2019 New York Laws
GMU - General Municipal
Article 2 - General Municipal Finances
6-R - Retirement Contribution Reserve Funds

§  6-r.  Retirement  contribution  reserve  funds  1.  As used in this
section:
  a. "Municipal corporation" means a municipal corporation as defined in
section two of this chapter, school district (except a  school  district
in  a  city  with  a  population  of one hundred twenty-five thousand or
more),  board  of  cooperative  educational  services,  fire   district,
district  corporation, police district, and special improvement district
governed by a separate board of commissioners.
  b. "Participating employer" means: (i)  a  participating  employer  as
defined  in  subdivision  twenty  of  section  two of the retirement and
social security law or in subdivision twenty of  section  three  hundred
two  of  such  law;  or  (ii)  a  participating  employer  as defined in
subdivision three of section five hundred one of the education law.
  c. "Retirement contribution" shall mean all  or  any  portion  of  the
amount  payable  by  a municipal corporation to: (i) either the New York
state and local employees' retirement system or the New York  state  and
local police and fire retirement system pursuant to section seventeen or
three  hundred  seventeen  of the retirement and social security law; or
(ii) the New York state teachers' retirement system pursuant to  section
five hundred twenty-one of the education law.
  2.  The  governing  board of any municipal corporation which is also a
participating  employer  by  resolution  may  establish   a   retirement
contribution  reserve  fund  for the purpose of (a) financing retirement
contributions, and/or (b) in the case of a municipal  corporation  which
is  a  participating employer as defined in subdivision three of section
five  hundred  one  of  the  education  law,  financing   appropriations
authorized  by  law  in  order  to offset all or a portion of the amount
deducted from the moneys apportioned to the municipal  corporation  from
the  state  for  the  support of common schools pursuant to section five
hundred twenty-one of the education law.
  2-a. With respect to a municipal corporation which is a  participating
employer  as defined in subdivision three of section five hundred one of
the education law, which elects to  utilize  a  retirement  contribution
reserve  fund  (a)  to  finance retirement contributions to the New York
state teachers' retirement  system  pursuant  to  section  five  hundred
twenty-one of the education law and/or (b) to offset all or a portion of
the  amount  deducted  from  the  moneys  apportioned  to  the municipal
corporation from the state for the support of common schools pursuant to
section five hundred twenty-one of the  education  law,  such  municipal
corporation   shall   establish   a   sub-fund   within  the  retirement
contribution  reserve  fund,  which  shall  be  separately  administered
consistent   with   the  provisions  of  this  section.  Such  municipal
corporation may pay into such sub-fund during any particular fiscal year
an amount not to exceed two per centum  of  the  total  compensation  or
salaries of all teachers in the employ of said municipal corporation who
are  members  of  the  New  York  state teachers' retirement system paid
during the immediately  preceding  fiscal  year.  The  balance  of  such
sub-fund  may  not  exceed  ten  per centum of the total compensation or
salaries of all teachers in the employ of the municipal corporation  who
are  members  of  the  New  York  state teachers' retirement system paid
during the immediately preceding fiscal year. For the purposes  of  this
subdivision, the term "teacher" shall have the same meaning as such term
is  defined  under  subdivision  four of section five hundred one of the
education law.
  3. There may be paid into a retirement contribution reserve fund:
  a. such amounts as may be provided therefor by budgetary appropriation
or raised by tax therefor;

  b. such revenues as are not required by law to be paid into any  other
fund or account;
  c. such other funds as may be legally appropriated; and
  d.  notwithstanding  any  law  to the contrary, such amounts as may be
transferred from a reserve fund established pursuant to  section  six-c,
six-d,  six-e, six-f or six-g of this article comprised of moneys raised
from the same tax base as the  moneys  in  the  retirement  contribution
reserve  fund,  or  a  reserve  fund  established  pursuant  to  section
thirty-six hundred fifty-one of the education law,  provided,  that  any
such transfer shall only be made by resolution of the governing board of
such  municipal  corporation  adopted  after a public hearing held on at
least fifteen days prior published notice in the official  newspaper  of
the municipal corporation or, if the municipal corporation does not have
an  official  newspaper,  in  at  least  one  newspaper  having  general
circulation in the municipal corporation.
  4. The moneys in a  retirement  contribution  reserve  fund  shall  be
deposited  and  secured  in  the  manner provided by section ten of this
article. The governing board of such municipal corporation, or the chief
fiscal officer thereof if the governing board shall delegate  such  duty
to him or her, may invest the moneys in such fund in the manner provided
by  section  eleven of this article. Any interest earned or capital gain
realized on the money so deposited  or  invested  shall  accrue  to  and
become part of such fund.
  5. The governing board of such municipal corporation by resolution may
authorize  expenditures  from  a  retirement  contribution reserve fund.
Except as otherwise provided by law, moneys in a retirement contribution
reserve  fund  may  only  be  expended   (a)   to   finance   retirement
contributions,  and/or  (b) in the case of a municipal corporation which
is a participating employer, as defined in subdivision three of  section
five  hundred one of the education law, for appropriations authorized by
law in order to offset all or a portion of the amount deducted from  the
moneys  apportioned to the participating employer from the state for the
support of common schools pursuant to section five hundred twenty-one of
the education law. With respect to a municipal corporation  which  is  a
participating  employer  as defined in subdivision three of section five
hundred one of the  education  law,  expenditures  from  the  retirement
contribution reserve fund to finance retirement contributions to the New
York  State teachers' retirement system pursuant to section five hundred
twenty-one of the education law and/or to offset all or a portion of the
amount deducted from the moneys apportioned to the municipal corporation
from the state for the support of common  schools  pursuant  to  section
five  hundred  twenty-one of the education law may only be made from the
sub-fund established pursuant to subdivision two-a of this section.
  6. The governing board of such municipal corporation by resolution may
authorize the transfer of a  portion  of  the  moneys  in  a  retirement
contribution reserve fund to a reserve fund of the municipal corporation
established  pursuant  to section six-c, six-d, six-e, six-f or six-g of
this article comprised of moneys raised from the same tax  base  as  the
moneys  in  the  retirement contribution reserve fund, or a reserve fund
established pursuant to section  thirty-six  hundred  fifty-one  of  the
education  law,  provided,  that any such transfer shall only be made by
resolution of the governing board of such municipal corporation  adopted
after  a  public  hearing  held on at least fifteen days prior published
notice in the official newspaper of the municipal corporation or, if the
municipal corporation does not have an official newspaper, in  at  least
one newspaper having general circulation in the municipal corporation.
  7.  The  chief  fiscal  officer  of  such  municipal corporation shall
account for a retirement contribution reserve fund  separate  and  apart

from all other funds of the municipal corporation. Such accounting shall
show:    the source, date and amount of each sum paid into the fund; the
interest earned by such fund; capital gains or losses resulting from the
sale  of  investments of this fund; the order, purpose thereof, date and
amount of  each  payment  from  this  fund;  the  assets  of  the  fund,
indicating  cash balance and a schedule of investments. The chief fiscal
officer, within sixty days of the end of each fiscal year, shall furnish
a detailed report of the operation and condition of  this  fund  to  the
governing board.
  8.  The  members  of the governing board of such municipal corporation
are hereby declared trustees of a retirement contribution  reserve  fund
and  shall  be subject to all the duties and responsibilities imposed by
law on trustees, and such duties and responsibilities may be enforced by
the municipal corporation,  as  the  case  may  be,  or  by  any  board,
commission, agency, officer or taxpayer thereof.
  9.  No  member  of  the  governing board of such municipal corporation
shall:
  (a) authorize a withdrawal from a retirement contribution reserve fund
for any purpose except as provided in this section; or
  (b) expend any money withdrawn from such fund for a purpose other than
as provided in this section.
  Any member of the governing board who violates the provisions of  this
subdivision shall be guilty of a misdemeanor.
  10.  The  governing  board of such municipal corporation by resolution
may determine that a retirement contribution reserve fund is  no  longer
needed and terminate the fund. Such resolution shall transfer any moneys
remaining  in  such  fund  to one or more reserve funds of the municipal
corporation established pursuant to section six-c, six-d,  six-e,  six-f
or  six-g  of  this article comprised of moneys raised from the same tax
base as the moneys in the retirement contribution reserve fund,  or  one
or more reserve funds established pursuant to section thirty-six hundred
fifty-one of the education law.
  11.  The  governing  board  of  a  municipal  corporation  which  is a
participating employer as defined in subdivision three of  section  five
hundred  one  of  the  education law by resolution may (a) authorize the
transfer  of  all  or  a  portion  of  the  monies  in  the   separately
administered  sub-fund  as  established  under subdivision two-a of this
section  to  the  retirement  contribution  reserve  fund,  and/or   (b)
authorize  the  transfer  of  all  or  a  portion  of  the monies in the
retirement contribution reserve  fund  to  the  separately  administered
sub-fund  as  provided  in subdivision two-a of this section, subject to
the limits on annual payments into the sub-fund and the balance  of  the
sub-fund specified by subdivision two-a of this section.