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

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.