Employees, except those covered by the provisions of a collective bargaining agreement or management contract, shall be eligible to receive medical, prescription and dental benefits as prescribed herein below. The Township currently participates in the NJDPB State Health Benefits Plan for medical and prescription. Any determinations issued by the NJDPB regarding federal or state legislation regarding eligibility that are in conflict with this article shall supersede this chapter.
A. 
Full time. All active full-time and permanent employees that work a regular schedule of more than 30 hours a week shall be eligible to receive medical, prescription and dental benefits.
B. 
Multiple positions. An employee holding multiple positions with the Township at the same time will be considered "full-time" for benefit eligibility if the employee satisfies the definitions of a full-time employee in any one of the positions held.
C. 
Open enrollment period. The month of October is the Township's open enrollment period when changes can be made to medical and other benefits, effective January 1 of the following calendar year. Changes outside this period must be under an approved life event.
D. 
Substantially similar. Medical, prescription drug coverage and dental plans offered shall be substantially similar to plans offered to other full-time employees covered under a contract.
E. 
Dental coverage. Beginning January 1, 2020, when an eligible employee enrolls in a dental plan offered by the Township, the Township shall contribute 50% annually towards the premium cost of the plan selected. There shall be no reimbursement for waiving coverage. Coverage shall be offered to eligible active employees only.
F. 
Vision. The Township does not offer or participate in an optical coverage plan.
G. 
Temporary disability insurance. The Township does not offer or participate in a short- or long-term disability insurance program, including plans offered by the New Jersey Department of Labor and Workforce Development. During open enrollment, an employee may elect to participate in a voluntary employee funded plan (e.g., Aflac, Colonial Life).
H. 
Health and prescription waiver.
(1) 
The Township offers a conditional opt-out, where employees may elect to waive their health and prescription benefit coverage, but only if they provide documentation of alternative health benefit coverage.
(2) 
If an employee opts out of coverage, due to coverage in a plan that is not associated with the State Health Benefits Plan, they will be eligible to receive a waiver payment.
(3) 
In such cases, an employee's waiver payment shall be 25% of the amount saved by the Township (calculated on the "base" health care plan they would have been eligible for) or $5,000, whichever is less, after the conclusion of the waived year of coverage.
(4) 
During the annual renewal period for changes in coverage, an employee must waive benefits for each calendar year.
(5) 
If an employee only completes a portion of the calendar year in the year of a waiver, he or she shall only qualify for a prorated share of the waived benefit.
(6) 
If an employee experiences any emergent event which discontinues his or her coverage in a plan not associated with the State Health Benefits Plan, he or she may rejoin the Township's plan, if and as provided by the plan.
(7) 
It shall be the responsibility of the employee to consult with their financial advisor as to any IRS or Affordable Care Act reporting or tax implications when selecting a plan or waiving coverage.
I. 
Employee contribution.
(1) 
In accordance with the previous Chapter 78, P.L. 2011, regarding health-care contributions, an employee's premium contribution shall be based on the "Year 4" period contribution schedule, as cited in the legislation.
(2) 
The Township will pay the employer's obligation cost of said plans, subject to the employee premium contributions, which are shown hereinbelow.
(3) 
An employee's contribution used toward their premium expense for health coverage shall not be less than 1.5% of the employee's base salary.
(4) 
The contribution amount shall be made via payroll deductions, divided over a twenty-four-pay cycle, leaving two "free" pay periods a year.
(5) 
When an active employee is on an approved unpaid leave of absence; the employee may elect to extend coverage, for a maximum of nine months, by making arrangements for prepayment of contributions due, including rate changes. Continued contribution shall be based on an employee's pre-leave salary. It shall be the employee's sole responsibility to make continued payments while on leave in accordance with previous P.L. 2011, c. 78, and guidelines under NJDPB Fact Sheet #30.
(6) 
When an active employee is on an approved unpaid leave of absence for reasons other than illness, continued coverage and eligibility shall be based on guidelines issued by the NJDPB (i.e., FLA, furlough, suspension, NJSAFE, military).
Salary Range or Pension Allowance for Active Employees
Single Coverage
Parent/Child or Emp/Sp/Prtnr Coverage
Family Coverage
Less than $20,000
4.5%
3.5%
3.0%
$20,000 to $24,999.99
5.5%
3.5%
3.0%
$25,000 to $29,999.99
7.5%
4.5%
4.0%
$30,000 to $34,999.99
10.0%
6.0%
5.0%
$35,000 to $39,999.99
11.0%
7.0%
6.0%
$40,000 to $44,999.99
12.0%
8.0%
7.0%
$45,000 to $49,999.99
14.0%
10.0%
9.0%
$50,000 to $54,999.99
20.0%
15.0%
12.0%
$55,000 to $59,999.99
23.0%
17.0%
14.0%
$60,000 to $64,999.99
27.0%
21.0%
17.0%
$65,000 to $69,999.99
29.0%
23.0%
19.0%
$70,000 to $74,999.99
32.0%
26.0%
22.0%
$75,000 to $79,999.99
33.0%
27.0%
23.0%
$80,000 to $84,999.99
34.0%
28.0%
24.0%
$85,000 to $89,999.99
34.0%
30.0%
26.0%
$90,000 to $94,999.99
34.0%
30.0%
28.0%
$95,000 to $99,999.99
35.0%
30.0%
29.0%
$100,000 to $109,999.99
35.0%
35.0%
32.0%
$110,000 and over
35.0%
35.0%
35.0%
J. 
High-deductible health care plan. When an active employee enrolls in a high-deductible plan, currently AETNA4000 or NJDIRECT4000, in 2020 or thereafter, the Township will reduce the employee's mandated percentage contribution specified in the chart by 50% of the amount shown for each full year the employee remains in the high-deductible plan.
K. 
Health savings account (HSA). For active employees who enroll and remain in a high-deductible plan, and have established an HSA, the Township will contribute $1,000 into the employee's HSA, to be used by the employee toward eligible medical expenses. The maximum amounts and use of the health savings account will be as permitted under federal Internal Revenue Service regulations.
L. 
Medical benefits in retirement.
(1) 
Beginning July 1, 2019, employees who 1) retire from the Township on an approved disability retirement, or 2) had 20 or more years of service credit by June 28, 2011, or 3) have 25 or more years of service credit, have met the required number service years with the Township per the schedule hereinbelow. Employees that were eligible for medical benefits until their retirement date, and meet the eligibility requirements under the State Health Benefits Program, will be eligible to enroll in a benefit plan under the SHBP when retiring from the Township, pursuant the current Chapter 48 municipal resolution adopted in accordance with N.J.S.A. 52:14-17.38.
(2) 
Eligible employees must enroll in a plan, offered to other retired employees covered by a collective bargaining agreement, with the Township's health-care provider (SHBP).
(3) 
An employee shall be required to pay a percentage of the premium for the plan they selected, based on their annual pension allowance per the following schedule:
Annual Retirement Allowance Range
Single Coverage
Parent/Child or Emp/Sp/Prtnr Coverage
Family Coverage
Less than $20,000
4.5%
3.5%
3.0%
$20,000 to $24,999.99
5.5%
3.5%
3.0%
$25,000 to $29,999.99
7.5%
4.5%
4.0%
$30,000 to $34,999.99
10.0%
6.0%
5.0%
$35,000 to $39,999.99
11.0%
7.0%
6.0%
$40,000 to $44,999.99
12.0%
8.0%
7.0%
$45,000 to $49,999.99
14.0%
10.0%
9.0%
$50,000 to $54,999.99
20.0%
15.0%
12.0%
$55,000 to $59,999.99
23.0%
17.0%
14.0%
$60,000 to $64,999.99
27.0%
21.0%
17.0%
$65,000 to $69,999.99
29.0%
23.0%
19.0%
$70,000 to $74,999.99
32.0%
26.0%
22.0%
$75,000 to $79,999.99
33.0%
27.0%
23.0%
$80,000 to $84,999.99
34.0%
28.0%
24.0%
$85,000 to $89,999.99
34.0%
30.0%
26.0%
$90,000 to $94,999.99
34.0%
30.0%
28.0%
$95,000 to $99,999.99
35.0%
30.0%
29.0%
$100,000 to $109,999.99
35.0%
35.0%
32.0%
$110,000 and over
35.0%
35.0%
35.0%
(4) 
An employee's contribution used toward the premium expense for health coverage shall not be less than 1.5% of the employee's pension allowance.
(5) 
The Township shall contribute towards benefits to a retired employee and their eligible dependents until the retired employee is no longer eligible to participate under the SHBP due to the employee's Medicare eligibility, approval of a social security disability, is deceased or any other scenario where coverage is terminated under SHBP guidelines, at which time Township contributions toward retirement health benefits will cease.
(6) 
The Township shall not contribute towards any continued dependent coverage once the retired employee is no longer eligible to participate under the SHBP.
(7) 
The Township shall not contribute towards dental benefits in retirement.
(8) 
The date ranges for eligibility are provided on the chart as follows:
Nonunion Employees - Excluding administrative/appointed titles cited below. Eligibility requirements on the chart identify, by age, the required number of years the employee must have been employed with the Township.
Age
Yrs w/Twp
Age
Yrs w/Twp
55
25
61
19
56
24
62
18
57
23
63
17
58
22
64
16
59
21
65
15
60
20
Nonunion Administrative/Appointed Employees - Business Administrator, Chief Financial Officer, Municipal Clerk, Municipal Court Administrator, Municipal Department Head, Superintendent, Director of Public Safety, Deputy Chief of Police, Qualified Purchasing Agent, Tax Collector, Tax Assessor or position covered under a Management Agreement. Eligibility requirements on the chart identify, by age, the required number of years the employee must have been employed with the Township.
Age
Yrs w/Twp
Age
Yrs w/Twp
55
15
61
9
56
14
62
8
57
13
63
7
58
12
64
6
59
11
65
5
60
10
The following tax-advantage accounts regulated by federal IRS guidelines are available to eligible employees. If there shall be any contribution offered by the employer towards an HSA or HRA plan, it will be announced annually by the Mayor and/or Business Administrator or by Council resolution.
A. 
FSA. The Township has established a flexible spending arrangement (FSA) that is available on a voluntary basis to eligible employees. An employee may participate by funding a tax-advantaged account that can be used to receive reimbursement towards health-care expenses, including medical, prescription, vision, and dental expenses. Enrollment into a dependent care plan is also available. When an employee participates in an FSA, the Township shall be responsible for paying any administrative fees associated with the plan.
B. 
HSA. A Health Savings Account is an employee tax-advantaged account that may be funded by both the Township and the employee. Plans are available to eligible employees enrolled in a qualifying high-deductible health-care plan. The account can be used to pay for IRS-defined health care expenses, including long-term care and certain premium costs.
C. 
HRA. A health reimbursement arrangement is an employer-funded account that may be used by an employee for eligible medical, dental and vision expenses.