The bill amends N.J.S.40A:10-23 to establish a proportional distribution of health benefit payment obligations among employers for retirees who have worked for multiple state or local government entities or institutions of higher education. Under the new provisions, 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. It 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. Importantly, the bill ensures that these changes do not affect any existing binding collective negotiations agreements.

Additionally, the bill mandates that retirees who become members of a state or locally-administered retirement system after the effective date of P.L.2010, c.2 must contribute 1.5% of their monthly retirement allowance towards health care benefits coverage, regardless of how the coverage is provided. This aims to create a fairer system for distributing health benefit costs among multiple employers while ensuring that retirees contribute to their health care expenses. The bill is set to take effect 180 days after enactment, with the State Treasurer authorized to take necessary anticipatory actions prior to this date.

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