New York Laws
Article 11 - Health Benefits for State and Retired State Employees
167 - Contributions.

(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, 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.

2. Each participating employer shall be required to pay not less than
fifty percentum of the cost of premium or subscription charges for the
coverage of its employees and retired employees who are enrolled in the
statewide only or the statewide and comparable supplementary health
benefit plans established pursuant to this article. Such employer shall
be required to pay not less than thirty-five percentum of the cost of
premium or subscription charges for the coverage of dependents of such
employees and retired employees. Such employer shall contribute toward
the premium or subscription charges for the coverage of each employee or
retired employee who is enrolled in an optional benefit plan and for the
dependents of such employee or retired employee the same dollar amount
which would be paid by such employer for the premium or subscription
charges for the coverage of such employee or retired employee and his or
her dependents if he or she were enrolled in the statewide health
benefit plan, but not in excess of the premium or subscription charges
for the coverage of such employee or retired employee and his or her
dependents under such optional benefit plan. Such employer shall not be
required to pay the cost of premium or subscription charges for the
coverage of unpaid elected officials, or unpaid board members of a
public authority, or their dependents, provided, however that no unpaid
board member of a public authority shall be eligible to participate in
such benefit plan until he or she has served in such position for at
least six months. Subject to such regulations as the president may
prescribe, any participating employer may elect to pay higher rates of
contribution for the coverage of employees, retired employees and their
dependents; provided, however, that if a participating employer elects
to pay a higher or lower rate of contribution for its retired employees
or their dependents, or both, than that paid by the state for its
retired employees or their dependents, or both, amounts withheld from
the retirement allowances of such retired employees for their share of
premium or subscription charges, if any, shall, if the president so
requires, be paid to such participating employer which shall pay into
the health insurance fund the full cost of premium or subscription
charges for the coverage of such retired employees and their dependents.
Such election shall be exercised by the adoption of a resolution by its
governing body which, if required by law to be approved by any other
body or officer, shall have been so approved.
3. Contributions, if any, required to be paid by an employee or a
retired employee for his or her coverage and for the coverage of his or
her dependents, if any, shall be deducted from his or her salary
payments or from his or her retirement allowance, as the case may be.
Upon the written request of a survivor of such retirees or employees,
such contribution required to be paid for continued insurance coverage
shall be deducted from any retirement allowance to which he or she is
entitled.
4. Upon the retirement, on or after July first, nineteen hundred
sixty-five, of a state employee whose salary or compensation is paid
directly by the state, who is subject to a plan established by law,
rule, regulation, written order or written policy which provides for the
regular earning and accumulation of sick leave, and who is eligible to
continue coverage under the health benefit plan after retirement, the
department shall determine, based on the employee's age at the time of
retirement, the actuarial equivalent in monthly installments for the
remaining life expectancy of such retired employee, of the dollar value
of the earned and accumulated but unused sick leave standing to his or
her credit at the time of retirement, without interest. Such dollar
value shall be based on the employee's salary at the time of retirement.
In addition to regular employer contributions, contributions in the

amount of such monthly installments shall be paid from the state's
appropriation to the health insurance fund and applied towards the
charges for health benefits on account of such retired employee and his
or her dependents, to the extent necessary to pay such charges. The
remaining amount, if any, necessary to pay such charges shall be
contributed by such retired employee. On or after October first,
nineteen hundred seventy when such dollar value of such sick leave
amounts to less than one hundred dollars for a particular retired
employee, in lieu of contributions which would otherwise be required
from such retired employee, additional contributions shall be paid for
the state's appropriation to the health insurance fund and applied
towards the charges for health benefits on account of such retired
employee and his or her dependents until the sum of such additional
contributions equals such dollar value of such sick leave. The remaining
amount, if any, necessary to pay such charges shall be contributed by
such retired employee. 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 is paid directly by the state.
5. Subject to such regulations as the president may prescribe, any
participating employer may elect to make additional contributions
towards charges for health benefit coverage on account of its retired
employees and their dependents, based on the dollar value of their sick
leave accumulated but unused at the time of retirement. Such election
shall apply to employees in the service of the participating employer
who retire on or after the effective date of such election, who are
subject to a plan established by law, rule, regulation, written order or
written policy which provides for the regular earning and accumulation
of sick leave, and who are eligible to continue coverage under the
health benefit plan after retirement. The participating employer shall
certify to the department the dollar value of earned and accumulated but
unused sick leave standing to the credit of an employee at the time of
his or her retirement. Additional contributions shall be paid by such
participating employer and applied towards charges for health benefits
on account of its retired employees and their dependents in the same
manner as provided in subdivision four of this section with respect to
retired state employees and their dependents.
6. There is hereby created a health insurance fund which shall be
available without fiscal year limitation for premium or subscription
charge payments, for payment of health benefits to plan participants,
and for administrative services under any contract or contracts
purchased in accordance with this article. The amounts withheld from
employees and retired employees under subdivision three of this section,
all amounts appropriated by the state to such health insurance fund, and
all amounts contributed by any participating employer pursuant to
subdivision two of this section, shall be credited to such health
insurance fund. The income derived from any dividends, premium rate
adjustments or other refunds under any such contract or contracts shall
be credited to such fund and retained therein as a special reserve for
adverse fluctuation in future charges under any such contract or
contracts. Any interest earned by the investment of moneys in such
health insurance fund shall be added to such special reserve, become a

part of such special reserve, and be used for the purpose of such
special reserve.
7. The amounts required to be paid to any contracting corporation
under any contract entered into pursuant to the provisions of this
article shall be payable from such health insurance fund as audited by
and upon the warrant of the comptroller on vouchers certified or
approved by the president.
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 employees or retirees not subject to an agreement referenced
above and shall promulgate the necessary rules or regulations to
implement this provision.
9. Any interest earned by the investment of moneys in the dental
insurance fund shall be added to such fund, become a part of such fund,
be used for the purpose of such fund, and be available without fiscal
year limitation.