Establishes fringe benefit rate for State public higher education institutions; requires employer pay for health care benefits for certain part-time faculty.
Impact
Starting in the fiscal year 2023, the bill requires that the payments made to the state under the newly established fringe benefit rate cannot fall below a threshold of $47 million difference from previously calculated rates. Such a strategic change is expected to enhance the financial management and funding of employee benefits at institutions of higher education while facilitating the application process for grant funding on federal and state levels. This would also allow for a clearer alignment of benefit structures between part-time and full-time faculty, potentially improving job satisfaction and employee retention.
Summary
Assembly Bill A4398 introduces significant modifications to the fringe benefit structure for part-time faculty at State public higher education institutions in New Jersey. The bill mandates the establishment of a separate fringe benefit rate reflective of the actual costs related to employee retirement programs specifically for these institutions, including prominent ones like Rutgers and the New Jersey Institute of Technology. This separates the financial considerations for public colleges from those applicable to state employees in general, aiming to address existing inequities in employee benefits.
Contention
One of the critical contentious elements surrounding A4398 is the eligibility criteria set forth for part-time faculty to enroll in the State Health Benefits Program (SHBP). The bill stipulates that eligible faculty must teach a minimum of 24 credits in the preceding fiscal year and be appointed for at least an additional 12 credits in the current fiscal year. Critics may argue that such stringent requirements could hinder part-time educators' access to necessary health benefits, which could, in turn, affect the quality of education delivered. Additionally, because these changes could potentially impose financial implications on public institutions related to the billing for the SHBP enrollment of the part-time faculty, there may be discussions about the long-term sustainability of such costs.
Considerations
Furthermore, this legislation implies that part-time faculty's participation in SHBP will not qualify employees for employer or state-paid health benefits upon retirement, which raises concerns about the long-term financial security and health coverage of educators who may dedicate many years to teaching. The State Health Benefits Commission is expected to design rules for the enrollment and billing process, ensuring that part-time faculty's contributions are proportionate to their taught credits. The implementation of such provisions aims to create a more structured and equitable health benefits system for higher educational faculty, yet discussions about balancing administrative costs and faculty support are likely to persist.
Same As
Establishes fringe benefit rate for State public higher education institutions; requires employer pay for health care benefits for certain part-time faculty.
Establishes fringe benefit rate for State public higher education institutions; requires employer pay for health care benefits for certain part-time faculty.
Establishes fringe benefit rate for State public higher education institutions; requires employer pay for health care benefits for certain part-time faculty.
Establishes fringe benefit rate for State public higher education institutions; requires employer pay for health care benefits for certain part-time faculty.
Establishes minimum student to employee ratio for calculating State support for employee fringe benefit costs at four-year public institutions of higher education.
Provides that healthcare benefits plan, fully or partly paid by public employer, cannot cover public employee's spouse who is subject of divorce from bed and board.
Sets level for healthcare benefits; requires employee contributions; prohibits reimbursement of Medicare Part B; adds member to SHBP/SEHBP plan design committees; requires retirees to purchase health benefits through exchanges; provides subsidies for out-of-pocket costs.