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S2051Senate2019-2020 SessionSame asA3634

Set State Benefit Contribution Rates

Official title

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

Sponsor Andrew GounardesSD-22Affects Finance
Status
In Senate Committee
Finance
Impact
6/10
Moderate
Passage
0%

Bill progress

Step 2 of 7

In committee · Finance

What's happening

This bill amends the civil service law to clarify and limit the state's health insurance premium contributions for state employees and retirees, and restricts legislation implementing collective bargaining agreements to only necessary provisions.

Why it matters

  1. Caps and clarifies state contributions to health insurance premiums. for both current state employees and retirees, tying the state's share of premium costs to salary grade and retirement date, which will directly affect out-of-pocket healthcare expenses for thousands of public workers and retirees going forward.

  2. Locks in the state's contribution rate for retirees at the level in effect upon their retirement. , meaning future increases in state support for health insurance will not apply to current retirees, potentially exposing them to higher costs as premiums rise over time.

  3. Restricts the scope of future legislation implementing collective bargaining agreements. , ensuring that only provisions strictly necessary to enact the labor agreements can be included—this could limit lawmakers' ability to add unrelated or broader benefits during the bargaining process.

  4. Removes prior flexibility for the state to extend negotiated health premium terms to retirees not directly covered by a labor agreement. , which may result in less favorable or inconsistent health insurance benefits for some retired state workers, particularly those not represented by unions.

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Who cares

Headline styles

Set State Benefit Contribution Rates

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Andrew Gounardes

Senator · Senate District 22

Chair, Civil Service And Pensions

No co-sponsors yet.

History

  1. Reported and committed to finance
  2. Referred to civil service and pensions
  3. Reported and committed to finance
  4. Referred to civil service and pensions

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

A3634Assembly

Set State Benefit Contributions

In Assembly Committee · Ways And Means · Sponsor Peter Abbate

Impact 7 · Significant0% to pass

Full text

4 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

2051

2019-2020 Regular Sessions

IN SENATE

January 22, 2019

Introduced by Sen. GOUNARDES -- 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 bargaining agreements

The People of the State of New York, represented in Senate and Assembly, 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 eighty-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 benefit 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

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD07913-01-9

S. 2051 2

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 institution 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, 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 or where and to the extent the employee health insurance council so directs with respect to any other state employees and for retired state employees 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 premium 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 coverage of state employees and retired state employees enrolled in the statewide and the supplementary health benefit plans established pursuant 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

S. 2051 3

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 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.

(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 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

S. 2051 4

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 contribution 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 employee maintained his or her enrollment in the statewide and the supplementary health benefit plans or an optional benefit plan established pursuant 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 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.

§ 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 budget, may extend the modified state cost of premium or subscription charges for state employees [or retirees] not subject to an agreement referenced above and shall promulgate the necessary rules or regulations to implement this provision.

§ 3. The legislative law is amended by adding a new section 49 to read as follows:

§ 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 organization entered into pursuant to article fourteen of the civil service law shall be limited to the provisions necessary to implement such agreement.

§ 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. No premiums paid by retired state employees in excess of those consistent with the provisions of this act shall be refunded to such retired state employees.

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

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).

Read the full memo (799 words)

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 employ- ees 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 subse- quently 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. Current- ly, 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 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 imme- diately provided that sections one and two of this act shall be deemed to have been in effect on October 1, 2011. No premiums paid by retired state employees in excess of those consistent with the provisions of this act shall be refunded to such retired state employees.

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 unrepresented State employees and retirees.

Justification

This bill reclaims the legislature's ability to set the State's health insurance contribution rates for NYSHIP (New York State Health Insurance Plan) which covers all public employees. The legislature had previously surrendered this power to the President of the Civil Service Commission in 2011 when it granted the power to set rates administratively as long as the President had the consent of the Director of the Budget. This means that these rates could be altered by a future Civil Service Commission, which is of particular concern to state retirees who are no longer active employees afforded the right to collectively bargain under the Taylor Law.

All public servants should be able to look forward to retirement assured that their health insurance contribution rates will not change over- night, leaving them in a financially precarious position. This bill gives both current and retired public employees the peace of mind they deserve by clarifying that the State's contribution to NYSHIP premiums cannot be altered by executive regulation.

Legislative history

2018: S.1862-A - Passed the Senate 2017: S.1862 - Reported to Finance 2015-6: S.3202 - Reported to Finance 2013-4: S.4112 - Reported to Finance

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. No premiums paid by retired state employees in excess of those consistent with the provisions of this act shall be refunded to such retired state employees.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.