senate Bill S7331A

Vetoed By Governor
2013-2014 Legislative Session

Increases the portion of public pension fund assets that may be invested according to the prudent investor standard

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Archive: Last Bill Status Via A9643 - Vetoed by Governor


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Vetoed by Governor

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Actions

view actions (13)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Dec 17, 2014 tabled
vetoed memo.552
Dec 05, 2014 delivered to governor
Jun 19, 2014 returned to assembly
passed senate
3rd reading cal.995
substituted for s7331a
Jun 19, 2014 substituted by a9643a
Jun 16, 2014 amended on third reading 7331a
Jun 02, 2014 advanced to third reading
May 29, 2014 2nd report cal.
May 28, 2014 1st report cal.995
May 13, 2014 referred to civil service and pensions

Votes

view votes

May 28, 2014 - Civil Service and Pensions committee Vote

S7331
8
0
committee
8
Aye
0
Nay
3
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show committee vote details

Committee Vote: May 28, 2014

aye wr (3)

Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

S7331 - Details

See Assembly Version of this Bill:
A9643A
Law Section:
Retirement and Social Security Law
Laws Affected:
Amd §177, R & SS L

S7331 - Summary

Increases the portion of public pension fund assets that may be invested according to the prudent investor standard.

S7331 - Sponsor Memo

S7331 - Bill Text download pdf

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

                                  7331

                            I N  S E N A T E

                              May 13, 2014
                               ___________

Introduced  by  Sen.  DeFRANCISCO -- 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, in relation to
  investments by public pension funds

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

  Section  1.  Paragraph  (a)  of  subdivision  9  of section 177 of the
retirement and social security law, as amended by chapter 22 of the laws
of 2006, is amended to read as follows:
  (a) the investments by a fund made pursuant to this subdivision  shall
not  at  any  time  exceed  [twenty-five]  THIRTY-FIVE per centum of the
assets of such fund;
  S 2. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  PROVISIONS OF PROPOSED LEGISLATION: With respect to the New York  City
Retirement  Systems  ("NYCRS"),  this  proposed  legislation would amend
Retirement and Social Security Law ("RSSL") Section 177.9(a)  to  permit
an  increase to 35% the percentage of assets that may be held in "Basket
Clause" investments (i.e.,  investments  not  explicitly  identified  as
permissible elsewhere in New York State law).
  This 35% limit compares with a limit of 25% under current law.
  FINANCIAL  IMPACT - EMPLOYER CONTRIBUTIONS: With respect to the NYCRS,
the enactment of this proposed legislation would not, in and of  itself,
result in any change in employer contributions.
  The ultimate cost of a Retirement Program is the benefits it pays. The
financing of that ultimate cost is provided by contributions and invest-
ment income.
  Investment  income  depends upon the amounts of assets of the Fund and
the rate of return received on those assets. The rate of return  depends
primarily upon the asset allocation policy of the Fund.
  To the extent that the NYCRS increase their investments in the securi-
ties  authorized  by  this  proposed  legislation  and  those securities
produce greater (lesser) rates of return than the rates of  return  that

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

Co-Sponsors

S7331A (ACTIVE) - Details

See Assembly Version of this Bill:
A9643A
Law Section:
Retirement and Social Security Law
Laws Affected:
Amd §177, R & SS L

S7331A (ACTIVE) - Summary

Increases the portion of public pension fund assets that may be invested according to the prudent investor standard.

S7331A (ACTIVE) - Sponsor Memo

S7331A (ACTIVE) - Bill Text download pdf

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

                                 7331--A
    Cal. No. 995

                            I N  S E N A T E

                              May 13, 2014
                               ___________

Introduced by Sens. DeFRANCISCO, SAVINO -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Civil Service
  and  Pensions  --  reported  favorably from said committee, ordered to
  first and second report, ordered  to  a  third  reading,  amended  and
  ordered reprinted, retaining its place in the order of third reading

AN  ACT  to amend the retirement and social security law, in relation to
  investments by public pension funds

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

  Section  1.  Paragraph  (a)  of  subdivision  9  of section 177 of the
retirement and social security law, as amended by chapter 22 of the laws
of 2006, is amended to read as follows:
  (a) the investments by a fund made pursuant to this subdivision  shall
not  at any time exceed [twenty-five] THIRTY per centum of the assets of
such fund;
  S 2. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This bill would amend subdivision 9 of Section 177 of  the  Retirement
and  Social  security  Law  to  increase to 30% the percentage of assets
which may be invested by the New York State Teachers' Retirement  System
in  those investments that aren't otherwise specifically permitted under
the other subdivisions of this section. The current limit is 25%.
  If this bill is enacted, any cost  or  savings  to  the  employers  of
members  of  the New York State Teachers' Retirement System would depend
on the investment performance of any  assets  that  are  invested  in  a
different  manner  due  to  this  change in the investment restrictions.
Additional investment income results in lower required employer contrib-
utions, and vice-versa.
  Employee data is from the System's  most  recent  actuarial  valuation
files,  consisting  of  data provided by the employers to the Retirement
System.  Data distributions and statistics can be found in the  System's
Comprehensive  Annual  Financial  Report  (CAFR).  System  assets are as
reported in the System's financial statements, and can also be found  in

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

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