On Thursday, the Senate State Government, Wagering, Tourism & Historic Preservation Committee favorably reported S-3838 and the Assembly Appropriations Committee advanced A-4999 to give the Director of the Division of Pensions and Benefits the authority to loan funds from the State Health Benefits Program (SHBP) - State Employee Fund to the SHBP Local Government Employee Fund to mitigate an imminent cash flow challenges. This legislation, which was only introduced in the last week, was amended to allow the transfer of funds to be repaid without interest. S-3838 has been added to the October 28 Board List and it is anticipated that A-4999 will be considered during the October 28 Assembly session.
The League is grateful to the sponsors, Senator President Scutari and Assembly Speaker Coughlin, their staff, and the Division of Pensions and Benefits for working with us to improve this legislation, including the removal of the interest payment.
As we have raised repeatedly over the past few years, the significant rate increases approved by the State Health Benefits Commission for Plan Years 2023, 2024, and 2025, combined with significant healthy member attrition to the private and Health Insurance Fund markets has put the SHBP Local Government Employee fund in a difficult position that will require significant structural changes going forward so it will remain solvent. We look forward to working with the State Treasurer and Division of Pensions and Benefits on viable solutions to address the structural issues of the SHBP Local Government Employee fund.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.