Authorizes school districts to establish reserve funds for the payment of their contributions to the New York state teachers' retirement system.

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S2645-2013 Actions

• Jan 23, 2013: REFERRED TO EDUCATION

S2645-2013 Memo

BILL NUMBER:S2645

TITLE OF BILL:
An act
to amend the education law, in relation to authorizing school districts
to establish reserve funds for the payment of contributions to the New
York state teachers' retirement system

PURPOSE:
Authorizes school districts to establish reserve funds for the payment
of their contributions to the New York State Teachers' Retirement
System

SUMMARY OF PROVISIONS:

Section 1- amends 3651 of the education law by adding a new
subdivision 1-c to authorize school districts to establish a reserve
fund for the payment of the district's contributions to the New York
State Teachers' Retirement System without the approval of the voters
in the district. Such fund may not exceed the amount which is
necessary to meet such contributions.

Section 2- Contains the effective date.

EXISTING LAW:

Section 3651 of the education law sets the parameters for reserve
funds for school districts.

JUSTIFICATION:
Pension contribution rates have varied dramatically over the past two
decades, from almost zero to over twenty percent. This volatility in
expense obligation is difficult for school districts to budget for.

Current law allows for reserve funds for pension contributions for
employees, but not for teachers. By providing school districts with
the ability to establish reserve funds for teacher contributions,
school districts will be able to better prepare for increases in
contribution cost from year to year and stabilize tax rates.

LEGISLATIVE HISTORY: New Bill

FISCAL IMPLICATIONS: None

LOCAL FISCAL IMPLICATIONS:
Will allow school districts to be prepared for the fluctuating, costs
of pension contributions

EFFECTIVE DATE:
This act shall take effect immediately.

S2645-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    2645

                         2013-2014 Regular Sessions

                              I N  SENATE

                              January 23, 2013
                                 ___________

  Introduced  by  Sens. LITTLE, MARTINS -- read twice and ordered printed,
    and when printed to be committed to the Committee on Education

  AN ACT to amend the education law, in  relation  to  authorizing  school
    districts  to establish reserve funds for the payment of contributions
    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:


    Section  1.  Section  3651 of the education law is amended by adding a
  new subdivision 1-c to read as follows:

    1-C.  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBDIVISION  ONE  OF  THIS
  SECTION,  ANY  SCHOOL  DISTRICT  MAY  ESTABLISH  A  RESERVE FUND FOR THE
  PAYMENT OF THE DISTRICT'S CONTRIBUTIONS TO THE NEW YORK STATE  TEACHERS'
  RETIREMENT  SYSTEM,  PURSUANT TO ARTICLE ELEVEN OF THIS CHAPTER, WITHOUT
  APPROVAL BY THE QUALIFIED VOTERS OF  THE  DISTRICT;  PROVIDED,  HOWEVER,
  THAT  THE TOTAL OF THE MONIES HELD IN SUCH RESERVE FUND SHALL NOT EXCEED
  THAT AMOUNT WHICH IS REASONABLY DEEMED NECESSARY TO MEET  SUCH  CONTRIB-
  UTIONS.
    S 2. This act shall take effect immediately.





   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD05907-01-3