New Jersey Senate Passes Bill Requiring Public Workers to Pay Part of Insurance Premiums

On Monday, the New Jersey Senate passed a bill that would require half a million teachers, police officers, firefighters and other public workers to pay a portion of their health insurance premiums based on income, according to an AJC report.

The Senate passed the bill 24-15; eight Democrats sided with all 15 Republicans to back the bill, which has the support of Gov. Chris Christie. An Assembly budget panel advanced the measure hours after the Senate passed the bill.

The bill would also increase pension contributions by 1 percent immediately and by an additional percent or more after a seven-year phase-in. Automatic cost-of-living increases on pensions would be eliminated for the time being. The average New Jersey public worker would see his or her yearly healthcare costs jump from $900 a year to $2,506 for single coverage or $3,230 for a family plan.

The legislation aims to defuse the state's unfunded pension liability. Officials estimate the state could save $120 billion on pension savings over 30 years and $3 billion on healthcare savings over 10 years.

Read the AJC report on the New Jersey bill.

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