Senate Bill S8660

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8660
 
                             I N  S E N A T E
 
                             February 27, 2024
                                ___________
 
 Introduced by Sen. FERNANDEZ -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN  ACT  in  relation  to  directing  the  commissioner  of taxation and
   finance, and certain other agencies and offices, to  conduct  a  study
   and  to make recommendations regarding the optimal pension and retire-
   ment plan alternatives which could be made available to not-for-profit
   human services corporations in this state
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The commissioner of taxation and finance, the state treas-
 urer, the superintendent of  financial  services,  and  the  comptroller
 shall form a study group to jointly conduct a study and make recommenda-
 tions  regarding  the  optimal  pension and retirement plan alternatives
 that may be made available to not-for-profit human services corporations
 in this state, that are intended to  significantly  improve  recruitment
 and  retention  of  employees.  The  state  treasurer shall serve as the
 chairperson of such study group.  In conducting the study  and  develop-
 ment  of recommendations, the study group shall consult with the commis-
 sioner of mental health, the commissioner of  the  office  of  addiction
 services  and  supports, the commissioner of the office for persons with
 developmental disabilities, the commissioner of    children  and  family
 services,  the  commissioner  of  the  office  of  temporary  disability
 services, and the commissioner of health. The study shall at  a  minimum
 provide  the governor and the legislature with information and recommen-
 dations regarding existing or new pension and retirement options for the
 benefit of employees of not-for-profit human services corporations doing
 business in New York state.
   § 2. The study group shall consult with statewide associations repres-
 enting human services providers and organizations, and may consult  with
 any  other organization, government entity, or person in the development
 of the report required under section three of this act.
   § 3. The study group shall submit to the governor, the temporary pres-
 ident of the senate and the speaker of the assembly a report  containing
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10938-03-4
              

 S. 8660                             2
 
 information  and  recommendations,  including  but  not  limited  to the
 following:
   a.  a  review  of  the  various  types  of pension and retirement plan
 options in New York state and throughout the country, including but  not
 limited  to  defined  benefit  plans,  such  as cash balance and benefit
 equalization plans, single  employer  plans,  multiple  employer  plans,
 defined  contribution  plans,  internal revenue code 401(a), 401(k), and
 403(b) plans, simplified employee  pension  plans,  and  other  possible
 options;
   b.  a  review of the various rights, responsibilities, protections and
 advantages of plans that are governed by  federal  laws  and  guidelines
 under  the  Employee  Retirement Income Security Act of 1974 (ERISA) and
 applicable provisions of the internal revenue code;
   c. a review of the various existing pension and retirement plans  used
 by not-for-profit corporations in New York state and across the country;
   d.  a review of the following issues and considerations in determining
 the optimal pension and retirement  plan  options,  including:  employer
 contributions,  matching  contributions, employee contributions, manage-
 ment of investments, benefit payment options  and  amounts  of  benefits
 paid,  when  benefits  are  vested or guaranteed, eligible participants,
 automatic  enrollment,  plan  benefit  reduction  possibilities,  notice
 requirements  including  notice  to participants of underfunded plans or
 other critical information, survivor or beneficiary benefits upon  death
 of participant, participant options if employment is terminated prior to
 retirement,  responsibilities  of plan fiduciaries, tax relief benefits,
 taxability of payment benefits, early distributions and  penalties,  and
 the risks and benefits of relevant pension and retirement plan options;
   e.  a  review  of  laws  and  regulations used by other states and the
 federal government to regulate the marketplace;
   f. consideration of ways  in  which  payment  of  certain  pension  or
 retirement  benefits can be guaranteed if the plan is terminated without
 sufficient funds to pay vested benefits, including through  the  federal
 Pension Benefit Guarantee Corporation;
   g.  other  relevant  fiscal  and  policy considerations, including the
 impact of inflation and cost of living adjustments on pension or retire-
 ment plans; and
   h. final recommendations regarding the optimal pension  or  retirement
 plans  that  may  exist  or  be  made  available to not-for-profit human
 services corporations in New York state and that are intended to signif-
 icantly improve recruitment and  retention  of  employees,  as  well  as
 actions the state may take to develop, fund, implement, and sustain such
 pension or retirement plan options for such not-for-profit corporations.
   §  4.  The study group shall deliver the report required under section
 three of this act to the governor and the legislature,  and  the  member
 agencies and offices of such study group shall post such report on their
 public websites, no later than November 15, 2024.
   § 5. This act shall take effect immediately.