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New JerseyA5118220th Legislature (2024-2025)HouseWALLET

Provides health care benefits to disabled members of TPAF and PERS.

Sponsored By: Joseph A. Lagana (Democratic), Raj Mukherji (Democratic), Lisa Swain (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 0 costs, 2 mixed.

Free health coverage for disabled school employees

Beginning January 20, 2026, qualifying disabled teachers and school employees can join the School Employees’ Health Benefits Program without employee contributions. This covers Teachers’ Pension and Annuity Fund members and Public Employees’ Retirement System members employed by school boards or county colleges. Members must have joined their pension system on or after the effective date of P.L.2010, c.3. They must have received a section 10 or 11 disability benefit under that law before January 1, 2027. The plan must also refund premiums actually paid from January 1, 2024, through January 19, 2026, while disabled, receiving that benefit, and eligible under these enrollment rules.

Free health coverage for disabled State workers

Beginning January 20, 2026, qualifying disabled State workers can join the State Health Benefits Program without employee contributions. They must belong to the Public Employees’ Retirement System and have joined on or after the effective date of P.L.2010, c.3. They must have received a section 11 disability benefit under that law before January 1, 2027. Enrollment follows the same process as for State retirees. The plan must also refund premiums actually paid from January 1, 2024, through January 19, 2026, while disabled, receiving that benefit, and eligible under these enrollment rules.

Health coverage for newly disabled teachers

Beginning January 1, 2027, disabled Teachers’ Pension and Annuity Fund members gain access to the School Employees’ Health Benefits Program. This applies when their section 10 disability benefits under P.L.2010, c.3 begin on or after that date. Enrollment follows section 5 of P.L.2025, c.370. This provision does not set a contribution amount or promise free coverage.

Disabled local workers keep employer health access

Beginning January 20, 2026, disabled Public Employees’ Retirement System members with non-State employers keep access to employer health coverage. They must receive a section 11 disability benefit under P.L.2010, c.3. Coverage follows the employer’s rules for its retirees in that pension system. Employers participating in the State Health Benefits Program set premium contributions through a resolution filed with the Division of Pensions and Benefits. This provision does not set the member’s contribution amount.

Disabled State workers face Medicare-linked health contributions

New rules cover disabled State Public Employees’ Retirement System members whose section 11 benefits begin on or after January 1, 2027. They must join the State Health Benefits Program when enrolling in Medicare while receiving those benefits, following Medicare-eligible retiree rules. They must pay monthly contributions using the rate for State retirees with 25 years of service credit. The applicable rate is tied to the date their disability benefit begins, and their disability benefit counts as base salary. This provision does not state the rate.

Sponsors & Cosponsors

Sponsors

  • Joseph A. Lagana

    Democratic • Senate

  • Raj Mukherji

    Democratic • Senate

  • Lisa Swain

    Democratic • House

Cosponsors

  • Patrick J. Diegnan Jr.

    Democratic • Senate

  • Margie Donlon M.D.

    Democratic • House

  • Victoria A. Flynn

    Republican • House

  • Linda R. Greenstein

    Democratic • Senate

  • Luanne M. Peterpaul Esq.

    Democratic • House

  • Verlina Reynolds-Jackson

    Democratic • House

  • Shanique Speight

    Democratic • House

  • Chris Tully

    Democratic • House

  • Shirley K. Turner

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 182 • No: 0

House vote • 1/12/2026

CONCUR IN SA

Yes: 74 • No: 0

Senate vote • 1/12/2026

3RDG FINAL PASSAGE

Yes: 38 • No: 0

House vote • 12/19/2024

3RDG FINAL PASSAGE

Yes: 70 • No: 0 • Other: 1

Actions Timeline

  1. Approved by Governor — P.L.2025, c.370.

    1/20/2026Governor

  2. Passed Assembly, PBH — (74-0-0)

    1/12/2026House

  3. Received in Assembly, 2RAC

    1/12/2026House

  4. Passed Senate — (38-0)

    1/12/2026Senate

  5. Substituted for S4223 (SCS)

    1/12/2026Senate

  6. REP/SCA, 2nd Reading in Senate

    1/8/2026Senate

  7. TRANS Senate Budget and Appropriations Committee

    3/24/2025Senate

  8. Received in Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee

    1/14/2025Senate

  9. Passed Assembly — (70-0-1)

    12/19/2024House

  10. Reported, 2nd Reading in Assembly

    12/16/2024House

  11. REP/ACA, Referred to Assembly Appropriations Committee

    12/12/2024House

  12. Introduced, 1st Reading in Assembly, Referred to Assembly State and Local Government Committee

    12/9/2024House

Bill Text

  • Version PL2025

    8/7/2026

    HTMLPDF

  • Senate Budget and Appropriations (1/8/26 2R)

    7/7/2026

    HTMLPDF

  • Version AL2025

    7/7/2026

    HTMLPDF

  • Senate Budget and Appropriations Substitute (1/8/26 1R)

    1/9/2026

    HTMLPDF

  • 6/10/25; 1R

    6/10/2025

    HTMLPDF

  • Assembly State and Local Government (12/12/24 1R)

    12/31/2024

    HTMLPDF

  • Assembly Appropriations Substitute (12/16/24 1R)

    12/17/2024

    HTMLPDF

  • Assembly State and Local Government Substitute (12/12/24)

    12/13/2024

    HTMLPDF

  • As Introduced

    12/10/2024

    HTMLPDF

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