Provides that an employer shall not diminish the benefits granted a participant, or for which such participant is eligible, under an employer welfare benefit plan as such plan was in existence at the time of the retirement of such participant; defines terms.

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S1410-2011 Actions

• Jan 4, 2012: REFERRED TO AGING
• Jan 7, 2011: REFERRED TO AGING

S1410-2011 Memo

BILL NUMBER:S1410

TITLE OF BILL:
An act
to amend the elder law, in relation to prohibiting a diminution of
certain employee benefits

SUMMARY OF PROVISIONS:
This bill adds a new Article 3 to the Elder
Law to prohibit the diminution of the health care benefits of retired
employees after they have retired, making any such diminution null
and void as against state policy.

JUSTIFICATION:
This measure requires that if an employer has made an agreement
concerning health benefits for an employee, and the employee is
retired and receiving benefits, the employer cannot then later
unilaterally reduce the benefits.

This measure is much needed. Some employers, looking for areas in
which to save money, have begun to reduce the health benefits to
retired workers-the ones not represented at the bargaining table or
employed as current employees.

PRIOR LEGISLATIVE HISTORY:
S.6559 of 2006 - Aging, Rules
S.155 of 2008 - Advanced to Third Reading
S.1571A of 2010 - Aging, Finance

FISCAL IMPLICATIONS:
None to the state.

EFFECTIVE DATE:

90 days after it becomes law.

S1410-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    1410

                         2011-2012 Regular Sessions

                              I N  SENATE

                               January 7, 2011
                                 ___________

  Introduced  by  Sens. GOLDEN, LAVALLE, MAZIARZ -- read twice and ordered
    printed, and when printed to be committed to the Committee on Aging

  AN ACT to amend the elder law, in relation to prohibiting  a  diminution
    of certain employee benefits

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. The elder law is amended by adding a new article 3 to  read
  as follows:


                                  ARTICLE 3
                            EMPLOYEE BENEFIT PLANS

  SECTION 301. PROHIBITION AGAINST DIMINUTION OF BENEFITS.

    S 301. PROHIBITION AGAINST DIMINUTION OF BENEFITS. ANY OTHER PROVISION
  OF  ANY OTHER LAW TO THE CONTRARY NOTWITHSTANDING, AN EMPLOYER SHALL NOT
  DIMINISH THE BENEFITS GRANTED A PARTICIPANT, OR FOR WHICH  SUCH  PARTIC-
  IPANT  IS  ELIGIBLE, UNDER AN EMPLOYEE WELFARE BENEFIT PLAN AS SUCH PLAN
  WAS IN EXISTENCE AT THE TIME OF THE RETIREMENT OF SUCH PARTICIPANT,  AND
  WHICH  APPLIED  TO SUCH PARTICIPANT. ANY REDUCTION IN SUCH PLAN OR BENE-
  FITS TO SUCH PARTICIPANT IS HEREBY DECLARED NULL  AND  VOID  AS  AGAINST
  STATE POLICY. AS USED IN THIS ARTICLE:

    1.  THE  TERMS "EMPLOYEE WELFARE BENEFIT PLAN" AND "WELFARE PLAN" HAVE
  THE SAME MEANING AS SUCH TERMS ARE DEFINED IN SECTION 1002 OF SUBTITLE A
  OF SUBCHAPTER I OF CHAPTER 18 OF USC TITLE 29.
    2. "EMPLOYER" MEANS ANY PERSON ACTING  DIRECTLY  AS  AN  EMPLOYER,  OR
  INDIRECTLY  IN  THE  INTEREST OF AN EMPLOYER, IN RELATION TO AN EMPLOYEE
  BENEFIT PLAN; AND INCLUDES A GROUP OR ASSOCIATION  OF  EMPLOYERS  ACTING
  FOR  AN  EMPLOYER  IN  SUCH CAPACITY. THE TERM EMPLOYER INCLUDES WITHOUT
  RESTRICTION ANY EMPLOYEE ORGANIZATION, AND PUBLIC, PRIVATE, OR  NOT-FOR-
  PROFIT ENTITY OR ENTITIES, INDIVIDUAL OR INDIVIDUALS, INCLUDING ENTITIES

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD04387-01-1

 S. 1410                             2

  OR  INDIVIDUALS  DOING  BUSINESS  AS,  WHICH ARE ENGAGED IN ANY TRADE OR
  OCCUPATION WHICH EMPLOYS EMPLOYEES IN THIS STATE.
    3. "EMPLOYEE" MEANS ANY INDIVIDUAL EMPLOYED BY AN EMPLOYER.
    4.  "PARTICIPANT"  MEANS  ANY  FORMER  EMPLOYEE OF AN EMPLOYER, OR ANY
  FORMER MEMBER OF AN EMPLOYEE ORGANIZATION, WHO IS ELIGIBLE TO RECEIVE  A
  BENEFIT  OF  ANY TYPE FROM AN EMPLOYEE WELFARE BENEFIT PLAN WHICH COVERS
  EMPLOYEES OF SUCH EMPLOYER OR MEMBERS OF  SUCH  ORGANIZATION,  OR  WHOSE
  BENEFICIARIES MAY BE ELIGIBLE TO RECEIVE ANY SUCH BENEFIT.
    5.  "EMPLOYEE  ORGANIZATION" MEANS ANY LABOR UNION OR ANY ORGANIZATION
  OF ANY KIND, OR ANY AGENCY OR EMPLOYEE REPRESENTATION COMMITTEE, ASSOCI-
  ATION, GROUP OR PLAN, IN WHICH EMPLOYEES PARTICIPATE  AND  WHICH  EXISTS
  FOR THE PURPOSE, IN WHOLE OR IN PART, OF DEALING WITH EMPLOYERS CONCERN-
  ING  AN  EMPLOYEE  WELFARE  BENEFIT  PLAN OR OTHER MATTERS INCIDENTAL TO
  EMPLOYMENT RELATIONSHIPS;  OR  ANY  EMPLOYEES'  BENEFICIARY  ASSOCIATION
  ORGANIZED  FOR  THE  PURPOSE IN WHOLE OR IN PART, OF ESTABLISHING SUCH A
  PLAN.
    6. "BENEFICIARY" MEANS A PERSON DESIGNATED BY A PARTICIPANT, OR BY THE
  TERMS OF AN EMPLOYEE BENEFIT PLAN, WHO IS OR MAY BECOME  ENTITLED  TO  A
  BENEFIT THEREUNDER.
    7.  "PERSON"  MEANS  AN INDIVIDUAL, PARTNERSHIP, JOINT VENTURE, CORPO-
  RATION, MUTUAL COMPANY, JOINT-STOCK COMPANY, TRUST,  ESTATE,  UNINCORPO-
  RATED ORGANIZATION, ASSOCIATION, OR EMPLOYEE ORGANIZATION.
    S  2.  This  act shall take effect on the ninetieth day after it shall
  have become a law.