Recent Legislative Changes- Pension Reform

Recent Legislative Changes - Pension Reform

This is the second in a series of communications regarding state legislative changes.

As many of you know, the recently enacted Chapter 78, P.L. 2011 (Health Benefits and Pension Reform), will significantly change provisions of the State Health Benefits Program (SHBP) and the state retirement systems.

 Upcoming Pension Benefit Changes

 ·      The Public Employees Retirement System (PERS) and Teachers Pension and Annuity Fund (TPAF) will see the employee contribution rate increase by 1% to 6.5% effective October 1, 2011, for the paycheck issued October 14, 2011.

 ·      The Police and Firefighters Retirement System (PFRS) employee pension contribution rate is being increased from 8.5% to 10% of salary on October 1, 2011 for the paycheck issued October 14, 2011. 

 ·      The legislation does not affect employees in Alternate Benefits Program (ABP).

 Health Benefits Changes

 A panel has undertaken work towards offering new health plans.  That work has not yet been completed.  As information on new plans is made available, we will share it with you immediately.

 Premium Calculator and Worksheet

 Twelve month employees:  The State has prepared a premium calculator and worksheet in order to assist you in determining your estimated health benefit contribution.  In using the calculator, the biweekly pay schedule should be referenced as it applicable to our University.

 http://www.state.nj.us/treasury/pensions/hb-percentage-home.shtml

 Ten month employees: The twelve months of coverage, to include July and August, will be spread over the ten month assignment of twenty-two pay periods.

 

All calculators use the SHBP plan rates effective January – December 2011

 

You may also wish to review our earlier communications about the changes to State health benefits, which can be found through these links:

 

Health Benefits Changes Article

http://www.montclair.edu/HR/news/article.php?ArticleID=8089&ChannelID=137

 Frequently Asked Questions

http://www.montclair.edu/HR/benefits/benefitlegislationfaqs.pdf

 Biweekly Premium Rates

http://www.montclair.edu/HR/benefits/biweeklypremiumrates.pdf

 Health Benefits Salary Bands

http://www.montclair.edu/HR/benefits/benefitsalarybands.pdf

 

As more information is made available it will be shared with you as well as forthcoming open enrollment links.  In the meanwhile, please don’t hesitate to contact Helen Caruso in the Office of Employee Benefits at 973-655-4394 or Patricia Kelly at 973-655-7141.