Date: June 27, 2014
To: All Benefits Eligible Faculty and Staff in legacy Rutgers positions
From: Vivian Fernández
Vice President for Faculty & Staff Resources
Re: Reminder of Changes in SHBP Insurance Premium Deductions Effective July 1, 2014

This is a reminder that effective July 1, 2014, your State Health Benefits Program (SHBP) payroll deduction may change as a result of the tiered implementation of the State Health Benefits Program insurance premium structure established in 2011. Any applicable changes will be reflected in your paycheck dated July 3, 2014.

In order to help you estimate what, if any, change in premium contribution you may experience in your paycheck, you may use the Employee Medical and Prescription Insurance Premium Estimator ( to help you determine the monthly premium costs for your medical and/or prescription coverage. When using the monthly premium estimator, please keep in mind that actual premiums are deducted from your paycheck on a biweekly rather than monthly basis.

In 2011, the State of New Jersey put into place a four-tiered employee premium contribution increase schedule with provisions to allow for a phased-in increase over a four-year transition period for employees hired before June 28, 2011. The premium increase schedule provided for employees to pay either a percentage of their health plan premiums, based on salary range, level of coverage, and implementation year, or an amount equal to 1.5% of base salary, whichever is higher.  

Effective July 1, 2014, current employees hired prior to June 28, 2011 and enrolled in an SHBP plan will be transitioned from Tier 3 to Tier 4 of the premium increase schedule.  Therefore, employees will either transition to Tier 4, or will continue to contribute 1.5% of base salary; the higher of the two contribution rates will apply.

Employees hired on or after June 28, 2011, who are already at Tier 4, will not see a premium change in July.

If you have any questions regarding this change, please contact a Benefits Specialist at 848-932-3990 or via email at  You may also review the FAQ developed by the New Jersey Division of Pensions and Benefits to learn more about the contribution tables as well as other information applicable to the tiered implementation of the SHBP premium share increase.  You may review the FAQ at