Bill S7438-2013

Relates to deductions from benefits of certain retired members

Relates to deductions from benefits of certain retired members.

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  • May 15, 2014: REFERRED TO HIGHER EDUCATION

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BILL NUMBER:S7438

TITLE OF BILL: An act to amend the education law, in relation to deductions of benefits of certain retired members

PURPOSE:To allow retired higher education professionals to make voluntary automatic contributions to their employee organizations, including but not limited to their political committees.

SUMMARY OF PROVISIONS:

Section 1 amends article 8-B of the education law by adding a new section 396-A to allow retired higher education professionals who elected to become members of the State University of New York (SUNY) optional retirement plan (ORP) to make voluntary automatic contributions to their employee organizations.

Section 2 amends article 125-A of the education law by adding a new section 6257 to allow retired higher education professionals who elected to become members of the City University of New York (CUNY) optional retirement plan (ORP) to make voluntary automatic contributions to their employee organizations.

JUSTIFICATION: In 1993, state education law was amended to allow retired teachers the ability to make automatic payroll deductions to their employee organizations for certain supplemental benefits. Ten years later, in 2003, state education law was again amended to allow retired teachers the ability to make voluntary automatic contributions to the political action committee of their employee organization. These changes provided retired teachers with payroll deduction options that were, and remain, in parity with active classroom teachers. For both in-service and retired members, these automatic payment options are voluntarily authorized, save time and expense, and are revocable at any time.

However, up until now retired university professionals who chose to join the SUNY or CUNY ORP system have not been allowed to make automatic contributions from their retirement accounts.

This legislation will expand existing provisions of law currently afforded to in-service and retired teachers, by allowing retired members of the ORP to make automatic contributions to their employee organization for certain supplemental benefits and/or voluntary contributions to their employee organization's political committee.

Retired members will not be required to participate and can revoke the automatic contribution authorization at any time.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None. Any administrative costs associated with this transaction will be paid by the participating employee organization; similar to the existing statute - Ed. Law § 536, Sub. 2.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 7438 IN SENATE May 15, 2014 ___________
Introduced by Sen. SAVINO -- read twice and ordered printed, and when printed to be committed to the Committee on Higher Education AN ACT to amend the education law, in relation to deductions of benefits of certain retired members THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The education law is amended by adding a new section 396-a to read as follows: S 396-A. DEDUCTIONS FROM BENEFITS OF CERTAIN RETIRED MEMBERS. 1. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AN ELECTING EMPLOYEE WHO IS RETIRED FROM THE OPTIONAL RETIREMENT SYSTEM SHALL HAVE THE RIGHT, AT ANY TIME AFTER SUCH ELECTING EMPLOYEE'S RETIREMENT, TO EXECUTE AND FILE A DEDUCTION AUTHORIZATION CARD WITH THE DESIGNATED INSURER OR INSURERS UPON AUDIT AND WARRANT OF THE COMPTROLLER FOR EMPLOYEES OF THE STATE UNIVERSITY AND BY THE APPROPRIATE FISCAL OFFICER FOR EMPLOYEES OF AN ELECTING EMPLOYER AUTHORIZING THE DEDUCTION FROM SUCH ELECTING EMPLOY- EE'S RETIREMENT ALLOWANCE OF MEMBERSHIP DUES AND SUCH ELECTING EMPLOY- EE'S SHARE OF THE COST FOR EMPLOYEE ORGANIZATION-SPONSORED BENEFIT PLANS AND THE PAYMENT THEREOF TO A RETIREE ORGANIZATION OF WHICH THE ELECTING EMPLOYEE IS THEN A MEMBER AND WHICH IS THEN AFFILIATED WITH EITHER AN EMPLOYEE ORGANIZATION CERTIFIED OR RECOGNIZED AS THE COLLECTIVE BARGAIN- ING REPRESENTATIVE OF ALL EMPLOYEES IN THE NEGOTIATING UNIT OF WHICH THE ELECTING EMPLOYEE WAS A PART PRIOR TO HIS OR HER RETIREMENT OR WITH AN EMPLOYEE ORGANIZATION WITH WHICH SUCH EMPLOYEE ORGANIZATION IS THEN AFFILIATED. THE DESIGNATED INSURER OR INSURERS UPON AUDIT AND WARRANT OF THE COMPTROLLER FOR EMPLOYEES OF THE STATE UNIVERSITY AND BY THE APPRO- PRIATE FISCAL OFFICER FOR EMPLOYEES OF AN ELECTING EMPLOYER SHALL THERE- AFTER DEDUCT FROM THE RETIREMENT ALLOWANCE OF SUCH ELECTING EMPLOYEE THE AMOUNT OF MEMBERSHIP DUES AND SUCH AMOUNTS REQUIRED TO BE PAID BY SUCH ELECTING EMPLOYEE FOR SUCH AUTHORIZED EMPLOYEE ORGANIZATION-SPONSORED BENEFIT PLANS, AND SHALL TRANSMIT THE SUM SO DEDUCTED TO SAID RETIREE ORGANIZATION. SUCH AUTHORIZATION SHALL CONTINUE IN EFFECT UNTIL REVOKED IN WRITING BY SUCH ELECTING EMPLOYEE. FOR PURPOSES OF THIS SECTION, THE TERM "EMPLOYEE ORGANIZATION-SPONSORED BENEFIT PLANS" SHALL INCLUDE ANY
AND ALL INSURANCE PLANS AND/OR OTHER BENEFIT PLANS SPONSORED BY SUCH RETIREE ORGANIZATION WHETHER PROVIDED BY (A) A NOT-FOR-PROFIT CORPO- RATION LICENSED UNDER ARTICLE FORTY-THREE OF THE INSURANCE LAW; (B) ANY INSURANCE COMPANY AUTHORIZED TO DO BUSINESS IN THIS STATE; (C) A HEALTH MAINTENANCE ORGANIZATION ISSUED A CERTIFICATE OF AUTHORITY PURSUANT TO ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW; OR (D) A SELF-INSURANCE ARRANGEMENT, WELFARE FUND OR BENEFIT FUND. 2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A RETIRED ELECTED EMPLOYEE SHALL HAVE THE RIGHT, AT ANY TIME AFTER HIS OR HER RETIREMENT, TO EXECUTE AND FILE A DEDUCTION AUTHORIZATION CARD WITH THE DESIGNATED INSURER OR INSURERS UPON AUDIT AND WARRANT OF THE COMPTROLLER FOR EMPLOYEES OF THE STATE UNIVERSITY AND BY THE APPROPRIATE FISCAL OFFICER FOR EMPLOYEES OF AN ELECTING EMPLOYER AUTHORIZING THE PAYMENT OF VOLUN- TARY CONTRIBUTIONS TO THE POLITICAL COMMITTEE, AS DEFINED IN SUBDIVISION ONE OF SECTION 14-100 OF THE ELECTION LAW, OF SUCH ELECTING EMPLOYEE'S EMPLOYEE ORGANIZATION, PROVIDED SUCH ORGANIZATION IS CERTIFIED OR RECOG- NIZED PURSUANT TO ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW AS THE REPRESENTATIVE OF ALL EMPLOYEES IN THE NEGOTIATING UNIT IN WHICH SUCH RETIRED ELECTING EMPLOYEE WAS THEN EMPLOYED. SUCH AUTHORIZATION SHALL CONTINUE IN EFFECT UNTIL REVOKED IN WRITING BY SUCH ELECTING EMPLOYEE. THE DESIGNATED INSURER OR INSURERS UPON AUDIT AND WARRANT OF THE COMP- TROLLER FOR EMPLOYEES OF THE STATE UNIVERSITY AND BY THE APPROPRIATE FISCAL OFFICER FOR EMPLOYEES OF AN ELECTING EMPLOYER SHALL DETERMINE THE COST OF ADMINISTERING DEDUCTIONS FOR VOLUNTARY CONTRIBUTIONS TO THE POLITICAL COMMITTEE AND THE COST INCURRED FOR ADMINISTERING SUCH CONTRIBUTIONS SHALL BE PAID FROM THE FUNDS OF THE POLITICAL COMMITTEE. S 2. The education law is amended by adding a new section 6257 to read as follows: S 6257. DEDUCTIONS FROM BENEFITS OF CERTAIN RETIRED MEMBERS. 1. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A MEMBER WHO IS RETIRED FROM THE BOARD OF HIGHER EDUCATION OPTIONAL RETIREMENT PROGRAM SHALL HAVE THE RIGHT, AT ANY TIME AFTER SUCH MEMBER'S RETIREMENT, TO EXECUTE AND FILE A DEDUCTION AUTHORIZATION CARD WITH THE DESIGNATED INSURER OR INSURERS UPON AUDIT AND WARRANT OF THE COMPTROLLER AUTHORIZING THE DEDUCTION FROM SUCH MEMBER'S RETIREMENT ALLOWANCE OF MEMBERSHIP DUES AND SUCH MEMBER'S SHARE OF THE COST FOR EMPLOYEE ORGANIZATION-SPONSORED BENEFIT PLANS AND THE PAYMENT THEREOF TO A RETIREE ORGANIZATION OF WHICH THE MEMBER IS THEN A MEMBER AND WHICH IS THEN AFFILIATED WITH EITHER AN EMPLOYEE ORGANIZATION CERTIFIED OR RECOGNIZED AS THE COLLECTIVE BARGAINING REPRE- SENTATIVE OF ALL EMPLOYEES IN THE NEGOTIATING UNIT OF WHICH THE MEMBER WAS A PART PRIOR TO HIS OR HER RETIREMENT OR WITH AN EMPLOYEE ORGANIZA- TION WITH WHICH SUCH EMPLOYEE ORGANIZATION IS THEN AFFILIATED. THE DESIGNATED INSURER OR INSURERS UPON AUDIT AND WARRANT OF THE COMPTROLLER SHALL THEREAFTER DEDUCT FROM THE RETIREMENT ALLOWANCE OF SUCH MEMBER THE AMOUNT OF MEMBERSHIP DUES AND SUCH AMOUNTS REQUIRED TO BE PAID BY SUCH MEMBER FOR SUCH AUTHORIZED EMPLOYEE ORGANIZATION-SPONSORED BENEFIT PLANS, AND SHALL TRANSMIT THE SUM SO DEDUCTED TO SAID RETIREE ORGANIZA- TION. SUCH AUTHORIZATION SHALL CONTINUE IN EFFECT UNTIL REVOKED IN WRIT- ING BY SUCH MEMBER. FOR PURPOSES OF THIS SECTION, THE TERM "EMPLOYEE ORGANIZATION-SPONSORED BENEFIT PLANS" SHALL INCLUDE ANY AND ALL INSUR- ANCE PLANS AND/OR OTHER BENEFIT PLANS SPONSORED BY SUCH RETIREE ORGAN- IZATION WHETHER PROVIDED BY (A) A NOT-FOR-PROFIT CORPORATION LICENSED UNDER ARTICLE FORTY-THREE OF THE INSURANCE LAW; (B) ANY INSURANCE COMPA- NY AUTHORIZED TO DO BUSINESS IN THIS STATE; (C) A HEALTH MAINTENANCE ORGANIZATION ISSUED A CERTIFICATE OF AUTHORITY PURSUANT TO ARTICLE
FORTY-FOUR OF THE PUBLIC HEALTH LAW; OR (D) A SELF-INSURANCE ARRANGE- MENT, WELFARE FUND OR BENEFIT FUND. 2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A RETIRED MEMBER SHALL HAVE THE RIGHT, AT ANY TIME AFTER HIS OR HER RETIREMENT, TO EXECUTE AND FILE A DEDUCTION AUTHORIZATION CARD WITH THE DESIGNATED INSURER OR INSURERS UPON AUDIT AND WARRANT OF THE COMPTROLLER AUTHORIZING THE PAYMENT OF VOLUNTARY CONTRIBUTIONS TO THE POLITICAL COMMITTEE, AS DEFINED IN SUBDIVISION ONE OF SECTION 14-100 OF THE ELECTION LAW, OF SUCH MEMBER'S EMPLOYEE ORGANIZATION, PROVIDED SUCH ORGANIZATION IS CERTIFIED OR RECOGNIZED PURSUANT TO ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW AS THE REPRESENTATIVE OF ALL EMPLOYEES IN THE NEGOTIATING UNIT IN WHICH SUCH RETIRED MEMBER WAS THEN EMPLOYED. SUCH AUTHORIZATION SHALL CONTINUE IN EFFECT UNTIL REVOKED IN WRITING BY SUCH MEMBER. THE DESIGNATED INSURER OR INSURERS UPON AUDIT AND WARRANT OF THE COMPTROLLER SHALL DETERMINE THE COST OF ADMINISTERING DEDUCTIONS FOR VOLUNTARY CONTRIBUTIONS TO THE POLITICAL COMMITTEE AND THE COST INCURRED FOR ADMINISTERING SUCH CONTRIBUTIONS SHALL BE PAID FROM THE FUNDS OF THE POLITICAL COMMITTEE. S 3. This act shall take effect immediately.

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