What's happening
This bill requires New York to annually reimburse certain nonprofit disability service providers for employer retirement contributions, capped at 10% of payroll.
Why it matters
Supports Workforce Stability. By guaranteeing annual reimbursement for employer retirement contributions, the bill helps nonprofit providers attract and retain direct care workers, a sector that often faces high turnover due to low wages and limited benefits.
Promotes Parity with Other Employers. The measure enables nonprofit agencies serving people with developmental disabilities to offer retirement benefits comparable to those in public or for-profit sectors, potentially reducing disparities in employee compensation.
Protects Service Quality. Stable and better-compensated staffing can translate to more consistent and higher-quality care for individuals with developmental disabilities, benefiting both workers and service recipients.
Limits State Financial Exposure. The 10% payroll cap on reimbursements helps control costs for the state, balancing provider support with budgetary safeguards.
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Who cares
Licensed nonprofit direct-care providers
The bill would require annual reimbursement of employer contributions to ERISA-governed retirement funds, capped at 10 percent of the employer’s total payroll on December 31 of the contribution year.
Direct-care workers at nonprofit providers
The bill would reimburse their employers for retirement fund contributions rather than pay benefits directly to workers.
Office for People With Developmental Disabilities
The office would administer annual reimbursements based on providers’ IRS Form 5500 submissions and consider requests for expedited reimbursement.
Nonprofit providers facing payment difficulties
They could seek expedited reimbursement by showing that contributions must be paid promptly and that they cannot reasonably make prompt payment.
Headline styles
Fund Disability Worker Pensions
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to mental health
- Referred to mental health
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2633
2019-2020 Regular Sessions
IN ASSEMBLY
January 24, 2019
Introduced by M. of A. PRETLOW -- read once and referred to the Committee on Mental Health
AN ACT to amend the mental hygiene law, in relation to retirement benefits for certain direct care workers employed by not-for-profit office for people with developmental disabilities providers
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The mental hygiene law is amended by adding a new section 41.60 to read as follows: § 41.60 Additional expenditures related to retirement benefits.
The office for people with developmental disabilities shall annually reimburse licensed not-for-profit corporations, which provide direct care to consumers of services approved by the office for people with developmental disabilities, for the cost of employer contributions to a retirement benefit fund governed by the provisions of the Federal Employee Retirement Income Security Act of 1974, as amended. Such reimbursement shall commence on the first day of April of the calendar year following the submission by such corporation of the federal Internal Revenue Service Form 5500 which documents that such employer contributions were made. Any such corporation may apply to the office for people with developmental disabilities for expedited reimbursement of such employer contributions upon demonstrating to such office that such payments must be made promptly, and that the corporation cannot reasonably make prompt payment. The office for people with developmental disabilities shall not reimburse any amount which exceeds ten percent of the employer's total payroll on December thirty-first of any year in which contributions are made.
§ 2. This act shall take effect on the first of April next succeeding the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04752-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.