NY Ret & SS L § 323 (2021)
2021 New York Laws RSS - Retirement and Social Security Article 8 - New York State and Local Police and Fire Retirement System Title 4 - Funds of the System; Members' Contributions and Employers' Contributions 323 - Employers' Contributions and Their Use; Pension Accumulation Fund.

§  323.  Employers'  contributions and their use; pension accumulation fund. a. Except as otherwise provided  pursuant  to  this  article,  the pension   accumulation  fund  shall  be  the  fund  in  which  shall  be accumulated:   1. All contributions made by employers, and   2. All income received from the investments of  the  police  and  fire retirement system, and   3.  All  monies  received  from  all  other  sources and which are not required to be credited to any other fund.   b. Each employer shall make three contributions annually.  They  shall be  known  as  the normal contribution, the deficiency contribution, and the administration contribution. The rates thereof shall be computed  by the actuary.   1. Normal contribution. The rate of such contribution shall be applied to  the  members'  annual compensation earned during the previous fiscal year.  Such rate shall be a uniform and  constant  rate  per  centum  of annual compensation. When applied to the compensation of the average new entrant  during the remaining period of his or her membership, such rate shall be computed to be sufficient to provide all  the  benefits,  other than  those  on  account  of  prior service, granted by this article and which are payable from funds contributed  to  the  pension  accumulation fund.   Such  rate  shall  be  computed  each  year  by  means of an actuarial valuation as prescribed in section three hundred eleven of this  article and as authorized by section three hundred twenty-three-a of this title.   2. Deficiency contribution.  (a)  In  the  case  of  employers  who were participating in the state employees' retirement system on  March  thirty-first,  nineteen  hundred sixty-seven, the rate of such contribution shall continue to be the rate determined  for  such  participating employer pursuant to law. Such rate may be varied, however, if an adjustment is necessitated  by  reason  of the allowance of additional prior service credits.  (b) In the case of an employer who elects to participate in the police and  fire  retirement  system  on or after April first, nineteen hundred sixty-seven and before March thirty-first, nineteen hundred ninety-nine, an initial actuarial valuation shall be made to  determine  the  accrued liability  of  such  employer by reason of the prior service of those of its employees who are members of the  retirement  system.  The  rate  of deficiency contribution for such employer shall then be determined. Such rate  shall  be that proportion of the total annual compensation of such employees as is equivalent to four per centum of such accrued liability. Such rate shall be applied to the employer's payroll of members, as used in the annual valuation. The cost of making such initial valuation shall be assessed against and paid by such employer.   Notwithstanding the above, for employers who commence participation in the  retirement  system  on  or  after  April  first,  nineteen  hundred ninety-nine,  the  accrued  liability shall be amortized in equal annual installments over a  twenty-five  year  period.  With  respect  to  such employers  the  cost  of making such initial valuation shall be assessed against and paid by the employer. The provisions of  subdivisions  c,  d and  e  of  this  section  shall  not  apply  to  employers who commence participation in the retirement system on or after April first, nineteen hundred ninety-nine.  (c) The amount of each annual deficiency contribution payable by every employer shall be at least three per centum greater than the amount  for the preceding year.  (d)  The  comptroller  shall approve the discontinuance of the state's deficiency contribution on account of members employed by it when:  (1) The total amount in the pension accumulation fund  on  account  of all members, and  (2)  The  present value of future deficiency contributions still to be paid by other employers, and  (3) The present value of future normal contributions, on the basis  of the  rate  of  normal  contribution then in effect, shall equal the then present value of the total liability of such fund on the  basis  of  the tables then in use.  (e)  Unless  previously discontinued, or unless hereafter discontinued pursuant to other provisions of law, the deficiency  contribution  of  a participating  employer  shall  be discontinued when the total amount of deficiency contributions paid by such employer at least equals or  shall hereafter equal such percentum of its initial accrued liability computed by  the  actuary  as  shall  equal that percentum of the state's initial accrued liability paid by deficiency  contributions  during  the  period equal  to  the  period  last determined by the actuary as the deficiency payment period. Nothing herein contained shall be  deemed  to  give  any participating  employer any valid claim or cause of action for refund or credit for any sum or sums paid or to be paid for fiscal years prior  to and  including  the  fiscal  year  ending  March  thirty-first, nineteen hundred sixty-six nor to excuse  any  participating  employer  from  the payment of any contributions for such fiscal years.   3. Administration contribution.  (a)  The  expenses  of  the  retirement  system,  including  an amount allocated to amortize over a period of thirty years, with interest,  the cost  of construction of the retirement system building, and the cost of maintenance of such building, for each fiscal year shall  be  determined at  the close of each such year. The ratio of such expenses to the total compensation of all members, as used in the actuarial  valuation,  shall be  the  rate  of  such  administration contribution. Such rate shall be applied to each employer's payroll of members, as  used  in  the  annual valuation.  (b)  All  such  expenses shall be paid out of the pension accumulation fund which shall be reimbursed through administration contributions  and other monies received from employers pursuant to this article.  (c)  Notwithstanding  any  other  provision of this subdivision or any other law, the administrative contribution for  a  year,  as  determined pursuant  to  paragraph  one  of subdivision b of this section, shall be paid from the pension accumulation fund if payment from such  fund  will not affect the normal contribution for such year.   c.  Additional  contributions shall be made in accordance therewith by employers obligated to contribute to the retirement system  pursuant  to any other section of this article.   d.  When a pension or a pension-providing-for-increased-take-home-pay, if any, becomes payable to or on account of any member, a reserve, in an amount computed by the actuary to be necessary to provide the pension or pension-providing-for-increased-take-home-pay, if any, granted  in  each such  case,  shall  be transferred from the pension accumulation fund to the pension reserve fund.   e. Whenever the comptroller, upon recommendation by the actuary, shall determine that it is necessary to increase  the  reserves  held  in  the annuity reserve fund or the pension reserve fund, he may direct that the amount   so  needed  shall  be  transferred  thereto  from  the  pension accumulation fund.   f. The amount of regular interest which  is  to  be  credited  to  the annuity  savings  fund, the annuity reserve fund and the pension reserve fund, and the amount  of  special  interest,  if  any,  which  shall  be credited  to  the  annuity savings accounts in the annuity savings fund,  shall be determined after the close  of  each  fiscal  year.  Each  such amount thereupon shall be transferred from the pension accumulation fund to each such fund.