Bill Text: NJ S2400 | 2010-2011 | Regular Session | Introduced
Bill Title: Increases health care benefits coverage contribution rate for public employees; requires annual appropriation for certain women's health services; makes appropriation.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-02-18 - Reviewed by the Pension and Health Benefits Commission Recommend to not enact [S2400 Detail]
Download: New_Jersey-2010-S2400-Introduced.html
Sponsored by:
Senator JENNIFER BECK
District 12 (Mercer and Monmouth)
SYNOPSIS
Increases health care benefits coverage contribution rate for public employees; requires annual appropriation for certain women's health services; makes appropriation.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the health care benefits coverage contribution rate for public employees, amending various parts of the statutory law, supplementing Title 26 of the Revised Statutes, and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 6 of P.L.1996, c.8 (C.52:14-17.28b) is amended to read as follows:
6. a. Notwithstanding the provisions of any other law to the contrary, the obligations of the State or an independent State authority, board, commission, corporation, agency, or organization to pay the premium or periodic charges for health benefits coverage provided under P.L.1961, c.49 (C.52:14-17.25 et seq.) may be determined by means of a binding collective negotiations agreement, including any agreements in force at the time of the adoption of P.L.1996, c.8. With respect to State employees for whom there is no majority representative for collective negotiations purposes, the commission may, in its sole discretion, modify the respective payment obligations set forth in P.L.1961, c.49 for the State and such employees in a manner consistent with the terms of any collective negotiations agreement binding on the State. With respect to employees of an independent State authority, board, commission, corporation, agency, or organization for whom there is no majority representative for collective negotiations purposes, the employer may, in its sole discretion, modify the respective payment obligations set forth in P.L.1961, c.49 for such employer and such employees in a manner consistent with the terms of any collective negotiations agreement binding on such employer. The provisions of this subsection shall also apply to employees deemed or considered to be employees of the State pursuant to subsection (c) of section 2 of P.L.1961, c.49 (C.52:14-17.26).
b. (1) Notwithstanding the provisions of any other law to the contrary, for each State employee who accrues 25 years of nonconcurrent service credit in one or more State or locally-administered retirement systems before July 1, 1997, excepting the employee who elects deferred retirement, the State, upon the employee's retirement, shall pay the full cost of the premium or periodic charges for the health benefits provided to a retired State employee and dependents covered under the State Health Benefits Program, but not including survivors, and shall also reimburse the retired employee for premium charges under Part B of Medicare covering the retired employee and the employee's spouse.
(2) Notwithstanding the provisions of any other law to the contrary, and except as otherwise provided by section 8 of P.L.1961, c.49 (C.52:14-17.32) as amended by P.L.2005, c.341, and by subsection c. of this section, for each State employee who accrues 25 years of nonconcurrent service credit in one or more State or locally-administered retirement systems on or after July 1, 1997, excepting the employee who elects deferred retirement, the State, upon the employee's retirement, shall pay the premium or periodic charges for the health benefits provided to a retired State employee and dependents covered under the State Health Benefits Program, but not including survivors, and shall reimburse the retired employee for premium charges under Part B of Medicare covering the retired employee and the employee's spouse: (a) in accordance with the provisions, if any, concerning health benefits coverage in retirement which are in the collective negotiations agreement applicable to the employee at the time of the employee's accrual of 25 years of nonconcurrent service credit in one or more State or locally-administered retirement systems, or (b) if the employee has no majority representative for collective negotiations purposes, in a manner consistent with the terms, if any, concerning health benefits coverage in retirement which are in any collective negotiations agreement deemed applicable by the State Health Benefits Commission to that employee at the time of the employee's accrual of 25 years of nonconcurrent service credit in one or more State or locally-administered retirement systems. The terms for the payment of premiums or periodic charges established pursuant to this paragraph for the traditional plan shall apply to the successor plan, and the terms for the payment of premiums or periodic charges established pursuant to this paragraph for the NJ PLUS plan shall apply to the State managed care plan required to be included in a contract entered into pursuant to subsection c. of section 4 of P.L.1961, c.49 (C.52:14-17.28).
c. (1) Effective July 1, 2007, but, with respect to employees to whom this subsection applies who are paid through the State centralized payroll, effective with the first pay period beginning after July 1, 2007, the cost of benefits provided pursuant to P.L.1961, c.49 (C.52:14-17.25 et seq.) shall be shared by employees through the withholding of a contribution in an amount as determined in accordance with paragraph (2) of this subsection.
(2) The amount of the contribution required pursuant to paragraph (1) of this subsection as to State employees and employees of an independent State authority, board, commission, corporation, agency, or organization for whom there is a majority representative for collective negotiations purposes shall be determined by means of a binding collective negotiations agreement. Commencing on the effective date of P.L.2010, c.2 and upon the expiration of any applicable binding collective negotiations agreement in force on that effective date, the amount of the contribution required pursuant to paragraph (1) of this subsection by State employees and employees of an independent State authority, board, commission, corporation, agency, or organization for whom there is a majority representative for collective negotiations purposes shall be 1.5% of base salary, notwithstanding any other amount that may be required additionally pursuant to this paragraph by means of a binding collective negotiations agreement; except that, commencing on the effective date of P.L. , c. (pending before the Legislature as this bill), and upon the expiration of any applicable binding collective negotiations agreement in force on that effective date, the amount of the contribution required pursuant to paragraph (1) of this subsection by State employees and employees of an independent State authority, board, commission, corporation, agency, or organization for whom there is a majority representative for collective negotiations purposes shall be 3% of base salary for the employee's coverage, plus an additional 1% of base salary for the coverage of a spouse, domestic partner or civil union partner and 0.5% of the employee's base salary for coverage of each of the employee's other dependents, except that the total contribution paid by an employee shall not exceed 30% of the premium or periodic charges for the health care benefits coverage for the employee and any dependents, notwithstanding any other amount that may be required additionally pursuant to this paragraph by means of a binding collective negotiations agreement.
The amount of the contribution required pursuant to paragraph (1) of this subsection as to State employees for whom there is no majority representative for collective negotiations purposes shall be determined in a manner consistent with the terms, if any, concerning health benefits coverage which are in a collective negotiations agreement deemed applicable by the commission to the employee. The amount of the contribution required pursuant to paragraph (1) of this subsection as to employees of an independent State authority, board, commission, corporation, agency, or organization for whom there is no majority representative for collective negotiations purposes shall be determined in a manner consistent with the terms, if any, concerning health benefits coverage which are in a collective negotiations agreement deemed applicable by the employer to the employee. The amount of the contribution required pursuant to paragraph (1) of this subsection as to State employees or employees of an independent State authority, board, commission, corporation, agency, or organization for whom there is no majority representative for collective negotiations purposes shall be 1.5 percent of base salary, notwithstanding any other amount that may be required additionally pursuant to this paragraph by means of the application of the terms of a binding collective negotiations agreement; except that, commencing on the effective date of P.L. , c. (pending before the Legislature as this bill), and upon the expiration of any binding collective negotiations agreement deemed applicable, by the commission or the employer, in force on that effective date, the amount of the contribution required pursuant to paragraph (1) of this subsection as to State employees or employees of an independent State authority, board, commission, corporation, agency, or organization for whom there is no majority representative for collective negotiations purposes shall be 3% of base salary for the employee's coverage, plus an additional 1% of base salary for the coverage of a spouse, domestic partner or civil union partner and 0.5% of the employee's base salary for coverage of each of the employee's other dependents, except that the total contribution paid by an employee shall not exceed 30% of the premium or periodic charges for the health care benefits coverage for the employee and any dependents, notwithstanding any other amount that may be required additionally pursuant to this paragraph by means of the application of the terms of a binding collective negotiations agreement.
(3) Except as provided in paragraph (5) of this subsection, the cost of benefits provided pursuant to P.L.1961, c.49 (C.52:14-17.25 et seq.) shall be shared by retirees to whom this subsection applies through the withholding of a contribution in an amount as determined in accordance with paragraph (4) of this subsection.
(4) The amount of the contribution required pursuant to paragraph (3) of this subsection as to State employees and employees of an independent State authority, board, commission, corporation, agency, or organization for whom there is a majority representative for collective negotiations purposes who accrue 25 years of nonconcurrent service credit in one or more State or locally-administered retirement systems on or after July 1, 2007, and who retire on or after July, 1, 2007, excepting employees who elect deferred retirement, but including those who retire on a disability pension after July 1, 2007, shall be determined by means of a binding collective negotiations agreement applicable at the time of the employee's accrual of 25 years of nonconcurrent service credit in one or more State or locally-administered retirement systems. The amount of the contribution required pursuant to paragraph (3) of this subsection as to State employees or employees of an independent State authority, board, commission, corporation, agency, or organization for whom there is no majority representative for collective negotiations purposes who accrue 25 years of nonconcurrent service credit in one or more State or locally-administered retirement systems on or after July 1, 2007, and who retire on or after July 1, 2007, excepting employees who elect deferred retirement, but including those who retire on a disability pension after July 1, 2007, shall be determined in a manner consistent with the terms, if any, concerning health benefits coverage in retirement which are in any collective negotiations agreement deemed applicable by the commission to that employee at the time of the employee's accrual of 25 years of nonconcurrent service credit in one or more State or locally-administered retirement systems, except that for employees who accrue 25 years of nonconcurrent service credit in one or more State or locally-administered retirement systems in the period beginning July 1, 2007, and ending June 30, 2011, the contribution shall be 1.5 percent of the monthly retirement allowance, including any future cost-of-living adjustments, or, with respect to retirees for whom there is no majority representative and who are members of the alternate benefit program, an amount determined pursuant to a formula developed by the commission that shall be designed to result in a contribution that is comparable to the contribution that applies to retirees who are not members of the alternate benefit program.
(5) The contribution required pursuant to paragraph (3) of this subsection shall not take effect until the New Jersey Retirees' Wellness Program is open for enrollment and thereafter the contribution shall be waived for a retiree who participates in the New Jersey Retirees' Wellness Program. The Division of Pensions and Benefits shall issue a report on the New Jersey Retirees' Wellness Program. The report shall include, but need not be limited to, the claims experience with regard to retirees in the program, and the costs and savings realized. The report shall be issued at the end of the third year after the program's implementation or by December 30, 2010, whichever is earlier. The report shall be submitted to the Governor, the Legislature, and the State Treasurer.
(6) Any employee or retiree from whom withholding of a contribution is required pursuant to this subsection shall not be required to pay any percentage of the premiums or periodic charges for health care benefits provided under P.L.1961, c.49 (C.52:14-17.25 et seq.), other than dental benefits.
(7) The contribution required pursuant to this subsection may be terminated only upon withdrawal from all health care benefits coverage as an employee or retiree, other than coverage for dental benefits, and the submission to the commission of written certification by the employee that the employee is covered by other health care benefits and that those benefits are in force. The commission shall not apply the written certification requirement to retirees or to employees to whom Article VI, Section VI, paragraph 6 of the New Jersey Constitution applies.
d. The amount of contribution required pursuant to paragraph (3) of subsection c. of this section in retirement as to a State employee and employee of an independent State authority, board, commission, corporation, agency, or organization who becomes a member of a State or locally-administered retirement system on or after the effective date of P.L.2010, c.2, for whom there is a majority representative for collective negotiations purposes and for whom there is no such representative, shall be 1.5 percent of the retiree's monthly retirement allowance, including any future cost-of-living adjustments, or with respect to members of the alternate benefit program, an amount determined pursuant to the formula specified in paragraph (4) of subsection c. of this section, notwithstanding any other amount that may be required additionally pursuant to paragraph (4) of subsection c. of this section by means of a binding collective negotiations agreement or by means of the application of the terms of such an agreement. The contribution required by this subsection or pursuant to paragraph (4) of subsection c. of this section for officers or employees specified in this subsection shall not be waived for a retiree who participates in the New Jersey Retirees' Wellness Program.
(cf: P.L.2010, c.2, s.1)
2. (New section) There shall be appropriated annually from the General Fund of the State to the Department of Health and Senior Services such sums as the State Treasurer deems necessary to fund the Women's Health and Family Planning Services Program at levels equivalent to the funding provided during State Fiscal 2009-2010, but not to exceed an amount equal to the amount realized by the Department of the Treasury because of increases in contributions for health care benefits coverage provided for by section 6 of P.L.1996, c.8 (C.52:14-17.28b), as amended by P.L. , c. (pending before the Legislature as this bill).
3. For State Fiscal Year 2010-2011, there is appropriated from the General Fund of the State to the Department of Health and Senior Services such sums as the State Treasurer deems necessary to fund the Women's Health and Family Planning Services Program at levels equivalent to the funding provided during State Fiscal Year 2009-2010, but not to exceed an amount equal to the amount realized by the Department of the Treasury because of increases in contributions for health care benefits coverage provided for by section 6 of P.L.1996, c.8 (C.52:14-17.28b), as amended by P.L. , c. (pending before the Legislature as this bill).
4. Section 6 of L.1979, c.391 (C.18A:16-17) is amended to read as follows:
6. a. Any local board of education entering into a contract pursuant to this act is authorized to pay part or all of the premiums or charges for such contracts and may appropriate out of its general funds any money necessary to pay such premiums or charges or portions thereof.
The contribution required of any employee toward the cost of such coverage may be deducted from the pay, salary or other compensation of such employee upon authorization in writing made to the local board of education.
The local board of education may reimburse an active employee for his premium charges under Part B of the Federal Medicare Program covering the employee alone.
Nothing herein shall be construed as compelling a local board of education to pay any portion of the premiums or charges attributable to such contracts.
b. Commencing on the effective date of P.L.2010, c.2 and upon the expiration of any applicable binding collective negotiations agreement in force on that effective date, employees of a local board of education shall pay 1.5 percent of base salary, through the withholding of the contribution from the pay, salary or other compensation, for health care benefits coverage provided pursuant to P.L.1979, c.391 (C.18A:16-12 et seq.), notwithstanding any other amount that may be required additionally pursuant to subsection a. of this section for such coverage; except that, commencing on the effective date of P.L. , c. (pending before the Legislature as this bill), and upon the expiration of any collective negotiations agreement in force on that effective date, employees of a local board of education shall pay 3% of base salary for the employee's coverage, plus an additional 1% of base salary for the coverage of a spouse, domestic partner or civil union partner and 0.5% of the employee's base salary for coverage of each of the employee's other dependents, except that the total contribution paid by an employee shall not exceed 30% of the premium or periodic charges for the health care benefits coverage, provided pursuant to P.L1979, c.391 (C.18A:16-12 et seq.), for the employee and any dependents, notwithstanding any other amount that may be required additionally pursuant to subsection a. of this section for such coverage.
This subsection shall apply also when the health care benefits coverage is provided through an insurance fund or joint insurance fund or in any other manner.
(cf: P.L.2010, c.2, s.13)
5. Section 16 of P.L.2010, c.2 (C.18A:64A-13.1a) is amended to read as follows:
16. Commencing on the effective date of P.L.2010, c.2 and upon the expiration of any applicable binding collective negotiations agreement in force on that effective date, employees of a county college shall pay 1.5 percent of base salary, through the withholding of the contribution from the pay, salary or other compensation, for health care benefits coverage provided by the employer, notwithstanding any other amount that may be required additionally by the employer or through collective negotiations agreements for such coverage; except that, commencing on the effective date of P.L. , c. (pending before the Legislature as this bill), and upon the expiration of any collective negotiations agreement in force on that effective date, employees of a county college shall pay 3% of base salary for the employee's coverage, plus an additional 1% of base salary for the coverage of a spouse, domestic partner or civil union partner and 0.5% of the employee's base salary for coverage of each of the employee's other dependents, except that the total contribution paid by an employee shall not exceed 30% of the premium or periodic charges for the health care benefits coverage for the employee and any dependents, notwithstanding any other amount that may be required additionally by the employer through collective negotiations agreements for such coverage.
This section shall apply also when the health care benefits coverage is provided through an insurance fund or joint insurance fund or in any other manner.
(cf: P.L.2010, c.2, s.16)
6. N.J.S.A.40A:10-21 is amended to read as follows:
40A:10-21. a. Any employer entering into a contract pursuant to this subarticle is hereby authorized to pay part or all of the premiums or charges for the contracts and may appropriate out of its general funds any money necessary to pay premiums or charges or portions thereof. The contribution required of any employee toward the cost of coverage may be deducted from the pay, salary or other compensation of the employee upon an authorization in writing made to the appropriate disbursing officer.
The employer may reimburse an active employee for his premium charges under Part B of the Federal Medicare Program covering the employee alone.
Nothing herein shall be construed as compelling an employer to pay any portion of the premiums or charges attributable to the contracts.
b. Commencing on the effective date of P.L.2010, c.2 and upon the expiration of any applicable binding collective negotiations agreement in force on that effective date, employees of an employer shall pay 1.5 percent of base salary, through the withholding of the contribution from the pay, salary or other compensation, for health care benefits coverage provided pursuant to N.J.S.40A:10-17, notwithstanding any other amount that may be required additionally pursuant to subsection a. of this section for such coverage; except that commencing on the effective date of P.L. , c. (pending before the Legislature as this bill), and upon the expiration of any collective negotiations agreement in force on that effective date, employees of an employer shall pay for health care benefits coverage 3% of base salary for the employee's coverage, plus an additional 1% of base salary for the coverage of a spouse, domestic partner or civil union partner and 0.5% of the employee's base salary for coverage of each of the employee's other dependents, except that the total contribution paid by an employee shall not exceed 30% of the premium or periodic charges for the health care benefits coverage, provided pursuant to N.J.S.40A:10-17, for the employee and any dependents, notwithstanding any other amount that may be required additionally pursuant to subsection a. of this section for such coverage.
This subsection shall apply also when the health care benefits coverage is provided through an insurance fund or joint insurance fund or in any other manner. This subsection shall apply to any agency, board, commission, authority, or instrumentality of a local unit.
(cf: P.L.2010, c.2, s.14)
7. Section 7 of P.L.1964, c.125 (C.52:14-17.38) is amended to read as follows:
7. a. 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.
Notwithstanding the provisions of any other law to the contrary, the obligations of a participating employer other than the State to pay the premium or periodic charges for health benefits coverage provided under P.L.1961, c.49 (C.52:14-17.25 et seq.) may be determined by means of a binding collective negotiations agreement. With respect to employees for whom there is no majority representative for collective negotiations purposes, the employer may, in its sole discretion, modify the respective payment obligations set forth in law for the employer and such employees in a manner consistent with the terms of any collective negotiations agreement binding on the employer. Commencing on the effective date of P.L.2010, c.2 and upon the expiration of any applicable binding collective negotiations agreement in force on that effective date, employees of an employer other than the State shall pay 1.5 percent of base salary, through the withholding of the contribution, for health benefits coverage provided under P.L.1961, c.49 (C.52:14-17.25 et seq.), notwithstanding any other amount that may be required additionally pursuant to this paragraph by means of a binding collective negotiations agreement or the modification of payment obligations; except that commencing on the effective date of P.L. , c. (pending before the Legislature as this bill), and upon the expiration of any collective negotiations agreement in force on that effective date, employees of an employer other than the State shall pay for health care benefits coverage 3% of base salary for the employee's coverage, plus an additional 1% of base salary for the coverage of a spouse, domestic partner or civil union partner and 0.5% of the employee's base salary for coverage of each of the employee's other dependents, except that the total contribution paid by an employee shall not exceed 30% of the premium or periodic charges for the health care benefits coverage, provided pursuant to P.L.1961, c.49 (C.52:14-17.25 et seq.), for the employee and any dependents, notwithstanding any other amount that may be required additionally pursuant to this paragraph by means of the application of the terms of a binding collective negotiations agreement.
b. (1) From funds allocated therefor, the employer other than the State, upon the adoption and submission to the division of an appropriate resolution prescribed by the commission, 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 the employee retired from a State or locally-administered retirement system, excepting the employee who elected deferred retirement, and may also reimburse the retired employee for the employee's premium charges under Part B of Medicare covering the retired employee and the employee's spouse if the employee:
(a) retired on a disability pension; or
(b) retired after 25 or more years of nonconcurrent service credit in one or more State or locally-administered retirement systems, excluding service credited under the Defined Contribution Retirement Program established pursuant to P.L.2007, c.92 (C.43:15C-1 et al.), and a period of service of up to 25 years with the employer at the time of retirement, such period of service to be determined by the employer and set forth in an ordinance or resolution as appropriate; or
(c) retired and reached the age of 65 years or older with 25 years or more of nonconcurrent service credit in one or more State or locally-administered retirement systems, excluding service credited under the Defined Contribution Retirement Program, and a period of service of up to 25 years with the employer at the time of retirement, such period of service to be determined by the employer and set forth in an ordinance or resolution as appropriate; or
(d) retired and reached the age of 62 years or older with at least 15 years of service with the employer, excluding service credited under the Defined Contribution Retirement Program.
"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 one or more State or locally-administered retirement systems prior to the date that the employer became a participating employer in the New Jersey State Health Benefits Program or 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.
(2) Notwithstanding the provisions of any other law to the contrary, the obligations of an employer other than the State, except an independent State authority, board, commission, corporation, agency, or organization deemed to be covered by section 6 of P.L.1996, c.8 (C.52:14-17.28b) and except school boards whose employees are covered by section 3 of P.L.1987, c.384 (C.52:14-17.32f), section 2 of P.L.1992, c.126 (C.52:14-17.32f1) and section 1 of P.L.1995, c.357 (C.52:14-17.32f2), to pay the premium or periodic charges for health benefits coverage under the provisions of paragraph (1) may be determined by means of a binding collective negotiations agreement, including any agreement in force at the time of the adoption of this act, P.L.1999, c.48. With respect to employees for whom there is no majority representative for collective negotiations purposes, the employer may, in its sole discretion, determine the payment obligations for the employer and the employees, except that if there are collective negotiations agreements binding upon the employer for employees who are within the same community of interest as employees in a collective negotiations unit but are excluded from participation in the unit by the "New Jersey Employer-Employee Relations Act," P.L.1941, c.100 (C.34:13A-1 et seq.), the payment obligations shall be determined in a manner consistent with the terms of any collective negotiations agreement applicable to the collective negotiations unit. An employee who becomes a member of a State or locally-administered retirement system on or after the effective date of P.L.2010, c.2 shall pay in retirement 1.5 percent of the retiree's monthly retirement allowance, including any future cost-of-living adjustments, through the withholding of the contribution, for health benefits coverage provided under P.L.1961, c.49 (C.52:14-17.25 et seq.), notwithstanding any other amount that may be required additionally pursuant to this paragraph by means of a binding collective negotiations agreement or the determination of payment obligations.
c. Notwithstanding the
provisions of any other law to the contrary, the payment obligations of an
employee of an employer other than the State, except an independent State
authority, board, commission, corporation, agency, or organization, for health
benefits coverage under subsection b. shall be the payment obligations applicable
to the employee on the date the employee retires on a disability pension or the
date the employee meets the service credit and service requirements for the
employer payment
for the coverage, as the case may be.
(cf: P.L.2010, c.2, s.5)
8. Section 39 of P.L.2007, c.103 (C.52:14-17.46.9) is amended to read as follows:
39. a. For each active covered employee and for the eligible dependents the employee may have enrolled at the employee's option, from funds appropriated therefor, the employer shall pay to the commission the premium or periodic charges for the benefits provided under the contract in amounts equal to the premium or periodic charges for the benefits provided under such a contract covering the employee and the employee's enrolled dependents.
b. The obligations of any employer to pay the premium or periodic charges for health benefits coverage provided under the School Employees' Health Benefits Program Act, sections 31 through 41 of P.L.2007, c.103 (C.52:14-17.46.1 through C.52:14-17.46.11), may be determined by means of a binding collective negotiations agreement, including any agreement in force at the time the employer commences participation in the School Employees' Health Benefits Program. With respect to employees for whom there is no majority representative for collective negotiations purposes, the employer may, in its sole discretion, modify the respective payment obligations set forth in law for the employer and such employees in a manner consistent with the terms of any collective negotiations agreement binding on the employer.
Commencing on the effective date of P.L.2010, c.2 and upon the expiration of any applicable binding collective negotiations agreement in force on that effective date, employees shall pay 1.5 percent of base salary, through the withholding of the contribution, for health benefits coverage provided under P.L.2007, c.103 (C.52:14-17.46.1 et seq.), notwithstanding any other amount that may be required additionally pursuant to this subsection by means of a binding collective negotiations agreement or the modification of payment obligations; except that commencing on the effective date of P.L. , c. (pending before the Legislature as this bill), and upon the expiration of any collective negotiations agreement in force on that effective date, employees shall pay for health care benefits coverage 3% of base salary for the employee's coverage, plus an additional 1% of base salary for the coverage of a spouse, domestic partner or civil union partner and 0.5% of the employee's base salary for coverage of each of the employee's other dependents, except that the total contribution paid by an employee shall not exceed 30% of the premium or periodic charges for the health care benefits coverage, provided pursuant to P.L.2007, c.103 (C.52:14-17.46.1 et seq.), for the employee and any dependents, notwithstanding any other amount that may be required additionally pursuant to this paragraph by means of the application of the terms of a binding collective negotiations agreement.
c. There is hereby established a School Employee Health Benefits Program fund consisting of all contributions to premiums and periodic charges remitted to the State treasury by participating employers for employee coverage. All such contributions shall be deposited in the fund and the fund shall be used to pay the portion of the premium and periodic charges attributable to employee and dependent coverage.
d. Notwithstanding any law to the contrary and except as provided by amendment by P.L.2010, c.2, the payment in full of premium or periodic charges for eligible retirees and their dependents pursuant to section 3 of P.L.1987, c.384 (C.52:14-17.32f), section 2 of P.L.1992, c.126 (C.52:14-17.32f1), or section 1 of P.L.1995, c.357 (C.52:14-17.32f2) shall be continued without alteration or interruption and there shall be no premium sharing or periodic charges for school employees in retirement once they have met the criteria for vesting for pension benefits, which criteria for purposes of this subsection only shall mean the criteria for vesting in the Teachers' Pension and Annuity Fund. For purposes of this subsection, "premium sharing or periodic charges" shall mean payments by eligible retirees based upon a proportion of the premiums for health care benefits.
(cf: P.L.2010, c.2, s.6)
9. This act shall take effect 30 days after enactment.
STATEMENT
This bill increases the health care benefits coverage contribution rate from 1.5 % to 3% of base salary for employees of the State or of independent State authorities, boards, commissions, corporations, agencies, and organizations, units of local government and school districts and provides that each such employee must pay an additional 1% of base salary for the coverage of a spouse, domestic partner or civil union partner and 0.5% of base salary for coverage of each of the employee's other dependents. However, the total contribution paid by an employee will not exceed 30% of the premium or periodic charges for the health care benefits coverage for the employee and any dependents. This means that, using 2010 average rates for the State Health Benefits Program, an employee with individual coverage would not be required to pay more than $2,151 per year (30% of $7,171) and an employee with coverage for the employee and multiple dependents would not be required to pay more than $5,380 per year (30% of $17,933). The bill will take effect 30 days after enactment, except that for employees where contributions are determined by application of a collective negotiations agreement in force on the bill's effective date the increase will be effective upon the expiration of that agreement.
In addition, the bill requires an annual appropriation from the State's General Fund to the Department of Health and Senior Services in an amount sufficient to continue funding for the Women's Health and Family Planning Services Program at levels equivalent to funding provided during State Fiscal Year 2009-2010, up to the amount collected by the Department of the Treasury because of increases in the health care benefits coverage contribution rate for State employees provided for by this bill. The bill also appropriates a like amount during the current fiscal year.
