Prohibits the diminution of health insurance benefits of public employee retirees and their dependents or reducing the employer's contributions for such insurance; defines employers to include the state, municipalities, school districts, and public authorities and commissions.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A902
SPONSOR: Weprin (MS) TITLE OF BILL: An act to prohibit public employers from diminishing
the health insurance benefits and contributions of certain retired
public employees
PURPOSE OR GENERAL IDEA OF BILL: This bill would prohibit state and
local governments from diminishing the health insurance benefits of
retirees below the level of benefits that are in place 30 days after
this act shall become law.
SUMMARY OF SPECIFIC PROVISIONS: Section 1: Prohibits the State and
local governments from diminishing the health insurance benefits of
retirees and their dependents, as well as the employer contribution
toward such health insurance, below the level of benefits in place 30
days after this act shall take effect. This bill does not apply to
school districts and BOCES because they have been recently covered under
the current law.
Section 2: Grants precedence to collective bargaining agreements.
Section 3: Provides for future retirees from positions not subject to a
collective bargaining agreement.
Section 4: Ensures that a public employer which does not now offer
health insurance benefits to retirees is not required to do so under
this bill.
EXISTING LAW: Chapter 729 of the laws of 1994, as amended by Chapter
22 of the Laws of 2007 and the laws of 2009, prohibits school districts
and BOCES from diminishing retiree health insurance benefits, unless
there is a parallel diminution affecting active employees. Article XI of
the Civil Service Law provides that retires from the State and partic-
ipating agencies in the New York State Health Insurance Plan (NYSHIP)
shall receive the same health insurance benefits as negotiated with
active employees. There is no existing law protecting health insurance
benefits of retirees from local governments.
JUSTIFICATION: Given the increasing costs of health care, health
insurance coverage is of tremendous importance to retirees and their
dependents.
Although there have been a number of attempts to protect retiree health
coverage, there is no consistent standard for all retirees. Education
retirees are now protected by a law. Some workers have retired under
union contracts with stronger protections. Many retirees, however, have
no protection. This bill creates a uniform standard of protection which
applies to all retirees and their dependents, unless covered by a more
favorable union contract.
PRIOR LEGISLATIVE HISTORY: A.7060-A held for consideration by ways
and means in 2010
S.6029B in 2007 01/12/11 referred to governmental employees 01/04/12
referred to governmental employees 05/01/12 reported referred to ways
and means
FISCAL IMPLICATIONS: None. This bill merely requires the State to
continue the level of benefits which it is now providing.
EFFECTIVE DATE: 30 days after it shall have become law.
