The bill amends N.J.S.40A:10-23 to create a proportional distribution system for health benefit payment obligations among employers for retirees who qualify for employer-paid health benefits coverage. Specifically, if a retiree has worked for multiple state or local government entities or institutions of higher education, the employer's share of health benefits costs will be allocated on a pro rata basis according to the duration of employment with each employer. The bill also clarifies that local government entities that have not opted to provide employer-paid health benefits in retirement are not required to contribute to such coverage for retirees. Importantly, the new provisions will not alter any existing binding collective negotiations agreements.

Additionally, the bill maintains the existing health benefit payment obligations for retirees while introducing the new proportional payment structure. It establishes a framework for the School Employee Health Benefits Program fund to manage contributions and payments for health benefits and outlines the responsibilities of a third-party medical claims reviewer. The bill is designed to ensure that retirees receive the benefits they are entitled to while addressing the financial responsibilities of the employers involved, and it is set to take effect 180 days after enactment to allow for necessary implementation preparations.

Statutes affected:
Introduced: 52:14-17.28, 52:14-17.46.9