NY Educ L § 521 (2021)
2021 New York Laws EDN - Education Title 1 - General Provisions Article 11 - State Teachers' Retirement System for Public School Teachers 521 - Collection of Contributions.

§ 521. Collection  of  contributions.  1.  The  collection of members' contributions shall be as follows:   a. Each employer shall cause to be deducted on each and every  payroll of  a  contributor  for  each and every payroll period, the contribution payable by such contributor as provided in this article.  Each  employer shall  certify  to  the  treasurer  of  said  employer on each and every payroll a statement as voucher for the amounts so deducted.   b. The treasurer of each employer on receipt from the employer of  the voucher for deductions from the salaries of teachers as provided in this article  shall transmit monthly or at such times as the retirement board shall designate, the amount specified in such voucher to  the  secretary of  the  retirement  board.  The secretary of the retirement board after making record of all such receipts shall transmit them to  the  head  of the  division  of the treasury in the department of taxation and finance for use according to the provisions of this article.   But nothing in this section shall prevent the  retirement  board  from modifying  the  method of collecting the contribution of members so that employers may retain the amounts so deducted and  have  a  corresponding amount deducted from the appropriation for the support of common schools otherwise payable to them.   2.  The  collection  of  employers'  contributions  shall  be  made as follows:   a. Upon the  basis  of  each  actuarial  determination  and  appraisal provided herein, the retirement board shall annually prepare and certify to  the  commissioner  of  education  a  statement  of  the total amount necessary to be paid by all employers for the ensuing fiscal year to the pension accumulation and expense funds as provided under subdivision two of section  five  hundred  seventeen  and  under  section  five  hundred nineteen of this article. Upon the basis of the rate of contribution for supplemental   retirement  allowances,  determined  in  accordance  with section five hundred thirty-two of this article,  the  retirement  board shall  certify to the commissioner of education a statement of the total amount necessary to be paid by all employers for the ensuing fiscal year to the supplemental retirement allowance fund. Said certification  shall include  interest  on  amounts  necessary  to repay advances made to the supplemental retirement allowance fund  pursuant  to  subdivision  f  of section  five  hundred thirty-two of this article computed from the date of such advances at the rate determined in accordance with  paragraph  f of this subdivision.   b.  The  commissioner  of  education  shall include in the certificate which he files with the state comptroller showing the  amount  of  state funds  apportioned  to  the  school districts within each county for the support of  common  schools,  a  statement  showing  the  amount  to  be contributed  by each employer in each of such counties as required under this article.   The amount to be contributed by each employer except those who operate local district pension systems, shall be such percentage  of  the  total compensation  or  salaries of all teachers in his employ who are members of the retirement system as the  aggregate  amount  of  the  normal  and deficiency   contributions   for  the  year  shall  bear  to  the  total compensation or salaries paid by all employers, except those who operate local district pension systems, to all teachers who are members  of  the retirement system.   c.  The  comptroller  shall issue his warrant to the custodian of such fund directing such custodian to credit to the pension accumulation fund and expense fund respectively, from the appropriation for the support of common schools the amounts required to be made as contributions to  such funds  by  the employers as shown by the certificate of the commissioner  of education  filed  with  him  as  directed  in  paragraph  b  of  this subdivision.   d.  The  comptroller,  in  issuing  his  warrant  to the custodian for payment  to  each  county  treasurer  of  that  portion  of  the  moneys apportioned for the support of common schools, shall deduct therefrom an amount  equal  to  the amount required to be contributed by employers of such county,  as  shown  by  the  certificate  of  the  commissioner  of education  of  this  state  filed  with  the  comptroller as required by paragraph b of this subdivision.   e. In order to  meet  the  financial  requirements  of  this  article, employers  who  obtain  funds directly by taxation are hereby authorized and directed to levy annually such additional taxes as are  required  to provide  the  funds  deducted  from  the  amounts  apportioned  to  such employers from the appropriation of the state for  the  support  of  the common schools.   f. Employers whose payments from the moneys apportioned from the state for the support of common schools are insufficient to pay the amount due and owing the system, or who do not receive such payments, shall pay the system  each  year  the  amount  of contributions due and owing from the employer pursuant to this article within thirty days  from  the  date  a bill  is  mailed by the system. Interest, at a rate equal to the average yield payable on fifty-two week United States  treasury  bills  on  June thirtieth  immediately  preceding  the  day  the  bill  is mailed by the system, shall accrue on the outstanding amount due and owing  commencing with the thirty-first day after the bill is mailed.   g.  Whenever  the  system  determines  the  contributions  made  by an employer are less than the percentage of total compensation or  salaries of  members of the system in the employ of such employer, as required by this article, such employer shall pay the system such deficiency  within thirty days from the date a bill is mailed by the system. Interest, at a rate  equal to the average yield payable on fifty-two week United States treasury bills on June thirtieth immediately preceding  the  day  before the bill is mailed by the system, shall accrue on the outstanding amount due  and  owing  commencing  with the thirty-first day after the bill is mailed.   h. Notwithstanding any provision of law to  the  contrary,  commencing with the payments made in the fiscal year beginning July first, nineteen hundred   ninety,   and   each  fiscal  year  thereafter,  the  employer contributions due and payable as determined pursuant to  the  provisions of  this article and the employee contributions due and payable pursuant to this article and articles fourteen and fifteen of the retirement  and social  security law, on account of compensation paid in the fiscal year immediately preceding, and those employer contributions due and  payable in  each  fiscal  year pursuant to chapter six hundred sixty-five of the laws of nineteen hundred eighty-four shall be  made  to  the  retirement system and collected in the manner set forth in this section each fiscal year in three payments, each equal to thirty-three and one-third percent of  the  total  amount  due for such fiscal year. Such payments shall be paid on September fifteenth, October fifteenth, and  November  fifteenth of   each  fiscal  year.  If  a  participating  employer  underpaid  its obligation to the retirement system, such underpayment as determined  by the  retirement system shall be deducted from the amounts apportioned to such employer from the appropriation of the state for the support of the common schools due and payable the next April fifteenth. Employers whose payments from such appropriation are insufficient to pay the amount  due and  owing  the  system,  or  who do not receive such payments, shall be billed by the system for such underpayment and shall pay the system  the amount  due  within  thirty  days  from the date a bill is mailed by the  system. The amount of any employer overpayment of its obligation to  the retirement system, as determined by such system shall be a credit to the employer and shall reduce by an equal amount thereof the initial payment to  be  made  by  such  employer  to  such system on the next succeeding September fifteenth.   i. Notwithstanding any provision of law to the contrary, the  employer and  employee  contributions  due  and  payable  in the nineteen hundred eighty-nine--ninety fiscal year on account of compensation paid  in  the nineteen  hundred  eighty-eight--eighty-nine fiscal year which were paid prior to April first, nineteen hundred ninety shall be  deemed  (to  the extent  such amount is sufficient) to have consisted of all the employee contributions due and payable pursuant  to  this  article  and  articles fourteen  and  fifteen  of the retirement and social security law in the nineteen hundred eighty-nine--ninety  fiscal  year  and  those  employer contributions  due  and  payable in such fiscal year pursuant to chapter six hundred sixty-five of the laws of nineteen hundred eighty-four;  and the  remaining employer contributions so paid shall be applied evenly to the payments due and payable on September  fifteenth,  nineteen  hundred ninety,   October   fifteenth,  nineteen  hundred  ninety  and  November fifteenth,  nineteen  hundred  ninety  and  the  employer  contributions amounting  to  eight  hundred seventy-three million seven hundred eleven thousand six hundred fifteen dollars  ($873,711,615),  due  and  payable pursuant  to  the  provisions  of  this  section in the nineteen hundred eighty-nine--ninety fiscal year  on  account  of  compensation  paid  in nineteen  hundred  eighty-eight--eighty-nine  fiscal  year, except those employer contributions due and payable in such fiscal year  pursuant  to chapter   six  hundred  sixty-five  of  the  laws  of  nineteen  hundred eighty-four, shall  be  deferred  and  payment  shall  be  made  to  the retirement  system  in  fifteen  equal  annual  payments of ninety-eight million five hundred thirty-seven thousand five  hundred  seven  dollars ($98,537,507)  on  October  fifteenth,  commencing on October fifteenth, nineteen hundred ninety. Such payments are  calculated  at  an  interest rate of eight percent per annum. Provided, however, the retirement board is  directed  to permit the pre-payment of the amounts outstanding under this paragraph. The retirement board shall: (1) On or  before  September first,  nineteen  hundred  ninety, in addition to the amount due for the current fiscal year billing and for the payment of the amortized  annual installment,  furnish  the  total amount due and be authorized to accept pre-payment in full  of  said  amount  by  October  fifteenth,  nineteen hundred  ninety.  (2)  On  or before each September first thereafter, in addition to the amount due for the current fiscal year billing  and  for the  payment  of  the  annual  amortized  installment, furnish the total amount still outstanding and be authorized to accept the pre-payment  of any  portion of the balance remaining to be paid by October fifteenth of that year.   j. Prior to June first, nineteen hundred ninety, the valuation rate of interest adopted  by  the  retirement  board  on  April  twenty-seventh, nineteen  hundred  eighty-nine,  may  be  retroactively revised to eight percent by the retirement board, as recommended by the  actuary,  as  if adopted  at the April twenty-seventh, nineteen hundred eighty-nine board meeting, and the employer contribution rate, adopted by  the  retirement board  at  the  April twenty-seventh, nineteen hundred eighty-nine board meeting, revised by the retirement board  at  the  July  twenty-seventh, nineteen hundred eighty-nine board meeting, may be retroactively amended by  the  retirement  board  as  if  adopted  at the July twenty-seventh, nineteen hundred eighty-nine board meeting and applied to  contributions paid   in   the   nineteen   hundred   ninety--ninety-one  fiscal  year. Notwithstanding any provision of law to the contrary, the actions of the  retirement board pursuant to the provisions of this paragraph  shall  be deemed  reasonable,  prudent  and  proper.  No  member of the retirement board, officer, or employee of the New York state  teachers'  retirement system  shall  incur or suffer any liability whatsoever by reason of any actions pursuant to this paragraph, and such system shall save  harmless and  indemnify  all  members  of  the retirement board, its officers and employees from financial loss arising out of any  claim,  demand,  suit, action  or  judgment  as  a result of the actions taken pursuant to this paragraph provided that such person shall, within five  days  after  the date on which he is served with any summons, complaint, process, notice, demand,  claim  or pleading, deliver the original or a true copy thereof to the legal advisor of such  system.  Upon  such  delivery,  the  legal advisor  of such system may assume control of the representation of such person  in  connection  with  such  claim,  demand,  suit,   action   or proceeding.  Such person shall cooperate fully with the legal advisor of the system or any other person designated  to  assume  such  defense  in respect of such representation or defense.   k.  The  retirement  board is authorized to adopt procedures and/or to promulgate rules and regulations as it deems  necessary  to  adjust  and reconcile any payments from employers to actual amounts due whether such payments  were received prior or subsequent to the effective date of the chapter of  the  laws  of  nineteen  hundred  ninety  which  added  this paragraph to this section.   l.  The  provisions  of  paragraphs  h and i of this subdivision shall constitute a contract and the rights of the  New  York  state  teachers' retirement   system   thereunder  shall  not  be  impaired  in  any  way whatsoever.   m. In addition to any other payment or collection  procedure  provided by  this article, if the amounts credited from the appropriation for the support of common schools are insufficient to fully cover the amounts to be contributed by the employers, the retirement board is  authorized  to certify  the  unpaid  amount  to  the  state  comptroller, and the state comptroller shall, to  the  extent  not  otherwise  prohibited  by  law, withhold  such amount from any succeeding payment from any other form of state aid provided to the employer. If any employer  fails  to  pay  the amounts  required  to  be  contributed  pursuant  to  this  section, the retirement system shall be entitled  to  reasonable  attorney  fees  and other  expenses  incurred  to  collect  such amounts due and owing. Fees shall be determined pursuant to prevailing market rates for the kind and quality of the services furnished.   n. Notwithstanding any other provision of law  to  the  contrary,  the board  of  education  or  trustees  of  a  school  district  which  is a participating employer, which  has  elected  to  make  payments  of  the employer contributions due and payable to the retirement system pursuant to paragraph i of this subdivision in amortized annual installments, and which  has  determined  to  make pre-payment of the total amount of such contributions outstanding in accordance with said paragraph i, may adopt a bond resolution authorizing  the  refinancing  of  such  debt  by  the issuance of bonds in the amount of such pre-payment without conducting a vote  on  a  tax  to  be  collected  in installments, provided that such refinancing will result in savings to the school district, as  certified by the state comptroller, and provided further that the issuance of such obligations  otherwise  complies  with  the  requirements  of  the local finance law and this chapter.   3. Stable contribution option for participating educational  employers for  the  two thousand thirteen - two thousand fourteen plan year. a. In addition to the definitions in section five hundred one of this article, when used in this subdivision:  (1) "participating educational employer" shall mean a school  district or  board  of  cooperative  educational services which elects to pay the stable contribution amount in the manner provided in this subdivision;  (2)  "stable  contribution  amount"  shall mean an amount equal to the stable contribution rate  multiplied  by  the  pensionable  salary  base (exclusive  of  payments  for  group  term  life  insurance,  deficiency contributions, adjustments relating to prior fiscal years'  obligations, obligations pertaining to retirement incentives or any other obligations that  a  participating  educational  employer  is permitted to pay on an amortized basis);  (3) "stable contribution rate" shall mean fourteen percent for the two thousand thirteen - two thousand fourteen plan year and the two thousand fourteen - two thousand fifteen plan year and the rate as adopted by the retirement board in accordance with paragraph h of this subdivision; and  (4) "deferred employer  contribution  amount"  shall  mean  an  amount adequate  to fund the benefits for active and retired members associated with such participating  educational  employer  had  such  participating educational  employer  not  elected  the provisions of this subdivision. Such deferred employer contribution amount shall be calculated for  each year  of participation in the stable contribution option with associated interest determined specific to each  applicable  plan  year's  deferred amount.   b.  Notwithstanding the provisions of this chapter or any other law to the contrary, the  retirement  board,  in  its  discretion,  shall  have authority  to  implement  the  provisions  of  this  subdivision. If the retirement board elects to implement the provisions of this subdivision, the provisions shall apply to the payment of  participating  educational employer  contributions  in  the  plan  year  commencing July first, two thousand thirteen, for the pension bill  paid  on  September  fifteenth, October  fifteenth, and November fifteenth of two thousand fourteen, and for the subsequent  six  plan  years.  If  a  participating  educational employer  does  not  elect  the stable contribution option in the fiscal year commencing on July first, two thousand  thirteen  for  the  pension bill  paid  on  September  fifteenth,  October  fifteenth,  and November fifteenth of two thousand fourteen, it shall not be  eligible  to  elect the stable contribution option in any succeeding plan year.   c.  For  each  of the seven plan years to which the provisions of this subdivision apply, the retirement board shall use a stable  contribution rate  established  by the retirement board for participating educational employers.   d. If the retirement board, in its  discretion,  decides  to  adopt  a stable  contribution option pursuant to this subdivision, the retirement board shall determine the stable contribution amount in each  plan  year for a participating educational employer pursuant to subparagraph two of paragraph  a  of this subdivision. Such stable contribution amount shall be  in  lieu  of  a  participating  educational  employer's  actuarially required  contribution  rate  of normal and administrative contributions pursuant to sections five hundred seventeen and five hundred nineteen of this article for the plan  year  commencing  July  first,  two  thousand thirteen, and for the next six subsequent plan years.   e.  Any  participating  educational  employer  which elects to pay the stable contribution amount pursuant to this subdivision  shall  pay  the amount based on the stable contribution rate for a period of seven years and   such  option  shall  be  available  to  participating  educational employers from the two thousand thirteen - two  thousand  fourteen  plan year  through the two thousand nineteen - two thousand twenty plan year. In the sixth plan  year,  the  two  thousand  eighteen  -  two  thousand nineteen plan year, the participating educational employer shall pay the  stable contribution rate and, in addition, commence payment for deferred employer   contributions   in   accordance  with  paragraph  j  of  this subdivision.  Commencing with the plan year beginning  July  first,  two thousand  twenty,  the  participating  educational employer shall resume payment of the actuarially required  contribution  rate  of  normal  and administrative contributions pursuant to sections five hundred seventeen and  five hundred nineteen of this article and, in addition, any payment for deferred employer contribution amounts in accordance with paragraphs j and k of this subdivision.   f. A participating educational employer paying a  stable  contribution amount  shall  remit,  commencing  with  the  July  first,  two thousand thirteen plan year, an amount determined  by  the  retirement  board  by adding the following two amounts together:  (1)  the  stable  contribution  amount  calculated  pursuant  to  this subdivision; and  (2) payments for  group  term  life  insurance,  deficiency  payments, adjustments  relating to prior fiscal years' obligations and obligations pertaining to retirement incentives or  any  other  obligations  that  a participating  educational  employer is permitted to pay on an amortized basis.   g.  The  stable  contribution  amount  must  be  paid   in   full   by participating  educational employers on the dates specified in paragraph h of subdivision two of this section.   h. Prior to July first, two  thousand  fifteen  and  July  first,  two thousand  seventeen  the  retirement board is authorized to evaluate the stable contribution rate used  to  calculate  participating  educational employer  stable contribution amounts. Such evaluation shall be based on a  projection  of  assets  and  liabilities  so  as   to   ensure   that contributions  by  participating educational employers which participate in the stable contribution option are adequate  to  ensure  that  system assets  are  sufficient to fund benefits for active and retired members. The retirement board is authorized to increase the  stable  contribution rate  by up to two percentage points on July first, two thousand fifteen and  on  July  first,  two  thousand  seventeen.  The   revised   stable contribution  rate  resulting  from  the  foregoing evaluations and July first, two thousand fifteen  and  July  first,  two  thousand  seventeen stable  rate increases may not, in combination, exceed eighteen percent. The retirement board is authorized to decrease the  stable  contribution rate,  if  warranted, but in no event shall the stable contribution rate be less than fourteen percent.   i.  A  participating  educational  employer  may  elect  to  terminate participation  in  the  stable contribution option and resume payment of the actuarially  required  contribution  of  normal  and  administrative contributions  in  accordance  with  sections five hundred seventeen and five hundred nineteen of this  article.  Provided,  however,  that  such participating   educational   employer   which   elects   to   terminate participation shall make a reconciliation contribution to the retirement system, at an amount to be determined by the retirement board,  adequate to fund the benefits for active and retired members associated with such participating  educational  employer  had such participating educational employer  not  elected  the  provisions  of   this   subdivision.   Such reconciliation  contribution  shall  be made over a period not to exceed five  years  and  shall  be  made  in  addition  to   the   normal   and administrative contributions pursuant to sections five hundred seventeen and  five  hundred  nineteen  of this article for the plan year in which such participating educational employer chooses to resume payment of the normal  and  administrative  contributions  pursuant  to  sections  five hundred  seventeen  and  five  hundred nineteen of this article. For the  purposes of determining  the  reconciliation  contribution  amount,  the retirement   board  shall  assume  interest  on  the  deferred  employer contribution amount at a rate which  approximates  the  monthly  average yield on United States treasury securities at ten-year constant maturity for the twelve-month period preceding August first of each year plus one percentage  point.  The  interest  rate  associated  with  such deferred employer contribution amount shall be specific to each  applicable  plan year's deferred amount.   j.  In  the  sixth  plan  year,  commencing  July  first, two thousand eighteen, all participating educational  employers  having  elected  the stable  contribution  option  shall  continue  to  contribute the stable contribution amount to the retirement system and remit to the retirement system the accrued deferred employer contributions  accumulated  in  the first  five  plan  years.  The  stable  payment of the deferred employer contribution accrued by the participating educational employer shall  be paid  to  the  retirement  system  in  equal  annual installments over a five-year period, with interest on the unpaid portion to be based on the monthly average yield on United States treasury securities at a ten-year constant maturity for the twelve-month period preceding August first  of each  year  plus one percentage point. The interest rate associated with such deferred employer contribution amount shall be specific to the rate as measured on August first of the applicable plan year to such deferred amount. Payments of the stable installments shall be made  in  the  same manner  as  other  employer contributions as prescribed in this article. Nothing in this subdivision  shall  be  construed  as  prohibiting  such participating   educational   employer   from  making  a  reconciliation contribution in accordance with paragraph i of this subdivision.   k. In the eighth  plan  year,  commencing  July  first,  two  thousand twenty,  all  participating  educational  employers  having  elected the stable contribution option  shall  resume  payment  of  the  actuarially required contribution rate of normal and administrative contributions in accordance with section five hundred seventeen and five hundred nineteen of   this  article.  Additionally,  such  employer  will  remit  to  the retirement  system   the   accrued   deferred   employer   contributions accumulated  during  the  plan years commencing July first, two thousand eighteen  and  July  first,  two  thousand  nineteen   of   the   stable contribution  option.  The  stable  payment  of  the  deferred  employer contribution accrued by the participating educational employer shall  be paid  to  the  retirement  system  in  equal  annual installments over a five-year period with interest on the unpaid portion to be based on  the monthly average yield on United States treasury securities at a ten-year constant  maturity for the twelve-month period preceding August first of each year plus one percentage point. The interest rate  associated  with such deferred employer contribution amount shall be specific to the rate as measured on August first of the applicable plan year to such deferred amount.  Payments  of  the stable installments shall be made in the same manner as other employer contributions as prescribed  in  this  article. Nothing  in  this  subdivision  shall  be  construed as prohibiting such participating  educational  employer  from   making   a   reconciliation contribution in accordance with paragraph i of this subdivision.   l.   Notwithstanding  the  provisions  of  this  subdivision,  if  the retirement board decides to  adopt  a  stable  contribution  option,  in accordance   with  this  subdivision,  and  the  funded  status  of  the retirement system reaches a threshold below eighty percent at the end of any plan year during the seven plan year term of this option, the option shall cease and participating educational employers who have elected the stable contribution option  shall  resume  payment  of  the  actuarially required contribution rate of normal and administrative contributions in  accordance with section five hundred seventeen and five hundred nineteen of  this article. Additionally, such employer will make a reconciliation contribution to the retirement system, at an amount to be determined  by the  retirement  board,  adequate  to  fund  the benefits for active and retired members associated with such participating educational  employer had  such  participating educational employer not elected the provisions of this section. The  payment  of  the  deferred  employer  contribution accrued  by  the participating educational employer shall be paid to the retirement system in equal annual installments over a  five-year  period with  interest  on the unpaid portion to be based on the monthly average yield on United  States  treasury  securities  at  a  ten-year  constant maturity for the twelve-month period preceding August first of each year plus  one  percentage  point.  The  interest  rate  associated with such deferred employer contribution amount shall be specific to the  rate  as measured  on  August  first of the applicable plan year to such deferred amount. Payments of the stable installments shall be made  in  the  same manner as other employer contributions as prescribed in this article.   m.  The  retirement  board  is  authorized  to  promulgate  rules  and regulations for implementation of this subdivision.