Prohibits the diminution of health insurance benefits of public employee retirees

2 Co-sponsors

• Jesse Hamilton
• Kevin S. Parker

Title of bill

An act in relation to affecting the health insurance benefits and contributions of certain retired public employees

Purpose or general idea of bill

This bill prohibits the diminution of health insurance benefits of public employee retirees.

Summary of specific provisions

The bill enacts an unconsolidated law which, for the period May 1, 2008 until May 15, 2017, prohibits a public employer from diminishing the health insurance benefits provided to retirees and their dependents or reducing the contributions that the public employer makes toward these benefits, unless also making an equivalent change for active employees.

Existing law

Chapter 729 of the Laws of 1994, as last amended by Chapter 22 of the Laws of 2007, provides this protection for retirees of school districts.

Justification

Health insurance coverage is a critical issue for retirees, who often face tremendous health care costs at a time of severely diminished income. Continuation of health insurance after retirement is provided for some retirees by statute and for some others by union contract This legislation seeks to protect health insurance coverage for all public sector retirees. It provides that a public employer may not unilaterally reduce benefit coverage or employer contributions unless making a parallel reduction for active employees. This does not prevent public employers from reducing benefits as a cost-cutting measure, but does, in effect; require that any such reductions be the result of union negotiations. Absent this, the Taylor Law prohibits public employee unions from negotiating on behalf of retirees. This bill also specifically recognizes union contracts which may, now or in the future, provide stronger benefits for retirees covered by the contracts. A similar law has protected school district retirees since 1994.

Prior legislative history

2015/16: A2336 (Crouch)

Fiscal implications

None. This is not a fiscal mandate, as the State remains free to reduce health insurance costs either through amendments to the Civil Service law or through public employee negotiations.

Effective date

This act shall take effect immediately and shall be deemed to have been in full force and effect on and after May 1, 2008.