Concerns certain workers' compensation supplemental benefits.
Impact
The bill introduces a structured cost-of-living adjustment (COLA) that aligns the supplemental benefits to be paid in subsequent fiscal years with the maximum workers' compensation benefit rate. The bill outlines that during fiscal year 2024, beneficiaries will receive 33.3% of the calculated supplemental amount, increasing to two-thirds in 2025 and fully maintaining this benefit thereafter. This gradual implementation aims to alleviate any immediate fiscal strain on the system while still providing support to those affected by workplace injuries.
Summary
Assembly Bill A5206 addresses changes to certain supplemental benefits under the workers' compensation system in New Jersey. The bill stipulates that beginning July 1, 2024, individuals totally and permanently disabled by workplace injuries occurring after December 31, 1979, along with their dependents, will be entitled to receive weekly supplemental benefits from the Second Injury Fund (SIF) if their monthly benefits fail to meet a predefined threshold. These adjustments intend to provide support similar to that which is offered to workers injured prior to 1980.
Contention
Notably, the bill reduces the amounts of adjustment payments if necessary to avoid a reduction in Social Security disability benefits for claimants. Additionally, it requires insurance carriers and self-insured employers to notify the Division of Workers' Compensation when supplemental benefits are due within a 60-day timeframe, with specifics regarding failure to notify transferring liability back to employers for incorrectly paid benefits. This stipulation aims to streamline the management of workers' compensation payments but may encounter criticism from stakeholders concerned about the administrative burdens it places on employers.