What are the requirements to establish a private plan in New Jersey?
The employer can establish a “Private” plan if the following state requirements are met: • The plan must offer benefits at least equal to the state plan; • The employer can charge employees the same rate or a lower rate than the state plan, but may not charge more than the state plan rate; • The employer must receive the one-time consent of only a majority of the employees (over 50%) for the plan to go into effect at which time all current and all future employees are covered by the self-insured plan (individual rejection of the plan is not allowed). NOTE: If the plan is noncontributory (i.e., totally employer paid), no enrollment is required. • The employer must provide a surety bond in an amount equal to one-half (1/2) of the annual expected employee contributions to the plan. The bond requirement may be waived by the state on a case-by-case basis if the financial status of the employer is strong. • The employer must agree to pay all obligations, including benefits, fines, expenses,
