Allows the Yonkers city school district the option of amortizing future payments to the New York state teachers' retirement system

Summary of provisions

Section 1. Section 521 of the Education Law is amended by adding a new subdivision 3 to authorize the City of Yonkers School District to elect to provide for the financing of a certain portion of their employee pension contributions due during the retirement plan years July 1, 2011 through June 30, 2012 and July 1, 2012 through June 30, 2013 under the following conditions:

a. The board of education of such Yonkers City School district shall have the authority to adopt a bond resolution authorizing the financing of the payment of a portion of the contributions due from such employer on account of pensionable compensation paid by such employer in such plan years by the issuance of bonds.

b. The proceeds of such bond issuance shall be deposited by the Yonkers School District in a retirement contribution reserve account established pursuant to section 6-r of the general municipal law and shall be applied to offset those contributions due from such employer to the system on account of pensionable compensation paid during the plan years established by this act.

(i) so much of such proceeds shall be applied to offset the contributions due from such employer on account of pensionable compensation paid by such employer during the plan years specified by this act and paid the system from the appropriation for the support of commons schools. However, in no event shall the offset exceed the amount by which the contribution obligation of such school district as provided for under this bill.

(ii) the remainder of such proceeds, if any, shall be applied to offset the contributions due from such employer on account of pensionable compensation paid by the Yonkers School District pursuant to this act. However, in no event, shall the offset exceed the amount specified under this act. Further, any balance of such proceeds, if any remain after the action prescribed above, shall be applied to offset the contributions due from the 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 this bond issuance or pay future employer pension contributions.

Section 2: Amends General Municipal Law section 6-r include the Board of Education of the City of Yonkers School District as a "participating employer" under the provisions of the General Municipal Law and the Retirement and Social Security Law for the purposes of this act.

Section 3: Amends General Municipal Law section 6-r to add a new subdivision 11 to allow the Yonkers School District that has deposited the proceeds of a bond issuance authorized pursuant to this bill to withdraw such proceeds when but only to the extent such proceeds have been offset against the contribution obligation of such employer to the New York State teachers' retirement system as provided in such subdivision.

Section 4: Amends the Public Authorities Law section 1678 to authorize the Dormitory Authority to enter into a contract with the Yonkers City School District for the purpose of financing retirement contribution payments as authorized under this bill.

Justification

This bill was requested by the City of Yonkers School District. This legislation, the City School District maintains, authorizes the Yonkers City School District to adopt a bond resolution authorizing the financing of NYSTRS contributions over a period not to extend beyond fifteen years. The amount of such bonds shall not exceed 125% of the contribution due to such employer on account of pensionable compensation paid during the plan year July 1, 2012 through June 30, 2013.

The process of this bond issuance shall be deposited by an employer in a retirement contribution reserve account and shall be applied to offset contributions due from such employer to the NYSTRS on account of pensionable compensation paid during the plan years July 1, 2012 Through June 30, 2013 and July 1, 2012 through June 30, 2013. Any Funding remaining in the account will be used to offset the debt from this bonding action or pay future employer pension costs in future years.

The underlying purpose of this bill is to allow the financing of this employer obligation to help offset the record reductions in state school aid districts, such as Yonkers, are experiencing this year and may continue to experience going forward for the next several State budget cycles.

Legislative history

None.

Fiscal implications

Unknown.

Effective date

This act shall take effect immediately.