New Jersey’s disability insurance fund will see some changes in the coming months, according to Governor Chris Christie. This week, the Governor announced that state employees can expect to see lower premiums for the state’s disability insurance pool. The Governor believes that state workers have been paying more than is necessary to keep the program afloat and has teamed with the commissioner of the Department of Labor and Workforce Development, Harold Wirths, to make changes to the state-run program.
Currently, the state withholds funds from workers’ paychecks to cover the cost of their participation in the insurance program. The amount withheld is determined on their annual salary. New legislation was signed into law by Christie in July that would reduce the amount withheld and will take effect at the beginning of next year. Overall, the legislation will reduce premiums by a total of $190 million. No reduction in coverage is planned.
The legislation is part of an initiative from Christie to ensure that insurance coverage, whether disability, health or otherwise, is more accessible to New Jersey residents. The Governor notes that the $100 in average savings seen in premiums throughout the state could help those who are struggling to make ends meet. Christie will continue supporting legislations bringing tax cuts to those having trouble affording insurance, especially in matters where state employees are concerned.