Pension and Health Benefit Fall 2020 Update

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Pension Contribution


Considering the state’s financial picture, the FY 21 Budget includes a $4.7 Billion dollar payment into the pension system which is only slightly lower than the original budget proposal of $4.9 Billion.  


Ch 44 – Health Benefit Enrollment:


During the month of October, all staff will be required to make their health benefit selection known to their employer.  The new NJEHBP plan begins on January 1.  The NJEHBP plan is the default plan for all school employees. What that means is that if you want to select/keep one of the other plans that your district offers you – You Will Need To Complete The Enrollment form.  This is true whether or not your district provides your health plan through the SEHBP or a Private Insurer.  If you fail to do that you will be moved into the NJEHBP Plan.


SEHBP Districts:


All SEHBP Districts will be able to select from the three plans that are available:

  • NJ Direct 10
  • NJ Direct 15 

A comparison of the the three plans is found at the link below:


Your Cost share contribution for the NJ Direct 10 or 15 plan remains the percentage of the premium that you have been paying through your negotiated contract.


The NJEHP cost share is based on your pension and plan selection (Single, Member/Spouse, Parent/Child or Family).  Your cost share is a percentage of your pension.  In many cases, you will save on your cost share with the new plan.


Non-SEHBP Districts:


Employees who are covered by insurance not in the State Plan (Non-SEHBP) will be offered the opportunity to enroll in the new plan through their provider at the percentage of salary contribution chart covered by the new law.  However, you Will Need To Complete The Enrollment form in order to keep your present plan, otherwise you will be moved into the new NJEHBP Plan which is the default.


New Employees:

Any employee new to your district as of July 1, 2020 will be enrolled in the New NJEHBP as of January 1, 2021 and their cost share will be under the new % of salary.


The following Link will take you to the State Health Benefit FAQ on the new law.