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Town of Ithaca, NY
Tompkins County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Town Board of the Town of Ithaca 2-8-1999 by L.L. No. 2-1999. Amendments noted where applicable.]
GENERAL REFERENCES
Compensation — See Ch. 20.
A. 
The Town of Ithaca provides health insurance coverage for its employees.[1]
[1]
Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).
B. 
The Town pays a portion of the premiums for the employees for such health insurance coverage.
C. 
In certain instances, the medical coverage provided by the Town's health insurance is either inadequate or unavailable because of preexisting conditions, residency of the employee, availability of specialized medical services, or other reasons.[2]
[2]
Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).
D. 
The Town would like to provide a mechanism to allow such employees, under certain circumstances, to obtain other medical insurance coverage and receive the Town's contribution toward the cost of such coverage in cash.
E. 
Providing this alternative benefit to Town of Ithaca employees is beneficial to the Town in maintaining certain employees in the employment of the Town that have been outstanding employees for the Town, and also permits the Town to hire new employees who might otherwise not accept employment with the Town because of the type of health insurance coverage provided by the Town.
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.