2023 New York Laws › EDN - Education › Title 1 - General Provisions › Article 11 - State Teachers' Retirement System for Public School Teachers › 521 - Collection of Contributions.

§ 521. Collection  of  contributions.  1.  The  collection of members'
contributions shall be as follows:
a. Each employer shall cause to be deducted on each and every  payroll
of  a  contributor  for  each and every payroll period, the contribution
payable by such contributor as provided in this article.  Each  employer
shall  certify  to  the  treasurer  of  said  employer on each and every
payroll a statement as voucher for the amounts so deducted.
b. The treasurer of each employer on receipt from the employer of  the
voucher for deductions from the salaries of teachers as provided in this
article  shall transmit monthly or at such times as the retirement board
shall designate, the amount specified in such voucher to  the  secretary
of  the  retirement  board.  The secretary of the retirement board after
making record of all such receipts shall transmit them to  the  head  of
the  division  of the treasury in the department of taxation and finance
for use according to the provisions of this article.
But nothing in this section shall prevent the  retirement  board  from
modifying  the  method of collecting the contribution of members so that
employers may retain the amounts so deducted and  have  a  corresponding
amount deducted from the appropriation for the support of common schools
otherwise payable to them.
2.  The  collection  of  employers'  contributions  shall  be  made as
follows:
a. Upon the  basis  of  each  actuarial  determination  and  appraisal
provided herein, the retirement board shall annually prepare and certify
to  the  commissioner  of  education  a  statement  of  the total amount
necessary to be paid by all employers for the ensuing fiscal year to the
pension accumulation and expense funds as provided under subdivision two
of section  five  hundred  seventeen  and  under  section  five  hundred
nineteen of this article. Upon the basis of the rate of contribution for
supplemental   retirement  allowances,  determined  in  accordance  with
section five hundred thirty-two of this article,  the  retirement  board
shall  certify to the commissioner of education a statement of the total
amount necessary to be paid by all employers for the ensuing fiscal year
to the supplemental retirement allowance fund. Said certification  shall
include  interest  on  amounts  necessary  to repay advances made to the
supplemental retirement allowance fund  pursuant  to  subdivision  f  of
section  five  hundred thirty-two of this article computed from the date
of such advances at the rate determined in accordance with  paragraph  f
of this subdivision.
b.  The  commissioner  of  education  shall include in the certificate
which he files with the state comptroller showing the  amount  of  state
funds  apportioned  to  the  school districts within each county for the
support of  common  schools,  a  statement  showing  the  amount  to  be
contributed  by each employer in each of such counties as required under
this article.
The amount to be contributed by each employer except those who operate
local district pension systems, shall be such percentage  of  the  total
compensation  or  salaries of all teachers in his employ who are members
of the retirement system as the  aggregate  amount  of  the  normal  and
deficiency   contributions   for  the  year  shall  bear  to  the  total
compensation or salaries paid by all employers, except those who operate
local district pension systems, to all teachers who are members  of  the
retirement system.
c.  The  comptroller  shall issue his warrant to the custodian of such
fund directing such custodian to credit to the pension accumulation fund
and expense fund respectively, from the appropriation for the support of
common schools the amounts required to be made as contributions to  such
funds  by  the employers as shown by the certificate of the commissioner

of education  filed  with  him  as  directed  in  paragraph  b  of  this
subdivision.
d.  The  comptroller,  in  issuing  his  warrant  to the custodian for
payment  to  each  county  treasurer  of  that  portion  of  the  moneys
apportioned for the support of common schools, shall deduct therefrom an
amount  equal  to  the amount required to be contributed by employers of
such county,  as  shown  by  the  certificate  of  the  commissioner  of
education  of  this  state  filed  with  the  comptroller as required by
paragraph b of this subdivision.
e. In order to  meet  the  financial  requirements  of  this  article,
employers  who  obtain  funds directly by taxation are hereby authorized
and directed to levy annually such additional taxes as are  required  to
provide  the  funds  deducted  from  the  amounts  apportioned  to  such
employers from the appropriation of the state for  the  support  of  the
common schools.
f. Employers whose payments from the moneys apportioned from the state
for the support of common schools are insufficient to pay the amount due
and owing the system, or who do not receive such payments, shall pay the
system  each  year  the  amount  of contributions due and owing from the
employer pursuant to this article within thirty days  from  the  date  a
bill  is  mailed by the system. Interest, at a rate equal to the average
yield payable on fifty-two week United States  treasury  bills  on  June
thirtieth  immediately  preceding  the  day  the  bill  is mailed by the
system, shall accrue on the outstanding amount due and owing  commencing
with the thirty-first day after the bill is mailed.
g.  Whenever  the  system  determines  the  contributions  made  by an
employer are less than the percentage of total compensation or  salaries
of  members of the system in the employ of such employer, as required by
this article, such employer shall pay the system such deficiency  within
thirty days from the date a bill is mailed by the system. Interest, at a
rate  equal to the average yield payable on fifty-two week United States
treasury bills on June thirtieth immediately preceding  the  day  before
the bill is mailed by the system, shall accrue on the outstanding amount
due  and  owing  commencing  with the thirty-first day after the bill is
mailed.
h. Notwithstanding any provision of law to  the  contrary,  commencing
with the payments made in the fiscal year beginning July first, nineteen
hundred   ninety,   and   each  fiscal  year  thereafter,  the  employer
contributions due and payable as determined pursuant to  the  provisions
of  this article and the employee contributions due and payable pursuant
to this article and articles fourteen and fifteen of the retirement  and
social  security law, on account of compensation paid in the fiscal year
immediately preceding, and those employer contributions due and  payable
in  each  fiscal  year pursuant to chapter six hundred sixty-five of the
laws of nineteen hundred eighty-four shall be  made  to  the  retirement
system and collected in the manner set forth in this section each fiscal
year in three payments, each equal to thirty-three and one-third percent
of  the  total  amount  due for such fiscal year. Such payments shall be
paid on September fifteenth, October fifteenth, and  November  fifteenth
of   each  fiscal  year.  If  a  participating  employer  underpaid  its
obligation to the retirement system, such underpayment as determined  by
the  retirement system shall be deducted from the amounts apportioned to
such employer from the appropriation of the state for the support of the
common schools due and payable the next April fifteenth. Employers whose
payments from such appropriation are insufficient to pay the amount  due
and  owing  the  system,  or  who do not receive such payments, shall be
billed by the system for such underpayment and shall pay the system  the
amount  due  within  thirty  days  from the date a bill is mailed by the

system. The amount of any employer overpayment of its obligation to  the
retirement system, as determined by such system shall be a credit to the
employer and shall reduce by an equal amount thereof the initial payment
to  be  made  by  such  employer  to  such system on the next succeeding
September fifteenth.
i. Notwithstanding any provision of law to the contrary, the  employer
and  employee  contributions  due  and  payable  in the nineteen hundred
eighty-nine--ninety fiscal year on account of compensation paid  in  the
nineteen  hundred  eighty-eight--eighty-nine fiscal year which were paid
prior to April first, nineteen hundred ninety shall be  deemed  (to  the
extent  such amount is sufficient) to have consisted of all the employee
contributions due and payable pursuant  to  this  article  and  articles
fourteen  and  fifteen  of the retirement and social security law in the
nineteen hundred eighty-nine--ninety  fiscal  year  and  those  employer
contributions  due  and  payable in such fiscal year pursuant to chapter
six hundred sixty-five of the laws of nineteen hundred eighty-four;  and
the  remaining employer contributions so paid shall be applied evenly to
the payments due and payable on September  fifteenth,  nineteen  hundred
ninety,   October   fifteenth,  nineteen  hundred  ninety  and  November
fifteenth,  nineteen  hundred  ninety  and  the  employer  contributions
amounting  to  eight  hundred seventy-three million seven hundred eleven
thousand six hundred fifteen dollars  ($873,711,615),  due  and  payable
pursuant  to  the  provisions  of  this  section in the nineteen hundred
eighty-nine--ninety fiscal year  on  account  of  compensation  paid  in
nineteen  hundred  eighty-eight--eighty-nine  fiscal  year, except those
employer contributions due and payable in such fiscal year  pursuant  to
chapter   six  hundred  sixty-five  of  the  laws  of  nineteen  hundred
eighty-four, shall  be  deferred  and  payment  shall  be  made  to  the
retirement  system  in  fifteen  equal  annual  payments of ninety-eight
million five hundred thirty-seven thousand five  hundred  seven  dollars
($98,537,507)  on  October  fifteenth,  commencing on October fifteenth,
nineteen hundred ninety. Such payments are  calculated  at  an  interest
rate of eight percent per annum. Provided, however, the retirement board
is  directed  to permit the pre-payment of the amounts outstanding under
this paragraph. The retirement board shall: (1) On or  before  September
first,  nineteen  hundred  ninety, in addition to the amount due for the
current fiscal year billing and for the payment of the amortized  annual
installment,  furnish  the  total amount due and be authorized to accept
pre-payment in full  of  said  amount  by  October  fifteenth,  nineteen
hundred  ninety.  (2)  On  or before each September first thereafter, in
addition to the amount due for the current fiscal year billing  and  for
the  payment  of  the  annual  amortized  installment, furnish the total
amount still outstanding and be authorized to accept the pre-payment  of
any  portion of the balance remaining to be paid by October fifteenth of
that year.
j. Prior to June first, nineteen hundred ninety, the valuation rate of
interest adopted  by  the  retirement  board  on  April  twenty-seventh,
nineteen  hundred  eighty-nine,  may  be  retroactively revised to eight
percent by the retirement board, as recommended by the  actuary,  as  if
adopted  at the April twenty-seventh, nineteen hundred eighty-nine board
meeting, and the employer contribution rate, adopted by  the  retirement
board  at  the  April twenty-seventh, nineteen hundred eighty-nine board
meeting, revised by the retirement board  at  the  July  twenty-seventh,
nineteen hundred eighty-nine board meeting, may be retroactively amended
by  the  retirement  board  as  if  adopted  at the July twenty-seventh,
nineteen hundred eighty-nine board meeting and applied to  contributions
paid   in   the   nineteen   hundred   ninety--ninety-one  fiscal  year.
Notwithstanding any provision of law to the contrary, the actions of the

retirement board pursuant to the provisions of this paragraph  shall  be
deemed  reasonable,  prudent  and  proper.  No  member of the retirement
board, officer, or employee of the New York state  teachers'  retirement
system  shall  incur or suffer any liability whatsoever by reason of any
actions pursuant to this paragraph, and such system shall save  harmless
and  indemnify  all  members  of  the retirement board, its officers and
employees from financial loss arising out of any  claim,  demand,  suit,
action  or  judgment  as  a result of the actions taken pursuant to this
paragraph provided that such person shall, within five  days  after  the
date on which he is served with any summons, complaint, process, notice,
demand,  claim  or pleading, deliver the original or a true copy thereof
to the legal advisor of such  system.  Upon  such  delivery,  the  legal
advisor  of such system may assume control of the representation of such
person  in  connection  with  such  claim,  demand,  suit,   action   or
proceeding.  Such person shall cooperate fully with the legal advisor of
the system or any other person designated  to  assume  such  defense  in
respect of such representation or defense.
k.  The  retirement  board is authorized to adopt procedures and/or to
promulgate rules and regulations as it deems  necessary  to  adjust  and
reconcile any payments from employers to actual amounts due whether such
payments  were received prior or subsequent to the effective date of the
chapter of  the  laws  of  nineteen  hundred  ninety  which  added  this
paragraph to this section.
l.  The  provisions  of  paragraphs  h and i of this subdivision shall
constitute a contract and the rights of the  New  York  state  teachers'
retirement   system   thereunder  shall  not  be  impaired  in  any  way
whatsoever.
m. In addition to any other payment or collection  procedure  provided
by  this article, if the amounts credited from the appropriation for the
support of common schools are insufficient to fully cover the amounts to
be contributed by the employers, the retirement board is  authorized  to
certify  the  unpaid  amount  to  the  state  comptroller, and the state
comptroller shall, to  the  extent  not  otherwise  prohibited  by  law,
withhold  such amount from any succeeding payment from any other form of
state aid provided to the employer. If any employer  fails  to  pay  the
amounts  required  to  be  contributed  pursuant  to  this  section, the
retirement system shall be entitled  to  reasonable  attorney  fees  and
other  expenses  incurred  to  collect  such amounts due and owing. Fees
shall be determined pursuant to prevailing market rates for the kind and
quality of the services furnished.
n. Notwithstanding any other provision of law  to  the  contrary,  the
board  of  education  or  trustees  of  a  school  district  which  is a
participating employer, which  has  elected  to  make  payments  of  the
employer contributions due and payable to the retirement system pursuant
to paragraph i of this subdivision in amortized annual installments, and
which  has  determined  to  make pre-payment of the total amount of such
contributions outstanding in accordance with said paragraph i, may adopt
a bond resolution authorizing  the  refinancing  of  such  debt  by  the
issuance of bonds in the amount of such pre-payment without conducting a
vote  on  a  tax  to  be  collected  in installments, provided that such
refinancing will result in savings to the school district, as  certified
by the state comptroller, and provided further that the issuance of such
obligations  otherwise  complies  with  the  requirements  of  the local
finance law and this chapter.
3. Stable contribution option for participating educational  employers
for  the  two thousand thirteen - two thousand fourteen plan year. a. In
addition to the definitions in section five hundred one of this article,
when used in this subdivision:
(1) "participating educational employer" shall mean a school  district
or  board  of  cooperative  educational services which elects to pay the
stable contribution amount in the manner provided in this subdivision;
(2)  "stable  contribution  amount"  shall mean an amount equal to the
stable contribution rate  multiplied  by  the  pensionable  salary  base
(exclusive  of  payments  for  group  term  life  insurance,  deficiency
contributions, adjustments relating to prior fiscal years'  obligations,
obligations pertaining to retirement incentives or any other obligations
that  a  participating  educational  employer  is permitted to pay on an
amortized basis);
(3) "stable contribution rate" shall mean fourteen percent for the two
thousand thirteen - two thousand fourteen plan year and the two thousand
fourteen - two thousand fifteen plan year and the rate as adopted by the
retirement board in accordance with paragraph h of this subdivision; and
(4) "deferred employer  contribution  amount"  shall  mean  an  amount
adequate  to fund the benefits for active and retired members associated
with such participating  educational  employer  had  such  participating
educational  employer  not  elected  the provisions of this subdivision.
Such deferred employer contribution amount shall be calculated for  each
year  of participation in the stable contribution option with associated
interest determined specific to each  applicable  plan  year's  deferred
amount.
b.  Notwithstanding the provisions of this chapter or any other law to
the contrary, the  retirement  board,  in  its  discretion,  shall  have
authority  to  implement  the  provisions  of  this  subdivision. If the
retirement board elects to implement the provisions of this subdivision,
the provisions shall apply to the payment of  participating  educational
employer  contributions  in  the  plan  year  commencing July first, two
thousand thirteen, for the pension bill  paid  on  September  fifteenth,
October  fifteenth, and November fifteenth of two thousand fourteen, and
for the subsequent  six  plan  years.  If  a  participating  educational
employer  does  not  elect  the stable contribution option in the fiscal
year commencing on July first, two thousand  thirteen  for  the  pension
bill  paid  on  September  fifteenth,  October  fifteenth,  and November
fifteenth of two thousand fourteen, it shall not be  eligible  to  elect
the stable contribution option in any succeeding plan year.
c.  For  each  of the seven plan years to which the provisions of this
subdivision apply, the retirement board shall use a stable  contribution
rate  established  by the retirement board for participating educational
employers.
d. If the retirement board, in its  discretion,  decides  to  adopt  a
stable  contribution option pursuant to this subdivision, the retirement
board shall determine the stable contribution amount in each  plan  year
for a participating educational employer pursuant to subparagraph two of
paragraph  a  of this subdivision. Such stable contribution amount shall
be  in  lieu  of  a  participating  educational  employer's  actuarially
required  contribution  rate  of normal and administrative contributions
pursuant to sections five hundred seventeen and five hundred nineteen of
this article for the plan  year  commencing  July  first,  two  thousand
thirteen, and for the next six subsequent plan years.
e.  Any  participating  educational  employer  which elects to pay the
stable contribution amount pursuant to this subdivision  shall  pay  the
amount based on the stable contribution rate for a period of seven years
and   such  option  shall  be  available  to  participating  educational
employers from the two thousand thirteen - two  thousand  fourteen  plan
year  through the two thousand nineteen - two thousand twenty plan year.
In the sixth plan  year,  the  two  thousand  eighteen  -  two  thousand
nineteen plan year, the participating educational employer shall pay the

stable contribution rate and, in addition, commence payment for deferred
employer   contributions   in   accordance  with  paragraph  j  of  this
subdivision.  Commencing with the plan year beginning  July  first,  two
thousand  twenty,  the  participating  educational employer shall resume
payment of the actuarially required  contribution  rate  of  normal  and
administrative contributions pursuant to sections five hundred seventeen
and  five hundred nineteen of this article and, in addition, any payment
for deferred employer contribution amounts in accordance with paragraphs
j and k of this subdivision.
f. A participating educational employer paying a  stable  contribution
amount  shall  remit,  commencing  with  the  July  first,  two thousand
thirteen plan year, an amount determined  by  the  retirement  board  by
adding the following two amounts together:
(1)  the  stable  contribution  amount  calculated  pursuant  to  this
subdivision; and
(2) 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  a
participating  educational  employer is permitted to pay on an amortized
basis.
g.  The  stable  contribution  amount  must  be  paid   in   full   by
participating  educational employers on the dates specified in paragraph
h of subdivision two of this section.
h. Prior to July first, two  thousand  fifteen  and  July  first,  two
thousand  seventeen  the  retirement board is authorized to evaluate the
stable contribution rate used  to  calculate  participating  educational
employer  stable contribution amounts. Such evaluation shall be based on
a  projection  of  assets  and  liabilities  so  as   to   ensure   that
contributions  by  participating educational employers which participate
in the stable contribution option are adequate  to  ensure  that  system
assets  are  sufficient to fund benefits for active and retired members.
The retirement board is authorized to increase the  stable  contribution
rate  by up to two percentage points on July first, two thousand fifteen
and  on  July  first,  two  thousand  seventeen.  The   revised   stable
contribution  rate  resulting  from  the  foregoing evaluations and July
first, two thousand fifteen  and  July  first,  two  thousand  seventeen
stable  rate increases may not, in combination, exceed eighteen percent.
The retirement board is authorized to decrease the  stable  contribution
rate,  if  warranted, but in no event shall the stable contribution rate
be less than fourteen percent.
i.  A  participating  educational  employer  may  elect  to  terminate
participation  in  the  stable contribution option and resume payment of
the actuarially  required  contribution  of  normal  and  administrative
contributions  in  accordance  with  sections five hundred seventeen and
five hundred nineteen of this  article.  Provided,  however,  that  such
participating   educational   employer   which   elects   to   terminate
participation shall make a reconciliation contribution to the retirement
system, at an amount to be determined by the retirement board,  adequate
to fund the benefits for active and retired members associated with such
participating  educational  employer  had such participating educational
employer  not  elected  the  provisions  of   this   subdivision.   Such
reconciliation  contribution  shall  be made over a period not to exceed
five  years  and  shall  be  made  in  addition  to   the   normal   and
administrative contributions pursuant to sections five hundred seventeen
and  five  hundred  nineteen  of this article for the plan year in which
such participating educational employer chooses to resume payment of the
normal  and  administrative  contributions  pursuant  to  sections  five
hundred  seventeen  and  five  hundred nineteen of this article. For the

purposes of determining  the  reconciliation  contribution  amount,  the
retirement   board  shall  assume  interest  on  the  deferred  employer
contribution amount at a rate which  approximates  the  monthly  average
yield on United States treasury securities at ten-year constant maturity
for the twelve-month period preceding August first of each year plus one
percentage  point.  The  interest  rate  associated  with  such deferred
employer contribution amount shall be specific to each  applicable  plan
year's deferred amount.
j.  In  the  sixth  plan  year,  commencing  July  first, two thousand
eighteen, all participating educational  employers  having  elected  the
stable  contribution  option  shall  continue  to  contribute the stable
contribution amount to the retirement system and remit to the retirement
system the accrued deferred employer contributions  accumulated  in  the
first  five  plan  years.  The  stable  payment of the deferred employer
contribution accrued by the participating educational employer shall  be
paid  to  the  retirement  system  in  equal  annual installments over a
five-year period, with interest on the unpaid portion to be based on the
monthly average yield on United States treasury securities at a ten-year
constant maturity for the twelve-month period preceding August first  of
each  year  plus one percentage point. The interest rate associated with
such deferred employer contribution amount shall be specific to the rate
as measured on August first of the applicable plan year to such deferred
amount. Payments of the stable installments shall be made  in  the  same
manner  as  other  employer contributions as prescribed in this article.
Nothing in this subdivision  shall  be  construed  as  prohibiting  such
participating   educational   employer   from  making  a  reconciliation
contribution in accordance with paragraph i of this subdivision.
k. In the eighth  plan  year,  commencing  July  first,  two  thousand
twenty,  all  participating  educational  employers  having  elected the
stable contribution option  shall  resume  payment  of  the  actuarially
required contribution rate of normal and administrative contributions in
accordance with section five hundred seventeen and five hundred nineteen
of   this  article.  Additionally,  such  employer  will  remit  to  the
retirement  system   the   accrued   deferred   employer   contributions
accumulated  during  the  plan years commencing July first, two thousand
eighteen  and  July  first,  two  thousand  nineteen   of   the   stable
contribution  option.  The  stable  payment  of  the  deferred  employer
contribution accrued by the participating educational employer shall  be
paid  to  the  retirement  system  in  equal  annual installments over a
five-year period with interest on the unpaid portion to be based on  the
monthly average yield on United States treasury securities at a ten-year
constant  maturity for the twelve-month period preceding August first of
each year plus one percentage point. The interest rate  associated  with
such deferred employer contribution amount shall be specific to the rate
as measured on August first of the applicable plan year to such deferred
amount.  Payments  of  the stable installments shall be made in the same
manner as other employer contributions as prescribed  in  this  article.
Nothing  in  this  subdivision  shall  be  construed as prohibiting such
participating  educational  employer  from   making   a   reconciliation
contribution in accordance with paragraph i of this subdivision.
l.   Notwithstanding  the  provisions  of  this  subdivision,  if  the
retirement board decides to  adopt  a  stable  contribution  option,  in
accordance   with  this  subdivision,  and  the  funded  status  of  the
retirement system reaches a threshold below eighty percent at the end of
any plan year during the seven plan year term of this option, the option
shall cease and participating educational employers who have elected the
stable contribution option  shall  resume  payment  of  the  actuarially
required contribution rate of normal and administrative contributions in

accordance with section five hundred seventeen and five hundred nineteen
of  this article. Additionally, such employer will make a reconciliation
contribution to the retirement system, at an amount to be determined  by
the  retirement  board,  adequate  to  fund  the benefits for active and
retired members associated with such participating educational  employer
had  such  participating educational employer not elected the provisions
of this section. The  payment  of  the  deferred  employer  contribution
accrued  by  the participating educational employer shall be paid to the
retirement system in equal annual installments over a  five-year  period
with  interest  on the unpaid portion to be based on the monthly average
yield on United  States  treasury  securities  at  a  ten-year  constant
maturity for the twelve-month period preceding August first of each year
plus  one  percentage  point.  The  interest  rate  associated with such
deferred employer contribution amount shall be specific to the  rate  as
measured  on  August  first of the applicable plan year to such deferred
amount. Payments of the stable installments shall be made  in  the  same
manner as other employer contributions as prescribed in this article.
m.  The  retirement  board  is  authorized  to  promulgate  rules  and
regulations for implementation of this subdivision.