N.Y. Civil Service Law § 167: Contributions

§ 167. Contributions. 1. (a) The full cost of premium or subscription

charges for the coverage of retired state employees who are enrolled in

the statewide and the supplementary health benefit plans established

pursuant to this article and who retired prior to January first,

nineteen hundred eighty-three shall be paid by the state. Nine-tenths of

the cost of premium or subscription charges for the coverage of state

employees and retired state employees retiring on or after January

first, nineteen hundred eighty-three who are enrolled in the statewide

and supplementary health benefit plans shall be paid by the state.

Three-quarters of the cost of premium or subscription charges for the

coverage of dependents of such state employees and retired state

employees shall be paid by the state. Except as provided in paragraph

(b) of this subdivision, the state shall contribute toward the premium

or subscription charges for the coverage of each state employee or

retired state employee who is enrolled in an optional benefit plan and

for the dependents of such state employee or retired state employee the

same dollar amount which would be paid by the state for the premium or

subscription charges for the coverage of such state employee or retired

state employee and his or her dependents if he or she were enrolled in

the statewide and the supplementary health benefit plans, but not in

excess of the premium or subscription charges for the coverage of such

state employee or retired state employee and his or her dependents under

such optional benefit plan. For purposes of this subdivision, employees

of the state colleges of agriculture, home economics, industrial labor

relations, and veterinary medicine, the state agricultural experiment

station at Geneva, and any other institution or agency under the

management and control of Cornell university as the representative of

the board of trustees of the state university of New York, and employees

of the state college of ceramics under the management and control of

Alfred university as the representative of the board of trustees of the

state university of New York, shall be deemed to be state employees

whose salaries or compensation are paid directly by the state.

(b) Effective January first, nineteen hundred eighty-nine,

notwithstanding any other law, rule or regulation, and where, and to the

extent that, an agreement between the state and an employee organization

entered into pursuant to article fourteen of this chapter so provides or

where and to the extent the employee health insurance council so directs

with respect to any other state employees and for retired state

employees retiring on or after January first, nineteen hundred

eighty-three, the state shall contribute nine-tenths of the cost of

premiums or subscription charges for coverage of each such state

employee or retired state employee who is enrolled in an optional

benefit plan and three-fourths of such premium or subscription charges

for dependents of such state employees or retired state employees

enrolled in such optional benefit plan; provided, however, effective

January first, nineteen hundred ninety-six, the contribution rates for

the hospitalization and medical components of each optional benefit plan

shall not exceed one hundred percent of the dollar amount of the state's

contribution toward the hospitalization and medical components of

individual and dependent coverage, respectively, in the Empire Plan. In

the case of state employees retiring prior to January first, nineteen

hundred eighty-three, the state shall contribute one hundred percent of

the individual premium and three-fourths of such premium for dependents

of such retired employees enrolled in such optional benefit plan;

however, these contribution rates shall not exceed one hundred percent

of the employer dollar amount contribution for individual and dependent

coverage respectively in the Empire Plan.

2. Each participating employer shall be required to pay not less than

fifty percentum of the cost of premium or subscription charges for the

coverage of its employees and retired employees who are enrolled in the

statewide only or the statewide and comparable supplementary health

benefit plans established pursuant to this article. Such employer shall

be required to pay not less than thirty-five percentum of the cost of

premium or subscription charges for the coverage of dependents of such

employees and retired employees. Such employer shall contribute toward

the premium or subscription charges for the coverage of each employee or

retired employee who is enrolled in an optional benefit plan and for the

dependents of such employee or retired employee the same dollar amount

which would be paid by such employer for the premium or subscription

charges for the coverage of such employee or retired employee and his or

her dependents if he or she were enrolled in the statewide health

benefit plan, but not in excess of the premium or subscription charges

for the coverage of such employee or retired employee and his or her

dependents under such optional benefit plan. Such employer shall not be

required to pay the cost of premium or subscription charges for the

coverage of unpaid elected officials, or unpaid board members of a

public authority, or their dependents, provided, however that no unpaid

board member of a public authority shall be eligible to participate in

such benefit plan until he or she has served in such position for at

least six months. Subject to such regulations as the president may

prescribe, any participating employer may elect to pay higher rates of

contribution for the coverage of employees, retired employees and their

dependents; provided, however, that if a participating employer elects

to pay a higher or lower rate of contribution for its retired employees

or their dependents, or both, than that paid by the state for its

retired employees or their dependents, or both, amounts withheld from

the retirement allowances of such retired employees for their share of

premium or subscription charges, if any, shall, if the president so

requires, be paid to such participating employer which shall pay into

the health insurance fund the full cost of premium or subscription

charges for the coverage of such retired employees and their dependents.

Such election shall be exercised by the adoption of a resolution by its

governing body which, if required by law to be approved by any other

body or officer, shall have been so approved.

3. Contributions, if any, required to be paid by an employee or a

retired employee for his or her coverage and for the coverage of his or

her dependents, if any, shall be deducted from his or her salary

payments or from his or her retirement allowance, as the case may be.

Upon the written request of a survivor of such retirees or employees,

such contribution required to be paid for continued insurance coverage

shall be deducted from any retirement allowance to which he or she is

entitled.

4. Upon the retirement, on or after July first, nineteen hundred

sixty-five, of a state employee whose salary or compensation is paid

directly by the state, who is subject to a plan established by law,

rule, regulation, written order or written policy which provides for the

regular earning and accumulation of sick leave, and who is eligible to

continue coverage under the health benefit plan after retirement, the

department shall determine, based on the employee's age at the time of

retirement, the actuarial equivalent in monthly installments for the

remaining life expectancy of such retired employee, of the dollar value

of the earned and accumulated but unused sick leave standing to his or

her credit at the time of retirement, without interest. Such dollar

value shall be based on the employee's salary at the time of retirement.

In addition to regular employer contributions, contributions in the

amount of such monthly installments shall be paid from the state's

appropriation to the health insurance fund and applied towards the

charges for health benefits on account of such retired employee and his

or her dependents, to the extent necessary to pay such charges. The

remaining amount, if any, necessary to pay such charges shall be

contributed by such retired employee. On or after October first,

nineteen hundred seventy when such dollar value of such sick leave

amounts to less than one hundred dollars for a particular retired

employee, in lieu of contributions which would otherwise be required

from such retired employee, additional contributions shall be paid for

the state's appropriation to the health insurance fund and applied

towards the charges for health benefits on account of such retired

employee and his or her dependents until the sum of such additional

contributions equals such dollar value of such sick leave. The remaining

amount, if any, necessary to pay such charges shall be contributed by

such retired employee. For purposes of this subdivision, employees of

the state colleges of agriculture, home economics, industrial labor

relations, and veterinary medicine, the state agricultural experiment

station at Geneva, and any other institution or agency under the

management and control of Cornell university as the representative of

the board of trustees of the state university of New York, and employees

of the state college of ceramics under the management and control of

Alfred university as the representative of the board of trustees of the

state university of New York, shall be deemed to be state employees

whose salaries or compensation is paid directly by the state.

5. Subject to such regulations as the president may prescribe, any

participating employer may elect to make additional contributions

towards charges for health benefit coverage on account of its retired

employees and their dependents, based on the dollar value of their sick

leave accumulated but unused at the time of retirement. Such election

shall apply to employees in the service of the participating employer

who retire on or after the effective date of such election, who are

subject to a plan established by law, rule, regulation, written order or

written policy which provides for the regular earning and accumulation

of sick leave, and who are eligible to continue coverage under the

health benefit plan after retirement. The participating employer shall

certify to the department the dollar value of earned and accumulated but

unused sick leave standing to the credit of an employee at the time of

his or her retirement. Additional contributions shall be paid by such

participating employer and applied towards charges for health benefits

on account of its retired employees and their dependents in the same

manner as provided in subdivision four of this section with respect to

retired state employees and their dependents.

6. There is hereby created a health insurance fund which shall be

available without fiscal year limitation for premium or subscription

charge payments, for payment of health benefits to plan participants,

and for administrative services under any contract or contracts

purchased in accordance with this article. The amounts withheld from

employees and retired employees under subdivision three of this section,

all amounts appropriated by the state to such health insurance fund, and

all amounts contributed by any participating employer pursuant to

subdivision two of this section, shall be credited to such health

insurance fund. The income derived from any dividends, premium rate

adjustments or other refunds under any such contract or contracts shall

be credited to such fund and retained therein as a special reserve for

adverse fluctuation in future charges under any such contract or

contracts. Any interest earned by the investment of moneys in such

health insurance fund shall be added to such special reserve, become a

part of such special reserve, and be used for the purpose of such

special reserve.

7. The amounts required to be paid to any contracting corporation

under any contract entered into pursuant to the provisions of this

article shall be payable from such health insurance fund as audited by

and upon the warrant of the comptroller on vouchers certified or

approved by the president.

8. Notwithstanding any inconsistent provision of law, where and to the

extent that an agreement between the state and an employee organization

entered into pursuant to article fourteen of this chapter so provides,

the state cost of premium or subscription charges for eligible employees

covered by such agreement may be modified pursuant to the terms of such

agreement. The president, with the approval of the director of the

budget, may extend the modified state cost of premium or subscription

charges for employees or retirees not subject to an agreement referenced

above and shall promulgate the necessary rules or regulations to

implement this provision.

9. Any interest earned by the investment of moneys in the dental

insurance fund shall be added to such fund, become a part of such fund,

be used for the purpose of such fund, and be available without fiscal

year limitation.