Section 167. Contributions

1. (a) The full cost of premium or subscription
  charges for the coverage of retired state employees who are enrolled  in
  the  statewide  and the supplementary health insurance plans established
  pursuant to this  article  and  who  retired  prior  to  January  first,
  nineteen hundred eighty-three shall be paid by the state. Nine-tenths of
  the  cost  of  premium or subscription charges for the coverage of state
  employees and retired state  employees  retiring  on  or  after  January
  first,  nineteen  hundred eighty-three who are enrolled in the statewide
  and supplementary health insurance plans shall be  paid  by  the  state.
  Three-quarters  of  the  cost of premium or subscription charges for the
  coverage of  dependents  of  such  state  employees  and  retired  state
  employees  shall  be  paid by the state. Except as provided in paragraph
  (b) of this subdivision, the state shall contribute toward  the  premium
  or  subscription  charges  for  the  coverage  of each state employee or
  retired state employee who is enrolled in an optional benefit  plan  and
  for  the dependents of such state employee or retired state employee the
  same dollar amount which would be paid by the state for the  premium  or
  subscription  charges for the coverage of such state employee or retired
  state employee and his or her dependents if he or she were  enrolled  in
  the  statewide  and the supplementary health insurance plans, but not in
  excess of the premium or subscription charges for the coverage  of  such
  state employee or retired state employee and his or her dependents under
  such  optional benefit plan. 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 are paid directly by the state.
    (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
  insurance  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  insurance  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 insurance 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 insurance plan after retirement,  the
  department of civil service 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 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 insurance on account of such retired employee and
  his  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  insurance on account of such retired
  employee  and  his  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 insurance 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 insurance plan after retirement. The participating employer shall
  certify  to  the  department of civil service the dollar value of earned
  and accumulated but unused sick leave  standing  to  the  credit  of  an
  employee  at  the time of his retirement. Additional contributions shall
  be paid by such participating employer and applied towards  charges  for
  health   insurance  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 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 increased pursuant to the terms of such
  agreement  and for a duration provided by such agreement and pursuant to
  rules and regulations as may  be  established  by  the  president.  Such
  increase in state cost shall only apply during the period of eligibility
  provided by such agreement and shall not be applied during retirement.
    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.