New York Laws
Article 14 - Salaries and Employee Benefits
201-A - Flexible Benefits Program for Certain State Officers and Employees.

§ 201-a. Flexible benefits program for certain state officers and
employees. 1. This section shall be applicable to employees as defined
in subdivision one of section eleven of chapter four hundred sixty of
the laws of nineteen hundred eighty-two, as amended and employees and
officers of public authorities and public benefit corporations, annual
employees of the legislative branch, and judges and justices of the
unified court system and non-judicial employees of the unified court
system whose positions are not in collective negotiating units under
article fourteen of the civil service law who elect to participate in
the benefits of the employee benefit program provided by paragraph (a)
of subdivision two of section eleven of chapter four hundred sixty of
the laws of nineteen hundred eighty-two, as amended.

2. The director of employee relations, in consultation with the
director of the budget and the president of the civil service
commission, is authorized to establish a flexible benefits program
consistent with sections seventy-nine, one hundred five, one hundred
six, one hundred twenty-five and one hundred twenty-nine of the internal
revenue code and regulations adopted pursuant thereto, and implement
such program subject to the approval of the director of the budget.

3. At the request of an employee as defined in subdivision one of this
section, the comptroller shall, by payroll deduction, defer the payment
of part of the compensation of such employee as provided in a written
statement by the employee for the purpose of establishing and
maintaining a flexible spending account as authorized in subdivision two
of this section, and shall transfer the amount so deferred to the
authorized program administrator.

4. The term "program administrator" shall mean that agent, as
determined by the director of employee relations, responsible for the
maintenance and management of flexible spending accounts as authorized
in subdivision two of this section.

5. Moneys held in such accounts for the employees of each such
participating employer shall be held by the program administrator as
agent for the participating employee and shall be accounted for
separately and shall remain the property of such participating employer.
Notwithstanding any law to the contrary, moneys may be paid out of such
accounts without any appropriation by law. All payments of moneys from
such accounts shall be made only in accordance with the flexible
benefits program audit of the state comptroller. Any unexpended balances
in such accounts at the end of a plan year as that term is so defined by
the internal revenue service shall be returned to the control of the
participating employer and, in the case of the state, to the general
fund.

6. To the extent permitted by section one hundred twenty-five of the
internal revenue code and regulations adopted pursuant thereto, any
salary deferred by an employee as defined in subdivision one of this
section under a flexible benefits program established pursuant to this
section shall be considered part of annual compensation for the purpose
of computing retirement benefits.

7. Notwithstanding any other law, rule, or regulation to the contrary,
where, and to the extent that, an agreement between the state and an
employee organization entered into pursuant to article fourteen of the
civil service law on behalf of employees in a collective negotiating
unit established pursuant to article fourteen of the civil service law
provides for flexible benefits provided by this section, such flexible
benefit program shall be established in accordance with such agreement.