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CONTACT:        Frank Belluscio (fbelluscio@njsba.org)                                                     FOR IMMEDIATE RELEASE
                        Mike Yaple (myaple@njsba.org)
                        (609) 278-5202

Corzine Signs Pension and Health Benefits Reform Bill

Trenton, May 10, 2007 - Gov. Jon S. Corzine signed the Pension and Health Benefits Reform bill (S-17) into law Thursday.

The legislation, which originated in special session on property tax reform, gives school districts the ability to unilaterally offer their employees incentives to waive coverage under the State Health Benefits Program.

“Combined with the recently negotiated contracts with our public workers, this bill will help protect the integrity of the retirement system and give the public faith that the benefits we provide to our public workers are accounted for honestly,” Corzine said in a prepared statement.

S-17's waiver incentives will complement SHBP reforms enacted through another bill, A-1. Those reforms include allowing employee contribution to premiums and variations in coverage levels for different classifications of employees, based on their date of hire, salary and other factors.

Victory for Boards "This is a victory for school boards, which have been asking for this option for as long as I recall," said Mike Vrancik, NJSBA director of governmental relations. "It will give our members the ability to save their districts money."

In addition to SHBP reform, S-17 will prohibit people who have professional services contracts with government entities and school districts from participating in the Public Employees' Retirement System. It also removes elected and appointed public officials from that system.

Newly elected and appointed officials will instead participate in a 401(k)-style defined contribution plan, under S-17, according to the governor's office. However, NJSBA is awaiting clarification through the regulatory process.

Sick Leave Cap Other S-17 reforms include placing a $15,000 cap on payments for accrued sick leave, a provision that will apply to certain elected and appointed officials. Further clarification of the cap will need to come through regulation.

NJSBA is seeking further clarification on other provisions of S-17 and is in the process of conducting a thorough analysis of the new law. As soon as they become available, updates will be given to the members.

Fast Facts:

• About 33 percent of the state's public school districts currently participate in the SHBP.
• Districts with private carriers have always had the ability to negotiate waiver incentives and other cost containment provisions.
• Municipalities have had the waiver incentive option since 1995, municipal authorities since 2001 and county colleges since 2003. That same flexibility will now benefit school districts during contract negotiations.

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The New Jersey School Boards Association, a federation of district boards of education, advocates the interests of school districts, trains local school board members, and provides resources for the advancement of public education.