NY Educ L § 399 (2021)
2021 New York Laws EDN - Education Title 1 - General Provisions Article 8-C - Special Annuity 399 - Special Annuity and Custodial Account Programs Authorized.

§ 399. Special  annuity and custodial account programs authorized.  1.   An employer is hereby authorized  to  establish  by  resolution  special   annuity  and  custodial  account  programs  which  shall provide for the   purchase of contracts or establishment of custodial  accounts  providing   retirement  and death benefits for or on behalf of employees electing to   enter into an agreement with such employer providing for a reduction  of   annual salary for the purpose of purchasing such contracts or for making   contributions to such custodial accounts.2.  Where  the  employer  has  established  a  special  annuity and/or   custodial account program authorized by this article, any  employee  may   enter  into  an  agreement  with  his  employer for the reduction of his   salary which is earned after the effective date of  such  agreement  and   for  contributions  to  the  purchase  of  an  annuity  contract or to a   custodial account for such employee by his employer in an  amount  equal   to the reduction in salary so agreed on. The employer shall purchase the   annuity contract or make contributions to the custodial account for such   employee  entering  into such an agreement from the insurer or custodian   designated pursuant to subdivision four of this  section.  Such  annuity   contract  shall  be issued to, and become the property of, such employee   whose rights therein shall be non-forfeitable except for failure to  pay   future premiums or such custodial account shall be established on behalf   of  such  employee whose rights therein are non-forfeitable. Neither the   state, or a political subdivision thereof, nor an employer  shall  be  a   party to any annuity contract purchased or custodial account established   in  whole  or  in  part with payments pursuant to said agreement, and no   retirement, death or other benefit shall be payable  by  the  state,  or   political subdivision thereof, or by an employer under such agreement or   such annuity contract or custodial account.3.  Subject  to  approval  and  filing, as hereinafter provided by the   comptroller, any  such  agreement  shall  specify  the  amount  of  such   reduction,  and  the  effective  date  thereof, and shall be binding and   irrevocable as to both parties thereto during the continuation  of  such   employee's  employment  with  the employer; provided, however, that such   agreement may be terminated in  accordance  with  university  guidelines   upon  notice  in  writing  by  either party. Such termination shall take   effect at the beginning of the payroll period the first day of which  is   nearest   to   the  thirtieth  day  following  the  day  on  which  such   notification of termination was (i) received by  the  employer,  in  the   event such termination is initiated by the employee, or (ii) sent to the   employee in the event such termination is initiated by the employer.4. The board of trustees of state university with respect to the state   university  and the community colleges, and the board of trustees of the   city university with respect to employees of the city university of  New   York,  shall  designate  the insurer or insurers from which such annuity   contracts or in the case of custodial accounts, the company or companies   from whom regulated investment company shares  shall  be  purchased.  In   making  such  designation,  due  consideration shall be given to (a) the   nature and extent of the rights and benefits to be provided by contracts   for such special annuity or custodial account for  employees  and  their   beneficiaries,  (b)  the  relation  of  such  rights and benefits to the   amount  of  contributions  to  be  made  for  such  contracts,  (c)  the   suitability  of  such  rights and benefits to the needs and interests of   employees, and to the interests  of  employers  in  the  employment  and   retention  of  employees,  and  (d)  the  authority  and  ability of the   designated insurer or insurers or designated  company  or  companies  to   provide rights and benefits under such contracts or custodial accounts.5.  The  board  of  trustees  of state university, with respect to the   state university and the community colleges, and the board  of  trustees    of  the city of New York with respect to the city university, are hereby   authorized to provide for  the  administration  of  a  program  for  the   purchase  of  such  special  annuities  or  establishment  of  custodial   accounts,  and to perform or authorize the performance of such functions   as may be necessary for such purpose in accordance with this section.6. No agreement for reduction of salary as authorized by this  section   or  any termination thereof shall become effective until approved by and   filed  with  the  comptroller.  Upon  such  approval  and   filing   the   comptroller shall reduce an employee's salary pursuant to said agreement   and  pay  an  amount  equal  to  the  amount agreed upon for such salary   reduction as an employer  contribution  to  the  designated  insurer  or   insurers  or  designated  custodian or custodians.   Notwithstanding the   reductions of salary authorized by  this  article,  (i)  the  amount  of   employer  and  employee contributions otherwise required on behalf of an   employee electing the optional retirement program pursuant  to  articles   eight-B  or  one  hundred twenty-five-A of this chapter, as the case may   be, shall continue to be made  on  the  basis  of  the  salary  of  such   employee without regard to such reduction, or (ii) in the event a member   of a public retirement system in this state agrees to a reduction of his   salary  in  accordance  with  this subdivision, such agreement shall not   cause him to lose any benefits under such public  retirement  system  to   which  he  would  be  otherwise entitled had he not agreed to reduce his   salary for  the  purpose  of  having  a  special  annuity  purchased  or   contributions  to  a  custodial  account  made  on  his  behalf, and any   required employer and employee contributions shall continue to  be  made   on  the  basis  of  the  salary  of such employee without regard to such   reduction.  Any survivor's benefit payable pursuant to the civil service   law shall be based upon the salary of such employee  without  regard  to   the reduction authorized by this article.7.  Any  payroll  deduction,  other  than  income  tax withholdings as   required by law, which may be required or authorized  pursuant  to  law,   contract,  agreement,  or  any  other instrument, the amount of which is   determined in relation to an employee's earnings, shall be based on  the   salary  of such employee without regard to reduction thereof pursuant to   any agreement authorized by this article.8. An employee agreeing to have his salary reduced in accordance  with   this article shall be paid an amount equal to his salary less the amount   of   the  reduction  pursuant  to  such  agreement  and  any  deductions   authorized by law, such amount to  be  paid  in  equal  installments  in   accordance with the payroll procedure otherwise appropriate.9. Payments for contracts providing for a special annuity or custodial   account  shall  be  made by the comptroller to the designated insurer or   insurers or designated custodians out of moneys otherwise  available  in   accordance  with  law  for  salaries  of  the  employees  for  whom such   annuities are purchased or contributions to such custodial accounts  are   made.10.  Nothing  contained  in  this  section shall impair or prevent any   agreements which have heretofore, or  may  hereafter  be,  entered  into   between  Alfred  university  and  any  employee  of the state college of   ceramics under the management and control of Alfred  university  as  the   representative  of  the  state  university  trustees, or between Cornell   university and any employee of the state colleges of  agriculture,  home   economics,  veterinary  medicine  or industrial and labor relations, the   state  agricultural  experiment  station  at  Geneva,   or   any   other   institution  or  agency  under  the  management  and  control of Cornell   university as  representative  of  the  state  university  trustees  for   reduction  of  the basic annual salary of any such employee as otherwise   fixed by or pursuant to  law  and  purchase  of  a  special  annuity  or    contribution  to  a  custodial account on his behalf. In the case of any   such employee whose salary is paid directly to him  by  the  state,  the   comptroller is hereby authorized to reduce his salary in accordance with   any  such agreement as certified on the appropriate payroll and upon the   audit and warrant of the comptroller the amount of  any  such  reduction   shall  be  paid  to Alfred university or Cornell university, as the case   may be, out of moneys  appropriated  and  otherwise  available  for  the   payment  of  such employee's salary, for the purchase by such university   of a special annuity or contribution to a  custodial  account  for  such   employee. No agreement for reduction of salary and purchase of a special   annuity  or  contribution to a custodial account by any employee to whom   this subdivision is applicable shall cause him to lose any  benefits  to   which  he would otherwise be entitled by reason of membership in the New   York state and local  employees'  retirement  system  and  any  required   employer  and employee contributions to such system shall continue to be   made on the basis of the salary of such employee without regard to  such   reduction.  In  the  case  of  any  such  employee electing the optional   retirement program the amount of  employer  and  employee  contributions   otherwise  required shall continue to be made on the basis of the salary   of such employee  without  regard  to  such  reduction.  Any  survivor's   benefit  payable pursuant to the civil service law shall be based on the   salary of any employee to whom this subdivision  is  applicable  without   regard  to  his  agreement for reduction thereof. Subdivisions seven and   eight of this section shall apply to employees to whom this  subdivision   is  applicable  who  enter  into  agreements for reduction of salary and   purchase of special annuities or contribution to a custodial account.