§ 396. Employer not liable for payment of benefits. Neither the state, nor state university, nor any electing employer or its local sponsor shall be a party to any contract purchased in whole or in part with contributions made under the optional retirement program established and administered pursuant to this article. No retirement, death, or other benefits shall be payable by the state, or by state university, or by any electing employer or its local sponsor under such optional retirement program. Such benefits shall be paid to electing employees or their beneficiaries by the designated insurer or insurers in accordance with the terms of their contracts.

Terms Used In N.Y. Education Law 396

  • Contract: A legal written agreement that becomes binding when signed.
  • electing employer: means a community college which elects to offer the optional retirement program as herein provided. See N.Y. Education Law 390
  • insurer: shall mean a life insurance corporation, or other corporation subject to department of financial services supervision. See N.Y. Education Law 390
  • local sponsor: means any city, county, intermediate school district, or school district approved by the board, sponsoring or participating in the establishment or operation of a community college. See N.Y. Education Law 390
  • optional retirement program: means the retirement program established pursuant to this article. See N.Y. Education Law 390
  • state university: means the state university of New York and the term "community college" means a college established and operated under article one hundred twenty-six of this chapter. See N.Y. Education Law 390
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