S T A T E O F N E W Y O R K
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S. 5418--A A. 8059--A
2009-2010 Regular Sessions
S E N A T E - A S S E M B L Y
May 1, 2009
___________
IN SENATE -- Introduced by Sen. SAVINO -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Civil Service
and Pensions -- committee discharged, bill amended, ordered reprinted
as amended and recommitted to said committee
IN ASSEMBLY -- Introduced by M. of A. ABBATE -- read once and referred
to the Committee on Governmental Employees -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend the retirement and social security law, in relation to
the preparation of legislative fiscal notes and providing for the
repeal of such provisions upon expiration thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative findings. The legislature finds that it is
critically important to ensure that all fiscal notes required pursuant
to section 50 of the legislative law reflect the most accurate estimate
of the total cost of any proposed change to a retirement system or plan
of the state of New York or any of its political subdivisions. In order
to accomplish this public purpose, the legislature hereby finds that all
fiscal notes required pursuant to section 50 of the legislative law
should be prepared and submitted by the chief actuary of the affected
retirement system or plan, if applicable, in as timely a manner as prac-
ticable. The legislature further finds that all fiscal notes generated
pursuant to such section 50 shall represent the best faith estimate of
the chief actuary of the affected retirement system or plan, if applica-
ble, and that such estimate shall be generated in accordance with the
generally-accepted actuarial standards and practices in effect at the
time for such retirement system or plan.
S 2. The retirement and social security law is amended by adding two
new sections 809 and 810 to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11714-02-9
S. 5418--A 2 A. 8059--A
S 809. PREPARATION OF LEGISLATIVE FISCAL NOTES. A. 1. NOTWITHSTANDING
ANY OTHER PROVISION OF ANY GENERAL, SPECIAL, OR LOCAL LAW, CHARTER,
ADMINISTRATIVE CODE OR RULE OR REGULATION TO THE CONTRARY, THE ACTUARY
OF EACH PUBLIC RETIREMENT SYSTEM, AS DEFINED IN SUBDIVISION A OF SECTION
EIGHT HUNDRED OF THIS ARTICLE, IS RESPONSIBLE FOR FISCAL NOTES ON LEGIS-
LATION AFFECTING THE PUBLIC RETIREMENT SYSTEM FOR WHICH HE OR SHE
PROVIDES ACTUARIAL SERVICES IN ACCORDANCE WITH SECTION FIFTY OF THE
LEGISLATIVE LAW. EACH FISCAL NOTE SHALL BE PREPARED BY APPLYING GENERAL-
LY ACCEPTED ACTUARIAL METHODOLOGIES TO ESTIMATE THE FINANCIAL IMPACT OF
LEGISLATION SUBMITTED FOR ACTUARIAL REVIEW. IN THE EVENT LEGISLATION
CONTAINS PROVISIONS APPLICABLE TO MORE THAN ONE PUBLIC RETIREMENT
SYSTEM, A FISCAL NOTE ASSESSING THE FINANCIAL IMPACT ON EACH SYSTEM
SHALL BE PREPARED.
2. LEGISLATIVE FISCAL NOTES REQUIRED PURSUANT TO SECTION FIFTY OF THE
LEGISLATIVE LAW SHALL BE REQUESTED IN WRITING. SUCH WRITTEN REQUEST
SHALL ACCOMPANY A DRAFT OF THE PROPOSED LEGISLATION AND MEMORANDUM IN
SUPPORT AND SHALL CLEARLY IDENTIFY THE NAME OF THE INDIVIDUAL OR ENTITY
REQUESTING SUCH FISCAL NOTE AND THE DATE THAT SUCH REQUEST WAS MADE.
3. FISCAL NOTES REQUESTED PURSUANT TO PARAGRAPH TWO OF THIS SUBDIVI-
SION SHALL BE PROVIDED TO THE REQUESTING INDIVIDUAL OR ENTITY IN A
REASONABLE AND TIMELY MANNER. UPON COMPLETION OF THE FISCAL NOTE, THE
ACTUARY SHALL NOT CIRCULATE THE FISCAL NOTE PUBLICLY PRIOR TO THE
RECEIPT OF THE FISCAL NOTE BY THE ORIGINAL REQUESTER. ALL FISCAL NOTES
SHALL BE SUBJECT TO ALL FREEDOM OF INFORMATION LAWS IN THE STATE OF NEW
YORK.
B. 1. THE ACTUARY OF THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIRE-
MENT SYSTEM AND THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT
SYSTEM MAY BE RESPONSIBLE FOR PREPARING LEGISLATIVE FISCAL NOTES AS
PROVIDED IN SUBDIVISION A OF THIS SECTION WHICH MAY BE FUNDED THROUGH
THE PORTION OF THE ADMINISTRATIVE BUDGET OF SUCH SYSTEM ATTRIBUTABLE TO
THE POWERS AND DUTIES OF THE ACTUARY AS PROVIDED BY LAW OR OTHERWISE
REQUIRED BY THE COMPTROLLER.
2. THE ACTUARY OF THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM MAY
BE RESPONSIBLE FOR PREPARING LEGISLATIVE FISCAL NOTES AS PROVIDED IN
SUBDIVISION A OF THIS SECTION WHICH MAY BE FUNDED THROUGH THE PORTION OF
THE ADMINISTRATIVE BUDGET OF SUCH SYSTEM ATTRIBUTABLE TO THE POWERS AND
DUTIES OF THE ACTUARY AS PROVIDED BY LAW OR OTHERWISE REQUIRED BY THE
BOARD OF TRUSTEES OF SUCH SYSTEM.
C. THE ACTUARY OF THE FIVE ACTUARIALLY FUNDED RETIREMENT SYSTEMS OF
THE CITY OF NEW YORK SHALL, IN ADDITION TO THE POWERS DELINEATED IN
SUBDIVISION A OF THIS SECTION, FULFILL SUCH POWERS AND DUTIES AS
PROVIDED IN THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, THE EDUCA-
TION LAW AND ALL OTHER APPLICABLE SECTIONS OF LAW, AND PERFORM ALL OTHER
DUTIES AS REQUIRED BY THE BOARDS OF TRUSTEES OF THE FIVE ACTUARIALLY
FUNDED RETIREMENT SYSTEMS IN THE CITY OF NEW YORK.
S 810. ACTUARIAL OVERSIGHT BOARD. A. THERE IS HEREBY ESTABLISHED THE
ACTUARIAL OVERSIGHT BOARD ("BOARD") AS AN INDEPENDENT ENTITY WITHIN THE
GUISE OF THE FIVE PUBLIC RETIREMENT SYSTEMS OF THE CITY OF NEW YORK.
B. THE BOARD SHALL CONSIST OF SEVEN MEMBERS AS FOLLOWS: 1. ONE
APPOINTMENT BY THE BOARD OF TRUSTEES OF THE NEW YORK CITY EMPLOYEES'
RETIREMENT SYSTEM WHO CURRENTLY HOLDS A POSITION THAT IS ELECTED BY A
PORTION OF THE MEMBERSHIP OF SAID RETIREMENT SYSTEM; 2. ONE APPOINTMENT
BY THE BOARD OF TRUSTEES OF THE NEW YORK CITY TEACHERS' RETIREMENT
SYSTEM WHO CURRENTLY HOLDS A POSITION THAT IS ELECTED BY A PORTION OF
THE MEMBERSHIP OF SAID RETIREMENT SYSTEM; 3. ONE APPOINTMENT BY THE
BOARD OF TRUSTEES OF THE NEW YORK CITY BOARD OF EDUCATION RETIREMENT
S. 5418--A 3 A. 8059--A
SYSTEM WHO CURRENTLY HOLDS A POSITION THAT IS ELECTED BY A PORTION OF
THE MEMBERSHIP OF SAID RETIREMENT SYSTEM; 4. ONE APPOINTMENT BY THE
BOARD OF TRUSTEES OF THE NEW YORK CITY POLICE PENSION FUND WHO CURRENTLY
HOLDS A POSITION THAT IS ELECTED BY A PORTION OF THE MEMBERSHIP OF SAID
RETIREMENT SYSTEM; 5. ONE APPOINTMENT BY THE BOARD OF TRUSTEES OF THE
NEW YORK CITY FIRE DEPARTMENT PENSION FUND WHO CURRENTLY HOLDS A POSI-
TION THAT IS ELECTED BY A PORTION OF THE MEMBERSHIP OF SAID RETIREMENT
SYSTEM; 6. THE COMPTROLLER OF THE CITY OF NEW YORK OR HIS OR HER DESIG-
NEE; AND 7. THE MAYOR OF THE CITY OF NEW YORK OR HIS OR HER DESIGNEE.
EACH MEMBER OF THE BOARD SHALL SERVE FOR A TERM OF TWO YEARS. ALL
MEMBERS SHALL CONTINUE IN OFFICE UNTIL THEIR SUCCESSORS HAVE BEEN
APPOINTED. THE MEMBERS SHALL SERVE WITHOUT COMPENSATION FOR THEIR
SERVICES AS MEMBERS, BUT SHALL BE ENTITLED TO REIMBURSEMENT FOR ACTUAL
AND NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR DUTIES. THE
STATE AND CITY OF NEW YORK SHALL HOLD HARMLESS AND INDEMNIFY MEMBERS OF
THE BOARD PURSUANT TO SECTIONS SEVENTEEN AND EIGHTEEN OF THE PUBLIC
OFFICERS LAW AGAINST ANY CLAIM, DEMAND, SUIT OR JUDGMENT ARISING BY
REASON OF ANY ACT OR OMISSION BY SUCH MEMBER OCCURRING IN THE DISCHARGE
OF HIS OR HER DUTIES AND WITHIN THE SCOPE OF HIS OR HER SERVICE ON
BEHALF OF THE BOARD. THE BOARD AND ITS MEMBERS SHALL BE SUBJECT TO THE
PROVISIONS OF SECTIONS SEVENTY-THREE AND SEVENTY-FOUR OF THE PUBLIC
OFFICERS LAW AND CHAPTER SIXTY-EIGHT OF THE CHARTER OF THE CITY OF NEW
YORK. NOTWITHSTANDING ANY OTHER PROVISION OF ANY GENERAL, SPECIAL OR
LOCAL LAW, CHARTER, ADMINISTRATIVE CODE OR RULE OR REGULATION TO THE
CONTRARY, NO OFFICER OR EMPLOYEE OF THE STATE OR CIVIL DIVISION THEREOF
SHALL BE DEEMED TO HAVE FORFEITED OR SHALL FORFEIT HIS OR HER OFFICE OR
EMPLOYMENT BY REASON OF HIS OR HER ACCEPTANCE OF MEMBERSHIP ON THE BOARD
CREATED BY THIS SUBDIVISION.
C. THE CHAIRPERSON OF THE BOARD SHALL BE THE MEMBER OF THE BOARD
APPOINTED BY THE RETIREMENT SYSTEM HAVING THE LARGEST PERCENTAGE OF
ASSETS OF THE FIVE ACTUARIALLY FUNDED RETIREMENT SYSTEMS OF THE CITY OF
NEW YORK AS OF THE END OF THE PRECEDING FISCAL YEAR AS DETERMINED BY THE
COMPTROLLER OF THE CITY OF NEW YORK.
D. THE BOARD SHALL MEET NO LESS THAN ONCE EACH QUARTER IN A CALENDAR
YEAR. MEETINGS OF THE BOARD SHALL COMPLY WITH THE OPEN MEETINGS LAW
PURSUANT TO ARTICLE SEVEN OF THE PUBLIC OFFICERS LAW. THE ACTUARY OF THE
FIVE ACTUARIALLY FUNDED RETIREMENT SYSTEMS IN THE CITY OF NEW YORK SHALL
ASSIGN TO THE BOARD A SUFFICIENT NUMBER OF CLERICAL AND OTHER ASSISTANTS
TO PERMIT THE BOARD TO EFFICIENTLY EXERCISE ITS POWERS AND TO PERFORM
ITS DUTIES.
E. THE BOARD IS EMPOWERED TO OVERSEE THE OPERATIONS OF THE ACTUARY OF
THE FIVE ACTUARIALLY FUNDED RETIREMENT SYSTEMS OF THE CITY OF NEW YORK
INCLUDING AUDITING AND MONITORING THE IMPLEMENTATION OF THE ANNUAL BUDG-
ET AND ALL ADMINISTRATIVE OPERATIONS. THE BOARD SHALL ESTABLISH A
REASONABLE TIMEFRAME FOR THE PREPARATION OF FISCAL NOTES AFFECTING ANY
OF THE FIVE ACTUARIALLY FUNDED RETIREMENT SYSTEMS IN THE CITY OF NEW
YORK.
F. THE ACTUARY OF THE FIVE ACTUARIALLY FUNDED RETIREMENT SYSTEMS OF
THE CITY OF NEW YORK SHALL SUBMIT TO THE BOARD A PROPOSED ANNUAL ADMIN-
ISTRATIVE BUDGET WHICH IS SUFFICIENT TO CARRY OUT THE POWERS AND DUTIES
OF SUCH ACTUARY AS PROVIDED BY LAW. SUCH PROPOSED BUDGET SHALL INCLUDE
AN ALLOCATION FOR REIMBURSEMENT FOR ACTUAL AND NECESSARY EXPENSES
INCURRED BY THE MEMBERS OF THE BOARD IN THE PERFORMANCE OF THEIR DUTIES.
THE BOARD SHALL HAVE THE POWER TO APPROVE, MODIFY OR REJECT SUCH
PROPOSED ANNUAL ADMINISTRATIVE BUDGET; PROVIDED, HOWEVER, THAT UPON THE
EFFECTIVE DATE OF THIS SECTION FOR CITY FISCAL YEAR TWO THOUSAND TEN THE
S. 5418--A 4 A. 8059--A
BUDGET OF THE ACTUARY OF THE FIVE ACTUARIALLY FUNDED RETIREMENT SYSTEMS
OF THE CITY OF NEW YORK SHALL BE EQUAL TO THE ADOPTED BUDGET OF THE
OFFICE OF THE ACTUARY FOR CITY FISCAL YEAR TWO THOUSAND NINE AS SPECI-
FIED IN THE ADOPTED BUDGET OF THE CITY OF NEW YORK INCLUDING ANY MODIFI-
CATIONS THERETO. THE COSTS OF THE ANNUAL BUDGET IN CITY FISCAL YEAR TWO
THOUSAND TEN AND THE COSTS OF THE APPROVED ANNUAL BUDGET IN EACH SUBSE-
QUENT YEAR SHALL BE ALLOCATED AMONG THE: 1. NEW YORK CITY EMPLOYEES'
RETIREMENT SYSTEM; 2. NEW YORK CITY TEACHERS' RETIREMENT SYSTEM; 3. NEW
YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM; 4. NEW YORK CITY POLICE
PENSION FUND; AND 5. NEW YORK CITY FIRE DEPARTMENT PENSION FUND, AND
SHALL BE ASSESSED ANNUALLY ON A PRO RATA SHARE BASED UPON THE ASSETS OF
SUCH SYSTEMS AS DETERMINED BY THE OFFICE OF THE COMPTROLLER OF THE CITY
OF NEW YORK AS OF THE THIRTIETH DAY OF JUNE OF THE PRECEDING FISCAL YEAR
AND SHALL BE PAYABLE BY THE LAST DAY OF THE CALENDAR YEAR IN WHICH THE
EXPENSES WERE ASSESSED. THE BOARD OF TRUSTEES OF THE: (I) NEW YORK CITY
EMPLOYEES' RETIREMENT SYSTEM; (II) NEW YORK CITY TEACHERS' RETIREMENT
SYSTEM; (III) NEW YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM; (IV)
NEW YORK CITY POLICE PENSION FUND; AND (V) NEW YORK CITY FIRE DEPARTMENT
PENSION FUND MAY DRAW UPON THE ASSETS OF ITS RESPECTIVE RETIREMENT
SYSTEM TO FUND ITS PRO RATA SHARE.
G. THE ACTUARY OF THE FIVE ACTUARIALLY FUNDED RETIREMENT SYSTEMS OF
THE CITY OF NEW YORK SHALL HAVE THE POWER TO OBTAIN BY EMPLOYMENT OR BY
CONTRACT THE GOODS, PROPERTY AND SERVICES NECESSARY TO FULFILL HIS OR
HER POWERS, DUTIES AND RESPONSIBILITIES WITHIN THE APPROVED ANNUAL BUDG-
ET. ALL CONTRACTS FOR GOODS AND SERVICES ENTERED INTO BY THE ACTUARY
SHALL BE PROCURED AS PRESCRIBED IN CHAPTER THIRTEEN OF THE CHARTER OF
THE CITY OF NEW YORK.
H. THE PROVISIONS OF CHAPTER SEVENTEEN OF THE CHARTER OF THE CITY OF
NEW YORK SHALL CONTINUE TO APPLY TO THE ACTUARY AND THE ACTUARY SHALL
CONSTITUTE AN AGENCY FOR THE PURPOSES OF SUCH CHAPTER SEVENTEEN. THE
ACTUARY SHALL NOT OBTAIN ANY LEGAL SERVICES BY THE RETENTION OF EMPLOY-
EES OR BY CONTRACT UNLESS THE CORPORATION COUNSEL SHALL CONSENT THERETO.
S 3. This act shall take effect on the ninetieth day after it shall
have become a law and shall expire and be deemed repealed June 30, 2011.