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.