§ 99-AA — Retiree health benefit trust fund

New York § 99-AA

• Jurisdiction: New York
• Law STF: State Finance
• Art. 6: Funds of the State

Text

§ 99-aa. Retiree health benefit trust fund. 1. There is hereby\nestablished in the joint custody of the commissioner of the department\nof civil service and the state comptroller a special investment trust\nfund to be known as the retiree health benefit trust fund, which shall\nbe classified as a fiduciary fund type.\n 2. For purposes of this section: (a) "commissioner" shall mean the\ncommissioner of the department of civil service;\n (b) "state" shall mean the state of New York;\n (c) "fund", or "trust", or "trust fund" shall mean the retiree health\nbenefit trust fund created by this section; and\n (d) "retiree health benefits" shall mean benefits, except pensions or\nother benefits funded through a public retirement system, provided or to\nbe provided by the state as compensation, whether pursuant to statute,\ncontract or other lawful authority, to its current or former officers or\nemployees, or their families or beneficiaries, after service to the\nstate has ended, including, but not limited to, health care benefits.\n 3. (a) Notwithstanding any provision of law to the contrary, the\nretiree health benefit trust fund is established for the exclusive\nbenefit of retired state employees and their dependents.\n (b) The sole purpose of the trust fund established pursuant to\nsubdivision one of this section shall be to fund the retiree health\nbenefits of retired state employees and their dependents.\n 4. (a) Payments into and from the trust fund established pursuant to\nsubdivision one of this section shall be made in accordance with this\nsection.\n (b) Contributions to the trust, and any interest or other income or\nearnings on contributions, shall be irrevocable before all liabilities\nof the state government for retiree health benefits have been satisfied\nand shall be solely dedicated to, and used solely for, providing retiree\nhealth benefits and paying appropriate and reasonable expenses of\nadministering the trust. No assets, income, earnings or distributions of\nthe trust shall be subject to any claim of creditors of the state, or to\nassignment or execution, attachment or any other claim enforcement\nprocess initiated by or on behalf of such creditors. Except as otherwise\nprovided in subdivision eight of this section, the commissioner shall\nnot be responsible for the adequacy of the assets of the trust to meet\nany other post-employment benefit. The trust may be terminated only when\nall liabilities of the state for retiree health benefits have been\nsatisfied and there is no present or future obligation, contingent or\notherwise, of the state to provide such retiree health benefits. Upon\nsuch termination, any remaining trust assets, after any proper expenses\nof the trust have been paid, shall revert to the state.\n (c) At the request of the director of the budget, the state\ncomptroller shall transfer monies from the general fund to the trust\nfund up to and including an amount equivalent to one and fifty\none-hundredths of one per centum of the total actuarial accrued\nliability included in the state of New York comprehensive annual\nfinancial report.\n (d) Any use of funds for retiree health benefits from such trust fund\nshall not be subject to an appropriation and shall be transferred by the\nstate comptroller, at the request of the director of the budget, to the\nextent funds are available in such trust fund, to the health insurance\nfund for the sole and exclusive purpose of funding retiree health\nbenefits. The director of the budget shall notify both houses of the\nlegislature in writing thirty days prior to initiating transfers\npursuant to this authorization.\n 5. Investments. (a) The commissioner may establish a trust in joint\ncustody with the state comptroller for the purpose of accumulating\nassets to fund the cost of providing retiree health benefits.\n (b) The commissioner is hereby declared to be the trustee of the trust\nestablished pursuant to subdivision one of this section, and the\ncommissioner shall delegate responsibility for managing the investments\nof the trust fund established pursuant to subdivision one of this\nsection to the state comptroller. The state comptroller shall manage the\ninvestments of the trust fund established pursuant to subdivision one of\nthis section in a careful and prudent manner consistent with the\nguidelines and provisions of section ninety-eight this article.\n (c) Any interest or other income or earnings resulting from the\ninvestment of assets of the trust shall accrue to and become part of the\nassets of the trust.\n 6. In accordance with paragraph (b) of subdivision five of this\nsection, the state comptroller shall develop, in consultation with the\nstate health insurance council, a written investment policy for\nselecting investment options in a manner consistent with the investment\noptions prescribed in section ninety-eight of this article so that the\nstate comptroller may be able to invest fund monies in accordance with\nsuch policy. Such policy shall include a statement of investment\nobjectives addressing, in the following order of priority, the ability\nto timely meet disbursement requests without forced sale of assets,\nsafety of principal and attainment of market rates of return.\n 7. Neither the state nor the commissioner shall be liable for any loss\nor expense suffered by the trust in the absence of bad faith, willful\nmisconduct or intentional wrongdoing. The commissioner shall be\nconsidered to be acting as an officer of the state for purposes of\nsection seventeen of the public officers law, provided, however, that\nthe costs of any defense or indemnification of the commissioner arising\nfrom the exercise of the functions of trustee shall be payable from the\nassets of the trust.\n 8. Nothing contained in this section shall be interpreted or construed\nto: (a) create any obligation in, impose any obligation on, or alter any\nobligation of the state to provide retiree health benefits;\n (b) limit or restrict the authority of the state to modify or\neliminate retiree health benefits;\n (c) assure or deny retiree health benefits; or\n (d) require the state to fund its liability for retiree health\nbenefits.\n