Assembly Bill A11522

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11522
 
                           I N  A S S E M B L Y
 
                               May 28, 2026
                                ___________
 
 Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Solages) --
   read once and referred to the Committee on Local Governments
 
 AN ACT to amend the general municipal law, in relation to other post-em-
   ployment benefits reserve funds for counties, cities, villages,  towns
   and school districts
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general municipal  law  is  amended  by  adding  a  new
 section 6-w to read as follows:
   §  6-W.  OTHER  POST-EMPLOYMENT  BENEFITS  RESERVE FUNDS FOR COUNTIES,
 CITIES, VILLAGES, TOWNS  AND  SCHOOL  DISTRICTS.  1.  AS  USED  IN  THIS
 SECTION:
   A. THE TERM "GOVERNING BOARD", INSOFAR AS IT IS USED IN REFERENCE TO A
 VILLAGE, SHALL MEAN THE BOARD OF TRUSTEES THEREOF; INSOFAR AS IT IS USED
 IN REFERENCE TO A TOWN, SHALL MEAN THE TOWN BOARD THEREOF; INSOFAR AS IT
 IS USED IN REFERENCE TO A COUNTY, SHALL MEAN THE LEGISLATIVE BODY THERE-
 OF;  INSOFAR AS IT IS USED IN REFERENCE TO A CITY, SHALL MEAN THE "LOCAL
 LEGISLATIVE BODY" THEREOF, AS THAT TERM IS DEFINED IN SUBDIVISION  SEVEN
 OF  SECTION  TWO OF THE MUNICIPAL HOME RULE LAW, AS AMENDED FROM TIME TO
 TIME; INSOFAR AS IT IS USED IN REFERENCE TO  A  SCHOOL  DISTRICT,  SHALL
 MEAN THE BOARD OF EDUCATION OR BOARD OF TRUSTEES THEREOF.
   B.  THE  TERM "OTHER POST-EMPLOYMENT BENEFITS RESERVE FUNDS" OR "OPEB"
 SHALL MEAN BENEFITS, OTHER THAN PENSION BENEFITS, THAT A  COUNTY,  CITY,
 VILLAGE,  TOWN,  OR  SCHOOL  DISTRICT  IS  OBLIGATED OR HAS COMMITTED TO
 PROVIDE TO ELIGIBLE RETIRED EMPLOYEES AND  THEIR  DEPENDENTS,  INCLUDING
 BUT NOT LIMITED TO:
   (I)  HEALTH  INSURANCE,  INCLUDING MEDICAL, PRESCRIPTION DRUG, DENTAL,
 VISION, AND HEARING BENEFITS;
   (II) LIFE INSURANCE PROVIDED SEPARATELY FROM A PENSION PLAN;
   (III) DISABILITY BENEFITS PROVIDED SEPARATELY FROM A PENSION PLAN;
   (IV) LONG-TERM CARE BENEFITS; AND
   (V) ANY OTHER POST-EMPLOYMENT BENEFIT, OTHER THAN A  PENSION  BENEFIT,
 THAT  THE  GOVERNMENTAL  UNIT  HAS  A LEGAL, CONTRACTUAL, OR ESTABLISHED
 COMMITMENT TO PROVIDE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD16000-01-6
 A. 11522                            2
 
   C. THE TERM "ACTUARIAL VALUATION" SHALL MEAN THE DETERMINATION,  BY  A
 QUALIFIED  ACTUARY, OF THE PRESENT VALUE OF ALL PROJECTED BENEFITS TO BE
 PROVIDED THROUGH A GOVERNMENTAL  UNIT'S  OPEB  PLAN,  NET  OF  ANY  PLAN
 ASSETS, PERFORMED IN ACCORDANCE WITH GENERALLY ACCEPTED ACTUARIAL STAND-
 ARDS.
   D.  THE  TERM "QUALIFIED ACTUARY" SHALL MEAN A MEMBER IN GOOD STANDING
 OF THE AMERICAN ACADEMY OF ACTUARIES OR AN  INDIVIDUAL  WHO  HAS  DEMON-
 STRATED COMPETENCE IN THE AREA OF PUBLIC EMPLOYEE BENEFITS THROUGH RELE-
 VANT EXPERIENCE AND PROFESSIONAL CREDENTIALS.
   E. THE TERM "CHIEF FISCAL OFFICER" SHALL MEAN THE OFFICER CHARGED WITH
 THE  CUSTODY OR CONTROL OF MONEYS OF THE COUNTY, CITY, VILLAGE, TOWN, OR
 SCHOOL DISTRICT.
   2. THE GOVERNING BOARD OF ANY COUNTY, CITY, VILLAGE, TOWN,  OR  SCHOOL
 DISTRICT  MAY ESTABLISH ONE OR MORE OPEB RESERVE FUNDS FOR THE FINANCING
 OF ALL OR PART OF THE COST OF PROVIDING OTHER  POST-EMPLOYMENT  BENEFITS
 TO ELIGIBLE RETIRED EMPLOYEES AND THEIR DEPENDENTS.
   3. THERE MAY BE PAID INTO ANY SUCH FUND:
   A.  SUCH  AN AMOUNT AS MAY BE PROVIDED THEREFOR BY BUDGETARY APPROPRI-
 ATION OR RAISED BY TAX THEREFOR;
   B. SUCH REVENUES AS ARE NOT REQUIRED BY LAW TO BE PAID INTO ANY  OTHER
 FUND OR ACCOUNT;
   C. GIFTS, GRANTS, DONATIONS, OR OTHER CONTRIBUTIONS DESIGNATED FOR THE
 PURPOSE OF PROVIDING FOR OPEB OBLIGATIONS; AND
   D.  AMOUNTS RECEIVED BY THE GOVERNMENTAL UNIT AS A SPONSOR OF A QUALI-
 FIED RETIREE PRESCRIPTION  DRUG  PLAN  PURSUANT  TO  42  U.S.C.  SECTION
 1395W-132,  OR  ANY  SUCCESSOR  PROVISION,  IF AUTHORIZED BY VOTE OF THE
 GOVERNING BOARD.
   4. THE MONEYS IN EACH SUCH FUND SHALL BE DEPOSITED AND SECURED IN  THE
 MANNER  PROVIDED BY SECTION TEN OF THIS ARTICLE. THE GOVERNING BOARD, OR
 THE CHIEF FISCAL OFFICER OF SUCH  GOVERNMENTAL  UNIT  IF  THE  GOVERNING
 BOARD  SHALL DELEGATE THE DUTY TO SUCH OFFICER, MAY INVEST THE MONEYS IN
 EACH SUCH FUND IN THE MANNER PROVIDED IN SECTION ELEVEN OF THIS ARTICLE.
 ANY INTEREST EARNED OR CAPITAL GAINS REALIZED ON THE MONEYS SO DEPOSITED
 OR INVESTED SHALL ACCRUE TO AND BECOME PART OF EACH SUCH FUND. THE SEPA-
 RATE IDENTITY OF EACH SUCH FUND SHALL BE MAINTAINED, WHETHER ITS  ASSETS
 CONSIST OF CASH OR INVESTMENTS OR BOTH.
   5.  AN  EXPENDITURE  SHALL  BE  MADE FROM AN OPEB RESERVE FUND ONLY BY
 AUTHORIZATION  OF  THE  GOVERNING  BOARD  AND  ONLY  FOR  THE  FOLLOWING
 PURPOSES:
   A. PAYMENT OF, OR REIMBURSEMENT FOR, OTHER POST-EMPLOYMENT BENEFITS TO
 OR  ON  BEHALF  OF  ELIGIBLE  RETIRED EMPLOYEES AND THEIR DEPENDENTS, IN
 ACCORDANCE WITH THE TERMS OF THE GOVERNMENTAL UNIT'S OPEB PLAN OR APPLI-
 CABLE COLLECTIVE BARGAINING AGREEMENT; AND/OR
   B. PAYMENT OF THE REASONABLE AND NECESSARY COSTS OF ADMINISTERING  THE
 FUND,  INCLUDING BUT NOT LIMITED TO ACTUARIAL SERVICES, INCLUDING NECES-
 SARY ACTUARIAL VALUATIONS, AUDITING, INVESTMENT  MANAGEMENT,  AND  LEGAL
 COUNSEL.
   6.  A.  WITHIN TWO YEARS OF THE ESTABLISHMENT OF AN OPEB RESERVE FUND,
 AND AT LEAST BIENNIALLY THEREAFTER, THE GOVERNMENTAL UNIT  SHALL  OBTAIN
 AN ACTUARIAL VALUATION OF ITS OPEB LIABILITIES FROM A QUALIFIED ACTUARY.
   B.  A COPY OF EACH ACTUARIAL VALUATION SHALL BE FILED WITH THE GOVERN-
 ING BOARD AND SHALL BE MADE AVAILABLE FOR PUBLIC INSPECTION.
   C. THE GOVERNING BOARD SHALL REVIEW THE ACTUARIAL VALUATION AND  SHALL
 CONSIDER ADJUSTMENTS TO ITS CONTRIBUTION LEVELS AS MAY BE APPROPRIATE IN
 LIGHT OF THE VALUATION.
 A. 11522                            3
 
   7.  A. THE CHIEF FISCAL OFFICER SHALL KEEP A SEPARATE ACCOUNT FOR EACH
 FUND ESTABLISHED. SUCH ACCOUNT SHALL SHOW:
   (I) THE DATE AND AMOUNT OF EACH SUM PAID INTO THE FUND;
   (II) THE INTEREST EARNED BY SUCH FUND;
   (III)  THE  CAPITAL GAINS OR LOSSES RESULTING FROM THE SALE OF INVEST-
 MENTS OF THE FUND;
   (IV) THE INTEREST OR CAPITAL GAINS WHICH HAVE ACCRUED TO THE FUND;
   (V) THE AMOUNT, DATE, AND PURPOSE OF EACH WITHDRAWAL  FROM  THE  FUND;
 AND
   (VI) THE ASSETS OF THE FUND, INDICATING THE CASH BALANCE THEREIN AND A
 SCHEDULE OF THE AMOUNTS INVESTED IN FEDERAL OR STATE OBLIGATIONS.
   B.  THE  CHIEF FISCAL OFFICER, AT THE TERMINATION OF EACH FISCAL YEAR,
 SHALL RENDER A DETAILED REPORT OF THE OPERATION AND CONDITION OF EACH OF
 SUCH FUNDS TO THE GOVERNING BOARD.
   8. A. THE MEMBERS OF THE GOVERNING BOARD SHALL BE GUILTY OF  A  MISDE-
 MEANOR IF THEY:
   (I)  AUTHORIZE  A WITHDRAWAL FROM AN OPEB RESERVE FUND FOR ANY PURPOSE
 OTHER THAN THOSE SET FORTH IN SUBDIVISION FIVE OF THIS  SECTION,  EXCEPT
 AS PROVIDED IN SUBDIVISIONS SIX AND SEVEN OF THIS SECTION; OR
   (II) EXPEND ANY MONEY WITHDRAWN FROM THE FUND FOR A PURPOSE OTHER THAN
 THAT FOR WHICH IT WAS AUTHORIZED TO BE WITHDRAWN.
   B. THE PROVISIONS OF THIS PARAGRAPH SHALL BE CONSIDERED TO BE IN ADDI-
 TION TO ANY OTHER PENALTIES PROVIDED BY LAW.
   9. THIS SECTION SHALL NOT BE CONSTRUED TO:
   A.  CREATE,  EXPAND,  OR MODIFY ANY SUBSTANTIVE RIGHT OF ANY EMPLOYEE,
 RETIREE, OR DEPENDENT TO RECEIVE OTHER POST-EMPLOYMENT BENEFITS;
   B. IMPAIR THE  OBLIGATION  OF  ANY  EXISTING  CONTRACT  OR  COLLECTIVE
 BARGAINING AGREEMENT;
   C.  LIMIT  THE  AUTHORITY OF A GOVERNMENTAL UNIT TO MODIFY, REDUCE, OR
 ELIMINATE OPEB BENEFITS TO THE EXTENT OTHERWISE PERMITTED BY LAW; OR
   D. ESTABLISH THE FUND AS A TRUST  FOR  PURPOSES  OF  THE  GOVERNMENTAL
 ACCOUNTING  STANDARDS  BOARD  STATEMENTS NO. 74 AND 75, OR ANY SUCCESSOR
 STATEMENTS, UNLESS THE GOVERNING BOARD SEPARATELY  ELECTS  TO  ESTABLISH
 SUCH A FUND AS AN IRREVOCABLE TRUST MEETING THE CRITERIA SET FORTH THER-
 EIN.
   §  2.  This  act  shall take effect immediately and shall apply to all
 other post-employment benefits reserve funds  established  on  or  after
 such effective date.