New Jersey Administrative Code
Title 17 - TREASURY - GENERAL
Chapter 9 - STATE HEALTH BENEFITS PROGRAM
Subchapter 6 - RETIREMENT
Section 17:9-6.8 - Premium-sharing for retired employee State Health Benefit Coverage and reimbursement for Medicare Part B costs
Current through Register Vol. 56, No. 6, March 18, 2024
(a) All State employees, except nonaligned uniformed State Police officers, who accrue 25 years of service credit in a State-administered retirement system or retire on a disability retirement after July 1, 1997, for whom there is no majority representative for collective negotiations purposes, and who were hired by the State prior to July 1, 1995, and were continuously employed, shall, upon retirement, receive Medicare Part B reimbursement after retirement up to a cap of $46.10 per month per eligible employee and the employee's spouse or eligible partner and be subject to payroll deductions for coverage in advance of the coverage period in accordance with standard payroll procedures as set forth below. State employees, except nonaligned uniformed State Police officers, who accrue 25 years of service credit in a State-administered retirement system or who retire on a disability retirement after July 1, 1997, for whom there is no majority representative for collective negotiations purposes, and who were hired by the State on or after July 1, 1995, shall not be entitled to receive Medicare Part B reimbursement after retirement.
(b) For employees hired before December 11, 1995, who accrue 25 years of service credit in a State-administered retirement system or retire on a disability retirement after July 1, 1997 but before July 1, 2000, payroll deductions for NJ DIRECT10 or Aetna Freedom 10 coverage shall be determined using a base salary as of the first pay period of the calendar year in which retirement occurred, as follows:
(c) Employees hired on or after December 11, 1995, who accrue 25 years of service credit in a State-administered retirement system after July 1, 1997 but before July 1, 2000, or retire on a disability retirement after July 1, 1997 but before August 1, 2000, shall, upon retirement, pay the difference between the cost of NJ DIRECT10 or Aetna Freedom 10 and the average cost to the State for the other participating plans, as determined hereinafter.
(d) The average cost for NJ DIRECT15 and other participating plans for each category of coverage for a rate time period shall be determined as follows:
(e) For retirees who accrue 25 years of service credit in a State-administered retirement system on or after July 1, 2000 but before June 30, 2007, or retire on a disability retirement after July 1, 2000 but on or before July 1, 2007, payroll deductions for NJ DIRECT10 or Aetna Freedom 10 coverage shall be determined as follows:
(f) State retirees who accrue 25 years of service credit in a State-administered retirement system on or after July 1, 2007 but before June 30, 2011, or retire on a disability retirement after July 1, 2007 but before June 30, 2011, shall pay a health contribution for post-retirement health coverage. For most plans, except as specified under 52:14-17.28, the retiree will pay a health contribution of 1.5 percent of their retirement allowance, as negotiated, or 1.5 percent of 50 percent of the highest salary received in the last five years of employment for Alternate Benefit Program members. The health contribution is waived for retirees who participate in the Retiree Wellness Program.
(g) State retirees who accrue 25 years of service credit in a State-administered retirement system after June 30, 2011, and have 20 years of service credit as of that date, shall have a health contribution of 1.5 percent of their retirement allowance deducted for their post-retirement health benefits coverage for most plans, except as specified under 52:14-17.28c . This health contribution will not be waived, even for those who participate in the Retiree Wellness Program.
(h) State retirees who retire on a disability retirement or accrue 25 years of service credit in a State-administered retirement system on or after June 28, 2011, and do not meet the conditions of (g) above, shall have a health contribution deducted from their retirement allowance for their post-retirement health benefits coverage, pursuant to 52:14-17.28c . The health contribution is determined as a specific percentage of the premium, and is based on the member's annual retirement allowance and coverage level. A minimum contribution of 1.5 percent of the monthly retirement allowance is required.
(i) The premium-sharing obligations for retired nonaligned uniformed State Police officers shall be the same as those for retired Lieutenants of the Division of State Police.
(j) Independent State authorities, boards, commissions, corporations, agencies, or organizations who are excluded from determining by means of a binding collective negotiations agreement the payment obligations of the employer to pay the premium or periodic charges for SHBP coverage in retirement under the provisions of 52:14-17.38 , and who are permitted by 52:14-17.28b to have their active employees premium share in the same manner as the State, may also have their retired employees premium share in the same manner as the State. The payment obligations of an employee under this subsection shall be the payment obligations applicable to the employee on the date the employee retired on a disability pension (if enrolled on or before May 21, 2010, for PERS and TPAF members) or the date the employee meets the service credit and service requirements for employer payment for the coverage, as the case may be.
(k) A member with less than 25 years of service credit upon retirement will be offered retired SHBP coverage but must pay the full cost of post-retirement health benefits coverage, in addition to meeting all other eligibility requirements.