New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A3118

Introduced
1/9/24  

Caption

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.

Companion Bills

NJ S3177

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.

Previously Filed As

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 S2963

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

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 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 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 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 S4491

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

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.

NJ HB2611

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

Similar Bills

CA SB633

California DREAM Loan Program: DREAM grants.

CA AB2563

Student financial aid: Cal Grant B and Cal Grant C awards: financial aid book advance program.

CA AB561

Help Homeowners Add New Housing Program: accessory dwelling unit financing.

CA AB2016

Student financial aid: Student Aid Commission: total cost of attendance calculator.

CA AB2400

California Pollution Control Financing Authority Act: Capital Access Loan Program for Small Businesses.

CA SB354

California DREAM Loan Program: graduate degree programs.

CA AB2004

California DREAM Loan Program.

CA AB820

Corporation Tax Law: banks and financial corporations: exclusions: interest income.