New Jersey Assembly Bill A1266

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Permits surviving spouse of retired member of PFRS to be enrolled in SHBP and to continue to receive pension benefit after remarriage in certain circumstances.

Impact

In addition to healthcare coverage, the bill also stipulates that surviving spouses will maintain their pension benefits even upon remarriage. This is a notable change from prior laws, which typically resulted in pension termination upon remarriage. The state, henceforth, would bear any additional costs incurred by employers outside of the state due to these provisions, thus reflecting a commitment to support the families of those who served in public safety roles.

Summary

Assembly Bill A1266 proposes a significant enhancement of benefits for surviving spouses of retired members of the Police and Firemen's Retirement System (PFRS). Specifically, it allows these surviving spouses to enroll in the State Health Benefits Program (SHBP) with the state covering the full premium costs for both the spouse and any dependent children. This provision aims to provide financial security and assistance to families affected by the loss of a retired member who received an accidental disability retirement allowance at the time of their death.

Contention

There may be points of contention regarding how these changes will be funded and the implications for the retirement system's sustainability. Critics might argue that this bill places additional financial burdens on the state's retirement system, especially if a significant number of spouses opt to continue their pensions after remarriage. Advocates of the bill counter this by emphasizing the moral obligation to support families of fallen heroes and the potential long-term savings from better health outcomes for these individuals due to accessible healthcare coverage.

Final_note

If enacted, AB A1266 is set to take effect immediately, providing rapid support to those eligible without a lengthy implementation process. Its provisions are designed to address both the healthcare needs and financial stability of surviving spouses, reflecting a progressive approach to public retirement system reform.