September
6, 2005
| TO: |
State
Departmental Human Resources Directors
State Biweekly Human Resources Representatives |
| FROM: |
Florence
J. Sheppard
Deputy Director, Benefits Operations |
| SUBJECT: |
SHBP
Open Enrollment 2005 - State Biweekly Employers |
The State Health Benefits Program (SHBP) Open Enrollment period
for all State employees will begin on October 1, 2005 and end
on October 31, 2005. All changes to coverage made during this
open enrollment will be effective on January 7, 2006 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 7, 2005.
In keeping with its current policy, the SHBP will not provide
health fairs during this year's open enrollment period.
RATES
FOR 2006
The State
Health Benefits Commission has approved new health, dental, and
prescription drug plan rates for the 2006 plan year. These rates
are based upon the recommendation of the Commission's actuarial
consultant, Aon Consulting. Since the SHBP self-funds most of
its plans, the claims experience used in projecting 2006 costs
are based upon the actual claims experience of the group. As of
January 2006, all SHBP plans will be self-funded.
Effective
January 7, 2006, SHBP plan rates for the State Active Group, will
see the following percentage of increase:
|
PLAN
TYPE
|
RATE
INCREASE
|
| NJ
PLUS |
9.3% |
| Traditional
Plan |
19.1% |
| HMO
Plans (Composite Change) |
15.0% |
| Prescription
Drug Plan |
12.2% |
| Dental
Provider Organization (DPO) Plans |
4.9%
(Aetna 5.4%) |
| Dental
Expense Plan |
3.5% |
PREMIUM SHARING
The premium
share arrangements remain unchanged. For those employees subject
to premium sharing:
- There
is no premium cost to any employee who enrolls in NJ PLUS.
- Employees
will pay 5% of the premium cost if enrolled in an HMO.
- Employees
will pay 25% of the premium cost if eligible and enrolled in
the Traditional Plan.
These percentages
apply regardless of salary level or date of hire.
MEDICAL
AND PRESCRIPTION DRUG PLAN CHANGES
The plan
changes that will affect the majority of employees are as follows:
- Employees
in State law enforcement bargaining units (most Fraternal Order
of Police units and all State Police units - including non-aligned
officers) are no longer eligible to participate in the SHBP
Traditional Plan effective July 1, 2005 (July 9, 2005
for State employees paid through the State's Centralized Payroll
Unit). In addition, the closure of the Traditional Plan also
applies to Fraternal Order of Police retirees and State Police
retirees (including non-aligned officers) who retire after July
1, 2005, regardless of their years of service credit.
- Employers
should also remember that new State employees hired on or after
July 1, 2003 and eligible for enrollment in the SHBP, are not
eligible for coverage under the SHBP Traditional Plan.
Ineligible employees include State employees as determined by
union contract and all non-aligned State employees as provided
under Chapter 119, P.L. 2003.
Employees
who are not eligible for the Traditional Plan can choose from
among the six other plans offered by the SHBP such as NJ PLUS
or one of the five HMOs: Aetna, AmeriHealth, CIGNA HealthCare,
Health Net, and Oxford.
- Employees
who are newly married, or enrolling in the SHBP for the first
time during the Open Enrollment, and are enrolling their spouse
as a dependent are required to provide a copy of the marriage
certificate at the time of enrollment. Similarly, if an employee
is enrolling an eligible domestic partner as a dependent, a
copy of the NJ Certificate of Domestic Partnership is required
at the time of enrollment. To ensure that the documentation
submitted is properly matched to the employee's record, the
Health Benefits Bureau is requesting that employers provide
the employee's Social Security number on the copy of the marriage/partnership
documentation.
DENTAL
PLAN INFORMATION
- Employee
Dental Plans Update - Oral Evaluations and cleanings were changed
for administrative ease of processing claims for all dental
plans. These changes were effective January 1, 2005, and should
result in fewer claim denials.
- Diagnostic
- Oral evaluations can be performed up to two times per calendar
year. X-Rays can be made for two series of up to four films
per calendar year;
- Preventive
- Dental cleanings can be performed two times in a calendar
year; and
- Fluoride
- Two treatments can be performed per calendar year for eligible
dependent children under 19 years of age.
Formerly,
these benefits were available on a one-time basis every six
months.
- Dental
Plan Note - Employees must maintain enrollment in a dental
plan choice for a minimum of 12 months before they are permitted
to change plans. Therefore, if an employee was not enrolled
in a dental plan as of January 1, 2005, they cannot make a dental
plan change during this open enrollment period.
- Retiree
Dental Expense Plan - The Retiree Dental Expense Plan, administered
for the SHBP by Aetna Dental, is now available to all retirees
when they enroll under the medical plans in the SHBP Retired
Group. Any retiree who enrolls in the Retiree Dental Expense
Plan is responsible for paying the full cost of their coverage.
A description of the plan and a chart outlining the benefits
of the Retiree Dental Expense Plan is available in Fact
Sheet #73, Retiree Dental Expense Plan, which can
be found on our Web site at: www.state.nj.us/treasury/pensions
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, 2006, retail
pharmacy copayments for a 30-day supply will increase to $8 for
generic drugs; $16 for preferred brand name drugs; and $33 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 $41 for all other brand name
prescription drugs. At the time of this writing, the out-of-pocket
maximum for the 2006 plan year was yet to be determined by the
State Health Benefits Commission. Please visit: www.state.nj.us/treasury/pensions/shbp.htm
for an update when it becomes available.
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 23, the open enrollment announcement flier will be
distributed with paychecks to all employees paid through the State's
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.
On September 23, the Health Capsule newsletter will be distributed
with paychecks to all employees paid through the State's Centralized
Payroll Unit.
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
year's 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 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 CHARTS - Due to the difference
in SHBP benefits for State Active employees, Local/Educational
Active employees, and all retirees, the SHBP has developed two
different Plan Comparison Summary charts - One for State
Active employees and one for Local/Educational Active employees
and all retirees (State and Local/Educational). The comparison
chart for State Active employees is currently being printed and
copies will be shipped to employers for the start of the open
enrollment period.
SUMMARY PROGRAM DESCRIPTION (SPD) BOOKLET - The SHBP Summary
Program Description has been revised for the 2006 plan year.
The booklet is currently being printed and copies will be shipped
to employers for the start of the SHBP Open Enrollment Period.
The SPD will also be available for viewing over the Internet at:
www.state.nj.us/treasury/pensions/shbp.htm
PLAN
HANDBOOKS - The SHBP's member handbooks for the Traditional
Plan, NJ PLUS, the Employee Prescription Drug Plan, and the SHBP
Dental Plans were revised for the 2005 plan year. Please continue
to use these editions of the handbooks for the 2006 plan year.
ONLINE INFORMATION
The SHBP's
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 SHBP's 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$ave) Open Enrollment Period
runs concurrent with the SHBP Open Enrollment Period (October
1 - October 31, 2005). Tax$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 employee's health and/or dental
plan deduction unless a Qualifying Event has occurred.
Unreimbursed Medical Claim Period Extended - Any balance
remaining in a Tax$ave Unreimbursed Medical Spending Account as
of December 31, can now be used for eligible expenses incurred
from January 1 through March 15 of the following year. While this
does not eliminate the use-it-or-lose-it rule completely, employees
now have a longer period to obtain covered services and avoid
forfeiting unused funds. See the Tax$ave Open Enrollment announcement
letter or the Tax$ave 2006 newsletter for details.
Tax$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) 292-5353, and select option #2 on the phone. When prompted,
leave a message and a representative will return your call.
Thank you for your assistance in making the SHBP Open Enrollment
Period a success for your employees.
September
6, 2005
| TO: |
State
Monthly Human Resources Representatives |
| FROM: |
Florence
J. Sheppard
Deputy Director, Benefits Operations |
| SUBJECT: |
SHBP
Open Enrollment 2005 - State Monthly Employers |
The State
Health Benefits Program (SHBP) Open Enrollment period for all
State employees will begin on October 1, 2005 and end on October
31, 2005. All changes to coverage made during this open enrollment
will be effective on January 1, 2006 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 7, 2005.
In keeping with its current policy, the SHBP will not provide
health fairs during this year's open enrollment period.
RATES
FOR 2006
The State
Health Benefits Commission has approved new health, dental, and
prescription drug plan rates for the 2006 plan year. These rates
are based upon the recommendation of the Commission's actuarial
consultant, Aon Consulting. Since the SHBP self-funds most of
its plans, the claims experience used in projecting 2006 costs
are based upon the actual claims experience of the group. As of
January 2006, all SHBP plans will be self-funded.
Effective
January 1, 2006, SHBP plan rates for the State Monthly Active
Group, will see the following percentage of increase:
|
PLAN
TYPE
|
RATE
INCREASE
|
| NJ
PLUS |
9.3% |
| Traditional
Plan |
19.1% |
| HMO
Plans (Composite Change) |
15.0% |
| Prescription
Drug Plan |
12.2% |
| Dental
Provider Organization (DPO) Plans |
4.9%
(Aetna 5.4%) |
| Dental
Expense Plan |
3.5% |
PREMIUM SHARING
The premium
share arrangements remain unchanged. For those employees subject
to premium sharing:
- There
is no premium cost to any employee who enrolls in NJ PLUS.
- Employees
will pay 5% of the premium cost if enrolled in an HMO.
- Employees
will pay 25% of the premium cost if eligible and enrolled
in the Traditional Plan.
These percentages
apply regardless of salary level or date of hire.
MEDICAL AND PRESCRIPTION DRUG PLAN CHANGES
The plan
changes that will affect the majority of employees are as follows:
- Employees
in State law enforcement bargaining units (most Fraternal Order
of Police units* and all State Police units - including non-aligned
officers) are no longer eligible to participate in the SHBP
Traditional Plan effective July 1, 2005. In addition, the closure
of the Traditional Plan also applies to Fraternal Order of Police
retirees and State Police retirees (including non-aligned officers)
who retire after July 1, 2005, regardless of their years of
service credit.
*Note: This provision does not apply to Fraternal Order
of Police employees/retirees of Rutgers University, the University
of Medicine and Dentistry of New Jersey (UMDNJ), or the New
Jersey Institute of Technology (NJIT).
- Employers
should also remember that new State employees hired on or after
July 1, 2003 and eligible for enrollment in the SHBP, are not
eligible for coverage under the SHBP Traditional Plan.
Ineligible employees include State employees as determined by
union contract and all non-aligned State employees as provided
under Chapter 119, P.L. 2003.
Employees
who are not eligible for the Traditional Plan can choose from
among the six other plans offered by the SHBP such as NJ PLUS
or one of the five HMOs: Aetna, AmeriHealth, CIGNA HealthCare,
Health Net, and Oxford.
- Employees
who are newly married, or enrolling in the SHBP for the
first time during the Open Enrollment, and are enrolling their
spouse as a dependent are required to provide a copy of the
marriage certificate at the time of enrollment. Similarly, if
an employee is enrolling an eligible domestic partner as a dependent,
a copy of the NJ Certificate of Domestic Partnership
is required at the time of enrollment. To ensure that the documentation
submitted is properly matched to the employee's record, the
Health Benefits Bureau is requesting that employers provide
the employee's Social Security number on the copy of the marriage/partnership
documentation.
DENTAL
PLAN INFORMATION
- Employee
Dental Plans Update
- Oral Evaluations and cleanings were changed for administrative
ease of processing claims for all dental plans. These changes
were effective January 1, 2005, and should result in fewer claim
denials.
- Diagnostic
- Oral evaluations can be performed up to two times per
calendar year. X-Rays can be made for two series of up to
four films per calendar year;
- Preventive
- Dental cleanings can be performed two times in a calendar
year; and
- Fluoride
- Two treatments can be performed per calendar year for
eligible dependent children under 19 years of age.
Formerly, these benefits were available on a one-time basis
every six months.
- Dental
Plan Note -
Employees must maintain enrollment in a dental plan choice for
a minimum of 12 months before they are permitted to change plans.
Therefore, if an employee was not enrolled in a dental plan
as of January 1, 2005, they cannot make a dental plan change
during this open enrollment period.
- Retiree
Dental Expense Plan - The Retiree Dental Expense Plan, administered
for the SHBP by Aetna Dental, is now available to all retirees
when they enroll under the medical plans in the SHBP Retired
Group. Any retiree who enrolls in the Retiree Dental Expense
Plan is responsible for paying the full cost of their coverage.
A description of the plan and a chart outlining the benefits
of the Retiree Dental Expense Plan is available in Fact
Sheet #73, Retiree Dental Expense Plan, which can
be found on our Web site at: www.state.nj.us/treasury/pensions
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, 2006, retail
pharmacy copayments for a 30-day supply will increase to $8 for
generic drugs; $16 for preferred brand name drugs; and $33 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 $41 for all other brand name
prescription drugs. At the time of this writing, the out-of-pocket
maximum for the 2006 plan year was yet to be determined by the
State Health Benefits Commission. Please visit: www.state.nj.us/treasury/pensions/shbp.htm
for an update when it becomes available.
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.
These rate fliers are designed to assist your employees in making
informed decisions concerning their health and dental care. Please
distribute them to your employees prior to the start of the Open
Enrollment.
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 mid-September. Please distribute
them to your employees prior to the start of 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
year's 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 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 CHARTS - Due to the difference
in SHBP benefits for State Active employees, Local/Educational
Active employees, and all retirees, the SHBP has developed two
different Plan Comparison Summary charts - One for State Active
employees and one for Local/Educational Active employees and all
retirees (State and Local/Educational). The comparison chart for
State Active employees is currently being printed and copies will
be shipped to employers for the start of the open enrollment period.
SUMMARY
PROGRAM DESCRIPTION (SPD) BOOKLET - The SHBP Summary Program
Description has been revised for the 2006 plan year. The booklet
is currently being printed and copies will be shipped to employers
for the start of the SHBP Open Enrollment Period. The SPD is also
available for viewing over the Internet at: www.state.nj.us/treasury/pensions/shbp.htm
PLAN HANDBOOKS - The SHBP's member handbooks for the Traditional
Plan, NJ PLUS, the Employee Prescription Drug Plan, and the SHBP
Dental Plans were revised for the 2005 plan year. Please continue
to use these editions of the handbooks for the 2006 plan year.
ONLINE
INFORMATION
The SHBP's
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 SHBP's 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$ave) Open Enrollment Period
runs concurrent with the SHBP Open Enrollment Period (October
1 - October 31, 2005). Tax$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 employee's health and/or dental
plan deduction unless a Qualifying Event has occurred.
Unreimbursed Medical Claim Period Extended - Any balance
remaining in a Tax$ave Unreimbursed Medical Spending Account as
of December 31, can now be used for eligible expenses incurred
from January 1 through March 15 of the following year. While this
does not eliminate the use-it-or-lose-it rule completely, employees
now have a longer period to obtain covered services and avoid
forfeiting unused funds. See the Tax$ave Open Enrollment announcement
letter or the Tax$ave 2006 newsletter for details.
Tax$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) 292-5353, and select option #2 on the phone. When prompted,
leave a message and a representative will return your call.
Thank you for your assistance in making the SHBP Open Enrollment
Period a success for your employees.
| Enclosures: |
| 2005
SHBP Open Enrollment Milestone Chart |
| Health
and Dental Plan Rate Charts/Fliers |
| Health
Capsule Newsletter |
| Health/Dental
Plan Marketing Contacts |
September
6, 2005
| TO:
|
State
Health Benefits Program Participating Local Government Employers |
| FROM: |
Florence
J. Sheppard
Deputy Director, Benefits Operations |
| SUBJECT: |
SHBP
Open Enrollment 2005 - Local Government Employers |
The State
Health Benefits Program (SHBP) Open Enrollment Period for local
government employees will begin on October 1, 2005 and end
on October 31, 2005. All changes to coverage made during this
open enrollment will be effective on January 1, 2006.
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 7, 2005.
In keeping with its current policy, the SHBP will not provide
health fairs during this year's open enrollment period.
RATES
FOR 2006
The State
Health Benefits Commission has approved new health and prescription
drug plan rates for the 2006 plan year. These rates are based
upon the recommendation of the Commission's actuarial consultant,
Aon Consulting. Since the SHBP self-funds most of its plans, the
claims experience used in projecting 2006 costs are based upon
the actual claims experience of the group.
Effective January 1, 2006, SHBP plan rates for the Local Government
Active Group will see the following percentage of increase:
| |
NJ
PLUS |
Traditional
Plan |
HMO
Plans
(Composite
Change) |
Employee
Prescription
Drug Plan |
Dental
Expense
Plan |
Dental
Plan
Organizations
(DPO) |
| Local
Government Employers with Separate Rx Coverage |
9.4% |
11.0% |
8.0% |
12.0% |
3.5% |
4.9%
(Aetna 5.4%) |
| Local
Government Employers without Separate Rx Coverage |
9.4% |
11.0% |
8.0% |
N/A |
3.5% |
4.9%
(Aetna 5.4%) |
MEDICAL AND PRESCRIPTION DRUG PLAN CHANGES
- Employees
who are newly married, or enrolling in the SHBP for the first
time during the Open Enrollment, and are enrolling their spouse
as a dependent are required to provide a copy of the marriage
certificate at the time of enrollment. Similarly, if an employee
is enrolling an eligible domestic partner as a dependent, a
copy of the NJ Certificate of Domestic Partnership is required
at the time of enrollment. To ensure that the documentation
submitted is properly matched to the employee's record, the
Health Benefits Bureau is requesting that employers provide
the employee's Social Security number on the copy of the marriage/partnership
documentation.
DENTAL
PLAN INFORMATION
- Employee
Dental Plans - The SHBP Employee Dental Plans are now available
to participating local employers who adopt this benefit for
their active employees and eligible dependents. Employers and
employees should see Fact
Sheet #37, SHBP Employee Dental Plans, for a description
of the plans and a chart outlining the benefits.
- Retiree
Dental Expense Plan - The Retiree Dental Expense Plan, administered
for the SHBP by Aetna Dental, is now available to all retirees
when they enroll under the medical plans in the SHBP Retired
Group. Any retiree who enrolls in the Retiree Dental Expense
Plan is responsible for paying the full cost of their coverage.
A description of the plan and a chart outlining the benefits
of the Retiree Dental Expense Plan is available in Fact
Sheet #73, Retiree Dental Expense Plan, which can
be found on our Web site at: www.state.nj.us/treasury/pensions
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, 2006, retail
pharmacy copayments for a 30-day supply will increase to $8 for
generic drugs; $16 for preferred brand name drugs; and $33 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 $41 for all other brand name
prescription drugs. At the time of this writing, the out-of-pocket
maximum for the 2006 plan year was yet to be determined by the
State Health Benefits Commission. Please visit: www.state.nj.us/treasury/pensions/shbp.htm
for an update when it becomes available.
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, 2006 through December
31, 2006.
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 Local employers in mid-September. Please distribute
them to your employees prior to the start of the open enrollment
period.
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
year's 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 if provided)
and the other application is for enrolling into the Employee Dental
Plans (if provided). 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 CHARTS - SHBP Plan Comparison
Summary charts for Local/Educational Active employees and all
retirees are currently being printed and copies will be shipped
to local employers for the start of the open enrollment period.
SUMMARY PROGRAM DESCRIPTION (SPD) BOOKLET - The SHBP Summary
Program Description has been revised for the 2006 plan year. The
booklet is currently being printed and copies will be shipped
to employers for the start of the SHBP Open Enrollment Period.
The SPD is also available for viewing over the Internet at: www.state.nj.us/treasury/pensions/shbp.htm
PLAN HANDBOOKS - The SHBP's member handbooks for the Traditional
Plan, NJ PLUS, the Employee Prescription Drug Plan, and the SHBP
Dental Plans were revised for the 2005 plan year. Please continue
to use these editions of the handbooks for the 2006 plan year.
ONLINE INFORMATION
The SHBP's
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 SHBP's health care plans. Updated monthly,
you can access the UPD through the SHBP home page at: 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) 292-5353, and select option #2 on the phone. When prompted,
leave a message and a representative will return your call.
Thank you for your assistance in making the SHBP Open Enrollment
Period a success for your employees.
September
6, 2005
| TO:
|
State
Health Benefits Program Participating Local Education Employers |
| FROM: |
Florence
J. Sheppard
Deputy Director, Benefits Operations |
| SUBJECT: |
SHBP
Open Enrollment 2005 - Local Education Employers |
The State
Health Benefits Program (SHBP) Open Enrollment Period for local
Board of Education employees will begin on October 1, 2005
and end on October 31, 2005. All changes to coverage made
during this open enrollment will be effective on January 1, 2006.
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 7, 2005.
In keeping with its current policy, the SHBP will not provide
health fairs during this year's open enrollment period.
RATES
FOR 2006
The State Health Benefits Commission has approved new health and
prescription drug plan rates for the 2006 plan year. These rates
are based upon the recommendation of the Commission's actuarial
consultant, Aon Consulting. Since the SHBP self-funds most of
its plans, the claims experience used in projecting 2006 costs
are based upon the actual claims experience of the group.
Effective January 1, 2006, SHBP plan rates for the Local Education
Active Group will see the following percentage of increase:
| . |
NJ
PLUS |
Traditional
Plan |
HMO
Plans
(Composite
Change) |
Employee
Prescription
Drug Plan |
Dental
Expense
Plan |
Dental
Plan
Organizations
(DPO) |
| Local
Education Employers with Separate Rx Coverage |
6.4% |
16.6% |
8.0% |
12.0% |
3.5% |
4.9%
(Aetna 5.4%) |
| Local
Education Employers without Separate Rx Coverage |
6.4% |
16.6% |
8.0% |
N/A |
3.5% |
4.9%
(Aetna 5.4%) |
MEDICAL
AND PRESCRIPTION DRUG PLAN CHANGES
- Employees
who are newly married, or enrolling in the SHBP for the first
time during the Open Enrollment, and are enrolling their spouse
as a dependent are required to provide a copy of the marriage
certificate at the time of enrollment. Similarly, if an employee
is enrolling an eligible domestic partner as a dependent, a
copy of the NJ Certificate of Domestic Partnership is required
at the time of enrollment. To ensure that the documentation
submitted is properly matched to the employee's record, the
Health Benefits Bureau is requesting that employers provide
the employee's Social Security number on the copy of the marriage/partnership
documentation.
DENTAL
PLAN INFORMATION
- Employee
Dental Plans - The SHBP Employee Dental Plans are now available
to participating local employers who adopt this benefit for
their active employees and eligible dependents. Employers and
employees should see Fact
Sheet #37, SHBP Employee Dental Plans, for a description
of the plans and a chart outlining the benefits.
- Retiree
Dental Expense Plan - The Retiree Dental Expense Plan, administered
for the SHBP by Aetna Dental, is now available to all retirees
when they enroll under the medical plans in the SHBP Retired
Group. Any retiree who enrolls in the Retiree Dental Expense
Plan is responsible for paying the full cost of their coverage.
A description of the plan and a chart outlining the benefits
of the Retiree Dental Expense Plan is available in Fact
Sheet #73, Retiree Dental Expense Plan, which can
be found on our Web site at: www.state.nj.us/treasury/pensions
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, 2006, retail
pharmacy copayments for a 30-day supply will increase to $8 for
generic drugs; $16 for preferred brand name drugs; and $33 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 $41 for all other brand name
prescription drugs. At the time of this writing, the out-of-pocket
maximum for the 2006 plan year was yet to be determined by the
State Health Benefits Commission. Please visit: www.state.nj.us/treasury/pensions/shbp.htm
for an update when it becomes available.
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, 2006 through December 31, 2006.
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 Local employers in mid-September. Please distribute
them to your employees prior to the start of the open enrollment
period.
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 year's
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 if provided) and the other application
is for enrolling into the Employee Dental Plans (if provided).
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 CHARTS - SHBP Plan Comparison Summary
charts for Local/Educational Active employees and all retirees
are currently being printed and copies will be shipped to local
employers for the start of the open enrollment period.
SUMMARY
PROGRAM DESCRIPTION (SPD) BOOKLET - The SHBP Summary Program
Description has been revised for the 2006 plan year. The booklet
is currently being printed and copies will be shipped to employers
for the start of the SHBP Open Enrollment Period. The SPD is also
available for viewing over the Internet at: www.state.nj.us/treasury/pensions/shbp.htm
PLAN HANDBOOKS
- The SHBP's member handbooks for the Traditional Plan, NJ PLUS,
the Employee Prescription Drug Plan, and the SHBP Dental Plans
were revised for the 2005 plan year. Please continue to use these
editions of the handbooks for the 2006 plan year.
ONLINE
INFORMATION
The SHBP's 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 SHBP's health care plans. Updated monthly,
you can access the UPD through the SHBP home page at: 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) 292-5353, and select option #2 on the phone. When prompted,
leave a message and a representative will return your call.
Thank you for your assistance in making the SHBP Open Enrollment
Period a success for your employees.
| Enclosure: |
| 2005
SHBP Open Enrollment Milestone Chart |
| Health
Plan Rate Charts |
| Health
Capsule Newsletter |
| Health
Plan Marketing Contacts |
August
22, 2005
| TO:
|
SHBP
Local Government and Education Employers |
| FROM: |
Florence
J. Sheppard
Deputy Director, Benefits Operations |
| SUBJECT: |
Medicare
Prescription Drug Benefit - Part D |
On January 1,
2006, a new prescription drug benefit for Medicare beneficiaries
(Medicare Part D) goes into effect. The State of New Jersey, as
Plan Sponsor, is working closely with its health benefits consultants
to satisfy all federal requirements in order for the State Health
Benefits Program (SHBP) to receive savings under Medicare Part D.
As a participating SHBP employer you do not need to take any action
in order to share in these savings. The savings will be reflected
in the SHBP Calendar Year 2006 Medicare Retiree Rates, which will
be sent to you in September 2005.
SHBP employers
should not retain the services of an actuary or any other professional
for the purpose of attempting to apply for the Medicare Part D
subsidy. The SHBP will handle all administrative, compliance,
and communications matters, including those with the Centers for
Medicare & Medicaid Services (CMS), the federal agency responsible
for administering Medicare.
The design
of the SHBP plans available to all Medicare retirees will more
than meet Medicare Part D actuarial equivalency requirements and
members will receive a Medicare Part D Certificate of Creditable
Coverage from the SHBP this fall. From the retirees' perspective,
there will be little or no change in their SHBP prescription drug
coverage in 2006 as a result of Medicare Part D. Medicare retirees
who pay for the cost of their SHBP coverage will participate in
the Medicare Part D savings available to the SHBP, which will
be reflected in their 2006 rates. SHBP retirees should not apply
for Medicare Part D coverage under any of the new non-SHBP programs
that will begin marketing in October 2005.
Additional information will be added to the Division of Pensions
and Benefits Web site at: www.state.nj.us/treasury/pensions/shbp.htm
as it becomes available.
August
15, 2005
| TO:
|
State
University and College Benefits Administrators
State Monthly Benefits Administrators |
| FROM: |
John
D. Megariotis
Deputy Director, Finance |
| SUBJECT: |
Open
Enrollment For The New Jersey State Employees Tax Savings
Program (Tax$ave 2006) |
The annual
open enrollment for the calendar year 2006 New Jersey State Employees
Tax Savings Program (Tax$ave 2006) will be conducted from October
1 through October 31, 2005. Full-time employees of the State,
State authorities, State universities, and State colleges who
are eligible for participation in the New Jersey State Health
Benefits Program (SHBP) may participate in Tax$ave.
About Tax$ave
Tax$ave consists of three components:
- The Premium
Option Plan (POP);
- The Unreimbursed
Medical Spending Account (UMSA); and
- The Dependent
Care Spending Account (DCSA).
Tax$ave offers
eligible employees the opportunity to increase their available
income by reducing their federal tax liability. Each year eligible
employees should review their personal financial circumstances
and decide if they wish to participate or not. Open Enrollment
offers employees the opportunity to conduct this review and then
act on their decision.
Note: Tax savings on commuter mass transit and parking
expenses are available at any time as a separate benefit to State
employees under the Commuter Tax$ave Program and are not tied
to this open enrollment period.
See Fact Sheet #67,
Commuter Tax$ave Program, for details.
Premium Option Plan
Enrollment in the Premium Option Plan is automatic. This saves
your employees tax money by paying health and dental premiums
from pre-tax dollars and reducing their tax liability. If an employee
does not wish to take advantage of the Premium Option Plan in
2006 (and therefore pay more in federal, Social Security, and
Medicare taxes) he or she should file a Declination of Premium
Option Plan (POP) form.
Flexible Spending Accounts
The Unreimbursed Medical Spending Account (UMSA); and the Dependent
Care Spending Account (DCSA) are also referred to as Flexible
Spending Accounts (FSA's). Listed below are some of the benefits
of FSA participation.
- New!
- Extended Claim Period. Employees enrolled in the Unreimbursed
Medical Spending Account now have until March 15 of the following
year to incur eligible expenses for the current plan year. Any
balance remaining in an UMSA as of December 31, can be used
for eligible expenses incurred from January 1 through March
15 of the following year. For example, if there are leftover
2005 funds, those dollars will be used first for any expenses,
then 2006 funds will be used once the 2005 dollars are exhausted.
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.
- Many
over-the-counter drugs are eligible for reimbursement in
the Unreimbursed Medical Spending Account. Internal Revenue
Service rules permit over-the-counter products/medications deemed
for "medical care" to be considered reimbursable.
"Medical care" includes amounts paid for the diagnosis,
cure, mitigation, treatment, or prevention of disease. Amounts
paid for medicines and drugs are expenditures for medical care,
but expenditures that are merely beneficial to the general health
of an individual, such as vitamins and other supplements, are
not eligible. For more information about expenses that are eligible
under Unreimbursed Medical Spending Accounts and Dependent Care
Spending Accounts, please visit the Horizon Healthcare Web site
through the link from the Division of Pensions and Benefits'
Tax$ave page at: www.state.nj.us/treasury/pensions/taxsave.htm
- Tax$ave
Unreimbursed Medical Spending Accounts feature the BennyTM Card,
a special MasterCard® that draws on the value of the employee's
annual UMSA election amount, making the UMSA easier to use.
Each time an employee uses Benny to pay for a qualified health
care expense at a health care provider or business that accepts
MasterCard, the amount of the qualified purchase is transferred
from the UMSA automatically - eliminating the need to lay out
cash at the time of purchase and file for a reimbursement. Once
issued, the Benny Card is good for five years and should not
be thrown away at the end of the plan year. Any new UMSA election
amount will be automatically available through an existing Benny
Card account at the start of the 2006 plan year.
Unlike the
POP or the health plans of the SHBP, prior participation in a
Tax$ave FSA in 2005 does not carry over automatically into
2006. Employees must enroll again to participate in an FSA
for calendar year 2006.
Enrolling
in a Flexible Spending Account
Employees have three ways of enrolling in the Tax$ave FSA accounts:
mail, telephone, and Internet. The Tax$ave publications will provide
the following instructions to employees:
- Mail:
FSA Election Applications must be mailed directly to Horizon
Healthcare by the employee. All election forms must be postmarked
no later than October 31, 2005, to be accepted. Those postmarked
after October 31, 2005 will be returned without action. Benefits
offices should not be involved in processing or mailing FSA
Election Applications.
- Telephone:
Employees may either enroll (or reenroll) in the UMSA or DCSA
plans for 2006 over the phone by calling Horizon Healthcare's
automated voice response unit at 1-800-224-4426. This is a great
opportunity to quickly and easily go through the process of
a new or repeat enrollment. Horizon will inform current participating
employees of this opportunity through a direct mailing in September.
The deadline for enrollment by telephone is midnight, October
31, 2005.
- Internet:
Again this year employees have the ability to enroll (or reenroll)
over the Internet. Go to the Horizon Healthcare Web page through
a link from the Division of Pensions and Benefits' Tax$ave page
at: www.state.nj.us/treasury/pensions/taxsave.htm
and follow the simple directions. The deadline for enrollment
over the Internet is midnight, October 31, 2005.
Tax$ave
and Domestic Partners
Under the New Jersey Domestic Partnership Act, State employees
are now able to add a same-sex domestic partner to their health
and dental insurance coverage. However, before any premiums that
the employee pays for the domestic partner coverage can be made
on a pre-tax basis under the Tax$ave Premium Option Plan, the
domestic partner must be able to qualify as a "tax dependent"
of the employee for federal tax filing purposes under IRC
Section 152. Similarly, the domestic partner must qualify as the
employee's federal tax dependent before an out-of-pocket medical
expense incurred by the domestic partner can be reimbursed under
the Unreimbursed Medical Spending Account.
If the domestic partner is not a "qualified tax dependent"
of the employee, any premium deductions made for the domestic
partner's coverage must be made on an after-tax basis and funds
in the Unreimbursed Medical Spending Account cannot be
used to cover the domestic partner's medical expenses. See IRS
Tax Topic 354 - Dependents for additional information on dependent
status for federal tax purposes. Additional information regarding
the Domestic Partnership Act can be found in Fact
Sheet #71, Benefits Under the Domestic Partnership Act, which
is available on the Division of Pensions and Benefits Web site:
www.state.nj.us/treasury/pensions
Employee Seminars
Upon request,
Horizon Healthcare will provide Tax$ave educational seminars,
at your workplace, for interested employees. The seminars are
about 60 minutes in duration and includes time for questions and
answers. These seminars have proven to be very successful educational
tools and we strongly encourage you to make one available to your
employees. Please see the enclosed
request form to schedule a seminar with a Horizon Healthcare
representative (please note that we ask for a minimum of 25 employees).
Tax$ave Support Materials
The remainder
of this letter provides information on the Tax$ave Open Enrollment
publications and support available to assist you in explaining
this important benefit program to your employees. Please do your
best to make a concerted effort to inform your employees of the
open enrollment and to educate them on the valuable benefits that
Tax$ave offers them. We believe that more employees will participate
in Tax$ave if they are made aware and understand the value of
the tax savings offered by the program.
Enclosed is the Tax$ave
Open Enrollment Milestones chart that lists the critical dates
of the Tax$ave 2006 Annual Open Enrollment and outlines the efforts
being made to educate employees. Please use this chart as a checklist
to guide your activities during the open enrollment.
The Division
will also provide State Monthly employers, State Universities,
and State Colleges with sufficient copies of the Tax$ave
2006 Open Enrollment News and the Premium
Option Plan 2006 pamphlet for all eligible employees. Horizon
Healthcare will provide sufficient copies of the FSA pamphlet
for distribution to all of your eligible employees.
-
The Tax$ave 2006 Open Enrollment News
announces the open enrollment, outlines the components of the
program with emphasis on its tax saving advantages, and identifies
the October 31, 2005 deadline for submission of all election
materials.
- The
Premium Option Plan 2006 pamphlet explains the advantages
and disadvantages of participation.
- The
FSA pamphlet describes the Unreimbursed Medical Spending
Account (UMSA) and the Dependent Care Spending Account (DCSA).
These publications
will be shipped to employers early in September and you should
distribute them to your employees before the Open Enrollment start
date on October 1, 2005. Preview copies of these publications
are enclosed with this letter.
We also encourage
you to provide your employees with reminders of the Tax$ave Open
Enrollment to ensure they don't allow this opportunity to slip
by without action.
The other open
enrollment materials you will need are the FSA Election Kits and
the Declination of Premium Option Plan (POP) for Plan Year 2006
form.
- FSA
Election Kits for 2006 will be sent directly to benefits administrators
by Horizon Healthcare,
along with a request form for additional kits. Please provide
the FSA Election Kits to those employees who request them.
- This letter
includes a minimal supply of the declination forms. These can
be copied for use by those few employees who do not wish to
participate in the POP and, therefore, pay more in tax. (Note:
do not distribute POP Declination forms to employees unless
they ask for one.) If an employee chooses not to save tax dollars
under the Tax$ave Premium Option Plan and wants to pay more
federal income, Social Security, and Medicare taxes on the salary
used to pay their medical and dental premiums in 2006, they
must complete a POP form declining the federal tax break they
could receive. Employees should request these forms from you.
We will be instructing employees to return the Declination of
Premium Option Plan (POP) forms to benefits administrators by
October 31, 2005. Benefits administrators must then forward
declination forms to the appropriate representative in their
payroll department.
We appreciate
your cooperation. Your involvement in the Tax$ave Open Enrollment
is key to your employees receiving the valuable benefits offered
by this program. If you have any questions about Tax$ave 2006
or the open enrollment, call Horizon Healthcare at 1-800-224-4426,
or visit the Division of Pensions and Benefits' Tax$ave Internet
site at: www.state.nj.us/treasury/pensions/taxsave.htm
Enclosures:
Request for Tax$ave 2006
Employee Seminars (PDF 9K)
Tax$ave
2006 Open Enrollment Milestones (PDF 12K)
Tax$ave 2006 Open Enrollment
News (PDF 71K)
The Premium Option Plan 2006
Pamphlet (PDF 63K)
Tax$ave Pamphlet - Savings
You Can Bank On (PDF 113K)
Declination of Premium Option
Plan (POP) for Plan Year 2006 (PDF
19K)
To print any
of the above forms in PDF, you must have Acrobat
Reader which is available free
from Adobe.
August
15, 2005
| TO: |
State
Department Human Resource Directors
State Biweekly Payroll Locations Benefits Administrators |
| FROM: |
John
D. Megariotis
Deputy Director, Finance |
| SUBJECT: |
Open
Enrollment For The New Jersey State Employees Tax Savings
Program (Tax$ave 2006) |
The annual
open enrollment for the calendar year 2006 New Jersey State Employees
Tax Savings Program (Tax$ave 2006) will be conducted from October
1 through October 31, 2005. Full-time employees of the State who
are eligible for participation in the New Jersey State Health
Benefits Program (SHBP) may participate in Tax$ave.
About Tax$ave
Tax$ave consists of three components:
- The Premium
Option Plan (POP);
- The Unreimbursed
Medical Spending Account (UMSA); and
- The Dependent
Care Spending Account (DCSA).
Tax$ave
offers eligible employees the opportunity to increase their available
income by reducing their federal tax liability. Each year eligible
employees should review their personal financial circumstances
and decide if they wish to participate or not. Open Enrollment
offers employees the opportunity to conduct this review and then
act on their decision.
Note: Tax savings on commuter mass transit and parking
expenses are available at any time as a separate benefit to State
employees under the Commuter Tax$ave Program and are not tied
to this open enrollment period.
See Fact Sheet #67,
Commuter Tax$ave Program, for details.
Premium Option Plan
Enrollment in the Premium Option Plan is automatic. This saves
your employees tax money by paying health and dental premiums
from pre-tax dollars and reducing their tax liability. If an employee
does not wish to take advantage of the Premium Option Plan in
2006 (and therefore pay more in federal, Social Security, and
Medicare taxes) he or she should file a Declination of Premium
Option Plan (POP) form.
Flexible Spending Accounts
The Unreimbursed Medical Spending Account (UMSA); and the Dependent
Care Spending Account (DCSA) are also referred to as Flexible
Spending Accounts (FSA's). Listed below are some of the benefits
of FSA participation.
- New!
- Extended Claim Period. Employees enrolled in the Unreimbursed
Medical Spending Account now have until March 15 of the following
year to incur eligible expenses for the current plan year. Any
balance remaining in an UMSA as of December 31, can be used
for eligible expenses incurred from January 1 through March
15 of the following year. For example, if there are leftover
2005 funds, those dollars will be used first for any expenses,
then 2006 funds will be used once the 2005 dollars are exhausted.
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.
- Many
over-the-counter drugs are eligible for reimbursement in
the Unreimbursed Medical Spending Account. Internal Revenue
Service rules permit over-the-counter products/medications deemed
for "medical care" to be considered reimbursable.
"Medical care" includes amounts paid for the diagnosis,
cure, mitigation, treatment, or prevention of disease. Amounts
paid for medicines and drugs are expenditures for medical care,
but expenditures that are merely beneficial to the general health
of an individual, such as vitamins and other supplements, are
not eligible. For more information about expenses that are eligible
under Unreimbursed Medical Spending Accounts and Dependent Care
Spending Accounts, please visit the Horizon Healthcare Web site
through the link from the Division of Pensions and Benefits'
Tax$ave page at: www.state.nj.us/treasury/pensions/taxsave.htm
- Tax$ave
Unreimbursed Medical Spending Accounts feature the BennyTM Card,
a special MasterCard® that draws on the value of the employee's
annual UMSA election amount, making the UMSA easier to use.
Each time an employee uses Benny to pay for a qualified health
care expense at a health care provider or business that accepts
MasterCard, the amount of the qualified purchase is transferred
from the UMSA automatically - eliminating the need to lay out
cash at the time of purchase and file for a reimbursement. Once
issued, the Benny Card is good for five years and should not
be thrown away at the end of the plan year. Any new UMSA election
amount will be automatically available through an existing Benny
Card account at the start of the 2006 plan year.
Unlike the
POP or the health plans of the SHBP, prior participation in a
Tax$ave FSA in 2005 does not carry over automatically into
2006. Employees must enroll again to participate in an FSA
for calendar year 2006.
Enrolling in
a Flexible Spending Account
Employees have
three ways of enrolling in the Tax$ave FSA accounts: mail, telephone,
and Internet. The Tax$ave publications will provide the following
instructions to employees:
- Mail:
FSA Election Applications must be mailed directly to Horizon
Healthcare by the employee. All election forms must be postmarked
no later than October 31, 2005, to be accepted. Those postmarked
after October 31, 2005 will be returned without action. Benefits
offices should not be involved in processing or mailing FSA
Election Applications.
- Telephone:
Employees may either enroll (or reenroll) in the UMSA or
DCSA plans for 2006 over the phone by calling Horizon Healthcare's
automated voice response unit at 1-800-224-4426. This is a great
opportunity to quickly and easily go through the process of
a new or repeat enrollment. Horizon will inform current participating
employees of this opportunity through a direct mailing in September.
The deadline for enrollment by telephone is midnight, October
31, 2005.
- Internet:
Again this year employees have the ability to enroll (or reenroll)
over the Internet. Go to the Horizon Healthcare Web page through
a link from the Division of Pensions and Benefits' Tax$ave page
at: www.state.nj.us/treasury/pensions/taxsave.htm and follow
the simple directions. The deadline for enrollment over the
Internet is midnight, October 31, 2005.
Tax$ave
and Domestic Partners
Under the New Jersey Domestic Partnership Act, State employees
are now able to add a same-sex domestic partner to their health
and dental insurance coverage. However, before any premiums that
the employee pays for the domestic partner coverage can be made
on a pre-tax basis under the Tax$ave Premium Option Plan, the
domestic partner must be able to qualify as a "tax dependent"
of the employee for federal tax filing purposes under IRC
Section 152. Similarly, the domestic partner must qualify as the
employee's federal tax dependent before an out-of-pocket medical
expense incurred by the domestic partner can be reimbursed under
the Unreimbursed Medical Spending Account.
If the domestic partner is not a "qualified tax dependent"
of the employee, any premium deductions made for the domestic
partner's coverage must be made on an after-tax basis and funds
in the Unreimbursed Medical Spending Account cannot be
used to cover the domestic partner's medical expenses. See IRS
Tax Topic 354 - Dependents for additional information on dependent
status for federal tax purposes. Additional information regarding
the Domestic Partnership Act can be found in Fact
Sheet #71, Benefits Under the Domestic Partnership Act, which
is available on the Division of Pensions and Benefits Web site:
www.state.nj.us/treasury/pensions
Employee Seminars
Upon request, Horizon Healthcare will provide Tax$ave educational
seminars, at your workplace, for interested employees. The seminars
are about 60 minutes in duration and includes time for questions
and answers. These seminars have proven to be very successful
educational tools and we strongly encourage you to make one available
to your employees. Please see the enclosed
request form to schedule a seminar with a Horizon Healthcare
representative (please note that we ask for a minimum of 25 employees).
Tax$ave Support Materials
The remainder of this letter provides information on the Tax$ave
Open Enrollment publications and support available to assist you
in explaining this important benefit program to your employees.
Please do your best to make a concerted effort to inform your
employees of the open enrollment and to educate them on the valuable
benefits that Tax$ave offers them. We believe that more employees
will participate in Tax$ave if they are made aware and understand
the value of the tax savings offered by the program.
Enclosed is the Tax$ave
Open Enrollment Milestones chart that lists the critical dates
of the Tax$ave 2006 Annual Open Enrollment and outlines the efforts
being made to educate employees. Please use this chart as a checklist
to guide your activities during the open enrollment.
Anouncement of the open enrollment to employees paid through Centralized
Payroll will be made in a September 9 paycheck message that will
be accompanied by three payroll inserts. These inserts are:
- The Tax$ave
2006 Open Enrollment News that announces the open enrollment,
outlines the components of the program with emphasis on its
tax saving advantages, and identifies the October 31, 2005 deadline
for submission of all election materials;
- An FSA
pamphlet that describes the Unreimbursed Medical Spending
Account (UMSA) and the Dependent Care Spending Account (DCSA);
and
- The
Premium Option Plan 2006 pamphlet that explains the advantages
and disadvantages of participation.
The September
23 paychecks will carry another Tax$ave 2006 Open Enrollment announcement
message and "reminder messages" will be provided to
employees through paycheck messages on October 7 and October 21
(a final November 4 paycheck message will address the Commuter
Tax$ave Program). The text of these check message announcements
and preview copies of the Tax$ave publications are enclosed with
this letter.
The other open enrollment materials you will need are the FSA
Election Kits and the Declination of Premium Option Plan (POP)
for Plan Year 2006 form.
- FSA
Election Kits for 2006 will be sent directly to benefits administrators
by Horizon Healthcare, along with a request form for additional
kits. Please provide the FSA Election Kits to those employees
who request them.
- This letter
includes a minimal supply of the declination forms. These can
be copied for use by those few employees who do not wish to
participate in the POP and, therefore, pay more in tax. (Note:
do not distribute POP Declination forms to employees unless
they ask for one.) If an employee chooses not to save tax dollars
under the Tax$ave Premium Option Plan and wants to pay more
federal income, Social Security, and Medicare taxes on the salary
used to pay their medical and dental premiums in 2006, they
must complete a POP form declining the federal tax break they
could receive. Employees should request these forms from you.
We will be instructing employees to return the Declination of
Premium Option Plan (POP) forms to benefits administrators by
October 31, 2005. Benefits administrators must then forward
declination forms to Centralized Payroll by November 10, 2005.
We appreciate
your cooperation. Your involvement in the Tax$ave Open Enrollment
is key to your employees receiving the valuable benefits offered
by this program. If you have any questions about Tax$ave 2006
or the open enrollment, call Horizon Healthcare at 1-800-224-4426,
or visit the Division of Pensions and Benefits' Tax$ave Internet
site at: www.state.nj.us/treasury/pensions/taxsave.htm
Enclosures:
Request for Tax$ave 2006
Employee Seminars (PDF 9K)
Tax$ave
2006 Open Enrollment Milestones (PDF 12K)
Open
Enrollment Check Messages (PDF 9K)
Tax$ave 2006 Open Enrollment
News (PDF 71K)
The Premium Option Plan 2006
Pamphlet (PDF 61K)
Tax$ave Pamphlet - Savings
You Can Bank On (PDF 113K)
Declination of Premium Option
Plan (POP) for Plan Year 2006 (PDF
20K)
To print any
of the above forms in PDF, you must have Acrobat
Reader which is available free
from Adobe.
June,
2005
| TO: |
Certifying
Officer - Teachers' Pension and Annuity Fund, Public Employees'
Retirement System &
Police and Firemen's Retirement System |
| FROM: |
John
D. Megariotis
Deputy Director, Finance
|
| SUBJECT: |
Report
of Contributions, Second Quarter 2005 (April 1st
to June 30th) |
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.
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 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.
Changes
To Member Contribution Pension Rates - Public Employees' Retirement
System - Local Government Employers
Effective
January 1, 2005 the Public Employees' Retirement System (PERS)
member contribution rate for local government employees returnedto
the normal rate of 5%. As a result employee pension contributions
for retroactive salary increases paid on or after January 1, 2005
should be calculated at the rate of 5%, including any portion
of the retroactive salary that covered a period prior to January
1, 2005.
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.
Effective
July 30, 2004, you were able to access TEPS through the Internet
instead of calling in your payments. In addition to making payments
on-line, you can cancel payments on-line providing that you make
the cancellation before the 5:30 pm cut off time. On-line inquiries
in which you can view and print a history of your payments are
also available. Log on to www.payments-govonesolutions.com/njpen.
Once you have logged on to TEPS, enter your location number and
current password, the same password you are using with the telephone
application. You will find a user friendly program that will
guide you through the payment, inquiry or payment cancellation
processes. The Division will still receive your payments the
next business day, as long as you enter your payment on-line before
the 5:30 pm cut off time.
The fax number
and address that you use to submit the Employer Authorization
Forms to the Division of Pensions and Benefits has been changed.
The Employer Authorization Form must be faxed to (720) 332-0039
or mailed to State of New Jersey, Department of Treasury, Division
of Pensions and Benefits, P.O. Box 9581, Trenton,
NJ 08650-9581.
Deadline
For Filing
All
ROCs must be postmarked by July 10, 2005, to be
considered timely filed.
It must be
noted that these deadlines are established to provide for the
timely updating of member accounts each quarter. In order to
accomplish this goal for the over 300,000 members of the retirement
plans, we rely on you, our participating employers, to report
pension information to us by the 10th calendar day
of the month following the end of the calendar quarter. In return,
your employees' accounts are updated with the most recent pension
information, which in turn may be used to process benefit claims
by those same employees or their beneficiaries.
In recent
years more and more employers have been delivering their ROCs
to us later and later. However, we have extended the courtesy
of holding open the reporting period to accommodate this late
receipt of information so as to not adversely impact the employees.
We must now notify you that this courtesy may no longer be extended
because it conflicts with our goal to provide timely benefit processing
to other retirement plan members whose employers submit their
ROCs by the prescribed due date. We will continue to accept your
ROCs beyond the 10th of each calendar quarter but we
will not guarantee that your employees' pension accounts will
be updated or benefits processed within the time period they would
expect. That may result in your employees not receiving service
credit as earned, loans when submitted or retirement benefits
immediately following termination of employment.
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.
Chapter
113 Salary Limits
Under Chapter
113, P.L. 1997, the amount of compensation (salary) used to determine
member contributions and benefits, for the State-administered
pension systems, may not exceed the compensation limitation of
section 401(a)(17) of the federal Internal Revenue Code. This
compensation (salary) limitation is adjusted annually, based upon
cost of living increases. The federal ceiling for 2005 is $210,000.
In other
words, under the provisions of the Internal Revenue Code, Section
401(a)(17), for "qualified" defined benefit plans {IRC
§ 401(a)(2)}, the current federal ceiling on pensionable salary
applies to the base salaries of members of these pension plans.
Salary earned by a member in excess of this amount is not pensionable;
that is, it may not be used in determining member contributions
and benefits.
TOP
5 REPORTING AND PAYMENT ERRORS
Number
5 - Changes 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 ROC.
This salary will be projected in column 6 of your next quarterly
ROC. This will eliminate the need to make numerous changes on
your 4th quarter ROC. Also, in the "Remarks Column" of the current
ROC you should indicate that the members had a salary increase
and the effective date.
Number
4 - Changing Banking Information for TEPS
Banking changes
for TEPS should be submitted to the Division of Pensions and Benefits
through the Employer Authorization Form on or after the date that
the new checking account becomes effective. Please note that
the fax number and address previously used has changed. The Employer
Authorization form must be faxed to (720) 332-0039 or mailed to
State of New Jersey, Department of Treasury, Division of Pensions
and Benefits, P.O. Box 9581, Trenton, NJ 08650-9581.
Number
3 - Explain all changes
Please make
all necessary corrections to the ROC before you return it to the
Division of Pensions and Benefits. Verify that all changes are
explained, the ROC is added correctly, and the totals agree with
the sum of the transmittal remittances.
Number
2 - Reporting partial months of service
Number
1 - Changes to employee contribution amounts for penny differences
resulting from rounding
Should you
have any questions or need assistance in completing the ROC, please
telephone us at (609) 292-3630.
NOTICE: The following letter applies to State Monthly
employers (State authorities and State Colleges and Universities)
that have contracts with the Fraternal Order of Police. However,
it does not apply to Rutgers, UMDNJ, and
NJIT.
April
26, 2005
| TO:
|
State
Biweekly Payroll and State Monthly
Benefits Administrators with FOP Contracts |
| FROM: |
Florence
J. Sheppard
Deputy Director, Benefits Operations |
| SUBJECT: |
Closure
of Traditional Plan for All State FOP Employees and Future
Retirees |
In March
you were notified that as a result of collective negotiations,
all State employee Fraternal Order of Police (FOP) bargaining
units, except those at Rutgers, UMDNJ, and NJIT, have agreed that
participation in the State Health Benefits Program's Traditional
Plan will no longer be available to employees effective July 1,
2005 (July 9, 2005 for employees paid through the State's Centralized
Payroll Unit). At the time of the March memorandum we were awaiting
legal advice regarding the closure of the Traditional Plan and
its impact on non-aligned personnel and employees that retire
after July 1, 2005.
Since our March memorandum, we have confirmed that the closure
of the Traditional Plan will apply to all FOP employees covered
under the aforementioned contracts who retire after July 1, 2005,
regardless of their years of service credit, or the date when
25 years of service was achieved. The Fiscal Year 2006 budget
contains language curtailing funding for the Traditional Plan
for all affected employees. Anyone who is currently retired and
those employees who retire on or before July 1, 2005 will not
be affected by this change. The closure of the Traditional Plan
will not apply to non-aligned personnel affiliated with these
bargaining units.
In order to ensure continuity of health care coverage for all
affected employees, a Special Open Enrollment has been authorized.
The Special Open Enrollment is being extended to May 13, 2005
to allow affected employees to make a plan change.
All certified enrollment applications must be submitted to the
Health Benefits Bureau by May 20, 2005. Please mark these applications
as "Special OE" and forward the applications as soon
as possible to expedite processing.
We appreciate your assistance and thank you for your anticipated
cooperation in this matter. If you have any questions, please
do not hesitate to contact the Division of Pensions and Benefits'
Office of Client Services at (609) 292-7524.
April
26, 2005
| TO:
|
State
Police Payroll Benefits Administrators |
| FROM: |
Florence
J. Sheppard
Deputy Director, Benefits Operations |
| SUBJECT: |
Closure
of Traditional Plan for Non-aligned State Police Officers
and Closure of Traditional Plan for all State Police Officers
Retiring after July 1, 2005 |
In March
you were notified that as a result of collective negotiations,
all State Police bargaining units have agreed that participation
in the State Health Benefits Program's Traditional Plan will no
longer be available to employees effective July 1, 2005 (July
9, 2005). At the time of the March memorandum we were awaiting
legal advice regarding the closure of the Traditional Plan and
its impact on non-aligned officers and employees that retire after
July 1, 2005.
Since our March memorandum, we have confirmed that the closure
of the Traditional Plan will also apply to all non-aligned State
Police officers and to all State Police officers (including non-aligned
officers) who retire after July 1, 2005, regardless of their years
of service credit, or the date when 25 years of service was achieved.
The Fiscal Year 2006 budget contains language curtailing funding
for the Traditional Plan for these employees. Anyone who is currently
retired and those employees who retire on or before July 1, 2005
will not be affected by this change.
In order to ensure continuity of health care coverage for all
affected employees, a Special Open Enrollment has been authorized.
The Special Open Enrollment is being extended to May 13, 2005
to allow affected employees to make a plan change.
All certified enrollment applications must be submitted to the
Health Benefits Bureau by May 20, 2005. Please mark these applications
as "Special OE" and forward the applications as soon
as possible to expedite processing.
We appreciate your assistance and thank you for your anticipated
cooperation in this matter. If you have any questions, please
do not hesitate to contact the Division of Pensions and Benefits'
Office of Client Services at (609) 292-7524.
April
15, 2005
| TO:
|
Certifying
Officers |
| FROM: |
Florence
J. Sheppard
Deputy Director, Benefits Operations |
| SUBJECT: |
Employer-Provided
Health Benefit Coverage for Domestic Partners |
Chapter 246,
P.L. 2003, designated the "Domestic Partnership Act",
became effective on July 10, 2004. Chapter 246 created a mechanism,
through the establishment of domestic partnerships, for New Jersey
to recognize and support the adult individuals in this State who
share a personal, emotional and committed relationship with another
adult.
The law provides
that two persons who desire to become domestic partners may execute
and file an Affidavit of Domestic Partnership if they meet the
requirements set forth in the law. This law accords registered
domestic partners rights and responsibilities that reflect the
mutually interdependent and supportive nature of domestic partnership
relationships and makes certain health and pension benefits available
to dependent domestic partners where both persons are of the same
sex and therefore unable to enter into a marriage with each other
that is recognized by New Jersey law:
Pursuant to
advice from the Attorney General's Office, the Division of Pensions
and Benefits would like to advise local employers that they may
adopt a resolution providing for dependent coverage for domestic
partners regardless of whether they participate in the State Health
Benefits Program (SHBP).
Because certain
retirees from these local employers may be eligible for SHBP coverage
at retirement, the Division of Pensions and Benefits is requiring
employers who provide dependent coverage for domestic partners,
but who do not participate in the SHBP, to complete and mail to
the Division a resolution indicating that they provide dependent
coverage for domestic partners. A copy of this resolution
form is included with this letter (and can also be found in
the online Employer Pensions and Benefits Administration Manual
which is available through the Division's Web site: www.state.nj.us/treasury/pensions)
Please note
that Chapter 246, at
N.J.S.A. 26:8A-11, specifically limits the availability of health
benefit and pension benefit provisions of the Domestic Partnership
Act to same-sex couples, and does not extend such benefits to
those heterosexual couples who are age 62 or older. Therefore,
no SHBP coverage in retirement would be offered to heterosexual
domestic partners, age 62 or older.
Enclosure:
Resolution
Form
March,
2005
| TO: |
Certifying
Officer: Teachers' Pension and Annuity Fund, Public Employees'
Retirement System & Police and Firemen's Retirement System |
| FROM: |
John
D. Megariotis
Deputy
Director, Finance
|
| SUBJECT: |
Report
of Contributions, First Quarter 2005 (January 1st
to March 31st) |
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.
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.
CHANGES
TO MEMBER CONTRIBUTION PENSION RATES
Public
Employees' Retirement System - Local Government Employers
Effective
January 1, 2005 the Public Employees' Retirement System (PERS)
member contribution rate for local government employees returned
to the normal rate of 5%. As a result employee pension contributions
for retroactive salary increases paid on or after January 1, 2005
should be calculated at the rate of 5%, including any portion
of the retroactive salary that covered a period prior to January
1, 2005
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.
Effective
July 30, 2004, you were able to access TEPS through the Internet
instead of calling in your payments. In addition to making payments
on-line, you can cancel payments on-line providing that you make
the cancellation before the 5:30 pm cut off time. On-line inquiries
in which you can view and print a history of your payments are
also available. Log on to www.payments-govonesolutions.com/njpen.
Once you have logged on to TEPS, enter your location number and
current password, the same password you are using with the telephone
application. You will find a user friendly program that will
guide you through the payment, inquiry or payment cancellation
processes. The Division will still receive your payments the
next business day, as long as you enter your payment on-line before
the 5:30 pm cut off time.
The fax number
and address that you use to submit the Employer Authorization
Forms to the Division of Pensions and Benefits has been changed.
The Employer Authorization Form must be faxed to (720) 332-0039
or mailed to State of New Jersey, Department of Treasury, Division
of Pensions and Benefits, P.O. Box 9581, Trenton, 08650-9581.
DEADLINE
FOR FILING
All
ROCs must be postmarked by April 10, 2005, to be
considered timely filed.
It must be
noted that these deadlines are established to provide for the
timely updating of member accounts each quarter. In order to
accomplish this goal for the over 300,000 members of the retirement
plans, we rely on you, our participating employers, to report
pension information to us by the 10th calendar day
of the month following the end of the calendar quarter. In return,
your employees' accounts are updated with the most recent pension
information, which in turn may be used to process benefit claims
by those same employees or their beneficiaries.
In recent
years more and more employers have been delivering their ROCs
to us later and later. However, we have extended the courtesy
of holding open the reporting period to accommodate this late
receipt of information so as to not adversely impact the employees.
We must now notify you that this courtesy may no longer be extended
because it conflicts with our goal to provide timely benefit processing
to other retirement plan members whose employers submit their
ROCs by the prescribed due date. We will continue to accept your
ROCs beyond the 10th of each calendar quarter but we
will not guarantee that your employees' pension accounts will
be updated or benefits processed within the time period they would
expect. That may result in your employees not receiving service
credit as earned, loans when submitted or retirement benefits
immediately following termination of employment.
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.
Chapter
113 Salary Limits
Under Chapter
113, P.L. 1997, the amount of compensation (salary) used to determine
member contributions and benefits, for the State-administered
pension systems listed below, may not exceed the compensation
limitation of section 401(a)(17) of the federal Internal Revenue
Code. This compensation (salary) limitation is adjusted annually,
based upon cost of living increases. The federal ceiling for
2005 will be $210,000.
In other
words, under the provisions of the Internal Revenue Code, Section
401(a)(17), for the "qualified" defined benefit plans
listed below [401(a)(2)], the current federal ceiling on pensionable
salary ($205,000 in 2004) applies to the base salaries of members
of these pension plans. Salary earned by a member in excess of
this amount is not pensionable; that is, it may not be used in
determining member contributions and benefits.
TOP 5 REPORTING
AND PAYMENT ERRORS
Number
5 - Changes 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 ROC.
This salary will be projected in column 6 of your next quarterly
ROC. This will eliminate the need to make numerous changes on
your 4th quarter ROC. Also, in the "Remarks Column" of the current
ROC you should indicate that the members had a salary increase
and the effective date.
Number
4 - Changing Banking Information for TEPS
Banking changes
for TEPS should be submitted to the Division of Pensions and Benefits
through the Employer Authorization Form on or after the date that
the new checking account becomes effective. Please note that
the fax number and address previously used has changed. The Employer
Authorization form must be faxed to (720) 332-0039 or mailed to
State of New Jersey, Department of Treasury, Division of Pensions
and Benefits, P.O. Box 9581, Trenton, NJ 08650-9581
Number
3 - Explain all changes -
Please make
all necessary corrections to the ROC before you return it to the
Division of Pensions and Benefits. Verify that all changes are
explained, the ROC is added correctly, and the totals agree with
the sum of the transmittal remittances.
Number
2 - Reporting partial months of service
And, the
number 1, most common reporting error is - Changes to employee
contribution amounts for penny differences resulting from rounding.
Should you
have any questions or need assistance in completing the ROC, please
telephone us at (609) 292-3630.
Enclosures:
Quarterly Report of Contributions
Transmittal Summary for 1st Quarter 2005
Return Envelope
NOTICE:
The following letter applies to the NJ State Police and those
State Monthly employers (State authorities and State Colleges
and Universities) that have contracts with the Fraternal Order
of Police. However, it does not apply to
Rutgers, UMDNJ, and NJIT.
March
30, 2005
| TO:
|
State
Biweekly Payroll Benefits Administrators
State Monthly Benefits Administrators
State College and University Human Resource Directors |
| FROM: |
Florence
J. Sheppard
Deputy Director, Benefits Operations |
| SUBJECT:
|
Special
Open Enrollment for State Law Enforcement Units (FOP and State
Troopers) Enrolled in the Traditional Plan |
As
a result of collective negotiations, the State of New Jersey and
its law enforcement bargaining units (all Fraternal Order of Police
units and all State Police units) have agreed that participation
in the State Health Benefits Program's Traditional Plan will no
longer be available to all active employees effective July 1,
2005 (July 9, 2005 for State employees paid through the State's
Centralized Payroll Unit). The Fiscal Year 2006 budget contains
language curtailing funding for the Traditional Plan for all employees
covered by these contracts. Funding of the Traditional Plan will
continue for employees covered by other contracts. We are awaiting
legal advice on the closure of the Traditional Plan and how it
will apply to non-aligned officers and to employees that retire
after July 1, 2005.
Employees
affected by this agreement will be sent a direct mailing (copy
enclosed) to advise them of the Traditional Plan's closure.
In order to ensure continuity of health care coverage for all
affected employees, a Special Open Enrollment has been authorized.
This Special Open Enrollment will be conducted during the month
of April (April 1 - April 30, 2005) to allow the employees to
make plan changes with an effective date of July 9, 2005 for State
employees paid through the State's Centralized Payroll Unit and
July 1, 2005 for all other State employees.
All
certified enrollment applications must be submitted to the Health
Benefits Bureau by May 6, 2005. Please mark these applications
as "Special OE" and forward the applications as soon
as possible to expedite processing.
Enclosed
is a list of employees who are enrolled in the Traditional Plan
at your location. Please review this list for accuracy and to
ensure that all Traditional Plan enrollees have submitted an application
to make a plan change.
We
appreciate your assistance and thank you for your anticipated
cooperation in this matter. If you have any questions, please
do not hesitate to contact the Division of Pensions and Benefits'
Office of Client Services at (609) 292-7524.
Enclosures
NOTICE:
The following letter applies to the NJ State Police and those
State Monthly employers (State authorities and State Colleges
and Universities) that have contracts with the Fraternal Order
of Police. However, it does not apply to
Rutgers, UMDNJ, and NJIT.
March
30, 2005
| TO:
|
State
Biweekly Payroll Benefits Administrators
State Monthly Benefits Administrators
State College and University Human Resource Directors |
| FROM: |
Florence
J. Sheppard
Deputy Director, Benefits Operations |
| SUBJECT:
|
Special
Open Enrollment for State Law Enforcement Units (FOP and State
Troopers) Enrolled in the Traditional Plan |
As
a result of collective negotiations, the State of New Jersey and
its law enforcement bargaining units (all Fraternal Order of Police
units and all State Police units) have agreed that participation
in the State Health Benefits Program's Traditional Plan will no
longer be available to all active employees effective July 1,
2005 (July 9, 2005 for State employees paid through the State's
Centralized Payroll Unit). The Fiscal Year 2006 budget contains
language curtailing funding for the Traditional Plan for all employees
covered by these contracts. Funding of the Traditional Plan will
continue for employees covered by other contracts. We are awaiting
legal advice on the closure of the Traditional Plan and how it
will apply to non-aligned officers and to employees that retire
after July 1, 2005.
Employees
affected by this agreement will be sent a direct mailing (copy
enclosed) to advise them of the Traditional Plan's closure.
In order to ensure continuity of health care coverage for all
affected employees, a Special Open Enrollment has been authorized.
This Special Open Enrollment will be conducted during the month
of April (April 1 - April 30, 2005) to allow the employees to
make plan changes with an effective date of July 9, 2005 for State
employees paid through the State's Centralized Payroll Unit and
July 1, 2005 for all other State employees.
All
certified enrollment applications must be submitted to the Health
Benefits Bureau by May 6, 2005. Please mark these applications
as "Special OE" and forward the applications as soon
as possible to expedite processing.
Enclosed
is a list of employees who are enrolled in the Traditional Plan
at your location. Please review this list for accuracy and to
ensure that all Traditional Plan enrollees have submitted an application
to make a plan change.
We
appreciate your assistance and thank you for your anticipated
cooperation in this matter. If you have any questions, please
do not hesitate to contact the Division of Pensions and Benefits'
Office of Client Services at (609) 292-7524.
Enclosures
Enclosure
1
March
30, 2005
| TO:
|
Law
Enforcement Employees |
| FROM: |
Florence
J. Sheppard
Deputy Director, Benefits Operations |
| SUBJECT:
|
Special
Open Enrollment for State Law Enforcement Units (FOP and State
Troopers) Enrolled in the Traditional Plan |
As
a result of collective negotiations, the State of New Jersey and
its law enforcement bargaining units (all Fraternal Order of Police
units and all State Police units) have agreed that participation
in the State Health Benefits Program's Traditional Plan will no
longer be available to all active employees effective July
1, 2005 (July 9, 2005 for State employees paid through the State's
Centralized Payroll Unit). The Fiscal Year 2006 budget contains
language curtailing funding for the Traditional Plan for all employees
covered by these contracts. We are awaiting legal advice on the
closure of the Traditional Plan and how it will apply to non-aligned
officers and to employees that retire after July 1, 2005.
You
have been identified as an employee who is affected by this agreement
and this letter is notice to advise you of the Traditional Plan's
closure. In order to ensure continuity of your health care
coverage, a Special Open Enrollment has been authorized. This
Special Open Enrollment will be conducted during the month of
April (April 1 - April 30, 2005) to allow you to change
from the Traditional Plan to another plan (NJ PLUS or a participating
HMO) offered through the State Health Benefits Program (SHBP).
A list of available plans and contact information is provided
with this notice.
Your
application to change plans must be submitted through your Human
Resources Representative. The effective date for coverage changes
will be:
- July 9,
2005 for State employees paid through the State's Centralized
Payroll Unit; and
- July 1,
2005 for all other State employees.
If you fail
to make a plan change during the Special Open Enrollment, you
may lose coverage or become responsible for paying the full
premium cost of the Traditional Plan.
If you have
any questions, please do not hesitate to contact the Division
of Pensions and Benefits' Office of Client Services at (609) 292-7524.
Enclosure
2
NEW
JERSEY STATE HEALTH BENEFITS PROGRAM
MEDICAL PLANS
SPECIAL
OPEN ENROLLMENT
STATE TROOPERS and STATE FOP
April 1 to 30, 2005
|
PLAN/
HMO #
|
PLAN
NAME
|
INTERNET
ADDRESS
|
PHONE
NUMBER
|
|
001
|
NJ
PLUS
Administered by Horizon Blue Cross Blue Shield of New Jersey
|
|
1-800-414-SHBP
(7427)
|
|
019
|
Aetna
Health |
|
1-800-309-2386
|
|
020
|
CIGNA
HealthCare |
|
1-800-244-6224
|
|
028
|
Oxford
Health Plan |
|
1-800-760-4566
|
|
033
|
AmeriHealth
HMO Plan |
|
1-800-877-9829
|
|
034
|
Health
Net |
|
1-800-441-5741
|
|
See
the SHBP Summary Program Description booklet for
additional information about the SHBP's medical plans. The
booklet is available from your Human Resources Representative
or Benefits Administrator, or on the SHBP Internet home
page at: www.state.nj.us/treasury/pensions/shbp.htm
Please
note that in order to see a specific physician under an
HMO or through NJ PLUS In-network benefits, the physician
must participate in that plan's network. If you have a physician
whose services you would like to continue to utilize, please
verify with the health plan and/or the physician that he
or she participates in that particular plan. You may also
search for participating physicians by name or ZIP Code
with the Unified
Provider Directory which is also available on the SHBP
home page.
|
February
2005
| TO: |
State
Monthly Human Resources Representatives and Benefit Administrators |
| FROM: |
John
D. Megariotis, Deputy Director of Finance, Division of Pensions
and Benefits
|
| SUBJECT: |
Increased
Contribution Amounts for Commuter Tax$ave* |
The Internal
Revenue service (IRS) has authorized increases in the maximum
allowable tax-free deduction amounts that the State of New Jersey
may offer for monthly mass transit and commuter parking expenses
through the New Jersey State Employees Commuter Tax Savings
Program (Commuter Tax$ave*).
The Division
of Pensions and Benefits is currently notifying State employees
paid through the State's Centralized Payroll System of these increases.
We are also asking that you, as a State Monthly employer that
participates in Commuter Tax$ave, also make your eligible employees
aware of this added benefit.
Enclosed
you will find master copies of a letter
to State employees announcing the increased deduction amounts.
Please reproduce and distribute this letter to all of your employees
who are currently enrolled, or eligible to enroll, in the Commuter
Tax$ave Program.
Employees
who participate in Commuter Tax$ave and who wish to take advantage
of this increase, should adjust their payroll deductions to cover
the increased amount by contacting TransitCenter, Inc.-the public
nonprofit corporation that administers the program under a contract
with the State of New Jersey. Employees can make changes to their
benefits using TransitCenter's online management account at www.mytransitchek.com
or by calling TransitCenter Customer Service at 1-800-576-1171
Monday - Friday, 9:00 am - 5:00 pm EST.
If any of
your employees do not already participate in the Commuter Tax$ave
Program, but wish reduce their taxes and save on their mass transit
and/or commuter parking expenses, they can enroll in the Commuter
Tax$ave Program by contacting TransitCenter using the Internet
address or telephone number shown above.
* Commuter
Tax$ave is a benefit program authorized by Chapter 162, P.L. 2001
and available under Section 132(f) of the federal Internal Revenue
Code. Commuter Tax$ave allows eligible employees to set aside
before-tax dollars to pay for certain mass transit and commuter
parking expenses, thereby avoiding federal taxes and saving money.
For additional information see Fact
Sheet #67, Commuter Tax$ave, which is available over
the Internet at: www.state.nj.us/treasury/pensions
Enclosure
January
2005
| TO: |
Participating
SHBP Employers |
| FROM: |
State
Health Benefits Program |
| SUBJECT: |
Required Notices To SHBP Enrollees |
Federal law
mandates employers to provide notice of requirements of certain
pieces of federal legislation to employees and their dependents
upon their enrollment in the employer's group health insurance.
State Health Benefits Program (SHBP) participating employers must
provide an initial notice concerning the Consolidated Omnibus
Budget Reconciliation Act (COBRA) program and a notice about the
federal Health Insurance and Portability Accounting Act's (HIPAA)
privacy requirements.
The attached
documents provide everything you, as an employer, need to comply
with the notice requirements of both COBRA and HIPAA.
Enclosure
one * (PDF 19K) is a cover letter
forwarding the required notices. You should modify this letter
to reflect its being mailed from your location to the employee
and dependents and include it with a copy of enclosure
two* (PDF 19K) (this consists of
the initial COBRA notification marked Important Notice
and a copy of Fact
Sheet #30, Continuation of New Jersey State Health Benefits
Program Insurance Under COBRA). NOTE: To meet
federal requirements, the letter must be addressed to the "Employee
and Family", it must be mailed (first class mail is sufficient),
and a copy must be retained to prove compliance.
The remaining
enclosures address the federal Health Insurance and Portability
Accounting Act (HIPAA). Federal law requires that all
enrollees - employees and dependents - in employer provided health
plans be notified annually of HIPAA requirements and how
the employer's plan compares with them. Enclosure
three* (PDF 18K) (Notice to State
Health Benefits Program Participants About Compliance with Federal
Health Insurance Requirements) will meet this requirement.
Each year you are required to mail a copy to all of your SHBP
enrolled employees in order to satisfy the requirement for proper
annual notification of dependents.
Enclosure
four* (PDF 30K) is the updated SHBP
Notice of Privacy Practices. A copy of the privacy practices
should be mailed along with the enclosures mentioned above, or
given to new employees when they enroll in any SHBP plan.
Enclosure
five* (PDF 29K) is the Certificate
of Group Health Plan Coverage which you may use to provide
an employee or dependent whose SHBP coverage is ending with evidence
of their prior health coverage in the SHBP.
Questions
about this memorandum should be directed to the SHBP Employer
Hotline at (609) 777-1082. Leave a message and a staff member
will return your call within one business day.
*To
print this enclosure in PDF, you must have Acrobat
Reader which is available free
from Adobe.