Bill
Bill > S1603
summary
Introduced
01/09/2024
01/09/2024
In Committee
01/09/2024
01/09/2024
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill directs the Division of Budget and Accounting, also known as the Office of Management and Budget, in the Department of the Treasury to establish a fringe benefit rate for public institutions of higher education that reflects the actual cost of employee fringe benefits. The separate fringe rate is to first apply in FY 2025. Currently, the fringe benefit rate used is not specific to employees at the State's public institutions of higher education, but to State employees in general. Many State employees are enrolled in the Public Employees' Retirement System (PERS), while many of the employees employed by State public colleges and universities are enrolled in the less costly Alternative Benefit Plan (ABP) or are not enrolled in a retirement plan. This results in a difference between the actual cost of benefits and the amount paid to the State.
AI Summary
This bill directs the Division of Budget and Accounting, also known as the Office of Management and Budget, within the Department of the Treasury, to create a distinct fringe benefit rate specifically for State colleges and universities, starting in the fiscal year 2025. This new rate will accurately reflect the real costs associated with employee retirement programs at these higher education institutions and will be applied to all federal, dedicated, and non-State funded programs. This change is significant because the current fringe benefit rate is a general one applied to all State employees, and it doesn't account for the fact that many college and university employees participate in the less expensive Alternative Benefit Plan (ABP) or are not enrolled in any retirement plan, unlike many other State employees who are in the Public Employees' Retirement System (PERS). This discrepancy has led to a difference between the actual cost of benefits and the amount being paid.
Committee Categories
Government Affairs
Sponsors (7)
Jim Beach (D)*,
Andrew Zwicker (D)*,
Patrick Diegnan (D),
Linda Greenstein (D),
Gordon Johnson (D),
Nellie Pou (D),
Teresa Ruiz (D),
Last Action
Transferred to Senate Higher Education Committee (on 01/25/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S1603 |
| BillText | https://pub.njleg.gov/Bills/2026/S2000/1603_I1.HTM |
| BillText | https://pub.njleg.gov/Bills/2024/S2000/1603_I1.HTM |
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