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Bill > A1815


NJ A1815

NJ A1815
Establishes fringe benefit rate for State colleges and universities.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 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, which is part of the Department of the Treasury and also known as the Office of Management and Budget, to create a specific fringe benefit rate for New Jersey's public colleges and universities starting in the 2025 fiscal year. This new rate will accurately reflect the real cost of employee benefits, particularly retirement programs, at these institutions, unlike the current general rate applied to all state employees. This change is important because many college and university employees are enrolled in the Alternative Benefit Plan (ABP) or no retirement plan at all, which are generally less expensive than the Public Employees' Retirement System (PERS) that many other state employees participate in, leading to a discrepancy between the actual cost of benefits and what is currently being paid.

Committee Categories

Education

Sponsors (3)

Last Action

Introduced, Referred to Assembly Higher Education Committee (on 01/13/2026)

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