Establishes fringe benefit rate for State public higher education institutions; requires employer pay for health care benefits for certain part-time faculty.
Impact
In terms of financial implications, the new fringe benefit rate could lead to more than $47 million in additional payments to the State compared to previous calculations. The intent of this bill is to streamline how benefits are managed and to give a greater focus on the particular needs of public higher education institutions. As part-time faculty members meet specific teaching criteria, they will also be able to enroll in State Health Benefits Program (SHBP), which signifies a significant expansion of health benefits to a group of workers who often lack adequate access.
Summary
Assembly Bill A3118 is designed to establish a separate fringe benefit rate for State public higher education institutions in New Jersey. This act mandates that starting with the State fiscal year 2023, the Director of the Division of Budget and Accounting must create a separate rate that accurately reflects the costs associated with employee retirement programs within these institutions. This new rate aims to ensure equity in the management of retirement costs among employees as many are enrolled in different pension systems – specifically, the Public Employees' Retirement System (PERS) and the Alternative Benefit Plan (ABP).
Contention
While the bill seeks to provide comprehensive benefits to part-time faculty, there may be concerns about the financial burden it places on public institutions. Critics might argue that requiring budgets to account for these changes at a time when many institutions face financial challenges could lead to unintended consequences, such as reductions in hiring or even cuts in courses. The potential strain on public finances may also lead to contentious debates on whether these changes should be enacted without wider input from all stakeholders within the higher education community.
Same As
Establishes fringe benefit rate for State public higher education institutions; requires employer pay for health care benefits for certain part-time faculty.
NJ A4398
Carry Over
Establishes fringe benefit rate for State public higher education institutions; requires employer pay for health care benefits for certain part-time faculty.
NJ S2963
Carry Over
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.