NJ Education Report

NJSBA Applauds PERC Decision on Employee Health Insurance Contributions

TRENTON, August 20, 2015—The New Jersey School Boards Association today commended a recent New Jersey Public Employment Relations Commission (PERC) decision on employee contributions to health benefit premiums under the 2011 pension and health benefit reform act (“Chapter 78”). 

Provisions of Chapter 78 that require a certain level of employee health benefit contributions will “sunset” this year in approximately one-third of the state’s school districts. At issue have been two points, according to NJSBA: the status of those contribution levels in school districts with multi-year collective bargaining agreements that began prior to the sunset date for these provisions; and the negotiability of employee health benefit contributions in future contracts. 

“By ensuring that public employees pay their fair share toward health benefits, Chapter 78 has saved boards of education millions of dollars, which can be applied toward educational programming and controlling property taxes,” explained Dr. Lawrence S. Feinsod, NJSBA executive director. “PERC has clarified the fact that these contribution levels are not automatically eliminated and must remain in effect for the duration of any contract that began prior to the sunset of Chapter 78.