Sponsored by:
Senator ANDREW ZWICKER
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Senator JAMES BEACH
District 6 (Burlington and Camden)
Co-Sponsored by:
Senators Cunningham, Diegnan and Johnson
SYNOPSIS
Establishes fringe benefit rate for State colleges and universities.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing a fringe benefit rate for State colleges and universities and supplementing Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Beginning with the State fiscal year 2024 and each fiscal year thereafter, the Director of the Division of Budget and Accounting in the Department of the Treasury shall establish a separate fringe benefit rate for State colleges and universities. The separate fringe benefit rate shall reflect the actual cost of employee retirement programs at those colleges and universities, and shall be applied to all federal, dedicated, and non-State funded programs.
2. This act shall take effect immediately.
STATEMENT
This bill directs the Division of Budget and Accounting, now also known as the Office of Management and Budget, in the Department of the Treasury to establish a fringe rate for the State’s public colleges and universities that reflects the actual cost of employee fringe benefits.
Currently, the fringe rate used is not specific to employees at the State’s public colleges and universities, but to State employees in general. This can cause inequities as many State employees are enrolled in the Public Employees’ Retirement System (PERS), while many of the employees employed by State public colleges and universities as enrolled in the Alternative Benefit Plan (ABP).