NY Ret & SS L § 23 (2021)
2021 New York Laws RSS - Retirement and Social Security Article 2 - New York State Employees' Retirement System Title 3 - Funds of the System; Members' Contributions and Employers' Contributions 23 - Employers' Contributions and Their Use; Pension Accumulation Fund.

§  23.  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 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  eleven  of  this  article  and  as authorized by section twenty-three-a of this title.   2. Deficiency contribution.  (a)  In  the  case  of employers participating on July first, nineteen hundred forty-eight, the rate of such contribution shall continue to  be the  rate  theretofore  determined  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 electing to participate after July first, nineteen  hundred  forty-eight  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  reasons  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.