NY Ret & SS L § 19-A (2021)
2021 New York Laws RSS - Retirement and Social Security Article 2 - New York State Employees' Retirement System Title 2 - Establishment, Management, Supervision and Financing 19-A - Employer Contributions for the Two Thousand Ten - Two Thousand Eleven Fiscal Year and Subsequent Fiscal Years.

§ 19-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 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,  village,  school  district,  board  of  cooperative   educational services,  or  public benefit corporation that operates a public general hospital located in the county of Westchester, the county  of  Erie,  or the county of Nassau 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  nine  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 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  twenty-three  of  this  article   and   the comprehensive   structural   reform   program  implemented  pursuant  to subdivision b of section twenty-three-a of this article,  including  the provisions  of  subdivision  b of section 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  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 system graded contribution rate for such fiscal year to an employer's payroll for the previous fiscal year.  (8) "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.  (9) "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.  (10)  "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.  (11) "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  subdivision  c  of  this section.  (12)  "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 subdivision c-1 of this section.  (13) "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.   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 nine 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 nine 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 nine and one-half percent;  (ii) if the system average actuarial contribution  rate  for  a  given fiscal  year is at least nine 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 nine and one-half percent;  (iii) if the system average actuarial contribution rate  for  a  given fiscal  year is less than nine 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 twelve percent.  (2)  For  the  two thousand fifteen - two thousand sixteen fiscal year and  for  subsequent  fiscal  years,  the  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  nine  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 nine and one-half percent;  (ii)  if  the  system  average actuarial contribution rate for a given fiscal year is at least nine 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 nine and one-half percent;  (iii) if the system average actuarial contribution rate  for  a  given fiscal  year is less than nine 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 the 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 the 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 nine and one-half percent of payroll as of the end  of  the  previous  fiscal  year,  and  (ii)  an  employer's average actuarial contribution rate exceeds the system 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 eleven of this title. The assets of the  fund  shall not be used to finance increases in pension benefits.