25+ years (or Disability Retirement) before June 28, 2011; or 20+ years by June 28, 2011 and 25 years at retirement.
Reached 20 years after June 28, 2011 and retire with 25 years: pay a percentage of the premium (by annual retirement allowance) or a percentage of the allowance, depending on the plan; minimum 1.5% of the monthly retirement allowance.
Fact Sheet #11 pp. 3-4, School Board and County College Employees; Health Benefits SPD pp. 10-11, Retiree Contributions
Under 25 years, coverage isn't State-paid; what you pay depends on your employer. See Retiree health. If you're close to 25 years, one more year can change which box you're in.
Estimate your share
Estimate from the chart as we read it, with the 1.5% minimum. Check with NJDPB Fact Sheet #11 pp. 3-4, School Board and County College Employees; Health Benefits SPD pp. 10-11, Retiree Contributions; Health Benefits SPD p. 12, Health Benefits Contribution - Percentage of Premium Chart
Example
A $45,000 pension with member + spouse coverage falls in the 10% band, so you'd pay 10% of the premium. The minimum is 1.5% of $3,750.00, or $56.25 a month. You pay whichever is more.
Percentage-of-premium chart
Your share of the premium, by yearly retirement allowance and coverage level.
| Yearly pension | Single | Member + spouse/partner or parent + child | Family |
|---|---|---|---|
| Under $20,000 | 4.5% | 3.5% | 3% |
| $20,000 to $24,999 | 5.5% | 3.5% | 3% |
| $25,000 to $29,999 | 7.5% | 4.5% | 4% |
| $30,000 to $34,999 | 10% | 6% | 5% |
| $35,000 to $39,999 | 11% | 7% | 6% |
| $40,000 to $44,999 | 12% | 8% | 7% |
| $45,000 to $49,999 | 14% | 10% | 9% |
| $50,000 to $54,999 | 20% | 15% | 12% |
| $55,000 to $59,999 | 23% | 17% | 14% |
| $60,000 to $64,999 | 27% | 21% | 17% |
| $65,000 to $69,999 | 29% | 23% | 19% |
| $70,000 to $74,999 | 32% | 26% | 22% |
| $75,000 to $79,999 | 33% | 27% | 23% |
| $80,000 to $84,999 | 34% | 28% | 24% |
| $85,000 to $89,999 | 34% | 30% | 26% |
| $90,000 to $94,999 | 34% | 30% | 28% |
| $95,000 to $99,999 | 35% | 30% | 29% |
| $100,000 to $109,999 | 35% | 35% | 32% |
| $110,000 and up | 35% | 35% | 35% |
Each row starts at the amount shown. Check with NJDPB Health Benefits SPD p. 12, Health Benefits Contribution - Percentage of Premium Chart
What the NJDPB says
- School board retirees with 25+ years get State-paid coverage if they had 20 years by June 28, 2011. Those who reached 20 years later pay a share under Chapter 78: a percentage of the premium based on the size of the pension and coverage level, or a percentage of the pension, depending on the plan, and at least 1.5% of the monthly pension.Fact Sheet #11 pp. 3-4; Health Benefits SPD pp. 10-12
- Check with NJDPBThe Chapter 78 percentage-of-premium chart is printed in three interleaved columns; our reading of it hasn't been checked against the printed page.Health Benefits SPD p. 12Chart read from PDF text, not visually verified.
Questions
What is Chapter 78?
P.L. 2011, c. 78 (effective June 28, 2011): raised contributions, set Tier 5, suspended COLAs and set retiree health contributions.
Who pays a Chapter 78 contribution?
School board and county college retirees who reached 20 years after June 28, 2011 and retire with 25 years: pay a percentage of the premium (by annual retirement allowance) or a percentage of the allowance, depending on the plan; minimum 1.5% of the monthly retirement allowance.
Who doesn't pay?
Retirees with State-paid coverage: 25+ years (or Disability Retirement) before June 28, 2011; or 20+ years by June 28, 2011 and 25 years at retirement.
What is the minimum?
1.5% of your monthly retirement allowance.
Source: TPAF Member Guidebook, July 2026 (SP-0733-0726), pp. 14-15. Also: NJDPB Fact Sheet #11 (Oct. 2026), pp. 1-4. Also: SHBP/SEHBP Summary Program Description (Oct. 2026), pp. 10-12. Statute: N.J.S.A. 18A:66-29, 18A:66-43, 43:3B-2. Last reviewed .