A 3878

ASSEMBLY, No. 3878
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.