Unions get relief on health care fee Friday, June 29, 2007 • BY DUNSTAN McNICHOL • Star-Ledger Staff Gov. Jon Corzine yesterday signed a bill that will cancel new health care payments that were scheduled to be imposed on retiring government workers next month. The measure, which sped through the Legislature during their last week of work this month, also sets up a generous health insurance package for teachers. It was among 16 bills Corzine signed into law along with the state's $33.5 billion state budget yesterday. The retirement benefits bill (A- 5005) revises provisions in a state worker contract the Corzine administration negotiated in February that would have required government workers retiring after July 1 to pay 1.5 percent of their pensions toward the cost of their health insurance. Instead, under the new provisions, retirees with more than 25 years experience will continue to receive free health insurance if they enroll in a "wellness program" that includes regular physical exams and lifestyle guidance. The co-payments, which Corzine estimates would have generated about $2 million over the four years of the contract, were a key element of contention among the leaders of two CWA locals opposed to the contract settlement. Among those most opposed to the insurance co-payments for new retirees was Carla Katz, the president of CWA Local 1034 and Corzine's former girlfriend. Union officials got the chance to revise the co-payment provision after the Corzine administration said the state would not be able to meet the contract's Jan. 1, 2008, deadline for setting up a new set of health insurance plans for workers and retirees. The new educators' health insurance program also in the bill gives the powerful state teacher's union, the New Jersey Education Association, control over designing and managing the state-funded health insurance program for teachers and other school employees. Health benefits for working and retired public employees are among the fastest growing elements of the state budget. The budget Corzine signed yesterday includes about $1 billion in health costs. Speaking at yesterday's budget signing, Corzine said employee benefits costs are on track to double within five years. Among the other bills Corzine signed yesterday are one (S-2269) that eliminates the sales tax on membership fees paid to not-for-profit health clubs, such as those run by the YMCA. The bill also eliminates sales tax on local parking charges. Another (A-4293) raises from $1 to $15 the fee funeral directors must pay to retrieve bodies for interment. The increased fees, which are scheduled to drop back to $5 after three years, are designed to raise about $3 million to pay for establishment of an automated death registry system. Dunstan McNichol may be reached at dmcnichol@starled ger.com or (609) 989-0341. © 2007 The Star-Ledger. Used by NJ.com with permission.