senate Bill S2592

Amended

Limits the amount of employer contributions to the state retirement system

download pdf

Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
view actions

actions

  • 22 / Jan / 2013
    • REFERRED TO CIVIL SERVICE AND PENSIONS
  • 07 / May / 2013
    • AMEND AND RECOMMIT TO CIVIL SERVICE AND PENSIONS
  • 07 / May / 2013
    • PRINT NUMBER 2592A
  • 08 / Jan / 2014
    • REFERRED TO CIVIL SERVICE AND PENSIONS
  • 04 / Mar / 2014
    • AMEND AND RECOMMIT TO CIVIL SERVICE AND PENSIONS
  • 04 / Mar / 2014
    • PRINT NUMBER 2592B

Summary

Limits the amount of employer contributions to the state retirement system; authorizes an annual increase in employer contribution of the lesser of two percent or an inflation factor.

do you support this bill?

Bill Details

Versions:
S2592
S2592A
S2592B
Legislative Cycle:
2013-2014
Current Committee:
Senate Civil Service And Pensions
Law Section:
Retirement and Social Security Law
Laws Affected:
Amd §§17 & 317, R & SS L; amd §521, Ed L
Versions Introduced in 2011-2012 Legislative Cycle:
A8505

Sponsor Memo

BILL NUMBER:S2592

TITLE OF BILL: An act to amend the retirement and social security law
and the education law, in relation to imposing a cap on the amount of
contributions paid by employers

PURPOSE: OF THE BILL: To limit the growth of pension expenditures by
local governments and school districts (outside New York City) to a
maximum of 2% or the consumer price index, whichever is less. This bill
is designed to assist local governments and school districts stabilize
their budgets.

SUMMARY OF PROVISIONS: This bill amends retirement and social security
law sections 17 and 317 and education law section 521 to:

1. limit the increases that public employers (outside New York City)
shall be required to pay to the retirement system to the lesser of 2%
more than the prior year or the inflation factor;

2. define inflation factor on the basis of the national consumer price
index;

3. require that the sum representing the difference between the maximum
required and the amount computed by the comptroller to be due from a
public employer under existing law be appropriated to the retirement
system out of the states general fund.

EXISTING LAW:

JUSTIFICATION: Significant stock market fluctuations, the downturn in
the economy and increases in the number of municipal retirees has
resulted in a strong upward pressure on municipal and school district
contributions to the state retirement system required by the comp-
troller. Double-digit increases in required pension contributions have
severally impacted local and school district budgets diverting monies
needed for day-to-day operations and causing significant property tax
increases. This legislation would level off the pension contribution
increases and relieve local real property taxpayers of having to face
steep property tax increases.

PRIOR LEGISLATIVE HISTORY: 2011-12; A.8505 Abinanti: referred to
governmental employees

FISCAL IMPLICATIONS: This proposal could save local governments and
school districts millions of dollars annually.

LOCAL FISCAL IMPLICATIONS: To be determined

EFFECTIVE DATE: This act shall take effect immediately and apply to
public employer contributions after January 1, 2014.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2592

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 22, 2013
                               ___________

Introduced  by  Sen. LATIMER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Civil Service and Pensions

AN ACT to amend the retirement and social security law and the education
  law, in relation to imposing a cap on the amount of contributions paid
  by employers

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.   Section 17 of the retirement and social security law, as
amended by chapter 33 of the laws of 1986, subdivision a as  amended  by
chapter  62 of the laws of 1989, subdivision c as amended by chapter 260
of the laws of 2004, is amended to read as follows:
  S 17. Annual appropriation by participating employers. a. On or before
the fifteenth day of November, nineteen hundred eighty-nine and of  each
succeeding  calendar  year,  the  comptroller shall determine the amount
which each participating employer is required to pay to  the  retirement
system  to  discharge its obligations thereto for the fiscal year of the
retirement system which ends on March thirty-first of  nineteen  hundred
ninety  and of each succeeding calendar year on account of its employees
who are members of this system. The  comptroller  shall  submit  to  the
fiscal  officer of each such employer a statement of the amount so paya-
ble.
  This amount shall consist of the amount deemed  necessary  to  provide
for payment in full of (i) all estimated obligations of each participat-
ing  employer  for the current fiscal year of the retirement systems and
(ii) any additional obligation, plus interest on such amount, for fiscal
years preceding the current fiscal year. SUCH AMOUNT SHALL, HOWEVER,  BE
SUBJECT TO THE LIMITATION SET FORTH IN SUBDIVISION F OF THIS SECTION. If
as  a  result of the amount determined to be paid for any fiscal year, a
participating employer overpaid its actual obligation to the  retirement
system for that year, the amount to be determined by the comptroller for
the  next  succeeding November fifteenth shall reflect the amount of the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03647-01-3

S. 2592                             2

overpayment, plus interest as defined in section sixteen of this article
on such amount, as a reduction in the amount otherwise  required  to  be
paid by such participating employer.
  b. Each participating employer annually shall appropriate a sum suffi-
cient  to pay such amount, SUBJECT TO THE LIMITATION SET FORTH IN SUBDI-
VISION F OF THIS SECTION.  In the event the comptroller's  statement  is
not  received  before annual appropriations are made by such employer, a
sum estimated by the comptroller to be sufficient for such purpose shall
be included with such annual appropriations.
  c. Payment of the amount specified  in  the  comptroller's  statement,
SUBJECT  TO  THE  LIMITATION SET FORTH IN SUBDIVISION F OF THIS SECTION,
shall be made by a  participating  employer  within  seventy-eight  days
after  the receipt of such statement; provided, however, that in no case
shall any participating employer be required to make this payment before
February first of the calendar year next succeeding the calendar year in
which such statement is  received.  The  comptroller  is  authorized  to
provide for and accept pre-payment.
  d.  If  payment  of the [full amount] EMPLOYER'S PORTION of such obli-
gations is not made by the  date  required  by  subdivision  c  of  this
section, interest at a rate determined in accordance with the provisions
of  section  sixteen  of  this article shall commence to run against the
unpaid balance thereof on the first day after the date required by  said
subdivision c.
  e.  The  comptroller shall have full power and authority to bring suit
in the supreme court against any participating employer to  recover  any
sum  FOR WHICH THE EMPLOYER IS RESPONSIBLE, payment of which is not made
as herein required. While any such sum OWED BY THE EMPLOYER shall remain
due and unpaid [he] THE COMPTROLLER may refuse to audit  any  claim  for
funds due to such employer from the state.
  F.  (1) OF THE AMOUNT DETERMINED BY THE COMPTROLLER PURSUANT TO SUBDI-
VISION A OF THIS SECTION, AN EMPLOYER SHALL NOT BE REQUIRED TO PAY  MORE
THAN  THE  PRIOR  YEAR'S  EMPLOYER  CONTRIBUTION PLUS THE LESSER OF: TWO
PERCENT OR THE INFLATION FACTOR.
  (2) ANY DIFFERENCE BETWEEN THE  AMOUNT  COMPUTED  BY  THE  COMPTROLLER
PURSUANT  TO  SUBDIVISION  A  OF  THIS  SECTION  AND  THE MAXIMUM AMOUNT
REQUIRED TO BE PAID BY THE EMPLOYER PURSUANT TO PARAGRAPH  ONE  OF  THIS
SUBDIVISION SHALL BE APPROPRIATED TO THE RETIREMENT SYSTEM OUT OF MONEYS
IN THE GENERAL FUND OF THE STATE.
  (3) FOR THE PURPOSES OF THIS SUBDIVISION, "INFLATION FACTOR" MEANS THE
QUOTIENT  OF:  (I)  THE  AVERAGE  OF THE NATIONAL CONSUMER PRICE INDEXES
DETERMINED BY THE UNITED STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH
PERIOD ENDING SIX MONTHS PRIOR TO THE START OF THE  COMING  FISCAL  YEAR
MINUS  THE  AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES DETERMINED BY
THE UNITED STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING
SIX MONTHS PRIOR TO THE START OF THE PRIOR FISCAL YEAR, DIVIDED BY: (II)
THE AVERAGE OF THE NATIONAL CONSUMER PRICE  INDEXES  DETERMINED  BY  THE
UNITED STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX
MONTHS  PRIOR  TO  THE  START  OF THE PRIOR FISCAL YEAR, WITH THE RESULT
EXPRESSED AS A DECIMAL TO FOUR PLACES.
  (4) FOR PURPOSES OF THIS SUBDIVISION, THE BASE YEAR  FOR  THE  INITIAL
CALCULATION  OF LIMITED EMPLOYER CONTRIBUTIONS PURSUANT TO PARAGRAPH ONE
OF THIS SUBDIVISION SHALL BE THE AMOUNT PAID BY THE EMPLOYER IN THE YEAR
TWO THOUSAND THIRTEEN. THE EMPLOYER PARTICIPATION CAP  IMPOSED  BY  THIS
SUBDIVISION  SHALL COMMENCE WITH EMPLOYER CONTRIBUTIONS MADE IN THE YEAR
TWO THOUSAND FOURTEEN.

S. 2592                             3

  (5) THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY IN CITIES  WITH
A POPULATION OF ONE MILLION OR MORE.
  S  2.    Section  317  of  the  retirement and social security law, as
amended by chapter 33 of the laws of 1986, subdivision a as  amended  by
chapter  62 of the laws of 1989, and subdivision c as amended by chapter
260 of the laws of 2004, is amended to read as follows:
  S 317. Annual appropriation  by  participating  employers.  a.  On  or
before  the  fifteenth day of November, nineteen hundred eighty-nine and
of each succeeding year, the  comptroller  shall  determine  the  amount
which  each  participating employer is required to pay to the police and
fire retirement system to discharge  its  obligations  thereto  for  the
fiscal year of the retirement system which ends on March thirty-first of
nineteen  hundred ninety and of each succeeding calendar year on account
of its employees who are members of this system. The  comptroller  shall
submit to the fiscal officer of each of such employer a statement of the
amount so payable.
  This  amount  shall  consist of the amount deemed necessary to provide
for payment in full of (i) all estimated obligations of each participat-
ing employer for the current fiscal year of the retirement  systems  and
(ii) any additional obligation, plus interest on such amount, for fiscal
years  preceding the current fiscal year. SUCH AMOUNT SHALL, HOWEVER, BE
SUBJECT TO THE LIMITATION SET FORTH IN SUBDIVISION F OF THIS SECTION. If
as a result of the amount determined to be paid for any fiscal  year,  a
participating  employer overpaid its actual obligation to the retirement
system for that year, the amount to be determined by the comptroller for
the next succeeding November fifteenth shall reflect the amount  of  the
overpayment,  plus  interest as defined in section three hundred sixteen
of this article on such amount, as a reduction in the  amount  otherwise
required to be paid by such participating employer.
  b. Each participating employer annually shall appropriate a sum suffi-
cient  to pay such amount, SUBJECT TO THE LIMITATION SET FORTH IN SUBDI-
VISION F OF THIS SECTION.  In the event the comptroller's  statement  is
not  received  before annual appropriations are made by such employer, a
sum estimated by the comptroller to be sufficient for such purpose shall
be included with such annual appropriations.
  c. Payment of the amount specified  in  the  comptroller's  statement,
SUBJECT  TO  THE  LIMITATION SET FORTH IN SUBDIVISION F OF THIS SECTION,
shall be made by a  participating  employer  within  seventy-eight  days
after  the receipt of such statement; provided, however, that in no case
shall any participating employer be required to make this payment before
February first of the calendar year next succeeding the calendar year in
which such statement is  received.  The  comptroller  is  authorized  to
provide for and accept pre-payment.
  d.  If  payment  of the [full amount] EMPLOYER'S PORTION of such obli-
gations is not made by the  date  required  by  subdivision  c  of  this
section, interest at a rate determined in accordance with the provisions
of  section  three hundred sixteen of this article shall commence to run
against the unpaid balance thereof on  the  first  day  after  the  date
required by said subdivision c.
  e.  The  comptroller shall have full power and authority to bring suit
in the supreme court against any participating employer to  recover  any
sum  FOR WHICH THE EMPLOYER IS RESPONSIBLE, payment of which is not made
as herein required. While any such sum OWED BY THE EMPLOYER shall remain
due and unpaid [he] THE COMPTROLLER may refuse to audit  any  claim  for
funds due to such employer from the state.

S. 2592                             4

  F.  (1) OF THE AMOUNT DETERMINED BY THE COMPTROLLER PURSUANT TO SUBDI-
VISION A OF THIS SECTION, AN EMPLOYER SHALL NOT BE REQUIRED TO PAY  MORE
THAN  THE  PRIOR  YEAR'S  EMPLOYER  CONTRIBUTION PLUS THE LESSER OF: TWO
PERCENT OR THE INFLATION FACTOR.
  (2)  ANY  DIFFERENCE  BETWEEN  THE  AMOUNT COMPUTED BY THE COMPTROLLER
PURSUANT TO SUBDIVISION  A  OF  THIS  SECTION  AND  THE  MAXIMUM  AMOUNT
REQUIRED  TO  BE  PAID BY THE EMPLOYER PURSUANT TO PARAGRAPH ONE OF THIS
SUBDIVISION SHALL BE APPROPRIATED TO THE RETIREMENT SYSTEM OUT OF MONEYS
IN THE GENERAL FUND OF THE STATE.
  (3) FOR THE PURPOSES OF THIS SUBDIVISION, "INFLATION FACTOR" MEANS THE
QUOTIENT OF: (I) THE AVERAGE OF  THE  NATIONAL  CONSUMER  PRICE  INDEXES
DETERMINED BY THE UNITED STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH
PERIOD  ENDING  SIX  MONTHS PRIOR TO THE START OF THE COMING FISCAL YEAR
MINUS THE AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES  DETERMINED  BY
THE UNITED STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING
SIX MONTHS PRIOR TO THE START OF THE PRIOR FISCAL YEAR, DIVIDED BY: (II)
THE  AVERAGE  OF  THE  NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE
UNITED STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX
MONTHS PRIOR TO THE START OF THE PRIOR  FISCAL  YEAR,  WITH  THE  RESULT
EXPRESSED AS A DECIMAL TO FOUR PLACES.
  (4)  FOR  PURPOSES  OF THIS SUBDIVISION, THE BASE YEAR FOR THE INITIAL
CALCULATION OF LIMITED EMPLOYER CONTRIBUTIONS PURSUANT TO PARAGRAPH  ONE
OF THIS SUBDIVISION SHALL BE THE AMOUNT PAID BY THE EMPLOYER IN THE YEAR
TWO  THOUSAND  THIRTEEN.  THE EMPLOYER PARTICIPATION CAP IMPOSED BY THIS
SUBDIVISION SHALL COMMENCE WITH EMPLOYER CONTRIBUTIONS MADE IN THE  YEAR
TWO THOUSAND FOURTEEN.
  (5)  THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY IN CITIES WITH
A POPULATION OF ONE MILLION OR MORE.
  S 3. Subdivision 2 of section 521 of the education law, paragraph a as
amended by chapter 553 of the laws of 1997, paragraph b  as  amended  by
chapter  871 of the laws of 1963, paragraphs f and g as added by chapter
538 of the laws of 1984, paragraph h as amended by chapter  830  of  the
laws  of  1992,  paragraphs i, j, k, l, and m as added by chapter 175 of
the laws of 1990, and paragraph n as added by chapter 482 of the laws of
1996, is amended and a new subdivision 3 is added to read as follows:
  2. The  collection  of  employers'  contributions  shall  be  made  as
follows:
  a.  Upon  the  basis  of  each  actuarial  determination and appraisal
provided herein, the retirement board shall annually prepare and certify
to the commissioner [of education]  a  statement  of  the  total  amount
necessary to be paid by all employers for the ensuing fiscal year to the
pension accumulation and expense funds as provided under subdivision two
of  section  five hundred seventeen and under section five hundred nine-
teen of this article. Upon the basis of the  rate  of  contribution  for
supplemental   retirement  allowances,  determined  in  accordance  with
section five hundred thirty-two of this article,  the  retirement  board
shall  certify  to  the  commissioner  [of education] a statement of the
total amount necessary to be paid  by  all  employers  for  the  ensuing
fiscal year to the supplemental retirement allowance fund.  Said certif-
ication  shall  include  interest on amounts necessary to repay advances
made to the supplemental retirement allowance fund pursuant to  subdivi-
sion  f of section five hundred thirty-two of this article computed from
the date of such advances at the  rate  determined  in  accordance  with
paragraph f of this subdivision.
  b.  The  commissioner  [of education] shall include in the certificate
which he files with the state comptroller showing the  amount  of  state

S. 2592                             5

funds  apportioned  to  the  school districts within each county for the
support of common schools, a statement showing the amount to be contrib-
uted by each employer in each of such counties as  required  under  this
article.
  The amount to be contributed by each employer except those who operate
local  district  pension  systems, shall be such percentage of the total
compensation or salaries of all teachers in his employ who  are  members
of the retirement system as the aggregate amount of the normal and defi-
ciency  contributions  for the year shall bear to the total compensation
or salaries paid by  all  employers,  except  those  who  operate  local
district pension systems, to all teachers who are members of the retire-
ment  system;  PROVIDED,  HOWEVER, THAT THE AMOUNT ACTUALLY PAID BY SUCH
EMPLOYER SHALL BE SUBJECT TO  THE  CONTRIBUTION  LIMITS  ESTABLISHED  IN
SUBDIVISION THREE OF THIS SECTION.
  c.  The  comptroller  shall issue his warrant to the custodian of such
fund directing such custodian to credit to the pension accumulation fund
and expense fund respectively, from the appropriation for the support of
common schools the amounts required to be made as contributions to  such
funds  by  the employers as shown by the certificate of the commissioner
[of education] filed with him as directed in paragraph b of this  subdi-
vision,  BUT  SUBJECT  TO THE CONTRIBUTION LIMIT ESTABLISHED PURSUANT TO
SUBDIVISION THREE OF THIS SECTION.
  d. The comptroller, in  issuing  his  warrant  to  the  custodian  for
payment  to  each  county treasurer of that portion of the moneys appor-
tioned for the support of common  schools,  shall  deduct  therefrom  an
amount  equal  to  the amount required to be contributed by employers of
such county, as shown by the certificate of the commissioner [of  educa-
tion]  of this state filed with the comptroller as required by paragraph
b of this subdivision, BUT SUBJECT TO THE CONTRIBUTION LIMIT ESTABLISHED
PURSUANT TO SUBDIVISION THREE OF THIS SECTION.
  e. In order to  meet  the  financial  requirements  of  this  article,
employers  who  obtain  funds directly by taxation are hereby authorized
and directed to levy annually such additional taxes as are  required  to
provide the [funds deducted from the amounts apportioned to such employ-
ers  from  the  appropriation of the state for the support of the common
schools] EMPLOYER'S CONTRIBUTION AMOUNT AS DETERMINED PURSUANT TO SUBDI-
VISION THREE OF THIS SECTION.
  f. Employers whose payments from the moneys apportioned from the state
for the support of common schools are insufficient to pay the EMPLOYER'S
PORTION OF THE amount due and owing the system, or who  do  not  receive
such  payments,  shall  pay  the system each year the amount of contrib-
utions due and owing from the  employer,  SUBJECT  TO  THE  CONTRIBUTION
LIMIT  ESTABLISHED PURSUANT TO SUBDIVISION THREE OF THIS SECTION, pursu-
ant to this article within thirty days from the date a bill is mailed by
the system. Interest, at a rate equal to the average  yield  payable  on
fifty-two week United States treasury bills on June thirtieth immediate-
ly  preceding  the day the bill is mailed by the system, shall accrue on
the EMPLOYER'S PORTION OF THE outstanding amount due and owing  commenc-
ing with the thirty-first day after the bill is mailed.
  g. Whenever the system determines the contributions made by an employ-
er  are  less  than  the percentage of total compensation or salaries of
members of the system in the employ of such  employer,  as  required  by
this  article, such employer shall pay the system such deficiency within
thirty days from the date a bill is mailed by the system, PROVIDED  SUCH
DEFICIENCY AMOUNT DOES NOT CAUSE THE EMPLOYER TO PAY MORE THAN THE MAXI-
MUM  REQUIRED  CONTRIBUTION  AMOUNT  CALCULATED  PURSUANT TO SUBDIVISION

S. 2592                             6

THREE OF THIS SECTION. Interest, at a rate equal to  the  average  yield
payable on fifty-two week United States treasury bills on June thirtieth
immediately  preceding  the day before the bill is mailed by the system,
shall accrue on the EMPLOYER'S PORTION OF THE outstanding amount due and
owing commencing with the thirty-first day after the bill is mailed.
  h.  Notwithstanding  any  provision of law to the contrary, commencing
with the payments made in the fiscal year beginning July first, nineteen
hundred ninety, and each fiscal year thereafter, the  employer  contrib-
utions  due and payable as determined pursuant to the provisions of this
article and the employee contributions due and payable pursuant to  this
article  and  articles fourteen and fifteen of the retirement and social
security law, on account of compensation paid in the fiscal  year  imme-
diately  preceding,  and those employer contributions due and payable in
each fiscal year pursuant to chapter six hundred sixty-five of the  laws
of  nineteen  hundred eighty-four shall be made to the retirement system
and collected in the manner set forth in this section each  fiscal  year
in  three  payments, each equal to thirty-three and one-third percent of
the total amount due for such fiscal year. Such payments shall  be  paid
on  September  fifteenth,  October  fifteenth, and November fifteenth of
each fiscal year. If a participating employer underpaid  its  obligation
to the retirement system, such underpayment as determined by the retire-
ment  system  shall  be  deducted  from  the amounts apportioned to such
employer from the appropriation of the state  for  the  support  of  the
common schools due and payable the next April fifteenth. Employers whose
payments  from such appropriation are insufficient to pay the amount due
and owing the system, or who do not  receive  such  payments,  shall  be
billed  by the system for such underpayment and shall pay the system the
amount due within thirty days from the date a  bill  is  mailed  by  the
system.  The amount of any employer overpayment of its obligation to the
retirement system, as determined by such system shall be a credit to the
employer and shall reduce by an equal amount thereof the initial payment
to be made by such employer  to  such  system  on  the  next  succeeding
September fifteenth.
  i.  Notwithstanding any provision of law to the contrary, the employer
and employee contributions due  and  payable  in  the  nineteen  hundred
eighty-nine--ninety  fiscal  year on account of compensation paid in the
nineteen hundred eighty-eight--eighty-nine fiscal year which  were  paid
prior  to  April  first, nineteen hundred ninety shall be deemed (to the
extent such amount is sufficient) to have consisted of all the  employee
contributions  due  and  payable  pursuant  to this article and articles
fourteen and fifteen of the retirement and social security  law  in  the
nineteen  hundred  eighty-nine--ninety  fiscal  year  and those employer
contributions  due and payable in such fiscal year pursuant  to  chapter
six  hundred sixty-five of the laws of nineteen hundred eighty-four; and
the remaining employer contributions so paid shall be applied evenly  to
the  payments  due  and payable on September fifteenth, nineteen hundred
ninety,  October  fifteenth,  nineteen  hundred  ninety   and   November
fifteenth,  nineteen  hundred  ninety  and  the  employer  contributions
amounting to eight hundred seventy-three million  seven  hundred  eleven
thousand  six  hundred  fifteen  dollars ($873,711,615), due and payable
pursuant to the provisions of  this  section  in  the  nineteen  hundred
eighty-nine--ninety fiscal year on account of compensation paid in nine-
teen hundred eighty-eight--eighty-nine fiscal year, except those employ-
er contributions due and payable in such fiscal year pursuant to chapter
six  hundred  sixty-five  of  the  laws of nineteen hundred eighty-four,
shall be deferred and payment shall be made to the retirement system  in

S. 2592                             7

fifteen equal annual payments of ninety-eight million five hundred thir-
ty-seven  thousand  five  hundred seven dollars ($98,537,507) on October
fifteenth, commencing on October  fifteenth,  nineteen  hundred  ninety.
Such  payments  are  calculated at an interest rate of eight percent per
annum. Provided, however, the retirement board is directed to permit the
pre-payment of the amounts outstanding under this paragraph. The retire-
ment board shall: (1) On or before  September  first,  nineteen  hundred
ninety,  in addition to the amount due for the current fiscal year bill-
ing and for the payment of the amortized annual installment, furnish the
total amount due and be authorized to accept pre-payment in full of said
amount by October fifteenth, nineteen hundred ninety. (2) On  or  before
each  September  first thereafter, in addition to the amount due for the
current fiscal year billing and for the payment of the annual  amortized
installment,  furnish  the total amount still outstanding and be author-
ized to accept the pre-payment of any portion of the  balance  remaining
to be paid by October fifteenth of that year.
  j. Prior to June first, nineteen hundred ninety, the valuation rate of
interest  adopted by the retirement board on April twenty-seventh, nine-
teen hundred eighty-nine, may be retroactively revised to eight  percent
by the retirement board, as recommended by the actuary, as if adopted at
the  April  twenty-seventh,  nineteen hundred eighty-nine board meeting,
and the employer contribution rate, adopted by the retirement  board  at
the  April  twenty-seventh,  nineteen hundred eighty-nine board meeting,
revised by the retirement board at  the  July  twenty-seventh,  nineteen
hundred  eighty-nine  board meeting, may be retroactively amended by the
retirement board as if adopted  at  the  July  twenty-seventh,  nineteen
hundred  eighty-nine  board meeting and applied to contributions paid in
the nineteen hundred ninety--ninety-one fiscal year. Notwithstanding any
provision of law to the contrary, the actions of  the  retirement  board
pursuant to the provisions of this paragraph shall be deemed reasonable,
prudent  and  proper.  No  member  of  the retirement board, officer, or
employee of the New York state teachers' retirement system  shall  incur
or  suffer any liability whatsoever by reason of any actions pursuant to
this paragraph, and such system shall save harmless  and  indemnify  all
members  of the retirement board, its officers and employees from finan-
cial loss arising out of any claim, demand, suit, action or judgment  as
a  result  of the actions taken pursuant to this paragraph provided that
such person shall, within five days after the date on which he is served
with any summons, complaint, process, notice, demand, claim or pleading,
deliver the original or a true copy thereof to the legal advisor of such
system. Upon such delivery, the legal advisor of such system may  assume
control  of  the  representation  of such person in connection with such
claim, demand, suit, action or proceeding. Such person  shall  cooperate
fully  with  the  legal advisor of the system or any other person desig-
nated to assume such  defense  in  respect  of  such  representation  or
defense.
  k.  The  retirement  board is authorized to adopt procedures and/or to
promulgate rules and regulations as it deems  necessary  to  adjust  and
reconcile any payments from employers to actual amounts due whether such
payments  were  received  prior  or  subsequent to the effective date of
[the] chapter ONE HUNDRED SEVENTY-FIVE of the laws of  nineteen  hundred
ninety [which added this paragraph to this section].
  l.  The  provisions  of  paragraphs  h and i of this subdivision shall
constitute a contract and the rights of the  New  York  state  teachers'
retirement  system thereunder shall not be impaired in any way whatsoev-
er.

S. 2592                             8

  m. In addition to any other payment or collection  procedure  provided
by  this article, if the amounts credited from the appropriation for the
support of common schools are insufficient to fully cover the amounts to
be contributed by the employers, SUBJECT TO THE EMPLOYER'S  CONTRIBUTION
LIMIT  ESTABLISHED  PURSUANT  TO  SUBDIVISION THREE OF THIS SECTION, the
retirement board is authorized to  certify  the  unpaid  amount  OF  THE
EMPLOYER'S  CONTRIBUTION  to  the state comptroller, and the state comp-
troller shall, to the extent not otherwise prohibited by  law,  withhold
such amount from any succeeding payment from any other form of state aid
provided  to  the  employer.  If  any  employer fails to pay the amounts
required to be contributed pursuant  to  this  section,  the  retirement
system  shall be entitled to reasonable attorney fees and other expenses
incurred to collect such amounts due and owing. Fees shall be determined
pursuant to prevailing market rates for the  kind  and  quality  of  the
services furnished.
  n.  Notwithstanding  any  other  provision of law to the contrary, the
board of education or trustees of a school district which is  a  partic-
ipating  employer,  which  has  elected to make payments of the employer
contributions due and payable to the retirement system pursuant to para-
graph i of this subdivision in amortized annual installments, and  which
has  determined to make pre-payment of the total amount of such contrib-
utions outstanding in accordance with said paragraph i, may adopt a bond
resolution authorizing the refinancing of such debt by the  issuance  of
bonds  in  the amount of such pre-payment without conducting a vote on a
tax to be collected in installments, provided that such refinancing will
result in savings to the school district,  as  certified  by  the  state
comptroller,  and provided further that the issuance of such obligations
otherwise complies with the requirements of the local  finance  law  and
this chapter.
  3.  A.  OF  THE  AMOUNT REQUIRED TO BE CONTRIBUTED BY EMPLOYERS OF THE
COUNTY AS STATED IN SUBDIVISION TWO OF THIS SECTION, AN  EMPLOYER  SHALL
NOT  BE  REQUIRED  TO  CONTRIBUTE  MORE  THAN  THE PRIOR YEAR'S EMPLOYER
CONTRIBUTION PLUS THE LESSER OF:  TWO PERCENT OR THE INFLATION FACTOR.
  B. ANY DIFFERENCE BETWEEN THE AMOUNT CONTAINED IN THE  WARRANT  ISSUED
BY  THE  COMPTROLLER PURSUANT TO SUBDIVISION TWO OF THIS SECTION AND THE
MAXIMUM AMOUNT REQUIRED TO BE PAID BY  THE  EMPLOYER  PURSUANT  TO  THIS
SUBDIVISION SHALL BE APPROPRIATED TO THE RETIREMENT SYSTEM OUT OF MONEYS
IN THE GENERAL FUND OF THE STATE.
  C.  FOR THE PURPOSES OF THIS SUBDIVISION, "INFLATION FACTOR" MEANS THE
QUOTIENT OF: (I) THE AVERAGE OF  THE  NATIONAL  CONSUMER  PRICE  INDEXES
DETERMINED BY THE UNITED STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH
PERIOD  ENDING  SIX  MONTHS PRIOR TO THE START OF THE COMING FISCAL YEAR
MINUS THE AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES  DETERMINED  BY
THE UNITED STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING
SIX MONTHS PRIOR TO THE START OF THE PRIOR FISCAL YEAR, DIVIDED BY: (II)
THE  AVERAGE  OF  THE  NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE
UNITED STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX
MONTHS PRIOR TO THE START OF THE PRIOR  FISCAL  YEAR,  WITH  THE  RESULT
EXPRESSED AS A DECIMAL TO FOUR PLACES.
  D.  FOR  PURPOSES  OF  THIS SUBDIVISION, THE BASE YEAR FOR THE INITIAL
CALCULATION OF LIMITED EMPLOYER CONTRIBUTIONS PURSUANT TO PARAGRAPH A OF
THIS SUBDIVISION SHALL BE THE AMOUNT PAID BY THE EMPLOYER  IN  THE  YEAR
TWO  THOUSAND  THIRTEEN.  THE  EMPLOYER CONTRIBUTION CAP IMPOSED BY THIS
SUBDIVISION SHALL COMMENCE WITH EMPLOYER CONTRIBUTIONS MADE IN THE  YEAR
TWO THOUSAND FOURTEEN.

S. 2592                             9

  E. THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY IN CITIES WITH A
POPULATION OF ONE MILLION OR MORE.
  S 4. This act shall take effect immediately and shall apply to employ-
er contributions made commencing January 1, 2014.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.