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Who cares
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Sponsors
Senator · Senate District 45
1 Co-sponsor
History
- Referred to education
- Referred to education
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S2645
Title of bill
An act to amend the education law, in relation to authorizing school districts to establish reserve funds for the payment of contributions to the New York state teachers' retirement system
Purpose
Authorizes school districts to establish reserve funds for the payment of their contributions to the New York State Teachers' Retirement System
Summary of provisions
Section 1- amends 3651 of the education law by adding a new subdivision 1-c to authorize school districts to establish a reserve fund for the payment of the district's contributions to the New York State Teachers' Retirement System without the approval of the voters in the district. Such fund may not exceed the amount which is necessary to meet such contributions.
Section 2- Contains the effective date.
Existing law
Section 3651 of the education law sets the parameters for reserve funds for school districts.
Justification
Pension contribution rates have varied dramatically over the past two decades, from almost zero to over twenty percent. This volatility in expense obligation is difficult for school districts to budget for.
Current law allows for reserve funds for pension contributions for employees, but not for teachers. By providing school districts with the ability to establish reserve funds for teacher contributions, school districts will be able to better prepare for increases in contribution cost from year to year and stabilize tax rates.
Legislative history
New Bill
Fiscal implications
None
Local fiscal implications
Will allow school districts to be prepared for the fluctuating, costs of pension contributions
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.