Chapter 78

Please take note of the following scenarios:

An existing employee as of June 28, 2011 who has a CNA that expired after 6/28/2011 follows their contract until it expires and then begins the four year Phase-In.An existing employee as of June 28, 2011 who has a CNA that expired prior to 6/28/2011 begins the first year phase in under Chapter 78.A new employee hired after 6/28/2011 who has a CNA that expires after 6/28/2011 follows the CAN until it expires and upon expiration, begins the Ch. 78 Phase-In.A new employee hired after 6/28/2011 who has a CNA that expired before 6/28/2011 pays the full fourth year phase in under Ch. 78.

Exception: if an employee is hired the day after a CNA expires, the employee contributes at the Year 1 phase-in rate (this employee is considered an existing employee on the day the c.78 health care contribution commences).I hope that this brings some clarification to this confusing situation.In order to assist you with employers who do not understand the implementation for new hires, please refer them to Local finance Notice 2011-20R available at the web site listed below.http://www.nj.gov/dca/lgs/lfns/11lfnlis.shtml

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