Commission Permits Arbitration Over Change in Health Plans

Township of Barnegat and Barnegat Township PBA Local 296

In P.E.R.C. No. 2017-74, the Commission permitted arbitration over a claim that the employer breached the parties’ contract when it changed health insurance carriers.  The Commission restrained arbitration to the extent the grievance alleged that an increase in Chapter 78 contributions was based on the inclusion of the cost of dental and/or vision coverage.  The Commission also restrained arbitration to the extent that the grievance sought to enforce an opt-out or waiver payment in excess of the maximum set by N.J.S.A. 40A:10-17.1 and N.J.S.A. 52:14-17.31a (25% of the amount saved by the Township because of the employee’s waiver or $5,000, whichever is less).

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