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Certifying Officer Letters 2006 See also: Archived EPIC E-Messages
Also available Archived E-Messages to Certifying Officers and EPIC Users.
December 2006
This memorandum has pertinent information concerning the completion of your Report of Contributions (ROC). Please read this memorandum before you make any changes to the ROC. Should you have any questions or need assistance in completing the Report, please refer to http://www.state.nj.us/treasury/pensions/epbam/finance/roc.htm DEADLINE FOR FILING UPDATE Due to the overwhelming popularity of the I-ROC program and the time saved in preparing the report of contributions, the Division can now move forward with an attempt to reach its goal of updating member accounts in a timely manner. To accomplish this goal, effective immediately, all reports must be received no later than the close of business on January 25, 2007. Reports received after this date may not be used to update member accounts. Delays in receiving reports affect the timeliness of the Division providing services to ALL pension plan members, not just your employees and retirees. Unfortunately, we continue to experience delays associated with employer late reporting. This new policy of strict adherence to established reporting deadline will alleviate that problem. When you receive your quarterly ROC, 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. If other arrangements need to be made to assist you in the completion of your ROC, the sooner you communicate that fact to the Division the better for everyone involved. Reports of Salary Change (***NEW***) The Division of Pension and Benefits is no longer providing to you reports of salary change as has been our past practice. Now that the majority of employers are reporting through the web, (I ROC), we are hoping that you would use the report of contributions to submit these salary changes for the next quarter. Should you need a paper report of salary change please call (609) 292-3630. This request should be made no later than February 1st, 2007, to allow for processing time. TEPS Please note that the only payments that should be submitted through TEPS are for monthly transmittal and appropriation payments. Employee shortages are not to be submitted through TEPS. The fax number and address that you use to submit the Employer Authorization Forms to the Division of Pensions and Benefits is (866) 568-2495 or it may be mailed to State of New Jersey, Department of Treasury, Division of Pensions and Benefits,P.O. Box 9581, Trenton, NJ 08650-9581. Most Retirement Plan Limits Increase for 2007 IRS has announced the 2007 cost-of-living adjustments (COLAs) for retirement plans. Many of the limits applicable to pension, and other retirement plans, increase for 2007. The following plan limits are increased for inflation effective January 1, 2007:
The following limit is unchanged:
December 2006
Notice To Delinquent Report Of Contribution Filers In the past I have written explaining the importance of all employers providing to the Division of Pensions and Benefits their quarterly Report of Contributions (ROC) in a timely fashion. As stated in the past, delays in receiving these reports affect the timeliness of the Division providing services to ALL pension plan members, not just your employees and retirees. Unfortunately, we continue to experience delays associated to employer late reporting. I must again ask for your help in avoiding these delays at all costs and remind you that the Division will utilize everything at its disposal in order to solicit timely reporting by the employers we work with to provide benefit services to the State’s public employees. Reporting And Payment Information Your 4th quarter 2006 tape ROC applicable to the Teachers’ Pension and Annuity Fund, Public Employees’ Retirement System, and Police and Firemen’s Retirement System is due by January 10, 2007 Your December, 2006 transmittal remittance, which represents the deductions due for the balance of the quarter, should be made through the Transmittal Electronic Payments System (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. Your TEPS remittance is also due by January 10, 2007. With the tape ROC, you must complete and return the Transmittal Summary form for the 4th quarter 2006. This document is used to assist your office and this Division in reconciling your transmittal remittances to the quarterly ROC. The Control and Certification form must also accompany your quarterly tape ROC. This is essential as it attests to the accuracy and validity of the submitted documentation. If your quarterly ROC 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 ROC for the following quarter. A tape ROC will be considered received when it is submitted in an acceptable format, passes all data processing edits, and can be used to update members’ accounts. Interest will be assessed, as prescribed by statute and administrative code, when monthly transmittal remittances and the quarterly ROC are not received within fifteen days of the due dates. Should you have any questions or need assistance in completing the Report, please refer to http://www.state.nj.us/treasury/pensions/epbam/finance/roc.htm. SACT Tax-Sheltered Annuity – Remittance Of 403(b) Contributions 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. 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). 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 ROC. 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 verified to ensure that the Division has the correct banking information. This normally takes 12 to 15 days. Statements Of Overages / Shortages Overage and shortage statements, which 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). Please note that all member shortages are to be paid by separate check. Do not remit through TEPS. Most Retirement Plan Limits Increase for 2007 IRS has announced the 2007 cost-of-living adjustments (COLAs) for retirement plans. Many of the limits applicable to pension, and other retirement plans, increase for 2007. The following plan limits are increased for inflation effective January 1, 2007:
The following limit is unchanged:
September 2006
The State Health Benefits Program (SHBP) Open Enrollment period for all State employees will begin on October 1, 2006 and end on October 31, 2006. All changes to coverage made during this open enrollment will be effective on January 6, 2007 for State biweekly employees paid through the State Centralized Payroll Unit. Completed employer-certified health benefit and/or dental applications should be forwarded to the Health Benefits Bureau as soon as they are received from employees. The last day that certified applications may arrive at the Health Benefits Bureau to be effective for the start of the new plan year is November 6, 2006. In keeping with its current policy, the SHBP will not provide health fairs during this years open enrollment period. RATES FOR 2007 The State Health Benefits Commission has approved new health, dental, and prescription drug plan rates for the 2007 plan year. These rates are based upon the recommendation of the Commissions actuarial consultant, Aon Consulting. Since the SHBP self-funds all of its medical plans, the claims experience used in projecting 2007 costs are based upon the actual claims experience of the group. Effective January 6, 2007, SHBP plan rates for the State Active Group, will see the following percentage of change:
PREMIUM SHARING The premium share arrangements remain unchanged. For those employees subject to premium sharing:
These percentages apply regardless of salary level or date of hire. COPAYMENT AMOUNTS FOR 2007 SHBP medical and prescription drug plan copayments for State Active Group members remain unchanged for the 2007 plan year and are listed below.
MEDICAL AND PRESCRIPTION DRUG PLAN CHANGES The plan changes that will effect State Active Group members are as follows:
RETIREE PRESCRIPTION DRUG PLAN INFORMATION In accordance with the provisions of the Retiree Prescription Drug Plan under NJ PLUS and the Traditional Plan, effective January 1, 2007, retail pharmacy copayments for a 30-day supply will increase to $8 for generic drugs; $17 for preferred brand name drugs; and $34 for all other brand name prescription drugs. The mail order copayments for a 90-day supply will increase to $8 for generic drugs, $25 for preferred brand name drugs, and $42 for all other brand name prescription drugs. Effective January 1, 2007, the annual maximum out-of-pocket for prescription drug copayments is $1,082 per person. Once a person has paid $1,082 in copayments, that person is no longer required to pay any prescription drug copayments for the remainder of that calendar year. OPEN ENROLLMENT INFORMATIONAL MATERIALS MILESTONES Enclosed is a milestone chart that lists the critical dates of the open enrollment period and outlines the efforts being made to educate employees. Please use this chart as a checklist to guide your activities during open enrollment. RATE CHARTS 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 period. On September 22, theopen enrollment announcement flier will be distributed with paychecks to all employees paid through the States Centralized Payroll Unit. HEALTH CAPSULE The Health Capsule newsletter announces the SHBP Open Enrollment Period to employees and presents important information and changes that may affect their benefit selection. A sample is enclosed for your review. HEALTH PLAN CONTACTS Also included in this mailing is a listing of marketing contacts for the various health and dental plans. Use these contacts to obtain provider directories or other plan specific literature. (These telephone numbers are not for member services. Please do not give these telephone numbers to your employees. HEALTH AND DENTAL PLAN APPLICATIONS As a result of last years expansion of the SHBP Dental Plans to local government and educational employers, the Health Benefits Bureau has two separate applications: one application is for enrolling into the health plans (including prescription drug coverage) and the other application is for enrolling into the Employee Dental Plans. The health benefit application has been recently revised and a copy is attached. Please check that you are using the newest versions. The health and dental applications are available for download from the SHBP home page at: www.state.nj.us/treasury pensions/shbp.htm HEALTH PLAN COMPARISON SUMMARY CHART With the changes to Local Group and Retiree copayments, the SHBP is again able to produce a single Plan Comparison Summary charts for State employees, Local/Educational employees, and all Retirees (State and Local/Educational). The comparison charts are currently being printed and copies will be shipped to employers as soon as they are available. SUMMARY PROGRAM DESCRIPTION (SPD) BOOKLET The SHBP Summary Program Description has been revised for the 2007 plan year. The booklet is currently being printed and copies will be shipped as soon as they are available. The SPD is currently available for viewing over the Internet at: www.state.nj.us/treasury/pensions/shbp.htm PLAN HANDBOOKS The SHBPs member handbooks for the Traditional Plan, NJ PLUS, and the Employee Prescription Drug Plan are being revised for the 2007 plan year and will be available early in 2007. HMO handbooks are also being prepared by the individual HMOs for distribution. The SHBP Dental Plans was revised for the 2006 plan year and can continue to be used for the 2007 plan year. ONLINE INFORMATION The SHBPs plan comparisons, member handbooks, newsletters, and rate information are available over the Internet at the State Health Benefits Program home page: www.state.nj.us/treasury/pensions/shbp.htm Web-based presentations on the SHBP Open Enrollment Period will also be available for both employers and employees during the open enrollment period. Once open enrollment begins you will find the link on the SHBP home page. Participating provider information for all SHBP medical plans is available in the Unified Provider Directory (UPD). The UPD is an online service that provides a comprehensive listing of health care providers and facilities that deliver their services through one or more of the SHBPs health care plans. Updated monthly, you can access the UPD through the SHBP home page at: www.state.nj.us/treasury/pensions/shbp.htm TAX$AVE The State Employees Tax Savings Program (Tax$ave) Open Enrollment Period runs concurrent with the SHBP Open Enrollment Period (October 1 – October 31, 2006). Tax$ave is a benefit program available to full-time State employees who are eligible for the SHBP. Tax$ave can save your employees tax money by paying health and dental benefit premiums and eligible unreimbursed medical and/or dependent care expenses from before-tax dollars. See the Tax$ave Open Enrollment materials for more information. Internal Revenue Service (IRS) rules require that for an employee covered by the Premium Option Plan, payroll deductions for health and dental plan benefits remain the same for the entire plan year. Therefore, no coverage level changes can be made which result in a change in the amount of an employees health and/or dental plan deduction unless a Qualifying Event has occurred. FSA Claim Period Extended Any balance remaining in a Tax$ave Flexible Spending Account (FSA) the Unreimbursed Medical Spending Account or the Dependent Care Spending Account as of December 31, can now be used for eligible expenses incurred from January 1 through March 15 of the following year. The period that employees enrolled in a Tax$ave FSA have for submitting claims for reimbursement has been extended to April 30 of the following year. While this does not eliminate the use-it-or-lose-it rule completely, employees now have a longer period to obtain covered services and avoid forfeiting unused funds. See the Tax$ave Open Enrollment announcement letter or the Tax$ave 2007 newsletter for details. Tax$ave and Domestic Partners SHBP members need to be aware of the possible federal tax implications of adding a domestic partner to SHBP benefits. Since the federal tax code does not view domestic partners in the same manner as spouses, an employer may have to treat the domestic partner SHBP benefit as taxable to the employee and withhold federal income, Social Security, and Medicare taxes on its value. Similarly, since the domestic partner's coverage is a federally taxable benefit, an employee who participates in the Tax$ave Premium Option Plan cannot make pre-tax payments for the cost of a domestic partner's coverage. Pre-tax dollars may still be used to pay for the employee's portion of the cost of his or her own and dependent children's coverage. If an employee wants to claim a federal tax dependency exemption for a domestic partner, he or she should contact the Internal Revenue Service or see IRS Tax Topic 354 Dependents for more details. ADDITIONAL INFORMATION If you have any questions about the SHBP Open Enrollment Period or the information in this letter, please contact our Office of Client Services at (609) 292-7524 to speak with an Employer Group representative. Thank you for your assistance in making the SHBP Open Enrollment Period a success for your employees. Enclosures: CO Letter in Printable Format (Includes the above enclosures) September 2006
The State Health Benefits Program (SHBP) Open Enrollment Period for all eligible part-time employees of the State and part-time faculty at institutions of higher education will be held from October 1, 2006 through October 31, 2006. These eligible part-time employees may elect to enroll for benefits under NJ PLUS and the Employee Prescription Drug Plan if they did not do so when first eligible. They may also add any eligible dependents they have not previously. Enrollments or changes to coverage level made during this open enrollment will be effective on January 1, 2007 for part-time employees. SHBP APPLICATIONS Completed employer-certified SHBP Part-time Employee Group Applications should be sent to the Health Benefits Bureau as soon as they are received from employees. Please write the words, Open Enrollment”, on the top of the application to help expedite their processing. The last day that certified applications may arrive at the Health Benefits Bureau to be effective for the start of the new plan year is November 6, 2006. RATE CHARTS Enclosed you will find Part-time Active and Part-time COBRA Group rates for NJ PLUS and the Employee Prescription Drug Plan. MORE INFORMATION AVAILABLE ONLINE The SHBPs member handbooks, newsletters, and rate information are available over the Internet at the State Health Benefits Program home page: www.state.nj.us/treasury/pensions/shbp.htm If you have any questions about the information in this letter, please contact our Office of Client Services at (609) 292-7524. Thank you for your assistance in making the SHBP Open Enrollment Period a success for your employees. Enclosures: CO Letter in Printable Format (Includes the above enclosure) September 2006
The State Health Benefits Program (SHBP) Open Enrollment period for all State employees will begin on October 1, 2006 and end on October 31, 2006. All changes to coverage made during this open enrollment will be effective on January 1, 2007 for employees of State universities, State colleges, and State authorities. Completed employer-certified health benefit and/or dental applications should be forwarded to the Health Benefits Bureau as soon as they are received from employees. The last day that certified applications may arrive at the Health Benefits Bureau to be effective for the start of the new plan year is November 6, 2006. In keeping with its current policy, the SHBP will not provide health fairs during this years open enrollment period. RATES FOR 2007 The State Health Benefits Commission has approved new health, dental, and prescription drug plan rates for the 2007 plan year. These rates are based upon the recommendation of the Commissions actuarial consultant, Aon Consulting. Since the SHBP self-funds all of its medical plans, the claims experience used in projecting 2007 costs are based upon the actual claims experience of the group. Effective January 1, 2007, SHBP plan rates for the State Active Group, will see the following percentage of change:
PREMIUM SHARING The premium share arrangements remain unchanged. For those employees subject to premium sharing:
These percentages apply regardless of salary level or date of hire. COPAYMENT AMOUNTS FOR 2007 SHBP medical and prescription drug plan copayments for State Active Group members remain unchanged for the 2007 plan year and are listed below.
MEDICAL AND PRESCRIPTION DRUG PLAN CHANGES The plan changes that will effect State Active Group members are as follows:
RETIREE PRESCRIPTION DRUG PLAN INFORMATION In accordance with the provisions of the Retiree Prescription Drug Plan under NJ PLUS and the Traditional Plan, effective January 1, 2007, retail pharmacy copayments for a 30-day supply will increase to $8 for generic drugs; $17 for preferred brand name drugs; and $34 for all other brand name prescription drugs. The mail order copayments for a 90-day supply will increase to $8 for generic drugs, $25 for preferred brand name drugs, and $42 for all other brand name prescription drugs. Effective January 1, 2007, the annual maximum out-of-pocket for prescription drug copayments is $1,082 per person. Once a person has paid $1,082 in copayments, that person is no longer required to pay any prescription drug copayments for the remainder of that calendar year. OPEN ENROLLMENT INFORMATIONAL MATERIALS MILESTONES Enclosed is a milestone chart that lists the critical dates of the open enrollment period and outlines the efforts being made to educate employees. Please use this chart as a checklist to guide your activities during open enrollment. RATE CHARTS 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. 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. HEALTH CAPSULE The Health Capsule newsletter announces the SHBP Open Enrollment Period to employees and presents important information and changes that may affect their benefit selection. A sample is enclosed for your review. The newsletters are scheduled for delivery to monthly employers in late-September. Please distribute them to your employees for the open enrollment. HEALTH PLAN CONTACTS Also included in this mailing is a listing of marketing contacts for the various health and dental plans. Use these contacts to obtain provider directories or other plan specific literature. (These telephone numbers are not for member services. Please do not give these telephone numbers to your employees.) HEALTH AND DENTAL PLAN APPLICATIONS As a result of last years expansion of the SHBP Dental Plans to local government and educational employers, the Health Benefits Bureau has two separate applications: one application is for enrolling into the health plans (including prescription drug coverage) and the other application is for enrolling into the Employee Dental Plans. The health benefit application has been recently revised and a copy is attached. Please check that you are using the newest versions. The health and dental applications are available for download from the SHBP home page at: www.state.nj.us/treasury/pensions/shbp.htm HEALTH PLAN COMPARISON SUMMARY CHART With the changes to Local Group and Retiree copayments, the SHBP is again able to produce a single Plan Comparison Summary charts for State employees, Local/Educational employees, and all Retirees (State and Local/Educational). The comparison charts are currently being printed and copies will be shipped to employers as soon as they are available. SUMMARY PROGRAM DESCRIPTION (SPD) BOOKLET The SHBP Summary Program Description has been revised for the 2007 plan year. The booklet is currently being printed and copies will be shipped as soon as they are available. The SPD is currently available for viewing over the Internet at: www.state.nj.us/treasury/pensions/shbp.htm PLAN HANDBOOKS The SHBPs member handbooks for the Traditional Plan, NJ PLUS, and the Employee Prescription Drug Plan are being revised for the 2007 plan year and will be available early in 2007. HMO handbooks are also being prepared by the individual HMOs for distribution. The SHBP Dental Plans was revised for the 2006 plan year and can continue to be used for the 2007 plan year. ONLINE INFORMATION The SHBPs plan comparisons, member handbooks, newsletters, and rate information are available over the Internet at the State Health Benefits Program home page: www.state.nj.us/treasury/pensions/shbp.htm Web-based presentations on the SHBP Open Enrollment Period will also be available for both employers and employees during the open enrollment period. Once open enrollment begins you will find the link on the SHBP home page. Participating provider information for all SHBP medical plans is available in the Unified Provider Directory (UPD). The UPD is an online service that provides a comprehensive listing of health care providers and facilities that deliver their services through one or more of the SHBPs health care plans. Updated monthly, you can access the UPD through the SHBP home page at: www.state.nj.us/treasury/pensions/shbp.htm TAX$AVE The State Employees Tax Savings Program (Tax$ave) Open Enrollment Period runs concurrent with the SHBP Open Enrollment Period (October 1 – October 31, 2006). Tax$ave is a benefit program available to full-time State employees who are eligible for the SHBP. Tax$ave can save your employees tax money by paying health and dental benefit premiums and eligible unreimbursed medical and/or dependent care expenses from before-tax dollars. See the Tax$ave Open Enrollment materials for more information. Internal Revenue Service (IRS) rules require that for an employee covered by the Premium Option Plan, payroll deductions for health and dental plan benefits remain the same for the entire plan year. Therefore, no coverage level changes can be made which result in a change in the amount of an employees health and/or dental plan deduction unless a Qualifying Event has occurred. FSA Claim Period Extended Any balance remaining in a Tax$ave Flexible Spending Account (FSA) the Unreimbursed Medical Spending Account or the Dependent Care Spending Account as of December 31, can now be used for eligible expenses incurred from January 1 through March 15 of the following year. The period that employees enrolled in a Tax$ave FSA have for submitting claims for reimbursement has been extended to April 30 of the following year. While this does not eliminate the use-it-or-lose-it rule completely, employees now have a longer period to obtain covered services and avoid forfeiting unused funds. See the Tax$ave Open Enrollment announcement letter or the Tax$ave 2007 newsletter for details. Tax$ave and Domestic Partners SHBP members need to be aware of the possible federal tax implications of adding a domestic partner to SHBP benefits. Since the federal tax code does not view domestic partners in the same manner as spouses, an employer may have to treat the domestic partner SHBP benefit as taxable to the employee and withhold federal income, Social Security, and Medicare taxes on its value. Similarly, since the domestic partner's coverage is a federally taxable benefit, an employee who participates in the Tax$ave Premium Option Plan cannot make pre-tax payments for the cost of a domestic partner's coverage. Pre-tax dollars may still be used to pay for the employee's portion of the cost of his or her own and dependent children's coverage. If an employee wants to claim a federal tax dependency exemption for a domestic partner, he or she should contact the Internal Revenue Service or see IRS Tax Topic 354 Dependents for more details. ADDITIONAL INFORMATION If you have any questions about the SHBP Open Enrollment Period or the information in this letter, please contact our Office of Client Services at (609) 292-7524 to speak with an Employer Group representative. Enclosures: CO Letter in Printable Format (Includes the above enclosures) September 2006
The State Health Benefits Program (SHBP) Open Enrollment Period for local government employees will begin on October 1, 2006 and end on October 31, 2006. All changes to coverage made during this open enrollment will be effective on January 1, 2007. Completed employer-certified health benefit and/or dental applications should be forwarded to the Health Benefits Bureau as soon as they are received from employees. The last day that certified applications may arrive at the Health Benefits Bureau to be effective for the start of the new plan year is November 6, 2006. In keeping with its current policy, the SHBP will not provide health fairs during this years open enrollment period. RATES FOR 2007 The State Health Benefits Commission has approved new health and prescription drug plan rates for the 2007 plan year. These rates are based upon the recommendation of the Commissions actuarial consultant, Aon Consulting. Since the SHBP self-funds all of its medical plans, the claims experience used in projecting 2007 costs are based upon the actual claims experience of the group. Effective January 1, 2007, SHBP plan rates for the Local Government Active Group will see the following percentage of change:
NEW COPAYMENT AMOUNTS FOR 2007 The State Health Benefits Commission has approved new medical and prescription drug plan copayments amounts for Local Government Active Group members as well as for all retirees. The new copayments are listed below become effective January 1, 2007.
MEDICAL AND PRESCRIPTION DRUG PLAN CHANGES The plan changes that will effect Local Government Active Group members are as follows:
OPEN ENROLLMENT INFORMATIONAL MATERIALS MILESTONES Enclosed is a milestone chart that lists the critical dates of the open enrollment period and outlines the efforts being made to educate employees. Please use this chart as a checklist to guide your activities during open enrollment. RATE CHARTS Enclosed you will find approved rates for SHBP health and prescription drug plans. We have included rate charts for employers with and without prescription drug coverage. The listed rates are effective January 1, 2007 through December 31, 2007. HEALTH CAPSULE The Health Capsule newsletter announces the SHBP Open Enrollment Period to employees and presents important information and changes that may affect their benefit selection. The newsletter will be posted to the Divisions Web site and is scheduled for delivery to Local employers and as soon as printing is completed. Please distribute them to your employees when received. HEALTH PLAN CONTACTS Also included in this mailing is a listing of marketing contacts for the various health and dental plans. Use these contacts to obtain provider directories or other plan specific literature. (These telephone numbers are not for member services. Please do not give these telephone numbers to your employees.) HEALTH AND DENTAL PLAN APPLICATIONS The State Health Benefits Program currently has two separate applications: one application is for enrolling into the health plans (including prescription drug coverage) and the other application is for enrolling into the Employee Dental Plans. The health plan application has been recently revised and a copy is attached. Please check that you are using the newest versions. The health and dental applications are available for download from the SHBP home page at: www.state.nj.us/treasury/pensions/shbp.htm HEALTH PLAN COMPARISON SUMMARY CHART With the changes to Local Group and Retiree copayments, the SHBP is again able to produce a single Plan Comparison Summary charts for State employees, Local Government/Educational employees, and all Retirees (State and Local Government/Educational). The comparison charts are currently being printed and copies will be shipped to employers as soon as they are available. SUMMARY PROGRAM DESCRIPTION (SPD) BOOKLET The SHBP Summary Program Description has been revised for the 2007 plan year. The booklet is currently being printed and copies will be shipped as soon as they are available. The SPD is currently available for viewing over the Internet at: www.state.nj.us/treasury/pensions/shbp.htm PLAN HANDBOOKS The SHBPs member handbooks for the Traditional Plan, NJ PLUS, and the Employee Prescription Drug Plan are being revised for the 2007 plan year and will be available early in 2007. HMO handbooks are also being prepared by the individual HMOs for distribution. The SHBP Dental Plans was revised for the 2006 plan year and can continue to be used for the 2007 plan year. ONLINE INFORMATION The SHBPs plan comparisons, member handbooks, newsletters, and rate information are available over the Internet at the State Health Benefits Program home page: www.state.nj.us/treasury/pensions/shbp.htm ADDITIONAL INFORMATION If you have any questions about the SHBP Open Enrollment Period or the information in this letter, please contact our Office of Client Services at (609) 292-7524 to speak with an Employer Group representative. Enclosure: CO Letter in Printable Format (Includes the above enclosures) September 2006
The State Health Benefits Program (SHBP) Open Enrollment Period for local Board of Education employees will begin on October 1, 2006 and end on October 31, 2006. All changes to coverage made during this open enrollment will be effective on January 1, 2007. Completed employer-certified health benefit and/or dental applications should be forwarded to the Health Benefits Bureau as soon as they are received from employees. The last day that certified applications may arrive at the Health Benefits Bureau to be effective for the start of the new plan year is November 6, 2006. In keeping with its current policy, the SHBP will not provide health fairs during this years open enrollment period. RATES FOR 2007 The State Health Benefits Commission has approved new health and prescription drug plan rates for the 2007 plan year. These rates are based upon the recommendation of the Commissions actuarial consultant, Aon Consulting. Since the SHBP self-funds all of its medical plans, the claims experience used in projecting 2007 costs are based upon the actual claims experience of the group. Effective January 1, 2007, SHBP plan rates for the Local Education Active Group will see the following percentage of change:
NEW COPAYMENT AMOUNTS FOR 2007 The State Health Benefits Commission has approved new medical and prescription drug plan copayments amounts for Local Education Active Group members as well as for all Retirees. The new copayments are listed below become effective January 1, 2007.
MEDICAL, DENTAL, AND PRESCRIPTION DRUG PLAN CHANGES The plan changes that will effect Local Government Active Group members are as follows:
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