Bill Text: NY A05759 | 2019-2020 | General Assembly | Introduced

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Bill Title: Relates to allowing certain school districts and BOCES to establish a retirement contribution reserve fund for the purposes of the NYS teachers' retirement system.

Spectrum: Moderate Partisan Bill (Democrat 4-1)

Status: (Introduced - Dead) 2019-04-24 - enacting clause stricken [A05759 Detail]

Download: New_York-2019-A05759-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5759
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    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:
     1    Section  1.  Paragraphs b and c of subdivision 1 of section 6-r of the
     2  general municipal law, as added by chapter 260 of the laws of 2004,  are
     3  amended to read as follows:
     4    b.  "Participating  employer"  means:  (i) a participating employer as
     5  defined in subdivision twenty of  section  two  of  the  retirement  and
     6  social  security  law  or in subdivision twenty of section three hundred
     7  two of such law; or (ii) a participating employer as defined in subdivi-
     8  sion three of section five hundred one of the education law.
     9    c. "Retirement contribution" shall mean all  or  any  portion  of  the
    10  amount  payable  by  a  municipal corporation to:(i) either the New York
    11  state and local employees' retirement system or the New York  state  and
    12  local police and fire retirement system pursuant to section seventeen or
    13  three  hundred  seventeen  of the retirement and social security law; or
    14  (ii) the New York state teachers' retirement system pursuant to  section
    15  five hundred twenty-one of the education law.
    16    §  2.  Subdivision  2  of section 6-r of the general municipal law, as
    17  added by chapter 260 of the laws of 2004, is amended to read as follows:
    18    2. The governing board of any municipal corporation which  is  also  a
    19  participating employer by resolution may establish a retirement contrib-
    20  ution  reserve fund for the purpose of (a) financing retirement contrib-
    21  utions, and/or (b) in the case of a municipal  corporation  which  is  a
    22  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
     1  hundred one of the education law, financing appropriations authorized by
     2  law in order to offset all or a portion of the amount deducted from  the
     3  moneys  apportioned  to the municipal corporation from the state for the
     4  support of common schools pursuant to section five hundred twenty-one of
     5  the education law.
     6    §  3.  Section 6-r of the general municipal law is amended by adding a
     7  new subdivision 2-a to read as follows:
     8    2-a. With respect to a municipal corporation which is a  participating
     9  employer  as defined in subdivision three of section five hundred one of
    10  the education law, which elects to  utilize  a  retirement  contribution
    11  reserve  fund  (a)  to  finance retirement contributions to the New York
    12  state teachers' retirement system pursuant to section five hundred twen-
    13  ty-one of the education law and/or (b) to offset all or a portion of the
    14  amount deducted from the moneys apportioned to the municipal corporation
    15  from the state for the support of common  schools  pursuant  to  section
    16  five hundred twenty-one of the education law, such municipal corporation
    17  shall  establish  a  sub-fund within the retirement contribution reserve
    18  fund,  which  shall  be  separately  administered  consistent  with  the
    19  provisions of this section. Such municipal corporation may pay into such
    20  sub-fund  during  any particular fiscal year an amount not to exceed two
    21  per centum of the total compensation or salaries of all teachers in  the
    22  employ  of  said  municipal  corporation who are members of the New York
    23  state teachers' retirement system paid during the immediately  preceding
    24  fiscal  year. The balance of such sub-fund may not exceed ten per centum
    25  of the total compensation or salaries of all teachers in the  employ  of
    26  the  municipal  corporation who are members of the New York state teach-
    27  ers' retirement system paid  during  the  immediately  preceding  fiscal
    28  year.  For  the  purposes  of this subdivision, the term "teacher" shall
    29  have the same meaning as such term is defined under subdivision four  of
    30  section five hundred one of the education law.
    31    §  4.  Subdivision  5  of section 6-r of the general municipal law, as
    32  added by chapter 260 of the laws of 2004, is amended to read as follows:
    33    5. The governing board of such municipal corporation by resolution may
    34  authorize expenditures from  a  retirement  contribution  reserve  fund.
    35  Except as otherwise provided by law, moneys in a retirement contribution
    36  reserve  fund  may  only  be expended (a) to finance retirement contrib-
    37  utions, and/or (b) in the case of a municipal  corporation  which  is  a
    38  participating  employer, as defined in subdivision three of section five
    39  hundred one of the education law, for appropriations authorized  by  law
    40  in  order  to  offset  all  or a portion of the amount deducted from the
    41  moneys apportioned to the participating employer from the state for  the
    42  support of common schools pursuant to section five hundred twenty-one of
    43  the  education  law.  With respect to a municipal corporation which is a
    44  participating employer as defined in subdivision three of  section  five
    45  hundred  one  of  the  education  law,  expenditures from the retirement
    46  contribution reserve fund to finance retirement contributions to the New
    47  York State teachers' retirement system pursuant to section five  hundred
    48  twenty-one of the education law and/or to offset all or a portion of the
    49  amount deducted from the moneys apportioned to the municipal corporation
    50  from  the  state  for  the support of common schools pursuant to section
    51  five hundred twenty-one of the education law may only be made  from  the
    52  sub-fund established pursuant to subdivision two-a of this section.
    53    §  5.  Section 6-r of the general municipal law is amended by adding a
    54  new subdivision 11 to read as follows:
    55    11. The governing board of a municipal corporation which is a  partic-
    56  ipating employer as defined in subdivision three of section five hundred
        A. 5759                             3
     1  one of the education law by resolution may (a) authorize the transfer of
     2  all  or  a portion of the monies in the separately administered sub-fund
     3  as established under subdivision two-a of this section to the retirement
     4  contribution reserve fund, and/or (b) authorize the transfer of all or a
     5  portion of the monies in the retirement contribution reserve fund to the
     6  separately  administered  sub-fund  as  provided in subdivision two-a of
     7  this section, subject to the limits on annual payments into the sub-fund
     8  and the balance of the sub-fund specified by the  subdivision  two-a  of
     9  this section.
    10    § 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.