This chapter is enacted pursuant to § 10, Subdivision 1(ii)a(1), of the Municipal Home Rule Law of the State of New York and is intended, to the extent inconsistent therewith, to supersede the provisions of General Municipal Law §§ 92-a and 93, Civil Service Law Article
XI (§§ 160 through 170), and Town Law § 27.
At the option of the Town Board of the Town
of Ithaca, the Town of Ithaca may make cash payments to an officer
or employee of the Town who chooses not to be covered under the Town's
health insurance plan subject, however, to the following limitations:
A. The amount paid by the Town to the employee shall
not exceed the cost to the Town of providing health insurance coverage
if the employee had chosen to be covered by the Town's available health
insurance plan.
B. The Town Board first finds that the particular circumstances
of the employee are such that the utilization of the Town's health
insurance plan is either unavailable to the employee, or would not
provide appropriately adequate coverage for the employee or the employee's
family, or other good cause exists in the view of the Town Board which
warrant cash payment in lieu of payment of health insurance premiums.
C. No payment shall be made to an employee until the
employee notifies the Town in writing that the employee chooses not
to participate in the Town's health insurance plan.
The option to make the payments in lieu of cash
pursuant to this chapter shall be effected solely by resolution of
the Town Board and shall be in the sole discretion of the Town Board.
The payment of cash in lieu of health insurance
premiums provided for in this chapter may be made subject to such
conditions as the Town Board may impose. Such conditions may include,
but are not necessarily limited to:
A. A requirement that the employee obtain health insurance
from another source and provide to the Town copies of bills or other
evidence satisfactory to the Town of the existence and maintenance
of such other health insurance.
B. If the Town's health insurance plan is modified in
a manner that eliminates the problem causing the employee to decline
coverage under the Town's plan, payments may cease if the employee
is otherwise eligible for and able to be covered by the Town's then-existing
plan.
C. If the employee obtains substantially equivalent health
insurance benefits from another source at a cost less than the cost
of the Town's health insurance plan, the cash payments to the employee
may be reduced proportionately to such lesser cost.
An employee receiving payments pursuant to this
chapter shall be fully responsible for any income taxes that may be
payable with respect to such payments, and the Town may withhold any
amounts required by any applicable tax laws, federal or state, that
relate to or require such withholding on payments of such nature.
For the purposes of this chapter the following
terms shall have the meanings indicated:
EMPLOYEE
Includes all past, current and future employees of the Town
of Ithaca who are eligible under the Town's policies for payments
of all or a portion of their health insurance premiums, and any past,
current, or future officers of the Town that are otherwise eligible
for partial or complete health insurance coverage.