New Jersey Code § 40A:10-20

Discontinuance of coverage; exception
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40A:10-20. Discontinuance of coverage; exception
The coverage of any employee, and of his dependents, if any, shall cease upon the discontinuance of his employment or upon cessation of active full-time employment in the classes eligible for coverage subject to such provision as may be made in any contract by his employer for limited continuance of coverage during disability, part-time employment, leave of absence other than leave for military service or layoff, and for continuance of coverage after retirement.
L.1979, c. 230, s. 1, eff. Oct. 15, 1979.

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