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Bill > A1306


NJ A1306

NJ A1306
Removes certain part-time elected public officials from eligibility for employer-paid health care benefits coverage; makes elected public officials ineligible for payments for waiving health care benefits coverage; codifies Pension Fraud and Abuse Unit.


summary

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

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill limits eligibility for health care benefits coverage for elected public officials of a municipality or county to those elected public officials whose hours of work are fixed at 35 or more per week. This limitations applies to counties and municipality that do not participate in the New Jersey State Health Benefits Program (SHBP). The limitation is the same as the current eligibility requirement for health care benefits coverage in the SHBP. Elected public officials currently receiving health care benefits coverage may continue to receive such coverage as long as they remain eligible prior to the effective date of the bill and continuously thereafter. The bill also makes elected public officials who choose to waive health care benefits coverage ineligible for payments for such a waiver. Such payments are currently permitted for certain public employees by public employers that participate and that do not participate in the SHBP. This bill codifies the Pension Fraud and Abuse Unit (PFAU) within the Department of the Treasury, which was established by executive order in 2013 to prevent and investigate cases of intentional deception or misrepresentation that result in an unauthorized benefit to a member or to some other person from the State-administered retirement systems and benefits programs. This includes, but is not limited to, disability pension claims and improper participation in the retirement systems and other benefit programs. This bill also provides subpoena power to the PFAU to assist the unit during investigations. According to an investigative report issued by the State Comptroller, the PFAU has inadequate statutory authority to compel public employers to comply with requests for information during investigations. Codifying the unit will result in more effective investigations.

AI Summary

This bill modifies eligibility for health care benefits for certain elected public officials and codifies the Pension Fraud and Abuse Unit (PFAU). Specifically, it limits eligibility for health care benefits for elected officials in counties and municipalities not participating in the State Health Benefits Program (SHBP) to those whose work hours are fixed at 35 or more per week, aligning with existing SHBP eligibility rules, though current beneficiaries can maintain coverage if continuously eligible. The bill also prohibits elected public officials from receiving payments for waiving health care benefits, regardless of whether they previously waived coverage. Furthermore, it formally establishes the PFAU within the Department of the Treasury, granting it subpoena power to investigate fraud and abuse in the State's pension and benefits systems, a unit previously created by executive order to prevent intentional deception leading to unauthorized benefits, such as fraudulent disability pension claims.

Committee Categories

Government Affairs

Sponsors (3)

Last Action

Introduced, Referred to Assembly State and Local Government Committee (on 01/13/2026)

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