Newark Schools Change Prescription Benefit Plan For Employees: 1st Time In 20 Years

Newark, NJ – For the first time in 20 years, the Newark Public Schools District will be changing the prescription benefits provider for its workers.

With the district facing a “large projected budget gap,” administrators began transitioning workers with the Newark Teachers Union (NTU) to the district's new prescription benefits provider, Benecard, on Friday, according to school news release.

The district’s other employees transitioned to Benecard in February, school administrators stated.

The move is estimated to save the district at least $1.1 million a year, and “guarantees equal or better benefits for employees,” according to school administrators.

The switch was made after the New Jersey Superior Court ruled on March 16 to allow the district to move all NTU employees to BeneCard, school administrators stated.

The NTU had questioned the district’s authority to change benefits plans for employees without the approval of a joint entity - the Supplemental Fringe Benefits Fund - that was established more than 30 years ago.

“The district has our employees’ best interest in mind, and I am committed to working with the Newark Teachers Union and our employees to ensure this new benefits program works for everyone,” Newark Public Schools Superintendent Christopher Cerf stated. “I hope that the Superior Court’s ruling brings the Newark Teachers Union to the negotiating table, rather than the courtroom.”

Newark Teachers Union representatives posted the following reaction to the plan change on the organization’s website:

“After serving as the prescription benefits provider for the Supplemental Fringe Benefits Fund for over 20 years, General Prescriptions Program has terminated its contract with the SFB. As a result of GPP’s termination, BeneCard, will be installed in its place effective April 1. Notwithstanding GPP’s termination, we are continuing with our pending legal and grievance actions against the Newark Public Schools for their unilateral and improper selection of BeneCard and will keep you posted.”

NTU representatives added:

“We haven’t lost the case… the provider dropped out. There’s a big difference and we need coverage in the meantime.”

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