Provides that the board of any deferred compensation plan established by NYC shall include an equal number of employer and union representatives

BILL NUMBER:S4907

Title of bill

An act to amend the state finance law, in relation to establishing employee representative participation on the city of New York deferred compensation plan board

Purpose

This bill intends to provide employee input into the New York City deferred compensation plan administration.

Summary of provisions

This legislation would require equal union and employer representation on the board of the deferred compensation plan established by the city of New York.

Current law

The New York City Deferred Compensation Board is comprised of three members. This bill expands board membership to include employee representation.

Justification

The New York City deferred compensation is solely comprised of employer representatives. The function of this board is to determine the rules and regulations regarding the standards and requirements of the City's compensation plan, a role which includes the designation of the financial institutions in which participants may invest. The board's composition, does not require representatives from the parties impacted by any board decision -- the employees.

This legislation would update the Chapter Laws of 1982 so as to incorporate both employee and employer perspectives into the decision-making process. The equal representation between employees and employers on the board will ensure that the New York City Deferred Compensation Board plan is striving to meet the needs of plan participants. In that deferred compensation plan is Comprised of assets held for exclusive benefit of employees, in an effort to ensure the long-term financial security of many employees, in an effort to ensure the employee representation on the Deferred Compensation Board is not only justifiable, but fundamental.

Legislative history

A8282 of 1999

Fiscal implications

None

Effective date

This act shall take effect immediately.