• Employees hired PRIOR to 06/28/2011 are required to pay 1.5% of base salary or the percentage of premium based on the tables.

WHICHEVER IS GREATER

• Employees hired AFTER 06/28/2011 go directly against the year 4 percentage of premium tables.

Note: There is no change to employee’s dental benefits.

• There are three percentage of premium charts:

•Single

•Family

•Employee/Partner or Parent/Child

• Each coverage level has a different percentage of premium that the employee would have to pay based on their base salary.

Note: The percentage of premium tables can be found on the Pensions web site.

• The percentage increases each year in July.

HEALTH BENEFITS CONTRIBUTION FOR SINGLE COVERAGE

(PERCENTAGE OF PREMIUM) 

Salary Range Year 1 Year 2 Year 3 Year 4less than 20,000 1.13% 2.25% 3.38% 4.50%20,000-24,999.99 1.38% 2.75% 4.13% 5.50%25,000-29,999.99 1.88% 3.75% 5.63% 7.50%30,000-34,999.99 2.50% 5.00% 7.50% 10.00%35,000-39,999.99 2.75% 5.50% 8.25% 11.00%40,000-44,999.99 3.00% 6.00% 9.00% 12.00%45,000-49,999.99 3.50% 7.00% 10.50% 14.00%50,000-54,999.99 5.00% 10.00% 15.00% 20.00%55,000-59,999.99 5.75% 11.50% 17.25% 23.00%60,000-64,999.99 6.75% 13.50% 20.25% 27.00%65,000-69,999.99 7.25% 14.50% 21.75% 29.00%70,000-74,999.99 8.00% 16.00% 24.00% 32.00%75,000-79,999.99 8.25% 16.50% 24.75% 33.00%80,000-94,999.99 8.50% 17.00% 25.50% 34.00%95,000 and over 8.75% 17.50% 26.25% 35.00%

HEALTH BENEFITS CONTRIBUTION FOR FAMILY COVERAGE

(PERCENTAGE OF PREMIUM) 

Salary Range Year 1 Year 2 Year 3 Year 4less than 25,000 0.75% 1.50% 2.25% 3.00%25,000-29,999.99 1.00% 2.00% 3.00% 4.00%30,000-34,999.99 1.25% 2.50% 3.75% 5.00%35,000-39,999.99 1.50% 3.00% 4.50% 6.00%40,000-44,999.99 1.75% 3.50% 5.25% 7.00%45,000-49,999.99 2.25% 4.50% 6.75% 9.00%50,000-54,999.99 3.00% 6.00% 9.00% 12.00%55,000-59,999.99 3.50% 7.00% 10.50% 14.00%60,000-64,999.99 4.25% 8.50% 12.75% 17.00%65,000-69,999.99 4.75% 9.50% 14.25% 19.00%70,000-74,999.99 5.50% 11.00% 16.50% 22.00%75,000-79,999.99 5.75% 11.50% 17.25% 23.00%80,000-84,999.99 6.00% 12.00% 18.00% 24.00%85,000-89,999.99 6.50% 13.00% 19.50% 26.00%90,000-94,999.99 7.00% 14.00% 21.00% 28.00%95,000-99,999.99 7.25% 14.50% 21.75% 29.00%

100,000-109,999.99 8.00% 16.00% 24.00% 32.00%110,000 and over 8.75% 17.50% 26.25% 35.00%

• When the 1.5% of base salary method is used to determine the deduction, it includes both Health & Prescription Drug coverage’s.

Note: The percentage of premium tables can be found on the Pensions web site.

• When the percentage of premium method is used to determine the deduction, Health Benefit & Prescription Drug coverage are separate components and must be added together if employee has both coverage's.

Employee Hired PRIOR to 6/28/2011 making $100,810.32 with NJDirect15 and Prescription Drug SINGLE Coverage

(YEAR 1)

1.5% Method of Calculation: $100,810.32 /26.1 = $3,862.46 biweekly gross * 1.5% = $57.94 deduction for health & prescription drug.

Percentage of Premium Method of Calculation:

•NJ Direct15 - $229.92 •RX - $ 62.46•Percentage - 8.75%

$229.92 x 8.75% = $20.11 $ 62.46 x 8.75% = $ 5.46 Total = $25.57

Since the percentage of premium method is less then the 1.5% method,the employees HB deduction will remain $57.94

Employee Hired PRIOR to 6/28/2011 making $100,810.32 with NJDirect15 and Prescription Drug FAMILY Coverage

(YEAR 1)

1.5% Method of Calculation: $100,810.32 /26.1 = $3,862.46 biweekly gross * 1.5% = $57.94 deduction for health & prescription drug.

Percentage of Premium Method of Calculation:

•NJ Direct15 - $574.82•RX - $156.16•Percentage - 8%

$574.82 x 8% = $45.98 $156.16 x 8% = $12.49 Total = $58.47

Since the percentage of premium method is greater then the 1.5% method,the employees new HB deduction will be $58.47

Employee Hired AFTER to 6/28/2011 making $100,810.32 with NJDirect15 and Prescription Drug FAMILY Coverage

(YEAR 4)

1.5% Method of Calculation: $100,810.32 /26.1 = $3,862.46 biweekly gross * 1.5% = $57.94 deduction for health & prescription drug.

Percentage of Premium Method of Calculation:

•NJ Direct15 - $574.82•RX - $156.16•Percentage - 32%

$574.82 x 32% = $183.94 $156.16 x 32% = $ 49.97 Total = $233.91

Since the percentage of premium method is greater then the 1.5% method,the employees HB deduction will be $233.91

Employee with a $72,500 annual salary with a domestic partner – Aetna and Prescription Drug Coverage.

Premium (HB&RX) 1st Year Amount1.5% $41.67Single $298.80 8.00% $23.90Member/Spouse $672.30 6.50% $43.69

Pre-Tax Post-TaxDeduction if Single Coverage $41.67 $41.67 $0.00Deduction if Member/Spouse $43.69 $41.67 $2.02 ($43.69-$41.67)

Imputed income is the cost of single coverage, less the difference in the amount the employee pays for picking up Member/Spouse coverage.

$298.80 Single Coverage- $ 2.02 Difference ($43.69-$41.67)

$296.78 = Taxable Imputed Income

Employee with a $72,500 annual salary with a domestic partner – Aetna and Prescription Drug Coverage.

Premium (HB&RX) 4th Year Amount1.5% $ 41.67Single $298.80 32.00% $ 95.61Member/Spouse $672.30 26.00% $174.79

Pre-Tax Post-TaxDeduction if Single Coverage $ 95.61 $95.61 $ 0.00Deduction if Member/Spouse $174.79 $95.61 $79.18 ($174.79-$95.61)

Imputed income is the cost of single coverage, less the difference in the amount the employee pays for picking up Member/Spouse coverage.

$298.80 Single Coverage- $ 79.18 Difference ($43.69-$41.67)

$219.62 = Taxable Imputed Income