Permits Director of Division of Pensions and Benefits to initiate temporary transfer of funds in certain circumstances.

Temporary funding for school employees’ health coverage

Beginning June 30, 2026, New Jersey’s pensions and benefits director can temporarily move available money between health benefits funds. This authority applies when the school employees’ health benefits fund cannot cover 10 days of expected payments. Transfers can cover no more than 30 days of payments, based on average medical, prescription, and dental claims over the past six months. The money must be repaid within 120 days. The director can extend repayment by up to 365 additional days to keep enough money for active employees’ and eligible dependents’ claims. The director must notify the commission within 30 days and report monthly to the State Treasurer. Reports must show transfers, outstanding balances, repayments, and the fund balance. This supports claim payments without changing household eligibility or benefit amounts.