NJ S1632

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, effective fiscal year 2025 and each year thereafter.

Requires the new fringe benefit rate to reflect the actual cost of employee retirement programs at those institutions, rather than the general State employee rate currently used.

Applies the separate fringe benefit rate to all federal, dedicated, and non-State funded programs at public higher education institutions.

Addresses the discrepancy caused by many college and university employees being enrolled in the less costly Alternative Benefit Plan (ABP) rather than the Public Employees' Retirement System (PERS) that most State employees use.

Aims to reduce the difference between actual benefit costs and amounts paid to the State by public institutions of higher education.