[Added 4-19-2004 by Ord. No. 2004-4]
Any employee of the municipality who is eligible
for health benefits coverage by the municipality and is also eligible
for health benefits coverage as a dependent of the employee's spouse
under that plan or another plan, including the State Health Benefits
Program, offered by the spouse's employer, whether a public or private
employer, may waive coverage under the municipality's health benefits
plan.
A form of waiver shall be available from the
Municipal Clerk and, when completed, shall be filed with the Municipal
Clerk.
[Amended 12-5-2006 by Ord. No. 2006-20]
In consideration of an employee filing a waiver
of health benefits coverage provided by the municipality, the municipality
shall pay to the employee annually 50% of the current cost of the
health benefits plan that the employee would be entitled to receive
or $6,000, whichever is less.
Employees waiving coverage shall receive a monthly
payment representing 1/12 of the annual savings to the municipality,
as defined above, for the calendar year during which the waiver is
filed. If an employee's application for a waiver is received by the
Health Benefits Bureau of the State Division of Pensions and Benefits
by the fifth of any given month, the employee shall receive the first
monthly payment described above during the following month. All payments
made by the municipality to waiving employees shall be made through
the municipality's payroll system and subject to applicable guidelines
of the Internal Revenue Service.
An employee who waives coverage shall be permitted
to resume coverage under the same terms and conditions as apply to
initial coverage if the employee ceases to be covered through the
employee's spouse for any reason, including, but not limited to, the
retirement or death of the spouse or divorce. An employee who wishes
to resume coverage shall file a declaration, on such form as the municipality
shall prescribe, that the waiver is revoked. The employee must also
file a reinstatement application with the Health Benefits Bureau of
the State Division of Pensions and Benefits. If the reinstatement
application is filed within 60 days of spousal health coverage loss,
the coverage will be retroactive to the date of the loss of spousal
coverage. An employee who resumes coverage shall repay, on a pro-rata
basis, any amount received which represents an advance payment for
a period of time during which coverage is resumed. The repayments
shall be made within the remainder of the calendar year for which
coverage was previously waived by the resuming employee. The employee
resuming coverage shall meet with the Chief Financial Office of the
municipality to develop a repayment plan, which may include payroll
deductions, within 30 days of the municipality's receipt of confirmation
of the resuming employee's change in benefit status from the State
Division of Pensions and Benefits.
Pursuant to N.J.S.A. 40A:10-17.1, the decision
of the municipality to allow its employees to waive coverage and the
amount of consideration to be paid therefor shall not be subject to
the collective bargaining process.
The definition of employee in this article is
any employee, officer or official of the municipality who is eligible
for health benefits coverage by the municipality.
