NYS Senate
Joseph Bruno Majority Leader
Catharine M. Young
William Stachowski
Dale Volker
Antoine T. Thompson
Mary Rath
George Maziarz
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Sheldon SilverSpeaker
Francine DelMonte
Stephen Hawley
Robin Schimminger
Crystal Peoples
Mike Cole
Dennis H. Gabryszak
Sam Hoyt
Mark J.F. Schroeder
Jack Quinn
Daniel Burling
James Hayes
Joe Gigilio
William Parment
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New York State Legislators in W.A.R.P. Districts
SPONSORS MEMO:
NEW YORK STATE SENATE INTRODUCER'S MEMORANDUM IN SUPPORT
submitted in accordance with Senate Rule VI. Sec 1
BILL NUMBER: S973A
SPONSOR: FARLEY
TITLE OF BILL: An act in relation to affecting the health insurance benefits and contributions of certain retired public employees
PURPOSE: This bill would protect public employee retirees from unilateral changes in health insurance benefits or premium contributions by their former public employers.
SUMMARY OF PROVISIONS: The bill enacts an unconsolidated law which, for the period May 1, 2004 until May 15, 2005, prohibits a public employer from diminishing the health insurance benefits provided to retirees and their dependents or reducing the contributions which the public employer makes toward these benefits, unless also making an equivalent change for active employees.
EXISTING LAW: Chapter 729 of the Laws of 1994, as last amended by Chapter 48 of the Laws of 2003, provides this protection for retiree of school districts.
JUSTIFICATION: Health insurance coverage is a critical issue for retirees, who often face tremendous health care costs at a time of severely diminished income. Continuation of health insurance after retirement is provided for some retirees by statute and for some others by union contract. This legislation seeks to protect health insurance coverage for all public sector retirees. It provides that a public employer may not unilaterally reduce benefit coverage or employer contributions unless making a parallel reduction for active employees. This does not prevent public employers from reducing benefits as a cost cutting measure, but does, in effect, require that any such reductions be the result of union negotiations. Absent this, the Taylor Law prohibits public employee unions from negotiating on behalf of retirees. A similar law has protected school district retirees since 1994.
LEGISLATIVE HISTORY: Derived from S.2061 of 2002. See also Chapter 729 of the Laws of 1994 as amended by Chapter 48 of the Laws of 2003, and Veto #67 of 1999.
FISCAL IMPLICATIONS: None. This is not a fiscal mandate, as the State remains free to reduce health insurance costs either through amendments to the Civil Service law or through public employee negotiations.
LOCAL FISCAL IMPLICATIONS: Same as State fiscal implications (above).
VETO MESSAGE:
VETO MESSAGE - No. 234
TO THE ASSEMBLY:
I am returning herewith, without my approval, the following bill:
Assembly Bill Number 4962-A, entitled:
"AN ACT in relation to affecting the health insurance benefits contributions of certain retired public employees"
NOT APPROVED
This bill would provide that public employers would be prohibited diminishing the health insurance benefits of retired public employee the contributions made for retired employees' health insurance for period of May 1, 2004 to May 1, 2005, unless the public employer negotiated _ corresponding diminution in benefits or contributions the corresponding group of active employees. This bill would take ef immediately.
The bill is modeled on a law which affords similar health insur protection to retirees of school districts and Boards of Coopera Educational Services (BOCES). See: Chapter 729 of the Laws of 1
Thus, supporters of the bill contend that it would be unfair not extend the same protections to all public employees. Further, s
retirees are not covered by the Taylor Law and thus do not have right to bargain collectively, supporters contend that the bill necessary to prevent public employers from unfairly and unilaterally disadvantaging retirees.
I disapproved an identical bill in 1999 for two primary First, no evidence was presented that State or local governments unfairly and systematically reducing retiree health benefits. Sec the bill would have interfered with the State's ability to manage health insurance program. For example, it would have prevented the S from making changes in its health insurance program that would pro savings without materially affecting benefits. In the absence of any evidence to the contrary, I am once again constrained to disapprove bill.
As I said before, however, my disapproval of this legislation sh not be misconstrued. The State and its municipalities provide excel
and comprehensive health insurance benefits to their retirees, and confident that this situation will continue. Moreover, my Administration is mindful of the limited resources of retirees and will exercise due caution before modifying the health insurance benefits of retirees I encourage all local governments to do the same.
The bill is disapproved.
(signed) GEORGE R.PATAKI
US Senate
Charles Schumer
Hillary Clinton
House Reps
District 26 Thomas Reynolds
District 27 Brian Higgins
District 28 Louise Slaughter
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