Payments for vacation credit upon retirement or resignation must be authorized by formal resolution by the governing body

Payments for vacation credit upon retirement or resignation must be authorized by formal resolution by the governing body

Decisions of the Commissioner of Education, Decision #11173

A board of education resolution appointing its school superintendent included a clause stating that the superintendent would "continue to receive and be eligible for all contractual benefits accrued over his years of service with the District."

When the superintendent resigned he expected to be paid for his accumulated but unused vacation credit and had submitted his resignation "subject to (his) vacation pay." The Commissioner of Education, however, ruled that this was not sufficient to overcome the need for the type of formal resolution required by §92 of the General Municipal Law.*

After holding that paying prior administrators for unused vacation could not be relied upon to support such a payment, the Commissioner concluded that the Board's resolution appointing the superintendent "is not the type of resolution contemplated by §92" as is was not "an act clearly declarative of the will of the Board...to pay any administrator cash in lieu of unused vacation." The Commissioner also ruled that the superintendent had not proved the existence of an "oral contract" to provide for such a payment.

Typically §92 is strictly construed as it expresses a statutory exception to the prohibition against gifts of public monies set out in Article VII, §7 of the State Constitution. Accordingly, the resolution authorizing expenditure such as those to "liquidate" vacation credits**must be clear and unequivocal.

Where a contract, such as one resulting from Taylor Law negotiations, provides for such payments, the prevailing view is that such payments are lawful.

* §92.1 of the General Municipal Law, in pertinent part, provides that “Notwithstanding any other provision of law, any such governing board or mayor may also in like manner provide for cash payment of the monetary value of accumulated and unused vacation time or time allowances granted in lieu of overtime compensation standing to the credit of its officers and employees at the time of their separation from the service, or in case of death in service, to be paid to their beneficiaries.”

** N.B. §92.1, however, is silent with respect to the liquidation of “unused sick leave” upon separation from service or in the case of death while in service.

A tentative collective bargaining agreement between the State and Council 82 Supervisors Unit announced

A tentative collective bargaining agreement between the State and Council 82 Supervisors Unit announced

Source: Office of the Governor

On April 5, 2012 Governor Andrew M. Cuomo and Council 82 Executive Director James Lyman announced a tentative contract agreement between the State and Council 82 Supervisors Unit.

The tentative contract, which is subject to ratification by unit members includes zero percent wage increases for 2011-2013 and ensures protections against layoffs, and offers health benefits commensurate with other state bargaining units. The contract provides for a 2% general salary increase in both 2014 and 2015, 9 days of deficit reduction leave, and adjustments to the health insurance premium.

The agreement follows the pattern of contracts negotiated over the past year and includes:

> A zero percent wage increases for 2011-2013; a 2% increase in both 2014 and 2015.

> The agreement includes 3% and 4% wage increases for 2009-2011; same pattern as other units that have completed negotiations for a new agreement. These increases were previously reserved for in the state financial plan.

> A $1,000 retention bonus paid out $775 in the third year and $225 in the fourth year.

> Deficit Reduction Leave (DRL) totaling nine days, saving $2.3 million. The total deduction for the days comes from the "retro pay for 2009-11."

> Employees will be repaid the value of 4 DRL days in equal installments starting at the end of the contract term.

> Retroactive payments that are scheduled to be paid in one payment this fiscal year.

· A six percent increase for health insurance premiums, making the employee share 16% for individuals and 31% for family premiums.

> A health plan opt-out so officers can opt-out through a spouse/partner to a non-State health plan.

> Members will receive broad layoff protection. However, workforce reductions due to management decisions to close or restructure facilities authorized by legislation, SAGE recommendations or material or unanticipated changes in the state's fiscal circumstances are not covered by this limitation.