N.Y. State Finance Law § 201-a: Flexible benefits program for certain state officers and employees

§ 201-a. Flexible benefits program for certain state officers and

employees. 1. This section shall be applicable to employees as defined

in subdivision one of section eleven of chapter four hundred sixty of

the laws of nineteen hundred eighty-two, as amended and employees and

officers of public authorities and public benefit corporations, annual

employees of the legislative branch, and judges and justices of the

unified court system and non-judicial employees of the unified court

system whose positions are not in collective negotiating units under

article fourteen of the civil service law who elect to participate in

the benefits of the employee benefit program provided by paragraph (a)

of subdivision two of section eleven of chapter four hundred sixty of

the laws of nineteen hundred eighty-two, as amended.

2. The director of employee relations, in consultation with the

director of the budget and the president of the civil service

commission, is authorized to establish a flexible benefits program

consistent with sections seventy-nine, one hundred five, one hundred

six, one hundred twenty-five and one hundred twenty-nine of the internal

revenue code and regulations adopted pursuant thereto, and implement

such program subject to the approval of the director of the budget.

3. At the request of an employee as defined in subdivision one of this

section, the comptroller shall, by payroll deduction, defer the payment

of part of the compensation of such employee as provided in a written

statement by the employee for the purpose of establishing and

maintaining a flexible spending account as authorized in subdivision two

of this section, and shall transfer the amount so deferred to the

authorized program administrator.

4. The term "program administrator" shall mean that agent, as

determined by the director of employee relations, responsible for the

maintenance and management of flexible spending accounts as authorized

in subdivision two of this section.

5. Moneys held in such accounts for the employees of each such

participating employer shall be held by the program administrator as

agent for the participating employee and shall be accounted for

separately and shall remain the property of such participating employer.

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

accounts without any appropriation by law. All payments of moneys from

such accounts shall be made only in accordance with the flexible

benefits program audit of the state comptroller. Any unexpended balances

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

the internal revenue service shall be returned to the control of the

participating employer and, in the case of the state, to the general

fund.

6. To the extent permitted by section one hundred twenty-five of the

internal revenue code and regulations adopted pursuant thereto, any

salary deferred by an employee as defined in subdivision one of this

section under a flexible benefits program established pursuant to this

section shall be considered part of annual compensation for the purpose

of computing retirement benefits.

7. Notwithstanding any other law, rule, or regulation to the contrary,

where, and to the extent that, an agreement between the state and an

employee organization entered into pursuant to article fourteen of the

civil service law on behalf of employees in a collective negotiating

unit established pursuant to article fourteen of the civil service law

provides for flexible benefits provided by this section, such flexible

benefit program shall be established in accordance with such agreement.