STATE OF NEW JERSEY
222nd LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman CRAIG J. COUGHLIN
District 19 (Middlesex)
Co-Sponsored by:
Assemblywoman Speight
SYNOPSIS
Requires Division of Pensions and Benefits to provide report on available funds in local government part of SHBP prior to transferring funds from State part of SHBP; requires monthly reporting on certain assets in SHBP.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning the State Health Benefits Program and amending P.L.2024, c.86.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.2024, c.86 (C.52:14-17.42a) is amended to read as follows:
2. a. If the available funds in the health benefits funds established pursuant to sections 10 and 11 of P.L.1964, c.125 (C.52:14-17.41 and C.52:14-17.42) fall to a level that is insufficient to cover 10 days of anticipated payments from the fund, including, but not limited to, any portion of premiums, claims, and other periodic charges, provided that claims for medical, prescription, and dental expenses are based on an average over the past six months, then the Director of the Division of Pensions and Benefits may initiate a temporary transfer of available funds from the health benefits fund established pursuant to section 6 of P.L.1961, c.49 (C.52:14-17.30) to the health benefits funds established pursuant to sections 10 and 11 of P.L.1964, c.125 (C.52:14-17.41 and 52:14-17.42). The Director of the Division of Pensions and Benefits shall notify the commission [within 30 days of the transfer] and the State Treasurer on the 15th of each month in which a transfer pursuant to this subsection is made or anticipated. The amount transferred pursuant to this subsection shall not exceed the amount necessary to cover 30 days of anticipated payments from the fund, including, but not limited to, any portion of premiums, claims, and other periodic charges, provided that claims for medical, prescription, and dental expenses are based on an average over the past six months and any other anticipated payment or charge in the next 30 days. The amount transferred pursuant to this subsection shall be reimbursed from the health benefits fund established pursuant to section 11 of P.L.1964, c.125 (C.52:14-17.42) on or before the 120th day next following the date of the transfer unless the Director of the Division of Pensions and Benefits determines that an extension of the reimbursement date is necessary to ensure that sufficient funding is available to pay claims incurred by employees of employers other than the State and their dependents; provided, however, in no case shall the reimbursement date be extended for more than an additional 365 days.
b. [The] On the 30th day of each month, the Director of the Division of Pensions and Benefits shall provide to the State Treasurer [a monthly] and the commission an accounting of any transfers initiated in the prior 30 days pursuant to subsection a. of this section, the outstanding balances of all transfers initiated pursuant to subsection a. of this section, any repayments for past transfers received, and the current balance of the health benefits [fund] funds
established pursuant to [section] sections 10 and 11 of P.L.1964, c.125 (C.52:14-17.41 and C.52:14-17.42).
(cf: P.L.2024, c.86, s.2)
2. This act shall take effect immediately.
STATEMENT
This bill would make amendments to provisions of law adopted by P.L.2024, c.86, which permits the Director of the Division of Pension and Benefits to initiate a temporary transfer of funds under certain circumstances.
This bill would require the Division of Pensions and Benefits to report to the State Health Benefits Commission (SHBC) on the claims payable, available fund balance, and anticipated premiums for the local parts of the State Health Benefits Program (SHBP) prior to transferring funds from the State part of SHBP to such local parts.