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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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