S3540

An Act concerning health care benefits for surviving spouses and children of certain members and retirees of the Police and Firemen’s Retirement System and State Police Retirement System and amending various parts of the statutory law.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 9 of P.L.1944, c.255 (C.43:16A-9) is amended to read as follows:

9. (1) Upon the receipt of proper proof of the death of a member in active service on account of which no accidental death benefit is payable under section 10 there shall be paid to such member's widow or widower a pension of 50% of final compensation for the use of himself or herself and children of the deceased member, to continue during his or her widowhood; if there is no surviving widow or widower or in the case the widow or widower dies or remarries, 20% of final compensation will be payable to one surviving child, 35% of final compensation to two surviving children in equal shares and if there be three or more children, 50% of final compensation will be payable to such children in equal shares.

In the event of death occurring in the first year of creditable service, the benefits, payable pursuant to this subsection, shall be computed at the annual rate of compensation.

If there is no widow or widower or child, 25% of final compensation will be payable to one surviving parent or 40% of final compensation will be payable to two surviving parents in equal shares.

(2) If there is no widow or widower, child or parent, there shall be paid to any other beneficiary of the deceased member his or her aggregate contributions at the time of death.

(3) In no case shall the death benefit provided in subsection (1) be less than that provided under subsection (2).

(4) In addition to the foregoing benefits payable under subsection (1) or (2), there shall also be paid in one sum to the member's beneficiary, an amount equal to 3 1/2 times final compensation.

(5) a. For the purposes of this section and section 10 (5), a member of the Police and Firemen's Retirement System shall be deemed to be an active member for a period of no more than 93 days while on official leave of absence without pay when such leave is due to any reason other than illness, and for a period of not more than one year in the event of an official leave (a) due to the member's maternity, or (b) to fulfill a residency requirement for an

advanced degree, or (c) as a full-time student at an institution of higher education, and (1) while he is disabled due to sickness or injury arising out of or in the course of his employment as a member to whom this act applies, is not engaged in any gainful occupation, and is receiving or entitled to receive periodic benefits (including any commutation of, or substitute for, such benefits) for loss of time on account of such disability under or by reason of workmen's compensation law, occupational disease law or similar legislation and has not retired or terminated his membership; or (2) for a period of no more than two years while on official leave of absence without pay if satisfactory evidence is presented to the retirement system that such leave of absence without pay is due to the member's personal illness other than an illness to which (1) above applies.

b. If a member dies within 30 days after the date of retirement or the date of board approval, whichever is later, a death benefit shall be payable only if he is deemed to be an active member in accordance with this section; provided, however, a member applying for disability benefits shall be deemed an active member if he was covered by the death benefit provisions of the act at the termination of employment, filed the application for disability retirement with the retirement system within 30 days following such termination of employment and dies within 30 days after the date of retirement or the date of board approval, whichever is later. If a member files an application for disability retirement while in service and otherwise meets the requirements for disability retirement, but dies before the retirement takes effect, the retirement shall be considered effective.

c. In addition to the foregoing benefits, the State shall pay to the member's employer-sponsored health insurance program all health insurance premiums for the coverage of the member's surviving widow or widower and surviving children while the surviving widow or widower remains eligible for the pension provided under this section, if (1) the member was a policeman member of the system, and (2) at the time of death, the member had a diagnosis from a health care provider of post-traumatic stress disorder and had symptoms or was undergoing treatment for the condition, as verified by the medical board of the system. This subsection shall apply to surviving widows or widowers who become eligible for the pension on or after the effective date of P.L. , c. (pending before the Legislature as this bill) and shall apply if the surviving widow or widower was eligible for or covered by the employer-sponsored health insurance program as a dependent of the member at the time of the member’s death.

(cf: P.L.1999, c.428, s.5)

2. Section 26 of P.L.1967, c.250 (C.43:16A-12.1) is amended to read as follows:

26. a. Upon the death after retirement of any member of the retirement system there shall be paid to the member's widow or widower a pension of 50% of final compensation for the use of herself or himself, to continue during her or his widowhood, plus 15% of such compensation payable to one surviving child or an additional 25% of such compensation to two or more children; if there is no surviving widow or widower or in case the widow or widower dies or remarries, 20% of final compensation will be payable to one surviving child, 35% of such compensation to two surviving children in equal shares and if there be three or more children, 50% of such compensation would be payable to such children in equal shares.

b. The increased pension benefits payable under this act shall apply only to cases where such policeman or fireman retires on or after December 18, 1967 and shall not affect pensions paid or to be paid as a result of retirements occurring prior to said date. The increased pension benefits payable under this subsection of this 1991 amendatory and supplementary act shall apply only to pension benefits payable on or after the effective date of this 1991 amendatory and supplementary act, P.L.1991, c.511 (C.43:3B-8.4 et al.).

c. As of the effective date of this 1991 amendatory and supplementary act, P.L.1991, c.511 (C.43:3B-8.4 et al.), all widows' and widowers' pensions previously granted or to be granted pursuant to the provisions of subsection a. of this section or section 10 of chapter 255 of the laws of 1944, as amended, and all such pensions previously granted, or to be granted where retirement for accidental disability occurred prior to December 18, 1967, pursuant to the provisions of section 7(3) of chapter 255 of the laws of 1944 prior to the amendment of that section by P.L.1967, c.250, will be subject to a minimum, annual, aggregate payment of $4,500. The increased pension benefits payable under this subsection of this 1991 amendatory and supplementary act shall apply only to pension benefits payable on or after the effective date of this 1991 amendatory and supplementary act, P.L.1991, c.511 (C.43:3B-8.4 et al.).

d. The State shall reimburse local governments for additional pension costs arising from any increase in the annual pension payable to a widow or widower pursuant to this section of this 1991 amendatory and supplementary act, P.L.1991, c.511 (C.43:3B-8.4 et al.).

e. In addition to the foregoing benefits, the State shall pay to the member's employer-sponsored health insurance program all health insurance premiums for the coverage of the member's surviving widow or widower and surviving children while the surviving widow or widower remains eligible for the pension provided under this section, if (1) the retired member was a policeman member of the system, and (2) at the time of death, the retired member had a diagnosis from a health care provider of post-traumatic stress disorder and had symptoms or was undergoing treatment for the condition, as verified by the medical board of the system. This subsection shall apply to surviving widows or widowers who become eligible for the pension on or after the effective date of P.L. , c. (pending before the Legislature as this bill) and shall apply if the surviving widow or widower was eligible for or covered by the employer-sponsored health insurance program as a dependent of the retired member at the time of the member’s death. Health care benefits coverage under section 1 of P.L.1997, c.330 (C.52:14-17.32j) shall be considered an employer-sponsored health insurance program for the purpose of this section.

(cf: P.L.1999, c.428, s.7)

3. Section 12 of P.L.1965, c.89 (C.53:5A-12) is amended to read as follows:

12. a. Upon the receipt of proper proofs of the death in active service of a member of the retirement system on account of which no accidental death benefit is payable, there shall be paid to the surviving spouse a pension of 50% of final compensation for the use of that spouse and children of the deceased, to continue for so long as the person qualifies as a "surviving spouse" for the purposes of this act; if there is no surviving spouse or in case the spouse dies or remarries, 20% of final compensation will be payable to one surviving child, 35% of final compensation to two surviving children in equal shares and if there be three or more children, 50% of final compensation will be payable to such children in equal shares.

In the event of death occurring in the first year of creditable service, the benefits, payable pursuant to this subsection, shall be computed at the annual rate of compensation.

If there is no surviving spouse or child, 25% of final compensation will be payable to one surviving parent or 40% of final compensation will be payable to two surviving parents in equal shares.

b. If there is no surviving spouse, child or parent, there shall be paid to any other beneficiary of the deceased member his aggregate contributions at the time of death.

c. In no case shall the death benefit provided in subsection a. be less than that provided under subsection b.

d. In addition to the foregoing benefits payable under subsection a. or b., there shall also be paid in one sum to the member's beneficiary, an amount equal to 3 1/2 times final compensation.

e. (Deleted by amendment. P.L.1971, c.181.)

f. (Deleted by amendment. P.L.1971, c.181.)

g. In addition to the foregoing benefits, the State shall pay to the member's employer-sponsored health insurance program all health insurance premiums for the coverage of the member's surviving spouse and surviving children while the surviving spouse remains eligible for the pension provided under this section, if, at the time of death, the member had a diagnosis from a health care provider of post-traumatic stress disorder and had symptoms or was undergoing treatment for the condition, as verified by the medical board of the system. This subsection shall apply to surviving spouses who become eligible for the pension on or after the effective date of P.L. , c. (pending before the Legislature as this bill) and shall apply if the surviving spouse was eligible for or covered by the employer-sponsored health insurance program as a dependent of the member at the time of the member’s death.

(cf: P.L.1985, c.355, s.2)

4. Section 25 of P.L.1965, c.89 (C.53:5A-25) is amended to read as follows:

25. a. Upon the death after retirement of a member of the retirement system, there shall be paid to the surviving spouse a pension of 50% of final compensation for the use of that spouse and children of the deceased, to continue for so long as the person qualifies as a "surviving spouse" for the purposes of this act; if there is no surviving spouse or in case the spouse dies or remarries 20% of final compensation will be payable to one surviving child, 35% of final compensation to two surviving children in equal shares and if there be three or more children, 50% of final compensation will be payable to such children in equal shares.

b. (Deleted by amendment. P.L.1980, c.55.)

c. In addition to the foregoing benefits, the State shall pay to the member's employer-sponsored health insurance program all health insurance premiums for the coverage of the retired member's surviving spouse and surviving children while the surviving spouse remains eligible for the pension provided under this section, if, at the time of death, the retired member had a diagnosis from a health care provider of post-traumatic stress disorder and had symptoms or was undergoing treatment for the condition, as verified by the medical board of the system. This subsection shall apply to surviving spouses who become eligible for the pension on or after the effective date of P.L. , c. (pending before the Legislature as this bill) and shall apply if the surviving spouse was eligible for or covered by the employer-sponsored health insurance program as a dependent of the retired member at the time of the member’s death.

(cf: P.L.1985, c.355, s.4)

5. This act shall take effect immediately.

STATEMENT

This bill requires the State to pay the total cost of the health care benefits premium for a surviving spouse and surviving children of a member of the Police and Firemen’s Retirement System (PFRS) and the State Police Retirement System (SPRS) when the member dies in service or when the member dies after retirement. The payments will be made by the State while the surviving spouse continues to be eligible for the pension provided to such surviving spouses under current law. That pension ends if the surviving spouse remarries.

This benefit would only apply if the member of the PFRS was a policeman during active service and if the member of the PFRS or SPRS had, at the time of death, a diagnosis from a health care provider of post-traumatic stress disorder and had symptoms or was undergoing treatment for the condition, as verified by the medical board of the PFRS or SPRS.

This benefit of State-paid premiums for health care benefits coverage is currently provided to surviving spouses of PFRS and SPRS when the member dies in the line of duty.