Assembly Bill A9643A

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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Sponsored By

Archive: Last Bill Status - Vetoed by Governor


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Vetoed By Governor
  • Signed By Governor

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Bill Amendments

co-Sponsors

2013-A9643 - Details

See Senate Version of this Bill:
S7331
Law Section:
Retirement and Social Security Law
Laws Affected:
Amd §177, R & SS L

2013-A9643 - Summary

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

2013-A9643 - Bill Text download pdf

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

                                  9643

                          I N  A S S E M B L Y

                              May 13, 2014
                               ___________

Introduced  by M. of A. FARRELL, ABBATE -- read once and referred to the
  Committee on Governmental Employees

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.
                                                           LBD14954-03-4
              

co-Sponsors

2013-A9643A (ACTIVE) - Details

See Senate Version of this Bill:
S7331
Law Section:
Retirement and Social Security Law
Laws Affected:
Amd §177, R & SS L

2013-A9643A (ACTIVE) - Summary

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

2013-A9643A (ACTIVE) - Bill Text download pdf

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

                                 9643--A

                          I N  A S S E M B L Y

                              May 13, 2014
                               ___________

Introduced  by M. of A. FARRELL, ABBATE -- read once and referred to the
  Committee on  Governmental  Employees  --  reference  changed  to  the
  Committee  on Ways and Means -- reported and referred to the Committee
  on  Rules  --  Rules  Committee  discharged,  bill  amended,   ordered
  reprinted as amended and recommitted to the Committee on Rules

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.
                                                           LBD14954-07-4
              

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