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

                                  2169

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2009
                               ___________

Introduced  by  M. of A. McENENY, CANESTRARI, V. LOPEZ, CYMBROWITZ, COOK
  -- Multi-Sponsored by -- M. of A. CAHILL, CHRISTENSEN, CLARK,  COLTON,
  DelMONTE,  ENGLEBRIGHT,  GLICK, GREENE, JACOBS, MAGEE, ORTIZ, TOWNS --
  read once and referred to the Committee on Governmental Employees

AN ACT to amend the retirement and social security law, in  relation  to
  participation  by  certain not-for-profit corporations in the New York
  state and local employees' retirement system

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

  Section 1. The retirement and social security law is amended by adding
a new section 31-g to read as follows:
  S  31-G. PARTICIPATION BY CERTAIN NOT-FOR-PROFIT CORPORATIONS. A.  ANY
NOT-FOR-PROFIT CORPORATION, AS DEFINED IN SUBPARAGRAPH FIVE OF PARAGRAPH
(A) OF SECTION ONE HUNDRED TWO OF THE  NOT-FOR-PROFIT  CORPORATION  LAW,
WHICH  RECEIVES  FORTY  PERCENT  OR  MORE  OF ITS GROSS REVENUES THROUGH
GOVERNMENT FUNDING, BY RESOLUTION LEGALLY ADOPTED BY ITS BOARD OF DIREC-
TORS AND APPROVED BY THE COMPTROLLER, MAY ELECT TO BECOME A  PARTICIPAT-
ING   EMPLOYER   IN  THE  RETIREMENT  SYSTEM.  ACCEPTANCE  OF  ANY  SUCH
NOT-FOR-PROFIT CORPORATION AS A PARTICIPATING EMPLOYER IN THE RETIREMENT
SYSTEM SHALL BE OPTIONAL WITH THE COMPTROLLER, WHO SHALL  DETERMINE  THE
AMOUNTS  OF  CONTRIBUTION PAYABLE BY SUCH CORPORATION AND ITS EMPLOYEES,
SHALL RESOLVE QUESTIONS OF CREDIT FOR PRIOR SERVICE, AND  SHALL  IN  ALL
OTHER  RESPECTS  ASSURE THAT SUCH EMPLOYEES SHARE THE SAME RIGHTS, OBLI-
GATIONS AND BENEFITS AS OTHER MEMBERS OF THE RETIREMENT SYSTEM.
  B. THE OFFICERS AND EMPLOYEES OF SUCH QUALIFYING NOT-FOR-PROFIT CORPO-
RATION SHALL BE CREDITED WITH SUCH PERIODS OF PRIOR SERVICE AS SHALL  BE
CERTIFIED BY SUCH NOT-FOR-PROFIT CORPORATION FOR SERVICE RENDERED TO IT,
OR  THE  STATE, OR IN ANY OTHER CAPACITY APPROVED BY SUCH NOT-FOR-PROFIT
CORPORATION AND THE COMPTROLLER. SERVICE FOR SUCH NOT-FOR-PROFIT  CORPO-
RATION  AFTER  THE  DATE  ON  WHICH  IT  COMMENCES TO PARTICIPATE IN THE
RETIREMENT SYSTEM SHALL BE CONSIDERED MEMBER SERVICE.    AN  OFFICER  OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00807-02-9
              

A. 2169                             2

EMPLOYEE  OF  SUCH  NOT-FOR-PROFIT CORPORATION WHO, AS OF THE DATE HE OR
SHE IS SO APPROVED FOR MEMBERSHIP IN THE RETIREMENT SYSTEM, IS ALREADY A
MEMBER THEREOF, SHALL NOT HAVE HIS OR HER TOTAL CREDIT REDUCED  BY  SUCH
APPROVAL. ANY RESERVE HELD ON ACCOUNT OF ANY SUCH OFFICER OR EMPLOYEE IN
THE  PENSION  ACCUMULATION  FUND  SHALL BE USED AS AN OFFSET AGAINST THE
DEFICIENCY CONTRIBUTION PAYABLE THEREAFTER BY SUCH NOT-FOR-PROFIT CORPO-
RATION ON ACCOUNT OF SUCH OFFICER OR  EMPLOYEE  FOR  ANY  PRIOR  SERVICE
CREDIT AND ANY SUCH PREVIOUS CREDIT.
  S 2. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill  would permit any not-for-profit corporation which receives
forty percent or more of its gross revenues from government  funding  to
elect  participation  in the New York State and Local Employees' Retire-
ment System.
  If this bill is enacted and  an  eligible  not-for-profit  corporation
elects participation, the future annual cost would depend on the retire-
ment plan adopted.
  As  a  percentage  of  payroll, we anticipate that the annual contrib-
utions of the affected corporation for the fiscal year ending March  31,
2010, will be as follows:
          Tier 1         4.7% to 9.2%
          Tier 2         4.5% to 8.5%
          Tier 3         6.9%
          Tier 4         6.9%
  In addition to the annual contributions discussed above, there will be
a  deficiency cost to the affected corporation which will be payable for
a 25 year period. These costs will depend on the age,  service,  salary,
tier status and plan of the affected employees.
  This  estimate,  dated  December  12,  2008, and intended for use only
during the  2009  Legislative  Session,  is  Fiscal  Note  No.  2009-11,
prepared  by  the  Actuary  for  the New York State and Local Employees'
Retirement System.