2023 New York Laws › RSS - Retirement and Social Security › Article 2 - New York State Employees' Retirement System › Title 2 - Establishment, Management, Supervision and Financing › 19-A - Employer Contributions for the Two Thousand Ten - Two Thousand Eleven Fiscal Year and Subsequent Fiscal Years.

§ 19-a. Employer contributions for the two thousand ten - two thousand
eleven  fiscal  year  and subsequent fiscal years. a. In addition to the
definitions in section two of this article, when used in this section:
(1) "Amortizing employer"  shall  mean  an  employer  that  elects  to
amortize  a  portion of the employer's annual bill pursuant to paragraph
one of subdivision d of this section for the  two  thousand  ten  -  two
thousand  eleven fiscal year, or any subsequent fiscal year, pursuant to
the system graded contribution rate regardless of whether  the  employer
has  subsequently paid in full all such amortized amounts, and that does
not elect to amortize as an alternative amortizing employer for the  two
thousand thirteen - two thousand fourteen fiscal year.
(1-a)  "Alternative  amortizing  employer"  shall mean a county, city,
town,  village,  school  district,  board  of  cooperative   educational
services,  or  public benefit corporation that operates a public general
hospital located in the county of Westchester, the county  of  Erie,  or
the county of Nassau that, on a form prepared by the comptroller, elects
to and does amortize a portion of the employer's annual bill pursuant to
paragraph  one  of  subdivision  d  of this section for the two thousand
thirteen - two thousand fourteen fiscal year pursuant to the alternative
system graded contribution rate, regardless of whether the employer  has
subsequently paid in full all such amortized amounts.
(2)  "Amount  eligible for amortization" for a given fiscal year shall
mean the amount by which an employer's actuarial contribution  for  such
fiscal  year  exceeds  the  employer's  graded contribution for the same
fiscal year, less any amount from the employer contribution reserve fund
applied to reduce the employer's payment to the  retirement  system  for
the  fiscal  year,  provided,  however,  that  if the employer's average
actuarial contribution rate for the fiscal year is less  than  nine  and
one-half  percent,  then  the  amount eligible for amortization shall be
zero.
(3) "Employer's actuarial contribution" for a given fiscal year  shall
mean  an  employer's  annual  bill  for  such  fiscal  year exclusive of
deficiency contributions and payments on  account  of  group  term  life
insurance,  adjustments  relating  to  prior  fiscal years' obligations,
retirement incentives and prior amortizations.
(4) "Employer's annual bill" shall mean for a given  fiscal  year  the
sum of the following amounts: (i) an employer's normal contributions for
the   fiscal  year  determined  in  accordance  with  paragraph  one  of
subdivision  b  of  section  twenty-three  of  this  article   and   the
comprehensive   structural   reform   program  implemented  pursuant  to
subdivision b of section twenty-three-a of this article,  including  the
provisions  of  subdivision  b of section twenty-three-a of this article
relating to  the  required  minimum  annual  contribution  of  four  and
one-half percent of pensionable salaries; (ii) the employer's deficiency
contributions  and  administration  contributions  for  the  fiscal year
determined in accordance with paragraphs two and three of subdivision  b
of  section  twenty-three of this article; and (iii) any payments by the
employer due in the fiscal year on account of group term life insurance,
adjustments relating to  prior  fiscal  years'  obligations,  retirement
incentives and prior amortizations.
(5)  "Employer's  average  actuarial  contribution  rate"  for a given
fiscal year shall mean an employer's  actuarial  contribution  for  such
fiscal  year  divided  by the employer's payroll for the previous fiscal
year.
(6) "Employer contribution reserve fund"  or  "fund"  shall  mean  the
employer contribution reserve fund established pursuant to subdivision e
of this section.
(7)  "Employer's  graded  contribution"  for a given fiscal year shall
mean  the  amount  determined  by   applying   the   employer's   graded
contribution rate or the alternative system graded contribution rate for
such fiscal year to an employer's payroll for the previous fiscal year.
(8) "Employer's graded payment" for a given fiscal year shall mean the
amount  by  which an employer's graded contribution for such fiscal year
exceeds the employer's actuarial contribution for the same fiscal year.
(9) "Prior amortization" shall mean with respect  to  a  given  fiscal
year  any  payment  due  in such fiscal year on account of an obligation
from a prior fiscal year that an employer is permitted  to  pay  to  the
retirement system on an amortized basis.
(10)  "System  average actuarial contribution rate" for a given fiscal
year shall mean the sum of all employers'  actuarial  contributions  for
such  fiscal  year  divided by the sum of all employers' payroll for the
previous fiscal year.
(11) "System graded contribution rate" for a given fiscal  year  shall
mean  the  graded contribution rate for the retirement system as a whole
determined for such fiscal  year  pursuant  to  subdivision  c  of  this
section.
(12)  "Alternative system graded contribution rate" for a given fiscal
year shall mean the graded contribution rate for the  retirement  system
as  a  whole determined for such fiscal year pursuant to subdivision c-1
of this section.
(13) "Employer's graded contribution rate" for  a  given  fiscal  year
shall mean (i) the system graded contribution rate for such fiscal year,
or  (ii)  in  the  case  of  an  individual  employer for which a graded
contribution rate has been determined pursuant  to  paragraph  three  of
subdivision  c  of  this  section,  the graded contribution rate for the
individual employer for such fiscal year.
b. Notwithstanding the provisions of this chapter or any other law  to
the  contrary,  the  comptroller,  in  his or her discretion, shall have
authority to implement  this  section.  If  the  comptroller  elects  to
implement  this  section,  the provisions of this section shall apply to
the payment of employer contributions for the fiscal year commencing  on
April  first,  two thousand ten, and for subsequent fiscal years. If the
comptroller, within his or  her  discretion,  elects  to  implement  the
alternative  system  graded contribution rate as provided by subdivision
c-1 of this section, the provisions of paragraph one-a of subdivision  d
of this section shall apply to the payment of employer contributions for
the  fiscal  year  commencing on April first, two thousand thirteen, and
for subsequent fiscal years.
c. For each fiscal year to which the provisions of this section apply,
the comptroller shall determine  a  graded  contribution  rate  for  the
retirement system as a whole in the manner provided in this subdivision.
(1)  For  the  two  thousand ten - two thousand eleven fiscal year the
system graded contribution rate shall be nine and one-half percent.
(2) For the two thousand eleven - two thousand twelve fiscal year, and
subsequent fiscal years,  system  graded  contribution  rates  shall  be
determined as follows:
(i)  if  the  system  average  actuarial contribution rate for a given
fiscal year is at least nine and one-half percent and exceeds the system
graded contribution rate for the immediately preceding  fiscal  year  by
more than one percentage point, then the system graded contribution rate
for  the  given  fiscal  year shall equal the system graded contribution
rate for the immediately  preceding  fiscal  year  plus  one  percentage
point,  provided,  however,  that  in  no  event shall the system graded
contribution rate be less than nine and one-half percent;
(ii) if the system average actuarial contribution  rate  for  a  given
fiscal  year is at least nine and one-half percent and either equals the
system graded contribution rate for  the  immediately  preceding  fiscal
year  or exceeds the system graded contribution rate for the immediately
preceding  fiscal  year by one percentage point or less, then the system
graded contribution rate for the  given  fiscal  year  shall  equal  the
system  average  actuarial  contribution  rate  for  such  fiscal  year,
provided, however, that in no event shall the system graded contribution
rate be less than nine and one-half percent;
(iii) if the system average actuarial contribution rate  for  a  given
fiscal  year is less than nine and one-half percent and greater than the
system graded contribution rate for  the  immediately  preceding  fiscal
year, then the system graded contribution rate for the given fiscal year
shall equal the system actuarial contribution rate for such fiscal year;
(iv)  if  the  system  average actuarial contribution rate for a given
fiscal year is smaller than the system graded contribution rate for  the
immediately  preceding  fiscal  year  by more than one percentage point,
then the system graded contribution rate for the given fiscal year shall
equal the system graded contribution rate for the immediately  preceding
fiscal year minus one percentage point; and
(v)  if  the  system  average  actuarial contribution rate for a given
fiscal year either equals the system graded contribution  rate  for  the
immediately  preceding  fiscal year or is smaller than the system graded
contribution rate for the  immediately  preceding  fiscal  year  by  one
percentage  point  or less, then the system graded contribution rate for
the given fiscal year shall equal the system actuarial contribution rate
for such fiscal year.
(3) The comptroller shall determine a  graded  contribution  rate  for
individual   employers   as  provided  in  this  paragraph.  The  graded
contribution rate for an individual  employer  is  the  product  of  the
system's  graded  contribution  rate  with  the  ratio of the employer's
average actuarial contribution rate to the  system's  average  actuarial
contribution  rate,  not  to  exceed one hundred percent of the system's
graded contribution rate.
c-1. For each fiscal year to which  the  provisions  of  this  section
apply,  the  comptroller  shall  determine  an alternative system graded
contribution rate for the retirement system as a  whole  in  the  manner
provided in this subdivision.
(1)  For the two thousand thirteen - two thousand fourteen fiscal year
and the two thousand fourteen - two thousand fifteen  fiscal  year,  the
alternative system graded contribution rate shall be twelve percent.
(2)  For  the  two thousand fifteen - two thousand sixteen fiscal year
and  for  subsequent  fiscal  years,  the  alternative   system   graded
contribution rates shall be determined as follows:
(i)  if  the  system  average  actuarial contribution rate for a given
fiscal year is at least  nine  and  one-half  percent  and  exceeds  the
alternative   system   graded  contribution  rate  for  the  immediately
preceding fiscal year by more than one-half percentage point,  then  the
alternative  system  graded  contribution rate for the given fiscal year
shall equal the alternative system  graded  contribution  rate  for  the
immediately  preceding  fiscal  year  plus  one-half  percentage  point,
provided, however, that in no event shall the alternative system  graded
contribution rate be less than nine and one-half percent;
(ii)  if  the  system  average actuarial contribution rate for a given
fiscal year is at least nine and one-half percent and either equals  the
alternative   system   graded  contribution  rate  for  the  immediately
preceding  fiscal  year  or  exceeds  the  alternative   system   graded
contribution  rate for the immediately preceding fiscal year by one-half

percentage  point  or  less,  then   the   alternative   system   graded
contribution  rate  for  the  given  fiscal  year shall equal the system
average actuarial contribution rate  for  such  fiscal  year,  provided,
however,   that   in  no  event  shall  the  alternative  system  graded
contribution rate be less than nine and one-half percent;
(iii) if the system average actuarial contribution rate  for  a  given
fiscal  year is less than nine and one-half percent and greater than the
alternative  system  graded  contribution  rate  for   the   immediately
preceding  fiscal  year, then the alternative system graded contribution
rate for  the  given  fiscal  year  shall  equal  the  system  actuarial
contribution rate for such fiscal year;
(iv)  if  the  system  average actuarial contribution rate for a given
fiscal year is smaller than the alternative system  graded  contribution
rate  for  the  immediately  preceding fiscal year by more than one-half
percentage point, then the alternative system graded  contribution  rate
for  the  given  fiscal  year  shall equal the alternative system graded
contribution rate  for  the  immediately  preceding  fiscal  year  minus
one-half percentage point; and
(v)  if  the  system  average  actuarial contribution rate for a given
fiscal year either equals the  alternative  system  graded  contribution
rate  for  the  immediately preceding fiscal year or is smaller than the
alternative  system  graded  contribution  rate  for   the   immediately
preceding  fiscal  year  by  one-half percentage point or less, then the
alternative system graded contribution rate for the  given  fiscal  year
shall equal the system actuarial contribution rate for such fiscal year.
d.  (1)  For  any  given  fiscal  year for which an employer's average
actuarial contribution rate exceeds  the  employer  graded  contribution
rate, the employer shall pay to the retirement system an amount equal to
the  employer's  annual  bill  for  such  year or, in lieu of paying the
entire annual bill,  the  employer  may  pay  an  amount  equal  to  the
employer's  annual  bill  less all or a portion of the employer's amount
eligible for amortization for the fiscal year.  If  in  accordance  with
this  paragraph  the employer's payment to the retirement system is less
than  the  entire  amount  of  the  employer's  annual  bill,  then  the
difference  between  the employer's annual bill, and the amount actually
paid by the employer to the retirement system exclusive  of  any  amount
from  the  employer  contribution  reserve  fund  applied  to reduce the
employer's payment, shall be the amount amortized for the  fiscal  year.
The amount amortized for the fiscal year shall be paid to the retirement
system  in  equal  annual  installments  over  a  ten-year  period, with
interest on the unpaid balance at a rate determined by  the  comptroller
which  approximates  a  market  rate  of  return  on  taxable fixed rate
securities with similar terms issued by comparable issuers, and with the
first  installment  due  in  the  immediately  succeeding  fiscal  year.
Provided  however  that,  notwithstanding  any  provision  of law to the
contrary and at the sole discretion of the director of the  division  of
the  budget,  the  state  as  an  amortizing  employer may prepay to the
retirement system the total amount of principal due for any such  annual
installment  or  installments  for  a  given  fiscal  year  prior to the
expiration of the ten-year amortization period. In the event  the  state
elects  to  make such prepayment, the director of the division of budget
must identify the fiscal year or years for  which  the  total  principal
amount  due  for  the annual installment is being prepaid. In any fiscal
year for which the director of the division  of  the  budget  identifies
such  prepayment  is  being made, the state (i) shall not be required to
make a payment of principal to the retirement  system  for  such  fiscal
year, and (ii) shall pay to the retirement system annual interest on the
remaining   principal   balance  at  the  rate  originally  set  by  the

comptroller when the state first elected to amortize in accordance  with
this  paragraph.  Nothing  contained  herein  shall  permit the state to
extend the amortization period originally established in accordance with
this paragraph beyond the original ten-year amortization period.
(1-a)  For  any  given  fiscal  year  for  which an employer's average
actuarial  contribution  rate  exceeds  the  alternative  system  graded
contribution  rate,  the  employer shall pay to the retirement system an
amount equal to the employer's annual bill for such year or, in lieu  of
paying  the  entire annual bill, the employer may pay an amount equal to
the employer's annual bill less all  or  a  portion  of  the  employer's
amount  eligible  for amortization for the fiscal year. If in accordance
with this paragraph the employer's payment to the retirement  system  is
less  than  the  entire  amount  of the employer's annual bill, then the
difference between the employer's annual bill, and the  amount  actually
paid  by  the  employer to the retirement system exclusive of any amount
from the employer  contribution  reserve  fund  applied  to  reduce  the
employer's  payment,  shall be the amount amortized for the fiscal year.
The amount amortized for the fiscal year shall be paid to the retirement
system in equal annual installments over  a  twelve  year  period,  with
interest  on  the unpaid balance at a rate determined by the comptroller
which shall be the twelve year  interpolated  rate  based  on  the  most
recently  published yield to maturity of a ten year and twenty year U.S.
Treasury Security plus one hundred basis points.
(2)  For  any  given  fiscal  year  for  which  the  employer   graded
contribution  rate  equals  or  exceeds an amortizing employer's average
actuarial contribution rate, the amortizing employer shall  pay  to  the
retirement system an amount equal to the employer's annual bill for such
year plus the employer's graded payment for the fiscal year.
(i)  If the amortizing employer's annual bill for the fiscal year does
not include an amount attributable to a  prior  amortization,  then  the
employer's  graded  payment shall be paid into the employer contribution
reserve fund provided for in subdivision e of this section and  credited
to an account within such fund established for the employer.
(ii)  If  the  amortizing  employer's  annual bill for the fiscal year
includes an amount attributable to a prior amortization, the  employer's
graded  payment  shall  be  used  first  to  eliminate the amount of the
employer's unpaid prior amortization  balances  in  chronological  order
starting  with the oldest prior amortization balance. When in any fiscal
year the employer's graded payment eliminates all balances owed  on  the
employer's  prior amortizations, any remaining portion of the employer's
graded payment for such fiscal year, and the employer's  graded  payment
in  any  subsequent  fiscal year in which the amortizing employer has no
unpaid prior amortizations, shall be paid into the employer contribution
reserve fund provided for in subdivision e of this section and  credited
to an account within such fund established for the employer.
(2-a)  For  any  given  fiscal  year  for which the alternative system
graded contribution rate equals or  exceeds  an  alternative  amortizing
employer's   average   actuarial   contribution  rate,  the  alternative
amortizing employer shall pay to the retirement system an  amount  equal
to  the  employer's annual bill for such year plus the employer's graded
payment for the fiscal year.
(i) If the alternative  amortizing  employer's  annual  bill  for  the
fiscal  year  does  not  include  an  amount  attributable  to  a  prior
amortization, then the employer's graded payment shall be paid into  the
employer contribution reserve fund provided for in subdivision e of this
section  and credited to an account within such fund established for the
employer.
(ii) If the alternative amortizing  employer's  annual  bill  for  the
fiscal year includes an amount attributable to a prior amortization, the
employer's graded payment shall be used first to eliminate the amount of
the employer's unpaid prior amortization balances in chronological order
starting  with the oldest prior amortization balance. When in any fiscal
year the employer's graded payment eliminates all balances owed  on  the
employer's  prior amortizations, any remaining portion of the employer's
graded payment for such fiscal year, and the employer's  graded  payment
in  any  subsequent  fiscal year in which the amortizing employer has no
unpaid prior amortizations, shall be paid into the employer contribution
reserve fund provided for in subdivision e of this section and  credited
to an account within such fund established for the employer.
(3)  Nothing  in this subdivision shall be construed as prohibiting an
employer from pre-paying any prior amortization.
e. (1) Notwithstanding  any  law  to  the  contrary,  there  shall  be
maintained  separate  and  apart  from the other funds of the retirement
system an employer contribution reserve fund, the assets of which  shall
not  be  used or invested in a manner contrary to the provisions of this
subdivision. The  fund  shall  consist  of  all  employer  contributions
required to be deposited into the fund pursuant to subdivision d of this
section.  Within  such  fund  there shall be a separate account for each
employer making such contributions and payments.
(2) For any given fiscal year  for  which  (i)  the  system  actuarial
contribution rate exceeds nine and one-half percent of payroll as of the
end  of  the  previous  fiscal  year,  and  (ii)  an  employer's average
actuarial contribution rate exceeds the employer's  graded  contribution
rate or the alternative employer's graded contribution rate, the balance
in  the  employer's  account within such fund shall be applied to reduce
the employer's payment to the retirement system for such fiscal year  in
an  amount not to exceed the difference between the employer's actuarial
contribution and the employer's graded contribution for the fiscal year.
(3)  Notwithstanding  the  provisions  of  paragraph   two   of   this
subdivision,  if at the close of any given fiscal year the balance of an
employer's account within the  fund  exceeds  the  employer's  actuarial
contribution  for  the  previous fiscal year, no graded payment shall be
required or allowed.
(4) The assets of the fund shall be invested  in  only  the  following
types of investments:
(i)  obligations  of  the  United  States of America or in obligations
guaranteed by agencies of the United States of America where the payment
of principal and interest are guaranteed by the United States of America
or in obligations of the state of New York;
(ii) general obligation bonds and notes of any state other  than  this
state,  provided that such bonds and notes receive the highest rating of
at least one independent rating agency;
(iii) obligations of, or instruments issued by or fully guaranteed  as
to  principal  and  interest  by,  any  agency or instrumentality of the
United States acting pursuant to a grant of authority from the  congress
of  the  United  States, including, but not limited to, any federal home
loan bank or banks, the Tennessee valley authority, the federal national
mortgage association, the federal home loan mortgage corporation and the
United States postal service;
(iv) certificate of deposits that are fully secured by the  issuer  by
depositing  with  the  comptroller direct or indirect obligations of the
United States or its agencies or  a  letter  of  credit  issued  by  the
Federal Home Loan Bank; and
(v)  obligations  of  any  corporation organized under the laws of any
state in the United States maturing  within  two  hundred  seventy  days

provided  that  such  obligations  receive  the  highest  rating  of two
independent rating services designated by the comptroller.
(5)  At  the  close  of  each  fiscal year, the amount of interest and
earnings attributable to each employer's account shall  be  computed  by
the actuary and certified to the comptroller, who shall thereupon credit
each employer's account in accordance therewith.
(6) The assets of the fund shall be excluded from the annual valuation
of  the  assets  and  liabilities  of the funds of the retirement system
required by section eleven of this title. The assets of the  fund  shall
not be used to finance increases in pension benefits.
f.  (1) An amortizing employer may elect to terminate participation in
the contribution stabilization program provided that such employer shall
have paid in full all such prior  year  amortization  amounts  including
interest  as  determined by the comptroller. Furthermore, any amortizing
employer  that  has  terminated  participation   in   the   contribution
stabilization  program  may  re-enter the program in a year in which the
employer is eligible to amortize and their employer contribution reserve
fund has been depleted.
(2)  An  alternative  amortizing  employer  may  elect  to   terminate
participation  in  the  alternative  contribution  stabilization program
provided that such employer shall have paid in full all such prior  year
amortization   amounts   including   interest   as   determined  by  the
comptroller. Furthermore, any alternative amortizing employer  that  has
terminated  participation  in the alternative contribution stabilization
program may not  re-enter  the  alternative  contribution  stabilization
program;   provided,  however,  such  employer  may  enter  the  regular
contribution stabilization program as set forth in paragraph one of this
subdivision.
(3)  In  order  to  terminate  participation   in   the   contribution
stabilization  or  alternative  contribution stabilization program, such
employer must file an election on a form prescribed by the  comptroller.
Such election is subject to review and approval by the comptroller.
(4)  Termination  shall  take effect for the fiscal year billing cycle
following the fiscal year of approval. An employer who has been approved
to  terminate  from  the  contribution  stabilization   or   alternative
contribution stabilization program pursuant to this section shall not be
required  to make a graded payment starting in the following fiscal year
billing cycle.
(5) In the event an employer in the contribution stabilization program
or   alternative   contribution   stabilization    program    terminates
participation  pursuant  to  this  section,  any  such  balance in their
employer contribution reserve fund shall be applied  to  the  employer's
annual  bill  in  the  maximum  amount  permitted under paragraph two of
subdivision e of  this  section,  for  the  following  fiscal  year  and
continue  to be applied to future annual bills until the reserve fund is
depleted.