[First Reprint] ASSEMBLY, No. 5039 STATE OF NEW JERSEY 221st LEGISLATURE INTRODUCED OCTOBER 28, 2024
[First Reprint]
ASSEMBLY, No. 5039
STATE OF NEW JERSEY
221st LEGISLATURE
INTRODUCED OCTOBER 28, 2024
Sponsored by: Assemblyman CRAIG J. COUGHLIN District 19 (Middlesex) Senator NICHOLAS P. SCUTARI District 22 (Somerset and Union) Co-Sponsored by: Assemblywoman Speight SYNOPSIS Requires Division of Pensions and Benefits to provide report on available funds in local government part of SHBP prior to transferring funds from State part of SHBP; requires monthly reporting on certain assets in SHBP. CURRENT VERSION OF TEXT As amended on February 20, 2025 by the Senate pursuant to the Governor's recommendations.
Sponsored by:
Assemblyman CRAIG J. COUGHLIN
District 19 (Middlesex)
Senator NICHOLAS P. SCUTARI
District 22 (Somerset and Union)
Co-Sponsored by:
Assemblywoman Speight
SYNOPSIS
Requires Division of Pensions and Benefits to provide report on available funds in local government part of SHBP prior to transferring funds from State part of SHBP; requires monthly reporting on certain assets in SHBP.
CURRENT VERSION OF TEXT
As amended on February 20, 2025 by the Senate pursuant to the Governor's recommendations.
An Act concerning the State Health Benefits Program and amending 1[P.L , c. (pending before the Legislature as Assembly Bill No. A4999 or Senate Bill No. 3838 of 2024/2025)] P.L.2024, c.861. Be It Enacted by the Senate and General Assembly of the State of New Jersey: 1. Section 2 of 1[P.L. , c. (C. ) (pending before the Legislature as Assembly Bill No. A4999 or Senate Bill No. 3838 of 2024/2025)] P.L.2024, c.86 (C.52:14-17.42a)1 is amended to read as follows: 2. a. If the available funds in the health benefits funds established pursuant to sections 10 and 11 of P.L.1964, c.125 (C.52:14-17.41 and C.52:14-17.42) fall to a level that is insufficient to cover 10 days of anticipated payments from the fund, including, but not limited to, any portion of premiums, claims, and other periodic charges, provided that claims for medical, prescription, and dental expenses are based on an average over the past six months, then the Director of the Division of Pensions and Benefits may initiate a temporary transfer of available funds from the health benefits fund established pursuant to section 6 of P.L.1961, c.49 (C.52:14-17.30) to the health benefits funds established pursuant to sections 10 and 11 of P.L.1964, c.125 (C.52:14-17.41 and 52:14-17.42). The Director of the Division of Pensions and Benefits shall notify the commission 1[within]1 [30] 1[five days of the transfer, and shall provide a report of claims payable, available fund balance, and anticipated premiums for the health benefits funds established pursuant to sections 10 and 11 of P.L.1964, c.125 (C.52:14-17.41 and 52:14-17.42) prior to the transfer. The report shall also include categorized data for active and retired employees] and the State Treasurer on the 15th of each month in which a transfer pursuant to this subsection is made or anticipated1. The amount transferred pursuant to this subsection shall not exceed the amount necessary to cover 30 days of anticipated payments from the fund, including, but not limited to, any portion of premiums, claims, and other periodic charges, provided that claims for medical, prescription, and dental expenses are based on an average over the past six months and any other anticipated payment or charge in the next 30 days. The amount transferred pursuant to this subsection shall be reimbursed from the health benefits fund established pursuant to section 11 of P.L.1964, c.125 (C.52:14-17.42) on or before the 120th day next following the date of the transfer unless the Director of the Division of Pensions and Benefits determines that an extension of the reimbursement date is necessary to ensure that sufficient funding is available to pay claims incurred by employees of employers other than the State and their dependents; provided, however, in no case shall the reimbursement date be extended for more than an additional 365 days. b. 1[The] On the 30th day of each month, the1 Director of the Division of Pensions and Benefits shall provide to the State Treasurer 1[a monthly] and the commission an1 accounting of any transfers initiated in the prior 30 days pursuant to subsection a. of this section, the outstanding balances of all transfers initiated pursuant to subsection a. of this section, any repayments for past transfers received, and the current balance of the health benefits 1[fund] funds1 established pursuant to 1[section] sections 10 and1 11 of P.L.1964, c.125 (1C.52:14-17.41 and1 C.52:14-17.42). 1[c. Beginning 30 days following the effective date of this act, P.L. , c. (pending before the Legislature as this bill), the Division of Pensions and Benefits shall provide monthly reports on the available funds for the health benefits fund established pursuant to section 6 of P.L.1961, c.49 (C.52:14-17.30) and the health benefits funds established pursuant to sections 10 and 11 of P.L.1964, c.125 (C.52:14-17.41 and 52:14-17.42) to the commission, including cash balances, claims costs incurred, and premiums collected.]1 (cf: P.L.2024, c.86, s.2) 2. This act shall take effect immediately.
An Act concerning the State Health Benefits Program and amending 1[P.L , c. (pending before the Legislature as Assembly Bill No. A4999 or Senate Bill No. 3838 of 2024/2025)] P.L.2024, c.861.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of 1[P.L. , c. (C. ) (pending before the Legislature as Assembly Bill No. A4999 or Senate Bill No. 3838 of 2024/2025)] P.L.2024, c.86 (C.52:14-17.42a)1 is amended to read as follows:
2. a. If the available funds in the health benefits funds established pursuant to sections 10 and 11 of P.L.1964, c.125 (C.52:14-17.41 and C.52:14-17.42) fall to a level that is insufficient to cover 10 days of anticipated payments from the fund, including, but not limited to, any portion of premiums, claims, and other periodic charges, provided that claims for medical, prescription, and dental expenses are based on an average over the past six months, then the Director of the Division of Pensions and Benefits may initiate a temporary transfer of available funds from the health benefits fund established pursuant to section 6 of P.L.1961, c.49 (C.52:14-17.30) to the health benefits funds established pursuant to sections 10 and 11 of P.L.1964, c.125 (C.52:14-17.41 and 52:14-17.42). The Director of the Division of Pensions and Benefits shall notify the commission 1[within]1 [30] 1[five days of the transfer, and shall provide a report of claims payable, available fund balance, and anticipated premiums for the health benefits funds established pursuant to sections 10 and 11 of P.L.1964, c.125 (C.52:14-17.41 and 52:14-17.42) prior to the transfer. The report shall also include categorized data for active and retired employees] and the State Treasurer on the 15th of each month in which a transfer pursuant to this subsection is made or anticipated1. The amount transferred pursuant to this subsection shall not exceed the amount necessary to cover 30 days of anticipated payments from the fund, including, but not limited to, any portion of premiums, claims, and other periodic charges, provided that claims for medical, prescription, and dental expenses are based on an average over the past six months and any other anticipated payment or charge in the next 30 days. The amount transferred pursuant to this subsection shall be reimbursed from the health benefits fund established pursuant to section 11 of P.L.1964, c.125 (C.52:14-17.42) on or before the 120th day next following the date of the transfer unless the Director of the Division of Pensions and Benefits determines that an extension of the reimbursement date is necessary to ensure that sufficient funding is available to pay claims incurred by employees of employers other than the State and their dependents; provided, however, in no case shall the reimbursement date be extended for more than an additional 365 days.
b. 1[The] On the 30th day of each month, the1 Director of the Division of Pensions and Benefits shall provide to the State Treasurer 1[a monthly] and the commission an1 accounting of any transfers initiated in the prior 30 days pursuant to subsection a. of this section, the outstanding balances of all transfers initiated pursuant to subsection a. of this section, any repayments for past transfers received, and the current balance of the health benefits 1[fund] funds1 established pursuant to 1[section] sections 10 and1 11 of P.L.1964, c.125 (1C.52:14-17.41 and1 C.52:14-17.42).
1[c. Beginning 30 days following the effective date of this act, P.L. , c. (pending before the Legislature as this bill), the Division of Pensions and Benefits shall provide monthly reports on the available funds for the health benefits fund established pursuant to section 6 of P.L.1961, c.49 (C.52:14-17.30) and the health benefits funds established pursuant to sections 10 and 11 of P.L.1964, c.125 (C.52:14-17.41 and 52:14-17.42) to the commission, including cash balances, claims costs incurred, and premiums collected.]1
(cf: P.L.2024, c.86, s.2)
2. This act shall take effect immediately.