§ 167 — Contributions

New York § 167

• Jurisdiction: New York
• Law CVS: Civil Service
• Art. 11: Health Benefits For State and Retired State Employees

Text

§ 167. Contributions. 1. (a) The full cost of premium or subscription\ncharges for the coverage of retired state employees who are enrolled in\nthe statewide and the supplementary health benefit plans established\npursuant to this article and who retired prior to January first,\nnineteen hundred eighty-three shall be paid by the state. Nine-tenths of\nthe cost of premium or subscription charges for the coverage of state\nemployees and retired state employees retiring on or after January\nfirst, nineteen hundred eighty-three who are enrolled in the statewide\nand supplementary health benefit plans shall be paid by the state.\nThree-quarters of the cost of premium or subscription charges for the\ncoverage of dependents of such state employees and retired state\nemployees shall be paid by the state. Except as provided in paragraph\n(b) of this subdivision, the state shall contribute toward the premium\nor subscription charges for the coverage of each state employee or\nretired state employee who is enrolled in an optional benefit plan and\nfor the dependents of such state employee or retired state employee the\nsame dollar amount which would be paid by the state for the premium or\nsubscription charges for the coverage of such state employee or retired\nstate employee and his or her dependents if he or she were enrolled in\nthe statewide and the supplementary health benefit plans, but not in\nexcess of the premium or subscription charges for the coverage of such\nstate employee or retired state employee and his or her dependents under\nsuch optional benefit plan. For purposes of this subdivision, employees\nof the state colleges of agriculture, home economics, industrial labor\nrelations, and veterinary medicine, the state agricultural experiment\nstation at Geneva, and any other institution or agency under the\nmanagement and control of Cornell university as the representative of\nthe board of trustees of the state university of New York, and employees\nof the state college of ceramics under the management and control of\nAlfred university as the representative of the board of trustees of the\nstate university of New York, shall be deemed to be state employees\nwhose salaries or compensation are paid directly by the state.\n (b) Effective January first, nineteen hundred eighty-nine,\nnotwithstanding any other law, rule or regulation, and where, and to the\nextent that, an agreement between the state and an employee organization\nentered into pursuant to article fourteen of this chapter so provides or\nwhere and to the extent the employee health insurance council so directs\nwith respect to any other state employees and for retired state\nemployees retiring on or after January first, nineteen hundred\neighty-three, the state shall contribute nine-tenths of the cost of\npremiums or subscription charges for coverage of each such state\nemployee or retired state employee who is enrolled in an optional\nbenefit plan and three-fourths of such premium or subscription charges\nfor dependents of such state employees or retired state employees\nenrolled in such optional benefit plan; provided, however, effective\nJanuary first, nineteen hundred ninety-six, the contribution rates for\nthe hospitalization and medical components of each optional benefit plan\nshall not exceed one hundred percent of the dollar amount of the state's\ncontribution toward the hospitalization and medical components of\nindividual and dependent coverage, respectively, in the Empire Plan. In\nthe case of state employees retiring prior to January first, nineteen\nhundred eighty-three, the state shall contribute one hundred percent of\nthe individual premium and three-fourths of such premium for dependents\nof such retired employees enrolled in such optional benefit plan;\nhowever, these contribution rates shall not exceed one hundred percent\nof the employer dollar amount contribution for individual and dependent\ncoverage respectively in the Empire Plan.\n 2. Each participating employer shall be required to pay not less than\nfifty percentum of the cost of premium or subscription charges for the\ncoverage of its employees and retired employees who are enrolled in the\nstatewide only or the statewide and comparable supplementary health\nbenefit plans established pursuant to this article. Such employer shall\nbe required to pay not less than thirty-five percentum of the cost of\npremium or subscription charges for the coverage of dependents of such\nemployees and retired employees. Such employer shall contribute toward\nthe premium or subscription charges for the coverage of each employee or\nretired employee who is enrolled in an optional benefit plan and for the\ndependents of such employee or retired employee the same dollar amount\nwhich would be paid by such employer for the premium or subscription\ncharges for the coverage of such employee or retired employee and his or\nher dependents if he or she were enrolled in the statewide health\nbenefit plan, but not in excess of the premium or subscription charges\nfor the coverage of such employee or retired employee and his or her\ndependents under such optional benefit plan. Such employer shall not be\nrequired to pay the cost of premium or subscription charges for the\ncoverage of unpaid elected officials, or unpaid board members of a\npublic authority, or their dependents, provided, however that no unpaid\nboard member of a public authority shall be eligible to participate in\nsuch benefit plan until he or she has served in such position for at\nleast six months. Subject to such regulations as the president may\nprescribe, any participating employer may elect to pay higher rates of\ncontribution for the coverage of employees, retired employees and their\ndependents; provided, however, that if a participating employer elects\nto pay a higher or lower rate of contribution for its retired employees\nor their dependents, or both, than that paid by the state for its\nretired employees or their dependents, or both, amounts withheld from\nthe retirement allowances of such retired employees for their share of\npremium or subscription charges, if any, shall, if the president so\nrequires, be paid to such participating employer which shall pay into\nthe health insurance fund the full cost of premium or subscription\ncharges for the coverage of such retired employees and their dependents.\nSuch election shall be exercised by the adoption of a resolution by its\ngoverning body which, if required by law to be approved by any other\nbody or officer, shall have been so approved.\n 3. Contributions, if any, required to be paid by an employee or a\nretired employee for his or her coverage and for the coverage of his or\nher dependents, if any, shall be deducted from his or her salary\npayments or from his or her retirement allowance, as the case may be.\nUpon the written request of a survivor of such retirees or employees,\nsuch contribution required to be paid for continued insurance coverage\nshall be deducted from any retirement allowance to which he or she is\nentitled.\n 4. Upon the retirement, on or after July first, nineteen hundred\nsixty-five, of a state employee whose salary or compensation is paid\ndirectly by the state, who is subject to a plan established by law,\nrule, regulation, written order or written policy which provides for the\nregular earning and accumulation of sick leave, and who is eligible to\ncontinue coverage under the health benefit plan after retirement, the\ndepartment shall determine, based on the employee's age at the time of\nretirement, the actuarial equivalent in monthly installments for the\nremaining life expectancy of such retired employee, of the dollar value\nof the earned and accumulated but unused sick leave standing to his or\nher credit at the time of retirement, without interest. Such dollar\nvalue shall be based on the employee's salary at the time of retirement.\nIn addition to regular employer contributions, contributions in the\namount of such monthly installments shall be paid from the state's\nappropriation to the health insurance fund and applied towards the\ncharges for health benefits on account of such retired employee and his\nor her dependents, to the extent necessary to pay such charges. The\nremaining amount, if any, necessary to pay such charges shall be\ncontributed by such retired employee. On or after October first,\nnineteen hundred seventy when such dollar value of such sick leave\namounts to less than one hundred dollars for a particular retired\nemployee, in lieu of contributions which would otherwise be required\nfrom such retired employee, additional contributions shall be paid for\nthe state's appropriation to the health insurance fund and applied\ntowards the charges for health benefits on account of such retired\nemployee and his or her dependents until the sum of such additional\ncontributions equals such dollar value of such sick leave. The remaining\namount, if any, necessary to pay such charges shall be contributed by\nsuch retired employee. For purposes of this subdivision, employees of\nthe state colleges of agriculture, home economics, industrial labor\nrelations, and veterinary medicine, the state agricultural experiment\nstation at Geneva, and any other institution or agency under the\nmanagement and control of Cornell university as the representative of\nthe board of trustees of the state university of New York, and employees\nof the state college of ceramics under the management and control of\nAlfred university as the representative of the board of trustees of the\nstate university of New York, shall be deemed to be state employees\nwhose salaries or compensation is paid directly by the state.\n 5. Subject to such regulations as the president may prescribe, any\nparticipating employer may elect to make additional contributions\ntowards charges for health benefit coverage on account of its retired\nemployees and their dependents, based on the dollar value of their sick\nleave accumulated but unused at the time of retirement. Such election\nshall apply to employees in the service of the participating employer\nwho retire on or after the effective date of such election, who are\nsubject to a plan established by law, rule, regulation, written order or\nwritten policy which provides for the regular earning and accumulation\nof sick leave, and who are eligible to continue coverage under the\nhealth benefit plan after retirement. The participating employer shall\ncertify to the department the dollar value of earned and accumulated but\nunused sick leave standing to the credit of an employee at the time of\nhis or her retirement. Additional contributions shall be paid by such\nparticipating employer and applied towards charges for health benefits\non account of its retired employees and their dependents in the same\nmanner as provided in subdivision four of this section with respect to\nretired state employees and their dependents.\n 6. There is hereby created a health insurance fund which shall be\navailable without fiscal year limitation for premium or subscription\ncharge payments, for payment of health benefits to plan participants,\nand for administrative services under any contract or contracts\npurchased in accordance with this article. The amounts withheld from\nemployees and retired employees under subdivision three of this section,\nall amounts appropriated by the state to such health insurance fund, and\nall amounts contributed by any participating employer pursuant to\nsubdivision two of this section, shall be credited to such health\ninsurance fund. The income derived from any dividends, premium rate\nadjustments or other refunds under any such contract or contracts shall\nbe credited to such fund and retained therein as a special reserve for\nadverse fluctuation in future charges under any such contract or\ncontracts. Any interest earned by the investment of moneys in such\nhealth insurance fund shall be added to such special reserve, become a\npart of such special reserve, and be used for the purpose of such\nspecial reserve.\n 7. The amounts required to be paid to any contracting corporation\nunder any contract entered into pursuant to the provisions of this\narticle shall be payable from such health insurance fund as audited by\nand upon the warrant of the comptroller on vouchers certified or\napproved by the president.\n 8. Notwithstanding any inconsistent provision of law, where and to the\nextent that an agreement between the state and an employee organization\nentered into pursuant to article fourteen of this chapter so provides,\nthe state cost of premium or subscription charges for eligible employees\ncovered by such agreement may be modified pursuant to the terms of such\nagreement. The president, with the approval of the director of the\nbudget, may extend the modified state cost of premium or subscription\ncharges for employees or retirees not subject to an agreement referenced\nabove and shall promulgate the necessary rules or regulations to\nimplement this provision.\n 9. Any interest earned by the investment of moneys in the dental\ninsurance fund shall be added to such fund, become a part of such fund,\nbe used for the purpose of such fund, and be available without fiscal\nyear limitation.\n