Bill Text: NY A08293 | 2011-2012 | General Assembly | Amended
Bill Title: Allows the board of education of the city school district of the city of Yonkers the option of amortizing future payments to the New York state teachers' retirement system.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-06-16 - enacting clause stricken [A08293 Detail]
Download: New_York-2011-A08293-Amended.html
S T A T E O F N E W Y O R K
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8293--A
2011-2012 Regular Sessions
I N A S S E M B L Y
June 10, 2011
___________
Introduced by M. of A. SPANO, PRETLOW -- read once and referred to the
Committee on Education -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the education law, the general municipal law and the
public authorities law, in relation to allowing the city school
district of the city of Yonkers the option of amortizing future
payments to the New York state teachers' retirement system
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 521 of the education law is amended by adding a new
2 subdivision 3 to read as follows:
3 3. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE
4 BOARD OF EDUCATION OF THE CITY SCHOOL DISTRICT OF THE CITY OF YONKERS
5 MAY ELECT TO PROVIDE FOR THE FINANCING OF A CERTAIN PORTION OF THE
6 CONTRIBUTIONS DUE FROM SUCH EMPLOYER PURSUANT TO THIS SECTION ON ACCOUNT
7 OF PENSIONABLE COMPENSATION PAID BY SUCH EMPLOYER DURING THE PLAN YEARS
8 JULY FIRST, TWO THOUSAND ELEVEN THROUGH JUNE THIRTIETH, TWO THOUSAND
9 TWELVE AND JULY FIRST, TWO THOUSAND TWELVE THROUGH JUNE THIRTIETH, TWO
10 THOUSAND THIRTEEN IN ACCORDANCE WITH THE FOLLOWING PROVISIONS.
11 A. THE BOARD OF EDUCATION OF THE CITY SCHOOL DISTRICT OF THE CITY OF
12 YONKERS SHALL HAVE THE AUTHORITY TO ADOPT A BOND RESOLUTION AUTHORIZING
13 THE FINANCING OF THE PAYMENT OF A PORTION OF THE CONTRIBUTIONS DUE FROM
14 SUCH EMPLOYER ON ACCOUNT OF PENSIONABLE COMPENSATION PAID BY SUCH
15 EMPLOYER IN SUCH PLAN YEARS BY THE ISSUANCE OF BONDS, PROVIDED THE ISSU-
16 ANCE OF SUCH OBLIGATIONS OTHERWISE COMPLIES WITH THE REQUIREMENTS OF THE
17 LOCAL FINANCE LAW AND THIS CHAPTER AND PROVIDED FURTHER THE AMOUNT OF
18 BONDS ISSUED PURSUANT TO THIS AUTHORITY SHALL NOT IN THE AGGREGATE
19 EXCEED ONE HUNDRED TWENTY-FIVE PER CENTUM OF THE CONTRIBUTIONS DUE FROM
20 SUCH EMPLOYER ON ACCOUNT OF PENSIONABLE COMPENSATION PAID DURING THE
21 PLAN YEAR JULY FIRST, TWO THOUSAND TEN THROUGH JUNE THIRTIETH, TWO THOU-
22 SAND ELEVEN. SUCH BOARD OF EDUCATION SHALL HAVE THE AUTHORITY TO
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09879-04-1
A. 8293--A 2
1 CONTRACT WITH THE STATE DORMITORY AUTHORITY FOR THE PURPOSES OF FINANC-
2 ING THE PAYMENT UNDER THIS SECTION.
3 B. THE PROCEEDS OF SUCH BOND ISSUANCE SHALL BE DEPOSITED BY THE BOARD
4 OF EDUCATION OF THE CITY SCHOOL DISTRICT OF THE CITY OF YONKERS IN A
5 RETIREMENT CONTRIBUTION RESERVE ACCOUNT ESTABLISHED PURSUANT TO SECTION
6 SIX-R OF THE GENERAL MUNICIPAL LAW AND SHALL BE APPLIED TO OFFSET THOSE
7 CONTRIBUTIONS DUE FROM SUCH EMPLOYER TO THE SYSTEM ON ACCOUNT OF
8 PENSIONABLE COMPENSATION PAID DURING THE PLAN YEARS JULY FIRST, TWO
9 THOUSAND ELEVEN THROUGH JUNE THIRTIETH, TWO THOUSAND TWELVE AND JULY
10 FIRST, TWO THOUSAND TWELVE THROUGH JUNE THIRTIETH, TWO THOUSAND THIRTEEN
11 AND PAID TO THE SYSTEM FROM THE APPROPRIATION FOR THE SUPPORT OF COMMON
12 SCHOOLS PURSUANT TO THIS SECTION AS FOLLOWS:
13 (I) SO MUCH OF SUCH PROCEEDS SHALL BE APPLIED TO OFFSET THE CONTRIB-
14 UTIONS DUE FROM SUCH EMPLOYER ON ACCOUNT OF PENSIONABLE COMPENSATION
15 PAID BY SUCH EMPLOYER DURING THE PLAN YEAR JULY FIRST, TWO THOUSAND
16 ELEVEN THROUGH JUNE THIRTIETH, TWO THOUSAND TWELVE AND PAID TO THE
17 SYSTEM FROM THE APPROPRIATION FOR THE SUPPORT OF COMMON SCHOOLS PURSUANT
18 TO THIS SECTION, BUT IN NO EVENT SHALL THE OFFSET EXCEED THE AMOUNT BY
19 WHICH THE CONTRIBUTION OBLIGATION OF SUCH EMPLOYER EXCEEDS EIGHT AND
20 SIXTY-TWO ONE HUNDREDTHS PER CENTUM OF SUCH PENSIONABLE COMPENSATION;
21 AND
22 (II) THE REMAINDER OF SUCH PROCEEDS, IF ANY SHALL BE APPLIED TO OFFSET
23 THE CONTRIBUTIONS DUE FROM SUCH EMPLOYER ON ACCOUNT OF PENSIONABLE
24 COMPENSATION PAID BY SUCH EMPLOYER DURING THE PLAN YEAR JULY FIRST, TWO
25 THOUSAND TWELVE THROUGH JUNE THIRTIETH, TWO THOUSAND THIRTEEN AND PAID
26 TO THE SYSTEM FROM THE APPROPRIATION FOR THE SUPPORT OF COMMON SCHOOLS
27 PURSUANT TO THIS SECTION, BUT IN NO EVENT SHALL THE OFFSET EXCEED THE
28 AMOUNT BY WHICH THE CONTRIBUTION OBLIGATION OF THE EMPLOYER EXCEEDS
29 EIGHT AND SIXTY-TWO ONE HUNDREDTHS PER CENTUM OF SUCH PENSIONABLE
30 COMPENSATION; AND
31 (III) ANY BALANCE OF SUCH PROCEEDS, IF ANY REMAINING AFTER THE ACTIONS
32 PRESCRIBED IN SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH SHALL BE
33 APPLIED TO OFFSET THE CONTRIBUTIONS DUE FROM SUCH EMPLOYER ON ACCOUNT OF
34 PENSIONABLE COMPENSATION PAID BY SUCH EMPLOYER DURING THE PLAN YEAR JULY
35 FIRST, TWO THOUSAND THIRTEEN THROUGH JUNE THIRTIETH, TWO THOUSAND FOUR-
36 TEEN, USED TO OFFSET DEBT RESULTING FROM THIS BOND ISSUANCE OR PAY
37 FUTURE EMPLOYER PENSION CONTRIBUTIONS.
38 S 2. Paragraphs b and c of subdivision 1 of section 6-r of the general
39 municipal law, as added by chapter 260 of the laws of 2004, are amended
40 to read as follows:
41 b. "Participating employer" means a participating employer as defined
42 in subdivision twenty of section two of the retirement and social secu-
43 rity law or in subdivision twenty of section three hundred two of such
44 law OR THE BOARD OF EDUCATION OF THE CITY SCHOOL DISTRICT OF THE CITY OF
45 YONKERS.
46 c. "Retirement contribution" shall mean all or any portion of the
47 amount payable by a municipal corporation to either the New York state
48 and local employees' retirement system or the New York state and local
49 police and fire retirement system pursuant to section seventeen or three
50 hundred seventeen of the retirement and social security law OR TO THE
51 NEW YORK STATE TEACHERS' RETIREMENT SYSTEM PURSUANT TO SECTIONS FIVE
52 HUNDRED SEVENTEEN AND FIVE HUNDRED TWENTY-ONE OF THE EDUCATION LAW.
53 S 3. Section 6-r of the general municipal law is amended by adding a
54 new subdivision 11 to read as follows:
55 11. A PARTICIPATING EMPLOYER WHICH HAS DEPOSITED THE PROCEEDS OF A
56 BOND ISSUANCE AUTHORIZED PURSUANT TO SUBDIVISION THREE OF SECTION FIVE
A. 8293--A 3
1 HUNDRED TWENTY-ONE OF THE EDUCATION LAW IS AUTHORIZED TO WITHDRAW SUCH
2 PROCEEDS WHEN BUT ONLY TO THE EXTENT SUCH PROCEEDS HAVE BEEN OFFSET
3 AGAINST THE CONTRIBUTION OBLIGATION OF SUCH EMPLOYER TO THE NEW YORK
4 STATE TEACHERS' RETIREMENT SYSTEM AS PROVIDED IN SUCH SUBDIVISION.
5 S 4. Section 1678 of the public authorities law is amended by adding a
6 new subdivision 26 to read as follows:
7 26. TO ENTER INTO A CONTRACT OR CONTRACT WITH THE BOARD OF EDUCATION
8 OF THE CITY SCHOOL DISTRICT OF THE CITY OF YONKERS FOR THE PURPOSE OF
9 FINANCING RETIREMENT CONTRIBUTIONS PAYMENTS PURSUANT TO SUBDIVISION
10 THREE OF SECTION FIVE HUNDRED TWENTY-ONE OF THE EDUCATION LAW.
11 S 5. This act shall take effect immediately.
FISCAL NOTE.--This bill would amend Section 521 of the Education Law
to allow the Board of Education of the city school district of the city
of Yonkers to finance a certain portion of the contributions due from
such employer on account of pensionable compensation paid by such
employer during the two plan years July 1, 2011 through June 30, 2012
and July 1, 2012 through June 30, 2013. The Yonkers city school district
will have the authority to adopt a bond resolution authorizing the
financing of these contributions over a period not to extend beyond
fifteen years. The amount of such bonds shall not exceed 125% of the
contributions due from such employer on account of pensionable compen-
sation paid during the plan year July 1, 2010 through June 30, 2011. The
proceeds of such bond issuance shall be deposited by the Yonkers city
school district in a retirement contribution reserve account and shall
be applied to offset contributions due from such employer to the System
on account of pensionable compensation paid during the plan years July
1, 2011 through June 20, 2012 and July 1, 2012 through June 30, 2013. In
no event shall the offset exceed the amount by which the contribution
obligation of the Yonkers city school district exceeds 8.62% of such
pensionable compensation paid during the applicable plan years. Any
remaining balance of such proceeds shall be applied to offset the
contributions due from the Yonkers city school district on account of
pensionable compensation paid by such employer during the plan year July
1, 2013 through June 30, 2014, used to offset debt resulting from the
bond issuance or pay future employer pension contributions.
It is estimated that there will be no annual cost to the employers of
members of the New York State Teachers' Retirement System, with respect
to additional employer contributions to the System, if this bill is
enacted. The annual actuarially required employer contributions will
continue to be paid in full and on time to the Retirement System as
provided under current law. However, there will be bond-related expenses
for the Yonkers city school district to finance a portion of employer
contributions through the issuance of bonds.
The source of this estimate is Fiscal Note 2011-58 dated June 9, 2011
prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2011 Legislative Session.
