2023 New York Laws › STF - State Finance › Article 6 - Funds of the State › 99-AA - Retiree Health Benefit Trust Fund.

§  99-aa.  Retiree  health  benefit  trust  fund.  1.  There is hereby
established in the joint custody of the commissioner of  the  department
of  civil  service  and the state comptroller a special investment trust
fund to be known as the retiree health benefit trust fund,  which  shall
be classified as a fiduciary fund type.
2.  For  purposes  of  this section: (a) "commissioner" shall mean the
commissioner of the department of civil service;
(b) "state" shall mean the state of New York;
(c) "fund", or "trust", or "trust fund" shall mean the retiree  health
benefit trust fund created by this section; and
(d)  "retiree health benefits" shall mean benefits, except pensions or
other benefits funded through a public retirement system, provided or to
be provided by the state as compensation, whether pursuant  to  statute,
contract or other lawful authority, to its current or former officers or
employees,  or  their  families  or  beneficiaries, after service to the
state has ended, including, but not limited to, health care benefits.
3. (a) Notwithstanding any provision  of  law  to  the  contrary,  the
retiree  health  benefit  trust  fund  is  established for the exclusive
benefit of retired state employees and their dependents.
(b) The sole  purpose  of  the  trust  fund  established  pursuant  to
subdivision  one  of  this  section  shall be to fund the retiree health
benefits of retired state employees and their dependents.
4. (a) Payments into and from the trust fund established  pursuant  to
subdivision  one  of  this section shall be made in accordance with this
section.
(b) Contributions to the trust, and any interest or  other  income  or
earnings  on  contributions, shall be irrevocable before all liabilities
of the state government for retiree health benefits have been  satisfied
and shall be solely dedicated to, and used solely for, providing retiree
health  benefits  and  paying  appropriate  and  reasonable  expenses of
administering the trust. No assets, income, earnings or distributions of
the trust shall be subject to any claim of creditors of the state, or to
assignment or execution,  attachment  or  any  other  claim  enforcement
process initiated by or on behalf of such creditors. Except as otherwise
provided  in  subdivision  eight of this section, the commissioner shall
not be responsible for the adequacy of the assets of the trust  to  meet
any other post-employment benefit. The trust may be terminated only when
all  liabilities  of  the  state  for  retiree health benefits have been
satisfied and there is no present or future  obligation,  contingent  or
otherwise,  of  the  state to provide such retiree health benefits. Upon
such termination, any remaining trust assets, after any proper  expenses
of the trust have been paid, shall revert to the state.
(c)  At  the  request  of  the  director  of  the  budget,  the  state
comptroller shall transfer monies from the general  fund  to  the  trust
fund  up  to  and  including  an  amount  equivalent  to  one  and fifty
one-hundredths  of  one  per  centum  of  the  total  actuarial  accrued
liability  included  in  the  state  of  New  York  comprehensive annual
financial report.
(d) Any use of funds for retiree health benefits from such trust  fund
shall not be subject to an appropriation and shall be transferred by the
state  comptroller, at the request of the director of the budget, to the
extent funds are available in such trust fund, to the  health  insurance
fund  for  the  sole  and  exclusive  purpose  of funding retiree health
benefits. The director of the budget shall notify  both  houses  of  the
legislature  in  writing  thirty  days  prior  to  initiating  transfers
pursuant to this authorization.
5. Investments. (a) The commissioner may establish a  trust  in  joint
custody  with  the  state  comptroller  for  the purpose of accumulating
assets to fund the cost of providing retiree health benefits.
(b) The commissioner is hereby declared to be the trustee of the trust
established  pursuant  to  subdivision  one  of  this  section,  and the
commissioner shall delegate responsibility for managing the  investments
of  the  trust  fund  established  pursuant  to  subdivision one of this
section to the state comptroller. The state comptroller shall manage the
investments of the trust fund established pursuant to subdivision one of
this section in  a  careful  and  prudent  manner  consistent  with  the
guidelines and provisions of section ninety-eight this article.
(c)  Any  interest  or  other  income  or  earnings resulting from the
investment of assets of the trust shall accrue to and become part of the
assets of the trust.
6. In accordance with  paragraph  (b)  of  subdivision  five  of  this
section,  the  state comptroller shall develop, in consultation with the
state  health  insurance  council,  a  written  investment  policy   for
selecting  investment options in a manner consistent with the investment
options prescribed in section ninety-eight of this article so  that  the
state  comptroller  may be able to invest fund monies in accordance with
such policy.  Such  policy  shall  include  a  statement  of  investment
objectives  addressing,  in the following order of priority, the ability
to timely meet disbursement requests  without  forced  sale  of  assets,
safety of principal and attainment of market rates of return.
7. Neither the state nor the commissioner shall be liable for any loss
or  expense  suffered  by the trust in the absence of bad faith, willful
misconduct  or  intentional  wrongdoing.  The  commissioner   shall   be
considered  to  be  acting  as  an  officer of the state for purposes of
section seventeen of the public officers law,  provided,  however,  that
the  costs of any defense or indemnification of the commissioner arising
from the exercise of the functions of trustee shall be payable from  the
assets of the trust.
8. Nothing contained in this section shall be interpreted or construed
to: (a) create any obligation in, impose any obligation on, or alter any
obligation of the state to provide retiree health benefits;
(b)  limit  or  restrict  the  authority  of  the  state  to modify or
eliminate retiree health benefits;
(c) assure or deny retiree health benefits; or
(d) require the  state  to  fund  its  liability  for  retiree  health
benefits.