§ 206-A — Employee benefit fund; negotiating unit created by chapter four hundred three of the laws of nineteen hundred eighty-three

§ 206-a. Employee benefit fund; negotiating unit created by chapter\nfour hundred three of the laws of nineteen hundred eighty-three. 1.\nDefinitions. As used in this section, unless otherwise expressly stated:\n a. "Director" shall mean the director of employee relations.\n b. "Employee" shall mean any person in the service of the state of New\nYork who is appointed to and serving in a position contained within the\ncollective negotiating unit created by chapter four hundred three of the\nlaws of nineteen hundred eighty-three established by article fourteen of\nthe civil service law who is otherwise eligible for health insurance\ncoverage pursuant to law and the rules and regulations of the department\nof civil service, except that it shall not mean seasonal employees whose\nemployment is expected to last less than six months, employees in\ntemporary positions of less than six months duration, or employees\nholding appointments otherwise expected to last less than six months.\n c. "Retiree" shall mean any person who was an employee of the state of\nNew York on or after April first, nineteen hundred eighty-four in the\nnegotiating unit created by chapter four hundred three of the laws of\nnineteen hundred eighty-three and who immediately upon termination of\nemployment with the state is eligible to receive a service retirement\nbenefit from either the New York state employees' retirement system or\nthe New York city employees' retirement system.\n 2. Where, and to the extent that, an agreement between the state and\nan employee organization entered into pursuant to article fourteen of\nthe civil service law so provides on behalf of employees and upon audit\nand warrant of the comptroller, the director shall provide for the\npayment of monies quarterly to such employee organization for the\nestablishment and maintenance of an employee benefit fund established by\nthe employee organization for the employees in the negotiating unit\ncovered by the controlling provision of such agreement, such amount to\nbe determined consistent with the procedure established in said\nagreement, on the basis of the number of employees as defined herein on\nthe payroll during the payroll period the last day of which ends no\nlater than twenty-one calendar days before the beginning of the quarter\nnext following such day as determined by the comptroller. The amount,\nwhich will be determined pursuant to this section, for employees who are\npaid from special or administrative funds, will be paid from the\nappropriations as provided by law, in which case the comptroller will\nestablish procedures to ensure repayment from general state charge\nappropriations or from said special or administrative funds. The\ndirector may enter into an agreement with an employee organization which\nsets forth the specific terms and conditions for the establishment and\nadministration of an employee benefit fund as a condition for the\ntransmittal of monies pursuant to this section.\n 3. Such employee organization shall periodically as specified by the\ndirector, supply a description of the benefits purchased or provided by\nthe employee benefit fund, the utilization experience of the benefit\nfund, the amount disbursed for or the cost of such benefits and such\nother information as may be requested by the director.\n 4. The employee organization shall report to the comptroller, in the\nform and manner as he may direct, the amount expended for the purchase\nof or providing for such benefits for any period specified by the\ncomptroller. The comptroller is hereby authorized to audit the books of\nthe employee organization with respect to any monies transmitted to it\npursuant to this section.\n 5. Neither the state nor any officer or employee of the state\n(including "employee" as defined herein and any other employee of the\nstate) shall be a party to any contract or agreement entered into by any\nemployee organization providing for benefits purchased in whole or in\npart with monies transmitted to such employee organization pursuant to\nthis section. No benefit provided pursuant to such contracts or\nagreements shall be payable by the state and all such benefits shall be\npaid by the responsible parties to such agreements or contracts of such\nagreements or contracts. The employee organization shall be a fiduciary\nwith respect to an employee benefit fund established pursuant to this\nsection.\n 6. Nothing herein shall be deemed to diminish, impair or reduce any\nbenefit otherwise payable to any employee established or authorized by\nlaw, rule or regulation by reason of such employee's lack of eligibility\nto participate in any benefit program established by an employee\norganization pursuant to this section.\n 7. In the event it is determined that the monies transmitted to an\nemployee organization pursuant to this section is income for which\npayroll deductions are required for income tax withholdings from the\nsalary or wages of employees pursuant to law, the comptroller shall\ndetermine the amount of such withholdings required and deduct the amount\nso required to be withheld from the salary or wages of the employees\nconcerned.\n 8. The employee organization shall indemnify the state for any claims\nwhatsoever paid by it arising from the establishment, administration or\ndiscontinuation of any employee benefit provided pursuant to this\nsection, together with reasonable costs of litigation arising therefrom.\n 9. Insofar as the provisions of this section are inconsistent with the\nprovisions of any other act, general or special, the provisions of this\nsection shall be controlling.\n