HEALTH BENEFITS INCREASES Late yesterday, AON released its “Plan Year 2024 Rate Setting Recommendation Analysis” for local governments participating in the State Health Benefits Program (SHBP), which includes a total premium rate change increase of 7.4% as follows: “The recommended rate change for Local Government Actives is a 7% increase for medical and a 19.9% increase for the prescription drug premium rates, for a total increase of 7.3%. The recommended rate change for Local Government Early Retirees is a 2% increase for medical and a 20.8% increase for the prescription drug prem...

PROHIBITION OF PRIVATIZATION CONTRACTS On June 15th, NJAC testified before the Assembly Labor Committee in opposition to A- 5430 ((Reynolds-Jackson D-15/Wimberly D-35), which would establish procedures and standards concerning public services privatization contracts. NJAC is primarily concerned with the fact that this legislation would effectively prohibit the use of privatization contracts by requiring county governments to pay new employees’ wages and benefits at a rate not less than the wages and benefits paid to displaced employees. As noted below, counties enter into privatization contr...

PFRS BENEFIT ENHANCEMENT On May 15th, Governor Murphy conditionally vetoed S-3090 (Gopal D-11/Lagana D- 38)(DeAngelo D-14), which would provide for a retirement allowance after 20 years of service regardless of age for members of the Police and Firemen’s Retirement System (PFRS). NJAC along with the New Jersey State League of Municipalities (NJLM) and the Government Finance Officers Association of New Jersey (GFOA) oppose this legislation and appreciate the Governor taking steps to protect the long-term health and viability of the pension system. The Governor’s conditional veto states in part...

Earlier this week, NJAC testified before the Senate Budget and Appropriations Committee concerning Governor Murphy’s proposed Fiscal Year 2024 State Budget where the Association noted its support for full funding of the State’s retirement systems along with monies to offset health benefit premium increases imposed on local governments participating in the State Health Benefit Program (SHBP) and 911 funding for all 21 counties. HEALTH BENEFITS The Association contends that the $200.0 million in federal pandemic relief funds included in the Governor’s proposed budget and intended to mitigate t...

PFRS BENEFIT ENHANCEMENT On March 20th, NJAC, the New Jersey State League of Municipalities (NJLM), and the Government Finance Officers Association of New Jersey (GFOA) testified in opposition to S- 3090/A-4498 (Gopal D-11/Lagana D-38)(DeAngelo D014) before the Senate Budget and Appropriations and Assembly State and Local Government committees. In summary, this legislation would provide for a retirement allowance after 20 years of service regardless of age for members of the Police and Firemen’s Retirement System (PFRS). NJAC is primarily concerned with the facts that this legislation would ...

HEALTH BENEFIT INCREASES In light of the fact that the Administration and State Legislature have yet to agree on providing any immediate financial relief or long-term structural reforms to address the 24% increase in health benefit expenses imposed by the State Health Benefits Program (SHBP), NJAC is exploring the possibility of establishing county health insurance funds in the northern, central, and southern regions of the State as permitted under current law. According to information shared by PERMA Risk Management Services, the advantages of health insurance funds include: the ownership a...

HEALTH BENEFIT INCREASES Earlier this month, NJAC, the New Jersey State League of Municipalities (NJLM), the New Jersey Conference of Mayors (NJCM), the AFL-CIO, the CWA, the PBA, and more, joined forces in an unprecedented coalition of management and labor to make fair and equitable recommendations that would have mitigated the staggering health benefit rate increases approved by the State Health Benefits Commission (SHBC). In addition to providing immediate financial relief to property taxpayers, local governments, and public employees already struggling to make ends meet, the reasonable an...

CIVIL SERVICE REFORMS NJAC and county officials from across the State certainly appreciate the original intent of the protections afforded public sector workers under the State’s civil service system; however, the Civil Service Commission (CSC) has transformed into an overly burdensome and outdated bureaucracy that prevents the effective and efficient operation of government. With additional details to follow shortly, the rules, regulations, and directives imposed on local governments as employers by CSC present enormous challenges in the hiring, promoting, transferring, and disciplining of p...

HEALTH BENEFIT INCREASES Earlier this month, NJAC and the New Jersey State League of Municipalities (NJLM) met with Administration officials to discuss the September 13th decision of the State Health Benefits Committee (SHBC) to approve unprecedented health benefit insurance rate hikes of up to 24% for local governments participating in the State Health Benefits Program (SHBP). Although we appreciate the meeting, NJAC is urging the Administration to use American Rescue Plan Act (ARPA) monies or other unrestricted reserve or surplus funds to temporarily offset the extraordinary increases as t...

HEALTH BENEFIT INCREASES On September 14th by telephone conference, the State Health Benefits Committee (SHBC) summarily approved unprecedented health benefit insurance rate hikes for local governments participating in the State Health Benefits Program (SHBP) by a vote of 3-1-1 with an overview of the outrageous increases summarized below. The recommended rate change for Local Government Actives is a 0% increase for medical and a 3.7% increase for the prescription drug premium rates, for a total increase of 21.6%. The recommend rate change for Local Government Early Retirees is a 6%...