senate Bill S1410

Relates to prohibiting a diminution of certain employee benefits

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 07 / Jan / 2011
    • REFERRED TO AGING
  • 04 / Jan / 2012
    • REFERRED TO AGING

Summary

Provides that an employer shall not diminish the benefits granted a participant, or for which such participant is eligible, under an employer welfare benefit plan as such plan was in existence at the time of the retirement of such participant; defines terms.

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Bill Details

Versions:
S1410
Legislative Cycle:
2011-2012
Current Committee:
Senate Aging
Law Section:
Elder Law
Laws Affected:
Add Art 3 ยง301, Eld L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S1571A
2007-2008: S155

Sponsor Memo

BILL NUMBER:S1410

TITLE OF BILL:
An act
to amend the elder law, in relation to prohibiting a diminution of
certain employee benefits

SUMMARY OF PROVISIONS:
This bill adds a new Article 3 to the Elder
Law to prohibit the diminution of the health care benefits of retired
employees after they have retired, making any such diminution null
and void as against state policy.

JUSTIFICATION:
This measure requires that if an employer has made an agreement
concerning health benefits for an employee, and the employee is
retired and receiving benefits, the employer cannot then later
unilaterally reduce the benefits.

This measure is much needed. Some employers, looking for areas in
which to save money, have begun to reduce the health benefits to
retired workers-the ones not represented at the bargaining table or
employed as current employees.

PRIOR LEGISLATIVE HISTORY:
S.6559 of 2006 - Aging, Rules
S.155 of 2008 - Advanced to Third Reading
S.1571A of 2010 - Aging, Finance

FISCAL IMPLICATIONS:
None to the state.

EFFECTIVE DATE:

90 days after it becomes law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1410

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             January 7, 2011
                               ___________

Introduced  by  Sens. GOLDEN, LAVALLE, MAZIARZ -- read twice and ordered
  printed, and when printed to be committed to the Committee on Aging

AN ACT to amend the elder law, in relation to prohibiting  a  diminution
  of certain employee benefits

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The elder law is amended by adding a new article 3 to  read
as follows:

                                ARTICLE 3
                          EMPLOYEE BENEFIT PLANS

SECTION 301. PROHIBITION AGAINST DIMINUTION OF BENEFITS.

  S 301. PROHIBITION AGAINST DIMINUTION OF BENEFITS. ANY OTHER PROVISION
OF  ANY OTHER LAW TO THE CONTRARY NOTWITHSTANDING, AN EMPLOYER SHALL NOT
DIMINISH THE BENEFITS GRANTED A PARTICIPANT, OR FOR WHICH  SUCH  PARTIC-
IPANT  IS  ELIGIBLE, UNDER AN EMPLOYEE WELFARE BENEFIT PLAN AS SUCH PLAN
WAS IN EXISTENCE AT THE TIME OF THE RETIREMENT OF SUCH PARTICIPANT,  AND
WHICH  APPLIED  TO SUCH PARTICIPANT. ANY REDUCTION IN SUCH PLAN OR BENE-
FITS TO SUCH PARTICIPANT IS HEREBY DECLARED NULL  AND  VOID  AS  AGAINST
STATE POLICY. AS USED IN THIS ARTICLE:
  1.  THE  TERMS "EMPLOYEE WELFARE BENEFIT PLAN" AND "WELFARE PLAN" HAVE
THE SAME MEANING AS SUCH TERMS ARE DEFINED IN SECTION 1002 OF SUBTITLE A
OF SUBCHAPTER I OF CHAPTER 18 OF USC TITLE 29.
  2. "EMPLOYER" MEANS ANY PERSON ACTING  DIRECTLY  AS  AN  EMPLOYER,  OR
INDIRECTLY  IN  THE  INTEREST OF AN EMPLOYER, IN RELATION TO AN EMPLOYEE
BENEFIT PLAN; AND INCLUDES A GROUP OR ASSOCIATION  OF  EMPLOYERS  ACTING
FOR  AN  EMPLOYER  IN  SUCH CAPACITY. THE TERM EMPLOYER INCLUDES WITHOUT
RESTRICTION ANY EMPLOYEE ORGANIZATION, AND PUBLIC, PRIVATE, OR  NOT-FOR-
PROFIT ENTITY OR ENTITIES, INDIVIDUAL OR INDIVIDUALS, INCLUDING ENTITIES

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04387-01-1

S. 1410                             2

OR  INDIVIDUALS  DOING  BUSINESS  AS,  WHICH ARE ENGAGED IN ANY TRADE OR
OCCUPATION WHICH EMPLOYS EMPLOYEES IN THIS STATE.
  3. "EMPLOYEE" MEANS ANY INDIVIDUAL EMPLOYED BY AN EMPLOYER.
  4.  "PARTICIPANT"  MEANS  ANY  FORMER  EMPLOYEE OF AN EMPLOYER, OR ANY
FORMER MEMBER OF AN EMPLOYEE ORGANIZATION, WHO IS ELIGIBLE TO RECEIVE  A
BENEFIT  OF  ANY TYPE FROM AN EMPLOYEE WELFARE BENEFIT PLAN WHICH COVERS
EMPLOYEES OF SUCH EMPLOYER OR MEMBERS OF  SUCH  ORGANIZATION,  OR  WHOSE
BENEFICIARIES MAY BE ELIGIBLE TO RECEIVE ANY SUCH BENEFIT.
  5.  "EMPLOYEE  ORGANIZATION" MEANS ANY LABOR UNION OR ANY ORGANIZATION
OF ANY KIND, OR ANY AGENCY OR EMPLOYEE REPRESENTATION COMMITTEE, ASSOCI-
ATION, GROUP OR PLAN, IN WHICH EMPLOYEES PARTICIPATE  AND  WHICH  EXISTS
FOR THE PURPOSE, IN WHOLE OR IN PART, OF DEALING WITH EMPLOYERS CONCERN-
ING  AN  EMPLOYEE  WELFARE  BENEFIT  PLAN OR OTHER MATTERS INCIDENTAL TO
EMPLOYMENT RELATIONSHIPS;  OR  ANY  EMPLOYEES'  BENEFICIARY  ASSOCIATION
ORGANIZED  FOR  THE  PURPOSE IN WHOLE OR IN PART, OF ESTABLISHING SUCH A
PLAN.
  6. "BENEFICIARY" MEANS A PERSON DESIGNATED BY A PARTICIPANT, OR BY THE
TERMS OF AN EMPLOYEE BENEFIT PLAN, WHO IS OR MAY BECOME  ENTITLED  TO  A
BENEFIT THEREUNDER.
  7.  "PERSON"  MEANS  AN INDIVIDUAL, PARTNERSHIP, JOINT VENTURE, CORPO-
RATION, MUTUAL COMPANY, JOINT-STOCK COMPANY, TRUST,  ESTATE,  UNINCORPO-
RATED ORGANIZATION, ASSOCIATION, OR EMPLOYEE ORGANIZATION.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law.

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