Bill Text: NJ S1391 | 2010-2011 | Regular Session | Introduced
Bill Title: Requires officers and employees of political subdivisions to contribute a portion of their base salary towards the cost of their health care coverage.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-02-11 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S1391 Detail]
Download: New_Jersey-2010-S1391-Introduced.html
Sponsored by:
Senator LORETTA WEINBERG
District 37 (Bergen)
SYNOPSIS
Requires officers and employees of political subdivisions to contribute a portion of their base salary towards the cost of their health care coverage.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning health care benefits for employees and officers of political subdivisions of the State and amending various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.40A:10-10 is amended to read as follows:
40A:10-10. The commissioners shall have the following powers and authority:
a. Employ necessary clerical assistants, whose compensation shall be fixed and paid by the governing body of the local unit in the same manner as is that of other employees of the local unit;
b. Invest the fund and all additions and accretions thereto in such securities as they shall deem best suited for the purposes of this article;
c. Adopt rules and regulations for the control and investment of the fund;
d. Keep on hand at all times sufficient money, or have the same invested in such securities as can be immediately sold for cash, for the payment of losses to any buildings or property of the local unit or of a county college which participates in the fund pursuant to P.L. 1988, c. 144 (C. 18A:64A-25.40 et al.) or of a county vocational school which participates in the fund pursuant to P.L. 1988, c. 143 (C. 18A:18B-8 et al.), or liability resulting from the operation of publicly owned motor vehicles, equipment or apparatus;
e. Fix reasonable rates of premium for all insurance carried by the insurance fund, and shall effect all insurance in the insurance fund or with any insurance company or companies authorized to do business in this State, provided that the amount of any contribution required as to employees and officers of a local unit for whom there is a majority representative for collective negotiations shall be determined by means of a binding collective negotiations agreement, but shall be not less than 1.5 percent of base salary, and shall take effect upon the implementation of the duly executed collective negotiations agreement next following the enactment of P.L. , c. (pending before the Legislature as this bill). The amount of the contribution required as to employees and officers of a local unit for whom there is no majority representative for collective negotiations purposes shall be 1.5 percent of base salary;
f. Premiums for insurance, whether carried in the insurance fund or placed with insurance companies, shall be paid to the commissioners by the board, commission, department, committee or officer having charge or control of the property insured;
g. All insurance upon property owned or controlled by a local unit or any of its departments, boards, agencies or commissions, or by a board of education of a participating county vocational school or by a board of trustees of a participating county college shall be placed and effected by the commissioners;
h. If provided by the rules and regulations of the commission, the secretary to the insurance fund commission shall be entrusted with the daily operation of the insurance fund and shall submit a report to the commissioners at least once a month.
(cf: P.L.1988, c.144, s.5)
2. N.J.S.40A:10-21 is amended to read as follows:
40A:10-21. 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 amount of any contribution required as to employees and officers of a local unit for whom there is a majority representative for collective negotiations shall be determined by means of a binding collective negotiations agreement, but shall be not less than 1.5 percent of base salary, and shall take effect upon the implementation of the duly executed collective negotiations agreement next following the enactment of P.L. , c. (pending before the Legislature as this bill). The amount of the contribution required as to employees and officers of a local unit for whom there is no majority representative for collective negotiations purposes shall be 1.5 percent of base salary.
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.
(cf: P.L.1979, c.230, s.1)
3. 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.
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. With regard to this paragraph, all employees shall be required to contribute an amount equal to at least 1.5% of base salary to pay the premium or periodic charges for health benefits coverage. The amount of any contribution required as to employees for whom there is a majority representative for collective negotiations shall take effect upon the implementation of the duly executed collective negotiations agreement next following the enactment of P.L. , c. (pending before the Legislature as this bill).
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.2007, c.92, s.30)
4. This act shall take effect immediately.
STATEMENT
This proposed legislation amends current law to provide require employees and officers of counties, municipalities, county and municipal authorities, fire districts, and special districts to contribute an amount equal to no less than 1.5% of their base salary towards the cost of their health care coverage, just as is required for State officers and employees.
