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NJ S1491
Bill
Status
1/13/2026
Primary Sponsor
Joseph Cryan
Click for details
AI Summary
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Aligns New Jersey public employee flexible spending account (FSA) contribution limits with federal law under Internal Revenue Code Section 125(i), including annual inflation adjustments.
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Applies to employees of State government, independent State authorities, local governments, boards of education, and their agencies and instrumentalities.
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Sets the 2024 contribution limit at $3,200, matching the current federal threshold, with automatic annual adjustments for inflation in subsequent years.
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Amends three existing statutes (C.52:14-15.1a, C.18A:16-19.1, and C.40A:10-23.5) governing cafeteria plans for different categories of public employers.
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FSA salary reductions continue to be treated as regular compensation for pension contribution calculations and retirement allowance amounts while remaining exempt from federal tax withholding.
Legislative Description
Requires same limitation on public employee contributions to flexible spending accounts as provided by federal law adjusted for inflation.
State Government, Wagering, Tourism & Historic Preservation
Last Action
Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee
1/13/2026