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The following provision(s) are set forth herein for informational purposes only. These matters as they apply to individual employees affected shall be grievable within the provisions of the Grievance Procedure in the Contract as defined in Article 7, Section A.2. except for the provisions below that are underlined which are grievable under Article 7, Section A.l.

1. Transfer is the movement of an employee from one job assignment to another within his job classification in another organizational unit, department or region as applied in the Department of Transportation.

2. An employee shall not be transferred without the approval and consent of the appointing authority from and to whose unit the transfer is sought, nor without the consent of the employee, or the approval of the Department of Personnel, except that:

a. The consent of the employees shall not be required when there is a transfer or combining of function of one unit with or to another; and

b. When a temporary transfer is made, the consent of the employee shall not be required; but if the employee objects, he shall have the right to have the transfer reviewed by the Department of Personnel, and any special hardship that may result will be given due consideration.

c. The rights of an employee who has voluntarily transferred shall not be adversely affected except that he shall not retain any rights in the unit from which he was transferred.

d. The right of an employee who has been involuntarily transferred shall not be adversely affected but he shall retain no rights in the unit from which he has been transferred except that if he is on a

promotional list, his name shall be retained on the promotional eligible list for the unit from which he has been transferred until he has had an opportunity to take a promotional examination in his new unit and the resultant list has been promulgated.

e. Transfer shall not affect the accumulation of an employee's State or job classification seniority.

3. a. Upon any transfer of a permanent employee, all sick leave and vacation balances shall be transferred with the employee.

b. Upon voluntary transfer, all accrued compensatory time will, at the discretion of the State, be transferred with the employee, taken as time off prior to transfer or paid in cash at the employee's current rate of pay.

c. Upon involuntary transfer of a permanent employee, all accrued compensatory time balances shall be transferred with the employee.

1. Reassignment is the movement of an employee from one job assignment to another within his job classification and within the work unit, organizational unit, department, or region as applied within the Department of Transportation.

2. Reassignments of employees may be made in accordance with the fiscal responsibilities of the appointing authority; to improve or maintain operational effectiveness; or to provide employee development and job training or a balance of employee experience in any work area. Where such

reassignments are not mutually agreed to, the appointing authority will make reassignments in the inverse order of the job classification seniority of the employees affected, providing the employees are capable of doing the work, and the objectives stated above are met. Individual shift or schedule

changes will be considered to be covered under this provision and paragraphs below.

3. When temporary reassignments are made to achieve any of the objectives in B. 2. above, employees to be affected will be given maximum possible notice. The consideration of seniority otherwise applicable in reassignments will not apply. The utilization of the concept of temporary reassignment will not be abused.

C. Where the principles in B. 2. above are observed, requests for voluntary reassignment within the organizational unit or department shall be given consideration.

An employee desiring reassignment to any job in his organizational unit or department may submit an application through his supervisor in writing to his Personnel Officer stating the reasons for the request. Employees who are capable of performing the work and who apply for such reassignments will be considered and reassignments will be made on the basis of these requests. Where more than one request for reassignment from qualified employees deemed capable of performing the work in such a job is on record, any assignment(s) will be made on the basis of the job classification seniority of employees having recorded such a request except for the Motor Vehicle Division where the present practice and procedure of voluntary reassignment will be observed for employees in the Inspection

D. 1. When personnel changes in a work unit provide opportunities for shift or schedule changes, interested employees may apply for desired assignments to the work unit supervisor. When there are vacancies available on the day shift, which could be filled through lateral reassignments from workers on the evening or night shift, such vacancies shall be posted prior to the posting of job vacancies so that evening and night shift workers can apply for such lateral reassignments. Such changes in assignment will be made on the basis of the job classification seniority of employees requesting the change, except that priority is given to the assignment of individual employees as provided in paragraph B. 2. above.

2. When a vacancy is filled by an employee from outside a work unit, the employee joining that work unit shall be assigned the open position on the shift and work schedule which were appropriate to the opening.

E. An employee may have on record no more than two (2) requests for reassignment in C. above.

F. When an employee is granted a voluntary reassignment under provisions of paragraphs C. or D. above, he shall then be eligible for only one (1) additional voluntary reassignment in the succeeding twelve (12)-month period. Consideration will be given to a request for additional reassignment

APPENDIX II

When a dispute arises regarding access of an employee to his personnel file under the Access to Personnel File Article of the Contract the matter may be submitted by the Union within thirty (30) days of the occurrence to the Governor's Office of Employee Relations for resolution. The Governor's Office of Employee Relations will resolve this matter through discussion with the Union. The decision of the Governor's Office of Employee Relations shall be final without any further right of appeal.

This process constitutes a replacement for the grievance procedure on this issue.

The Contract provides in Article 7, F.4.d., that the Union will screen the non-contractual grievances through its internal mechanism prior to appealing them to the Governor's Office of Employee Relations for hearing. It is understood and agreed that the maximum number of grievances that may be appealed to the Governor's Office of Employee Relations during any contractual year is ten (10).

If there is a dispute between the Union and management regarding entitlement to information under Article 7, J.4., the Governor's Office of Employee Relations will resolve the matter.

During the time prior to ratification of this Contract, the Union may request access to premises in accordance with the Access to Premises provision of the Contract in order to explain the negotiated Contract. A meeting may be conducted for up to thirty (30) minutes at each work site, and employees may attend such meeting by combining their fore and afternoon breaks. Management, where operationally feasible, shall attempt to accommodate employees who wish to attend such meetings by permitting them to combine their breaks. Employees who are unable to attend such a meeting due to the need to maintain coverage shall be allowed to combine their breaks, where operationally feasible, should subsequent pre-ratification meetings being conducted by the Union at that location. No employee may attend a thirty (30) minute meeting more than once.

An Intermittent employee shall be in the unit if the employee works at least the stipulated number of hours during each payroll quarter within the calendar year. An employee must work 208 hours during the payroll quarters beginning nearest January 1 and July 1 and 242 hours during the payroll quarters beginning nearest April 1 and October 1.

1. If an employee fails to work the required hours within a calendar year quarter, that employee shall be removed from the unit at the beginning of the next quarter, unless the provisions of C. below are applicable.

2. An employee removed from the unit due to not meeting the quarterly hours requirement, shall be reinstated to the unit by working 69 hours during a period consisting of two consecutive biweekly pay periods and continuing to work 69 hours in each subsequent two biweekly payroll periods until the next quarter begins. The employee would be readmitted into the unit the first biweekly pay period subsequent to qualifying as above. When the employee reenters the quarterly rotation, the employee

1. New employees shall enter the unit after having worked 208 hours during six (6) consecutive pay periods and must continue to work at least 69 hours for each subsequent two biweekly payroll periods preceding the start of a calendar year quarter.

2. After entering the quarterly calendar cycle, employees must work the required hours a quarter.

3. Failure to work the required hours a quarter would trigger the provision outlined in subsections A.l. and 2. above, unless the provisions of section C. below are applicable.

1. Employees who were in the unit but were furloughed due to operational requirements shall automatically be placed back in the unit upon their return from furlough.

2. Such employees would be expected to work 69 hours for each two consecutive biweekly pay periods during the time prior to the start of a quarterly cycle.

3. The employees must continue to work the required hours each calendar year quarter to continue in the unit.

4. Employees who work less than the required hours in a calendar year quarter would trigger the provision outlined in A.l. and 2. above.

5. The period of furlough shall be removed from the computation of hours worked in any period and the requirement prorated.

A. The inclusion of certain intermittent employees within the negotiating unit and under this Contract shall not be construed to expand the coverage of any State program relating to terms and conditions of employment for which such intermittent employees were not previously deemed to be eligible, or to include such intermittent employees under the coverage of any provision of this Contract unless the substance of the provision describes a type of program for which such intermittent employees were

generally eligible prior to inclusion under the Contract. Where such intermittent employees are eligible for State programs or coverage under provisions of this Contract, appropriate pro-rations will be made in accord with their intermittent status.

B. Disputes concerning whether intermittent employees are eligible for coverage under any provisions of the Contract between the parties or terms and conditions of the coverage shall be processed as Article 7 A.2. grievance (non-contractual) with the final step being the Governor's Office of Employee Relations.

A. The unclassified titles Armorer III and IV, utilized by the Department of Military and Veterans Affairs are included in the Operations, Maintenance and Services and Crafts Unit. Employees in those titles are represented by Local 195, IFPTE, AFL-CIO.

B. In the event the Department of Military and Veterans Affairs determines that a layoff of employees in these titles is necessary, the Department will follow to the extent feasible the system of protections and procedures utilized and developed by the Department of Personnel for the career service for layoff and recall. The Department retains the prerogative to limit bumping rights to something other than Department wide. The language of Article 38 is illustrative of the system. Seniority of involved individuals will be computed in accord with Article 39.

C. Since possession of the "Black Seal" low pressure boiler operator license is a requirement for various job assignments in the Department of Military and Veterans Affairs, individuals not holding a "Black Seal" license may be restricted in their bumping rights due to lack of qualification. The Department retains the prerogative to allow employees full "bumping" rights even if they do not possess the "Black Seal" license. In those circumstances, continued employment will normally be contingent upon attainment of the "Black Seal" license within six (6) months. Exceptions will be discussed with the Union if timely request is made. The Department will attempt to place all persons with greater seniority, but who do not possess the "Black Seal" license in job assignments where the "Black Seal" license is not a mandatory requirement. It is understood that operational effectiveness must be maintained.

D. The Department of Personnel will aid the Department of Military and Veterans Affairs in making technical determinations and will assign an individual to discuss any technical determinations concerning bumping rights with the Union or involved employee.

E. It is recognized that the Department of Military and Veterans Affairs maintains the prerogative to coordinate the layoff and recall system set forth herein so that individuals holding the title Armorer I may be integrated into the overall system.

F. Armorers shall be provided with a general layoff notice of at least forty-five (45) days. The Union will be provided with notice of the layoff at the same time notice is given to the employees. If prompt request is made, the Union will be provided with a list of employees to be affected and layoff

G. Union Stewards will enjoy those privileges pertaining to continuity of job assignment set forth in the body of the Contract.

A. It is understood that special attention shall be given to the needs of the least skilled, lower-paid employees to enhance their job performance and potential for advancement, inclusive of alternate career path choices. A committee, including two representatives of the Union, two from the Governor's Office of Employee Relations, two designees from the Department of Labor and Workforce Development (“LWD”) and two from the Training Division of the Department of Personnel, shall meet with the objective of assisting in the development of this program(s). It shall be the

responsibility of the Department of Personnel and LWD to determine the type of program(s) after reviewing recommendations of this committee.

B. The Training Division of the Department of Personnel, in conjunction with the LWD, will develop a procedure to identify the eligible employees and/or criteria for involvement in such program(s) within operating departments.

A. In regard to the Operations, Maintenance and Services and Crafts and the Inspection and Security Units, the State will provide a total of fifteen (l5) Union Leave days, not chargeable to the amounts of Union Leave days set forth in the Contract, in order to inform the employees of the terms and

procedures of the Contract. The utilization of the Union Leave under this Letter of Agreement and the arrangement of the meetings with employees shall be subject to the conditions for such matters set forth in the Contract with the following exceptions:

l. This leave shall be made available only to the Union's President and four (4) additional Local Union Officers whom he may designate.

2. Each of the individuals mentioned in number l above may use no more than three (3) days of such leave.

3. The use of this special leave time shall not be included within the twenty (20) day per person limit provided in the body of the contract.

B. After the contract is ratified, Local 195 and 518 Executive Board Members shall receive one (1) paid day each to attend training sessions on new contract language, for a total of forty-five (45) days, not chargeable to the amount of Union Leave Days set forth in the Contract; forty-one (41)

LETTER OF AGREEMENT #11

Snow Representative

In regard to the Department of Transportation Emergency Work Program for Snow and Ice Control, employees in the negotiating unit who are assigned to be the Department of Transportation's "Snow

Representative" will receive a special project rate and will be subject to all other requirements of the program.

LETTER OF AGREEMENT #12

Arbitrators

Each member of the panel of arbitrators and the neutral on the Joint Union/Management Panel serves by mutual agreement of the State and the Union. If, during the term of the agreement, either side finds an arbitrator or the neutral to be unacceptable the parties will meet and attempt to resolve the problem. The arbitrator or neutral will be removed if the parties are unable to reach agreement regarding his continuation. A new arbitrator or neutral will be selected to replace the discontinued panel member. If the parties are unable to agree on such new panel member, an ad hoc replacement arbitrator or neutral shall be selected on a case-by-case basis under the selection procedure of PERC.

LETTER OF AGREEMENT #l3

Job Security, Privatization

A. This side letter will confirm the understanding between the parties regarding some of the efforts the State of New Jersey (State) will undertake to lessen the impact of future privatization initiatives or the closing of State facilities that occur during the period from ratification of this contract through June 30, 2011, and which impact on employees in IFPTE Local 195 and SEIU Local 518 negotiation units. This letter refers to negotiation unit employees who are ultimately laid off at the conclusion of the State's layoff procedures, but the layoff would have to be the result of the State's decision to privatize a function or to close a facility.

B. In the event the State seriously considers privatization or closure of a facility or function that could result in the layoff or displacement of bargaining unit employees, the State agrees to give the Union reasonable advance notice, but no less that 120 days prior to awarding a privatization

contract to perform the work or closure of a facility. Accompanying the notice will be a detailed accounting of all costs under the privatization and a comprehensive cost analysis.

C. The Union shall be given the opportunity to demonstrate that unit employees will do the same work more efficiently than a private contractor. The State agrees to provide the Union with relevant cost information necessary to enable the Union to develop its economic position, including public documents involving the RFP, once issued, and shall meet with the Union within 30 days of the issuance of the RFP. It is understood that in any event, the decision to privatize is a managerial prerogative that may not be subject to the negotiation process.

D. The parties shall utilize the State auditor to determine whether substantial cost savings will occur if the privatization occurs. Where the State auditor determines there is no substantial cost savings, the State will undertake best efforts to ensure there shall be no layoff or adverse economic

E. If there is pending or proposed general layoff, the State shall review existing private contracts for work similar to that of the employees considered for layoff or dislocation. Unless a cost analysis shows substantial cost savings for those existing private contracts, the State will use its best efforts to bring the work performed under private contract(s) back in house and the State shall use the displaced worker pool to keep workers employed while the State determines whether to bring such work back in the house.

F. Effective July 1, 2007, when privatization is undertaken as a substantial cost savings, the State Auditor will conduct periodic post audit cost analyses to determine whether or not there continues to be substantial cost savings. Where there is not substantial cost savings, the State shall make its

G. The State agrees to make good faith efforts that shall include compliance with all DOP regulations to lessen the possibility of the layoff or demotion-in-lieu-of layoff of employees in the negotiation unit. Where practicable, these efforts will be made whenever workers are placed at risk through privatization, or program reductions or eliminations for reasons of economy, efficiency, or other reason.

Consistent with DOP regulations, the State will consider the following pre-layoff actions prior to any permanent employees being laid off or demoted:

H. The efforts the State will undertake to alleviate the impact on employees laid off as a result of such actions shall include one or more of the following as appropriate under the existing circumstances and shall be subject to discussions between the State and the Union:

2. Establishing hiring freezes for positions determined by the Department of Personnel to have the same or similar duties and responsibilities at other State locations within the department affected to

create openings which will be filled by qualified laid off employees and, if practicable, by employees targeted for layoff, all in accordance with DOP and SAC rules and regulations;

3. Continuing health coverage under COBRA which the State will pay for a certain limited transition period but not less than three (3) months in duration; and

4. Providing training for qualified employees to the extent there are openings and laid off employees require training to fill them.

5. Where there is substantial cost savings, and the State chooses to privatize, the State agrees to use the displaced worker pool in order to lessen the impact of such layoff.

6. Good faith efforts will be made to fill positions determined by the DOP to have substantially the same or similar duties and responsibilities at other State locations by qualified laid off or demoted employees and, if practicable, by employees targeted for layoff. As practicable, the State shall

train "at risk" employees to allow movement from the "at risk" location to work locations within or outside the appointing authority where positions are available. It is understood that all such actions must be consistent with operative law and DOP regulations.

A. The Tuition Waiver Program provides tuition assistance to employees who take approved courses at the College/University where they are employed on their own time. The intent of the program is to fulfill the needs of the College/University sponsoring the aid, State government as a whole and to enhance employee development. Each College/University shall determine its needs and waive tuition for employees engaged in an approved course of study.

B. Each College/University shall prepare a tuition aid plan at the beginning of each fiscal year with consideration given to affirmative action responsibilities. The plan shall specify:

1. Employee eligibility which is limited to full-time, permanent employees in the classified and unclassified services with exceptions granted on a case-by-case basis by the College/University.

3. Maximum amount of aid available per person not to exceed $1000.00 or the cost of twelve (12) credits, whichever is greater, per semester or educational program;

C. Employees who do not satisfactorily complete courses, for which tuition waiver had been granted, shall be required to reimburse the College/University for all waived costs. Until such reimbursement has been made, no further waivers will be available to that employee.

D. 1. It is understood that major programmatic changes shall not be made without negotiating with the Union whenever that obligation would exist.

2. Additional criteria for determining eligibility within the program may be established by the College/University.

E. When an employee is on an approved program of study under the tuition waiver program, that employee may elect to take courses under that study program either at the State College/University where the employee works, or at another State College/University if such course is available there.

Courses taken at another State College are subject to the same contractual requirements as the courses taken at the College where the employee works. The parties agree that the Union can negotiate directly with the colleges to amend the provisions of this letter agreement on the issue of dependent coverage and the use of lunch and break times for class participation.

A. Under Title 11A the Department of Personnel has the responsibility to determine the status of employees placed in an unclassified title. The IFPTE and the NJSMVEU may request that the Department of Personnel undertake a review of the status of those titles placed in the unclassified

B. The Union may request a review of the status of unclassified titles they represent through the Governor's Office of Employee Relations which will forward such review request to the Department of Personnel. The Department of Personnel has agreed to commence a review process 30 days

following a submission of appropriate unclassified titles from the Governor's Office of Employee Relations.

C. It is further agreed that the Union may be involved in the review process as to making recommendations to the Department of Personnel and as to the status of unclassified titles they represent.

The State and the Union are contracting parties in an agreement concerning wages and terms and conditions of employment for the period July 1, 2007 through June 30, 2011. One article of that agreement embodies a condition whereby employees are required to pay a representation fee to the Union. As a condition of the continuance of that requirement, it is understood that the Union will provide relevant financial information to employees and maintain its demand and return system in such manner as to be in accord with the then current law and determinations by the U.S. Supreme Court in all related matters but specifically with regard to expeditious response, provision of required information and the preservation of individual's constitutional rights; and further, it is understood that any rules or regulations promulgated by the New Jersey Public Employment Relations Commission concerning this matter will be abided by in the administration of the program.

LETTER OF AGREEMENT #17

Safety Specialist 1, 2, Trainee/Pass or Rejection Punch

A. Safety Specialist 1, Safety Specialist 2 and Safety Specialist Trainee in the Division of Motor Vehicles shall not be required to pay for loss of the "Pass or Rejection Punch" by theft or damage from explosion, fire or like traumatic incident wherein the "Pass or Rejection Punch" is damaged to

such an extent that it is unusable and the theft or damage is not due to any fault of the employee.

B. In such cases the State will replace the "Pass or Rejection Punch" with no cost to the employee. The employee may be required to provide information to substantiate that the loss or damage was not his/her fault.

A. The Executive Director of the New Jersey Water Supply Authority or his designee will advise employees in the Operations, Maintenance and Services and Crafts and Inspection and Security Units if a vacancy in such units may be filled through the promotional process. For purposes of this section, a promotion means the advancement of an employee to a job classification at a higher salary range.

B. The Executive Director or designee will also indicate whether applicants for the vacancy will be recruited only internally or whether there will be simultaneous internal/external recruitment. An initial decision that applicants will be recruited only internally shall not later preclude the New Jersey Water Supply Authority, after reviewing the internal applicants, from advertising the position externally.

C. The announcement of the promotional opportunity will be posted for a period of at least 7 days and will include, in addition to the information required above, a description of the job, salary range, any required qualifications, shift assignment and procedures to be followed by employees interested in applying. A copy of the posting will be sent to the Union Headquarters.

D. Employees in the above mentioned units at New Jersey Water Supply Authority who meet the minimum qualifications for the position may apply. The New Jersey Water Supply Authority will consider education, experience, licenses, knowledge, skills and abilities in deciding who will be promoted. Where all factors are equal, seniority will be considered.

E. Each internal candidate will be notified in writing of the Executive Director or designee's decision with respect to his candidacy. This decision will indicate: 1) that the applicant has been offered the position, or 2) that the applicant has not been offered the position, or 3) that the position will now be advertised externally and he will continue to be considered for the position together with external candidates.

F. Where a promotion is consummated as a result of this procedure, the appointing authority will post the name of the individual promoted for seven (7) calendar days and will forward a copy to the Union Headquarters. If an external candidate is hired to fill the position, the name of the individual will be provided to the Chapter President and the Union Headquarters.

LETTER OF AGREEMENT #19

Layoff and Recall Procedures for the New Jersey Water Supply Authority

A. In the event the New Jersey Water Supply Authority determines that a layoff of employees is necessary, the New Jersey Water Supply Authority will follow, to the extent feasible, the system of protections and procedures agreed to by the parties. The New Jersey Water Supply Authority retains

the prerogative to limit bumping rights to something other than Agency-wide. The language of Article 38, Layoff and Recall-Career Service, of the Contract is illustrative of the system. Seniority of involved individuals will be computed in accord with Article 39, Layoff and Recall for Unclassified

B. Since possession of the "Black Seal" low pressure boiler operator license or Commercial Driver's License is a requirement for various job assignments in the Agency, individuals not holding a "Black Seal" license or Commercial Driver's License may be restricted in their bumping rights due to lack of qualification. However, the agency retains the prerogative to allow employees full bumping rights even if they do not possess the “Black seal” license or Commercial Driver’s License. In those circumstances

continued employment will normally be contingent upon attainment of the “Black Seal” license or Commercial Driver’s License within six (6) months. Exceptions will be discussed with the Union if timely request is made. If the Agency does not permit full bumping rights, it will attempt to place all

persons with greater seniority, but who do not possess the "Black Seal" license or Commercial Driver's License in job assignments where the "Black Seal" license or Commercial Driver's License is not a mandatory requirement. It is understood that operational effectiveness must be maintained.

C. Employees shall be provided with a generalized layoff notice of forty-five (45) days. The Union will be provided with notice of the layoff at the same time notice is given to the employees. The New Jersey Water Supply Authority will meet with the Union, if requested in writing, to discuss alternatives to the layoff and, if requested in writing, provide the Union with a list of the names of the employees at the New Jersey Water Supply Authority whose positions will be vacated or abolished.

D. This letter of agreement shall be grievable pursuant to the provisions of Article 7, Grievance Procedure, section A.1. (contractual grievance).

LETTER OF AGREEMENT #20

Administration of Contrast Meetings for the

New Jersey Water Supply Authority

A. 1. Should it appear necessary or appropriate, the New Jersey Water Supply Authority and the Union representatives will meet quarterly to discuss problems relating to the administration of this Contract.

2. Such representatives of the New Jersey Water Supply Authority and the Union shall meet some time during the second week of July, October, January and April, or whenever the parties mutually deem it necessary. These meetings are not intended to bypass the grievance procedure or to be

considered collective negotiation meetings, but are intended as a means of fostering good employment relations through communications between the parties.

3. Either party may request a meeting and shall submit a written agenda of topics to be discussed seven (7) days prior to such meetings.

B. A maximum of three (3) members of the Unit may attend such meetings and if on duty, shall be granted time off to attend, not to be deducted from the time provided in Article 33, Union Rights and Representatives.

C. Additional meetings as described above may be held at the request of either party at a mutually agreeable time.

LETTER OF AGREEMENT #21

Labor Management Health Care Advisory Committee

A. There shall be established a Labor Management Health Care Advisory Committee to expedite, on a voluntary basis, the transition of negotiations unit employees from the Traditional Plan and Health Maintenance Organizations (HMOs) to the New Jersey Plus from July 1, 1999 through December 31, 2000. The Committee shall consist of four designees of the Division of Pensions and Benefits and four designees to be selected by the Union. The Committee shall decide what advice and recommendations will be made in determining the following issues:

1. County-by-county problem solving In-Network establishment with a standard of two doctors within a five mile radius of the covered employee where sufficient providers exist; and at least 75% of the hospitals in New Jersey under contract.

2. For current employees in rural areas where access is less than two primary care physicians within 20 miles, the minimum solution shall be the design of the Traditional Plan.

3. All problems concerning transition cases and pre-existing conditions shall be resolved by having as the minimum solution the design of the Traditional Plan.

B. The Committee decisions shall be by majority vote. Ties shall be broken by the State Health Benefits Commission. The Committee shall endeavor to make the benefits of New Jersey Plus available to a maximum number of employees in the negotiations unit, discuss problems of substance abuse, and shall create conditions to facilitate the movement of State employees and their dependents from the Traditional Plan and Health Maintenance Organizations to New Jersey Plus.

LETTER OF AGREEMENT #22

Health Care Cost Containment Committee

A. The State and the Union agree to continue the Labor-Management Cost Containment Committee with equal representation for management and the Union. All costs associated with implementing the Committee's objectives that are mutually agreed to by Union and management shall be borne by the State. The term "health insurance carrier" shall include all providers of health services for represented employees, including HMOs and plan administrators. The Committee shall:

1. Conduct an ongoing study of activities which have the potential of limiting health plan costs without shifting costs to workers or otherwise reducing levels of benefits or quality of care. The study shall develop recommendations for measures to hold insurance carriers, administrators and hospitals and physicians more accountable for controlling health care costs.

2. Conduct an ongoing review of any cost-control programs agreed upon in the health care benefits contract. In performance of its duties, the Committee may have direct access to representatives of all health plan carriers providing plans to employees when and as deemed appropriate by management and the Union. The Committee shall receive copies of public document reports on the health plan (including health plan costs and utilization information) and shall have the ability to request additional reports mutually agreed upon by management and the Union.

B. The Committee shall have the ability to request regular reports on cost-control programs mutually agreed upon by management and the Union. Such reports shall address costs of operating the program, activities, savings (including assumptions) and future plans/recommendations.

C. The Committee may also recommend additional measures or alternatives, consistent with the goals set forth above.

A. The State agrees to assume upon retirement the full cost of the Health Benefits coverage for State employees and their dependents including the cost of charges under Part B of the Federal Medicare Program for eligible employees and their spouses, but not including survivors, for employees who accrue 25 years of pension credit service, as provided under the State plan, by July 1, 1997, and those employees who retire for disability on the basis of fewer years of pension credit in the State plan by July 1, 1997.

B. Those employees who accrue 25 years of pension credit service or retire on a disability retirement during the period from July 1, 1997 through June 30, 2000 are eligible to receive the following when they retire:

1. Employees in this group who elect to enroll in the Managed Care/Point of Service (NJPLUS) which shall be succeeded by the PPO described in Article 24 or any of the approved HMO Plans shall not have to contribute to the cost of any premium for health insurance coverage.