We will soon witness an historic moment in NJEA history:
In 1988, NJEA secured state-paid health benefits for teacher retirees. The state budgeted money for these benefits on a yearly basis. Benefits were guaranteed for that year.
In 1992, we secured the same state-paid health benefits for ESP and higher ed members.
In 1997, we secured a legal “lock” (a contractual right) on members’ pensions.
And in 2007, in a political climate openly hostile to public employees’ pensions and health benefits, NJEA will soon secure a legal guarantee to premium-free retiree health benefits for all members. Once this legislation is passed, the state, regardless of its fiscal health, can never renege on our retirees’ health benefits.
Earlier today, S-3004/A-5005, which guarantees public school employees’ post-retirement medical benefits, unanimously passed from committees in both houses of the legislature. The legislation is expected to pass, and Governor Corzine is expected to sign the legislation soon.
As you know, the new health plan will be a Preferred Provider Organization (PPO) with an extensive, national network of doctors. An appointment with a doctor would cost $10 dollars. In the event that a non-network doctor or facility is needed, members will still have access to the doctor or facility of their choice without a gate-keeper. If they choose an out-of-network doctor, their co-pay would be 80/20, although the out-of-pocket maximums will increase for out-of-network services.
In addition, the plan will be governed by a new independent body of nine individuals, with NJEA having a significant voice on the board. The board will be comprised of the State Treasurer, the Commissioner of the Department of Banking and Insurance, a member appointed by the Governor, a member appointed by the Governor from among three persons nominated by the New Jersey School Boards’ Association, three members appointed by the Governor from among five persons nominated by the New Jersey Education Association, a member appointed by the Governor from among three persons nominated by the education section of the New Jersey State AFL-CIO, and a member appointed by the governor with agreement from NJEA who shall be the chairperson.
Most importantly, the legislation guarantees that there will be no premium sharing for retirees now or in the future, a guarantee similar to the “lock” that school employees now have on their pensions.
Also as a result of this legislation, the uniformity clause that now requires all local governing bodies, including school districts that are in the State Health Benefits Plan, to receive the same level of benefits as state employees, would no longer apply. Consequently, it prevents school employees’ health benefits from being bargained by other unions.
The option for a district not to participate in the state plan will remain as it is now. A district that now has a private plan could remain in that plan.
S-3004/A-5005 also includes changes to the pension system and the State Investment Council that we have discussed previously.
As soon as possible, information about the legislation and the plan will be available on www.njea.org.
