Adds additional powers and duties of the board of trustees of the NYC fire department pension fund and authorizes such board to draw upon assets of such pension fund

Title of bill

An act to amend the administrative code of the city of New York, in relation to the powers, duties and responsibilities of the board of trustees of the New York city fire department pension fund, subchapter two and in relation to authorizing such board of trustees to draw upon the assets of such pension fund to pay expenses

Purpose

This bill would confer the benefits of corpus funding to the Fire Department Pension Fund.

Summary of provisions

This legislation would amend Section 13-316 of the Administrative Code of the City of New York to permit the New York City Fire Department, Subchapter Two Pension Fund to authorize, directly from the assets of the fund, the payment of expenses associated with its responsibilities to administer the fund. In addition, this bill would provide that the Board of Trustees would appoint an Executive Director of the fund, who would have the powers conferred to him or her by the Chairperson of the Board, Board of Trustees, and the law.

This bill would also provide that the Board of Trustees establish a budget and authorize payments from the assets of the fund to administer the fund. However, any budget or modification would require the approval of both representatives of the Mayor and the Comptroller of the City of New York. All expenditures made from the fund would be subject to audit by the Comptroller and would be reported to the Office of Management and Budget and the budgeting office of the FDNY. Employees of the Fire Department Pension fund would be considered employees of the City of New York.

Existing law

Currently, the New York City Fire Department Pension fund is the only one of the five New York City pension funds that does not have corpus funding.

Justification

Currently, the New York City Employees Retirement System, the New York City Teachers' Retirement System, the New York City Board of Education Retirement System and the New York City Police Pension Fund may draw upon the assets of their respective funds to pay for administrative expenses. Only one City pension fund may not draw upon its own assets to pay for administrative expenses - The New York City Fire Department Pension Fund. This bill would simply confer the benefits of corpus funding to the Fire Department Pension Fund.

Corpus funding for the Fire Pension Fund would bring the fund into the 21st Century by giving it the tools necessary to carry out its daily functions. By allowing the Fund to receive the appropriate resources necessary to maintain its administrative functions, each member can receive the customer service they deserve. The streamlining of services such as the processing of loan applications, the purchase of prior service credit and benefit counseling would be realized by all members seeking assistance.

Legislative history

2003 Session: S.5030/A.7164 - similar to current legislation, passed Senate 2004 Session: S.5030/A.7164 - no significant action 2006Session: S.7897/S.3876 - no significant action 2007 Session: S.3876/A.6513 - no significant action 2008 Session: S.3876/A.6513 - no significant action

Fiscal implications

None.

Local fiscal implications

None.

Effective date

This act shall take effect immediately.