S2744-2013 Actions

• Feb 21, 2013: OPINION REFERRED TO JUDICIARY
• Jan 31, 2013: TO ATTORNEY-GENERAL FOR OPINION
• Jan 23, 2013: REFERRED TO JUDICIARY

S2744-2013 Memo

BILL NUMBER:S2744

TITLE OF BILL:  CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY propos-
ing an amendment to article V of the constitution, relating to member-
ship in retirement systems and that benefits not be diminished

PURPOSE:  To permit the comptroller to choose the methodology for valu-
ing the assets, liabilities and obligations of pension funds, which do
not diminish benefits.

SUMMARY OF PROVISIONS:

Section 1 amends section 1 of article V of the constitution by clarify-
ing that the comptroller is the sole custodian and manager of the
pension fund and can determine the method for valuing the assets,
liabilities, and obligations of such funds.

Section 2 amends section 7 of article V by stating that the methodology
chosen by the Comptroller cannot be considered an impairment of pension
benefits if the actual and tangible benefit received by the retiree is
not diminished.

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER:  This amendment
would reaffirm the authority of the comptroller as the sole manager of
the pension funds and would grant him/her flexibility in determining the
method for valuing these funds as long as they do not impair the actual
benefits of retirees.

JUSTIFICATION:  The Comptroller has the annual responsibility of certi-
fying the contribution rates of employees to the retirement system.
However, due to the fluctuations in the performance in investment
markets, there has been a trend of strong investment performance and low
employer rate contributions. This constitutional amendment will allow
the comptroller greater flexibility in determining, by means of actuari-
al valuation, the best method to administer the pension fund.

LEGISLATIVE HISTORY: This is a new bill.

FISCAL IMPLICATIONS: None to the State.

EFFECTIVE DATE: Resolved (if the Assembly concur), That the foregoing
amendment be referred to the first regular legislative session convening
after the next succeeding general election of members of the assembly,
and, in conformity with section 1 of article 19 of the constitution, be
published for 3 months previous to the time of such election.

S2744-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         2744
 2013-2014 Regular Sessions
 I N  SENATE
 January 23, 2013
 
 Introduced  by  Sen. MARTINS -- read twice and ordered printed, and when
 printed to be committed to the Committee on Judiciary
 CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
 proposing an amendment to article V of  the  constitution,  relating  to
 membership in retirement systems and that benefits not be diminished
 

Section  1. Resolved (if the Assembly concur), That section 1 of arti
 cle V of the constitution be amended to read as follows:

 

Section 1. The comptroller and attorney-general shall be chosen at the
 same general election as the governor and hold office for the same term,
 and shall possess the qualifications provided in section  2  of  article
 IV. The legislature shall provide for filling vacancies in the office of
 comptroller  and of attorney-general. No election of a comptroller or an
 attorney-general shall be had except at the time of electing a governor.
 The comptroller shall be required: (1)  to  audit  all  vouchers  before
 payment  and  all  official  accounts;  (2)  to  audit  the  accrual and
 collection of all revenues and receipts; [and]  (3)  to  prescribe  such
 methods  of accounting as are necessary for the performance of the fore
 going duties; AND (4) TO BE  THE  SOLE  CUSTODIAN  AND  MANAGER  OF  THE
 PENSION  FUNDS  PROVIDED  PURSUANT TO SECTION SEVEN OF THIS ARTICLE, AND
 FURTHER TO DETERMINE THE METHODOLOGY FOR VALUING THE ASSETS, LIABILITIES
 AND OBLIGATIONS OF SUCH FUNDS.  The payment of any money of  the  state,
 or  of  any  money under its control, or the refund of any money paid to
 the state, except upon audit by the comptroller, shall be void, and  may
 be  restrained  upon  the  suit  of any taxpayer with the consent of the
 supreme court in appellate division on notice to  the  attorney-general.
 In  such  respect the legislature shall define the powers and duties and
 may also assign to him or her: (1) supervision of the  accounts  of  any
 political subdivision of the state; and (2) powers and duties pertaining
 to or connected with the assessment and taxation of real estate, includ
 ing determination of ratios which the assessed valuation of taxable real
 property  bears  to the full valuation thereof, but not including any of
 those powers and duties reserved to officers of a county, city, town  or
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD89061-01-3
 
       S. 2744                             2
 village  by  virtue  of sections seven and eight of article nine of this
 constitution. The legislature shall assign to him or her no  administra
 tive  duties,  excepting such as may be incidental to the performance of
 these functions, any other provision of this constitution to the contra
 ry notwithstanding.
 

S 2. Resolved (if the Assembly concur), That section 7 of article V of
 the constitution be amended to read as follows:

 

S  7.  After  July  first,  nineteen  hundred forty, membership in any
 pension or retirement system of the state or of a civil division thereof
 shall be a contractual relationship, the benefits of which shall not  be
 diminished  or impaired.  HOWEVER, THE METHODOLOGY SELECTED BY THE COMP
 TROLLER PURSUANT TO SECTION ONE OF THIS ARTICLE SHALL NOT BE  CONSIDERED
 AN IMPAIRMENT OF PENSION BENEFITS PURSUANT TO THIS OR ANY OTHER SECTION,
 IF THE ACTUAL AND TANGIBLE BENEFIT RECEIVED BY THE RETIREE IS NOT DIMIN
 ISHED.
 

S  3.  Resolved (if the Assembly concur), That the foregoing amendment
 be referred to the first regular legislative session convening after the
 next succeeding general election of members of  the  assembly,  and,  in
 conformity  with  section  1  of  article  19  of  the  constitution, be
 published for 3 months previous to the time of such election.

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