Guide to Health
Benefits in Retirement
Full-time employees covered under the Council’s master Agreement, and their dependents, are eligible for health benefits coverage under the State Health Benefits Plan (SHBP) in retirement, so long as the employee has earned 25 years of creditable service. Your contribution, if any, depends on the years of creditable service you have earned and the dates on which you earned them.
Your Human Resources office should have a record of your service accrual at your institution. Review your records for accuracy. There can be other factors that may add to or subtract from your years of creditable service such as any prior public employment or unpaid breaks in service. If you are in PERS or TPAF you can purchase service credit whereas ABP members cannot.
The service accrual dates below determine your medical and prescription health care premium costs in retirement, if any, as of June 30, 2015.
25 Years by July 1, 1997
The State assumes the full cost of health benefits coverage AND the cost of charges under Part B of Medicare for you and your spouse, but not including survivors.
25 Years on or after July 1, 1997 & on or before June 30, 2000
The State assumes the full cost of your health benefits premium for anything except the Aetna Freedom10 or NJ Direct10 plans. If you elect to enroll in these plans you must pay a premium share. Medicare Part B is reimbursed up to a $46.10 per month for both you and your spouse.
25 Years on or after July 1, 2000 & on or before June 30, 2007
The State assumes the full cost of your health benefits premium for anything except the Aetna Freedom10 or NJ Direct10 plans. If you elect to enroll in these you must pay a higher premium share. Medicare Part B is reimbursed up to a $46.10 per month for both you and your spouse.
25 Years on or after July 1, 2007 & on or before June 30, 2011
The State assumes the full cost of your health benefits premium so long as you enroll and participate in the State’s Retiree Wellness Program, otherwise you will contribute 1.5% of your pension benefit towards your health benefit costs. This contribution is based on a pension benefit deemed equal to 50% of your highest annual base salary as certified by your institution.
If You Had 20+ Years on June 28, 2011 & Retire with Your 25 Years after July 1, 2011
You will contribute 1.5% of your actual monthly retirement benefit toward the cost of health benefits coverage.If You Had Fewer than 20 Years on June 28, 2011
You contribute a percentage of the premium cost, ranging from 3 to 35%, for health benefits coverage. Your contribution will be based on your actual retirement allowance, but cannot be less than 1.5% of your actual annual pension benefit. See the chart below for more information.
Application and Enrollment
Continuation of your health benefits into retirement is not automatic. Your Human Resources office should be able to provide the application forms for your retiree health benefits. A letter offering health benefits enrollment should be sent to you approximately two months before your date of retirement.If you fail to enroll within 60 days of your date of retirement, you will have missed the window for enrollment.
YOU CANNOT ENROLL AT A LATER DATE.
Helpful Links and Resources
Contribution Rates for Retirees with Fewer Than 20 Years on June 28, 2011
PARENT/CHILD COVERAGE
back to Determining Health Benefit Costs
