A05308 Summary:

BILL NO    A05308 

SAME AS    
SAME AS S03202

SPONSOR    Abbate

COSPNSR    DiPietro, Colton, Graf

MLTSPNSR   Tenney

Amd S167, Civ Serv L; add S49, Leg L

Relates to determination of state contribution for certain benefits provided
pursuant to collective bargaining agreements.
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A05308 Actions:

BILL NO    A05308 

02/17/2015 referred to governmental employees
06/02/2015 reported referred to ways and means
01/06/2016 referred to governmental employees
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A05308 Votes:

There are no votes for this bill in this legislative session.
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A05308 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A5308
 
SPONSOR: Abbate
  TITLE OF BILL: An act to amend the civil service law and the legisla- tive law, in relation to certain benefits provided pursuant to collec- tive 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 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 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 imme- diately 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 estab- lish the new rates for current State employees and former State employ- ees 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 agree- ment between the State and CSEA, Chapter 491 of the Laws of 2011 also amended Civil Service Law section 167(8). This amendment made signif- icant changes to the health insurance contribution rates and granted the President of the Civil Service Commission power to extend the collec- tively negotiated contribution rates by regulation, with the consent of the Director of the Budget, for State employees not covered by a collec- tive bargaining agreement and retirees. This power, which notwithstands any inconsistent provision of law, removed the ability of the Legisla- ture 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 amend- ments 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 Employ- ees 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 regu- lation (4 NYCRR 73.3). By regulation, the President applied the collec- tively 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 Presi- dent 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: 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. 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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A05308 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5308
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 17, 2015
                                       ___________
 
        Introduced by M. of A. ABBATE -- read once and referred to the Committee
          on Governmental Employees
 
        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:
 
     1    Section 1. Subdivision 1 of section 167 of the civil service  law,  as
     2  amended  by chapter 582 of the laws of 1988, paragraph (a) as amended by
     3  section 7 of part T of chapter 56 of the laws of 2010 and paragraph  (b)
     4  as  amended  by  chapter  317 of the laws of 1995, is amended to read as
     5  follows:
     6    1.   (a) The full cost of premium  or  subscription  charges  for  the
     7  coverage  of  retired  state employees who are enrolled in the statewide
     8  and the supplementary health benefit plans established pursuant to  this
     9  article  and who retired prior to January first, nineteen hundred eight-
    10  y-three shall be paid by the state. Nine-tenths of the cost  of  premium
    11  or  subscription charges for the coverage of state employees and retired
    12  state employees retiring on or after  January  first,  nineteen  hundred
    13  eighty-three  and  prior  to  October first, two thousand eleven who are
    14  enrolled in the statewide and supplementary health benefit  plans  shall
    15  be  paid  by  the  state.  Three-quarters  of  the  cost  of  premium or
    16  subscription charges for  the  coverage  of  dependents  of  such  state
    17  employees  and  retired  state  employees  shall  be  paid by the state.
    18  Except as provided in paragraph (b) of this subdivision, the state shall
    19  contribute toward the premium or subscription charges for  the  coverage
    20  of  each  state employee or retired state employee who is enrolled in an
    21  optional benefit plan and for the dependents of such state  employee  or
    22  retired state employee the same dollar amount which would be paid by the
    23  state  for  the premium or subscription charges for the coverage of such
    24  state employee or retired state employee and his or her dependents if he
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08337-01-5

        A. 5308                             2
 
     1  or she were enrolled in the statewide and the supplementary health bene-
     2  fit plans, but not in excess of the premium or subscription charges  for
     3  the coverage of such state employee or retired state employee and his or
     4  her  dependents  under  such optional benefit plan. For purposes of this
     5  subdivision, employees  of  the  state  colleges  of  agriculture,  home
     6  economics,  industrial  labor  relations,  and  veterinary medicine, the
     7  state agricultural experiment station at Geneva, and any other  institu-
     8  tion or agency under the management and control of Cornell university as
     9  the  representative  of the board of trustees of the state university of
    10  New York, and employees of the  state  college  of  ceramics  under  the
    11  management and control of Alfred university as the representative of the
    12  board  of  trustees of the state university of New York, shall be deemed
    13  to be state employees whose salaries or compensation are  paid  directly
    14  by the state.
    15    (b)  Effective  January  first, nineteen hundred eighty-nine, notwith-
    16  standing any other law, rule or regulation, and where, and to the extent
    17  that, an agreement  between  the  state  and  an  employee  organization
    18  entered into pursuant to article fourteen of this chapter so provides or
    19  where and to the extent the employee health insurance council so directs
    20  with  respect to any other state employees and for retired state employ-
    21  ees retiring on or after January first,  nineteen  hundred  eighty-three
    22  and  prior  to  October  first,  two  thousand  eleven,  the state shall
    23  contribute nine-tenths of the cost of premiums or  subscription  charges
    24  for  coverage  of each such state employee or retired state employee who
    25  is enrolled in an optional benefit plan and three-fourths of such premi-
    26  um or subscription charges for dependents of  such  state  employees  or
    27  retired   state  employees  enrolled  in  such  optional  benefit  plan;
    28  provided, however, effective January first, nineteen hundred ninety-six,
    29  the contribution rates for the hospitalization and medical components of
    30  each optional benefit plan shall not exceed one hundred percent  of  the
    31  dollar amount of the state's contribution toward the hospitalization and
    32  medical  components  of individual and dependent coverage, respectively,
    33  in the Empire Plan. In the case of state  employees  retiring  prior  to
    34  January first, nineteen hundred eighty-three, the state shall contribute
    35  one  hundred percent of the individual premium and three-fourths of such
    36  premium for dependents  of  such  retired  employees  enrolled  in  such
    37  optional  benefit  plan;  however,  these  contribution  rates shall not
    38  exceed one hundred percent of the employer  dollar  amount  contribution
    39  for individual and dependent coverage respectively in the Empire Plan.
    40    (c)  Effective October first, two thousand eleven, notwithstanding any
    41  other law, rule or regulation, and where, and to  the  extent  that,  an
    42  agreement  between  the  state and an employee organization entered into
    43  pursuant to article fourteen of this chapter so  provides,  the  state's
    44  contribution  for cost of premium or subscription charges for the cover-
    45  age of state employees and  retired  state  employees  enrolled  in  the
    46  statewide  and the supplementary health benefit plans established pursu-
    47  ant to this article or an optional benefit plan shall be:
    48    (i) For state employees employed in a title allocated  or  equated  to
    49  salary  grade  nine  or  below,  the state shall contribute eighty-eight
    50  percent of the cost or premium subscription charges for  such  employees
    51  enrolled  in  the  statewide  and the supplementary health benefit plans
    52  established pursuant to this article for an optional  benefit  plan  and
    53  seventy-three  percent  of  the cost or premium subscription charges for
    54  dependents of such state employees enrolled in  the  statewide  and  the
    55  supplementary  health benefit plans established pursuant to this article
    56  or an optional benefit plan; provided, however,  that  the  contribution

        A. 5308                             3
 
     1  rates  for the hospitalization, medical, and mental health and substance
     2  abuse components of each optional benefit  plan  shall  not  exceed  one
     3  hundred  percent of the dollar amount of the state's contribution toward
     4  the  hospitalization,  medical,  and  mental  health and substance abuse
     5  components of individual and dependent coverage,  respectively,  in  the
     6  Empire Plan.
     7    (ii)  For  state employees employed in a title allocated or equated to
     8  salary grade ten  or  above,  the  state  shall  contribute  eighty-four
     9  percent  of  the cost or premium subscription charges for such employees
    10  enrolled in the statewide and the  supplementary  health  benefit  plans
    11  established  pursuant  to  this  article or an optional benefit plan and
    12  sixty-nine percent of the  cost  or  premium  subscription  charges  for
    13  dependents  of  such  state  employees enrolled in the statewide and the
    14  supplementary health benefit plans established pursuant to this  article
    15  or  an  optional  benefit plan; provided, however, that the contribution
    16  rates for the hospitalization, medical, and mental health and  substance
    17  abuse  components  of  each  optional  benefit plan shall not exceed one
    18  hundred percent of the dollar amount of the state's contribution  toward
    19  the  hospitalization,  medical,  and  mental  health and substance abuse
    20  components of individual and dependent coverage,  respectively,  in  the
    21  Empire Plan.
    22    (iii)  For retired state employees retiring on or after October first,
    23  two thousand eleven and before January first, two thousand  twelve,  the
    24  state  shall  contribute  eighty-eight  percent  of  the cost or premium
    25  subscription charges for such employees enrolled in  the  statewide  and
    26  the  supplementary  health  benefit  plans  established pursuant to this
    27  article or an optional benefit plan and  seventy-three  percent  of  the
    28  cost  or  premium  subscription  charges  for  dependents  of such state
    29  employees enrolled in the statewide and the supplementary health benefit
    30  plans established pursuant to this article or an optional benefit  plan;
    31  provided,  however, that the contribution rates for the hospitalization,
    32  medical, and mental  health  and  substance  abuse  components  of  each
    33  optional benefit plan shall not exceed one hundred percent of the dollar
    34  amount  of the state's contribution toward the hospitalization, medical,
    35  and mental health and  substance  abuse  components  of  individual  and
    36  dependent coverage, respectively, in the Empire Plan.
    37    (iv)  For  retired state employees retiring on or after January first,
    38  two thousand twelve from a title allocated or equated  to  salary  grade
    39  nine  or  below,  the state shall contribute eighty-eight percent of the
    40  cost or premium subscription charges for such employees enrolled in  the
    41  statewide  and the supplementary health benefit plans established pursu-
    42  ant to this article  or  an  optional  benefit  plan  and  seventy-three
    43  percent  of  the  cost or premium subscription charges for dependents of
    44  such state employees enrolled in the  statewide  and  the  supplementary
    45  health benefit plans established pursuant to this article or an optional
    46  benefit  plan;  provided,  however,  that the contribution rates for the
    47  hospitalization, medical, and mental health and substance  abuse  compo-
    48  nents of each optional benefit plan shall not exceed one hundred percent
    49  of the dollar amount of the state's contribution toward the hospitaliza-
    50  tion, medical, and mental health and substance abuse components of indi-
    51  vidual and dependent coverage, respectively, in the Empire Plan.
    52    (v)  For  retired  state employees retiring on or after January first,
    53  two thousand twelve from a title allocated or equated  to  salary  grade
    54  ten or above, the state shall contribute eighty-four percent of the cost
    55  or  premium  subscription  charges  for  such  employees enrolled in the
    56  statewide and the supplementary health benefit plans established  pursu-

        A. 5308                             4
 
     1  ant  to  this article or an optional benefit plan and sixty-nine percent
     2  of the cost or premium subscription charges for dependents of such state
     3  employees enrolled in the statewide and the supplementary health benefit
     4  plans  established pursuant to this article or an optional benefit plan;
     5  provided, however, that the contribution rates for the  hospitalization,
     6  medical,  and  mental  health  and  substance  abuse  components of each
     7  optional benefit plan shall not exceed one hundred percent of the dollar
     8  amount of the state's contribution toward the hospitalization,  medical,
     9  and  mental  health  and  substance  abuse  components of individual and
    10  dependent coverage, respectively, in the Empire Plan.
    11    (d) Notwithstanding any other law, rule or regulation, for the premium
    12  or subscription charges for the  coverage  of  retired  state  employees
    13  retiring on and after October first, two thousand eleven enrolled in the
    14  statewide  and  the  supplementary  health  benefit plans or an optional
    15  benefit plan established pursuant to this article the  state's  contrib-
    16  ution  rate  for  individual  and  dependent  coverage  shall  equal the
    17  contribution rate in effect on the date that the state employee retired;
    18  if, however, such retired state employee's service terminated  prior  to
    19  retirement  and  such  retired  state  employee was entitled to a vested
    20  retirement allowance pursuant to the retirement and social security  law
    21  on the date his or her service terminated and such retired state employ-
    22  ee  maintained his or her enrollment in the statewide and the supplemen-
    23  tary health benefit plans or an optional benefit plan established pursu-
    24  ant to this article the state's contribution  rate  for  individual  and
    25  dependent  coverage  shall  equal the contribution rate in effect on the
    26  date that such retired state employee's  service  terminated;  provided,
    27  however,  that  the contribution rates for the hospitalization, medical,
    28  and mental health and substance abuse components of each optional  bene-
    29  fit  plan  shall  not exceed one hundred percent of the dollar amount of
    30  the state's contribution toward the hospitalization, medical, and mental
    31  health and substance abuse components of individual and dependent cover-
    32  age, respectively, in the Empire Plan.
    33    § 2. Subdivision 8 of section 167 of the civil service law, as amended
    34  by section 2 of part A of chapter 491 of the laws of 2011, is amended to
    35  read as follows:
    36    8. Notwithstanding any inconsistent provision of law, where and to the
    37  extent that an agreement between the state and an employee  organization
    38  entered  into  pursuant to article fourteen of this chapter so provides,
    39  the state cost of premium or subscription charges for eligible employees
    40  covered by such agreement may be modified pursuant to the terms of  such
    41  agreement. The president, with the approval of the director of the budg-
    42  et, may extend the modified state cost of premium or subscription charg-
    43  es  for state employees [or retirees] not subject to an agreement refer-
    44  enced above and shall promulgate the necessary rules or  regulations  to
    45  implement this provision.
    46    § 3. The legislative law is amended by adding a new section 49 to read
    47  as follows:
    48    §  49.  Legislation  implementing  collective  bargaining  agreements.
    49  Legislation which enacts or amends any provision of law for the  purpose
    50  of implementing an agreement between the state and an employee organiza-
    51  tion  entered into pursuant to article fourteen of the civil service law
    52  shall be limited to the provisions necessary to  implement  such  agree-
    53  ment.
    54    § 4. This act shall take effect immediately provided that sections one
    55  and two of this act shall be deemed to have been in effect on October 1,
    56  2011.  All  premiums  paid by retired state employees in excess of those

        A. 5308                             5
 
     1  consistent with the provisions of this act shall  be  returned  to  such
     2  retired  state employees, or to their estate, as the case may be, by the
     3  comptroller as soon as practicable, but in no  event  later  than  sixty
     4  days after such effective date.
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