§ 1210-a. Flexible benefits program. 1. For purposes of this section,
the following terms shall have the following meanings:

a. "Code" shall mean the United States internal revenue code of
nineteen hundred eighty-six, as amended, and regulations promulgated
thereunder.

b. "Authority" shall mean (1) the New York city transit authority, (2)
the Manhattan and Bronx surface transit operating authority, or (3) the
Staten Island rapid transit operating authority.

c. "Employee" shall mean any officer or employee of any of the
entities set forth in paragraph c of this subdivision who is not
eligible to receive benefits from the New York city employee benefits
program.

For purposes of this section, an independent contractor shall not be
considered an employee.

d. "Flexible benefits program" shall mean the program established
pursuant to this section, qualifying as a cafeteria plan as defined in
section one hundred twenty-five of the code or any successor section
thereto providing similar benefits, and provided as a part of an
employee benefits program administered by the authority.

e. "Program administrator" shall mean that agent, as determined by the
authority, responsible for the maintenance and management of the
flexible benefits program as authorized in subdivision two of this
section.

2. The authority is authorized to establish and implement a flexible
benefits program for its employees who are not eligible to receive
benefits from the New York city employee benefits program, consistent
with applicable provisions of the code. It may enter into agreements
with persons or entities to act as program administrators of the
flexible benefits program. It shall establish regulations for the
appropriate administration of such flexible benefits program.

3. At the request of an employee, the chief fiscal officer of the
authority, or the officer responsible for the administration of the
authority's payroll, shall, by payroll deduction, adjust the payment of
the compensation of such employee as provided in a written statement by
the employee in connection with the establishment and maintenance of the
flexible benefits program as authorized by subdivision two of this
section, and shall transfer the amount so adjusted to the authorized
program administrator.

4. Moneys held for employees in any accounts established pursuant to
the flexible benefits program, as authorized in subdivision two of this
section, shall be held by the program administrator as agent for the
participating employee, shall be accounted for separately and shall
remain the property of the authority to the extent required by the code.
Notwithstanding any law to the contrary, moneys may be paid out of such
accounts without any appropriation by law. Any unexpended balances in
such accounts at the end of a plan year as that term is defined by the
United States internal revenue service shall be returned to the control
of the authority to the extent required by the code.

5. To the extent permitted by the code, any salary deduction or
deferral to an employee under the flexible benefits program established
pursuant to this section shall be considered part of such employee's
annual compensation for the purpose of computing pension contributions
and retirement benefits by any retirement system or plan to which the
authority contributes on behalf of said employee. However, this
subdivision shall in no way be construed to supersede the provisions of
sections four hundred thirty-one, five hundred twelve and six hundred
eight of the retirement and social security law or any other similar
provision of law which limits the salary base for computing retirement
benefits payable by a public retirement system.