Bill S4112-2013

Relates to determination of state contribution for certain benefits provided pursuant to collective bargaining agreements

Relates to determination of state contribution for certain benefits provided pursuant to collective bargaining agreements.

Details

Actions

  • Mar 3, 2014: REPORTED AND COMMITTED TO FINANCE
  • Jan 8, 2014: REFERRED TO CIVIL SERVICE AND PENSIONS
  • Apr 22, 2013: REPORTED AND COMMITTED TO FINANCE
  • Mar 8, 2013: REFERRED TO CIVIL SERVICE AND PENSIONS

Votes

VOTE: COMMITTEE VOTE: - Civil Service and Pensions - Apr 22, 2013
Ayes (9): Golden, Fuschillo, Lanza, Martins, Ritchie, Savino, Addabbo, Dilan, Perkins
Ayes W/R (1): Sanders
Excused (1): Hannon
VOTE: COMMITTEE VOTE: - Civil Service and Pensions - Mar 3, 2014
Ayes (9): Golden, Lanza, Martins, Ritchie, Savino, Sanders, Addabbo, Dilan, Perkins
Ayes W/R (1): Hannon

Memo

BILL NUMBER:S4112

TITLE OF BILL: An act to amend the civil service law and the legislative law, in relation to certain benefits provided pursuant to collective bargaining agreements

PURPOSE: To establish the State's contribution rate toward the premium charges for current State employees and retired State employees enrolled in a health insurance program under NYSHIP and to provide that any bill introduced to implement the terms of a collective bargaining agreement shall be limited to provisions necessary for the implementation of the collective bargaining agreement.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends Civil Service Law section 167 to establish the State's contribution rates toward health insurance premiums under the New York State Health Insurance Program (NYSHIP).

Section 167(1)(a) is amended to establish the State's contribution rate toward the Empire Plan's premium or subscription charges for retired State employees who retired before October 1, 2011 and are enrolled in the Empire Plan. Civil Service Law section 167(1)(b) is similarly amended to establish the State's contribution rate toward the optional health plan's premium or subscription charges for retired State employees who retired before October 1, 2011 and are enrolled in any such plan.

A new paragraph (c) is added to Civil Service Law section 167(1) to codify the current regulations promulgated by the President of the Civil Service Commission regarding the State's contribution rates for NYSHIP premiums for active State employees beginning on October 1, 2011 and for retirees who retired on and after October 1, 2011(4 NYCRR 73.3).

A new paragraph (d) is added to Civil Service Law section 167(1) to provide that for State employees who retire on and after January 1, 2012, the State's contribution rate for NYSHIP shall be the same as the rate on the employee's retirement date. For state employees entitled to a vested retirement allowance that separate from service on and after January 1, 2012, maintain continuous enrollment in NYSHIP, and subsequently retire, the State's contribution rate shall be the same as the rate on the date that such retiree separated from service.

Section 2 of the bill amends Civil Service Law section 167(8) to provide that the President of the Civil Service Commission may extend the State's NYSHIP contribution rates to current State employees. Currently, these rates may be extended to current State employees and retirees.

Section 3 of the bill amends the Legislative law by adding a new section 49 to provide that legislation that is introduced for the purpose of implementing a collective bargaining agreement entered into

pursuant to the Taylor Law shall be limited to provisions necessary to implement the collective bargaining agreement.

Section 4 of the bill provides that this act shall take effect immediately provided that sections one and two of this act shall be deemed to have been in effect on October 1, 2011. All premiums paid by retired state employees in excess of those consistent with the provisions of this act shall be returned to such retired state employees, or to their estate, as the case may be, by the comptroller as soon as practicable, but in no event later than sixty days after such effective date.

EXISTING LAW: Currently, the State's contribution rates for NYSHIP are established by either a collective bargaining agreement entered into pursuant to the Taylor Law or by regulation promulgated by the President of the Civil Service Commission. Such regulation may extend the collectively bargained contribution rate to current State employees who are not represented by a collective bargaining agreement and retirees.

JUSTIFICATION: When Civil Service Law section 167 was enacted, the State's health insurance contribution rate for current State employees and retirees was the same and set forth by section 167. When the State's contribution rate changed in 1983 from 100% to 90%, section 167 was amended to establish the new rates for current State employees and former State employees who retired on or after January 1, 1983; there was no contribution rate change for former State employees who retired before January 1, 1983. These rates did not change until 2011 when the Legislature approved the collective bargaining agreement between the State and the Civil Service Employees Association (CSEA).

In addition to enacting provisions of the collective bargaining agreement between the State and CSEA, Chapter 491 of the Laws of 2011 also amended Civil Service Law section 167(8). This amendment made significant changes to the health insurance contribution rates and granted the President of the Civil Service Commission power to extend the collectively negotiated contribution rates by regulation, with the consent of the Director of the Budget, for State employees not covered by a collective bargaining agreement and retirees. This power, which notwithstands any inconsistent provision of law, removed the ability of the Legislature to set the contribution rates for State employees not covered by a collective bargaining agreement and retirees and allowed such rates to be established administratively. Unfortunately, the legislative history for Chapter 491 is devoid of any legislative intent regarding the amendments to subdivision 8. Pursuant to the rules of statutory construction, it is assumed that the Legislature intended to afford the President the right to establish Contribution rates for State employees not covered by a collective bargaining agreement and retirees. See, Matter of Retired Public Employees Association, Inc. v. Cuomo, _____ Misc. 3rd _____ (December 17, 2012).

Pursuant to the power granted to the President of the Civil Service Commission, the President established the contribution rates by regulation (4 NYCRR 73.3). By regulation, the President applied the collectively negotiated to State employees and retirees who retired on or after January 1, 1983. The 1983 amendments to the contribution

rates evidence the intent of the Legislature to hold harmless retirees who retired before the effective date of the contribution rate changes. The President did not hold retirees harmless.

The Taylor Law affords employee organizations the right to collectively bargain on behalf of their members. The overwhelming majority of the retirees who retired after January 1, 1983 and before January 1, 2011 were not active State employees during the collective bargaining process and, thus, the State and the employee organizations were without power to bargain with respect to such retirees. See, Chemical Workers v. Pittsburgh Glass, 404 U.S. 157 (1971) and Della Rocco v. Schenectady, 252 A.D.2d 82 (3d Dept. 1998). When the Legislature afforded the President the power to establish contribution rates, the Legislature may have believed that the President would follow the existing statutory scheme and hold retirees harmless.

This bill clarifies the Legislature's intent regarding the State's contribution to the NYSHIP premiums for retired State employees and ensures that such intent cannot be altered by regulation.

LEGISLATIVE HISTORY: New bill

FISCAL IMPLICATIONS: TO be determined

EFFECTIVE DATE: This act shall take effect immediately provided that sections one and two of this act shall be deemed to have been in effect on October 1, 2011. All premiums paid by retired state employees in excess of those consistent with the provisions of this act shall be returned to such retired state employees, or to their estate, as the case may be, by the comptroller as soon as practicable, but in no event later than sixty days after such effective date.


Text

STATE OF NEW YORK ________________________________________________________________________ 4112 2013-2014 Regular Sessions IN SENATE March 8, 2013 ___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions AN ACT to amend the civil service law and the legislative law, in relation to certain benefits provided pursuant to collective bargain- ing agreements THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 1 of section 167 of the civil service law, as amended by chapter 582 of the laws of 1988, paragraph (a) as amended by section 7 of part T of chapter 56 of the laws of 2010 and paragraph (b) as amended by chapter 317 of the laws of 1995, is amended to read as follows: 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 eight- y-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 AND PRIOR TO OCTOBER FIRST, TWO THOUSAND ELEVEN 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 bene- fit 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 institu- tion 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, notwith- standing 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 employ- ees retiring on or after January first, nineteen hundred eighty-three AND PRIOR TO OCTOBER FIRST, TWO THOUSAND ELEVEN, 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 premi- um 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. (C) EFFECTIVE OCTOBER FIRST, TWO THOUSAND ELEVEN, 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, THE STATE'S CONTRIBUTION FOR COST OF PREMIUM OR SUBSCRIPTION CHARGES FOR THE COVER- AGE OF STATE EMPLOYEES AND RETIRED STATE EMPLOYEES ENROLLED IN THE STATEWIDE AND THE SUPPLEMENTARY HEALTH BENEFIT PLANS ESTABLISHED PURSU- ANT TO THIS ARTICLE OR AN OPTIONAL BENEFIT PLAN SHALL BE: (I) FOR STATE EMPLOYEES EMPLOYED IN A TITLE ALLOCATED OR EQUATED TO SALARY GRADE NINE OR BELOW, THE STATE SHALL CONTRIBUTE EIGHTY-EIGHT PERCENT OF THE COST OR PREMIUM SUBSCRIPTION CHARGES FOR SUCH EMPLOYEES ENROLLED IN THE STATEWIDE AND THE SUPPLEMENTARY HEALTH BENEFIT PLANS ESTABLISHED PURSUANT TO THIS ARTICLE FOR AN OPTIONAL BENEFIT PLAN AND SEVENTY-THREE PERCENT OF THE COST OR PREMIUM SUBSCRIPTION CHARGES FOR DEPENDENTS OF SUCH STATE EMPLOYEES ENROLLED IN THE STATEWIDE AND THE SUPPLEMENTARY HEALTH BENEFIT PLANS ESTABLISHED PURSUANT TO THIS ARTICLE OR AN OPTIONAL BENEFIT PLAN; PROVIDED, HOWEVER, THAT THE CONTRIBUTION
RATES FOR THE HOSPITALIZATION, MEDICAL, AND MENTAL HEALTH AND SUBSTANCE ABUSE COMPONENTS OF EACH OPTIONAL BENEFIT PLAN SHALL NOT EXCEED ONE HUNDRED PERCENT OF THE DOLLAR AMOUNT OF THE STATE'S CONTRIBUTION TOWARD THE HOSPITALIZATION, MEDICAL, AND MENTAL HEALTH AND SUBSTANCE ABUSE COMPONENTS OF INDIVIDUAL AND DEPENDENT COVERAGE, RESPECTIVELY, IN THE EMPIRE PLAN. (II) FOR STATE EMPLOYEES EMPLOYED IN A TITLE ALLOCATED OR EQUATED TO SALARY GRADE TEN OR ABOVE, THE STATE SHALL CONTRIBUTE EIGHTY-FOUR PERCENT OF THE COST OR PREMIUM SUBSCRIPTION CHARGES FOR SUCH EMPLOYEES ENROLLED IN THE STATEWIDE AND THE SUPPLEMENTARY HEALTH BENEFIT PLANS ESTABLISHED PURSUANT TO THIS ARTICLE OR AN OPTIONAL BENEFIT PLAN AND SIXTY-NINE PERCENT OF THE COST OR PREMIUM SUBSCRIPTION CHARGES FOR DEPENDENTS OF SUCH STATE EMPLOYEES ENROLLED IN THE STATEWIDE AND THE SUPPLEMENTARY HEALTH BENEFIT PLANS ESTABLISHED PURSUANT TO THIS ARTICLE OR AN OPTIONAL BENEFIT PLAN; PROVIDED, HOWEVER, THAT THE CONTRIBUTION RATES FOR THE HOSPITALIZATION, MEDICAL, AND MENTAL HEALTH AND SUBSTANCE ABUSE COMPONENTS OF EACH OPTIONAL BENEFIT PLAN SHALL NOT EXCEED ONE HUNDRED PERCENT OF THE DOLLAR AMOUNT OF THE STATE'S CONTRIBUTION TOWARD THE HOSPITALIZATION, MEDICAL, AND MENTAL HEALTH AND SUBSTANCE ABUSE COMPONENTS OF INDIVIDUAL AND DEPENDENT COVERAGE, RESPECTIVELY, IN THE EMPIRE PLAN. (III) FOR RETIRED STATE EMPLOYEES RETIRING ON OR AFTER OCTOBER FIRST, TWO THOUSAND ELEVEN AND BEFORE JANUARY FIRST, TWO THOUSAND TWELVE, THE STATE SHALL CONTRIBUTE EIGHTY-EIGHT PERCENT OF THE COST OR PREMIUM SUBSCRIPTION CHARGES FOR SUCH EMPLOYEES ENROLLED IN THE STATEWIDE AND THE SUPPLEMENTARY HEALTH BENEFIT PLANS ESTABLISHED PURSUANT TO THIS ARTICLE OR AN OPTIONAL BENEFIT PLAN AND SEVENTY-THREE PERCENT OF THE COST OR PREMIUM SUBSCRIPTION CHARGES FOR DEPENDENTS OF SUCH STATE EMPLOYEES ENROLLED IN THE STATEWIDE AND THE SUPPLEMENTARY HEALTH BENEFIT PLANS ESTABLISHED PURSUANT TO THIS ARTICLE OR AN OPTIONAL BENEFIT PLAN; PROVIDED, HOWEVER, THAT THE CONTRIBUTION RATES FOR THE HOSPITALIZATION, MEDICAL, AND MENTAL HEALTH AND SUBSTANCE ABUSE COMPONENTS OF EACH OPTIONAL BENEFIT PLAN SHALL NOT EXCEED ONE HUNDRED PERCENT OF THE DOLLAR AMOUNT OF THE STATE'S CONTRIBUTION TOWARD THE HOSPITALIZATION, MEDICAL, AND MENTAL HEALTH AND SUBSTANCE ABUSE COMPONENTS OF INDIVIDUAL AND DEPENDENT COVERAGE, RESPECTIVELY, IN THE EMPIRE PLAN. (IV) FOR RETIRED STATE EMPLOYEES RETIRING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE FROM A TITLE ALLOCATED OR EQUATED TO SALARY GRADE NINE OR BELOW, THE STATE SHALL CONTRIBUTE EIGHTY-EIGHT PERCENT OF THE COST OR PREMIUM SUBSCRIPTION CHARGES FOR SUCH EMPLOYEES ENROLLED IN THE STATEWIDE AND THE SUPPLEMENTARY HEALTH BENEFIT PLANS ESTABLISHED PURSU- ANT TO THIS ARTICLE OR AN OPTIONAL BENEFIT PLAN AND SEVENTY-THREE PERCENT OF THE COST OR PREMIUM SUBSCRIPTION CHARGES FOR DEPENDENTS OF SUCH STATE EMPLOYEES ENROLLED IN THE STATEWIDE AND THE SUPPLEMENTARY HEALTH BENEFIT PLANS ESTABLISHED PURSUANT TO THIS ARTICLE OR AN OPTIONAL BENEFIT PLAN; PROVIDED, HOWEVER, THAT THE CONTRIBUTION RATES FOR THE HOSPITALIZATION, MEDICAL, AND MENTAL HEALTH AND SUBSTANCE ABUSE COMPO- NENTS OF EACH OPTIONAL BENEFIT PLAN SHALL NOT EXCEED ONE HUNDRED PERCENT OF THE DOLLAR AMOUNT OF THE STATE'S CONTRIBUTION TOWARD THE HOSPITALIZA- TION, MEDICAL, AND MENTAL HEALTH AND SUBSTANCE ABUSE COMPONENTS OF INDI- VIDUAL AND DEPENDENT COVERAGE, RESPECTIVELY, IN THE EMPIRE PLAN. (V) FOR RETIRED STATE EMPLOYEES RETIRING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE FROM A TITLE ALLOCATED OR EQUATED TO SALARY GRADE TEN OR ABOVE, THE STATE SHALL CONTRIBUTE EIGHTY-FOUR PERCENT OF THE COST OR PREMIUM SUBSCRIPTION CHARGES FOR SUCH EMPLOYEES ENROLLED IN THE STATEWIDE AND THE SUPPLEMENTARY HEALTH BENEFIT PLANS ESTABLISHED PURSU-
ANT TO THIS ARTICLE OR AN OPTIONAL BENEFIT PLAN AND SIXTY-NINE PERCENT OF THE COST OR PREMIUM SUBSCRIPTION CHARGES FOR DEPENDENTS OF SUCH STATE EMPLOYEES ENROLLED IN THE STATEWIDE AND THE SUPPLEMENTARY HEALTH BENEFIT PLANS ESTABLISHED PURSUANT TO THIS ARTICLE OR AN OPTIONAL BENEFIT PLAN; PROVIDED, HOWEVER, THAT THE CONTRIBUTION RATES FOR THE HOSPITALIZATION, MEDICAL, AND MENTAL HEALTH AND SUBSTANCE ABUSE COMPONENTS OF EACH OPTIONAL BENEFIT PLAN SHALL NOT EXCEED ONE HUNDRED PERCENT OF THE DOLLAR AMOUNT OF THE STATE'S CONTRIBUTION TOWARD THE HOSPITALIZATION, MEDICAL, AND MENTAL HEALTH AND SUBSTANCE ABUSE COMPONENTS OF INDIVIDUAL AND DEPENDENT COVERAGE, RESPECTIVELY, IN THE EMPIRE PLAN. (D) NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION, FOR THE PREMIUM OR SUBSCRIPTION CHARGES FOR THE COVERAGE OF RETIRED STATE EMPLOYEES RETIRING ON AND AFTER OCTOBER FIRST, TWO THOUSAND ELEVEN ENROLLED IN THE STATEWIDE AND THE SUPPLEMENTARY HEALTH BENEFIT PLANS OR AN OPTIONAL BENEFIT PLAN ESTABLISHED PURSUANT TO THIS ARTICLE THE STATE'S CONTRIB- UTION RATE FOR INDIVIDUAL AND DEPENDENT COVERAGE SHALL EQUAL THE CONTRIBUTION RATE IN EFFECT ON THE DATE THAT THE STATE EMPLOYEE RETIRED; IF, HOWEVER, SUCH RETIRED STATE EMPLOYEE'S SERVICE TERMINATED PRIOR TO RETIREMENT AND SUCH RETIRED STATE EMPLOYEE WAS ENTITLED TO A VESTED RETIREMENT ALLOWANCE PURSUANT TO THE RETIREMENT AND SOCIAL SECURITY LAW ON THE DATE HIS OR HER SERVICE TERMINATED AND SUCH RETIRED STATE EMPLOY- EE MAINTAINED HIS OR HER ENROLLMENT IN THE STATEWIDE AND THE SUPPLEMEN- TARY HEALTH BENEFIT PLANS OR AN OPTIONAL BENEFIT PLAN ESTABLISHED PURSU- ANT TO THIS ARTICLE THE STATE'S CONTRIBUTION RATE FOR INDIVIDUAL AND DEPENDENT COVERAGE SHALL EQUAL THE CONTRIBUTION RATE IN EFFECT ON THE DATE THAT SUCH RETIRED STATE EMPLOYEE'S SERVICE TERMINATED; PROVIDED, HOWEVER, THAT THE CONTRIBUTION RATES FOR THE HOSPITALIZATION, MEDICAL, AND MENTAL HEALTH AND SUBSTANCE ABUSE COMPONENTS OF EACH OPTIONAL BENE- FIT PLAN SHALL NOT EXCEED ONE HUNDRED PERCENT OF THE DOLLAR AMOUNT OF THE STATE'S CONTRIBUTION TOWARD THE HOSPITALIZATION, MEDICAL, AND MENTAL HEALTH AND SUBSTANCE ABUSE COMPONENTS OF INDIVIDUAL AND DEPENDENT COVER- AGE, RESPECTIVELY, IN THE EMPIRE PLAN. S 2. Subdivision 8 of section 167 of the civil service law, as amended by section 2 of part A of chapter 491 of the laws of 2011, is amended to read as follows: 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 budg- et, may extend the modified state cost of premium or subscription charg- es for STATE employees [or retirees] not subject to an agreement refer- enced above and shall promulgate the necessary rules or regulations to implement this provision. S 3. The legislative law is amended by adding a new section 49 to read as follows: S 49. LEGISLATION IMPLEMENTING COLLECTIVE BARGAINING AGREEMENTS. LEGISLATION WHICH ENACTS OR AMENDS ANY PROVISION OF LAW FOR THE PURPOSE OF IMPLEMENTING AN AGREEMENT BETWEEN THE STATE AND AN EMPLOYEE ORGANIZA- TION ENTERED INTO PURSUANT TO ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW SHALL BE LIMITED TO THE PROVISIONS NECESSARY TO IMPLEMENT SUCH AGREE- MENT. S 4. This act shall take effect immediately provided that sections one and two of this act shall be deemed to have been in effect on October 1, 2011. All premiums paid by retired state employees in excess of those
consistent with the provisions of this act shall be returned to such retired state employees, or to their estate, as the case may be, by the comptroller as soon as practicable, but in no event later than sixty days after such effective date.

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