Bill S5354-2013

Creates other post-employment benefit reserve funds; repealer

Creates other post-employment benefit reserve funds; defines terms.

Details

Actions

  • Jan 8, 2014: REFERRED TO LOCAL GOVERNMENT
  • May 16, 2013: REFERRED TO LOCAL GOVERNMENT

Memo

BILL NUMBER:S5354

TITLE OF BILL: An act to amend the general municipal law and the education law, in relation to the creation and funding of other post-employment benefit reserve funds; and to repeal certain provisions of the general municipal law relating thereto

PURPOSE: This bill authorizes boards of cooperative educational services (BOCES) to establish other-post employment benefit (OPEB) reserve funds.

SUMMARY OF PROVISIONS:

Section 1: Adds a new section 6-t to the general municipal law for the establishment of other post-employment benefit (OPEB) reserve funds.

Section 2: Provides the authority for the transfer of funds into the other post-employment benefit reserve fund.

Section 3: Repeals subdivisions 10 and 11 of section 6-p of the general municipal law.

Section 4: Amends paragraph b of subdivision 5 of section 1950 of the education law.

Section 5: Sets forth an immediate effective date.

EXISTING LAW: None.

JUSTIFICATION: Despite the large and increasing costs that BOCES continue to incur each year related to employee other post-employment benefits, they do not have the legal authority to set-aside funds for these purposes. As a result, BOCES continue to accrue very significant long-term financial liabilities that may reach hundreds of millions of dollars. However, there is no statutory mechanism for BOCES to responsibly save funds to meet these long-term costs. Recent estimates for the cost of these long-term liabilities for municipalities, public authorities, and school districts reach nearly 5250 billion. This bill is limited to providing the authority to BOCES to plan for and address the looming financial liabilities of other post-employment benefits by establishing a reserve fund.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None to the state.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 5354 2013-2014 Regular Sessions IN SENATE May 16, 2013 ___________
Introduced by Sen. FLANAGAN -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the general municipal law and the education law, in relation to the creation and funding of other post-employment benefit reserve funds; and to repeal certain provisions of the general munici- pal law relating thereto THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The general municipal law is amended by adding a new section 6-t to read as follows: S 6-T. OTHER POST-EMPLOYMENT BENEFIT RESERVE FUNDS. 1. AS USED IN THIS SECTION, (A) "MUNICIPAL CORPORATION" MEANS A SCHOOL DISTRICT (EXCEPT A SCHOOL DISTRICT IN A CITY WITH A POPULATION OF ONE HUNDRED TWENTY-FIVE THOUSAND OR MORE) OR A BOARD OF COOPERATIVE EDUCATIONAL SERVICES. (B) "OTHER POST-EMPLOYMENT BENEFIT" MEANS ANY BENEFIT OTHER THAN A PENSION BENEFIT THAT A MUNICIPAL CORPORATION IS OBLIGATED BY CONTRACT, LOCAL LAW, OR STATUTE TO PAY TO, OR ON BEHALF OF, AN INDIVIDUAL ON ACCOUNT OF THAT INDIVIDUAL'S PRIOR EMPLOYMENT BY THE MUNICIPAL CORPO- RATION, INCLUDING POST-EMPLOYMENT HEALTHCARE BENEFITS, REGARDLESS OF THE TYPE OF PLAN THAT PROVIDES THEM, BUT EXCLUDING TERMINATION BENEFITS SUCH AS THOSE DESCRIBED IN SECTION SIX-P OF THIS ARTICLE. (C) "PARTICIPATING EMPLOYER" MEANS A PARTICIPATING EMPLOYER AS DEFINED IN SUBDIVISION TWENTY OF SECTION TWO OF THE RETIREMENT AND SOCIAL SECU- RITY LAW OR IN SUBDIVISION TWENTY OF SECTION THREE HUNDRED TWO OF SUCH LAW. 2. THE GOVERNING BOARD OF ANY MUNICIPAL CORPORATION WHICH IS ALSO A PARTICIPATING EMPLOYER MAY ESTABLISH BY RESOLUTION A RESERVE FUND FOR THE PURPOSE OF FINANCING OTHER POST-EMPLOYMENT BENEFITS. 3. THERE MAY BE PAID INTO AN OTHER POST-EMPLOYMENT BENEFIT RESERVE FUND:
(A) SUCH AMOUNTS AS MAY BE PROVIDED THEREFOR BY BUDGETARY APPROPRI- ATION 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, SIX-G, SIX-M, SIX-N, OR SIX-P OF THIS ARTICLE COMPRISED OF MONEYS RAISED FROM THE SAME TAX BASE AS THE MONEYS IN THE OTHER POST-EMPLOYMENT BENEFIT RESERVE FUND, OR A RESERVE FUND ESTAB- LISHED 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 MUNICI- PAL CORPORATION DOES NOT HAVE AN OFFICIAL NEWSPAPER, IN AT LEAST ONE NEWSPAPER HAVING GENERAL CIRCULATION IN THE MUNICIPAL CORPORATION. 4. THE MONEYS IN ANOTHER POST-EMPLOYMENT BENEFIT 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 ANOTHER POST-EMPLOYMENT BENEFIT RESERVE FUND EXCEPT AS OTHERWISE PROVIDED BY LAW, MONEYS IN ANOTHER POST-EMPLOYMENT BENEFIT RESERVE FUND MAY ONLY BE EXPENDED TO FINANCE OTHER POST-EMPLOY- MENT BENEFITS. 6. THE GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION BY RESOLUTION MAY AUTHORIZE THE TRANSFER OF A PORTION OF THE MONEYS IN ANOTHER POST-EM- PLOYMENT BENEFIT RESERVE FUND TO A RESERVE FUND OF THE MUNICIPAL CORPO- RATION ESTABLISHED PURSUANT TO SECTION SIX-C, SIX-D, SIX-E, SIX-F, SIX-G, SIX-M, SIX-N, OR SIX-P OF THIS ARTICLE COMPRISED OF MONEYS RAISED FROM THE SAME TAX BASE AS THE MONEYS IN THE RETIREMENT CONTRIBUTION RESERVE FUNDS, OR A RESERVE FUND ESTABLISHED PURSUANT TO SECTION THIR- TY-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 ANOTHER POST-EMPLOYMENT BENEFIT 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 SUCH FUND; THE ASSETS OF THE FUND, INDI- CATING 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. NO MEMBER OF THE GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION SHALL: (A) AUTHORIZE A WITHDRAWAL FROM AN OTHER POST-EMPLOYMENT BENEFIT 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. 9. THE GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION BY RESOLUTION MAY DETERMINE THAT AN OTHER POST-EMPLOYMENT BENEFIT RESERVE FUND IS NO LONG- ER NEEDED AND TERMINATE THE FUND. SUCH RESOLUTION SHALL TRANSFER ANY MONEYS REMAINING IN SUCH FUND TO ONE OR MORE RESERVE FUNDS OF THE MUNIC- IPAL CORPORATION ESTABLISHED PURSUANT TO SECTION SIX-C, SIX-D, SIX-E, SIX-F, SIX-I, SIX-M, SIX-N, OR SIX-P OF THIS ARTICLE COMPRISED OF MONEYS RAISED FROM THE SAME TAX BASE AS THE MONEYS IN THE OTHER POST-EMPLOYMENT BENEFIT RESERVE FUND, OR ONE OR MORE RESERVE FUNDS ESTABLISHED PURSUANT TO SECTION THIRTY-SIX HUNDRED FIFTY-ONE OF THE EDUCATION LAW. S 2. Notwithstanding any other provision of law, within 180 days of the effective date of this act, a municipal corporation may by resol- ution transfer into an other post-employment benefits reserve fund created in accordance with section 6-t of the general municipal law any funds previously committed or assigned by that municipal corporation for the purpose of paying other post-employment benefits as defined in section 6-t of the general municipal law, regardless of how those funds have been designated. S 3. Subdivisions 10 and 11 of section 6-p of the general municipal law are REPEALED. S 4. Paragraph b of subdivision 5 of section 1950 of the education law, as amended by section 80-a of part A of chapter 58 of the laws of 2011, is amended to read as follows: b. The cost of services herein referred to shall be the amount allo- cated to each component school district by the board of cooperative educational services to defray expenses of such board, except that that part of the salary paid any teacher, supervisor or other employee of the board of cooperative educational services which is in excess of thirty thousand dollars shall not be such an approved expense, and except also that administrative and clerical expenses shall not exceed ten percent of the total expenses for purposes of this computation. Any gifts, donations or interest earned by the board of cooperative educational services or on behalf of the board of cooperative educational services by the dormitory authority or any other source shall not be deducted in determining the cost of services allocated to each component school district. [Any payments made to a component school district by the board of cooperative educational services pursuant to subdivision eleven of section six-p of the general municipal law attributable to an approved cost of service computed pursuant to this subdivision shall be deducted from the cost of services allocated to such component school district.] The expense of transportation provided by the board of cooperative educational services pursuant to paragraph q of subdivision four of this section shall be eligible for aid apportioned pursuant to subdivision seven of section thirty-six hundred two of this chapter and no board of cooperative educational services transportation expense shall be an approved cost of services for the computation of aid under this subdivi- sion. Transportation expense pursuant to paragraph q of subdivision four of this section shall be included in the computation of the ten percent limitation on administrative and clerical expenses. S 5. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Discuss!

blog comments powered by Disqus