NJSBA-Backed Change Extends
Benefits Reform to All Districts

By a 36-0 vote, the state Senate on Monday approved a pension/health benefits reform package that included an NJSBA-supported amendment to Senate Bill 3, the part of the reforms addressing employee health coverage.

Under the amendment, previously adopted by the Senate State Government Committee on Feb. 18, all public school employees would contribute an amount equivalent to 1.5 percent of their salary to cost of health benefits – regardless of the insurance carrier used. The original version of the bill applied only to staff members covered through the state-run School Employee Health Benefits Program, which covers 47 percent of school districts. The NJSBA supported amendment will extend required employee contribution to health insurance premium to the other 53 percent of districts that use private insurance carriers.

The contribution under the S-3 amendment would be in addition to “any other amount that may be required additionally by contract with such employers.”

NJSBA testified in support of the pension/benefits reform package (S-2, S-3 and S-4) at the Senate committee hearing.

“The reform package reflects concepts that provide long-term stability for the retirement system,” Barbara Horl of NJSBA’s governmental relations department told the Senate State Government Committee.

In addition to contributions to premium by active employees, S-3 would address the cost of post-retirement medical benefits by requiring contributions from future retirees.

S-3 (Doherty, Whelan) would implement some of the key changes recommended in 2006 by the Joint Legislative Committee on Public Employee Benefits Reform.

The measures still need approval by the Assembly. It is expected that the Assembly will introduce its own versions of the bills in coming days

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