2010 New York Code
RSS - Retirement & Social Security
Article 2 - NEW YORK STATE EMPLOYEES' RETIREMENT SYSTEM
Title 2 - (10 - 19-A) ESTABLISHMENT, MANAGEMENT, SUPERVISION AND FINANCING
19-A - Employer contributions for the two thousand ten - two thousand eleven fiscal year and subsequent fiscal years.

§ 19-a. Employer contributions for the two thousand ten - two thousand
  eleven  fiscal  year  and subsequent fiscal years. a. In addition to the
  definitions in section two of this article, when used in this section:
    (1) "Amortizing employer"  shall  mean  an  employer  that  elects  to
  amortize  a  portion of the employer's annual bill pursuant to paragraph
  one of subdivision d of this section for the  two  thousand  ten  -  two
  thousand  eleven  fiscal year, or any subsequent fiscal year, regardless
  of whether the employer has subsequently paid in full all such amortized
  amounts.
    (2) "Amount eligible for amortization" for a given fiscal  year  shall
  mean  the  amount by which an employer's actuarial contribution for such
  fiscal year exceeds the employer's  graded  contribution  for  the  same
  fiscal year, less any amount from the employer contribution reserve fund
  applied  to  reduce  the employer's payment to the retirement system for
  the fiscal year, provided,  however,  that  if  the  employer's  average
  actuarial  contribution  rate  for the fiscal year is less than nine and
  one-half percent, then the amount eligible  for  amortization  shall  be
  zero.
    (3)  "Employer's actuarial contribution" for a given fiscal year shall
  mean an employer's  annual  bill  for  such  fiscal  year  exclusive  of
  deficiency  contributions  and  payments  on  account of group term life
  insurance, adjustments relating  to  prior  fiscal  years'  obligations,
  retirement incentives and prior amortizations.
    (4)  "Employer's  annual  bill" shall mean for a given fiscal year the
  sum of the following amounts: (i) an employer's normal contributions for
  the  fiscal  year  determined  in  accordance  with  paragraph  one   of
  subdivision   b   of  section  twenty-three  of  this  article  and  the
  comprehensive  structural  reform  program   implemented   pursuant   to
  subdivision  b  of section twenty-three-a of this article, including the
  provisions of subdivision b of section twenty-three-a  of  this  article
  relating  to  the  required  minimum  annual  contribution  of  four and
  one-half percent of pensionable salaries; (ii) the employer's deficiency
  contributions and  administration  contributions  for  the  fiscal  year
  determined  in accordance with paragraphs two and three of subdivision b
  of section twenty-three of this article; and (iii) any payments  by  the
  employer due in the fiscal year on account of group term life insurance,
  adjustments  relating  to  prior  fiscal  years' obligations, retirement
  incentives and prior amortizations.
    (5) "Employer's average  actuarial  contribution  rate"  for  a  given
  fiscal  year  shall  mean  an employer's actuarial contribution for such
  fiscal year divided by the employer's projected  payroll  for  the  same
  fiscal year.
    (6)  "Employer  contribution  reserve  fund"  or "fund" shall mean the
  employer contribution reserve fund established pursuant to subdivision e
  of this section.
    (7) "Employer's graded contribution" for a  given  fiscal  year  shall
  mean  the  amount  determined by applying the system graded contribution
  rate for such fiscal year to an employer's  projected  payroll  for  the
  same fiscal year.
    (8) "Employer's graded payment" for a given fiscal year shall mean the
  amount  by  which an employer's graded contribution for such fiscal year
  exceeds the employer's actuarial contribution for the same fiscal year.
    (9) "Prior amortization" shall mean with respect  to  a  given  fiscal
  year  any  payment  due  in such fiscal year on account of an obligation
  from a prior fiscal year that an employer is permitted  to  pay  to  the
  retirement system on an amortized basis.
    (10)  "System  average actuarial contribution rate" for a given fiscal
  year shall mean the sum of all employers'  actuarial  contributions  for

such  fiscal year divided by the sum of all employers' projected payroll
  for the same fiscal year.
    (11)  "System  graded contribution rate" for a given fiscal year shall
  mean the graded contribution rate for the retirement system as  a  whole
  determined  for  such  fiscal  year  pursuant  to  subdivision c of this
  section.
    b. Notwithstanding the provisions of this chapter or any other law  to
  the  contrary,  the  comptroller,  in  his or her discretion, shall have
  authority to implement  this  section.  If  the  comptroller  elects  to
  implement  this  section,  the provisions of this section shall apply to
  the payment of employer contributions for the fiscal year commencing  on
  April first, two thousand ten, and for subsequent fiscal years.
    c. For each fiscal year to which the provisions of this section apply,
  the  comptroller  shall  determine  a  graded  contribution rate for the
  retirement system as a whole in the manner provided in this subdivision.
    (1) For the two thousand ten - two thousand  eleven  fiscal  year  the
  system graded contribution rate shall be nine and one-half percent.
    (2) For the two thousand eleven - two thousand twelve fiscal year, and
  subsequent  fiscal  years,  system  graded  contribution  rates shall be
  determined as follows:
    (i) if the system average actuarial  contribution  rate  for  a  given
  fiscal year is at least nine and one-half percent and exceeds the system
  graded  contribution  rate  for the immediately preceding fiscal year by
  more than one percentage point, then the system graded contribution rate
  for the given fiscal year shall equal  the  system  graded  contribution
  rate  for  the  immediately  preceding  fiscal  year plus one percentage
  point, provided, however, that in  no  event  shall  the  system  graded
  contribution rate be less than nine and one-half percent;
    (ii)  if  the  system  average actuarial contribution rate for a given
  fiscal year is at least nine and one-half percent and either equals  the
  system  graded  contribution  rate  for the immediately preceding fiscal
  year or exceeds the system graded contribution rate for the  immediately
  preceding  fiscal  year by one percentage point or less, then the system
  graded contribution rate for the  given  fiscal  year  shall  equal  the
  system  average  actuarial  contribution  rate  for  such  fiscal  year,
  provided, however, that in no event shall the system graded contribution
  rate be less than nine and one-half percent;
    (iii) if the system average actuarial contribution rate  for  a  given
  fiscal  year is less than nine and one-half percent and greater than the
  system graded contribution rate for  the  immediately  preceding  fiscal
  year, then the system graded contribution rate for the given fiscal year
  shall equal the system actuarial contribution rate for such fiscal year;
    (iv)  if  the  system  average actuarial contribution rate for a given
  fiscal year is smaller than the system graded contribution rate for  the
  immediately  preceding  fiscal  year  by more than one percentage point,
  then the system graded contribution rate for the given fiscal year shall
  equal the system graded contribution rate for the immediately  preceding
  fiscal year minus one percentage point; and
    (v)  if  the  system  average  actuarial contribution rate for a given
  fiscal year either equals the system graded contribution  rate  for  the
  immediately  preceding  fiscal year or is smaller than the system graded
  contribution rate for the  immediately  preceding  fiscal  year  by  one
  percentage  point  or less, then the system graded contribution rate for
  the given fiscal year shall equal the system actuarial contribution rate
  for such fiscal year.
    d. (1) For any given fiscal  year  for  which  an  employer's  average
  actuarial contribution rate exceeds the system graded contribution rate,
  the  employer  shall pay to the retirement system an amount equal to the

employer's annual bill for such year or, in lieu of  paying  the  entire
  annual  bill,  the  employer  may  pay an amount equal to the employer's
  annual bill less all or a portion of the employer's amount eligible  for
  amortization  for  the fiscal year. If in accordance with this paragraph
  the employer's payment to the retirement system is less than the  entire
  amount  of  the  employer's annual bill, then the difference between the
  employer's annual bill, and the amount actually paid by the employer  to
  the  retirement  system  exclusive  of  any  amount  from  the  employer
  contribution reserve fund applied  to  reduce  the  employer's  payment,
  shall  be the amount amortized for the fiscal year. The amount amortized
  for the fiscal year shall be paid to  the  retirement  system  in  equal
  annual  installments over a ten-year period, with interest on the unpaid
  balance at a rate determined by the  comptroller  which  approximates  a
  market  rate  of  return  on  taxable fixed rate securities with similar
  terms issued by comparable issuers, and with the first  installment  due
  in the immediately succeeding fiscal year.
    (2) For any given fiscal year for which the system graded contribution
  rate  equals  or  exceeds  an  amortizing  employer's  average actuarial
  contribution rate, the amortizing employer shall pay to  the  retirement
  system  an amount equal to the employer's annual bill for such year plus
  the employer's graded payment for the fiscal year.
    (i) If the amortizing employer's annual bill for the fiscal year  does
  not  include  an  amount  attributable to a prior amortization, then the
  employer's graded payment shall be paid into the  employer  contribution
  reserve  fund provided for in subdivision e of this section and credited
  to an account within such fund established for the employer.
    (ii) If the amortizing employer's annual  bill  for  the  fiscal  year
  includes  an amount attributable to a prior amortization, the employer's
  graded payment shall be used  first  to  eliminate  the  amount  of  the
  employer's  unpaid  prior  amortization  balances in chronological order
  starting with the oldest prior amortization balance. When in any  fiscal
  year  the  employer's graded payment eliminates all balances owed on the
  employer's prior amortizations, any remaining portion of the  employer's
  graded  payment  for such fiscal year, and the employer's graded payment
  in any subsequent fiscal year in which the amortizing  employer  has  no
  unpaid prior amortizations, shall be paid into the employer contribution
  reserve  fund provided for in subdivision e of this section and credited
  to an account within such fund established for the employer.
    (3) Nothing in this subdivision shall be construed as  prohibiting  an
  employer from pre-paying any prior amortization.
    e.  (1)  Notwithstanding  any  law  to  the  contrary,  there shall be
  maintained separate and apart from the other  funds  of  the  retirement
  system  an employer contribution reserve fund, the assets of which shall
  not be used or invested in a manner contrary to the provisions  of  this
  subdivision.  The  fund  shall  consist  of  all  employer contributions
  required to be deposited into the fund pursuant to subdivision d of this
  section. Within such fund there shall be a  separate  account  for  each
  employer making such contributions and payments.
    (2)  For  any  given  fiscal  year  for which (i) the system actuarial
  contribution rate exceeds nine and one-half percent of payroll, and (ii)
  an employer's average actuarial contribution  rate  exceeds  the  system
  graded  contribution  rate, the balance in the employer's account within
  such fund shall be applied to  reduce  the  employer's  payment  to  the
  retirement  system  for  such fiscal year in an amount not to exceed the
  difference  between  the  employer's  actuarial  contribution  and   the
  employer's graded contribution for the fiscal year.
    (3)   Notwithstanding   the   provisions  of  paragraph  two  of  this
  subdivision, if at the close of any given fiscal year the balance of  an

employer's  account  within  the fund exceeds one hundred percent of the
  employer's payroll for such fiscal year, the excess shall be applied  to
  reduce  the  employer's  payment  to  the retirement system for the next
  succeeding fiscal year.
    (4)  The  assets  of  the fund shall be invested in only the following
  types of investments:
    (i) obligations of the United States  of  America  or  in  obligations
  guaranteed by agencies of the United States of America where the payment
  of principal and interest are guaranteed by the United States of America
  or in obligations of the state of New York;
    (ii)  general  obligation bonds and notes of any state other than this
  state, provided that such bonds and notes receive the highest rating  of
  at least one independent rating agency;
    (iii)  obligations of, or instruments issued by or fully guaranteed as
  to principal and interest by,  any  agency  or  instrumentality  of  the
  United  States acting pursuant to a grant of authority from the congress
  of the United States, including, but not limited to,  any  federal  home
  loan bank or banks, the Tennessee valley authority, the federal national
  mortgage association, the federal home loan mortgage corporation and the
  United States postal service;
    (iv)  certificate  of deposits that are fully secured by the issuer by
  depositing with the comptroller direct or indirect  obligations  of  the
  United  States  or  its  agencies  or  a  letter of credit issued by the
  Federal Home Loan Bank; and
    (v) obligations of any corporation organized under  the  laws  of  any
  state  in  the  United  States  maturing within two hundred seventy days
  provided that  such  obligations  receive  the  highest  rating  of  two
  independent rating services designated by the comptroller.
    (5)  At  the  close  of  each  fiscal year, the amount of interest and
  earnings attributable to each employer's account shall  be  computed  by
  the actuary and certified to the comptroller, who shall thereupon credit
  each employer's account in accordance therewith.
    (6) The assets of the fund shall be excluded from the annual valuation
  of  the  assets  and  liabilities  of the funds of the retirement system
  required by section eleven of this title. The assets of the  fund  shall
  not be used to finance increases in pension benefits.