§ 16. Annual appropriation by state. a. Upon the basis of each annual
actuarial valuation and appraisal provided for in this article, the
comptroller, on or before the fifteenth day of October of each year,
shall prepare and file with the director of the budget and the
chairperson of the senate finance committee and the assembly ways and
means committee an itemized estimate of the amounts necessary to be
appropriated by the state to the pension accumulation fund and the New
York state public employees group life insurance plan for the next
fiscal year and an estimate of the payments required for the current
fiscal year. Such amounts shall be sufficient to provide for payment in
full for (i) the estimated obligations of the state to the retirement
system for such respective fiscal years; and (ii) any actual obligations
of the state to the retirement system remaining unpaid from the prior
fiscal year, plus interest on such amount to be paid in the next fiscal
year. If, the state overpaid its actual obligation to the retirement
system for the prior fiscal year, the amount estimated in the filing
required by this subdivision for the next fiscal year shall reflect the
amount of such overpayment, plus interest on such amount, as a reduction
in amounts that would otherwise be estimated to be due the retirement
system from the state. The amount appropriated or so much thereof as may
be required shall be paid from the state treasury on warrant of the
comptroller into the pension accumulation fund and the New York state
public employees group life insurance plan, as appropriate, on or before
March first of each state fiscal year. The amount paid shall be based on
an estimate provided by the comptroller which shall reflect the most
recent data on annual salary and other related components, and be
calculated in accordance with pension benefits authorized as of that
time. Such estimate shall be provided by the comptroller within fifteen
days of a request by the director of the budget. For the purposes of
this section, "interest" shall mean the rate or rates of interest used
in the actuarial valuations covering the period of time over which such
interest is computed.

b. On or before the fifteenth day of October of each year the
comptroller shall file with the director of the budget and the
chairperson of the senate finance committee and the assembly ways and
means committee an itemized estimate of the expenses of the retirement
system for the ensuing year. The director of the budget may revise and
amend such estimate. After such revision and amendment, if any, such
director shall approve the same for inclusion in the executive budget.
No monies shall be paid out of the pension accumulation fund for such
expenses unless expenditures therefor shall have been authorized by law.

c. Whenever the compensation of any member of the retirement system is
paid from a special or administrative fund provided for by law, all
contributions to the retirement system including a proportionate share
of the administrative expense thereof, which otherwise would be
chargeable to the general fund of the state, shall, with the approval of
the director of the budget, be paid from such special or administrative
fund.

d. Such estimated amounts provided in subdivision a of this section
shall be revised to reflect updated information, including trends in
salary growth and investment earnings through November thirtieth of the
current fiscal year and resubmitted to the director of the budget and
the chairperson of the senate finance committee and the assembly ways
and means committee on or before December fifteenth of the current
fiscal year. A revised actuarial estimate, including an explanation of
any changes from the estimates submitted on October fifteenth of the
current fiscal year, shall also accompany such resubmission.

e. By February seventh of the current fiscal year, the comptroller
shall notify the director of the budget and the chaiperson of the senate
finance committee and the assembly ways and means committee of his or
her revised estimate of the state's contribution to the pension
accumulation fund and the New York state public employees group life
insurance plan for the current and next fiscal years based on updated
information through January thirty-first of the current fiscal year.
Such notification shall be accompanied by a revised actuarial estimate,
including an explanation of any changes from the estimate submitted on
December fifteenth of the current fiscal year.

f. After reviewing the estmates and submissions for the next fiscal
year, the director of the budget, after consultation with the
comptroller's office, shall include the necessary item of appropriation
for the next fiscal year payment in the next annual appropriation bill
presented to the legislature. Such consultation shall include
discussions regarding the reasons and assumptions used for any potential
adjustments to prior estimates and submissions and, to the extent
feasible or appropriate, reflect actual calculations provided by the
comptroller's office. The director of the budget shall also include in
such appropriation bill, if necessary, an appropriation equal to the
amount of unpaid obligations of the state to the retirement system for
the prior fiscal year.

g. Such estimates provided in subdivisions a, d and e of this section
shall be accompanied by an actuarial report stating the assumptions used
in calculating each of the estimates, including but not limited to:

1. projected growth in the billable salary base from the prior fiscal
year, in total and by tier for the state and local governments for each
retirement system;

2. composition of the portfolio;

3. return on common stock investments, expressed as a percentage;

4. calculation of the actuarial value of common stock;

5. return on investments other than common stock, expressed as a
percentage; and

6. itemization of the change from the state's prior year contribution,
either actual or estimated, due to legislative changes in benefits, tier
shift, salary base growth, investment return, and any other factors
deemed appropriate for explaining such change.

h. In addition to the above mentioned reporting requirements, the
actuarial report shall also include the following information for each
retirement system for the current fiscal year and estimated amounts for
the next fiscal year:

1. the post-retirement supplemental payments and a description of the
handling of such amounts in the valuation;

2. the group life insurance plan (GLIP) costs and assets allocated to
GLIP;

3. the administrative expenses and a description of the handling of
such amount in the valuation;

4. the market value and actuarial asset value of equities;

5. a state reconciliation of the amounts paid and the final amounts
for the two prior fiscal years.