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  • NJ A2850
  • Limits payments for unused sick leave earned after effective date by public officers or employees represented by union; for all public employees, limits vacation leave carry-forward and requires suspension and forfeiture of certain supplemental compensation.
Introduced
(2/16/2016)
In Committee
(2/16/2016)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill prohibits the payment by a public employer of supplemental compensation for unused sick leave that is earned after the bill's effective date by a current or future State, local government, or board of education officer or employee who has a majority representative for collective negotiations purposes. Supplemental compensation for any time earned prior to that date will be payable as under current law. Under the bill, if the supplemental compensation based upon accumulated unused sick leave earned prior to the effective date is $7,500 or more at the time of retirement, accumulated unused sick leave earned after the effective date will have no monetary value. If the supplemental compensation based upon accumulated unused sick leave earned prior to the effective date is less than $7,500 at the time of retirement, upon the retirement of an officer or employee who is eligible to receive after retirement health care benefits coverage that is fully or partly paid by the employer or a public entity, the employer will determine the dollar value of the number of days of unused sick leave earned after the effective date of the bill or after the expiration of a collective negotiations agreement with a relevant provision applicable to that officer or employee in effect on that date, without interest, which cannot exceed $7,500 in the aggregate taking into account the value of the sick leave earned prior to the effective date. For local government and education officers and employees, the dollar value will be calculated using the number of such days that may be used for the calculation and the per diem or other rate, if any, that have been agreed upon through collective negotiations between the employer and the majority representative of the relevant officer or employee, if the agreement contains provisions regarding these items. For State employees, the value will be calculated in accordance with current law. In addition to any other contributions by the employer, the employer will make contributions in equal monthly payments for a period of five years, not to exceed $7,500 in the aggregate, from appropriations which will be applied toward the contributions for health care benefits coverage required of such retired officer or employee, whether as a percentage of premium, percentage of the retirement allowance, or a specific amount, to the extent necessary to pay such contributions. The remaining amount, if any, necessary to pay such contributions will be contributed by such retired officer or employee. This would also apply to the survivor of a deceased retired officer or employee if the survivor has been provided with health care benefits coverage, by law or contract, that is fully or partly paid by the employer or a public entity. Upon the retirement of an officer or employee who is not eligible to receive, or for whom the employer or a public entity does not provide, health care benefits coverage after retirement that is fully or partly paid by the employer or a public entity, the provisions of the above paragraph will not apply and a Health Reimbursement Arrangement, or a substantially similar account, by the employer will be established and governed in accordance with the requirements of the Internal Revenue Service and the Internal Revenue Code. The purpose of the arrangement will be for the employer to reimburse the retiree or eligible person for qualified medical expenses incurred by the retiree up to the dollar value of the accumulated unused sick leave, if any, as computed in accordance with a collective negotiations agreement in the aggregate, but only up to one fifth of that amount annually for five years. The arrangement will reimburse the retiree or eligible person for copayments, coinsurance, deductibles, and services as set forth in the plan document and permitted by the Internal Revenue Service and Code. The plan document will provide for the carry forward of the total amount of the unused reimbursement from year to year for five years. Unused reimbursement will not be payable as cash to the retiree or the retiree's estate or beneficiaries. The arrangement will be available to the survivor of the retiree, in accordance with the Internal Revenue Service or Code, if permitted by law or a collective negotiations agreement. If the officer or employee is a veteran of the Armed Forces of United States and has been issue a certificate of such veteran status by the Adjutant General of the Department of Military and Veterans' Affairs, the veteran will receive from the employer supplemental compensation in an amount, if any, as computed in accordance with a collective negotiations agreement and as limited as described above and will not be eligible for an individual Health Reimbursement Arrangement. All officers and employees in service on the effective date of the bill who have a contractual right to receive, if eligible, supplemental compensation for accumulated unused sick leave will continue to have that contractual right. In addition, this bill limits the carry-forward of unused vacation leave to one successive year only for current State, local government, or board of education officers and employees whether they have a majority representative for collective negotiations purposes or do not have such a representative. Also, for current and future State, local government, or board of education officers and employees whether they have a majority representative for collective negotiations purposes or do not have such a representative, a payment for accumulated unused sick leave or vacation leave will be suspended if such officer or employee is indicted for certain crimes that involve or touch the office or employment. The payment will be forfeited if such an officer or employee is convicted. The bill requires the Attorney General to develop guidelines or establish procedures to provide the appropriate governmental agency or public employer with notice of any indictment or conviction of a current or former officer or employee. Certain provisions of the bill would apply on the effective date or upon the expiration of a collective negotiations agreement or an individual contract of employment with a relevant provision in effect on the bill's effective date. The bill clarifies that its provisions with regard to accumulated unused sick leave earned after the effective date, the suspension or forfeiture of payments for unused sick leave or vacation leave, and the carry forward of vacation leave will apply to all officers and employees of independent State authorities and of public institutions of higher education in this State. The bill will take effect the first day of the second month after enactment.
Not specified
Introduced, Referred to Assembly State and Local Government Committee  (on 2/16/2016)
 
 

Date Chamber Action Description
2/16/2016 A Introduced, Referred to Assembly State and Local Government Committee
Date Motion Yea Nay Other
None specified