Certifying Officer Letters 2003

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Certifying Officer Letters 2003

December 30, 2003

To:        Certifying Officers
             Public Employees' Retirement System
             State Colleges and Universities and County Colleges

From:    William H. Kale
             Assistant Director, Client Services

Subject: Adjunct Professors

The Division of Pensions and Benefits is surveying employers regarding adjunct professors to gather information about employment patterns and pension enrollment. Please complete the attached survey using the most recent data available to you. If you are unable to access hard data, give us your best estimate and note on the survey that your response is based on estimated information. Please use an additional sheet of paper if you need to expand or explain any of your answers and reference the question number. We welcome any additional information you may provide about the use of adjunct professors at your institution. Please return the completed survey by January 30, 2004. You may fax your response to (609) 393-4606. You can find the survey below, or click here for a printable PDF version (size 31.8K - requires Acrobat Reader which is available free from Adobe). If you prefer, you may copy it into a Word document and e-mail your response to Mindy Smith-Sopko (mindy.smith-sopko@treas.state.nj.us).

Please direct any questions to Mindy at (609) 292-3405.

Thank you for your assistance.

Adjunct Professor Survey
Attention: Mindy Smith-Sopko

1. With how many individuals did you contract as adjunct professors during the last full academic year?   _________

2. Of those individuals, how many adjunct professors were contracted for in the fall semester _________, in the spring semester _________?

3. What percentage of your adjunct professors are enrolled in the Public Employees' Retirement System? _________
     How many of your adjuncts become eligible for the PERS each year? _________

4. Are adjunct professors contracted on a semester-by-semester basis, academic year basis, or both? _________

5. On average, how many credit hours does an adjunct professor teach per semester? _________

6. What is the maximum number of credits any of your adjunct professors teaches in a semester?_________

7. What percentage of your adjunct professors usually returns in the fall semester? ________

8. How many adjunct professors teach courses that do not last for the entire semester? _________

9. How many adjunct professors teach courses during the intersession? _________

10. How many adjunct professors teach courses during the summer session? _________

11. How many adjunct professors usually teach the full academic year? _________

12. If an adjunct professor works a short semester, is salary reported over the course of the short semester ______or is salary reported over the course of the full semester      ________?

13. With how many adjunct professors does your institution have a continuing relationship, that is, teach every semester for three or more years? ______

14. Are adjunct professors paid biweekly ______, monthly ______, quarterly ______, by the semester ______, or otherwise ___________________________?

_________________________	________________________
Name of College or University	Name of Person Completing Survey

____________________________	___________________________
E-Mail Address	Phone Number

To print this survey, click here: Adjunct Survey (31.8K)
To view or print this survey in pdf, you must have Acrobat Reader which is available free from Adobe.

December 12, 2003

TO:            State Biweekly Benefits Administrators
                  State Monthly Benefits Administrators
                County Community College Benefits Administrators

FROM:        Florence J. Sheppard
                   Deputy Director, Benefits Operations
SUBJECT: Implementation of Chapter 172, P.L. 2003 - Health Benefits for Part-Time Employees
This letter provides implementation instructions for offering employee-paid coverage in the State Health Benefits Program (SHBP) to eligible, part-time employees under the provisions of Chapter 172, P.L. 2003.

Eligibility

Part-time employees of the State and part-time faculty at institutions of higher education that participate in the SHBP are eligible for Chapter 172 coverage if they are members of a State-administered pension system. The definition of part-time employees of the State includes those paid through Centralized Payroll and employees of State colleges and universities, the Palisades Interstate Parkway Commission, the New Jersey Building Authority, the State Library, and the Commerce and Economic Growth Commission.

Coverage Available

Eligible part-time employees and faculty members can enroll in the SHBP's NJ PLUS medical plan and the SHBP's Employee Prescription Drug Plan. Eligible part-time employees and faculty members cannot enroll in prescription drug coverage unless they also enroll in the NJ PLUS plan.

Cost of Coverage

The employees will pay the full cost of their coverage including administration fees. (Premium Rate Charts for active, COBRA, and retired coverage are enclosed). The Division of Pensions and Benefits will bill enrolled employees on a monthly basis and payments must be made directly to the Division. Payment will not be made through payroll deductions.

Coverage Start Date

Initial coverage for all eligible part-time employees and faculty will begin on March 1, 2004. After this initial enrollment period, coverage will start in accordance with standard SHBP waiting period rules for State monthly employees. (Note for State Biweekly administrators: since all payments will be through direct billings, all coverage under Chapter 172 will be on a monthly, not a pay period, basis.)

Coverage for ten-month employees hired at the beginning of the fall semester will be effective on September 1^st. If the ten-month employee works the full ten months, coverage will be extended through July and August. Coverage for all twelve-month employees and for ten-month employees hired at any other time of the year will start after a sixty-day waiting period.

Employees who do not enroll when first eligible can then enroll only during the regular, annual, open enrollment period.

Enrollment Process

Chapter 172-eligible employees must complete a special enrollment application that is different than the standard State Health Benefits Enrollment Application. A master copy of the application is enclosed for your use. You may reproduce it for your eligible employees or you may direct them to use the application package that is available from the Division Web site (www.state.nj.us/treasury/pensions). After the employee completes the application, the employer benefits administrator must certify on the form the eligibility of the employee for the coverage. This is particularly important for part-time employees who are newly eligible for pension membership, but who have not yet been enrolled by the Division. The normal due date for submission of Chapter 172 applications is the 5^th of the month following the month of hire, the same as it is for full-time monthly employees. The certified applications for the coverage to begin on March 1, 2004 must be received at the Division of Pensions and Benefits by January 30, 2004.

Administration

Employees enrolled in Chapter 172 coverage will be enrolled under a separate location number for each employer as shown below.

Location numbers for State Monthly and Community College Employers: The location number for your employees enrolled under this program will be your current four digit location number followed by a dash (-) and the number 70. For example, if your current location number is 1240-00, your location number for part-time employees will be 1240-70. You will need to place this location number on all documents (SHBP Part-time Enrollment Application, Part-time COBRA Application, Transmission of Deletions form) requiring an employer location number. The Division will send you a separate Alpha List with this location number for employees enrolled under the program. You will need to consult this list to know if you must send the Health Benefits Bureau notice of termination of coverage when an employee terminates employment (in case we dropped their coverage because of failure to pay premiums) and also to determine whether a COBRA Notice will be required.

Location numbers for State Biweekly Employers: Currently, all State bi-weekly employers have Location #0001-00 for their SHBP full-time employee group. To identify your part-time employee group you are being assigned Location #0001-70, followed by your Payroll number. For example, if your Payroll number is #102, your Employer Location for this program is #0001-70, Payroll #102. You will need to place this location number on all documents (SHBP Part-time enrollment application, Part-time COBRA application) requiring an employer location number.The Division will send you a separate Alpha List with this location number for employees enrolled under the program. You will need to consult this list to know if you must send a COBRA Notice when a COBRA event occurs.

Termination of Coverage

The coverage end date is the first of the month following the first full month in which no salary was paid to the employee. State monthly employers and community colleges should report the termination of employee coverage on a Transmittal of Deletions form separate from that used for full-time employees.State biweekly employers do not need to notify the Division of termination of coverage; Centralized Payroll will do this. If a covered employee fails to pay required premiums, the Division will terminate the coverage as of the end of the last month for which premiums were paid.

If a Community College ends its participation in the SHBP, coverage for its part-time faculty members will end under this program as of the effective date of the end of participation in the SHBP.

COBRA

Coverage under Chapter 172 is subject to the same federal COBRA rules as apply to full-time employees with SHBP coverage. When an employee enrolls in the program, you are responsible for providing the employee and covered family members with an initial COBRA Notice. If the employee or family member loses health benefits coverage because of a COBRA event, you must send them a specific COBRA Notice for that loss of coverage. Loss of coverage due to non-payment is not a COBRA event. That is why you will need to consult the Alpha List to determine if the employee still has coverage upon termination of employment or upon going on an unpaid leave of absence.

HIPAA

Coverage under Chapter 172 is subject to the same federal Health Insurance Portability and Accountability Act (HIPAA) rules as apply to full-time employees with SHBP coverage. When an employee enrolls for coverage under Chapter 172, you are responsible for sending them the SHBP's Notice of Compliance with the HIPAA (that you should be sending with your initial COBRA notices). You are also required to send the Certificate of Coverage when an employee loses health coverage.

Information for Employees

A copy of Fact Sheet #66, SHBP Coverage for State Part-Time Employees, is enclosed. This fact sheet describes the Chapter 172 health coverage program and can be used to educate eligible employees.

Also enclosed for your use is a set of frequently asked questions about this benefit program. If you have any specific questions after reading this letter, the fact sheet, and the FAQ, contact our Office of Client Services at (609) 292-7524 or e-mail us at pensions.nj@treas.state.nj.us or write to the address on the letterhead.

Enclosures

Part-time Premium Rate Charts

Part-time Employee SHBP Application (25.7K) To view this application in pdf, you must have Acrobat Reader which is available free from Adobe.

Chapter 172 FAQ

Fact Sheet #66

December 1, 2003

TO:              State Benefits Administrators

FROM:        John D. Megariotis
                  Deputy Director, Finance
SUBJECT: State Transportation Benefit
You are invited to attend an orientation for benefits/payroll administrators of State employees paid through Centralized Payroll on the State's new Employee Transportation Benefit at the State Library Auditorium on Tuesday, January 6^th or Wednesday, January 7^th at 9:45 AM. Reservations are not required.

The State recently awarded a contract to TransitCenter, Inc. to administer the new employee benefit that will start early in 2004. TransitCenter is a nonprofit corporation that has been providing transportation benefit services to employers in the NY/NJ/PA region for over 15 years.

The new State benefit is being offered under the provisions of the Internal Revenue Code Section 132(f). It will allow employees to use pre-tax dollars to pay for mass transportation (train, bus, & vanpool) used to commute to and from work and for parking at work or at mass transit stations. The first benefits will be offered in April 2004 with enrollment taking place during the first 15 days of February. Unlike the Tax$ave Program (Section 125) that requires one annual election, the transportation benefit allows an employee to opt in and out or change amounts on a monthly basis.

The program has been designed in a similar manner as the Tax$ave Program to minimize your active involvement in the administration of this program. However, since you are one of the individuals in touch with and responsible for dealing with all your Department's other employees about their benefits, you will have to be aware of the transportation benefits being offered and how they will be administered. Additionally, you will have to coordinate any access of TransitCenter representatives to your employees during the initial enrollment period.

Staff from the Division of Pensions and Benefits, Centralized Payroll, and TransitCenter will be providing the orientations for all State benefits administrators on the new transportation benefit at the State Library Auditorium. The orientation is scheduled for two hours, but will go as long as needed to answer any questions raised. We will introduce you to the TransitCenter staff, who will administer this program for the State, and provide you information on:

The benefits being offered,

Which employees are eligible,

How your employees and the State will benefit from participation in this program,

The timing of the initial and on-going enrollments,

How and when money will be taken from employee paychecks for this program,

Where your employees will be able to go for information about the program,

How you can arrange for workshops for your employees on the benefit,

How your employees can enroll, and

How the benefits will be delivered to employees.

We look forward to your attendance at one of these sessions.

TO:               All Employing Agencies

FROM:          Frederick J. Beaver, Director

DATE:           November 19, 2003

SUBJECT:   Employer Liability- 2004 Pension Adjustments

The Pension Adjustment Act, Chapter 143, P.L. 1958, as amended and supplemented by Chapter 139, P.L. 1971 and Chapter 306, P.L. 1977, provides for cost-of-living increases to retired public employees and eligible survivors. Public employers of the Consolidated Police and Firemen's Pension Fund are liable for the cost of pension adjustments for their former employees or their survivors.

By law, the Director of the Division of Pensions and Benefits is to certify the amount which should be appropriated by each public employer for the fiscal year following the fiscal year in which the certification is made.

Enclosed is the invoice for the year 2004 in duplicate and a supporting list of employees and survivors that your location is responsible for paying the pension adjustment cost. The accounting for the 2003 appropriation, if any, is shown on the bill and any unexpended amount is credited against the amount due for 2004.

Please return one copy of the invoice with your remittance. Checks should be made payable to the State of New Jersey, Pension Adjustment Fund, and should be forwarded no later than March 30, 2004 by employers whose fiscal year runs from January through December and by July 30, 2004 for those whose fiscal year runs from July through June.

The payment of pension adjustments to your former employees or their survivors is contingent upon the receipt of funds from you. Therefore, it is imperative that you pay this invoice on or before the due date. The law requires that interest at 6% per annum be levied on the unpaid balance if payment is not received within 30 days of the due date. If the period of delinquency exceeds 30 days, the pension adjustments will be suspended and the pensioners will be notified of the reason for such suspension.

Please direct any inquiries to the Ledger Control/Financial Statements Section, Division of Pensions and Benefits, PO Box 295, Trenton, New Jersey 08625. The telephone number is (609) 984-4520.

Enclosures

November 6, 2003

TO:           Certifying Officers
                 Teachers' Pension and Annuity Fund
                 Public Employees' Retirement System

FROM:      John D. Megariotis
                Deputy Director, Finance

SUBJECT: Member Pension Contribution Rates

Effective January 1, 2004 the Teachers' Pension and Annuity Fund (TPAF) member contribution rate will return to the normal rate of 5%. Effective July 1, 2004, the Public Employees' Retirement System (PERS) member contribution rate for State employees will return to the normal rate of 5%. Therefore, please be sure to deduct the 5% contribution amount on the first pay-day on or after the effective date of the respective changes.

Rates for PERS local, the Prosecutors Part, Workers' Compensation Judges and Legislators will remain unchanged and stay at 3%, 7.5%, 5% and 5% respectively.

Reductions in member rates for the TPAF and PERS were authorized in statute and were based on the existence of surplus pension assets in the retirement systems. However, also per statute, when there are no longer surplus pension assets, the member rate for TPAF and PERS will return to the normal rate of 5%.

November 10, 2003

TO:            State Certifying Officers

FROM:       John D. Megariotis
                 Deputy Director, Finance
SUBJECT: New Pension Loan Policy
New Internal Revenue Service regulations, effective January 1, 2004, are requiring the Division of Pensions and Benefits to change its pension loan policies. Under the new IRS regulations, members who take multiple loans must repay the outstanding balance of the original loan, and all subsequent loans taken before the original loan is completely paid off, within a period not to exceed 5 years from the issuance of the first loan taken after January 1, 2004. Failure to repay the loan within the five-year period will result in the unpaid balance being declared a taxable distribution.

This change does not affect the first loan the member takes after January 1, 2004. However, if another loan is taken before the first loan taken after January 2004 is paid off, the new regulations may result in either a substantial increase in the member's repayment amount or it may even limit the amount that the member can borrow if the payroll deductions to repay the loan were to exceed the 25% of pay restriction in State law.

The attached letter provides an explanation of this policy change. We will be distributing copies of this letter for your employees through Centralized Payroll paycheck distribution for the November 21, 2003 pay date. If you prefer to distribute this information electronically, the letter can be downloaded from our Web site (www.state.nj.us/treasury/pensions). Use the Certifying Officer Letters link in the box at the right side of the home page.

November 10, 2003

TO:             Pension Certifying Officers

FROM:        John D. Megariotis
                  Deputy Director, Finance
SUBJECT: New Pension Loan Policy
New Internal Revenue Service regulations, effective January 1, 2004, are requiring the Division of Pensions and Benefits to change its pension loan policies. Under the new IRS regulations, members who take multiple loans must repay the outstanding balance of the original loan, and all subsequent loans taken before the original loan is completely paid off, within a period not to exceed 5 years from the issuance of the first loan taken after January 1, 2004. Failure to repay the loan within the five-year period will result in the unpaid balance being declared a taxable distribution.

This change does not affect the first loan the member takes after January 1, 2004. However, if another loan is taken before the first loan taken after January 2004 is paid off, the new regulations may result in either a substantial increase in the member's repayment amount or it may even limit the amount that the member can borrow if the payroll deductions to repay the loan were to exceed the 25% of pay restriction in State law.

The attached letter provides an explanation of this policy change. Please copy and give it to your employees. If you wish to distribute this information electronically, the letter can be downloaded from our Web site (www.state.nj.us/treasury/pensions). Use the Certifying Officer Letters link in the box at the right side of the home page.

November 5, 2003

To:        Certifying Officers
             Teachers' Pension and Annuity Fund

From:    William H. Kale
             Assistant Director, Client Services

Subject: Repeal of Rule: N.J.A.C. 17:3-2.6
             Ineligible Positions; Interim Appointment to Boards of Education

On October 2, 2003, the Teachers' Pension and Annuity Fund (TPAF) Board of Trustees repealed the rule, N.J.A.C. 17:3-2.6; Ineligible Positions; Interim Appointment to Boards of Education. This rule permitted a school board to appoint a retired TPAF member to any TPAF-covered position on an interim basis for up to six months without affecting the individual's retirement benefit.

The rule repeal was published in the New Jersey Register on November 3, 2003 and became effective on that date. You may also view the rule repeal on the Division's Home page (www.state.nj.us/treasury/pensions) by clicking the link in the box to "Proposed Rule Changes". Therefore, any retired member of the TPAF, with the exception of those who fall under the re-enrollment exception for certificated administrators and superintendents found at N.J.S.A. 18:66-53.2, who is employed, or accepts employment in a TPAF covered position, will have to be reenrolled in the retirement system. If over age 60, the member would also have to prove insurability before non-contributory and contributory group life insurance coverage as an active employee could be effective. The retirement allowance would be suspended and any benefits associated with that retirement would not be in effect until such time as the member retired again.

I have included Fact Sheet #28, Employment After Retirement, for your information. If you have any questions regarding this memorandum, please contact the Client Services Bureau at (609) 292-7524.

September 10, 2003

To:          Certifying Officers
               Police and Firemen's Retirement System, County Locations

From:     William H. Kale
               Assistant Director, Client Services

Subject:  Eligibility of the Title, Sheriff, for Enrollment in the PFRS

The PFRS Board of Trustees is conducting a review of the title, Sheriff, to determine whether the position is eligible for inclusion in the PFRS. Please answer the following questions regarding the specific duties and responsibilities of your Sheriff. Please use an additional piece of paper and reference the question number if you need to explain any of your answers. Return the completed information by October 6, 2003. You may also fax your response to (609) 393-4606 or e-mail your response to me at the following address: mindy.smith-sopko@treas.state.nj.us

Please direct any questions to Mindy Smith-Sopko at (609) 292-3405. Thank you for your assistance.

Attention:    Mindy Smith-Sopko

1. Is the Sheriff elected ________ or appointed _________? (Please check one, and if appointed please explain regarding terms of appointment including duration.)

2. Does the Sheriff's duties include day-to-day supervision of employees engaged in investigation, apprehension or detention activities? If yes, please explain.

      Yes _____ No _____

3. Does the Sheriff have Police Powers? That is, is the Sheriff required to engage in investigation, apprehension or detention activities if necessary?                                 Yes _____ No _____

4. Is the Sheriff authorized or required to carry a firearm? Yes _____ No _____

5. Does the Sheriff carry a firearm?  Yes _____ No _____

6. Is the Sheriff required to successfully complete the training requirements prescribed by N.J.S.A. 52:17B-66 et seq.?                                                                           Yes _____ No _____

7. Is the Sheriff subject to physical and mental fitness requirements of a police officer?
     Yes _____ No _____

8. Is the Sheriff's position full-time?  Yes _____ No _____

9. Is the Sheriff's position permanent? Yes _____ No _____

10. Is your Sheriff enrolled in the PFRS? Yes _____ No _____

11. If so, what position did your Sheriff previously hold? ________________________________

12. Would your answers to questions 1 through 9 be the same for your previous two sheriffs? If no, please explain what is different.

      Yes _____ No _____

____________________________________	________________________________
County	Certifying Officer
____________________________________	________________________________
E-Mail Address	Phone Number

September 5, 2003

TO: State Monthly Human Resource Directors/Benefits Administrators

FROM: Florence J. Sheppard
Assistant Director for Health Benefits

SUBJECT: SHBP Open Enrollment 2003 - State Monthly Employers

The State Health Benefits Program (SHBP) Open Enrollment period for all State employees will begin on October 1, 2003 and end on October 31, 2003. All changes to coverage made during this open enrollment will be effective on January 1, 2004 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 must arrive at the Health Benefits Bureau to be effective for the start of the new plan year is November 7, 2003.)

Enclosed is a milestone chart that lists the critical dates of the 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.

In keeping with its current policy, the SHBP will not provide health fairs during this year's Open Enrollment.

RATES FOR 2004

The State Health Benefits Commission has approved new health and dental rates for the 2004 plan year. These rates are based upon the recommendation of the Commission's actuarial consultant, Milliman USA. Since the SHBP self-funds most of its plans, the claims experience used in projecting 2004 costs are based upon the actual claims experience of the group. Effective January 1, 2004, SHBP health plan rates for the State Active Group will see the following aggregate percentage of increase:

PLAN TYPE

RATE INCREASE
(Aggregate percentage)

NJ PLUS

12.2%

Traditional Plan

4.2%

HMO Plans

8.4%

State Prescription Drug Plan

15.5%

Dental Provider Organization (DPO) Plan

5.4%

Dental Expense Plan

No Increase

PREMIUM SHARING

Unions representing most State employees have new contracts in effect that provide for premium sharing arrangements with the State. These arrangements remain unchanged from the last contract. 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 enrolled in the Traditional Plan.

These percentages apply regardless of salary level or date of hire.

PLAN INFORMATION

Active Employees

Certain employees hired on or after July 1, 2003, are prohibited from enrolling in the Traditional Plan. This group includes non-aligned employees and State employees covered by the following bargaining organizations: CWA, AFSCME, and the IFPTE. The tentative agreement between the State and the AFT also includes this provision, but has not yet been ratified. Once ratified, this provision will also apply to employees represented by the AFT.

No new enrollments will be allowed for Unity Dental Health Services, Inc., a Dental Plan Organization currently participating in the State Employee Group Dental Program. The State Health Benefits Commission has frozen new participant enrollment in Unity Dental. Therefore, for calendar year 2004 - including the 2003 Open Enrollment period - no one will be allowed to newly enroll in Unity Dental. Current members may remain enrolled.

The Dental Expense Plan and all participating Dental Plan Organizations will now be covering services described by new Current Dental Terminology (CDT) codes issued by the American Dental Association to identify and standardize dental procedures (see "Dental Program Handbook").

Retirees

In accordance with the provisions of the retiree pilot project agreement, effective January 1, 2004, for the Retiree Prescription Drug Plan under NJ PLUS and the Traditional Plan, retail copayments for a 30-day supply will increase to $6 for generic drugs; $13 for preferred brands; and $26 for all other brand prescription drugs. The mail order copayments for a 90-day supply will increase to $6 for generic drugs, $19 for preferred brands, $32 for all other brand prescription drugs. The out-of-pocket maximum will increase to $474.

Mail order prescription drug copayments for retirees participating in Oxford Health Plans now meet the standard three-tier approach set for HMO plans that are part of the SHBP. Beginning January 1, 2004, the copayments for a 90-day mail order supply are as follows: $5 for generic drugs; $10 for preferred brands; and $20 for all other brand prescription drugs.

Other than the items listed above, there are no other changes to plan benefits for this Open Enrollment. Employees, however, should be made aware that plan benefit changes, based on collective bargaining agreements, are scheduled for July 2004. These will be specifically addressed through a Special Open Enrollment in the Spring of 2004.

DENTAL PROGRAM 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, 2003; they cannot make a dental plan change during this open enrollment period.

OPEN ENROLLMENT INFORMATIONAL MATERIALS

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 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. 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 PLAN COMPARISONS AND HANDBOOKS - Because there are no major plan changes for this Open Enrollment, employers should continue to use their supplies of the current SHBP Summary Program Description booklet, SHBP Plan Comparison Summary chart, and health and prescription drug plan member handbooks. These publications are not being revised for the Open Enrollment.

DENTAL PROGRAM HANDBOOK - Employers will be receiving a supply of the State Employee Group Dental Program Member Handbook which is being revised for this open enrollment to include new Current Dental Terminology (CDT) codes issued by the American Dental Association to identify and standardize dental procedures. The Health Insurance Portability and Accountability Act of 1996 (HIPAA) mandates use of standard procedure codes in electronic processing. The new CDT codes were effective January 1, 2003 but will be implemented October 16, 2003 by the State Employee Group Dental Program plans. After that date, all participating dental plans must process all claims using only the CDT codes.

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 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 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$ave) Open Enrollment runs concurrent with the SHBP Open Enrollment (October 1 - 13, 2003). Tax$ave is a benefit program, available to State employees who are eligible for the SHBP. Tax$ave can save your employees tax money by paying health and dental benefit premiums and eligible unreimbursed medical and/or dependent care expenses from before-tax dollars. See the Tax$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.

ADDITIONAL INFORMATION

If you have any questions about the Open Enrollment 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 Open Enrollment a success for your employees.

Enclosure:

2003 SHBP Open Enrollment Milestone Chart

Health and Dental Plan Rate Charts/Flier

Health / Dental Plan Marketing Contacts

August 28, 2003

TO: State Health Benefits Program Participating Local Education Employers

FROM: Florence J. Sheppard
Assistant Director for Health Benefits

SUBJECT: SHBP Open Enrollment 2003 - Local Education Employers

The State Health Benefits Program (SHBP) Open Enrollment period for local Board of Education employees will begin on October 1, 2003 and end on October 31, 2003. All changes to coverage made during this open enrollment will be effective on January 1, 2004.

Completed employer certified health benefit applications should be forwarded to the Health Benefits Bureau as soon as they are received from employees. (The last day that certified applications must arrive at the Health Benefits Bureau to be effective for the start of the new plan year is November 7, 2003.)

Enclosed is a milestone chart that lists the critical dates of the 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.

In keeping with its current policy, the SHBP will not provide health fairs during this year's Open Enrollment.

RATES FOR 2004

The State Health Benefits Commission has approved new rates for the 2004 plan year. These rates are based upon the recommendation of the Commission's actuarial consultant, Milliman USA. Since the SHBP self-funds most of its plans, the claims experience used in projecting 2004 costs are based upon the actual claims experience of the group. Effective January 1, 2004, SHBP health plan rates for the Local Education Active Group will see the following aggregate percentage of increase:

	NJ PLUS	Traditional Plan	HMO Plans (Composite Change)	Employee Prescription Drug Plan
Local Education Employers with Separate Rx Coverage	8.2%	3.3%	10.8%	16.9%
Local Education Employers without Separate Rx Coverage	10.4%	8.1%	10.8%	N/A

PLAN INFORMATION

Mail order prescription drug copayments for members participating in Oxford Health Plans now meet the standard three-tier approach set for HMO plans that are part of the SHBP. Beginning January 1, 2004, the copayments for a 90-day mail order supply are as follows: $5 for generic drugs; $10 for preferred brands; and $20 for all other brand prescription drugs.

In accordance with the provisions of the retiree pilot project agreement, effective January 1, 2004, for the Retiree Prescription Drug Plan under NJ PLUS and the Traditional Plan, retail copayments for a 30-day supply will increase to $6 for generic drugs; $13 for preferred brands; and $26 for all other brand prescription drugs. The mail order copayments for a 90-day supply will increase to $6 for generic drugs, $19 for preferred brands, $32 for all other brand prescription drugs. The out-of-pocket maximum will increase to $474.

Other than the items listed above, there are no other changes to plan benefits for this Open Enrollment.

OPEN ENROLLMENT INFORMATIONAL MATERIALS

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, 2004 through December 31, 2004.

HEALTH CAPSULE - The Health Capsule newsletter announces the SHBP Open Enrollment period to employees and presents important information and changes that may affect their benefit selection. The newsletters are scheduled for delivery to 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 notfor member services. Please do notgive these telephone numbers to your employees.)

HEALTH PLAN COMPARISONS AND HANDBOOKS - Because there are no major plan changes for this Open Enrollment, employers should continue to use their supplies of the current SHBP Summary Program Description booklet, SHBP Plan Comparison Summary chart, and health and prescription drug plan member handbooks. These publications are notbeing revised for the Open Enrollment.

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 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 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 Open Enrollment or the informatio