waiver of coverage. An employee who waives coverage shall be permitted to immediately resume coverage if the employee ceases to be eligible for other health care coverage for any reason, including, but not limited to, the retirement or death of the spouse or divorce. An employee who resumes coverage shall repay, on a pro rata basis, any amount received from the employer which represents an advance payment for a period of time during which coverage is resumed. An employee who wishes to resume coverage shall notify the employer in writing and file a declaration with the division, in such form as the director of the division shall prescribe, that the waiver is revoked. The decision of an employer to allow its employees to waive coverage and the amount of consideration to be paid therefor shall not be subject to the collective bargaining process.
(cf: P.L.2008, c.89, s.2)
2. This act shall take effect immediately.
STATEMENT
This bill provides that the State as an employer, a local government employer which participates in the State Health Benefits Program (SHBP), or an employer that is an independent authority, commission, board, or instrumentality of the State participating in SHBP, may allow any retired employee who is eligible for other health care coverage that is not under SHBP to waive the SHBP coverage for which the retired employee is eligible pursuant to N.J.S.A. 52:14-17.32 c. or 52:14-17.38 b.
In consideration of filing a waiver, the employer may pay to the retired employee annually an amount, to be established in the sole discretion of that employer, not in excess of 50% of the amount saved by the employer because of the retired employee's waiver of coverage. A retired employee who waives coverage will be permitted to immediately resume coverage if the retired employee ceases to be eligible for other health care coverage for any reason. A resumption of coverage will require repayment, on a pro rata basis, of any amount received which represents an advance payment for a period of time during which coverage is resumed.
