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May 25, 2012
Re: Employee Health Benefit Contribution Set to Increase in July
Dear Mayor:
The Pension and Health Benefit Reforms (P.L. 2011, c. 78) phased in employee’s contribution for both pension and health benefits. This July begins the Year 2 of phase in for employees, except those employees covered by a contract. For those employees covered by a contract, the second year phase in will begin on the calendar date of the second year. For example, a non-union employee would begin contributing at the Year 2 level in July. However, a union employee would begin contributing at the Year 2 level exactly one year after they began contributing towards Health Benefits.
As a reminder, the minimum contribution of employee is the greater of 1.5% of their base salary or the percentage of their premium.
The phase in schedule is as follows:
HEALTH BENEFITS CONTRIBUTION - SINGLE COVERAGE (PERCENTAGE OF PREMIUM)
|
Year 1
July 2011 to
June 2012 |
Year 2
July 2012 to
June 2013 |
Year 3
July 2013 to
June 2014 |
Year 4
July 2014 and
after |
less than 20,000 |
1.13% |
2.25% |
3.38% |
4.50% |
20,000 -24,999.99 |
1.38% |
2.75% |
4.13% |
5.50% |
25,000-29,999.99 |
1.88% |
3.75% |
5.63% |
7.50% |
30,000-34,999.99 |
2.50% |
5.00% |
7.50% |
10.00% |
35,000-39,999.99 |
2.75% |
5.50% |
8.25% |
11.00% |
40,000-44,999.99 |
3.00% |
6.00% |
9.00% |
12.00% |
45,000-49,999.99 |
3.50% |
7.00% |
10.50% |
14.00% |
50,000-54,999.99 |
5.00% |
10.00% |
15.00% |
20.00% |
55,000-59,999.99 |
5.75% |
11.50% |
17.25% |
23.00% |
60,000-64,999.99 |
6.75% |
13.50% |
20.25% |
27.00% |
65,000-69,999.99 |
7.25% |
14.50% |
21.75% |
29.00% |
70,000-74,999.99 |
8.00% |
16.00% |
24.00% |
32.00% |
75,000-79,999.99 |
8.25% |
16.50% |
24.75% |
33.00% |
80,000-94,999.99 |
8.50% |
17.00% |
25.50% |
34.00% |
95,000 and over |
8.75% |
17.50% |
26.25% |
35.00% |
HEALTH BENEFITS CONTRIBUTION - FAMILY COVERAGE (PERCENTAGE OF PREMIUM)
|
Year 1
July 2011 to June 2012 |
Year 2
July 2012 to June 2013 |
Year 3
July 2013 to June 2014 |
Year 4
July 2014 and after |
less than 25,000 |
0.75% |
1.50% |
2.25% |
3.00% |
25,000-29,999.99 |
1.00% |
2.00% |
3.00% |
4.00% |
30,000-34,999.99 |
1.25% |
2.50% |
3.75% |
5.00% |
35,000-39,999.99 |
1.50% |
3.00% |
4.50% |
6.00% |
40,000-44,999.99 |
1.75% |
3.50% |
5.25% |
7.00% |
45,000-49,999.99 |
2.25% |
4.50% |
6.75% |
9.00% |
50,000-54,999.99 |
3.00% |
6.00% |
9.00% |
12.00% |
55,000-59,999.99 |
3.50% |
7.00% |
10.50% |
14.00% |
60,000-64,999.99 |
4.25% |
8.50% |
12.75% |
17.00% |
65,000-69,999.99 |
4.75% |
9.50% |
14.25% |
19.00% |
70,000-74,999.99 |
5.50% |
11.00% |
16.50% |
22.00% |
75,000-79,999.99 |
5.75% |
11.50% |
17.25% |
23.00% |
80,000-84,999.99 |
6.00% |
12.00% |
18.00% |
24.00% |
85,000-89,999.99 |
6.50% |
13.00% |
19.50% |
26.00% |
90,000-94,999.99 |
7.00% |
14.00% |
21.00% |
28.00% |
95,000-99,999.99 |
7.25% |
14.50% |
21.75% |
29.00% |
100,000-109,999.99 |
8.00% |
16.00% |
24.00% |
32.00% |
110,000 and over |
8.75% |
17.50% |
26.25% |
35.00% |
HEALTH BENEFITS CONTRIBUTION - MEMBER/SPOUSE/PARTNER OR PARENT/CHILD COVERAGE (PERCENTAGE OF PREMIUM)
|
Year 1
July 2011 to June 2012 |
Year 2
July 2012 to June 2013 |
Year 3
July 2013 to June 2014 |
Year 4
July 2014 and after |
less than 25,000 |
0.88% |
1.75% |
2.63% |
3.50% |
25,000-29,999.99 |
1.13% |
2.25% |
3.38% |
4.50% |
30,000-34,999.99 |
1.50% |
3.00% |
4.50% |
6.00% |
35,000-39,999.99 |
1.75% |
3.50% |
5.25% |
7.00% |
40,000-44,999.99 |
2.00% |
4.00% |
6.00% |
8.00% |
45,000-49,999.99 |
2.50% |
5.00% |
7.50% |
10.00% |
50,000-54,999.99 |
3.75% |
7.50% |
11.25% |
15.00% |
55,000-59,999.99 |
4.25% |
8.50% |
12.75% |
17.00% |
60,000-64,999.99 |
5.25% |
10.50% |
15.75% |
21.00% |
65,000-69,999.99 |
5.75% |
11.50% |
17.25% |
23.00% |
70,000-74,999.99 |
6.50% |
13.00% |
19.50% |
26.00% |
75,000-79,999.99 |
6.75% |
13.50% |
20.25% |
27.00% |
80,000-84,999.99 |
7.00% |
14.00% |
21.00% |
28.00% |
85,000-99,999.99 |
7.50% |
15.00% |
22.50% |
30.00% |
100,000 and over |
8.75% |
17.50% |
26.25% |
35.00% |
For those employees in the State Health Benefits Program the Division of Pensions has created a “Percentage of Premium Calculators for Plan Year 2012”, which is available at http://www.state.nj.us/treasury/pensions/pdf/hb/ha0886-government12.pdf.
If you have any questions or need additional information please contact Lori Buckelew at lbuckelew@njslom.org.
Very truly yours,
William G. Dressel, Jr.
Executive Director
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