Assembly Bill A4929

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

                                  4929

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 10, 2009
                               ___________

Introduced  by M. of A. BRODSKY -- read once and referred to the Commit-
  tee on Governmental Employees

AN ACT to amend the education law, the retirement  and  social  security
  law  and  the  New  York city charter, in relation to transferring the
  obligation for employer pension contributions for teachers and  school
  district  employees  from school districts to the state; and to repeal
  certain provisions of the education law relating thereto

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

  Section  1.  Statement  of  intent. The legislature intends to provide
local tax relief by assuming  the  employer  share  of  school  district
pension  costs  throughout  the  state,  including the city of New York.
School districts paying employee retirement benefits have little control
over the  fluctuating  markets  which  determine  the  amount  of  their
contributions. While the legislature recognizes that retirement pensions
provide attractive recruitment and retention benefits to a valued compo-
nent  of  the  workforce,  the  legislature  is aware that such expenses
comprise a significant portion of a school district's budget.  The state
accordingly shall pay the employer share of  retirement  pension  costs,
and  require  school  districts  to  reduce on a proportionate basis the
local tax levy.
  S 2. Paragraphs a and d of subdivision 2 of section 517 of the  educa-
tion law are amended to read as follows:
  a. On account of each teacher who is a member of the retirement system
there  shall  be  paid  annually  into the pension accumulation fund [by
employers], a certain percentage of the earnable compensation of each of
such members of the  retirement  system  to  be  known  as  the  "normal
contribution" and a further percentage known as the "deficiency contrib-
ution." The rates per centum of such contributions shall be fixed on the
basis  of the liabilities of the retirement system as shown by actuarial
valuations. FOR PAYMENTS DUE FOR  THE  TWO  THOUSAND  TEN--TWO  THOUSAND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08300-01-9
              

A. 4929                             2

ELEVEN  FISCAL  YEAR  AND THEREAFTER, ONE HUNDRED PERCENT OF SUCH AMOUNT
SHALL BE PAID ANNUALLY BY THE STATE COMPTROLLER INTO THE PENSION ACCUMU-
LATION FUND ON BEHALF OF SCHOOL DISTRICT EMPLOYERS.   THE  CONTRIBUTIONS
REQUIRED  TO BE PAID BY THE STATE, ON BEHALF OF ALL SUCH EMPLOYER SCHOOL
DISTRICTS PURSUANT TO THIS SECTION, SHALL BE FROM  AN  ANNUAL  APPROPRI-
ATION.
  d.  The  total  amount  payable  annually  [by all employers] into the
pension accumulation fund shall be certified by the retirement board  to
the  commissioner  [of education] and such amount shall equal the sum of
the rates per centum known as the normal contribution rate and the defi-
ciency contribution rate of  the  total  compensation  earnable  by  all
contributors  during the preceding school year, provided that the amount
of each annual deficiency contribution  shall  be  at  least  three  per
centum  greater  than the preceding annual payment. The aggregate of all
such payments [by employers] shall be sufficient, when combined with the
amounts in the pension accumulation fund, to provide the pensions  paya-
ble  out of the fund during the year then current, and if not, the addi-
tional amount so required shall be collected by means  of  an  increased
contribution  which  shall continue in force for the period of one year,
anything to the contrary notwithstanding.
  S 3. Section 519 of the education law, as amended by  chapter  639  of
the laws of 1980, is amended to read as follows:
  S 519.   Expense fund.   The expense fund shall be the fund from which
the expense of the administration of the retirement system shall be paid
exclusive of amounts payable as retirement allowances and as other bene-
fits provided herein.  Contributions shall be made to the  expense  fund
as follows:
  1.  The retirement board shall determine the amount required to defray
the expenses allocated to those functions which directly  or  indirectly
affect  the  system's  investment  operations. This amount so determined
shall be collected from net investment income which  shall  include  but
not be limited to interest, dividends, and realized gains and losses.
  2.  The  retirement board shall determine annually the amount required
to defray the remaining estimated expenses in the  ensuing  fiscal  year
and  shall  certify  such  amount  to the DIRECTOR OF THE BUDGET AND THE
commissioner [of education] who shall [apportion to] NOTIFY each employ-
er [a proportionate part thereof as provided under  subdivision  two  of
section  five  hundred twenty-one.  Each employer shall make payment for
the amount so apportioned to him in the same way as he shall make  other
payments  provided  for  by  this  article]  OF THE PROPORTIONATE AMOUNT
ATTRIBUTED TO SUCH EMPLOYER. SUCH AMOUNT SHALL BE PAYABLE  IN  THE  SAME
MANNER  AS  OTHERWISE  SET  FORTH  IN THIS ARTICLE. ON AND AFTER THE TWO
THOUSAND TEN--TWO THOUSAND ELEVEN FISCAL YEAR SUCH AMOUNT SHALL BE  PAID
BY THE STATE COMPTROLLER.
  S  4. The opening paragraph and paragraphs a, b and c of 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, are amended to read as follows:
  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  DIRECTOR OF THE BUDGET AND to the commissioner [of education] a
statement of the total amount necessary to be paid  [by  all  employers]
for  the ensuing fiscal year AS THE EMPLOYER CONTRIBUTION to the pension
accumulation and expense funds as  provided  under  subdivision  two  of
section  five  hundred seventeen and under section five hundred nineteen

A. 4929                             3

of this article. Upon the basis of the rate of contribution for  supple-
mental retirement allowances, determined in accordance with section five
hundred  thirty-two  of this article, the retirement board shall certify
to  the  DIRECTOR OF THE BUDGET AND TO THE commissioner [of education] a
statement of the total amount necessary to be paid [by all employers] AS
THE EMPLOYER CONTRIBUTION for the ensuing fiscal  year  to  the  supple-
mental  retirement  allowance  fund.    Said certification shall include
interest on amounts necessary to repay advances made to the supplemental
retirement allowance fund pursuant to  subdivision  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]  AND THE DIRECTOR OF THE BUDGET
shall AS APPLICABLE include in the certificate which  he  OR  SHE  files
with the state comptroller showing the amount of state funds apportioned
to  the  school  districts  within each county for the support of common
schools, a statement showing the amount to be contributed by  AND/OR  ON
BEHALF  OF each employer in each of such counties as required under this
article.
  The amount to be contributed by AND/OR  ON  BEHALF  OF  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] EMPLOYED BY SUCH DISTRICT who  are  members  of  the  retirement
system  as  the  aggregate  amount of the normal and deficiency contrib-
utions 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 retirement system.
  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]  AND THE DIRECTOR OF THE BUDGET filed with him OR HER as
directed in paragraph b of this  subdivision.    THE  COMPTROLLER  SHALL
NOTIFY  EACH  SCHOOL  BOARD OF THE AMOUNT TO BE PAID BY IT AND/OR ON ITS
BEHALF. THE COMPTROLLER AND THE COMMISSIONER SHALL DETERMINE  THE  MEANS
OF NOTIFICATION.
  S 5. Paragraphs d, e, f, g, h and m of subdivision 2 of section 521 of
the education law are REPEALED.
  S 6. Paragraph c of subdivision 2 of section 521 of the education law,
as amended by section four of this act, is amended to read as follows:
  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
and the director of the budget filed with him  or  her  as  directed  in
paragraph  b  of  this subdivision.   The comptroller shall] notify each
school board of the amount to be paid [by it and/or] on  its  behalf  TO
THE  PENSION ACCUMULATION FUND AND EXPENSE FUND RESPECTIVELY.  The comp-
troller and the commissioner shall determine the means of notification.
  S 7. Section 1604 of the education law is  amended  by  adding  a  new
subdivision 43 to read as follows:
  43.  COMMENCING WITH THE PROPOSED BUDGET FOR THE TWO THOUSAND TEN--TWO
THOUSAND  ELEVEN  SCHOOL  YEAR, THE BOARD OF TRUSTEES SHALL DECREASE THE
SCHOOL PROPERTY TAX LEVY BY THE PERCENTAGE THAT THE AMOUNT  OF  EMPLOYER

A. 4929                             4

CONTRIBUTIONS  MADE  ON BEHALF OF THE SCHOOL DISTRICT BY THE STATE IS TO
THE PORTION OF THE SCHOOL DISTRICT BUDGET WHICH MUST BE RAISED BY  LOCAL
TAXES.
  S  8.  Paragraph  a  of subdivision 7 of section 1608 of the education
law, as amended by chapter 238 of the laws of 2007, is amended and a new
subdivision 5-a is added to read as follows:
  5-A. THE TRUSTEE OR BOARD OF TRUSTEES SHALL APPEND TO THE STATEMENT OF
ESTIMATED  EXPENDITURES  A  STATEMENT  DETAILING  THE  TOTAL  AMOUNT  OF
CONTRIBUTIONS  TO  THE  TEACHERS' RETIREMENT SYSTEM AND TO THE STATE AND
LOCAL EMPLOYEES' RETIREMENT SYSTEM PAID  BY  THE  STATE  COMPTROLLER  ON
BEHALF OF ELIGIBLE SCHOOL DISTRICT EMPLOYEES IN THE ENSUING SCHOOL YEAR;
AND  THE  PERCENTAGE  OF THE PORTION OF THE SCHOOL DISTRICT BUDGET WHICH
MUST BE RAISED BY LOCAL TAXES AND WHICH SUCH  AMOUNT  REPRESENTS.    THE
TRUSTEES  SHALL SUBMIT A COPY OF SUCH STATEMENT, IN A FORM PRESCRIBED BY
THE COMMISSIONER, TO THE COMMISSIONER WITHIN FIVE DAYS AFTER ITS  PREPA-
RATION. THE COMMISSIONER SHALL COMPILE SUCH DATA, TOGETHER WITH THE DATA
SUBMITTED  PURSUANT  TO  SUBDIVISION  THREE OF SECTION SEVENTEEN HUNDRED
SIXTEEN OF THIS CHAPTER, INTO  A  SINGLE  STATEWIDE  COMPILATION,  WHICH
SHALL  BE  MADE  AVAILABLE  TO  THE GOVERNOR, THE LEGISLATURE, AND OTHER
INTERESTED PARTIES UPON REQUEST.
  a. Each year, commencing with the proposed budget for  the  two  thou-
sand--two  thousand  one  school  year, the trustee or board of trustees
shall prepare a property tax report card, pursuant to regulations of the
commissioner, and shall make it publicly available by transmitting it to
local newspapers of general circulation, appending it to copies  of  the
proposed  budget  made  publicly available as required by law, making it
available for distribution at the annual meeting, and otherwise  dissem-
inating  it  as  required  by  the  commissioner. Such report card shall
include: (i) the amount of total spending and total estimated school tax
levy that would result from adoption of  the  proposed  budget  and  the
percentage  increase  or decrease in total spending and total school tax
levy from the school district budget for the preceding school year;  and
(ii)  the  projected enrollment growth for the school year for which the
budget is prepared, and the percentage change  in  enrollment  from  the
previous  year;  and (iii) the percentage increase in the consumer price
index, as defined in paragraph c  of  this  subdivision;  and  (iv)  the
projected amount of the unappropriated unreserved fund balance that will
be  retained  if the proposed budget is adopted, the projected amount of
the reserved fund balance, the projected amount of the appropriated fund
balance, the percentage of the proposed budget that  the  unappropriated
unreserved fund balance represents, the actual unappropriated unreserved
fund  balance  retained  in the school district budget for the preceding
school year, and the percentage of the school district  budget  for  the
preceding  school  year  that  the actual unappropriated unreserved fund
balance represents. COMMENCING WITH THE  PROPOSED  BUDGET  FOR  THE  TWO
THOUSAND  TEN--TWO  THOUSAND ELEVEN SCHOOL YEAR, THE PROPERTY TAX REPORT
CARD SHALL STATE THE TOTAL AMOUNT  OF  CONTRIBUTIONS  TO  THE  TEACHERS'
RETIREMENT  SYSTEM  AND  TO  THE  STATE  AND LOCAL EMPLOYEES' RETIREMENT
SYSTEM PAID BY THE STATE COMPTROLLER ON BEHALF OF  THE  SCHOOL  DISTRICT
BOARD OF TRUSTEES AS THE EMPLOYER SHARE OF EMPLOYEE RETIREMENT BENEFITS,
AND  SHALL  INDICATE THE PERCENTAGE DECREASE IN THE SCHOOL TAX LEVY SUCH
AMOUNT IS TO THE PORTION OF THE SCHOOL DISTRICT  BUDGET  WHICH  MUST  BE
RAISED BY LOCAL TAXES.
  S  9.  Section  1709  of  the education law is amended by adding a new
subdivision 43 to read as follows:

A. 4929                             5

  43. COMMENCING WITH THE PROPOSED BUDGET FOR THE TWO THOUSAND  TEN--TWO
THOUSAND  ELEVEN  SCHOOL YEAR, THE BOARD OF EDUCATION SHALL DECREASE THE
SCHOOL PROPERTY TAX  LEVY BY THE PERCENTAGE THAT THE AMOUNT OF  EMPLOYER
CONTRIBUTIONS  MADE ON BEHALF OF THE  SCHOOL DISTRICT BY THE STATE IS TO
THE  PORTION OF THE SCHOOL DISTRICT BUDGET WHICH MUST BE RAISED BY LOCAL
TAXES.
  S 10. Paragraph a of subdivision 7 of section 1716  of  the  education
law, as amended by chapter 238 of the laws of 2007, is amended and a new
subdivision 5-a is added to read as follows:
  5-A. THE BOARD OF EDUCATION SHALL APPEND TO THE STATEMENT OF ESTIMATED
EXPENDITURES  A STATEMENT DETAILING THE TOTAL AMOUNT OF CONTRIBUTIONS TO
THE TEACHERS' RETIREMENT SYSTEM AND TO THE STATE  AND  LOCAL  EMPLOYEES'
RETIREMENT  SYSTEM  PAID  BY THE STATE COMPTROLLER ON BEHALF OF ELIGIBLE
SCHOOL DISTRICT EMPLOYEES IN THE ENSUING SCHOOL YEAR; AND THE PERCENTAGE
OF THAT PORTION OF THE SCHOOL DISTRICT BUDGET WHICH MUST  BE  RAISED  BY
LOCAL  TAXES WHICH SUCH AMOUNT REPRESENTS. THE BOARD SHALL SUBMIT A COPY
OF SUCH STATEMENT, IN A FORM PRESCRIBED  BY  THE  COMMISSIONER,  TO  THE
COMMISSIONER  WITHIN  FIVE  DAYS AFTER ITS PREPARATION. THE COMMISSIONER
SHALL COMPILE SUCH DATA, TOGETHER WITH THE DATA  SUBMITTED  PURSUANT  TO
SUBDIVISION  THREE OF THIS SECTION, INTO A SINGLE STATEWIDE COMPILATION,
WHICH SHALL BE MADE AVAILABLE TO  THE  GOVERNOR,  THE  LEGISLATURE,  AND
OTHER INTERESTED PARTIES UPON REQUEST.
  a.  Each  year,  commencing with the proposed budget for the two thou-
sand--two thousand one school year, the board of education shall prepare
a property tax report card, pursuant to regulations of the commissioner,
and shall make it publicly available by transmitting it to local newspa-
pers of general circulation, appending it  to  copies  of  the  proposed
budget  made  publicly available as required by law, making it available
for distribution at the annual meeting, and otherwise  disseminating  it
as required by the commissioner. Such report card shall include: (i) the
amount  of total spending and total estimated school tax levy that would
result from adoption of the proposed budget and the percentage  increase
or  decrease in total spending and total school tax levy from the school
district budget for the preceding school year; and  (ii)  the  projected
enrollment  growth for the school year for which the budget is prepared,
and the percentage change in enrollment  from  the  previous  year;  and
(iii) the percentage increase in the consumer price index, as defined in
paragraph  c  of  this subdivision; and (iv) the projected amount of the
unappropriated unreserved fund balance that  will  be  retained  if  the
proposed  budget  is  adopted, the projected amount of the reserved fund
balance, the projected amount of  the  appropriated  fund  balance,  the
percentage  of  the  proposed  budget that the unappropriated unreserved
fund balance  represents,  the  actual  unappropriated  unreserved  fund
balance  retained in the school district budget for the preceding school
year, and the percentage of the school district budget for the preceding
school year that  the  actual  unappropriated  unreserved  fund  balance
represents.  COMMENCING  WITH  THE  PROPOSED BUDGET FOR THE TWO THOUSAND
TEN--TWO THOUSAND ELEVEN SCHOOL YEAR, THE PROPERTY TAX REPORT CARD SHALL
STATE THE TOTAL AMOUNT OF  CONTRIBUTIONS  TO  THE  TEACHERS'  RETIREMENT
SYSTEM  AND  TO THE STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM PAID BY
THE STATE COMPTROLLER ON BEHALF OF THE SCHOOL DISTRICT BOARD  OF  EDUCA-
TION  AS  THE  EMPLOYER SHARE OF EMPLOYEE RETIREMENT BENEFITS, AND SHALL
INDICATE THE PERCENTAGE DECREASE IN THE SCHOOL TAX LEVY THAT SUCH AMOUNT
IS TO THE PORTION OF THE SCHOOL DISTRICT BUDGET WHICH MUST BE RAISED  BY
LOCAL TAXES.

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  S  11.   The education law is amended by adding a new section 520-a to
read as follows:
  S  520-A.  SCHOOL  DISTRICT RETIREMENT INCENTIVES. NOTWITHSTANDING ANY
OTHER PROVISION OF LAW TO THE CONTRARY, WHERE A SCHOOL DISTRICT, THROUGH
ITS BOARD OF TRUSTEES OR BOARD OF EDUCATION, OFFERS AN EARLY  RETIREMENT
INCENTIVE OPTION TO ITS EMPLOYEES, ANY ADDITIONAL EMPLOYER CONTRIBUTIONS
TO THE APPLICABLE RETIREMENT SYSTEM ON BEHALF OF SUCH EMPLOYEES SHALL BE
PAID BY THE SCHOOL DISTRICT. THE COMMISSIONER SHALL DETERMINE A SCHEDULE
FOR  THE  PAYMENT  OF  CONTRIBUTIONS  TO THE TEACHERS' RETIREMENT SYSTEM
WHICH ARE REQUIRED TO BE MADE BY EMPLOYER SCHOOL DISTRICTS  PURSUANT  TO
THIS SECTION.
  S 12. Subparagraph 1 of paragraph a of subdivision 1 of section 3609-a
of  the education law, as amended by chapter 474 of the laws of 1996, is
amended to read as follows:
  (1) [District payments] PAYMENTS to the teachers'  retirement  system.
[Of]  FOR  FISCAL  YEARS  BEGINNING  BEFORE  TWO THOUSAND ELEVEN, OF the
moneys apportioned by the  commissioner  to  school  districts  for  the
current  year,  after  the  payment  of  lottery  aid in accordance with
subparagraph two of this paragraph, an amount not to exceed one-third of
the amount owed by such school district to the New York state  teachers'
retirement  system for salaries paid in the base year or for other obli-
gations pursuant to section five  hundred  twenty-one  of  this  chapter
shall  be  payable  to such teachers' retirement system on behalf of the
school district on or before the fifteenth day of each of the months  of
September,  October  and November, except that special payments due such
teachers' retirement system shall be payable on or before the  fifteenth
day  of  October.  Any underpayment resulting from data changes shall be
payable from spring payments. Any  portion  of  the  payments  due  such
teachers'  retirement  system that exceed the remainder of the moneys to
be apportioned to the school district shall  be  made  directly  by  the
school  district  to the system.   THE CONTRIBUTIONS REQUIRED TO BE PAID
PURSUANT TO THIS SECTION SHALL BE MADE BY THE STATE, ON  BEHALF  OF  ALL
SUCH  EMPLOYER  SCHOOL  DISTRICTS,  AS  AN  ANNUAL  APPROPRIATION.   FOR
PAYMENTS DUE FOR THE TWO THOUSAND TEN--TWO THOUSAND ELEVEN SCHOOL FISCAL
YEAR AND THEREAFTER ONE HUNDRED PERCENT OF SUCH  AMOUNT  SHALL  BE  PAID
ANNUALLY  BY THE STATE COMPTROLLER INTO THE PENSION ACCUMULATION FUND ON
BEHALF OF SCHOOL DISTRICT EMPLOYERS. THERE  SHALL  BE  NO  DEDUCTION  IN
STATE  AID  TO SCHOOL DISTRICTS BASED UPON PAYMENTS MADE BY THE STATE TO
THE RETIREMENT SYSTEM AS THE EMPLOYER CONTRIBUTION  SHARE.    THE  STATE
COMPTROLLER  AND  THE  DIRECTOR OF THE BUDGET SHALL DETERMINE A SCHEDULE
FOR THE PAYMENT OF CONTRIBUTIONS  TO  THE  TEACHERS'  RETIREMENT  SYSTEM
WHICH  ARE  TO  BE  MADE  BY THE STATE COMPTROLLER ON BEHALF OF EMPLOYER
SCHOOL DISTRICTS.
  S 13. 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 and 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, OR IN THE  CASE  OF  SCHOOL  DISTRICT
EMPLOYERS,  THE  STATE  COMPTROLLER  PURSUANT  TO  SUBDIVISION F OF THIS
SECTION, 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

A. 4929                             7

this system. The comptroller shall submit to the fiscal officer of  each
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. 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 sixteen of this article on  such  amount,
as  a  reduction  in  the  amount  otherwise required to be paid by such
participating employer.
  b. [Each] EXCEPT AS  OTHERWISE  PROVIDED  IN  SUBDIVISION  F  OF  THIS
SECTION,  EACH  participating  employer annually shall appropriate a sum
sufficient to pay such amount. 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
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 of such obligations 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, payment of which is not made as herein required. While any such sum
shall  remain due and unpaid he OR SHE may refuse to audit any claim for
funds due to such employer from the state.
  F. WHERE THE PARTICIPATING EMPLOYER IS A  SCHOOL  DISTRICT  OR  SCHOOL
DISTRICT BOARD OF TRUSTEES, THE CONTRIBUTIONS REQUIRED TO BE PAID PURSU-
ANT  TO  THIS  SECTION SHALL BE MADE BY THE STATE, ON BEHALF OF ALL SUCH
EMPLOYER SCHOOL DISTRICTS, AS AN ANNUAL APPROPRIATION.  FOR PAYMENTS DUE
FOR THE TWO THOUSAND TEN--TWO THOUSAND ELEVEN  SCHOOL  FISCAL  YEAR  AND
THEREAFTER,  ONE  HUNDRED  PERCENT  OF  SUCH AMOUNT SHALL BE PAID BY THE
STATE COMPTROLLER ON BEHALF OF SCHOOL DISTRICT EMPLOYERS.
  THERE SHALL BE NO DEDUCTION IN STATE AID  TO  SCHOOL  DISTRICTS  BASED
UPON PAYMENTS MADE BY THE STATE TO THE RETIREMENT SYSTEM AS THE EMPLOYER
CONTRIBUTION SHARE.
  S  14.  Subdivision  a  and  the opening paragraph of subdivision b of
section 323 of the retirement and social security law, subdivision a  as
added  by  chapter 1000 of the laws of 1966 and the opening paragraph of
subdivision b as amended by chapter 210 of the laws of 1990, are amended
to read as follows:
  a. Except as otherwise provided pursuant to this article, the  pension
accumulation fund shall be the fund in which shall be accumulated:

A. 4929                             8

  1.  All  contributions  made  by employers, OR IN THE CASE OF A SCHOOL
DISTRICT BY THE SCHOOL DISTRICT AND/OR  THE  STATE  ON  BEHALF  OF  SUCH
SCHOOL DISTRICT, and
  2.  All  income  received  from the investments of the policemen's and
firemen's retirement system, and
  3. All monies received from  all  other  sources  and  which  are  not
required to be credited to any other fund.
  Each  employer  OR  REQUIRED  CONTRIBUTOR shall make two contributions
annually. They shall be known as the normal contribution as  defined  in
subparagraph (a) of paragraph one of this subdivision and the deficiency
contribution  as defined in paragraph two of this subdivision. The rates
thereof shall be computed by the actuary.
  S 15. Section 2590-h of the education law is amended by adding  a  new
subdivision 48 to read as follows:
  48.    THE  CITY CHANCELLOR SHALL REPORT TO THE MAYOR AND TO THE COMP-
TROLLER OF THE CITY OF NEW YORK THE AMOUNT THAT  THE  STATE  COMPTROLLER
WILL  PAY  ON  BEHALF OF THE BOARD OF EDUCATION RETIREMENT SYSTEM OF THE
CITY OF NEW YORK AND THE TEACHERS' RETIREMENT SYSTEM  OF THE CITY OF NEW
YORK FOR THE EMPLOYER SHARE OF CONTRIBUTIONS TO SUCH  SYSTEMS,  AND  THE
PERCENTAGE THAT SUCH AMOUNT REPRESENTS TO THE NEW YORK CITY SCHOOL BUDG-
ET.    THE  CONTRIBUTIONS  REQUIRED  TO BE PAID PURSUANT TO THIS SECTION
SHALL BE MADE BY THE STATE, ON BEHALF OF SUCH EMPLOYER, FROM  AN  ANNUAL
APPROPRIATION.
  S  16.  Section  2576  of the education law is amended by adding a new
subdivision 11 to read as follows:
  11. THE BOARD OF EDUCATION IN EACH CITY HAVING A POPULATION IN  EXCESS
OF  ONE  HUNDRED  TWENTY-FIVE  THOUSAND  INHABITANTS SHALL REPORT TO THE
MAYOR AND TO THE CITY COUNCIL THE AMOUNT  OF  THE  EMPLOYERS'  SHARE  OF
CONTRIBUTIONS  THAT  THE  STATE  COMPTROLLER  WILL PAY TO THE RETIREMENT
SYSTEMS ON BEHALF OF SUCH SCHOOL DISTRICT EMPLOYEES, AND THE  PERCENTAGE
THAT  SUCH  AMOUNT  REPRESENTS  TO THE PORTION OF THE CITY SCHOOL BUDGET
THAT MUST BE RAISED BY THE TAX LEVY AS DEFINED BY PARAGRAPH A OF  SUBDI-
VISION  ONE  OF  SECTION  THIRTY-SIX HUNDRED NINE-E OF THIS CHAPTER. THE
CITY SHALL REDUCE THE CITY REAL PROPERTY TAX LEVY IN PROPORTION  TO  THE
PERCENTAGE THAT SUCH STATE PAYMENTS TO THE RETIREMENT SYSTEMS REPRESENTS
TO THE CITY SCHOOL BUDGET.
  S  17.  The  New  York city charter is amended by adding a new section
258-a to read as follows:
  S 258-A. REDUCTION OF TAX LEVY. THE CITY SHALL REDUCE  THE  CITY  REAL
PROPERTY TAX LEVY AND THE CITY PERSONAL INCOME TAX LEVY IN PROPORTION TO
THE  PERCENTAGE  THAT  STATE  PAYMENTS  TO  THE  NEW YORK CITY TEACHERS'
RETIREMENT SYSTEM AND THE BOARD OF EDUCATION RETIREMENT  SYSTEM  OF  THE
CITY OF NEW YORK ON BEHALF OF THE EMPLOYER SCHOOL DISTRICT, REPRESENT TO
THE  PORTION  OF  THE NEW YORK CITY SCHOOL BUDGET THAT MUST BE RAISED BY
THE TAX LEVY AS DEFINED BY PARAGRAPH A OF  SUBDIVISION  ONE  OF  SECTION
THIRTY-SIX  HUNDRED  NINE-E  OF  THE  EDUCATION  LAW.    SUCH  TAX  LEVY
REDUCTIONS SHALL RESULT IN REDUCTIONS IN THE CITY REAL PROPERTY TAX  AND
CITY  PERSONAL  INCOME  TAX  IN  RELATIVE  PROPORTION  TO THE PERCENT OF
RECEIPTS THAT THE  CITY  PROPERTY  TAX  AND  CITY  PERSONAL  INCOME  TAX
CONTRIBUTE TO THE NEW YORK CITY BUDGET FOR EACH CITY FISCAL YEAR, EXCLU-
SIVE OF ALL OTHER REVENUE SOURCES.
  S  18.  The  comptroller  of the city of New York shall certify to the
state director of the budget, the state comptroller and the commissioner
of education the total amount necessary to be paid for the state assump-
tion of the employer contribution to the board of  education  retirement
system  of  the  city  of  New  York  (BERS) and New York city teachers'

A. 4929                             9

retirement system for the ensuing fiscal year. The state director of the
budget and the state comptroller shall determine the amount of an appro-
priation required to be paid specifically for such purpose.   The  comp-
troller  of  the  city  of New York, the state comptroller and the state
director of the budget shall determine the method and procedure for  the
implementation of the state assumption of the employer share of contrib-
utions  to  the  board of education retirement system of the city of New
York (BERS) and New York city teachers' retirement system.
  S 19. Nothing in this act shall impair or negate any obligation of any
school district employer which was incurred or due prior to  the  effec-
tive  date  of  this  act, nor require the state to assume any financial
obligation of any school district employer incurred  or  due  and  owing
prior to the effective date of this act.
  S  20.    Severability. If any clause, sentence, paragraph, section or
part of this act shall be adjudged by any court of  competent  jurisdic-
tion  to be invalid and after exhaustion of all further judicial review,
the judgment shall not affect, impair or invalidate the remainder there-
of, but shall be confined in its  operation  to  the  clause,  sentence,
paragraph,  section or part of this act directly involved in the contro-
versy in which the judgment shall have been rendered.
  S 21. This act shall take effect July 1, 2010 provided, however,  that
sections five  and six of this act shall take effect July 1, 2013.