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History
- Referred to rules
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to payment by the state of certain employer retirement contributions
In Assembly Committee · Governmental Employees · Sponsor Peter Abbate
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the retirement and social security law, in relation to payment by the state of certain employer retirement contributions
Purpose
The bill amends the Retirement and Social Security Law (RSSL) as it relates to employer retirement contributions to the New York State and Local Employees Retirement System (ERS) and the New York State and Local Police and Fire Retirement System (PFRS)).
Summary of provisions
Sections 1 through 6 of this bill amend the RSSL by adding new sections 16-e, 16- f, 16-g, 16-h, 16-i and 16-j. Each of these new sections authorize the amortization of a portion of the State's employer contributions to the ERS at t he Comptroller's discretion for fiscal years ending in 3/31/11 to 3/31/16 respectively. The Comptroller determines what portions of the contribution bill will be eligible for amortization when rates rise above a certain level. These Sections of the bill also authorize the Comptroller to accept prepayment of outstanding balances.
Section 7 of this bill amends Section 23-a(b)(2) of the RSSL raising the minimum annual contribution payment from 4.5 to 5.5% of the pensionable payroll.
Sections 8 through 13 of this bill amend the RSSL by adding new Sections 316-e, 316-f, 316-g, 316-h, 316-i, 316-j. Each of these new sections authorize the amortization of a portion of the State's employer contributions to the PFRS at the Comptroller's discretion for fiscal years ending in 3/31/11 to 3/31/16 respectively. The Comptroller determines what portions of the contribution bill will be eligible for amortization when rates rise above a certain level. These Sections of the bill also authorize the Comptroller to accept prepayment of outstanding balances.
Section 14 through 19 of this bill amend the RSSL by adding new Sections 17-e, 17-f, 17-g, 17-h, 17-i, 17-j. Each of these new sections authorize the amortization of a portion of participating employer contributions to the ERS at the Comptroller's discretion for fiscal years 2010- 2011 to 2015-2016 respectively. The Comptroller determines what portions of the contribution bill will be eligible for amortization when rates rise above a certain level. These Sections of the bill also authorize the Comptroller to accept prepayment of outstanding balances.
Section 20 through 25 of this bill amend the RSSL by adding new Sections 317-e, 317-f, 317-g, 317-h, 317-i, 317-j. Each of these new sections authorize the amortization of a portion of participating employer contributions to the PFRS at the Comptroller's discretion for fiscal years ending in 2010-2011 to 2015-2016 respectively. The Comptroller determines what portions of the contribution bill will be eligible for amortization when rates rise above a certain level. These Sections of the bill also authorize the Comptroller to accept prepayment of outstanding balances.
Section 26 amends Section 323-a(b)(2) of the RSSL raising the minimum annual contribution from 4.5 to 5.5% of the pensionable payroll.
Justification
This legislation is referred to as the "Pension Smoothening" law because it allows for the amortization of employer pension contributions, thereby making those payments much more manageable and ascertainable. It provides the State and local governments with the budgetary certainty they need to ensure the continued viability of the retirement system.
Legislative history
New bill.
Fiscal implications
According to the Fiscal Note only a small administrative cost to the System to revise current billing processes.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.