Date: June 27, 2014
To: All Benefits Eligible Faculty and Staff in legacy UMDNJ positions
From: Vivian Fernández
Vice President for Faculty & Staff Resources
Re: Reminder of Changes in SHBP Insurance Premium Deductions Effective July 1, 2014

This is a reminder that effective July 1, 2014, your State Health Benefits Program (SHBP) payroll deduction may change as a result of the tiered implementation of the State Health Benefits Program insurance premium structure established in 2011.

In order to help you estimate what, if any, change in premium contribution you may experience in your paycheck, you may use the Employee Medical and Prescription Insurance Premium Estimator (http://uhrapps.rutgers.edu/estimator/) to help you determine the monthly premium costs for your medical and/or prescription coverage. When using the monthly premium estimator, please keep in mind that actual premiums are deducted from your paycheck on a biweekly rather than monthly basis.

In 2011, the State of New Jersey put into place a four-tiered employee premium contribution increase schedule with provisions to allow for a phased-in increase over a four-year transition period for employees hired before June 28, 2011. The premium increase schedule provided for employees to pay either a percentage of their health plan premiums, based on salary range, level of coverage, and implementation year, or an amount equal to 1.5% of base salary, whichever is higher. Please note that certain negotiating units which were in contract negotiations at the time of the tiered premium share increase may be calculated on a different implementation year, as detailed below.

Effective July 1, 2014, current employees in legacy UMDNJ positions who were transitioned to Rutgers as a result of the integration which took place on July 1, 2013 and who are enrolled in an SHBP plan will be transitioned into the next applicable tier on the premium increase schedule.  In order to determine the appropriate premium share calculation, please be advised that:

  • Employees represented by the OPEIU Local 153 (Security Officers & Dispatchers) negotiating unit who were hired prior to July 1, 2012 will pay costs associated with the Tier 3 premium share increase, or contribute 1.5% of base salary, whichever is higher. Changes to their SHBP payroll deduction will be reflected in the July 18, 2014 paycheck.
  • Employees represented by the HPAE Local 5135 (Department of Corrections) negotiating unit who were hired prior to October 1, 2011 will pay the costs associated with the Tier 4 premium share increase, or contribute 1.5% of base salary, whichever is higher.  Changes to their SHBP payroll deduction will be reflected in the October 10, 2014 paycheck.
  • Employees represented by the CIR (Interns and Residents) negotiating unit who were hired prior to November 1, 2011 will pay the costs associated with the Tier 3 premium share increase, or contribute 1.5% of base salary, whichever is higher.  Changes to their SHBP payroll deduction will be reflected in the November 7, 2014 paycheck.
  • All other legacy UMDNJ employees who were hired prior to June 28, 2011 will pay costs associated with the Tier 4 premium share increase, or contribute 1.5% of base salary, whichever is higher.  Changes to their SHBP payroll deduction will be reflected in the July 18, 2014 paycheck.

Employees hired on or after the effective date of the tiered implementation, who are already at Tier 4, will not see a premium change in July.

If you have any questions regarding this change, please contact a Benefits Specialist at 848-932-3990 or via email at benefits@hr.rutgers.edu.  You may also review the FAQ developed by the New Jersey Division of Pensions and Benefits to learn more about the contribution tables as well as other information applicable to the tiered implementation of the SHBP premium share increase.  You may review the FAQ at http://www.state.nj.us/treasury/pensions/reform-hb-qa.shtml.