S T A T E O F N E W Y O R K
________________________________________________________________________
7353--B
2017-2018 Regular Sessions
I N A S S E M B L Y
April 24, 2017
___________
Introduced by M. of A. BUCHWALD, NOLAN, McDONALD, ABINANTI, M. G. MILL-
ER, LUPARDO, DICKENS, WILLIAMS, GUNTHER, BRINDISI, SKOUFIS, JENNE,
JONES, D'URSO, JAFFEE, ORTIZ, DiPIETRO, McDONOUGH, MONTESANO, BRABE-
NEC, GIGLIO, MORINELLO, CROUCH, LAWRENCE, STECK, GOTTFRIED, LIFTON,
CAHILL, FAHY, HAWLEY, PAULIN, WOERNER, FINCH, MOSLEY, B. MILLER, RAIA,
OTIS, NORRIS, GALEF, BLANKENBUSH, WALLACE -- Multi-Sponsored by -- M.
of A. FRIEND, MAGEE, RA, SIMON, THIELE -- (at request of the New York
State Teachers' Retirement System) -- read once and referred to the
Committee on Education -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee -- recommitted
to the Committee on Education in accordance with Assembly Rule 3, sec.
2 -- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee
AN ACT to amend the general municipal law, in relation to allowing
certain school districts and boards of cooperative educational
services to establish a retirement contribution reserve fund for the
purposes of the New York state teachers' retirement system
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraphs b and c of subdivision 1 of section 6-r of the
general municipal law, as added by chapter 260 of the laws of 2004, are
amended to read as follows:
b. "Participating employer" means: (I) a participating employer as
defined in subdivision twenty of section two of the retirement and
social security law or in subdivision twenty of section three hundred
two of such law; OR (II) A PARTICIPATING EMPLOYER AS DEFINED IN SUBDIVI-
SION THREE OF SECTION FIVE HUNDRED ONE OF THE EDUCATION LAW.
c. "Retirement contribution" shall mean all or any portion of the
amount payable by a municipal corporation to:(I) either the New York
state and local employees' retirement system or the New York state and
local police and fire retirement system pursuant to section seventeen or
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11188-03-8
A. 7353--B 2
three hundred seventeen of the retirement and social security law; OR
(II) THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM PURSUANT TO SECTION
FIVE HUNDRED TWENTY-ONE OF THE EDUCATION LAW.
§ 2. Subdivision 2 of section 6-r of the general municipal law, as
added by chapter 260 of the laws of 2004, is amended to read as follows:
2. The governing board of any municipal corporation which is also a
participating employer by resolution may establish a retirement contrib-
ution reserve fund for the purpose of (A) financing retirement contrib-
utions, AND/OR (B) IN THE CASE OF A MUNICIPAL CORPORATION WHICH IS A
PARTICIPATING EMPLOYER AS DEFINED IN SUBDIVISION THREE OF SECTION FIVE
HUNDRED ONE OF THE EDUCATION LAW, FINANCING APPROPRIATIONS AUTHORIZED BY
LAW IN ORDER TO OFFSET ALL OR A PORTION OF THE AMOUNT DEDUCTED FROM THE
MONEYS APPORTIONED TO THE MUNICIPAL CORPORATION FROM THE STATE FOR THE
SUPPORT OF COMMON SCHOOLS PURSUANT TO SECTION FIVE HUNDRED TWENTY-ONE OF
THE EDUCATION LAW.
§ 3. Section 6-r of the general municipal law is amended by adding a
new subdivision 2-a to read as follows:
2-A. WITH RESPECT TO A MUNICIPAL CORPORATION WHICH IS A PARTICIPATING
EMPLOYER AS DEFINED IN SUBDIVISION THREE OF SECTION FIVE HUNDRED ONE OF
THE EDUCATION LAW, WHICH ELECTS TO UTILIZE A RETIREMENT CONTRIBUTION
RESERVE FUND (A) TO FINANCE RETIREMENT CONTRIBUTIONS TO THE NEW YORK
STATE TEACHERS' RETIREMENT SYSTEM PURSUANT TO SECTION FIVE HUNDRED TWEN-
TY-ONE OF THE EDUCATION LAW AND/OR (B) TO OFFSET ALL OR A PORTION OF THE
AMOUNT DEDUCTED FROM THE MONEYS APPORTIONED TO THE MUNICIPAL CORPORATION
FROM THE STATE FOR THE SUPPORT OF COMMON SCHOOLS PURSUANT TO SECTION
FIVE HUNDRED TWENTY-ONE OF THE EDUCATION LAW, SUCH MUNICIPAL CORPORATION
SHALL ESTABLISH A SUB-FUND WITHIN THE RETIREMENT CONTRIBUTION RESERVE
FUND, WHICH SHALL BE SEPARATELY ADMINISTERED CONSISTENT WITH THE
PROVISIONS OF THIS SECTION. SUCH MUNICIPAL CORPORATION MAY PAY INTO SUCH
SUB-FUND DURING ANY PARTICULAR FISCAL YEAR AN AMOUNT NOT TO EXCEED TWO
PER CENTUM OF THE TOTAL COMPENSATION OR SALARIES OF ALL TEACHERS IN THE
EMPLOY OF SAID MUNICIPAL CORPORATION WHO ARE MEMBERS OF THE NEW YORK
STATE TEACHERS' RETIREMENT SYSTEM PAID DURING THE IMMEDIATELY PRECEDING
FISCAL YEAR. THE BALANCE OF SUCH SUB-FUND MAY NOT EXCEED TEN PER CENTUM
OF THE TOTAL COMPENSATION OR SALARIES OF ALL TEACHERS IN THE EMPLOY OF
THE MUNICIPAL CORPORATION WHO ARE MEMBERS OF THE NEW YORK STATE TEACH-
ERS' RETIREMENT SYSTEM PAID DURING THE IMMEDIATELY PRECEDING FISCAL
YEAR. FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "TEACHER" SHALL
HAVE THE SAME MEANING AS SUCH TERM IS DEFINED UNDER SUBDIVISION FOUR OF
SECTION FIVE HUNDRED ONE OF THE EDUCATION LAW.
§ 4. Subdivision 5 of section 6-r of the general municipal law, as
added by chapter 260 of the laws of 2004, is amended to read as follows:
5. The governing board of such municipal corporation by resolution may
authorize expenditures from a retirement contribution reserve fund.
Except as otherwise provided by law, moneys in a retirement contribution
reserve fund may only be expended (A) to finance retirement contrib-
utions, AND/OR (B) IN THE CASE OF A MUNICIPAL CORPORATION WHICH IS A
PARTICIPATING EMPLOYER, AS DEFINED IN SUBDIVISION THREE OF SECTION FIVE
HUNDRED ONE OF THE EDUCATION LAW, FOR APPROPRIATIONS AUTHORIZED BY LAW
IN ORDER TO OFFSET ALL OR A PORTION OF THE AMOUNT DEDUCTED FROM THE
MONEYS APPORTIONED TO THE PARTICIPATING EMPLOYER FROM THE STATE FOR THE
SUPPORT OF COMMON SCHOOLS PURSUANT TO SECTION FIVE HUNDRED TWENTY-ONE OF
THE EDUCATION LAW. WITH RESPECT TO A MUNICIPAL CORPORATION WHICH IS A
PARTICIPATING EMPLOYER AS DEFINED IN SUBDIVISION THREE OF SECTION FIVE
HUNDRED ONE OF THE EDUCATION LAW, EXPENDITURES FROM THE RETIREMENT
CONTRIBUTION RESERVE FUND TO FINANCE RETIREMENT CONTRIBUTIONS TO THE NEW
A. 7353--B 3
YORK STATE TEACHERS' RETIREMENT SYSTEM PURSUANT TO SECTION FIVE HUNDRED
TWENTY-ONE OF THE EDUCATION LAW AND/OR TO OFFSET ALL OR A PORTION OF THE
AMOUNT DEDUCTED FROM THE MONEYS APPORTIONED TO THE MUNICIPAL CORPORATION
FROM THE STATE FOR THE SUPPORT OF COMMON SCHOOLS PURSUANT TO SECTION
FIVE HUNDRED TWENTY-ONE OF THE EDUCATION LAW MAY ONLY BE MADE FROM THE
SUB-FUND ESTABLISHED PURSUANT TO SUBDIVISION TWO-A OF THIS SECTION.
§ 5. Section 6-r of the general municipal law is amended by adding a
new subdivision 11 to read as follows:
11. THE GOVERNING BOARD OF A MUNICIPAL CORPORATION WHICH IS A PARTIC-
IPATING EMPLOYER AS DEFINED IN SUBDIVISION THREE OF SECTION FIVE HUNDRED
ONE OF THE EDUCATION LAW BY RESOLUTION MAY (A) AUTHORIZE THE TRANSFER OF
ALL OR A PORTION OF THE MONIES IN THE SEPARATELY ADMINISTERED SUB-FUND
AS ESTABLISHED UNDER SUBDIVISION TWO-A OF THIS SECTION TO THE RETIREMENT
CONTRIBUTION RESERVE FUND, AND/OR (B) AUTHORIZE THE TRANSFER OF ALL OR A
PORTION OF THE MONIES IN THE RETIREMENT CONTRIBUTION RESERVE FUND TO THE
SEPARATELY ADMINISTERED SUB-FUND AS PROVIDED IN SUBDIVISION TWO-A OF
THIS SECTION, SUBJECT TO THE LIMITS ON ANNUAL PAYMENTS INTO THE SUB-FUND
AND THE BALANCE OF THE SUB-FUND SPECIFIED BY THE SUBDIVISION TWO-A OF
THIS SECTION.
§ 6. This act shall take effect immediately.
FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
This bill would amend Section 6-r of the General Municipal Law to
allow eligible participating employers of the New York State Teachers'
Retirement System (NYSTRS) to establish a reserve sub-fund within the
retirement contribution reserve fund for the purpose of reserving money
to offset future required contributions to NYSTRS. An employer may pay
into such sub-fund during any particular fiscal year an amount not to
exceed two percent of the total compensation or salaries of all teachers
employed by the employer who are members of NYSTRS paid during the imme-
diately preceding fiscal year. Additionally, the total balance in the
sub-fund shall not exceed ten percent of the total compensation or sala-
ries of all teachers employed by the employer who are members of NYSTRS
paid during the immediately preceding final year.
The governing board of the employer may by resolution authorize
expenditures from the retirement contribution reserve fund. The govern-
ing board of the employer may also by resolution authorize the transfer
of money between the separately administered sub-fund and the retirement
contribution reserve fund subject to the limits on annual payments into
the sub-fund and the balance of the sub-fund as provided in this bill.
It is estimated that there will be no annual cost to the employers of
members of the New York State Teachers' Retirement System if this bill
is enacted.
Member 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
the CAFR. Actuarial assumptions and methods are provided in the System's
Actuarial Valuation Report.
The source of this estimate is Fiscal Note 2018-2 dated October 6,
2017 prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2018 Legislative Session.
I, Richard A. Young, am the Actuary for the New York State Teachers'
Retirement System. I am a member of the American Academy of Actuaries
and I meet the Qualification Standards of the American Academy of Actu-
aries to render the actuarial opinion contained herein.