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Turner/Madden Legislation To Provide Annual Adjustments To Temporary Disability Benefit Contribution Rates Clears Senate

A view of the Senate Chambers from the 2010-2011 Senate Reorganization.

TRENTON – A bill sponsored by Senators Shirley K. Turner (D-Mercer) and Fred Madden (D-Gloucester, Camden) that would reduce the amount of money employees pay into the Temporary Disability Insurance fund was passed today by the full Senate.

“Given the difficult economic times, it is important that we provide working families with as much disposable income as possible,” said Turner. “The Temporary Disability Insurance Fund will be running a surplus by 2013, so by reducing the amount employees pay in, we are doing just that.”

“In a state where everything is too highly priced, it is nice when government can actually give money back to the people of New Jersey. By reducing the amount of money collected, we are providing a much needed break for both public and private workers,” said Madden, Chair of the Senate Labor Committee.

The bill (S2609) would require the Commissioner of the Department of Labor and Workforce Development, beginning in 2012, to make annual adjustments in the rate of contribution paid by workers into the Temporary Disability Insurance fund.

Over the past 16 years, a total of $773 million in funds that workers paid into Temporary Disability Insurance has been diverted to help balance the state budget. Last November, voters approved a Constitutional amendment to ensure that assessments on employee wages by the state be dedicated to the payment of employee benefits and not diverted for other purposes.

The legislation now heads to the Assembly.

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