S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5759
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 15, 2019
                                ___________
 
 Introduced  by  M.  of  A. BUCHWALD, BENEDETTO -- (at request of the New
   York State Teachers' Retirement System) -- read once and  referred  to
   the Committee on Education
 
 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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07916-03-9

 A. 5759                             2
 
 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
 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

 A. 5759                             3
 
 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
 the sub-fund shall not exceed ten percent of the total  compensation  or
 salaries  of  all  teachers  employed by the employer who are members of
 NYSTRS paid during the immediately preceding fiscal 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 2019-2 dated October 5,
 2018 prepared by the Actuary of the New York State Teachers'  Retirement
 System and is intended for use only during the 2019 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.