Specifies that members of State Health Benefits Plan Design Committee and School Employees' Health Benefits Plan Design Committee have fiduciary duty.

2026-2027 Regular Session Introduced by Roy Freiman

Establishes a fiduciary duty for members of New Jersey’s State Health Benefits Plan Design Committee and School Employees' Health Benefits Plan Design Committee to act in the plans

Introduced, Referred to Assembly State and Local Government Committee

Bill Summary: A 5265 (Session 222) – New Jersey

Purpose and intent

Establishes a fiduciary duty requirement for members of two specific health benefits design committees in New Jersey:

State Health Benefits Plan Design Committee
School Employees' Health Benefits Plan Design Committee

The primary aim is to formalize and codify the obligation of committee members to act in the best financial and programmatic interests of the plans and their participants.

Key provisions and changes

Fiduciary duty obligation:

Members of the State Health Benefits Plan Design Committee and the School Employees' Health Benefits Plan Design Committee would owe a fiduciary duty to the plan, its participants, and beneficiaries.
This duty typically encompasses duties of loyalty and prudence, requiring decisions to be made with the plan’s interests ahead of personal or other competing interests.

Scope of responsibility:

Applies specifically to design, governance, and related decision-making activities of the two health benefits design committees.
Likely covers activities such as selecting insurers or plan designs, approving benefits, setting premiums or contribution levels, and monitoring performance, though the bill text would provide precise scope.

Accountability and compliance:

By codifying fiduciary duties, committee members could be subject to fiduciary standards under existing state law, including potential civil or ethical consequences for breaches or conflicts of interest.

Relationship to existing law:

Builds on current governance structures of the State Health Benefits Plan and School Employees' Health Benefits Plan by adding a fiduciary layer to committee duties.
May reference or align with standard fiduciary principles used in other state pension or benefit programs.

Who is affected

Individuals serving on:

State Health Benefits Plan Design Committee
School Employees' Health Benefits Plan Design Committee

Potentially affected stakeholders include:

Plan participants and beneficiaries (as the beneficiaries’ interests are prioritized)
State and school entities funding or administering the plans
Vendors, insurers, and service providers engaged by the design committees

Procedural and timeline aspects

Status: Introduced and referred on 2026-06-15.

Committee: Assembly State and Local Government Committee (assignment for consideration and potential amendment).

Next steps in the legislative process:

Committee review, possible amendments, and vote
If passed, movement through additional committees and floor votes in the Assembly
Potential consideration by the Senate and final approval before becoming law (subject to separate Senate actions)

Additional notes

Co-sponsor: Roy Freiman

As introduced, no fiscal impact is specified here; the bill’s fiscal implications would depend on whether fiduciary duties create new compliance costs or affect benefits administration.

If you’d like, I can tailor this summary to emphasize fiscal implications, potential enforcement mechanisms, or compare it with fiduciary requirements in similar state programs.