N.Y. Public Authorities Law § 1210-a: Flexible benefits program

§ 1210-a. Flexible benefits program. 1. For purposes of this section,

the following terms shall have the following meanings:

a. "Code" shall mean the United States internal revenue code of

nineteen hundred eighty-six, as amended, and regulations promulgated

thereunder.

b. "Authority" shall mean (1) the New York city transit authority, (2)

the Manhattan and Bronx surface transit operating authority, or (3) the

Staten Island rapid transit operating authority.

c. "Employee" shall mean any officer or employee of any of the

entities set forth in paragraph c of this subdivision who is not

eligible to receive benefits from the New York city employee benefits

program.

For purposes of this section, an independent contractor shall not be

considered an employee.

d. "Flexible benefits program" shall mean the program established

pursuant to this section, qualifying as a cafeteria plan as defined in

section one hundred twenty-five of the code or any successor section

thereto providing similar benefits, and provided as a part of an

employee benefits program administered by the authority.

e. "Program administrator" shall mean that agent, as determined by the

authority, responsible for the maintenance and management of the

flexible benefits program as authorized in subdivision two of this

section.

2. The authority is authorized to establish and implement a flexible

benefits program for its employees who are not eligible to receive

benefits from the New York city employee benefits program, consistent

with applicable provisions of the code. It may enter into agreements

with persons or entities to act as program administrators of the

flexible benefits program. It shall establish regulations for the

appropriate administration of such flexible benefits program.

3. At the request of an employee, the chief fiscal officer of the

authority, or the officer responsible for the administration of the

authority's payroll, shall, by payroll deduction, adjust the payment of

the compensation of such employee as provided in a written statement by

the employee in connection with the establishment and maintenance of the

flexible benefits program as authorized by subdivision two of this

section, and shall transfer the amount so adjusted to the authorized

program administrator.

4. Moneys held for employees in any accounts established pursuant to

the flexible benefits program, as authorized in subdivision two of this

section, shall be held by the program administrator as agent for the

participating employee, shall be accounted for separately and shall

remain the property of the authority to the extent required by the code.

Notwithstanding any law to the contrary, moneys may be paid out of such

accounts without any appropriation by law. Any unexpended balances in

such accounts at the end of a plan year as that term is defined by the

United States internal revenue service shall be returned to the control

of the authority to the extent required by the code.

5. To the extent permitted by the code, any salary deduction or

deferral to an employee under the flexible benefits program established

pursuant to this section shall be considered part of such employee's

annual compensation for the purpose of computing pension contributions

and retirement benefits by any retirement system or plan to which the

authority contributes on behalf of said employee. However, this

subdivision shall in no way be construed to supersede the provisions of

sections four hundred thirty-one, five hundred twelve and six hundred

eight of the retirement and social security law or any other similar

provision of law which limits the salary base for computing retirement

benefits payable by a public retirement system.