N.Y. PBA Law § 1210-A

§ 1210-a. Flexible benefits program. 1. For purposes of this section,\nthe following terms shall have the following meanings:\n a. "Code" shall mean the United States internal revenue code of\nnineteen hundred eighty-six, as amended, and regulations promulgated\nthereunder.\n b. "Authority" shall mean (1) the New York city transit authority, (2)\nthe Manhattan and Bronx surface transit operating authority, or (3) the\nStaten Island rapid transit operating authority.\n c. "Employee" shall mean any officer or employee of any of the\nentities set forth in paragraph c of this subdivision who is not\neligible to receive benefits from the New York city employee benefits\nprogram.\n For purposes of this section, an independent contractor shall not be\nconsidered an employee.\n d. "Flexible benefits program" shall mean the program established\npursuant to this section, qualifying as a cafeteria plan as defined in\nsection one hundred twenty-five of the code or any successor section\nthereto providing similar benefits, and provided as a part of an\nemployee benefits program administered by the authority.\n e. "Program administrator" shall mean that agent, as determined by the\nauthority, responsible for the maintenance and management of the\nflexible benefits program as authorized in subdivision two of this\nsection.\n 2. The authority is authorized to establish and implement a flexible\nbenefits program for its employees who are not eligible to receive\nbenefits from the New York city employee benefits program, consistent\nwith applicable provisions of the code. It may enter into agreements\nwith persons or entities to act as program administrators of the\nflexible benefits program. It shall establish regulations for the\nappropriate administration of such flexible benefits program.\n 3. At the request of an employee, the chief fiscal officer of the\nauthority, or the officer responsible for the administration of the\nauthority's payroll, shall, by payroll deduction, adjust the payment of\nthe compensation of such employee as provided in a written statement by\nthe employee in connection with the establishment and maintenance of the\nflexible benefits program as authorized by subdivision two of this\nsection, and shall transfer the amount so adjusted to the authorized\nprogram administrator.\n 4. Moneys held for employees in any accounts established pursuant to\nthe flexible benefits program, as authorized in subdivision two of this\nsection, shall be held by the program administrator as agent for the\nparticipating employee, shall be accounted for separately and shall\nremain the property of the authority to the extent required by the code.\nNotwithstanding any law to the contrary, moneys may be paid out of such\naccounts without any appropriation by law. Any unexpended balances in\nsuch accounts at the end of a plan year as that term is defined by the\nUnited States internal revenue service shall be returned to the control\nof the authority to the extent required by the code.\n 5. To the extent permitted by the code, any salary deduction or\ndeferral to an employee under the flexible benefits program established\npursuant to this section shall be considered part of such employee's\nannual compensation for the purpose of computing pension contributions\nand retirement benefits by any retirement system or plan to which the\nauthority contributes on behalf of said employee. However, this\nsubdivision shall in no way be construed to supersede the provisions of\nsections four hundred thirty-one, five hundred twelve and six hundred\neight of the retirement and social security law or any other similar\nprovision of law which limits the salary base for computing retirement\nbenefits payable by a public retirement system.\n