§ 319-A — Employer contributions for the two thousand ten - two thousand eleven fiscal year and subsequent fiscal years

New York § 319-A

• Jurisdiction: New York
• Law RSS: Retirement & Social Security
• Title 3: Establishment, Management, Supervision and Financing
• Art. 8: New York State and Local Police and Fire Retirement System

Text

§ 319-a. Employer contributions for the two thousand ten - two\nthousand eleven fiscal year and subsequent fiscal years. a. In addition\nto the definitions in section three hundred two of this article, when\nused in this section:\n (1) "Amortizing employer" shall mean an employer that elects to\namortize a portion of the employer's annual bill pursuant to paragraph\none of subdivision d of this section for the two thousand ten - two\nthousand eleven fiscal year, or any subsequent fiscal year, pursuant to\nthe system graded contribution rate regardless of whether the employer\nhas subsequently paid in full all such amortized amounts, and that does\nnot elect to amortize as an alternative amortizing employer for the two\nthousand thirteen - two thousand fourteen fiscal year.\n (1-a) "Alternative amortizing employer" shall mean a county, city,\ntown or village that, on a form prepared by the comptroller, elects to\nand does amortize a portion of the employer's annual bill pursuant to\nparagraph one of subdivision d of this section for the two thousand\nthirteen - two thousand fourteen fiscal year pursuant to the alternative\nsystem graded contribution rate, regardless of whether the employer has\nsubsequently paid in full all such amortized amounts.\n (2) "Amount eligible for amortization" for a given fiscal year shall\nmean the amount by which an employer's actuarial contribution for such\nfiscal year exceeds the employer's graded contribution for the same\nfiscal year, less any amount from the employer contribution reserve fund\napplied to reduce the employer's payment to the retirement system for\nthe fiscal year, provided, however, that if the employer's average\nactuarial contribution rate for the fiscal year is less than seventeen\nand one-half percent, then the amount eligible for amortization shall be\nzero.\n (3) "Employer's actuarial contribution" for a given fiscal year shall\nmean an employer's annual bill for such fiscal year exclusive of the\ndeficiency contributions and payments on account of group term life\ninsurance, adjustments relating to prior fiscal years' obligations,\nretirement incentives and prior amortizations.\n (4) "Employer's annual bill" shall mean for a given fiscal year the\nsum of the following amounts: (i) an employer's normal contributions for\nthe fiscal year determined in accordance with paragraph one of\nsubdivision b of section three hundred twenty-three of this article and\nthe comprehensive structural reform program implemented pursuant to\nsubdivision b of section three hundred twenty-three-a of this article,\nincluding the provisions of subdivision b of section three hundred\ntwenty-three-a of this article relating to the required minimum annual\ncontribution of four and one-half percent of pensionable salaries; (ii)\nthe employer's deficiency contributions and administration contributions\nfor the fiscal year determined in accordance with paragraphs two and\nthree of subdivision b of section three hundred twenty-three of this\narticle; and (iii) any payments by the employer due in the fiscal year\non account of group term life insurance, adjustments relating to prior\nfiscal years' obligations, retirement incentives and prior\namortizations.\n (5) "Employer's average actuarial contribution rate" for a given\nfiscal year shall mean an employer's actuarial contribution for such\nfiscal year divided by the employer's payroll for the previous fiscal\nyear.\n (6) "Employer contribution reserve fund" or "fund" shall mean the\nemployer contribution reserve fund established pursuant to subdivision e\nof this section.\n (7) "Employer's graded contribution" for a given fiscal year shall\nmean the amount determined by applying the employer's graded\ncontribution rate or the alternative amortizing employer's graded\ncontribution rate for such fiscal year to an employer's payroll for the\nprevious fiscal year.\n (8) "Employer's graded contribution rate" for a given fiscal year\nshall mean (i) the system graded contribution rate for such fiscal year,\nor (ii) in the case of an individual employer for which a graded\ncontribution rate has been determined pursuant to paragraph three of\nsubdivision c of this section, the graded contribution rate for the\nindividual employer for such fiscal year.\n (9) "Employer's graded payment" for a given fiscal year shall mean the\namount by which an employer's graded contribution for such fiscal year\nexceeds the employer's actuarial contribution for the same fiscal year.\n (10) "Prior amortization" shall mean with respect to a given fiscal\nyear any payment due in such fiscal year on account of an obligation\nfrom a prior fiscal year that an employer is permitted to pay to the\nretirement system on an amortized basis.\n (11) "System average actuarial contribution rate" for a given fiscal\nyear shall mean the sum of all employers' actuarial contributions for\nsuch fiscal year, divided by the sum of all employers' payroll for the\nprevious fiscal year.\n (12) "System graded contribution rate" for a given fiscal year shall\nmean the graded contribution rate for the retirement system as a whole\ndetermined for such fiscal year pursuant to paragraph one or two of\nsubdivision c of this section.\n (13) "Alternative system graded contribution rate" for a given fiscal\nyear shall mean the graded contribution rate for the retirement system\nas a whole determined for such fiscal year pursuant to paragraph one or\ntwo of subdivision c-1 of this section.\n b. Notwithstanding the provisions of this chapter or any other law to\nthe contrary, the comptroller, in his or her discretion, shall have\nauthority to implement this section. If the comptroller elects to\nimplement this section, the provisions of this section shall apply to\nthe payment of employer contributions for the fiscal year commencing on\nApril first, two thousand ten, and for subsequent fiscal years. If the\ncomptroller, within his or her discretion, elects to implement the\nalternative system graded contribution rate as provided by subdivision\nc-1 of this section, the provisions of paragraph one-a of subdivision d\nof this section shall apply to the payment of employer contributions for\nthe fiscal year commencing on April first, two thousand thirteen, and\nfor subsequent fiscal years.\n c. For each fiscal year to which the provisions of this section apply,\nthe comptroller shall determine a graded contribution rate for the\nretirement system as a whole in the manner provided in this subdivision.\n (1) For the two thousand ten - two thousand eleven fiscal year the\nsystem graded contribution rate shall be seventeen and one-half percent.\n (2) For the two thousand eleven - two thousand twelve fiscal year, and\nsubsequent fiscal years, system graded contribution rates shall be\ndetermined as follows:\n (i) if the system average actuarial contribution rate for a given\nfiscal year is at least seventeen and one-half percent and exceeds the\nsystem graded contribution rate for the immediately preceding fiscal\nyear by more than one percentage point, then the system graded\ncontribution rate for the given fiscal year shall equal the system\ngraded contribution rate for the immediately preceding fiscal year plus\none percentage point, provided however, that in no event shall the\nsystem graded contribution rate be less than seventeen and one-half\npercent;\n (ii) if the system average actuarial contribution rate for a given\nfiscal year is at least seventeen and one-half percent and either equals\nthe system graded contribution rate for the immediately preceding fiscal\nyear or exceeds the system graded contribution rate for the immediately\npreceding fiscal year by one percentage point or less, then the system\ngraded contribution rate for the given fiscal year shall equal the\nsystem average actuarial contribution rate for such fiscal year,\nprovided, however, that in no event shall the system graded contribution\nrate be less than seventeen and one-half percent;\n (iii) if the system average actuarial contribution rate for a given\nfiscal year is less than seventeen and one-half percent and greater than\nthe system graded contribution rate for the immediately preceding fiscal\nyear, then the system graded contribution rate for the given fiscal year\nshall equal the system actuarial contribution rate for such fiscal year;\n (iv) if the system average actuarial contribution rate for a given\nfiscal year is smaller than the system graded contribution rate for the\nimmediately preceding fiscal year by more than one percentage point,\nthen the system graded contribution rate for the given fiscal year shall\nequal the system graded contribution rate for the immediately preceding\nfiscal year minus one percentage point; and\n (v) if the system average actuarial contribution rate for a given\nfiscal year either equals the system graded contribution rate for the\nimmediately preceding fiscal year or is smaller than the system graded\ncontribution rate for the immediately preceding fiscal year by one\npercentage point or less, then the system graded contribution rate for\nthe given fiscal year shall equal the system actuarial contribution rate\nfor such fiscal year.\n (3) The comptroller shall determine a graded contribution rate for\nindividual employers as provided in this paragraph. The graded\ncontribution rate for an individual employer is the product of the\nsystem's graded contribution rate with the ratio of the employer's\naverage actuarial contribution rate to the system's average actuarial\ncontribution rate, not to exceed one hundred percent of the system's\ngraded contribution rate.\n c-1. For each fiscal year to which the provisions of this section\napply, the comptroller shall determine an alternative system graded\ncontribution rate for the retirement system as a whole in the manner\nprovided in this subdivision.\n (1) For the two thousand thirteen - two thousand fourteen fiscal year\nand the two thousand fourteen - two thousand fifteen fiscal year, the\nalternative system graded contribution rate shall be twenty percent.\n (2) For the two thousand fifteen - two thousand sixteen fiscal year\nand the subsequent fiscal years, alternative system graded contribution\nrates shall be determined as follows:\n (i) if the system average actuarial contribution rate for a given\nfiscal year is at least seventeen and one-half percent and exceeds the\nalternative system graded contribution rate for the immediately\npreceding fiscal year by more than one-half percentage point, then the\nalternative system graded contribution rate for the given fiscal year\nshall equal the alternative system graded contribution rate for the\nimmediately preceding fiscal year plus one-half percentage point,\nprovided, however, that in no event shall the alternative system graded\ncontribution rate be less than seventeen and one-half percent;\n (ii) if the system average actuarial contribution rate for a given\nfiscal year is at least seventeen and one-half percent and either equals\nthe alternative system graded contribution rate for the immediately\npreceding fiscal year or exceeds the alternative system graded\ncontribution rate for the immediately preceding fiscal year by one-half\npercentage point or less, then the alternative system graded\ncontribution rate for the given fiscal year shall equal the system\naverage actuarial contribution rate for such fiscal year, provided,\nhowever, that in no event shall the alternative system graded\ncontribution rate be less than seventeen and one-half percent;\n (iii) if the system average actuarial contribution rate for a given\nfiscal year is less than seventeen and one-half percent and greater than\nthe alternative system graded contribution rate for the immediately\npreceding fiscal year, then the alternative system graded contribution\nrate for the given fiscal year shall equal the system actuarial\ncontribution rate for such fiscal year;\n (iv) if the system average actuarial contribution rate for a given\nfiscal year is smaller than the alternative system graded contribution\nrate for the immediately preceding fiscal year by more than one-half\npercentage point, then the alternative system graded contribution rate\nfor the given fiscal year shall equal the alternative system graded\ncontribution rate for the immediately preceding fiscal year minus\none-half percentage point; and\n (v) if the system average actuarial contribution rate for a given\nfiscal year either equals the alternative system graded contribution\nrate for the immediately preceding fiscal year or is smaller than the\nalternative system graded contribution rate for the immediately\npreceding fiscal year by one-half percentage point or less, then the\nalternative system graded contribution rate for the given fiscal year\nshall equal the system actuarial contribution rate for such fiscal year.\n d. (1) For any given fiscal year for which an employer's average\nactuarial contribution rate exceeds the employer graded contribution\nrate, the employer shall pay to the retirement system an amount equal to\nthe employer's annual bill for such year or, in lieu of paying the\nentire annual bill, the employer may pay an amount equal to the\nemployer's annual bill less all or a portion of the employer's amount\neligible for amortization for the fiscal year. If in accordance with\nthis paragraph the employer's payment to the retirement system is less\nthan the entire amount of the employer's annual bill, then the\ndifference between the employer's annual bill, and the amount actually\npaid by the employer to the retirement system exclusive of any amount\nfrom the employer contribution reserve fund applied to reduce the\nemployer's payment, shall be the amount amortized for the fiscal year.\nThe amount amortized for the fiscal year shall be paid to the retirement\nsystem in equal annual installments over a ten-year period, with\ninterest on the unpaid balance at a rate determined by the comptroller\nwhich approximates a market rate of return on taxable fixed rate\nsecurities with similar terms issued by comparable issuers, and with the\nfirst installment due in the immediately succeeding fiscal year.\nProvided however that, notwithstanding any provision of law to the\ncontrary and at the sole discretion of the director of the division of\nthe budget, the state as an amortizing employer may prepay to the\nretirement system the total amount of principal due for any such annual\ninstallment or installments for a given fiscal year prior to the\nexpiration of the ten-year amortization period. In the event the state\nelects to make such prepayment, the director of the division of budget\nmust identify the fiscal year or years for which the total principal\namount due for the annual installment is being prepaid. In any fiscal\nyear for which the director of the division of the budget identifies\nsuch prepayment is being made, the state (i) shall not be required to\nmake a payment of principal to the retirement system for such fiscal\nyear, and (ii) shall pay to the retirement system annual interest on the\nremaining principal balance at the rate originally set by the\ncomptroller when the state first elected to amortize in accordance with\nthis paragraph. Nothing contained herein shall permit the state to\nextend the amortization period originally established in accordance with\nthis paragraph beyond the original ten-year amortization period.\n (1-a) For any given fiscal year for which an employer's average\nactuarial contribution rate exceeds the alternative system graded\ncontribution rate, the employer shall pay to the retirement system an\namount equal to the employer's annual bill for such year or, in lieu of\npaying the entire annual bill, the employer may pay an amount equal to\nthe employer's annual bill less all or a portion of the employer's\namount eligible for amortization for the fiscal year. If in accordance\nwith this paragraph the employer's payment to the retirement system is\nless than the entire amount of the employer's annual bill, then the\ndifference between the employer's annual bill, and the amount actually\npaid by the employer to the retirement system exclusive of any amount\nfrom the employer contribution reserve fund applied to reduce the\nemployer's payment, shall be the amount amortized for the fiscal year.\nThe amount amortized for the fiscal year shall be paid to the retirement\nsystem in equal annual installments over a twelve year period, with\ninterest on the unpaid balance at a rate determined by the comptroller\nwhich shall be the twelve year interpolated rate based on the most\nrecently published yield to maturity of a ten year and twenty year U.S.\nTreasury Security plus one hundred basis points.\n (2) For any given fiscal year for which the employer graded\ncontribution rate equals or exceeds an amortizing employer's average\nactuarial contribution rate, the amortizing employer shall pay to the\nretirement system an amount equal to the employer's annual bill for such\nyear plus the employer's graded payment for the fiscal year.\n (i) If the amortizing employer's annual bill for the fiscal year does\nnot include an amount attributable to a prior amortization, then the\nemployer's graded payment shall be paid into the employer contribution\nreserve fund provided for in subdivision e of this section and credited\nto an account within such fund established for the employer.\n (ii) If the amortizing employer's annual bill for the fiscal year\nincludes an amount attributable to a prior amortization, the employer's\ngraded payment shall be used first to eliminate the amount of the\nemployer's unpaid prior amortization balances in chronological order\nstarting with oldest prior amortization balance. When in any fiscal year\nthe employer's graded payment eliminates all balances owed on the\nemployer's prior amortizations, any remaining portion of the employer's\ngraded payment for such fiscal year, and the employer's graded payment\nin any subsequent fiscal year in which the amortizing employer has no\nunpaid prior amortizations, shall be paid into the employer contribution\nreserve fund provided for in subdivision e of this section and credited\nto an account within such fund established for the employer.\n (2-a) For any given fiscal year for which the alternative system\ngraded contribution rate equals or exceeds an alternative amortizing\nemployer's average actuarial contribution rate, the alternative\namortizing employer shall pay to the retirement system an amount equal\nto the employer's annual bill for such year plus the employer's graded\npayment for the fiscal year.\n (i) If the alternative amortizing employer's annual bill for the\nfiscal year does not include an amount attributable to a prior\namortization, then the employer's graded payment shall be paid into the\nemployer contribution reserve fund provided for in subdivision e of this\nsection and credited to an account within such fund established for the\nemployer.\n (ii) If the alternative amortizing employer's annual bill for the\nfiscal year includes an amount attributable to a prior amortization, the\nemployer's graded payment shall be used first to eliminate the amount of\nthe employer's unpaid prior amortization balances in chronological order\nstarting with oldest prior amortization balance. When in any fiscal year\nthe employer's graded payment eliminates all balances owed on the\nemployer's prior amortizations, any remaining portion of the employer's\ngraded payment for such fiscal year, and the employer's graded payment\nin any subsequent fiscal year in which the amortizing employer has no\nunpaid prior amortizations, shall be paid into the employer contribution\nreserve fund provided for in subdivision e of this section and credited\nto an account within such fund established for the employer.\n (3) Nothing in this subdivision shall be construed as prohibiting an\nemployer from pre-paying any prior amortization.\n e. (1) Notwithstanding any law to the contrary, there shall be\nmaintained separate and apart from the other funds of the retirement\nsystem an employer contribution reserve fund, the assets of which shall\nnot be used or invested in a manner contrary to the provisions of this\nsubdivision. The fund shall consist of all employer contributions\nrequired to be deposited into the fund pursuant to subdivision d of this\nsection. Within such fund there shall be a separate account for each\nemployer making such contributions and payments.\n (2) For any given fiscal year for which (i) the system actuarial\ncontribution rate exceeds seventeen and one-half percent of payroll as\nof the end of the previous fiscal year, and (ii) for which an employer's\naverage actuarial contribution rate exceeds the employer's graded\ncontribution rate or the alternative employer's graded contribution\nrate, the balance in the employer's account within such fund shall be\napplied to reduce the employer's payment to the retirement system for\nsuch fiscal year in an amount not to exceed the difference between the\nemployer's actuarial contribution and the employer's graded contribution\nfor the fiscal year.\n (3) Notwithstanding the provisions of paragraph two of this\nsubdivision, if at the close of any given fiscal year the balance of an\nemployer's account within the fund exceeds the employer's actuarial\ncontribution for the previous fiscal year, no graded payment shall be\nrequired or allowed.\n (4) The assets of the fund shall be invested in only the following\ntypes of investments:\n (i) obligations of the United States of America or in obligations\nguaranteed by agencies of the United States of America where the payment\nof principal and interest are guaranteed by the United States of America\nor in obligations of the state of New York;\n (ii) general obligation bonds and notes of any state other than this\nstate, provided that such bonds and notes receive the highest rating of\nat least one independent rating agency;\n (iii) obligations of, or instruments issued by or fully guaranteed as\nto principal and interest by, any agency or instrumentality of the\nUnited States acting pursuant to a grant of authority from the congress\nof the United States, including, but not limited to, any federal home\nloan bank or banks, the Tennessee valley authority, the federal national\nmortgage association, the federal home loan mortgage corporation and the\nUnited States postal service;\n (iv) certificate of deposits that are fully secured by the issuer by\ndepositing with the comptroller direct or indirect obligations of the\nUnited States or its agencies or a letter of credit issued by the\nFederal Home Loan Bank; and\n (v) obligations of any corporation organized under the laws of any\nstate in the United States maturing within two hundred seventy days\nprovided that such obligations receive the highest rating of two\nindependent rating services designated by the comptroller.\n (5) At the close of each fiscal year, the amount of interest and\nearnings attributable to each employer's account shall be computed by\nthe actuary and certified to the comptroller, who shall thereupon credit\neach employer's account in accordance therewith.\n (6) The assets of the fund shall be excluded from the annual valuation\nof the assets and liabilities of the funds of the retirement system\nrequired by section three hundred eleven of this title. The assets of\nthe fund shall not finance increases in pension benefits.\n f. (1) An amortizing employer may elect to terminate participation in\nthe contribution stabilization program provided that such employer shall\nhave paid in full all such prior year amortization amounts including\ninterest as determined by the comptroller. Furthermore, any amortizing\nemployer that has terminated participation in the contribution\nstabilization program may re-enter the program in a year in which the\nemployer is eligible to amortize and their employer contribution reserve\nfund has been depleted.\n (2) An alternative amortizing employer may elect to terminate\nparticipation in the alternative contribution stabilization program\nprovided that such employer shall have paid in full all such prior year\namortization amounts including interest as determined by the\ncomptroller. Furthermore, any alternative amortizing employer that has\nterminated participation in the alternative contribution stabilization\nprogram may not re-enter the alternative contribution stabilization\nprogram; provided, however, such employer may enter the regular\ncontribution stabilization program as set forth in paragraph one of this\nsubdivision.\n (3) In order to terminate participation in the contribution\nstabilization or alternative contribution stabilization program, such\nemployer must file an election on a form prescribed by the comptroller.\nSuch election is subject to review and approval by the comptroller.\n (4) Termination shall take effect for the fiscal year billing cycle\nfollowing the fiscal year of approval. An employer who has been approved\nto terminate from the contribution stabilization or alternative\ncontribution stabilization program pursuant to this section shall not be\nrequired to make a graded payment starting in the following fiscal year\nbilling cycle.\n (5) In the event an employer in the contribution stabilization program\nor alternative contribution stabilization program terminates\nparticipation pursuant to this section, any such balance in their\nemployer contribution reserve fund shall be applied to the employer's\nannual bill in the maximum amount permitted under paragraph two of\nsubdivision e of this section, for the following fiscal year and\ncontinue to be applied to future annual bills until the reserve fund is\ndepleted.\n