Pension Loans: The pension loan interest rate for calendar year 2024 has been determined to be 11 percent per year on the declining balance of the loan. The administrative processing fee remains at $15.00 per loan. The interest rate is determined using the Prime Rate (8.5 percent) plus 2.5 percent. The administrative processing fee is set annually to fund costs associated with administering the pension loan program. For additional information, see the Pension Loans webpage.
Health Benefit Premiums for those covered under the SEHBP will see a 11% increase in your premium starting January 1, 2024 for Medical and RX through the State (9.3% if Medical only). For those covered under NJ Direct 10 or 15, you will therefore see a corresponding increase in your ‘cost share’. Those covered under the NJEHP or t GSHP will only see an increase in your ‘cost share’ if your salary increased on January 1st since your cost share under Ch 44 is a percentage of your salary where the other two plans cost share is a percentage of the premium.
Wellness Programs through the SEHBP:
- NJWELL is a wellness program offered to active employees of the public sector who participate in the State Health Benefits Program (SHBP) or School Employees’ Health Benefits Program (SEHBP) and their covered spouses/partners. Learn more about NJWELL.
- Retirees covered under the Aetna Medicare Advantage Program can find more about the Retiree Wellness Rewards Program at:
Social Security Changes For 2024:
- Beginning January 1, 2024 the Social Security Tax on Salaries maxes out at $168,600. If you are a Tier 2-5 member of the pension system that means that if your salary exceeds $168,600 it is only pensionable up to that salary. Anything you earn over that amount would fall under the provisions of the DRCP Plan. Your pension contribution is 7.5% of your salary and the DCRP contribution is 5% of your salary that exceeds the SS Max.
- Retirees will see an 3.2% cost of living adjustment (COLA) starting in 2024. For those who are retired, receiving Social Security benefits and under their full retirement age ( of 66/67) your annual income limit has been raised to $22,320/ yer or $1,860/month.
Medicare Premiums for 2024 have increased from $164.90 in 2023 to 174.70/month. For those who pay the IRMAA amount, keep in mind that you only get reimbursed for the Medicare Premium in your pension check (if you get free or cost share health benefits) and that a letter from the Division of Pensions should be coming out in March/April explaining how you can get reimbursed for the IRMAA amount.
NJASBO will send information out to all of our retired members once the State puts the information out on how to file for the IRMAA Amount. We also plan to offer a workshop on how to file for the IRMAA reimbursement.