N.J. Admin. Code § 17:9-5.4

Current through Register Vol. 56, No. 24, December 18, 2024

Section 17:9-5.4 - Local employer resolution; P.L. 1974, c. 88; P.L. 1979, c. 54; P.L. 1999, c. 48

(a) A local employer will satisfy the requirements of P.L. 1974, c. 88, by adopting a resolution designed to:

1. Apply to all eligible present and future pensioners of the employer and their dependents;

2. Continue as long as the employer participates in the program;

3. Provide for local employer reimbursement of Federal Medicare charges for eligible pensioners and/or their spouses and partners, as well as the payment of health insurance charges required by the program, on a basis comparable to the reimbursement made by the State to its eligible pensioners and their spouses and partners in accordance with the provisions of P.L. 1972, c. 75 (see N.J.A.C. 17:9-5.5);

4. Require the local employer to pay all or some of the health benefits costs for retiree coverage if other conditions are met; P.L. 2011, c. 78, also requires local retirees who attain 25 years of service credit on or after June 28, 2011, to pay a percentage of the premium based on their retirement allowance; and

5. Provide for an effective date not earlier than the first day of the month at least 90 days following receipt of the local employer's resolution on forms approved by the Division.

(b) A local employer may also adopt an additional resolution designed to apply to all eligible pensioners and their dependents who retired on or after July 1, 1964, in accordance with the provisions of P.L. 1979, c. 54. Such resolution shall meet the prescriptions of (a) above.

(c) Under the provisions of P.L. 1981, c. 436, as amended, an educational or local employer may also adopt an additional resolution designed to apply the provision of P.L. 1974, c. 88 to surviving spouses and eligible partners of qualified retirees.

(d) Under the provisions of P.L. 1981, c. 436, as amended, an educational or local employer may also adopt an additional resolution designed to apply the provision of P.L. 1974, c. 88 to those former employees who retired since the employer adopted the provisions of the SHBP but who did not continue coverage because of the cost to the member.

(e) Under the provisions of P.L. 1999, c. 48 (N.J.S.A. 52:14-17.38), a participating local employer, excluding employers deemed to be covered by N.J.S.A. 52:14-17.28b or employees of school boards covered by N.J.S.A. 52:14-17.32f, 17.32f1 and 17.32f2 may by resolution adopt any of the age and service requirements found in N.J.S.A. 52:14-17.38 in determining eligibility to qualify for employer-paid post-retirement medical benefits. A participating local employer may also negotiate payment obligations with their employees for post-retirement medical benefits. The payment obligations of the participating local employer shall be the payment obligations applicable to the employee on the date the employee retires on a disability pension or the date the employee meets the retirement system service credit and employment service requirements for the employer payment of coverage as established by the resolution adopting the provisions of P.L. 1999, c. 48.

N.J. Admin. Code § 17:9-5.4

Amended by 48 N.J.R. 2387(a), effective 11/7/2016