This text of New York § 323-A (Statement of intent) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
§ 323-a. Statement of intent.
a.This legislation is intended to\nstrengthen the long-term fiscal health of the retirement system, to\nreduce the volatility of contribution rates and to provide budget\ncertainty for participating employers by addressing current structural\nproblems with respect to the calculation and payment of employer\ncontributions by means of a comprehensive reform program. There is a\nneed to address structural problems in the current billing cycles for\nthe state and local governments with respect to their annual\ncontributions to the retirement system. The state currently pays its\ncontributions on the basis of estimates, which are subject to adjustment\nat a later date (with interest, if applicable) on the basis of\nsubsequent calculations of the required contrib
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§ 323-a. Statement of intent. a. This legislation is intended to\nstrengthen the long-term fiscal health of the retirement system, to\nreduce the volatility of contribution rates and to provide budget\ncertainty for participating employers by addressing current structural\nproblems with respect to the calculation and payment of employer\ncontributions by means of a comprehensive reform program. There is a\nneed to address structural problems in the current billing cycles for\nthe state and local governments with respect to their annual\ncontributions to the retirement system. The state currently pays its\ncontributions on the basis of estimates, which are subject to adjustment\nat a later date (with interest, if applicable) on the basis of\nsubsequent calculations of the required contribution. Local governments\nmust currently adopt budgets based on estimates of the required\ncontributions, but then make payment of the full amount of the actual\ncontributions that are finally billed on the basis of subsequent\ncalculations of the required contributions. In addition, dramatic\nfluctuations in the performance of the investment markets have produced\nunprecedented volatility in employer contribution rates. These rate\nfluctuations have been exacerbated by the lack of a reasonable minimum\npayment by employers in years where investment performance was strong\nand employer rates were low. In order to enhance the continuing ability\nof the retirement system to provide services and benefits for the more\nthan nine hundred forty thousand members and retirees and their\nbeneficiaries, this section provides for measures to (1) enhance the\nlong-term fiscal health of the retirement system, (2) facilitate the\nplanning and budgeting of state and participating employer\ncontributions, and (3) ease the volatility of retirement system employer\ncontribution rates in the future.\n b. Notwithstanding the provisions of this chapter or any other\nprovision of law to the contrary, the comptroller shall have the\nauthority, in his or her discretion, to implement a comprehensive\nstructural reform program, which shall consist of all of the following\nmeasures:\n 1. revision of the schedule pertaining to the valuation, billing and\npayment of contributions by the state and participating employers under\nwhich the valuation of the assets and liabilities of the retirement\nsystem undertaken on the first day of a fiscal year shall be used to\ndetermine the contribution rates to be applied to the pensionable\nsalaries of the state and participating employers earned during such\nfiscal year for the payment of contributions due for the next succeeding\nfiscal year; and\n 2. requiring a minimum annual contribution from the state and every\nparticipating employer (exclusive of payments for group term life\ninsurance, deficiency payments, adjustments relating to prior fiscal\nyears' obligations and obligations pertaining to retirement incentives\nor any other obligations that the state or participating employer is\npermitted to pay on an amortized basis) equal to four and one-half\npercent of pensionable salaries. Effective immediately upon\nimplementation by the comptroller of the comprehensive structural reform\nprogram set forth in this section, and in all subsequent years,\nparticipating employers shall pay either the required annual\ncontribution determined under the revised schedule pertaining to the\nvaluation, billing and payment of contributions pursuant to paragraph\none of this subdivision, or the required minimum annual contribution of\nfour and one-half percent of pensionable salaries, whichever is greater;\nand\n 3. notwithstanding any provision of subdivision a of section three\nhundred sixteen of this article to the contrary, upon the comptroller's\nimplementation of the measures set forth in this subdivision, all\ncontributions payable by the state and participating employers under the\nvaluation, billing and payment schedule implemented under paragraph one\nof this subdivision, including the minimum contribution required by\nparagraph two of this subdivision, must be paid in full by the state on\nor before March first of the then current fiscal year and by\nparticipating employers on the date set forth in subdivision c of\nsection three hundred seventeen of this article.\n