NJ A3874

Directs the Division of Budget and Accounting in the Department of the Treasury to establish a separate fringe benefit rate specifically for State colleges and universities, beginning in fiscal year 2025

Requires the new fringe benefit rate to reflect the actual cost of employee retirement programs at public higher education institutions rather than using the general State employee rate

Applies the separate fringe benefit rate to all federal, dedicated, and non-State funded programs at these institutions

Addresses the current disparity where many college employees are enrolled in the less costly Alternative Benefit Plan (ABP) or no retirement plan, rather than the Public Employees' Retirement System (PERS), resulting in overpayment to the State