2023 New York Laws › GMU - General Municipal › Article 2 - General Municipal Finances › 23 - Flexible Benefits Program.

§  23. 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. "Commissioner of labor relations" shall mean the officer of a  city
  having  a  population  of  one  million  or  more  responsible  for  the
  administration of health benefits on behalf of such city and any of  the
  entities   set  forth  in  subparagraph  two  of  paragraph  c  of  this
  subdivision.
c. "Employer" shall mean (1) a city having a population of one million
  or more, or (2)  any  one  of  the  following  entities:  (i)  the  city
  university  of  New  York,  (ii)  the New York city health and hospitals
  corporation, (iii) the New York city transit  authority,  (iv)  the  New
  York  city  housing  authority,  (v) the New York city off-track betting
  corporation, (vi) the New York city  rehabilitation  mortgage  insurance
  corporation,  (vii)  the New York city board of education, or (viii) the
  New York city school construction authority.
d. "Employee" shall mean any officer or employee of a  city  having  a
  population  of one million or more, or any officer or employee of any of
  the entities set forth in  subparagraph  two  of  paragraph  c  of  this
  subdivision  who are 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.
e.  "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  the
  employee  benefits  program  administered  by  the commissioner of labor
  relations.
f. "Program administrator" shall mean that agent, as determined by the
  commissioner of labor relations, responsible  for  the  maintenance  and
  management of the flexible benefits program as authorized in subdivision
  two of this section.
2.  Any city having a population of one million or more, acting by the
  commissioner of labor relations, subject to the approval of the director
  of the budget of such city, is authorized to establish and  implement  a
  flexible  benefits  program  for  its employees and the employees of any
  employer as defined in subparagraph two of paragraph  c  of  subdivision
  one  of this section, consistent with applicable provisions of the code.
  The  commissioner  of  labor  relations  is  authorized  to  enter  into
  agreements with persons or entities, on behalf of such city or employer,
  to  act  as program administrators of the flexible benefits program. The
  commissioner  of  labor  relations  shall  promulgate  rules   for   the
  appropriate administration of such flexible benefits program.
3.  At  the  request  of  an employee, the chief fiscal officer of the
  employer, or the officer responsible  for  the  administration  of  such
  employer'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 employer 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 employer 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
  employer  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.