NY State Fin L § 99-AA (2021)
2021 New York Laws STF - State Finance Article 6 - Funds of the State 99-AA - Retiree Health Benefit Trust Fund.

§  99-aa.  Retiree  health  benefit  trust  fund.  1.  There is hereby established in the joint custody of the commissioner of  the  department of  civil  service  and the state comptroller a special investment trust fund to be known as the retiree health benefit trust fund,  which  shall be classified as a fiduciary fund type.   2.  For  purposes  of  this section: (a) "commissioner" shall mean the commissioner of the department of civil service;  (b) "state" shall mean the state of New York;  (c) "fund", or "trust", or "trust fund" shall mean the retiree  health benefit trust fund created by this section; and  (d)  "retiree health benefits" shall mean benefits, except pensions or other benefits funded through a public retirement system, provided or to be provided by the state as compensation, whether pursuant  to  statute, contract or other lawful authority, to its current or former officers or employees,  or  their  families  or  beneficiaries, after service to the state has ended, including, but not limited to, health care benefits.   3. (a) Notwithstanding any provision  of  law  to  the  contrary,  the retiree  health  benefit  trust  fund  is  established for the exclusive benefit of retired state employees and their dependents.  (b) The sole  purpose  of  the  trust  fund  established  pursuant  to subdivision  one  of  this  section  shall be to fund the retiree health benefits of retired state employees and their dependents.   4. (a) Payments into and from the trust fund established  pursuant  to subdivision  one  of  this section shall be made in accordance with this section.  (b) Contributions to the trust, and any interest or  other  income  or earnings  on  contributions, shall be irrevocable before all liabilities of the state government for retiree health benefits have been  satisfied and shall be solely dedicated to, and used solely for, providing retiree health  benefits  and  paying  appropriate  and  reasonable  expenses of administering the trust. No assets, income, earnings or distributions of the trust shall be subject to any claim of creditors of the state, or to assignment or execution,  attachment  or  any  other  claim  enforcement process initiated by or on behalf of such creditors. Except as otherwise provided  in  subdivision  eight of this section, the commissioner shall not be responsible for the adequacy of the assets of the trust  to  meet any other post-employment benefit. The trust may be terminated only when all  liabilities  of  the  state  for  retiree health benefits have been satisfied and there is no present or future  obligation,  contingent  or otherwise,  of  the  state to provide such retiree health benefits. Upon such termination, any remaining trust assets, after any proper  expenses of the trust have been paid, shall revert to the state.  (c)  At  the  request  of  the  director  of  the  budget,  the  state comptroller shall transfer monies from the general  fund  to  the  trust fund up to and including an amount equivalent to fifty one-hundredths of one  per centum of the total actuarial accrued liability included in the state of New York comprehensive annual financial report.  (d) Any use of funds for retiree health benefits from such trust  fund shall not be subject to an appropriation and shall be transferred by the state  comptroller, at the request of the director of the budget, to the extent funds are available in such trust fund, to the  health  insurance fund  for  the  sole  and  exclusive  purpose  of funding retiree health benefits. The director of the budget shall notify  both  houses  of  the legislature  in  writing  thirty  days  prior  to  initiating  transfers pursuant to this authorization.   5. Investments. (a) The commissioner may establish a  trust  in  joint custody  with  the  state  comptroller  for  the purpose of accumulating assets to fund the cost of providing retiree health benefits.  (b) The commissioner is hereby declared to be the trustee of the trust established pursuant  to  subdivision  one  of  this  section,  and  the commissioner  shall delegate responsibility for managing the investments of the trust fund  established  pursuant  to  subdivision  one  of  this section to the state comptroller. The state comptroller shall manage the investments of the trust fund established pursuant to subdivision one of this  section  in  a  careful  and  prudent  manner  consistent with the guidelines and provisions of section ninety-eight this article.  (c) Any interest or  other  income  or  earnings  resulting  from  the investment of assets of the trust shall accrue to and become part of the assets of the trust.   6.  In  accordance  with  paragraph  (b)  of  subdivision five of this section, the state comptroller shall develop, in consultation  with  the state   health  insurance  council,  a  written  investment  policy  for selecting investment options in a manner consistent with the  investment options  prescribed  in section ninety-eight of this article so that the state comptroller may be able to invest fund monies in  accordance  with such  policy.  Such  policy  shall  include  a  statement  of investment objectives addressing, in the following order of priority,  the  ability to  timely  meet  disbursement  requests  without forced sale of assets, safety of principal and attainment of market rates of return.   7. Neither the state nor the commissioner shall be liable for any loss or expense suffered by the trust in the absence of  bad  faith,  willful misconduct   or   intentional  wrongdoing.  The  commissioner  shall  be considered to be acting as an officer  of  the  state  for  purposes  of section  seventeen  of  the public officers law, provided, however, that the costs of any defense or indemnification of the commissioner  arising from  the exercise of the functions of trustee shall be payable from the assets of the trust.   8. Nothing contained in this section shall be interpreted or construed to: (a) create any obligation in, impose any obligation on, or alter any obligation of the state to provide retiree health benefits;  (b) limit or  restrict  the  authority  of  the  state  to  modify  or eliminate retiree health benefits;  (c) assure or deny retiree health benefits; or  (d)  require  the  state  to  fund  its  liability  for retiree health benefits.