SENATE EDUCATION COMMITTEE

STATEMENT TO

SENATE, No. 4223

STATE OF NEW JERSEY

DATED:  MARCH 17, 2025

     The Senate Education Committee favorably reports Senate Bill No. 4223.

     This bill permits members of the Teachers’ Pension and Annuity Fund (TPAF) and Public Employees’ Retirement System (PERS), or long term disability insurance recipients who are disabled and receiving TPAF or PERS disability insurance benefits, to be entitled to health care benefits under the School Employees’ Health Benefits Program (SEHBP) and State Health Benefits Program (SHBP) in the same manner as it is provided to retirees of the TPAF and PERS retirement systems who receive health insurance under the SEHBP and SHBP, except that these health care benefits are to be free and not require employee contributions.

      The bill provides that there is no deadline for disability insurance recipients to enroll in coverage and no eligibility requirements imposed to receive coverage, other than the member being required to be a recipient of disability insurance under TPAF or PERS.

      The bill also specifies that health benefits are not to be considered as benefits that reduce the amount that disabled TPAF or PERS members would receive in disability benefits and, for pension purposes, the member is to be considered as if the member was in active service for the duration of the time the disability benefit is received.