2023 New York Laws › GMU - General Municipal › Article 2 - General Municipal Finances › 6-P - Employee Benefit Accrued Liability Reserve Fund.

§  6-p.  Employee  benefit  accrued  liability  reserve  fund.  1. The
following terms when used or referred to in this section, shall have the
following meaning:
(a) "Municipal corporation" shall mean  a  municipal  corporation,  as
defined in section two of this chapter, school district, except a school
district in a city with a population of one hundred twenty-five thousand
or  more,  board  of  cooperative educational services, fire district, a
district corporation and a special improvement district  governed  by  a
separate board of commissioners.
(b)  "Employee  benefits"  shall mean the cash payment of the monetary
value of accrued and accumulated  but  unused  and  unpaid  sick  leave,
personal leave, holiday leave, vacation time, time allowances granted in
lieu of overtime compensation and any other forms of payment for accrued
but  unliquidated  time  earned  by  municipal  employees and payable to
municipal employees upon termination of service, whether  by  retirement
or  otherwise,  as  authorized  by  ordinance,  local law, or collective
bargaining agreement or section six of the civil service law  for  which
expenditures may be made pursuant to subdivision two of this section.
2.  (a) The governing board of any municipal corporation may establish
a reserve fund to be known as the  employee  benefit  accrued  liability
reserve  fund.  Upon the creation of the fund, the municipality may make
expenditures from the fund for any accrued employee benefit payment  due
an  employee  of  the  municipal  corporation  upon  termination  of the
employee's service, provided however, that no municipality shall make an
expenditure from such fund  for  any  employee  benefit  for  which  the
municipal  corporation  has  established  a reserve fund under any other
provision of law.
(b) Notwithstanding any other provision of law to the contrary,  where
a  municipal corporation has previously established a reserve fund for a
type of accrued employee benefits for which  expenditures  may  be  made
under  paragraph (a) of this subdivision, the municipal corporation may,
by resolution, discontinue such other  reserve  fund  and  transfer  any
unexpended  balance  to the reserve fund established under this section;
provided, however, that to the extent such unexpended balance is subject
to any liabilities incurred or accrued against the other  reserve  fund,
any  unexpended  balances  so  transferred  shall  only be used for such
incurred  or  accrued  liabilities  including  expenses  in   connection
therewith.  Prior  to  the discontinuance of the other reserve fund, the
fiscal and legal officers of the municipal corporation shall certify  to
the  governing board thereof the amount that may be necessary to satisfy
all liabilities incurred or accrued against it.
3. There may be paid into such fund:
(a) such amounts as may be provided by budgetary appropriations;
(b) amounts  from  any  other  fund  authorized  by  this  chapter  by
resolution subject to permissive referendum; and
(c) such other funds as may be legally appropriated.
4.  The  moneys  in  such  fund  shall be deposited and secured in the
manner provided by section ten of this article. The governing board,  or
the chief fiscal officer of such municipal corporation, if the governing
board  shall  delegate  such  duty to him, may invest the moneys in such
fund in the manner provided by  section  eleven  of  this  article.  Any
interest  earned  or  capital gain realized on the money so deposited or
invested shall accrue to and become part of such fund.
5. The chief fiscal officer shall account for this fund  separate  and
apart from all other funds of the municipal corporation. Such accounting
shall  show: the source, date and amount of each sum paid into the fund;
the interest earned by such fund; capital gains or losses resulting from
the sale of investments of this fund; the order, purpose  thereof,  date

and  amount  of  each  payment  from  this fund; the assets of the fund,
indicating cash balance and a schedule of investments. The chief  fiscal
officer, within sixty days of the end of each fiscal year, shall furnish
a  detailed  report  of  the operation and condition of this fund to the
governing board. The chief fiscal officer shall  also  keep  a  separate
account for each kind of employee benefit funded pursuant to subdivision
two of this section.
6.  Any  action  or  claim  for  accrued  employee  benefits  shall be
compromised or settled by the governing board, officer  or  employee  of
the  municipal corporation authorized to settle or compromise actions or
claims on behalf of the municipal corporation.
7. An expenditure may be made from this fund for the payment of all or
part of the cost, including interest, of:
(a) the cash payment of the monetary value of accumulated  or  accrued
and  unused  sick  leave,  holiday leave, vacation leave, time allowance
granted in lieu of overtime compensation and other forms of payment  for
accrued  leave  time  and  benefits  due  to  a  municipal employee upon
termination of municipal  employment  and  separation  from  service  as
required  by  ordinance,  local  law, collective bargaining agreement or
section six of the civil service law.
(b) the reasonable costs of the administration of the reserve fund.
(c) expert or professional services rendered in  connection  with  the
investigation,  adjustment or settlement of claims, actions or judgments
relating to claims for accrued employee  benefits  as  defined  in  this
section.
8. No member of the governing board shall:
(a)  authorize  a  withdrawal from this fund for any purpose except as
provided in this section; or
(b) expend any money withdrawn from this fund for a purpose other than
as provided in this section.
Any member of the governing board who violates the provision  of  this
subdivision shall be guilty of a misdemeanor.
9.  If,  after  the  establishment  of  such  fund,  the  municipality
determines that such fund is no longer needed, the moneys  remaining  in
such  fund may be transferred to any other reserve fund of the municipal
corporation authorized by this chapter that is comprised of moneys which
were raised on the same tax base as  the  moneys  in  the  reserve  fund
established  under  this section or section thirty-six hundred fifty-one
of the education law, only to the extent that the moneys  in  this  fund
shall  exceed  the  sum  sufficient  to  pay all liabilities incurred or
accrued against it. Prior to the discontinuance of such fund, the fiscal
and legal officers of such municipal corporation shall  certify  to  the
governing  board  thereof  the amount that may be necessary to retain in
such fund to satisfy all liabilities incurred or accrued against it  and
such  sum  shall  be retained in the fund for payment of such amounts or
until later certified that such funds are no longer needed.
10.  Notwithstanding  any  provision  of  law  to  the  contrary,  the
governing  board  of  a  school  district  may,  during the two thousand
fifteen--two thousand sixteen school year, authorize a  withdrawal  from
this fund in an amount not to exceed the lesser of: (a) the dollar value
of  excess funding in the fund as determined by the comptroller pursuant
to section thirty-three of this chapter or (b) the amount of the  school
district's  remaining  gap  elimination  adjustment as calculated by the
commissioner of education pursuant to subdivision seventeen  of  section
thirty-six hundred two of the education law. Funds withdrawn pursuant to
this  subdivision  may  only  be  used  for  the  purpose of maintaining
educational programming during the two  thousand  fifteen--two  thousand
sixteen  school year which otherwise would have been reduced as a result

of such gap elimination adjustment. Governing boards which make  such  a
withdrawal  shall  submit,  in  a form prescribed by the commissioner of
education,  relevant  information  about  the  withdrawal,  which  shall
include  but  not be limited to, the amount of such withdrawal, the date
of withdrawal, and the use of such withdrawn funds.
11. Notwithstanding any other provision of  law  to  the  contrary,  a
board  of cooperative educational services that has been determined upon
state audit or in its annual independent audit to  have  accumulated  an
excess  in  such  fund  over  the  sum sufficient to pay all liabilities
incurred or accrued against it shall withdraw the amount of such  excess
as  of  the  date  of withdrawal and shall distribute such amount to all
school districts that paid to  such  board  of  cooperative  educational
services  moneys that were deposited to such fund in the same proportion
as the total payments from such school district into such fund bears  to
the  total payments from all school districts into such fund, or, at the
request of the school district,  may  use  such  amount  to  offset  the
administrative  and  capital  expenses payable by the school district in
the current school year, and any such amount attributable to an approved
cost of  service  computed  pursuant  to  subdivision  five  of  section
nineteen hundred fifty of the education law shall not be included in the
approved  cost  of  services  computed  pursuant  to subdivision five of
section nineteen hundred fifty of the  education  law.  Such  withdrawal
shall be made within thirty days after the audit becomes final or within
thirty days after this subdivision takes effect, whichever is later.