Local governments are facing double-digit increases in the state pension plan contribution rate for 2023, based on information released earlier this month by the Pension and Benefits Divisionaccording to New Jersey Counties Association.
The increases will be on top of the unprecedented 23% increase in health insurance rates for local governments and their employees participating in the National Health Benefits Program, the county group said in a press release on Friday.
The county group and the New Jersey State Municipal League urge the government. Phil Murphy to use money from the American Rescue Plan Act and other unrestricted reserve funds or surpluses to temporarily offset increases in health care costs.
The Murphy administration and public sector unions representing most state employees reached an agreement that caps increases in state employees’ cost share to just 3%, state taxpayers absorbing additional costs.
But county and local government employees will see their share of costs rise much more.
The departmental group and League of Municipalities are also urging the administration to extend the open enrollment period, which is set to expire at the end of the month, by an additional 30 days, to give counties and municipalities more time to educate employees about pending raises and the opportunity to employees choose cheaper plans.
“It is important to note that any immediate relief must be accompanied by long-term structural reforms such as the adoption of benchmark-based pricing to effectively manage costs, incentivize employees to select lower cost and modify co-payments for specialists and emergency care to further reduce long-term expenses,” the county group said.
The groups support S-3033, a bill to appoint county and municipal officials to the National Health Benefits Commissionwho sets the prices.
Atlantic County the government faces a $4.2 million rising health insurance costs for its workers in its upcoming budget, County Executive Denis Levinson said.
The increase will result in a county tax increase of approximately 1.17 cents by $100 assessment to cover current employees, and approximately 1.77 cents by $100 if all vacancies are filled, according to Levinson.
For a house valued at $300,000raising taxes just to cover rising health insurance costs would be $35 at $53.
State plan school districts are also facing double-digit percentage increases in health plan costs, Atlantic County Commissioner Amy Gatoof Township of Hamiltonsaid at a recent board meeting.
Costs per asset Atlantic County employees will move from $27.7 million in 2022 at $31.7 million in 2023 ($33.7 million if all vacancies are filled); while costs for retired members will increase to $2.8 million in 2023 from $2.6 million in 2022, according to Levinson.
The National Health Benefits Commission based the increases on actual medical care use by participants in 2021, according to information on its website.
New Jersey’s costs are rising more than twice the rate of other states, according to an analysis by nj.com.
Levinson predicted an overall increase of $4.2 million health benefit costs for Atlantic County in 2023 on the basis of the existing workforce, and an additional $2 million if vacancies are filled.
“Dues for active members will also increase by $4.7 million at $5.1 million“, Levinson said.
Atlantic County the commissioners adopted a $236.8 million Budget 2022 in April which allowed a slight reduction in the property tax.
The county joined the National Health Benefits Commission in 2003.
JOURNALIST: michelle brunetti [email protected]
