§ 16 — Annual appropriation by state

New York § 16

• Jurisdiction: New York
• Law RSS: Retirement & Social Security
• Title 2: Establishment, Management, Supervision and Financing
• Art. 2: New York State Employees' Retirement System

Text

§ 16. Annual appropriation by state. a. Upon the basis of each annual\nactuarial valuation and appraisal provided for in this article, the\ncomptroller, on or before the fifteenth day of October of each year,\nshall prepare and file with the director of the budget and the\nchairperson of the senate finance committee and the assembly ways and\nmeans committee an itemized estimate of the amounts necessary to be\nappropriated by the state to the pension accumulation fund and the New\nYork state public employees group life insurance plan for the next\nfiscal year and an estimate of the payments required for the current\nfiscal year. Such amounts shall be sufficient to provide for payment in\nfull for (i) the estimated obligations of the state to the retirement\nsystem for such respective fiscal years; and (ii) any actual obligations\nof the state to the retirement system remaining unpaid from the prior\nfiscal year, plus interest on such amount to be paid in the next fiscal\nyear. If, the state overpaid its actual obligation to the retirement\nsystem for the prior fiscal year, the amount estimated in the filing\nrequired by this subdivision for the next fiscal year shall reflect the\namount of such overpayment, plus interest on such amount, as a reduction\nin amounts that would otherwise be estimated to be due the retirement\nsystem from the state. The amount appropriated or so much thereof as may\nbe required shall be paid from the state treasury on warrant of the\ncomptroller into the pension accumulation fund and the New York state\npublic employees group life insurance plan, as appropriate, on or before\nMarch first of each state fiscal year. The amount paid shall be based on\nan estimate provided by the comptroller which shall reflect the most\nrecent data on annual salary and other related components, and be\ncalculated in accordance with pension benefits authorized as of that\ntime. Such estimate shall be provided by the comptroller within fifteen\ndays of a request by the director of the budget. For the purposes of\nthis section, "interest" shall mean the rate or rates of interest used\nin the actuarial valuations covering the period of time over which such\ninterest is computed.\n b. On or before the fifteenth day of October of each year the\ncomptroller shall file with the director of the budget and the\nchairperson of the senate finance committee and the assembly ways and\nmeans committee an itemized estimate of the expenses of the retirement\nsystem for the ensuing year. The director of the budget may revise and\namend such estimate. After such revision and amendment, if any, such\ndirector shall approve the same for inclusion in the executive budget.\nNo monies shall be paid out of the pension accumulation fund for such\nexpenses unless expenditures therefor shall have been authorized by law.\n c. Whenever the compensation of any member of the retirement system is\npaid from a special or administrative fund provided for by law, all\ncontributions to the retirement system including a proportionate share\nof the administrative expense thereof, which otherwise would be\nchargeable to the general fund of the state, shall, with the approval of\nthe director of the budget, be paid from such special or administrative\nfund.\n d. Such estimated amounts provided in subdivision a of this section\nshall be revised to reflect updated information, including trends in\nsalary growth and investment earnings through November thirtieth of the\ncurrent fiscal year and resubmitted to the director of the budget and\nthe chairperson of the senate finance committee and the assembly ways\nand means committee on or before December fifteenth of the current\nfiscal year. A revised actuarial estimate, including an explanation of\nany changes from the estimates submitted on October fifteenth of the\ncurrent fiscal year, shall also accompany such resubmission.\n e. By February seventh of the current fiscal year, the comptroller\nshall notify the director of the budget and the chaiperson of the senate\nfinance committee and the assembly ways and means committee of his or\nher revised estimate of the state's contribution to the pension\naccumulation fund and the New York state public employees group life\ninsurance plan for the current and next fiscal years based on updated\ninformation through January thirty-first of the current fiscal year.\nSuch notification shall be accompanied by a revised actuarial estimate,\nincluding an explanation of any changes from the estimate submitted on\nDecember fifteenth of the current fiscal year.\n f. After reviewing the estmates and submissions for the next fiscal\nyear, the director of the budget, after consultation with the\ncomptroller's office, shall include the necessary item of appropriation\nfor the next fiscal year payment in the next annual appropriation bill\npresented to the legislature. Such consultation shall include\ndiscussions regarding the reasons and assumptions used for any potential\nadjustments to prior estimates and submissions and, to the extent\nfeasible or appropriate, reflect actual calculations provided by the\ncomptroller's office. The director of the budget shall also include in\nsuch appropriation bill, if necessary, an appropriation equal to the\namount of unpaid obligations of the state to the retirement system for\nthe prior fiscal year.\n g. Such estimates provided in subdivisions a, d and e of this section\nshall be accompanied by an actuarial report stating the assumptions used\nin calculating each of the estimates, including but not limited to:\n 1. projected growth in the billable salary base from the prior fiscal\nyear, in total and by tier for the state and local governments for each\nretirement system;\n 2. composition of the portfolio;\n 3. return on common stock investments, expressed as a percentage;\n 4. calculation of the actuarial value of common stock;\n 5. return on investments other than common stock, expressed as a\npercentage; and\n 6. itemization of the change from the state's prior year contribution,\neither actual or estimated, due to legislative changes in benefits, tier\nshift, salary base growth, investment return, and any other factors\ndeemed appropriate for explaining such change.\n h. In addition to the above mentioned reporting requirements, the\nactuarial report shall also include the following information for each\nretirement system for the current fiscal year and estimated amounts for\nthe next fiscal year:\n 1. the post-retirement supplemental payments and a description of the\nhandling of such amounts in the valuation;\n 2. the group life insurance plan (GLIP) costs and assets allocated to\nGLIP;\n 3. the administrative expenses and a description of the handling of\nsuch amount in the valuation;\n 4. the market value and actuarial asset value of equities;\n 5. a state reconciliation of the amounts paid and the final amounts\nfor the two prior fiscal years.\n