Bill S2645-2013

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

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

Details

Actions

  • Jan 8, 2014: REFERRED TO EDUCATION
  • Jan 23, 2013: REFERRED TO EDUCATION

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.


Text

STATE OF NEW YORK ________________________________________________________________________ 2645 2013-2014 Regular Sessions IN 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.

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