New Jersey Governor Christie signed the Pensions and Health Benefits Reform Act into effect on June 28th, 2011. This recently passed law requires all public employers, including local government employers and boards of education, to offer an FSA (Flexible Spending Arrangement) that satisfies the requirements under Section 125 of the Internal Revenue Code for reimbursement of medical and dental plan participant costs. Please see the link below outlining the new law in detail:

http://www.state.nj.us/treasury/pensions/reform-2011.shtml