Bill Text: NY A01292 | 2013-2014 | General Assembly | Introduced

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Bill Title: Authorizes the adoption of a bond resolution in connection with payments to a retirement system.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2014-01-08 - referred to governmental employees [A01292 Detail]

Download: New_York-2013-A01292-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1292
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 9, 2013
                                      ___________
       Introduced  by  M.  of A. ZEBROWSKI, JAFFEE -- read once and referred to
         the Committee on Governmental Employees
       AN ACT to amend the retirement and social security law and  the  general
         municipal  law,  in  relation  to  authorizing  the adoption of a bond
         resolution in connection with payments to a retirement system
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Paragraph 1 of subdivision d of section 19-a of the retire-
    2  ment  and social security law, as added by section 1 of part TT of chap-
    3  ter 57 of the laws of 2010, is amended and a new paragraph 4 is added to
    4  read as follows:
    5    (1) For any given fiscal year for which an employer's average actuari-
    6  al contribution rate exceeds the system graded  contribution  rate,  the
    7  employer  shall  pay  to  the  retirement  system an amount equal to the
    8  employer's annual bill for such year or, in lieu of  paying  the  entire
    9  annual  bill,  the  employer  may  pay an amount equal to the employer's
   10  annual bill less all or a portion of the employer's amount eligible  for
   11  amortization  for  the fiscal year. If in accordance with this paragraph
   12  the employer's payment to the retirement system is less than the  entire
   13  amount  of  the  employer's annual bill, then the difference between the
   14  employer's annual bill, and the amount actually paid by the employer  to
   15  the retirement system exclusive of any amount from the employer contrib-
   16  ution  reserve  fund  applied to reduce the employer's payment, shall be
   17  the amount amortized for the fiscal year. The amount amortized  for  the
   18  fiscal year shall EITHER be paid to the retirement system in equal annu-
   19  al  installments  over  a  ten-year  period, with interest on the unpaid
   20  balance at a rate determined by the  comptroller  which  approximates  a
   21  market  rate  of  return  on  taxable fixed rate securities with similar
   22  terms issued by comparable issuers, and with the first  installment  due
   23  in  the  immediately  succeeding  fiscal  year  OR  SHALL BE PAID TO THE
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00385-01-3
       A. 1292                             2
    1  RETIREMENT SYSTEM THROUGH THE FINANCING OF A BOND RESOLUTION ELECTED  BY
    2  THE  LOCAL  GOVERNING BOARD PURSUANT TO THE PROVISIONS OF PARAGRAPH FOUR
    3  OF THIS SUBDIVISION.
    4    (4)  THE  EMPLOYER SHALL HAVE THE AUTHORITY TO ADOPT A BOND RESOLUTION
    5  FOR THE PURPOSES OF THIS SECTION.  THE  GOVERNING  BOARD  MAY  ELECT  TO
    6  PROVIDE  FOR  THE  FINANCING OF THE AMOUNT ELIGIBLE FOR AMORTIZATION DUE
    7  FROM SUCH EMPLOYER. THE ISSUANCE OF THE BOND PURSUANT  TO  THIS  SECTION
    8  SHALL  COMPLY  WITH  THE  LOCAL FINANCE LAW AND MAY ONLY BE USED FOR THE
    9  PURPOSE OF PAYMENT TO THE RETIREMENT SYSTEM FOR  THE  EMPLOYER'S  ANNUAL
   10  BILL.  THE  PROCEEDS  OF  SUCH  BOND ISSUANCE SHALL BE DEPOSITED BY SUCH
   11  EMPLOYER IN A RETIREMENT CONTRIBUTION RESERVE ACCOUNT ESTABLISHED PURSU-
   12  ANT TO SECTION SIX-R OF THE GENERAL MUNICIPAL LAW AND SHALL  BE  APPLIED
   13  TO THE PAYMENT TO THE RETIREMENT SYSTEM AS PROVIDED IN THIS SECTION.
   14    S  2.  Section 6-r of the general municipal law is amended by adding a
   15  new subdivision 11 to read as follows:
   16    11. A PARTICIPATING EMPLOYER WHICH HAS DEPOSITED  THE  PROCEEDS  OF  A
   17  BOND  ISSUANCE AUTHORIZED PURSUANT TO PARAGRAPH FOUR OF SUBDIVISION D OF
   18  SECTION NINETEEN-A OF THE RETIREMENT AND SOCIAL SECURITY LAW IS  AUTHOR-
   19  IZED  TO  WITHDRAW ONLY IN ACCORDANCE TO THE PROVISIONS OF PARAGRAPH ONE
   20  OF SUBDIVISION D OF SECTION NINETEEN-A  OF  THE  RETIREMENT  AND  SOCIAL
   21  SECURITY LAW.
   22    S 3. This act shall take effect immediately.