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S05752 Summary:

BILL NOS05752
 
SAME ASNo same as
 
SPONSORKLEIN
 
COSPNSRSTEWART-COUSINS
 
MLTSPNSR
 
Amd S521, Ed L; amd S6-r, Gen Muni L; amd S1678, Pub Auth L
 
Allows the board of education of the city school district of the city of Yonkers the option of amortizing future payments to the New York state teachers' retirement system.
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S05752 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5752
 
                               2011-2012 Regular Sessions
 
                    IN SENATE
 
                                      June 14, 2011
                                       ___________
 
        Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules
 
        AN ACT to amend the education law, the general  municipal  law  and  the
          public  authorities  law,  in  relation  to  allowing  the city school
          district of the city  of  Yonkers  the  option  of  amortizing  future

          payments to the New York state teachers' retirement system
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 521 of the education law is amended by adding a new
     2  subdivision 3 to read as follows:
     3    3. Notwithstanding any other provision of law  to  the  contrary,  the
     4  board  of  education  of the city school district of the city of Yonkers
     5  may elect to provide for the financing  of  a  certain  portion  of  the
     6  contributions due from such employer pursuant to this section on account
     7  of  pensionable compensation paid by such employer during the plan years
     8  July first, two thousand eleven through  June  thirtieth,  two  thousand

     9  twelve  and  July first, two thousand twelve through June thirtieth, two
    10  thousand thirteen in accordance with the following provisions.
    11    a. The board of education of the city school district of the  city  of
    12  Yonkers  shall have the authority to adopt a bond resolution authorizing
    13  the financing of the payment of a portion of the contributions due  from
    14  such  employer  on  account  of  pensionable  compensation  paid by such
    15  employer in such plan years by the issuance of bonds, provided the issu-
    16  ance of such obligations otherwise complies with the requirements of the
    17  local finance law and this chapter and provided further  the  amount  of
    18  bonds  issued  pursuant  to  this  authority  shall not in the aggregate

    19  exceed one hundred twenty-five per centum of the contributions due  from
    20  such  employer  on  account  of pensionable compensation paid during the
    21  plan year July first, two thousand ten through June thirtieth, two thou-
    22  sand eleven.   Such board of  education  shall  have  the  authority  to
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09879-05-1

        S. 5752                             2
 
     1  contract  with the state dormitory authority for the purposes of financ-
     2  ing the payment under this section.
     3    b.  The proceeds of such bond issuance shall be deposited by the board

     4  of education of the city school district of the city  of  Yonkers  in  a
     5  retirement  contribution reserve account established pursuant to section
     6  six-r of the general municipal law and shall be applied to offset  those
     7  contributions  due  from  such  employer  to  the  system  on account of
     8  pensionable compensation paid during the  plan  years  July  first,  two
     9  thousand  eleven  through  June  thirtieth, two thousand twelve and July
    10  first, two thousand twelve through June thirtieth, two thousand thirteen
    11  and paid to the system from the appropriation for the support of  common
    12  schools pursuant to this section as follows:
    13    (i)  so  much of such proceeds shall be applied to offset the contrib-

    14  utions due from such employer on  account  of  pensionable  compensation
    15  paid  by  such  employer  during  the plan year July first, two thousand
    16  eleven through June thirtieth, two  thousand  twelve  and  paid  to  the
    17  system from the appropriation for the support of common schools pursuant
    18  to  this  section, but in no event shall the offset exceed the amount by
    19  which the contribution obligation of such  employer  exceeds  eight  and
    20  sixty-two  one  hundredths  per centum of such pensionable compensation;
    21  and
    22    (ii) the remainder of such proceeds, if any shall be applied to offset
    23  the contributions due from  such  employer  on  account  of  pensionable
    24  compensation  paid by such employer during the plan year July first, two

    25  thousand twelve through June thirtieth, two thousand thirteen  and  paid
    26  to  the  system from the appropriation for the support of common schools
    27  pursuant to this section, but in no event shall the  offset  exceed  the
    28  amount  by  which  the  contribution  obligation of the employer exceeds
    29  eight and sixty-two  one  hundredths  per  centum  of  such  pensionable
    30  compensation; and
    31    (iii) any balance of such proceeds, if any remaining after the actions
    32  prescribed  in  subparagraphs  (i)  and  (ii) of this paragraph shall be
    33  applied to offset the contributions due from such employer on account of
    34  pensionable compensation paid by such employer during the plan year July
    35  first, two thousand thirteen through June thirtieth, two thousand  four-

    36  teen,  used  to  offset  debt  resulting  from this bond issuance or pay
    37  future employer pension contributions.
    38    § 2. Paragraphs b and c of subdivision 1 of section 6-r of the general
    39  municipal law, as added by chapter 260 of the laws of 2004, are  amended
    40  to read as follows:
    41    b.  "Participating employer" means a participating employer as defined
    42  in subdivision twenty of section two of the retirement and social  secu-
    43  rity  law  or in subdivision twenty of section three hundred two of such
    44  law or the board of education of the city school district of the city of
    45  Yonkers.
    46    c. "Retirement contribution" shall mean all  or  any  portion  of  the
    47  amount  payable  by a municipal corporation to either the New York state
    48  and local employees' retirement system or the New York state  and  local

    49  police and fire retirement system pursuant to section seventeen or three
    50  hundred  seventeen  of  the retirement and social security law or to the
    51  New York state teachers' retirement system  pursuant  to  sections  five
    52  hundred seventeen and five hundred twenty-one of the education law.
    53    §  3.  Section 6-r of the general municipal law is amended by adding a
    54  new subdivision 11 to read as follows:
    55    11. A participating employer which has deposited  the  proceeds  of  a
    56  bond  issuance  authorized pursuant to subdivision three of section five

        S. 5752                             3
 
     1  hundred twenty-one of the education law is authorized to  withdraw  such
     2  proceeds  when  but  only  to  the extent such proceeds have been offset

     3  against the contribution obligation of such employer  to  the  New  York
     4  state teachers' retirement system as provided in such subdivision.
     5    § 4. Section 1678 of the public authorities law is amended by adding a
     6  new subdivision 26 to read as follows:
     7    26.  To  enter into a contract or contract with the board of education
     8  of the city school district of the city of Yonkers for  the  purpose  of
     9  financing  retirement  contributions  payments  pursuant  to subdivision
    10  three of section five hundred twenty-one of the education law.
    11    § 5. This act shall take effect immediately.
          FISCAL NOTE.--This bill would amend Section 521 of the  Education  Law
        to  allow the Board of Education of the city school district of the city
        of Yonkers to finance a certain portion of the  contributions  due  from

        such  employer  on  account  of  pensionable  compensation  paid by such
        employer during the two plan years July 1, 2011 through  June  30,  2012
        and July 1, 2012 through June 30, 2013. The Yonkers city school district
        will  have  the  authority  to  adopt  a bond resolution authorizing the
        financing of these contributions over a  period  not  to  extend  beyond
        fifteen  years.  The  amount  of such bonds shall not exceed 125% of the
        contributions due from such employer on account of  pensionable  compen-
        sation paid during the plan year July 1, 2010 through June 30, 2011. The
        proceeds  of  such  bond issuance shall be deposited by the Yonkers city
        school district in a retirement contribution reserve account  and  shall
        be  applied to offset contributions due from such employer to the System
        on account of pensionable compensation paid during the plan  years  July

        1, 2011 through June 20, 2012 and July 1, 2012 through June 30, 2013. In
        no  event  shall  the offset exceed the amount by which the contribution
        obligation of the Yonkers city school district  exceeds  8.62%  of  such
        pensionable  compensation  paid  during  the  applicable plan years. Any
        remaining balance of such  proceeds  shall  be  applied  to  offset  the
        contributions  due  from  the Yonkers city 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  the
        bond issuance or pay future employer pension contributions.
          It  is estimated that there will be no annual cost to the employers of
        members of the New York State Teachers' Retirement System, with  respect
        to  additional  employer  contributions  to  the System, if this bill is

        enacted. The annual actuarially  required  employer  contributions  will
        continue  to  be  paid  in  full and on time to the Retirement System as
        provided under current law. However, there will be bond-related expenses
        for the Yonkers city school district to finance a  portion  of  employer
        contributions through the issuance of bonds.
          The  source of this estimate is Fiscal Note 2011-58 dated June 9, 2011
        prepared by the Actuary of  the  New  York  State  Teachers'  Retirement
        System and is intended for use only during the 2011 Legislative Session.
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