Relates to membership in retirement systems.
TITLE OF BILL: 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
PURPOSE: To permit the comptroller to choose the methodology for valuing 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 clarifying 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 certifying 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 actuarial 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.
STATE OF NEW YORK ________________________________________________________________________ 2744 2013-2014 Regular Sessions IN 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.