§ 6-R — Retirement contribution reserve funds 1

§ 6-r. Retirement contribution reserve funds 1. As used in this\nsection:\n a. "Municipal corporation" means a municipal corporation as defined in\nsection two of this chapter, school district (except a school district\nin a city with a population of one hundred twenty-five thousand or\nmore), board of cooperative educational services, fire district,\ndistrict corporation, police district, and special improvement district\ngoverned by a separate board of commissioners.\n b. "Participating employer" means: (i) a participating employer as\ndefined in subdivision twenty of section two of the retirement and\nsocial security law or in subdivision twenty of section three hundred\ntwo of such law; or (ii) a participating employer as defined in\nsubdivision three of section five hundred one of the education law.\n c. "Retirement contribution" shall mean all or any portion of the\namount payable by a municipal corporation to: (i) either the New York\nstate and local employees' retirement system or the New York state and\nlocal police and fire retirement system pursuant to section seventeen or\nthree hundred seventeen of the retirement and social security law; or\n(ii) the New York state teachers' retirement system pursuant to section\nfive hundred twenty-one of the education law.\n 2. The governing board of any municipal corporation which is also a\nparticipating employer by resolution may establish a retirement\ncontribution reserve fund for the purpose of (a) financing retirement\ncontributions, and/or (b) in the case of a municipal corporation which\nis a participating employer as defined in subdivision three of section\nfive hundred one of the education law, financing appropriations\nauthorized by law in order to offset all or a portion of the amount\ndeducted from the moneys apportioned to the municipal corporation from\nthe state for the support of common schools pursuant to section five\nhundred twenty-one of the education law.\n 2-a. With respect to a municipal corporation which is a participating\nemployer as defined in subdivision three of section five hundred one of\nthe education law, which elects to utilize a retirement contribution\nreserve fund (a) to finance retirement contributions to the New York\nstate teachers' retirement system pursuant to section five hundred\ntwenty-one of the education law and/or (b) to offset all or a portion of\nthe amount deducted from the moneys apportioned to the municipal\ncorporation from the state for the support of common schools pursuant to\nsection five hundred twenty-one of the education law, such municipal\ncorporation shall establish a sub-fund within the retirement\ncontribution reserve fund, which shall be separately administered\nconsistent with the provisions of this section. Such municipal\ncorporation may pay into such sub-fund during any particular fiscal year\nan amount not to exceed two per centum of the total compensation or\nsalaries of all teachers in the employ of said municipal corporation who\nare members of the New York state teachers' retirement system paid\nduring the immediately preceding fiscal year. The balance of such\nsub-fund may not exceed ten per centum of the total compensation or\nsalaries of all teachers in the employ of the municipal corporation who\nare members of the New York state teachers' retirement system paid\nduring the immediately preceding fiscal year. For the purposes of this\nsubdivision, the term "teacher" shall have the same meaning as such term\nis defined under subdivision four of section five hundred one of the\neducation law.\n 3. There may be paid into a retirement contribution reserve fund:\n a. such amounts as may be provided therefor by budgetary appropriation\nor raised by tax therefor;\n b. such revenues as are not required by law to be paid into any other\nfund or account;\n c. such other funds as may be legally appropriated; and\n d. notwithstanding any law to the contrary, such amounts as may be\ntransferred from a reserve fund established pursuant to section six-c,\nsix-d, six-e, six-f or six-g of this article comprised of moneys raised\nfrom the same tax base as the moneys in the retirement contribution\nreserve fund, or a reserve fund established pursuant to section\nthirty-six hundred fifty-one of the education law, provided, that any\nsuch transfer shall only be made by resolution of the governing board of\nsuch municipal corporation adopted after a public hearing held on at\nleast fifteen days prior published notice in the official newspaper of\nthe municipal corporation or, if the municipal corporation does not have\nan official newspaper, in at least one newspaper having general\ncirculation in the municipal corporation.\n 4. The moneys in a retirement contribution reserve fund shall be\ndeposited and secured in the manner provided by section ten of this\narticle. The governing board of such municipal corporation, or the chief\nfiscal officer thereof if the governing board shall delegate such duty\nto him or her, may invest the moneys in such fund in the manner provided\nby section eleven of this article. Any interest earned or capital gain\nrealized on the money so deposited or invested shall accrue to and\nbecome part of such fund.\n 5. The governing board of such municipal corporation by resolution may\nauthorize expenditures from a retirement contribution reserve fund.\nExcept as otherwise provided by law, moneys in a retirement contribution\nreserve fund may only be expended (a) to finance retirement\ncontributions, and/or (b) in the case of a municipal corporation which\nis a participating employer, as defined in subdivision three of section\nfive hundred one of the education law, for appropriations authorized by\nlaw in order to offset all or a portion of the amount deducted from the\nmoneys apportioned to the participating employer from the state for the\nsupport of common schools pursuant to section five hundred twenty-one of\nthe education law. With respect to a municipal corporation which is a\nparticipating employer as defined in subdivision three of section five\nhundred one of the education law, expenditures from the retirement\ncontribution reserve fund to finance retirement contributions to the New\nYork State teachers' retirement system pursuant to section five hundred\ntwenty-one of the education law and/or to offset all or a portion of the\namount deducted from the moneys apportioned to the municipal corporation\nfrom the state for the support of common schools pursuant to section\nfive hundred twenty-one of the education law may only be made from the\nsub-fund established pursuant to subdivision two-a of this section.\n 6. The governing board of such municipal corporation by resolution may\nauthorize the transfer of a portion of the moneys in a retirement\ncontribution reserve fund to a reserve fund of the municipal corporation\nestablished pursuant to section six-c, six-d, six-e, six-f or six-g of\nthis article comprised of moneys raised from the same tax base as the\nmoneys in the retirement contribution reserve fund, or a reserve fund\nestablished pursuant to section thirty-six hundred fifty-one of the\neducation law, provided, that any such transfer shall only be made by\nresolution of the governing board of such municipal corporation adopted\nafter a public hearing held on at least fifteen days prior published\nnotice in the official newspaper of the municipal corporation or, if the\nmunicipal corporation does not have an official newspaper, in at least\none newspaper having general circulation in the municipal corporation.\n 7. The chief fiscal officer of such municipal corporation shall\naccount for a retirement contribution reserve fund separate and apart\nfrom all other funds of the municipal corporation. Such accounting shall\nshow: the source, date and amount of each sum paid into the fund; the\ninterest earned by such fund; capital gains or losses resulting from the\nsale of investments of this fund; the order, purpose thereof, date and\namount of each payment from this fund; the assets of the fund,\nindicating cash balance and a schedule of investments. The chief fiscal\nofficer, within sixty days of the end of each fiscal year, shall furnish\na detailed report of the operation and condition of this fund to the\ngoverning board.\n 8. The members of the governing board of such municipal corporation\nare hereby declared trustees of a retirement contribution reserve fund\nand shall be subject to all the duties and responsibilities imposed by\nlaw on trustees, and such duties and responsibilities may be enforced by\nthe municipal corporation, as the case may be, or by any board,\ncommission, agency, officer or taxpayer thereof.\n 9. No member of the governing board of such municipal corporation\nshall:\n (a) authorize a withdrawal from a retirement contribution reserve fund\nfor any purpose except as provided in this section; or\n (b) expend any money withdrawn from such fund for a purpose other than\nas provided in this section.\n Any member of the governing board who violates the provisions of this\nsubdivision shall be guilty of a misdemeanor.\n 10. The governing board of such municipal corporation by resolution\nmay determine that a retirement contribution reserve fund is no longer\nneeded and terminate the fund. Such resolution shall transfer any moneys\nremaining in such fund to one or more reserve funds of the municipal\ncorporation established pursuant to section six-c, six-d, six-e, six-f\nor six-g of this article comprised of moneys raised from the same tax\nbase as the moneys in the retirement contribution reserve fund, or one\nor more reserve funds established pursuant to section thirty-six hundred\nfifty-one of the education law.\n 11. The governing board of a municipal corporation which is a\nparticipating employer as defined in subdivision three of section five\nhundred one of the education law by resolution may (a) authorize the\ntransfer of all or a portion of the monies in the separately\nadministered sub-fund as established under subdivision two-a of this\nsection to the retirement contribution reserve fund, and/or (b)\nauthorize the transfer of all or a portion of the monies in the\nretirement contribution reserve fund to the separately administered\nsub-fund as provided in subdivision two-a of this section, subject to\nthe limits on annual payments into the sub-fund and the balance of the\nsub-fund specified by subdivision two-a of this section.\n