Bill > A4578

Introduced Session

This bill requires the proportional distribution of payment between employers for health benefit payment obligations for certain retirees. This bill requires the State and local government entities and institutions of higher education to distribute post-employment health benefit payment obligations proportionally between employers if a retiree who qualifies for retirement health benefits worked for more than one State, local, or higher education employer, or is a retirant of a State-administered retirement system. For example, if a retiree worked for 20 years at a State department and 20 years at a qualifying municipality, the department and the municipality will equally share the employer-paid portion of the cost of health benefits coverage for the retiree and any dependents in retirement. Under current law, local government entities are not required to provide employer-paid health benefits coverage in retirement, with some exceptions for certain retirees and certain municipalities. However, a local government entity may choose to provide such benefits, and assume the liability for all or a part of such coverage, in certain cases by its own discretion or by ordinance of the appropriate governing body. Under the bill, if a local government entity chooses to provide such benefits, then the employer contribution would be required to be proportional. This bill does not require local government entities which have not opted to provide employer-paid health benefits coverage in retirement to contribute to the cost such coverage. This bill also will not alter any applicable binding collective negotiations agreement in force prior to the effective date of this bill.

AI Summary

Committee Categories

Linda Carter (D)*,  Verlina Reynolds-Jackson (D)*, 

Introduced, Referred to Assembly State and Local Government Committee (on 03/10/2026)

Official Document