As you will recall, a contentious issue has remained unresolved regarding the “legality” of district contract provisions that provided compensation to employees who decline health insurance coverage offered through NYSHIP (Empire Plan). On May 15, 2012, NYSHIP adopted Rule 122r3 prohibiting municipalities and school districts participating in the Empire Plan from granting cash payments to those employees who decline coverage, but remain covered (or eligible therefor) as dependents through the Empire Plan of a spouse or otherwise.

The rule would be effective the January 1st following entry into a new collective bargaining agreement.