New Jersey 2022-2023 Regular Session

New Jersey Senate Bill S2963

Introduced
8/8/22  

Caption

Establishes fringe benefit rate for State public higher education institutions; requires employer pay for health care benefits for certain part-time faculty.

Impact

This bill amends existing laws to provide greater equity in health benefits for part-time faculty members who have traditionally been overlooked in policy frameworks. Under the new guidelines, part-time faculty can qualify for participation in health benefits if they meet certain teaching criteria within a given fiscal year. Specifically, faculty teaching at least 24 credits annually and at least 12 credits in a specified period can be classified as full-time for benefits purposes. This change is significant as it enhances job security and access to healthcare for adjunct and part-time educators, who constitute a large segment of university staff.

Summary

Senate Bill S2963 establishes a distinct fringe benefit rate for State public higher education institutions in New Jersey. This legislation mandates that the Director of the Division of Budget and Accounting in the Department of the Treasury set this rate from the fiscal year 2023 onwards. The aim is to reflect the actual costs associated with employee retirement programs specific to institutions like Rutgers and the New Jersey Institute of Technology. Importantly, the bill stipulates that payments according to this new rate shall not decrease more than $47 million compared to previous calculations, thus ensuring that state funding maintains a baseline level for these institutions.

Contention

There is likely contention surrounding the financial implications of the new fringe benefit rate. Stakeholders may debate whether the $47 million cap protects institutional budgets given the rising costs of providing healthcare and retirement benefits. Furthermore, while the bill's provisions enhance access to eligibility for healthcare for part-time faculty, it does not address funding sources for these benefits, which could draw critical backlash from those concerned about budget constraints. Colleges may face difficulties meeting these new obligations without additional state support, leading to potential debates on the sustainability of such policies.

Companion Bills

NJ A4398

Same As Establishes fringe benefit rate for State public higher education institutions; requires employer pay for health care benefits for certain part-time faculty.

Previously Filed As

NJ S3177

Establishes fringe benefit rate for State public higher education institutions; requires employer pay for health care benefits for certain part-time faculty.

NJ A4398

Establishes fringe benefit rate for State public higher education institutions; requires employer pay for health care benefits for certain part-time faculty.

NJ A3118

Establishes fringe benefit rate for State public higher education institutions; requires employer pay for health care benefits for certain part-time faculty.

NJ S3626

Establishes minimum student to employee ratio for calculating State support for employee fringe benefit costs at four-year public institutions of higher education.

NJ S4491

Requires election by certain public employees of certain health care benefit plans; prohibits payments by public employers for waiver of such plans.

NJ A2606

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.

NJ A1131

Requires election by certain public employees of certain health care benefit plans; prohibits payments by public employers for waiver of such plans.

NJ A1317

Requires election by certain public employees of certain health care benefit plans; prohibits payments by public employers for waiver of such plans.

NJ HB2611

Relating to health care benefits for part-time faculty members at post-secondary institutions of education; and declaring an emergency.

NJ A963

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.

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