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S7618Senate2013-2014 SessionSame asA9705

Increases the maximum contribution under a defined contribution plan service award

Sponsor Kenneth P. LaValleSD-1Affects Local Government
Status
In Senate Committee
Local Government
Impact
Pending
Passage
Pending

Bill progress

Step 2 of 7

In committee · Local Government

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Sponsors

Primary sponsor
Kenneth P. LaValle

Senator · Senate District 1

Chair, Higher Education

No co-sponsors yet.

History

  1. Referred to local government

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.

A9705Assembly

Increases the maximum contribution under a defined contribution plan service award

In Assembly Committee · Local Governments · Sponsor Fred Thiele

Full text

The text isn't available here yet. Check nysenate.gov.

Sponsor's memo

BILL NUMBER:S7618

Title of bill

An act to amend the general municipal law, in relation to increasing the maximum contribution under a defined contribution plan service award

Purpose or general idea of bill

Increase the maximum contribution under a defined contribution plan service award.

Summary of specific provisions

Subdivision (b) of Section 218 of the General Municipal Law is amended to increase the maximum contribution under a defined contribution plan service award program from $700 per year of service to $2100 per year of service.

Justification

Length of Service Award Programs (LOSAP) are pension-like programs intended to help recruit and retain volunteer firefighters and volunteer ambulance squad members. There are different types of LOSAP programs. One is a defined contribution plan where an organization defines a set, cash contribution it makes each year. In a defined benefit plan, an organization defines what the cash payout to the volunteer will be at the entitlement age. Under current law, even the largest defined contribution programs provide a much smaller end benefit than almost all of the existing defined benefit programs. However a defined benefit plan has more investment return risks and mortality risks, and is becoming less popular. Providing an alternative the direct benefit plan in the form of a more generous direct contribution plan with less cost volatility is necessary. The current defined contribution has remained at $700 for a long period of time, and thus has not been changed to reflect the need to incentivize volunteers at organization with defined contribution plans.

Prior legislative history

New Legislation, 2014

Fiscal implications

To be determined.

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.