Bulletin from the New Jersey State Library

The New Jersey State Library reports the Division of Pensions and Benefits has released initial guidance on the pensions, SHBP, and SEHBP elements of the law on its website at www.nj.gov/treasury/pensions/reform-2011.shtml.

• Included in the information is the increased cost of PERS: The PERS employee pension contribution rate is increased from 5.5% to 6.5% of salary.
• An additional increase to be phased over the next 7 years will bring the total pension contribution rate to 7.5% of salary. The initial increase is effective with Pay Period #21 (October 14, 2011 check date) for State employees paid through the State Centralized Payroll Unit, and with the first payroll check to be paid on or after October 1, 2011, for all other employees.
• The phased increase from 6.5% to 7.5% will be applied equally over a 7-year period beginning July 2012. The contribution rate will increase by 0.14% each year with the first payroll of July until the 7.5% contribution rate is reached in July 2018. For example, 6.64% in July 2012, 6.78% in July 2013, 6.92% in July 2014, etc.
• The final increase in July 2018 will be 0.16% to reach 7.5%.

Important implementation details on the employee health benefit premium sharing (such as when increased deductions will start) is posted on the Pensions website FAQ page at www.nj.gov/treasury/pensions/reform-hb-qa.shtml.

Updated: July 7, 2011

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