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Certifying Officer Letters 2002
December 18, 2002 TO:
Public Employees’ Retirement System Certifying Officer, FROM:
Janice C. Curtin SUBJECT: Prosecutors Part Benefit Employee Contribution Rate The Board of Trustees of the Public Employees’ Retirement System (PERS) established, at their meeting on December 18, 2002, the employee contribution rate for members of the Prosecutors Part of the PERS at 7.5% of pensionable salary. We are making arrangements with Centralized Payroll to change pension deductions for your employees in the Prosecutors Part of the PERS from 3% to 7.5% effective Pay Period 2 of 2003. Please note that, because of the enhanced benefit, prosecutors will pay the full established rate; there is no reduction of 2% from this rate. This situation is similar to other groups in the PERS with special benefits who pay the full, established rate, e.g., the Legislative and Workers’ Compensation Judge groups. The new rate for the Prosecutors Part of the PERS is retroactive to the later of either Pay Period 2 of 2002 or the date of the member’s appointment to a position covered by the Prosecutors Part of the PERS. Therefore, a shortage exists in member accounts equal to the difference between the 3% rate that was collected and the new 7.5% rate. The lump sum owed for the rate shortage will be billed as back deductions and the schedule will be collected over 52 biweekly payments without interest. The Division will be sending a Certification of Payroll Deductions to you in late February or early March for these individuals, with back deductions to start in May, 2003. Each Certification will list the lump sum amount owed to pay off the shortage. If members wish to pay the amount owed in a lump sum, they should work through their Personnel Office. The Personnel Office should then contact Charlie D’Angelo of Special Case Processing and Adjustments at (609) 292-4280 to get an updated payoff figure and date of payment. (Please do not disseminate this telephone number to employees; it is only for use of Personnel Officers). If the member wishes to have the payment schedule extended beyond 52 pay periods, the member must write to the Adjustments Section of the Division and include justification for the request. Any payment schedules beyond 52 pay periods will be scheduled with interest at the rate of 8.75%. Attached is a letter that you should reproduce and provide to each of your Prosecutor Part members. It notifies them of the establishment of the new Prosecutor Part rate and explains how the additional contributions due since January 2002 will be collected. You need not communicate with retired Prosecutors Part members as the Division will contact them directly about this matter. BACKGROUND: Chapter 366, P.L. 2002, which was enacted on January 7, 2002, established the Prosecutors Part within the PERS. This law provided significantly enhanced retirement benefits to employees in designated prosecutor positions at the County and State levels. The designated positions for State employees included the Director of the Division of Criminal Justice, any assistant director, deputy director, assistant attorney general, and deputy attorney general employed by the Department of Law and Public Safety and assigned to the Division of Criminal Justice. Criminal Investigators assigned to the Division of Criminal Justice who are ineligible for membership in the Police and Firemen’s Retirement System are also eligible for the Prosecutors Part of the PERS. The law also provided for a higher employee contribution rate and required the PERS Board of Trustees to establish that rate. If you have any questions about this issue, please contact the Office of Client Services at (609) 292-7524. We will be contacting you later this month with more information on the administration of the Prosecutors Part of the PERS. attachment December 18, 2002 TO: Public Employees’ Retirement System County Certifying Officers FROM:
Janice C. Curtin SUBJECT: Prosecutors Part Benefit Employee Contribution Rate The Board of Trustees of the Public Employees’ Retirement System (PERS) established, at their meeting on December 18, 2002, the employee contribution rate for members of the Prosecutors Part of the PERS at 7.5% of pensionable salary. You should change pension deductions for your employees in the Prosecutors Part of the PERS from 3% to 7.5% effective January 1, 2003. If it is too late to affect deductions for the first pay period in January, start taking the new rate as soon as possible and make whatever adjustments are necessary to collect and report the correct amount of pension deductions for the first quarter of 2003 before the end of the quarter. Please note that because of the enhanced benefit, prosecutors will pay the full established rate; there is no reduction of 2% from this rate. This situation is similar to other groups in the PERS with special benefits who pay the full, established rate, e.g., the Legislative and Workers’ Compensation Judge groups. The new rate for the Prosecutors Part of the PERS is retroactive to the later of either January 2002 or the date of the member’s appointment to a position covered by the Prosecutors Part of the PERS. Therefore, a shortage exists in member accounts equal to the difference between the 3% rate that was collected and the new 7.5% rate. The lump sum owed for this rate shortage will be billed as back deductions and the schedule will be collected over 24 monthly payments without interest. The Division will be sending a Certification of Payroll Deductions to you in late February or early March for these individuals, with the back deductions to start in May, 2003. Each Certification will list the lump sum amount owed to pay off the shortage. If the member wishes to pay the amount owed in a lump sum, the member must make arrangements with you (the employer) and you can remit payment through Transmittal Electronic Payment System (TEPS) and report the payment on the Report of Contributions (ROC). The check cannot come directly from the member to the Division of Pensions and Benefits. If the member wishes to have the payment schedule extended beyond two years, the member must write to the Adjustment Section of the Division and include justification for the request. Any payment schedules beyond two years will be scheduled with interest at the rate of 8.75%. Attached is a letter that you should reproduce and provide to each of your Prosecutor Part members. It notifies them of the establishment of the new Prosecutor Part rate and explains how the additional contributions due since January 2002 will be collected. You need not communicate with retired Prosecutors Part members as the Division will contact them directly about this matter. BACKGROUND: Chapter 366, P.L. 2002, which was enacted on January 7, 2002, established the Prosecutors Part within the PERS. This law provided significantly enhanced retirement benefits to employees in designated prosecutor positions at the County and State levels. The designated positions for County employees included the county prosecutor, first assistant prosecutor, and assistant prosecutor. The law also provided for a higher employee contribution rate and required the PERS Board of Trustees to establish that rate. If you have any questions about this issue, please contact the Office of Client Services at (609) 292-7524. We will be contacting you early in January with more information on the administration of the Prosecutors Part of the PERS. attachment December 2002
TO:
Public Employees’ Retirement System FROM: Janice
C. Curtin SUBJECT: Prosecutors Part Benefit Employee Contribution Rate Chapter 366, P.L. 2002, which was enacted on January 7, 2002, established the Prosecutors Part within the Public Employees’ Retirement System (PERS). This law provides significantly enhanced retirement benefits to employees in designated prosecutor positions at the County and State levels. The law also provides for a higher employee contribution rate and requires the PERS Board of Trustees to establish the rate. The Board of Trustees of the PERS, at their meeting on December 18, 2002, established the employee contribution rate for members of the Prosecutors Part of the PERS at 7.5 percent of pensionable salary. As with the other PERS groups with enhanced benefits, e.g., legislative and Workers Compensation Judges, this contribution rate is not reduced by 2 percent like the regular PERS contribution rate. Your pension deduction will change from 3 percent to 7.5 percent, effective Pay Period 2 (January 17th pay date). The new rate for the Prosecutors Part of the PERS is retroactive to January 7, 2002, or the date of your appointment to a prosecutor position, whichever is later. Because commencement of pension deductions was delayed, additional pension contributions are owed for the retroactive period as indicated above. Normally the amount due would be scheduled through payroll deductions over a one-year repayment period. However, because of the financial impact of this increase, the amount owed will be collected over a two-year period with no interest being incurred during that time period. You can expect to receive a Certification of Payroll Deductions in late February or early March for the amount due with scheduled repayments beginning in May 2003. If you prefer to pay off the back deductions in a lump sum, you may do so. Further instructions regarding lump sum repayment will be included in the Certification. Within
the coming months, you will receive additional information regarding
your enhanced Prosecutor Part benefits and a statement of service
credit reflecting the amount of service credited to your account.
Your patience during program implementation is greatly appreciated. December 2002 TO: Public
Employees’ Retirement System FROM: Janice
C. Curtin SUBJECT: Prosecutors Part Benefit Employee Contribution Rate Chapter 366, P.L. 2002, which was enacted on January 7, 2002, established the Prosecutors Part within the Public Employees’ Retirement System (PERS). This law provides significantly enhanced retirement benefits to employees in designated prosecutor positions at the County and State levels. The law also provides for a higher employee contribution rate and requires the PERS Board of Trustees to establish the rate. The Board of Trustees of the PERS, at their meeting on December 18, 2002, established the employee contribution rate for members of the Prosecutors Part of the PERS at 7.5 percent of pensionable salary. As with the other PERS groups with enhanced benefits, e.g., legislative and Workers Compensation Judges, this contribution rate is not reduced by 2 percent like the regular PERS contribution rate. Your employer has been asked to change your pension deduction, effective January 1, 2003 from 3 percent to 7.5 percent. If it is too late to affect deductions for the first pay period in January, your employer will start making them as soon as practical and make whatever adjustments are necessary to collect and report the correct amount of pension deductions for the first quarter of 2003 before the end of the quarter. The new rate for the Prosecutors Part of the PERS is retroactive to January 2002 or the date of your appointment to a prosecutor position, whichever is later. Because commencement of pension deductions was delayed, additional pension contributions are owed for the retroactive period as indicated above. Normally the amount due would be scheduled through payroll deductions over a one-year repayment period. However, because of the financial impact of this increase, the amount owed will be collected over a two-year period with no interest being incurred during that time period. You can expect to receive a Certification of Payroll Deductions in mid-February for the amount due with scheduled repayments beginning in May 2003. If you prefer to pay off the back deductions in a lump sum, you may do so. Further instructions regarding lump sum repayment will be included in the Certification. Within the coming months, you will receive additional information regarding your enhanced Prosecutor Part benefits and a statement of service credit reflecting the amount of service credited to your account. Your patience during program implementation is greatly appreciated. December 2002 TO: State Health Benefits Program Participating Employers FROM: Florence
J. Sheppard SUBJECT: Health Insurance Portability and Accountability Act (HIPAA) Update The federal Health Insurance Portability and Accountability Act (HIPAA) of 1996 contained a number of provisions that affected the State Health Benefits Program (SHBP) and its participating employers. The SHBP implemented several actions to comply with the requirements of HIPAA. These actions included:
Since the mental health limitations currently in effect are detailed in the law governing the SHBP, a change in plan design would require legislative action. Therefore, the SHBP must file a mental health parity exemption each plan year as long as a group plan is not HIPAA compliant. The Commission has voted to file an exemption for 2003. Therefore, mental health benefits will remain unchanged through 2003 unless the statute governing the SHBP is amended. Since HIPAA has a continuing notification requirement, a revised compliance notice reflecting this exemption from federal mental health parity requirements is attached for your use with newly enrolling employees and family members. You should send it at the same time you send the initial notice of COBRA rights. If you have questions, contact Client Services at (609) 292-7524 or call the Employer’s SHBP Hotline at (609) 292-5353 and leave a message. A staff member will return your call on the next business day. encl. Notice
to State Health Benefits Program Participants This notice is being provided to inform you about State Health Benefits Program (SHBP) conformance with federal health insurance regulations. The Health Insurance Portability and Accountability Act (HIPAA), the Mental Health Parity Act, and the Newborns’ and Mothers’ Health Protection Act, federal laws enacted in 1996, contain a number of provisions that have affected the SHBP since January 1998. HIPAA required all group health plans to implement the following provisions that are contained in the three federal laws:
Since January 1, 1998, all SHBP plans have met or exceeded HIPAA requirements #1 through #4 above. SHBP HMOs also have complied with requirement #5 above. The State Health Benefits Commission has filed exemptions from HIPAA compliance on mental health parity (requirement #5) each year since 1998 for the Traditional Plan and NJ PLUS, as self-insured, non-federal governmental plans are permitted to do. The Commission has voted to continue that exemption through 2003. As a result, the mental health limits for the Traditional Plan and NJ PLUS that are described in the SHBP Summary Program Description and the Traditional Plan and NJ PLUS Member Handbooks will remain in effect throughout 2003. December 2002 TO:
Certifying
Officer: FROM: John
D. Megariotis SUBJECT: Report of Contributions, Fourth Quarter 2002 (October 1st to December 31st) This memorandum has pertinent information concerning the completion of your Report of Contributions. Please read this memorandum before you make any changes to the Report. DEADLINE FOR FILING
REPORTING PROCEDURES Through the Transmittal Electronic Payments System (TEPS), employers must submit monthly transmittal remittances of approximately 1/3 of the total quarterly amounts due for pension contributions, contributory life insurance premiums and regular SACT. Token payments are not acceptable. Your December 2002 transmittal remittance, which represents the deductions due for the balance of the quarter, should be made through TEPS. The portion of the remittance for total pension deductions should reflect the sum of normal pension contributions, back deductions, loan payments, and arrears/purchase deductions. The TEPS remittance is also due by January 10, 2003. With the Report of Contributions, you must complete and return the Transmittal Summary form for the 4th quarter 2002. This document is used to assist your office and this Division in reconciling your transmittal remittances to the quarterly Report. If your quarterly Report and total contributions are not received in a timely manner, we cannot update the pension accounts of your employees. This may adversely affect any claim for benefits, including loan applications, filed by your employees. Also, any delay affects our scheduling in posting contributions to all members’ accounts as well as the mailing of Reports of Contributions for the following quarter. Interest will be assessed, as prescribed by statute and administrative code, when monthly transmittal remittances and the quarterly Report of Contributions are not received within fifteen days of the due dates. When you receive your quarterly Report, you should review it immediately. If you think you will have a problem in meeting the filing deadline, or if there is anything you do not understand, contact the Audit/Billing Section at (609) 292-3630. Normally reporting inquiries can be resolved with a telephone call. Please make all necessary corrections to the Report before you return it to the Division of Pensions and Benefits. Verify that all changes are explained, the Report is added correctly, and the totals agree with the sum of the transmittal remittances. Please show on the quarterly Report the telephone number of the individual to be contacted if our auditors have questions concerning any items. SIGNATURE - Your quarterly Report of Contributions must be signed. Any Report not bearing a signature will be considered delinquent until an affidavit is submitted by the Certifying Authority attesting to its contents. Initials will not be accepted. CHANGE TO MEMBER PENSION RATES – TEACHERS’ PENSION AND ANNUITY FUND Chapter 133, P.L. 2001 reduced the member’s pension rate from 4.5% to 3% for members of the Teachers’ Pension and Annuity Fund. The pension rate for calendar year 2003 will remain at 3%. This is not a permanent change to the normal contribution rate of 5% of salary. The minimum repayment for pension loans and the minimum deduction for the purchase of service credit, which is based on the full 5% contribution rate, will not change. Retroactive increases paid on or after January 1, 2002 should be deducted at 3%, including any portion of the retroactive salary that covered a period prior to January 1, 2002. CHANGE TO MEMBER PENSION RATES - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Chapter 415, P.L. 1999 reduced the pension rate for members of the Public Employees’ Retirement System from 4.5% to 3%. The pension rate for calendar year 2003 will remain at 3%. Retroactive increases paid on or after January 1, 2000 should be deducted at 3%, including any portion of the retroactive salary that covered a period prior to January 1, 2000. Because the change is a temporary reduction, the minimum repayment for pension loans and the minimum deduction for the purchase of service credit will not change. The minimum deduction for the single payment value will continue to be computed on 5% of base salary. SACT TAX-SHELTERED ANNUITY – REMITTANCE OF 403(b) CONTRIBUTIONS, CHAPTER 247, P.L. 1999 Chapter 247, P.L. 1999 requires 403(b) salary reductions on behalf of an employee to be transmitted and credited within five business days from the pay date. Employees of local boards of education may participate in the SACT 403(b) program or a 403(b) plan administered by their employer. This law impacts both arrangements. Members of the Public Employees’ Retirement System, Teachers’ Pension and Annuity Fund and Police and Firemen’s Retirement System in the Supplemental Annuity (SACT) Tax Sheltered Annuity Program are required to have 403(b) salary reductions remitted to the Division of Pensions and Benefits within the timeframes prescribed by law. Contributions for these members will be made through the Transmittal Electronic Payments System (TEPS). REPORTING ACTUAL SALARIES FOR PART-TIME EMPLOYEES (Rule Change N.J.A.C. 17:2-4.7) The Public Employees’ Retirement System’s Board of Trustees at its November 17, 1999 meeting adopted a rule change for N.J.A.C. 17:2-4.7 that became effective on January 1, 2000. The amendment requires reporting districts to use the actual creditable salary earned by employees, not estimated salary, for part-time hourly, on-call and per diem employees. The enrollment criteria for part-time hourly, on-call, and per diem employees remains unchanged. However, once membership is established, an employee must only meet the $1,500 minimum salary regulation to continue membership; the number of hours worked in a month or a year is no longer applicable. This provides greater equity in granting service credit. A member is entitled to a month of service as long as the actual creditable salary being reported exceeds the monthly minimum for enrollment. In other words, when a 10-month member has a monthly reportable salary exceeding $150 (one tenth of $1,500), the member should be reported for that month. Similarly, $125 (one twelfth of $1,500) is the minimum monthly reportable salary for a 12-month member. If the member does not make $1,500 in the current calendar year, and is not expected to make $1,500 in the following year, that employee is no longer eligible for the retirement system. TEPS – TRANSMITTAL SHORTAGE PAYMENTS The Division sends transmittal shortage statements when the sum of the transmittal remittances does not equal the due figure on the quarterly Report of Contributions. Transmittal shortage statement payments can only be paid through TEPS. Checks received for payment of transmittal shortages will be returned. If you have questions related to TEPS, contact the TEPS Helpline at (888) 835-3345 or FAX your inquiries to the Audit/Billing Section at (609) 633-1708. CHANGING BANKING INFORMATION FOR TEPS Notice of Changes for TEPS should be submitted to the Division of Pensions and Benefits on or after the date that the new checking account becomes effective. Every Notice of Change is prenoted to ensure that the Division has the correct banking information. This normally takes 12 to 15 days. CHANGE TO BASE SALARY It is important to review the salary shown in column 6 and verify that it correctly reflects the member’s base salary for the quarter. If the salary shown is not correct, draw a line through it and write the correct salary above it. Pension Contributions, Contributory Insurance, SACT, and Tax-Sheltered Annuity deductions must be changed to reflect amounts due on the new salary. If your employees received a salary increase that is retroactive to a prior quarter, change column 6 to reflect the COMBINED TOTAL of: (a) the new base salary for the quarter, plus, (b) the additional base salary for the retroactive period. The new quarterly base salary should be written in column 1 of the Report. This salary will be projected in column 6 of your next quarterly Report. This will eliminate the need to make numerous changes on your 1st quarter Report of Contributions. Also, in the “Remarks Column” of the current Report you should indicate that the members had a salary increase and the effective date. REPORTING RETROACTIVE SALARY AFTER RETIREMENT If a member receives a retroactive salary adjustment after retirement, do not write the member’s name on the Report of Contributions. Complete a new Certification of Service and Final Salary and indicate that it is a retroactive adjustment after retirement by writing on the top of the Certification “Revised Due to Retro.” Deduct the pension contributions and contributory life insurance, if applicable, from the retroactive check and remit that amount on behalf of the member to the Audit/Billing Section of this Division. STATEMENTS OF OVERAGES/SHORTAGES Overages and shortages that affect a member’s Annuity Savings Fund identify whether or not the pension contributions are subject to the 414(h) provision. These statements should be reviewed to determine when adjustments are required to your payroll records in calculating year-to-date mandatory pension contributions under 414(h). All overage and shortage statements that cover a period prior to January 1, 1987 are not subject to the 414(h) provision. Please note that all member shortages are to be paid by separate check. Do not remit through TEPS. Should you have any questions or need assistance in completing the Report, please telephone us at (609) 292-3630. Enclosures:
December 2002 To:
Certifying Officer From:
John D. Megariotis Subject: Report of Salary Change Instructions The enclosed Report of Salary Change lists those members projected on your fourth quarter 2002 Report of Contributions. The list shows the membership number, member’s name, payment plan (10/12), and provides space to insert the base salary to be projected on the quarterly Report of Contributions for the first calendar quarter of 2003. Do not add members (new enrollments, transfers, employees returning from leave of absence) to this report, nor should you reflect a name change. You should insert only the member’s quarterly base salary, rounded to the nearest dollar for January, February, and March of 2003; this amount will be projected on the quarterly Report of Contributions for the first quarter of 2003. For example, if a member is paid over 12 months and has an annual salary of $25,642, you should show a salary of $6,411 to be projected for the first quarter 2003. Project only three full months of contractual base salary even if an employee will be on leave of absence or terminating employment. It has been our experience that employers reporting one or two months of salary on the Report of Salary Change have the correct base salary and contributions on the next quarterly Report of Contributions, but the months of service column is not changed to reflect the correct service credit. (A projection for the 3rd quarter to a 10 month member is the only situation when the salary projection would not be for 3 full months of base salary.) There is sometimes a delay in a municipality adopting its new budget, and although salary changes are effective January 1st, the retroactive increase is not paid until the second quarter. Under these circumstances, it is suggested that you forward the Report of Salary Change for the second quarter to this Division before May 15th with the new quarterly base salary for the second quarter plus the retroactive increase covering the first quarter. This should be one combined figure. In this case, you must denote on the first page of the projection sheet that this is a second quarter salary projection. In addition, you should request a Report of Salary Change for the third quarter to insert the quarterly base salaries for the third quarter Report of Contributions. If you follow this procedure, it will avoid numerous changes on your Report of Contributions, because the Division will project salaries and deductions for each quarter. The Division will furnish a Report of Salary Change for any quarter upon request. To avoid delays in submitting your Report of Contributions, it is recommended that you use the Report of Salary Change, rather than column 1 of the Report, whenever you have numerous salary projections. To process a Report of Salary Change, it must be returned to the Division of Pensions and Benefits by the 15th of the second month of a calendar quarter for the salaries to be projected for that quarter. To project
the salaries on your first quarter 2003 Report of Contributions,
the changes must be received no later than In Summary
November 2002 TO: Certifying Officers, FROM: Janice C. Curtin SUBJECT: Membership in ABP and PERS with the Same Employer N.J.S.A. 18A:66-170 prohibits a full-time employee, who is in the Alternate Benefit Program (ABP), to be enrolled concurrently in the Public Employees’ Retirement System (PERS) on the basis of other employment with the same employer. The ABP administrative code had contained language to implement this aspect of the statute, but it was inadvertently dropped from the last revision of the code. The Division recently adopted revised code for the ABP after posting it for public comment. This revised code reincorporates language (N.J.A.C. 17:7-2.3) that corrects the omission from the previous code. Employees are not permitted to be members, concurrently, in the ABP and the PERS based on employment with a single employer. They may, however, be enrolled in the ABP because of full-time employment in an ABP covered position with one employer, while concurrently being in the PERS based on employment in a PERS-covered position with a different employer. If you have employees enrolled in both the ABP and the PERS based on employment at your institution, you must stop taking deductions for PERS service before the end of this calendar year. No service or salary should be reported for these individuals for the PERS beyond the fourth quarter of 2002. The employees may retain their employment in these PERS-covered positions. However, they will receive no PERS credit and any salary earned for these positions will be considered as extra compensation for ABP purposes. Extra compensation is not subject to pension deductions. Employees in this situation who have a vested account, or who are currently participating in the PERS because of employment with a different employer, will be able to retain their credit for all previous PERS service. Affected employees who are not vested in the PERS, and who are not currently participating in the PERS because of employment with a different employer, will have two years before their accounts expire unless they obtain PERS-covered employment with a different employer. Attached for your use is a letter that can be provided to your affected employees that explains why their participation in the PERS, on the basis of employment at your institution, must cease. Please contact the Employer Group of the Division’s Office of Client Services at (609) 292-7524 if you have any questions regarding this matter. attachment: November 2002 Dear Alternate Benefit Program Member, You have been identified as being enrolled concurrently in the Alternate Benefit Program (ABP) and the Public Employees’ Retirement System (PERS) on the basis of employment in two different positions with the same employer. This situation is prohibited by the statute that governs the ABP, N.J.S.A. 18A:66-170. Therefore, your participation in the PERS on the basis of your employment with the same employer that provides your ABP membership must cease. Because you may have relied on your PERS membership for future plans, your PERS participation with your current employer will end prospectively. That is, it will be terminated by the end of the 4th quarter of this calendar year rather than being terminated retroactively to the date of the erroneous enrollment. You will be able to retain your credit for all previous PERS service in accordance with the following circumstances.
We regret that the provisions of the
law do not allow your continued participation in the PERS on the
basis of your employment with your current employer. If you have
questions about this, please speak with your campus Benefits Administrator
or Human Resource Office or you may write the Division of Pensions
and Benefits’ Office of Client Services at the address above, e-mail
to (Pension.NJ@treas.state.nj.us), or call us at (609) 292-7524. TO: Participating State Health Benefits Program Local Education Employers FROM: Florence
J. Sheppard SUBJECT: Local Group Open Enrollment – Local Education Employers The State Health Benefits Program (SHBP) Open Enrollment period for local education employees begins on October 1, and ends on October 31, 2002. Completed employer certified health benefit applications must arrive at the Health Benefits Bureau no later than November 8, 2002. Changes to coverage made during this open enrollment will be effective on January 1, 2003 for your employees. Medical trend rates continue to rise for employer-sponsored health plans. Beyond general inflation, some of the forces that are driving these increased healthcare costs can be attributed to increased consumer demand, prescription drug costs, medical advances, government mandates and rising provider expenses. The State Health Benefits Commission’s actuarial consultant, Milliman USA, reports that as a result of increasing trends over the last several years, the overall claims experience for the Local Education group has been worse than expected. Since the SHBP self-funds most of its plans, the claims experience used in projecting 2003 costs are based upon the actual claims experience of the group. The State Health Benefits Commission approved the recommended increases in order to ensure that the SHBP would have sufficient premium to cover the anticipated claims for the period. Health plan increases for the Local Education group are shown in the following chart:
The Employee Prescription Drug Plan increase of 10.5% is lower than industry trends of 17%-24%. The favorable increase is a result of lower than anticipated trend for this program, as well as projected additional savings resulting from the July 1, 2002 change in the prescription drug vendor to AdvancePCS. Enclosed you will find approved rates for SHBP health and prescription drug plans. We have included rate charts for employees with and without prescription drug coverage. The listed rates are effective January 1, 2003 through December 31, 2003. Also included with this letter are:
Also scheduled for distribution, at the start of the Open Enrollment, are revised copies of the SHBP Summary Program Description (SPD) and the SHBP Plan Comparison Chart. Due to time constraints and the fact that there are no benefits changes for active employees, the SHBP is not offering any Employer Regional Training Seminars for this Open Enrollment period. If you have questions about the Open Enrollment, contact the Division’s Office of Client Services at (609) 292-7524 or call the Employer Hotline at (609) 777-1082 and leave a message. A staff member will return your call on the next business day. Enclosures: 1. Health Plan Rate
Charts
September 2002 TO: Participating State Health Benefits Program Local Government Employers FROM: Florence
J. Sheppard SUBJECT: Local Group Open Enrollment – Government Employers The State Health Benefits Program (SHBP) Open Enrollment period for local government employees begins on October 1, and ends on October 31, 2002. Completed employer certified health benefit applications must arrive at the Health Benefits Bureau no later than November 8, 2002. Changes to coverage made during this open enrollment will be effective on January 1, 2003 for your employees. Medical trend rates continue to rise for employer-sponsored health plans. Beyond general inflation, some of the forces that are driving these increased healthcare costs can be attributed to increased consumer demand, prescription drug costs, medical advances, government mandates and rising provider expenses. The State Health Benefits Commission’s actuarial consultant, Milliman USA, reports that as a result of increasing trends over the last several years, the overall claims experience for the Local Government group has been worse than expected. Since the SHBP self-funds most of its plans, the claims experience used in projecting 2003 costs are based upon the actual claims experience of the group. The State Health Benefits Commission approved the recommended increases in order to ensure that the SHBP would have sufficient premiums to cover the anticipated claims for the period. Health plan increases for the Local Government group are shown in the following chart:
The Employee Prescription Drug Plan increase of 10.5% is lower than industry trends of 17%-24%. The favorable increase is a result of lower than anticipated trend for this program, as well as projected additional savings resulting from the July 1, 2002 change in prescription drug vendor to AdvancePCS. Enclosed you will find approved rates for SHBP health and prescription drug plans. We have included rate charts for employees with and without prescription drug coverage. The listed rates are effective January 1, 2003 through December 31, 2003. Also included with this letter are:
Also scheduled for distribution, at the start of the Open Enrollment, are revised copies of the SHBP Summary Program Description (SPD) and the SHBP Plan Comparison Chart. Due to time constraints and the fact that there are no benefits changes for active employees, the SHBP is not offering any Employer Regional Training Seminars for this Open Enrollment period. If you have questions about the Open Enrollment, contact Division’s Office of Client Services at (609) 292-7524 or call the Employer Hotline at (609) 777-1082 and leave a message. A staff member will return your call on the next business day. Enclosures: 1.
Health Plan Rate Charts TO: Campus Human Resource Directors FROM: Florence J. Sheppard SUBJECT: Fall 2002 State Health Benefits Program (SHBP) Open Enrollment The State Health Benefits Program (SHBP) Open Enrollment period for all State employees begins on October 1, and ends on October 31, 2002. Completed employer certified health benefit and/or dental applications must arrive at the Health Benefits Bureau no later than November 8, 2002. Changes to coverage made during this open enrollment will be effective on January 1, 2003 for your employees. Unions representing most State employees have contracts in effect that provide for premium sharing arrangements with the State. The contracts are identical with respect to their premium sharing provisions. There is no premium cost to any employee who enrolls in NJ PLUS. Employees will pay 5 percent of the premium cost if enrolled in an HMO, or 25 percent of the premium cost if enrolled in the Traditional Plan. These percentages apply regardless of salary level or date of hire. Enclosed you will find rate charts for your use, as well as a sample Open Enrollment announcement flier that provides a list of medical and dental plans and the premium sharing costs for your employees. This is a master copy tailored to your location that can be reproduced for distribution to your employees. This flier is designed to assist your employees in making informed decisions concerning their health care. Please distribute it to your employees prior to the start of the Open Enrollment. Also included with this letter are:
Also scheduled for distribution, at the start of the Open Enrollment, are revised copies of the SHBP Summary Program Description (SPD), SHBP Plan Comparison Chart, and the Employee Prescription Drug Plan Member Handbook. Due to time constraints and the fact that there are no benefits changes for active employees, the SHBP is not offering any State Employer Regional Training Seminars for this Open Enrollment period. Also now in progress is the State Employees Tax Savings Program (Tax$ave) Open Enrollment. Tax$ave is a benefit program, available to State employees who are eligible for the SHBP. Tax$ave can save your employees tax money by paying health benefit premiums and eligible unreimbursed medical and/or dependent care expenses from before-tax dollars. See the Tax$ave 2002 Open Enrollment materials (distributed earlier in September) for more information. If you have any questions about the Open Enrollment, please contact our Office of Client Services at (609) 292-7524. Thank you for your cooperation. Enclosures: 1. Health and Dental Plan Rate Charts/Fliers TO: State Monthly Human Resource Directors/Benefits Administrators FROM: Florence J. Sheppard SUBJECT: Fall 2002 State Health Benefits Program (SHBP) Open Enrollment The State Health Benefits Program (SHBP) Open Enrollment period for all State employees begins on October 1, and ends on October 31, 2002. Completed employer certified health benefit and/or dental applications must arrive at the Health Benefits Bureau no later than November 8, 2002. Changes to coverage made during this open enrollment will be effective on January 1, 2003 for your employees. Unions representing most State employees have contracts in effect that provide for premium sharing arrangements with the State. The contracts are identical with respect to their premium sharing provisions. There is no premium cost to any employee who enrolls in NJ PLUS. Employees will pay 5 percent of the premium cost if enrolled in an HMO, or 25 percent of the premium cost if enrolled in the Traditional Plan. These percentages apply regardless of salary level or date of hire. Enclosed you will find rate charts for your use, as well as sample Open Enrollment announcement fliers that provide a list of medical and dental plans and the premium sharing costs for State employees not paid through Centralized Payroll. These fliers are master copies that can be reproduced for distribution to your employees. The fliers are provided for three different payroll schedules (Monthly, 24 Pay Periods, and 26 Pay Periods). Choose the flier that corresponds to your payroll schedule. These fliers are designed to assist your employees in making informed decisions concerning their health care. Please distribute them to your employees prior to the start of the Open Enrollment. Also included with this letter are:
Also scheduled for distribution, at the start of the Open Enrollment, are revised copies of the SHBP Summary Program Description (SPD), SHBP Plan Comparison Chart, and the Employee Prescription Drug Plan Member Handbook. Due to time constraints and the fact that there are no benefits changes for active employees, the SHBP is not offering any State Employer Regional Training Seminars for this Open Enrollment period. Also now in progress is the State Employees Tax Savings Program (Tax$ave) Open Enrollment. Tax$ave is a benefit program, available to State employees who are eligible for the SHBP. Tax$ave can save your employees tax money by paying health benefit premiums and eligible unreimbursed medical and/or dependent care expenses from before-tax dollars. See the Tax$ave 2002 Open Enrollment materials (distributed earlier in September) for more information. If you have any questions about the Open Enrollment, please contact our Office of Client Services at (609) 292-7524. Thank you for your cooperation. Enclosures: 1. Health and Dental Plan Rate Charts/Fliers 2. Unified Provider Directory Flier
3. Health Capsule newsletter 4. Health/Dental Plan Marketing Contacts TO: State Departmental
Human Resource Directors FROM: Florence J. Sheppard SUBJECT: Fall 2002 State Health Benefits Program (SHBP) Open Enrollment The State Health Benefits Program (SHBP) Open Enrollment period for all State employees begins on October 1, and ends on October 31, 2002. Completed employer certified health benefit and/or dental applications must arrive at the Health Benefits Bureau no later than November 8, 2002. Changes to coverage made during this open enrollment will be effective on December 28, 2002 for State biweekly employees paid through the State Centralized Payroll Unit. Unions representing most State employees have contracts in effect that provide for premium sharing arrangements with the State. The contracts are identical with respect to their premium sharing provisions. There is no premium cost to any employee who enrolls in NJ PLUS. Employees will pay 5 percent of the premium cost if enrolled in an HMO, or 25 percent of the premium cost if enrolled in the Traditional Plan. These percentages apply regardless of salary level or date of hire. Enclosed you will find rate charts for your use, as well as a sample Open Enrollment announcement flier that provides a list of medical and dental plans and the premium sharing costs for your employees. This flier is designed to assist your employees in making informed decisions concerning their health care coverage during this open enrollment.
Also included with this letter are:
Also scheduled for distribution, at the start of the Open Enrollment, are revised copies of the SHBP Summary Program Description (SPD), SHBP Plan Comparison Chart, and the Employee Prescription Drug Plan Member Handbook. Due to time constraints and the fact that there are no benefits changes for active employees, the SHBP is not offering any State Employer Regional Training Seminars for this Open Enrollment period. Also now in progress is the State Employees Tax Savings Program (Tax$ave) Open Enrollment. Tax$ave is a benefit program, available to State employees who are eligible for the SHBP. Tax$ave can save your employees tax money by paying health benefit premiums and eligible unreimbursed medical and/or dependent care expenses from before-tax dollars. See the Tax$ave 2002 Open Enrollment materials (distributed September 13, 2002) for more information. If you have any questions about the Open Enrollment, please contact our Office of Client Services at (609) 292-7524. Thank you for your cooperation. Enclosures: 1. Health and Dental Plan Rate Charts/Flier
3. Health Capsule newsletter 4. Health/Dental Plan Marketing Contacts September 6, 2002 TO: State Department
Benefits Administrators FROM: William H. Kale SUBJECT: New Employee Long Term Care Insurance Orientation As you are aware, the special enrollment period for the State of New Jersey Long Term Care Insurance Plan (Plan) closed on June 14th. There was a high level of interest from employees and retirees with approximately 6,000 telephone calls, 1,300 e-mails, 17,000 web page hits, and 4,500 mail inquiries. Prudential mailed over 22,000 enrollment kits and received about 3,500 enrollment applications. Applications have been processed and payroll deductions have started for those employees who were enrolled. Prudential has sent the certificates of coverage to the individuals who have been approved for coverage. Your involvement in the marketing of the Plan, through the scheduling of educational seminars, distribution of literature, and referral of employees with questions to the experts at Prudential, was instrumental in the initial success we experienced. We thank you for your support. Now that the special open enrollment is behind us, we need to focus our efforts on establishing procedures to ensure that all newly hired employees are provided the opportunity to enroll in the State of New Jersey Long Term Care Insurance Plan. Every newly hired full-time employee has 90-days from the date of hire in which to apply for coverage using the short-form application, that is, without having to provide detailed evidence of insurability. In your benefits orientation for new hires, you should
Although the open enrollment is over, eligible employees can always apply for coverage at any time. Fulltime employees, who did not apply for the coverage during the open enrollment or during their first 90-days of employment with the State, and their eligible family members may apply for coverage at any time by completing a long-form application. This application requires the review and approval by Prudential’s underwriting department before coverage can take effect. All part-time, seasonal, intermittent and per diem employees and their family members may also apply for coverage at any time. If you have any questions about this program, contact Larry Lenahan from the Division of Pensions and Benefits at (609) 292-3648 or e–mail him at Lenahan_l@tre.state.nj.us. attachment August 21, 2002 TO: State Health Benefits
Program Participating Local Employers FROM: Florence J. Sheppard SUBJECT: SHBP Open Enrollment 2002 The State Health Benefits Program (SHBP) Open Enrollment period for local government and local Board of Education employees will begin on October 1, 2002 and end on October 31, 2002. Completed employer certified health benefit applications should be forwarded to the Health Benefits Bureau as soon as they are received from employees. (The last day that certified applications must arrive at the H |