NY Ret & SS L § 323-A (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-A - Statement of Intent.

§  323-a.  Statement  of  intent.  a.  This legislation is intended to   strengthen the long-term fiscal health  of  the  retirement  system,  to   reduce  the  volatility  of  contribution  rates  and  to provide budget   certainty for participating employers by addressing  current  structural   problems  with  respect  to  the  calculation  and  payment  of employer   contributions by means of a comprehensive reform  program.  There  is  a   need  to  address  structural problems in the current billing cycles for   the  state  and  local  governments  with  respect   to   their   annual   contributions  to  the  retirement  system. The state currently pays its   contributions on the basis of estimates, which are subject to adjustment   at a  later  date  (with  interest,  if  applicable)  on  the  basis  of   subsequent  calculations of the required contribution. Local governments   must  currently  adopt  budgets  based  on  estimates  of  the  required   contributions,  but  then  make payment of the full amount of the actual   contributions that  are  finally  billed  on  the  basis  of  subsequent   calculations  of  the  required  contributions.  In  addition,  dramatic   fluctuations in the performance of the investment markets have  produced   unprecedented  volatility  in  employer  contribution  rates. These rate   fluctuations have been exacerbated by the lack of a  reasonable  minimum   payment  by  employers  in years where investment performance was strong   and employer rates were low. In order to enhance the continuing  ability   of  the  retirement system to provide services and benefits for the more   than  nine  hundred  forty  thousand  members  and  retirees  and  their   beneficiaries,  this  section  provides  for measures to (1) enhance the   long-term fiscal health of the retirement  system,  (2)  facilitate  the   planning   and   budgeting   of   state   and   participating   employer   contributions, and (3) ease the volatility of retirement system employer   contribution rates in the future.b. Notwithstanding  the  provisions  of  this  chapter  or  any  other   provision  of  law  to  the  contrary,  the  comptroller  shall have the   authority, in his  or  her  discretion,  to  implement  a  comprehensive   structural  reform  program, which shall consist of all of the following   measures:1. revision of the schedule pertaining to the valuation,  billing  and   payment  of contributions by the state and participating employers under   which the valuation of the assets  and  liabilities  of  the  retirement   system  undertaken  on  the  first day of a fiscal year shall be used to   determine the contribution  rates  to  be  applied  to  the  pensionable   salaries  of  the  state  and participating employers earned during such   fiscal year for the payment of contributions due for the next succeeding   fiscal year; and2. requiring a minimum annual contribution from the  state  and  every   participating  employer  (exclusive  of  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 the state  or  participating  employer  is   permitted  to  pay  on  an  amortized  basis) equal to four and one-half   percent   of   pensionable   salaries.   Effective   immediately    upon   implementation by the comptroller of the comprehensive structural reform   program  set  forth  in  this  section,  and  in  all  subsequent years,   participating  employers  shall   pay   either   the   required   annual   contribution  determined  under  the  revised schedule pertaining to the   valuation, billing and payment of contributions  pursuant  to  paragraph   one  of this subdivision, or the required minimum annual contribution of   four and one-half percent of pensionable salaries, whichever is greater;   and3. notwithstanding any provision of subdivision  a  of  section  three   hundred  sixteen of this article to the contrary, upon the comptroller's    implementation of the  measures  set  forth  in  this  subdivision,  all   contributions payable by the state and participating employers under the   valuation,  billing and payment schedule implemented under paragraph one   of  this  subdivision,  including  the  minimum contribution required by   paragraph two of this subdivision, must be paid in full by the state  on   or   before  March  first  of  the  then  current  fiscal  year  and  by   participating employers on the  date  set  forth  in  subdivision  c  of   section three hundred seventeen of this article.