Bill > A3868

Introduced Session

This bill requires that, beginning with the State fiscal year 2023, the Director of the Division of Budget and Accounting in the Department of the Treasury will establish a separate fringe benefit rate for State public higher education institutions. The separate fringe benefit rate will reflect the actual cost of employee retirement programs at those colleges and universities, and will be applied to all federal, dedicated, and non-State funded programs. The payments to the State in accordance with the new rate established by the director by the payments that would be required using the rate calculated in accordance with the process used prior to the effective date of the act by more than $47 million of the difference between the total amount as calculated using the new rate and as calculated using the rate in accordance with the process used prior to the effective date of this bill. Under current law, the fringe rate used is not specific to employees at the State's public colleges and universities, but to State employees in general. This can cause inequities as many State employees are enrolled in the Public Employees' Retirement System (PERS), while many of the employees employed by State public colleges and universities as enrolled in the Alternative Benefit Plan (ABP). The bill also amends current law to change the eligibility of a part-time faculty member, including part-time lecturers, faculty holding fractional appointments, and adjunct faculty members, employed by a public institution of higher education in the State to enroll in two plans offered by the State Health Benefits Program. Under the bill a part-time faculty member would be considered a full-time faculty member if they satisfy the following conditions: (a) during the immediately prior fiscal year, July 1 through June 30, the part-time faculty member taught courses totaling at least 24 credits at one or more public institutions of higher education during the summer session, fall semester, winter session, or spring semester; and (b) the part-time faculty member is appointed to teach courses totaling at least 12 credits between July 1 and December 31 of the current fiscal year. The bill provides an opportunity to meet the conditions at separate times and subsequently enroll in SHBP. For example, under the bill if a part-time faculty member taught courses totaling at least 24 credits between July 1, 2021 and June 30, 2022, and on August 15, 2022 the faculty member receives notice of appointments to teach 12 credits between September 1, 2022 and December 31, 2022, then the part-time faculty member will be deemed eligible to enroll in the SHBP effective September 1, 2022 and health care benefits will continue through September 30, 2023. If during the 2023 fiscal year (July 1, 2022 through June 30, 2023), the part-faculty member again satisfies the condition of teaching 24 credits, the part-time faculty member's health care benefits will continue through September 30, 2024, provided the faculty member also satisfies the condition of being appointed to teach 12 credits between July 1, 2023 and December 31, 2023. Under current law, adjunct faculty members are eligible for enrollment in the SHBP if the employer is participating in the SHBP and the adjunct is enrolled in the pension system, but the employer is not responsible for any cost associated unless a binding collective negotiations agreement requires the employer to assume some or all of the SHBP cost. The bill also specifies that the State Health Benefits Commission will promulgate rules to bill public institutions of higher education employing part-time faculty who satisfy the eligibility requirements for enrollment in the SHBP. Billing will be proportional based on the number of credits a part-time faculty member taught in the prior fiscal year at a public institution of higher education. In addition, the commission will promulgate rules to designate the public institution of higher education that will have responsibility for enrolling the part-time faculty member in the SHBP. 12/21/2023

AI Summary

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Craig Coughlin (D)*, 

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

Official Document