2023 New York Laws › CVS - Civil Service › Article 11 - Health Benefits for State and Retired State Employees › 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.