This bill amends existing law regarding the School Employees' Health Benefits Program by establishing a mechanism for financial transfers between health benefits funds. Specifically, if the health benefits fund for active education employees and their dependents falls below a level sufficient to cover 10 days of anticipated payments, the Director of the Division of Pensions and Benefits is authorized to temporarily transfer funds from the health benefits fund for local education retirees and their dependents. The amount transferred cannot exceed what is necessary to cover 30 days of anticipated payments, and the Director must notify the School Employees Health Benefits Commission within 30 days of any transfer.

Additionally, the bill stipulates that the transferred amount must be reimbursed within 120 days, unless an extension is deemed necessary, which cannot exceed an additional 365 days. The Director is also required to provide the State Treasurer with a monthly accounting of all transfers, outstanding balances, repayments, and the current balance of the active education employee health benefits fund. The bill includes a new provision that restricts the use of certain subaccount assets to ensure they are only used for health benefits and administrative costs, reinforcing the financial integrity of the program.

Statutes affected:
Introduced: 52:14-17.46.9
Advance Law: 52:14-17.46.9