NY Ret & SS L § 319-A (2021)
2021 New York Laws RSS - Retirement and Social Security Article 8 - New York State and Local Police and Fire Retirement System Title 3 - Establishment, Management, Supervision and Financing 319-A - Employer Contributions for the Two Thousand Ten - Two Thousand Eleven Fiscal Year and Subsequent Fiscal Years.

§  319-a.  Employer  contributions  for  the  two  thousand  ten - two thousand eleven fiscal year and subsequent fiscal years. a. In  addition to  the  definitions  in section three hundred two of this article, when used in this section:  (1) "Amortizing employer"  shall  mean  an  employer  that  elects  to amortize  a  portion of the employer's annual bill pursuant to paragraph one of subdivision d of this section for the  two  thousand  ten  -  two thousand  eleven fiscal year, or any subsequent fiscal year, pursuant to the system graded contribution rate regardless of whether  the  employer has  subsequently paid in full all such amortized amounts, and that does not elect to amortize as an alternative amortizing employer for the  two thousand thirteen - two thousand fourteen fiscal year.  (1-a)  "Alternative  amortizing  employer"  shall mean a county, city, town or village that, on a form prepared by the comptroller,  elects  to and  does  amortize  a portion of the employer's annual bill pursuant to paragraph one of subdivision d of this  section  for  the  two  thousand thirteen - two thousand fourteen fiscal year pursuant to the alternative system  graded contribution rate, regardless of whether the employer has subsequently paid in full all such amortized amounts.  (2) "Amount eligible for amortization" for a given fiscal  year  shall mean  the  amount by which an employer's actuarial contribution for such fiscal year exceeds the employer's  graded  contribution  for  the  same fiscal year, less any amount from the employer contribution reserve fund applied  to  reduce  the employer's payment to the retirement system for the fiscal year, provided,  however,  that  if  the  employer's  average actuarial  contribution  rate for the fiscal year is less than seventeen and one-half percent, then the amount eligible for amortization shall be zero.  (3) "Employer's actuarial contribution" for a given fiscal year  shall mean  an  employer's  annual  bill for such fiscal year exclusive of the deficiency contributions and payments on  account  of  group  term  life insurance,  adjustments  relating  to  prior  fiscal years' obligations, retirement incentives and prior amortizations.  (4) "Employer's annual bill" shall mean for a given  fiscal  year  the sum of the following amounts: (i) an employer's normal contributions for the   fiscal  year  determined  in  accordance  with  paragraph  one  of subdivision b of section three hundred twenty-three of this article  and the  comprehensive  structural  reform  program  implemented pursuant to subdivision b of section three hundred twenty-three-a of  this  article, including  the  provisions  of  subdivision  b  of section three hundred twenty-three-a of this article relating to the required  minimum  annual contribution  of four and one-half percent of pensionable salaries; (ii) the employer's deficiency contributions and administration contributions for the fiscal year determined in accordance  with  paragraphs  two  and three  of  subdivision  b  of section three hundred twenty-three of this article; and (iii) any payments by the employer due in the  fiscal  year on  account  of group term life insurance, adjustments relating to prior fiscal   years'   obligations,   retirement   incentives    and    prior amortizations.  (5)  "Employer's  average  actuarial  contribution  rate"  for a given fiscal year shall mean an employer's  actuarial  contribution  for  such fiscal  year  divided  by the employer's payroll for the previous fiscal year.  (6) "Employer contribution reserve fund"  or  "fund"  shall  mean  the employer contribution reserve fund established pursuant to subdivision e of this section.  (7)  "Employer's  graded  contribution"  for a given fiscal year shall mean  the  amount  determined  by   applying   the   employer's   graded  contribution  rate  or  the  alternative  amortizing  employer's  graded contribution rate for such fiscal year to an employer's payroll for  the previous fiscal year.  (8)  "Employer's  graded  contribution  rate"  for a given fiscal year shall mean (i) the system graded contribution rate for such fiscal year, or (ii) in the case  of  an  individual  employer  for  which  a  graded contribution  rate  has  been  determined pursuant to paragraph three of subdivision c of this section, the  graded  contribution  rate  for  the individual employer for such fiscal year.  (9) "Employer's graded payment" for a given fiscal year shall mean the amount  by  which an employer's graded contribution for such fiscal year exceeds the employer's actuarial contribution for the same fiscal year.  (10) "Prior amortization" shall mean with respect to  a  given  fiscal year  any  payment  due  in such fiscal year on account of an obligation from a prior fiscal year that an employer is permitted  to  pay  to  the retirement system on an amortized basis.  (11)  "System  average actuarial contribution rate" for a given fiscal year shall mean the sum of all employers'  actuarial  contributions  for such  fiscal  year, divided by the sum of all employers' payroll for the previous fiscal year.  (12) "System graded contribution rate" for a given fiscal  year  shall mean  the  graded contribution rate for the retirement system as a whole determined for such fiscal year pursuant to  paragraph  one  or  two  of subdivision c of this section.  (13)  "Alternative system graded contribution rate" for a given fiscal year shall mean the graded contribution rate for the  retirement  system as  a whole determined for such fiscal year pursuant to paragraph one or two of subdivision c-1 of this section.   b. Notwithstanding the provisions of this chapter or any other law  to the  contrary,  the  comptroller,  in  his or her discretion, shall have authority to implement  this  section.  If  the  comptroller  elects  to implement  this  section,  the provisions of this section shall apply to the payment of employer contributions for the fiscal year commencing  on April  first,  two thousand ten, and for subsequent fiscal years. If the comptroller, within his or  her  discretion,  elects  to  implement  the alternative  system  graded contribution rate as provided by subdivision c-1 of this section, the provisions of paragraph one-a of subdivision  d of this section shall apply to the payment of employer contributions for the  fiscal  year  commencing on April first, two thousand thirteen, and for subsequent fiscal years.   c. For each fiscal year to which the provisions of this section apply, the comptroller shall determine  a  graded  contribution  rate  for  the retirement system as a whole in the manner provided in this subdivision.  (1)  For  the  two  thousand ten - two thousand eleven fiscal year the system graded contribution rate shall be seventeen and one-half percent.  (2) For the two thousand eleven - two thousand twelve fiscal year, and subsequent fiscal years,  system  graded  contribution  rates  shall  be determined as follows:  (i)  if  the  system  average  actuarial contribution rate for a given fiscal year is at least seventeen and one-half percent and  exceeds  the system  graded  contribution  rate  for the immediately preceding fiscal year  by  more  than  one  percentage  point,  then  the  system  graded contribution  rate  for  the  given  fiscal  year shall equal the system graded contribution rate for the immediately preceding fiscal year  plus one  percentage  point,  provided  however,  that  in no event shall the system graded contribution rate be  less  than  seventeen  and  one-half percent;  (ii)  if  the  system  average actuarial contribution rate for a given fiscal year is at least seventeen and one-half percent and either equals the system graded contribution rate for the immediately preceding fiscal year or exceeds the system graded contribution rate for the  immediately preceding  fiscal  year by one percentage point or less, then the system graded contribution rate for the  given  fiscal  year  shall  equal  the system  average  actuarial  contribution  rate  for  such  fiscal  year, provided, however, that in no event shall the system graded contribution rate be less than seventeen and one-half percent;  (iii) if the system average actuarial contribution rate  for  a  given fiscal year is less than seventeen and one-half percent and greater than the system graded contribution rate for the immediately preceding fiscal year, then the system graded contribution rate for the given fiscal year shall equal the system actuarial contribution rate for such fiscal year;  (iv)  if  the  system  average actuarial contribution rate for a given fiscal year is smaller than the system graded contribution rate for  the immediately  preceding  fiscal  year  by more than one percentage point, then the system graded contribution rate for the given fiscal year shall equal the system graded contribution rate for the immediately  preceding fiscal year minus one percentage point; and  (v)  if  the  system  average  actuarial contribution rate for a given fiscal year either equals the system graded contribution  rate  for  the immediately  preceding  fiscal year or is smaller than the system graded contribution rate for the  immediately  preceding  fiscal  year  by  one percentage  point  or less, then the system graded contribution rate for the given fiscal year shall equal the system actuarial contribution rate for such fiscal year.  (3) The comptroller shall determine a  graded  contribution  rate  for individual   employers   as  provided  in  this  paragraph.  The  graded contribution rate for an individual  employer  is  the  product  of  the system's  graded  contribution  rate  with  the  ratio of the employer's average actuarial contribution rate to the  system's  average  actuarial contribution  rate,  not  to  exceed one hundred percent of the system's graded contribution rate.   c-1. For each fiscal year to which  the  provisions  of  this  section apply,  the  comptroller  shall  determine  an alternative system graded contribution rate for the retirement system as a  whole  in  the  manner provided in this subdivision.  (1)  For the two thousand thirteen - two thousand fourteen fiscal year and the two thousand fourteen - two thousand fifteen  fiscal  year,  the alternative system graded contribution rate shall be twenty percent.  (2)  For  the  two thousand fifteen - two thousand sixteen fiscal year and the subsequent fiscal years, alternative system graded  contribution rates shall be determined as follows:  (i)  if  the  system  average  actuarial contribution rate for a given fiscal year is at least seventeen and one-half percent and  exceeds  the alternative   system   graded  contribution  rate  for  the  immediately preceding fiscal year by more than one-half percentage point,  then  the alternative  system  graded  contribution rate for the given fiscal year shall equal the alternative system  graded  contribution  rate  for  the immediately  preceding  fiscal  year  plus  one-half  percentage  point, provided, however, that in no event shall the alternative system  graded contribution rate be less than seventeen and one-half percent;  (ii)  if  the  system  average actuarial contribution rate for a given fiscal year is at least seventeen and one-half percent and either equals the alternative system graded  contribution  rate  for  the  immediately preceding   fiscal   year  or  exceeds  the  alternative  system  graded contribution rate for the immediately preceding fiscal year by  one-half  percentage   point   or   less,   then  the  alternative  system  graded contribution rate for the given  fiscal  year  shall  equal  the  system average  actuarial  contribution  rate  for  such fiscal year, provided, however,   that   in  no  event  shall  the  alternative  system  graded contribution rate be less than seventeen and one-half percent;  (iii) if the system average actuarial contribution rate  for  a  given fiscal year is less than seventeen and one-half percent and greater than the  alternative  system  graded  contribution  rate for the immediately preceding fiscal year, then the alternative system  graded  contribution rate  for  the  given  fiscal  year  shall  equal  the  system actuarial contribution rate for such fiscal year;  (iv) if the system average actuarial contribution  rate  for  a  given fiscal  year  is smaller than the alternative system graded contribution rate for the immediately preceding fiscal year  by  more  than  one-half percentage  point,  then the alternative system graded contribution rate for the given fiscal year shall  equal  the  alternative  system  graded contribution  rate  for  the  immediately  preceding  fiscal  year minus one-half percentage point; and  (v) if the system average actuarial  contribution  rate  for  a  given fiscal  year  either  equals  the alternative system graded contribution rate for the immediately preceding fiscal year or is  smaller  than  the alternative   system   graded  contribution  rate  for  the  immediately preceding fiscal year by one-half percentage point  or  less,  then  the alternative  system  graded  contribution rate for the given fiscal year shall equal the system actuarial contribution rate for such fiscal year.   d. (1) For any given fiscal  year  for  which  an  employer's  average actuarial  contribution  rate  exceeds  the employer graded contribution rate, the employer shall pay to the retirement system an amount equal to the employer's annual bill for such year  or,  in  lieu  of  paying  the entire  annual  bill,  the  employer  may  pay  an  amount  equal to the employer's annual bill less all or a portion of  the  employer's  amount eligible  for  amortization  for  the fiscal year. If in accordance with this paragraph the employer's payment to the retirement system  is  less than  the  entire  amount  of  the  employer's  annual  bill,  then  the difference between the employer's annual bill, and the  amount  actually paid  by  the  employer to the retirement system exclusive of any amount from the employer  contribution  reserve  fund  applied  to  reduce  the employer's  payment,  shall be the amount amortized for the fiscal year. The amount amortized for the fiscal year shall be paid to the retirement system in  equal  annual  installments  over  a  ten-year  period,  with interest  on  the unpaid balance at a rate determined by the comptroller which approximates a  market  rate  of  return  on  taxable  fixed  rate securities with similar terms issued by comparable issuers, and with the first  installment  due  in  the  immediately  succeeding  fiscal  year. Provided however that, notwithstanding  any  provision  of  law  to  the contrary  and  at the sole discretion of the director of the division of the budget, the state as  an  amortizing  employer  may  prepay  to  the retirement  system the total amount of principal due for any such annual installment or installments  for  a  given  fiscal  year  prior  to  the expiration  of  the ten-year amortization period. In the event the state elects to make such prepayment, the director of the division  of  budget must  identify  the  fiscal  year or years for which the total principal amount due for the annual installment is being prepaid.  In  any  fiscal year  for  which  the  director of the division of the budget identifies such prepayment is being made, the state (i) shall not  be  required  to make  a  payment  of  principal to the retirement system for such fiscal year, and (ii) shall pay to the retirement system annual interest on the remaining  principal  balance  at  the  rate  originally  set   by   the  comptroller  when the state first elected to amortize in accordance with this paragraph. Nothing contained  herein  shall  permit  the  state  to extend the amortization period originally established in accordance with this paragraph beyond the original ten-year amortization period.  (1-a)  For  any  given  fiscal  year  for  which an employer's average actuarial  contribution  rate  exceeds  the  alternative  system  graded contribution  rate,  the  employer shall pay to the retirement system an amount equal to the employer's annual bill for such year or, in lieu  of paying  the  entire annual bill, the employer may pay an amount equal to the employer's annual bill less all  or  a  portion  of  the  employer's amount  eligible  for amortization for the fiscal year. If in accordance with this paragraph the employer's payment to the retirement  system  is less  than  the  entire  amount  of the employer's annual bill, then the difference between the employer's annual bill, and the  amount  actually paid  by  the  employer to the retirement system exclusive of any amount from the employer  contribution  reserve  fund  applied  to  reduce  the employer's  payment,  shall be the amount amortized for the fiscal year. The amount amortized for the fiscal year shall be paid to the retirement system in equal annual installments over  a  twelve  year  period,  with interest  on  the unpaid balance at a rate determined by the comptroller which shall be the twelve year  interpolated  rate  based  on  the  most recently  published yield to maturity of a ten year and twenty year U.S. Treasury Security plus one hundred basis points.  (2)  For  any  given  fiscal  year  for  which  the  employer   graded contribution  rate  equals  or  exceeds an amortizing employer's average actuarial contribution rate, the amortizing employer shall  pay  to  the retirement system an amount equal to the employer's annual bill for such year plus the employer's graded payment for the fiscal year.  (i)  If the amortizing employer's annual bill for the fiscal year does not include an amount attributable to a  prior  amortization,  then  the employer's  graded  payment shall be paid into the employer contribution reserve fund provided for in subdivision e of this section and  credited to an account within such fund established for the employer.  (ii)  If  the  amortizing  employer's  annual bill for the fiscal year includes an amount attributable to a prior amortization, the  employer's graded  payment  shall  be  used  first  to  eliminate the amount of the employer's unpaid prior amortization  balances  in  chronological  order starting with oldest prior amortization balance. When in any fiscal year the  employer's  graded  payment  eliminates  all  balances  owed on the employer's prior amortizations, any remaining portion of the  employer's graded  payment  for such fiscal year, and the employer's graded payment in any subsequent fiscal year in which the amortizing  employer  has  no unpaid prior amortizations, shall be paid into the employer contribution reserve  fund provided for in subdivision e of this section and credited to an account within such fund established for the employer.  (2-a) For any given fiscal  year  for  which  the  alternative  system graded  contribution  rate  equals  or exceeds an alternative amortizing employer's  average  actuarial  contribution   rate,   the   alternative amortizing  employer  shall pay to the retirement system an amount equal to the employer's annual bill for such year plus the  employer's  graded payment for the fiscal year.  (i)  If  the  alternative  amortizing  employer's  annual bill for the fiscal  year  does  not  include  an  amount  attributable  to  a  prior amortization,  then the employer's graded payment shall be paid into the employer contribution reserve fund provided for in subdivision e of this section and credited to an account within such fund established for  the employer.  (ii)  If  the  alternative  amortizing  employer's annual bill for the fiscal year includes an amount attributable to a prior amortization, the employer's graded payment shall be used first to eliminate the amount of the employer's unpaid prior amortization balances in chronological order starting with oldest prior amortization balance. When in any fiscal year the  employer's  graded  payment  eliminates  all  balances  owed on the employer's prior amortizations, any remaining portion of the  employer's graded  payment  for such fiscal year, and the employer's graded payment in any subsequent fiscal year in which the amortizing  employer  has  no unpaid prior amortizations, shall be paid into the employer contribution reserve  fund provided for in subdivision e of this section and credited to an account within such fund established for the employer.  (3) Nothing in this subdivision shall be construed as  prohibiting  an employer from pre-paying any prior amortization.   e.  (1)  Notwithstanding  any  law  to  the  contrary,  there shall be maintained separate and apart from the other  funds  of  the  retirement system  an employer contribution reserve fund, the assets of which shall not be used or invested in a manner contrary to the provisions  of  this subdivision.  The  fund  shall  consist  of  all  employer contributions required to be deposited into the fund pursuant to subdivision d of this section. Within such fund there shall be a  separate  account  for  each employer making such contributions and payments.  (2)  For  any  given  fiscal  year  for which (i) the system actuarial contribution rate exceeds seventeen and one-half percent of  payroll  as of the end of the previous fiscal year, and (ii) for which an employer's average actuarial contribution rate exceeds the graded contribution rate or  the  alternative system graded contribution rate, the balance in the employer's account within such fund  shall  be  applied  to  reduce  the employer's  payment  to the retirement system for such fiscal year in an amount not to exceed the difference  between  the  employer's  actuarial contribution and the employer's graded contribution for the fiscal year.  (3)   Notwithstanding   the   provisions  of  paragraph  two  of  this subdivision, if at the close of any given fiscal year the balance of  an employer's  account  within  the fund exceeds one hundred percent of the employer's payroll for the previous fiscal year,  the  excess  shall  be applied  to  reduce  the employer's payment to the retirement system for the next succeeding fiscal year.  (4) The assets of the fund shall be invested  in  only  the  following types of investments:  (i)  obligations  of  the  United  States of America or in obligations guaranteed by agencies of the United States of America where the payment of principal and interest are guaranteed by the United States of America or in obligations of the state of New York;  (ii) general obligation bonds and notes of any state other  than  this state,  provided that such bonds and notes receive the highest rating of at least one independent rating agency;  (iii) obligations of, or instruments issued by or fully guaranteed  as to  principal  and  interest  by,  any  agency or instrumentality of the United States acting pursuant to a grant of authority from the  congress of  the  United  States, including, but not limited to, any federal home loan bank or banks, the Tennessee valley authority, the federal national mortgage association, the federal home loan mortgage corporation and the United States postal service;  (iv) certificate of deposits that are fully secured by the  issuer  by depositing  with  the  comptroller direct or indirect obligations of the United States or its agencies or  a  letter  of  credit  issued  by  the Federal Home Loan Bank; and  (v)  obligations  of  any  corporation organized under the laws of any state in the United States maturing  within  two  hundred  seventy  days provided  that  such  obligations  receive  the  highest  rating  of two independent rating services designated by the comptroller.  (5)  At  the  close  of  each  fiscal year, the amount of interest and earnings attributable to each employer's account shall  be  computed  by the actuary and certified to the comptroller, who shall thereupon credit each employer's account in accordance therewith.  (6) The assets of the fund shall be excluded from the annual valuation of  the  assets  and  liabilities  of the funds of the retirement system required by section three hundred eleven of this title.  The  assets  of the fund shall not finance increases in pension benefits.