A05525 Summary:

BILL NO    A05525 

SAME AS    No same as 

SPONSOR    Abbate

COSPNSR    Otis, Steck, Buchwald, Skoufis

MLTSPNSR   

Add S97-llll, St Fin L; add S169, Civ Serv L; add S6-t, amd S6-p, Gen Muni L

Authorizes the state and certain local governments to establish other post
employment benefits (OPEB) trusts; establishes the other post employment
benefits (OPEB) investment fund.
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A05525 Actions:

BILL NO    A05525 

02/26/2015 referred to governmental employees
05/19/2015 reported referred to ways and means
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A05525 Memo:

BILL NUMBER:A5525

TITLE OF BILL:  An act to amend the state finance law, the civil
service law and the general municipal law, in relation to authorizing
the state and certain local governments to establish other post
employment benefits (OPEB) trusts and establishing the other post
employment benefits (OPEB) investment fund

PURPOSE:

This legislative proposal would provide express statutory authority
for the creation of OPEB trusts for New York State and its local
governments to provide a mechanism to accumulate funds for OPEB costs,
should the State or local government decide to fund these liabilities.

SUMMARY OF PROVISIONS:

Section one of the bill amends the State Finance Law by adding a new
section 97-1111 to establish an OPEB investment fund in the sole
custody of the State Comptroller for the investment of OPEB assets of
the State and participating eligible local governments.

Section two of the bill amends the Civil Service Law by adding a new
section 169 to authorize the establishment of a State OPEB trust in
the custody of the president of the Civil Service Commission. "Other
post employment benefits" would be defined to mean benefits, except
pensions or other benefits funded through a public retirement system.
provided or to be provided by the State to its officers, employees, or
their families or beneficiaries, after service to the government ends,
including health care benefits. The President of the Civil Service
Commission would be declared to be the trustee.

Section three of the bill amends the General Municipal Law by adding a
new section 6-t authorizing governing boards of local governments, by
resolution. to establish trusts for the purpose of accumulating assets
to fund "other post-employment benefit. The governing board would be
declared to be the trustee, but would be authorized by resolution, to
designate the chief fiscal officer of the local government, with his
or her consent as trustee.

The trusts would be irrevocable before all liabilities for other post
employment benefits have been satisfied and would be dedicated solely
to, and used solely for, providing such benefits and paying
appropriate and reasonable administrative expenses. To the extent
allowed by law, trust assets would not be subject to any claim of
creditors of the local government Bill section three authorizes
investment of trust assets in the "Other Post-Employment Benefits
Investment Fund" in the custody of the State Comptroller, which would
be established in section one of the bill.

The trustee would be required to prepare or cause to be prepared an
annual financial report of assets, liabilities, revenues and expenses
of the trust, and cause the activities of the trust to be audited,
either separately or as part of the overall audit of the reporting
entity. The State Comptroller, in his or her discretion, would be
given express authority to promulgate regulations for the proper


operation and management of trusts established pursuant to new General
Municipal Law S 6-t.

Finally, the bill would expressly make clear that it is intended only
to provide a mechanism to accumulate assets should a local government
choose to fund its liability for other post employment benefits. It
would state that nothing in new section 6-t shall be construed or
interpreted to (1) create any obligation in, impose any obligation on,
or alter any obligation of any local government to provide other post
employment benefits, (2) limit or restrict the authority of a local
government to modify or eliminate other post employment benefits, (3)
assure or deny other post employment benefits, or (4) require any
local government to fund its liability for other post employment
benefits.

Section four of this bill amends Subdivision 9 of Section 6-p of the
General Municipal Law to allow school districts to transfer excess
reserve balances to an "other post-employment benefits" (OPEB) trust
once it is established.

Section five of the bill would ensure the validity of the
establishment and implementation of the New York City Retiree Health
Benefit Trust, established June 12, 2006 by the City of New York as
Grantor, and make clear that neither the operation nor any amendment
of such trust would be subject to General Municipal Law S 6-t. It
would further expressly ratify the establishment of such New York
City's trust and its operation in accordance with its terms.

Section six of the bill provides for an immediate effective date.

PRIOR LEGISLATIVE HISTORY:

S. 7534 (Passed Senate) and A. 11038 of 2009-2010
S.4279 and A.3636 of 2013-2014

JUSTIFICATION:

In June 2004, the Governmental Accounting Standards Board, a national
body that sets the standards for governmental accounting and
reporting, issued a statement known as GASB 45, which established
accounting and reporting standards for "other post-employment
benefits" (OPEB) offered by state and local governments. OPEB are
employee benefits except pensions or other benefits funded through a
public retirement system that are received after service has ended.
Generally, GASB 45 applies to all public entities (including state
governments; county, city, town and village governments; and school
districts) that follow GAAP (Generally Accepted Accounting Principles)
in filing their annual financial statements and offer other
post-employment benefits. In New York State, about one-quarter of
local governments and most school districts are required to comply.
GASB 45 requires covered state and local governments nationwide to
report liabilities for OPEB similarly to the way they report pension
liabilities. While GASB 45 does not require governments to fund these
benefits, they must begin to report them in their financial
statements.


GASB is in the process of finalizing additional accounting and
financial reporting requirements for OPEB as well as criteria for OPEB
trusts that are scheduled to take effect at the end of 2015.  This
proposal will help public employers comply with GASB' s new rules.

More than one million New Yorkers rely on post employment benefits for
their health care. Over time, the "pay-as-you-go" method currently
followed by most public entities will become increasingly expensive.
The State Comptroller, as the chief fiscal officer for the State. has
determined that the fiscally responsible and prudent approach is to
start preparing for the future in order to protect these health care
benefits for New Yorkers. Governments should develop plans to address
these costs, and a government which puts aside funds in a trust
established for this purpose can substantially cut its long-term OPEB
liabilities.

Pursuant to the provisions of the proposal, local government trustees
are authorized to invest OPEB assets in the State-administered
investment fund. The bill makes clear that it establishes no
requirement to fund OPEB liabilities. It merely creates the framework
for the creation, operation and management of OPEB trusts for those
governments choosing to do so. Likewise, the bill makes clear that
these new provisions would not create, modify, limit or restrict any
obligation to provide OPEB.

Although GASB does not require the funding of OPEB liabilities, GASB
has indicated that, in order to be considered funded in accordance
with GASB, the employer must transfer assets to a "qualifying trust or
equivalent arrangement" in which OPEB assets are held in trust for the
exclusive benefit of plan members and their beneficiaries in
accordance with the terms of the OPEB plan. To the extent allowed by
law, OPEB plan assets must be legally protected from creditors of the
employer. The construct of the trusts authorized by this bill is
intended to be consistent with the "staff guidance" provided by GASB
in this regard.

The local governing board (or by delegation its chief fiscal officer)
would be the trustee of any locally-established OPEB trust. The
Commissioner of Civil Service would be the sole trustee of the State's
OPEB trust. who would be authorized to manage the trust and invest
assets in the OPEB investment fund. The State Comptroller would be the
sole custodian of the OPEB investment fund and would manage the assets
of the fund; OSC would be authorized to contract for administrative
services of the fund.

Contributions into OPEB trusts would be made at the option of the
State and local employers and would be irrevocable before all OPEB
liabilities have been satisfied; assets of such trusts could be used
only for OPEB liabilities and proper expenses of the trust. and, to
the extent allowed by law, would be protected from the creditors of
the sponsoring governments. The trusts may be terminated only when all
OPEB liabilities have been satisfied and there is no present or future
obligation, contingent or otherwise, to provide OPEB.

The State-administered OPEB investment fund would be separate and
distinct from the Common Retirement Fund. Assets of the fund would be
invested pursuant to prudent person investment guidelines, and


investors would be provided with several investment options. Separate
accounts would be established for the State and any participating
local governments, but amounts would be commingled for investment
purposes. Actuarial assumptions and amounts of contributions would be
determined by individual participating local governments, and
withdrawals would be scheduled,by participating local governments.
Administrative costs of the investment fund We charged against the
fund and supported by an administrative fee charged to participants.

New York City, has already begun funding its OPEB liabilities and the
bill "grandfathers in" the New York City Retiree Health Benefit Trust,
established June 12, 2006. The City and the State would be granted
broader investment authority consistent with their management of their
respective pension funds.

The Comptroller urges passage of this legislation.

BUDGET IMPLICATIONS:

This bill has no significant fiscal impact.

EFFECTIVE DATE:

This bill would take effect immediately.
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A05525 Text:

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

                                         5525

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                   February 26, 2015
                                      ___________

       Introduced  by  M. of A. ABBATE -- (at request of the State Comptroller)
         -- read once and referred to the Committee on Governmental Employees

       AN ACT to amend the state finance law, the civil  service  law  and  the
         general  municipal  law,  in  relation  to  authorizing  the state and
         certain local governments to establish other post employment  benefits
         (OPEB)  trusts  and  establishing  the  other post employment benefits
         (OPEB) investment fund

         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section  1.  The  state finance law is amended by adding a new section
    2  97-llll to read as follows:
    3    S 97-LLLL. OTHER POST EMPLOYMENT BENEFITS ("OPEB") INVESTMENT FUND. 1.
    4  THERE IS HEREBY ESTABLISHED IN THE SOLE CUSTODY OF THE STATE COMPTROLLER
    5  A SPECIAL INVESTMENT FUND TO BE KNOWN AS THE OTHER POST EMPLOYMENT BENE-
    6  FITS INVESTMENT FUND.
    7    2. FOR PURPOSES OF THIS SECTION:
    8    (A) "FUND" SHALL MEAN THE OTHER POST  EMPLOYMENT  BENEFITS  INVESTMENT
    9  FUND CREATED BY THIS SECTION;
   10    (B) "COMPTROLLER" SHALL MEAN THE STATE COMPTROLLER;
   11    (C) "STATE" SHALL MEAN THE STATE OF NEW YORK;
   12    (D)  "LOCAL  GOVERNMENT"  SHALL  HAVE THE SAME MEANING AS SET FORTH IN
   13  PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION SIX-T OF THE GENERAL MUNICI-
   14  PAL LAW;
   15    (E) "OTHER PUBLIC CORPORATION" SHALL MEAN ANY PUBLIC CORPORATION OTHER
   16  THAN A LOCAL GOVERNMENT THAT IS AUTHORIZED TO ESTABLISH  AN  IRREVOCABLE
   17  TRUST; AND
   18    (F)  "PARTICIPATING TRUSTEE" SHALL MEAN THE TRUSTEE FOR THE STATE, AND
   19  THE TRUSTEE FOR ANY LOCAL GOVERNMENT OR  ANY  OTHER  PUBLIC  CORPORATION
   20  THAT INVESTS MONEYS IN THE FUND PURSUANT TO THIS SECTION.
   21    3. THE FUND SHALL CONSIST OF ALL MONEYS PAID TO THE COMPTROLLER BY THE
   22  STATE  PURSUANT  TO  SECTION ONE HUNDRED SIXTY-NINE OF THE CIVIL SERVICE

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03005-02-5
       A. 5525                             2

    1  LAW, BY LOCAL GOVERNMENTS PURSUANT  TO  SECTION  SIX-T  OF  THE  GENERAL
    2  MUNICIPAL  LAW  AND  BY ANY OTHER PUBLIC CORPORATION THAT ESTABLISHES AN
    3  OTHER POST EMPLOYMENT BENEFITS TRUST. THE MONEYS IN THE FUND  SHALL  NOT
    4  BE  WITHIN THE STATE TREASURY, AND SHALL NOT BE DEEMED TO BE STATE FUNDS
    5  FOR ANY PURPOSE. NOTWITHSTANDING THE PROVISIONS OF SECTION FOUR OF  THIS
    6  CHAPTER, OR ANY OTHER PROVISION OF LAW, MONEYS MAY BE DISBURSED FROM THE
    7  FUND FOR ANY AUTHORIZED PURPOSE WITHOUT APPROPRIATION.
    8    4.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE MONEYS IN THE FUND
    9  MAY BE INVESTED BY THE COMPTROLLER IN  ACCORDANCE  WITH  THE  INVESTMENT
   10  OPTIONS  SELECTED PURSUANT TO THE WRITTEN INVESTMENT POLICY DEVELOPED BY
   11  EACH PARTICIPATING TRUSTEE IN ANY INVESTMENTS  IN  COMPLIANCE  WITH  THE
   12  FOLLOWING STANDARDS:
   13    (A)  THE  COMPTROLLER  SHALL  EXERCISE  SUCH  JUDGMENT,  CARE,  SKILL,
   14  PRUDENCE AND DILIGENCE UNDER THE CIRCUMSTANCES THEN  PREVAILING  THAT  A
   15  KNOWLEDGEABLE  AND PRUDENT INVESTOR ACTING IN A LIKE CAPACITY AND FAMIL-
   16  IAR WITH SUCH MATTERS WOULD USE IN THE CONDUCT OF  AN  ENTERPRISE  OF  A
   17  LIKE CHARACTER AND WITH LIKE AIMS; AND
   18    (B)  THE  COMPTROLLER  SHALL PRUDENTLY DIVERSIFY THE INVESTMENT OF THE
   19  FUND'S PORTFOLIO AMONG INVESTMENT TYPES AND WITHIN INVESTMENT TYPES IN A
   20  MANNER CONSISTENT WITH THE FOREGOING UNLESS UNDER THE  CIRCUMSTANCES  IT
   21  IS CLEARLY PRUDENT NOT TO DO SO.
   22    5.  THE COMPTROLLER SHALL MAINTAIN A SEPARATE ACCOUNT FOR EACH PARTIC-
   23  IPATING TRUSTEE.  HOWEVER,  MONEYS  OF  PARTICIPATING  TRUSTEES  MAY  BE
   24  COMMINGLED  FOR THE COMPTROLLER'S INVESTMENT PURPOSES, PROVIDED THAT THE
   25  MONEY OF EACH PARTICIPATING TRUSTEE SHALL BE SEPARATELY ACCOUNTED FOR.
   26    6. THE COMPTROLLER SHALL, WITHIN  HIS  OR  HER  DISCRETION,  ESTABLISH
   27  SUB-FUNDS  AND INVEST SUCH SUB-FUNDS SEPARATELY TO PROVIDE PARTICIPATING
   28  TRUSTEES WITH A NUMBER OF OPTIONS TO MEET VARIOUS INVESTMENT OBJECTIVES.
   29  SUCH OPTIONS SHALL REFLECT VARYING LEVELS OF RISK FOR  SUCH  INVESTMENT.
   30  INVESTMENT  EARNINGS  SHALL  BE PRORATED AMONG PARTICIPATING TRUSTEES IN
   31  EACH SUB-FUND IN PROPORTION TO THE AMOUNT OF INVESTMENTS HELD BY PARTIC-
   32  IPATING TRUSTEES.
   33    7. THE COMPTROLLER MAY HIRE SUCH OFFICERS AND EMPLOYEES  AND  CONTRACT
   34  WITH SUCH ADVISORS AND AGENTS AS THE COMPTROLLER DEEMS NECESSARY FOR THE
   35  MANAGEMENT  AND  INVESTMENT  OF  MONEYS  IN  THE  FUND. ANY OFFICERS AND
   36  EMPLOYEES EMPLOYED BY THE COMPTROLLER FOR THE MANAGEMENT AND  INVESTMENT
   37  OF  MONEYS  IN  THE  FUND  SHALL  BE OFFICERS AND EMPLOYEES OF THE COMP-
   38  TROLLER, PROVIDED, HOWEVER, THAT ANY COSTS ASSOCIATED WITH  THE  EMPLOY-
   39  MENT  OF SUCH OFFICERS AND EMPLOYEES AND ANY ADVISORS OR AGENTS SHALL BE
   40  CHARGED AGAINST THE FUND. SUCH CHARGES SHALL BE INCLUDED IN THE ADMINIS-
   41  TRATIVE FEE CHARGED TO PARTICIPATING TRUSTEES IN THE FUND.
   42    8. THE COMPTROLLER SHALL ENTER INTO AN AGREEMENT WITH EACH PARTICIPAT-
   43  ING TRUSTEE.  EACH SUCH AGREEMENT SHALL INCLUDE, BUT NOT BE LIMITED  TO,
   44  THE FOLLOWING TERMS:
   45    (A)  A  STATEMENT THAT THE COMPTROLLER SHALL BE UNDER NO OBLIGATION TO
   46  REVIEW OR VERIFY THE ESTIMATED COSTS OF BENEFITS TO BE FUNDED WITH MONEY
   47  CONTRIBUTED TO THE FUND;
   48    (B) A PROVISION THAT THE PARTICIPATING  TRUSTEE  SHALL  DETERMINE  THE
   49  AMOUNTS  OF  MONEY  TO  BE  CONTRIBUTED  TO  THE  FUND AND DESIGNATE THE
   50  SUB-FUNDS IN WHICH THE MONEYS SHALL BE INVESTED. THE  COMPTROLLER  SHALL
   51  ACCEPT  SUCH  AMOUNTS  AND  HIS  OR  HER ONLY RESPONSIBILITY SHALL BE TO
   52  INVEST THE MONEYS IN THE SUB-FUNDS DIRECTED BY THE PARTICIPATING TRUSTEE
   53  AND TO REPORT THE CONTRIBUTIONS, WITHDRAWALS, BALANCES AND EARNINGS,  TO
   54  THE  PARTICIPATING  TRUSTEE  ON  A  REGULAR BASIS TO BE SET FORTH IN THE
   55  AGREEMENT, BUT NO LESS FREQUENTLY THAN ANNUALLY;
       A. 5525                             3

    1    (C) A STATEMENT THAT IT SHALL BE THE RESPONSIBILITY OF THE PARTICIPAT-
    2  ING TRUSTEE TO DETERMINE COSTS ELIGIBLE TO BE FUNDED FROM MONEYS IN  THE
    3  FUND  AND THE COMPTROLLER'S ONLY OBLIGATION SHALL BE TO MAKE PAYMENTS ON
    4  THE DATES AND IN THE AMOUNTS REQUESTED BY THE PARTICIPATING TRUSTEE;
    5    (D)  A REQUIREMENT THAT THE PARTICIPATING TRUSTEE SHALL ANNUALLY, ON A
    6  DATE PROVIDED IN THE AGREEMENT, PROVIDE THE COMPTROLLER WITH A  SCHEDULE
    7  OR AMENDED SCHEDULE OF MONEYS EXPECTED TO BE CONTRIBUTED TO THE FUND AND
    8  WITHDRAWALS EXPECTED TO BE MADE FROM ITS ACCOUNT. SUCH SCHEDULE SHALL BE
    9  BINDING ON THE PARTICIPATING TRUSTEE;
   10    (E)  A  PROVISION  THAT  THE  MONEY  IN  THE FUND SHALL BE PAID TO THE
   11  PARTICIPATING TRUSTEE OR ITS DESIGNEE UPON REQUISITION  AS  PROVIDED  IN
   12  THE AGREEMENT;
   13    (F) A PROVISION FOR THE ASSESSMENT OF ADMINISTRATIVE COSTS, INVESTMENT
   14  FEES  AND OTHER CHARGES, INCLUDING ANY PENALTIES TO BE IMPOSED FOR EARLY
   15  OR EXCESSIVE WITHDRAWALS, AND FOR THE DEDUCTION OF SUCH FEES AND CHARGES
   16  FROM INVESTMENT EARNINGS;
   17    (G) A STATEMENT BY THE PARTICIPATING TRUSTEE RELATING TO ITS CONSIDER-
   18  ATION OF THE RISKS INVOLVED IN THE INVESTMENT SUB-FUNDS TO WHICH  IT  IS
   19  ALLOCATING  ITS  MONEYS  AND ITS UNDERSTANDING OF ITS RESPONSIBILITY FOR
   20  ANY LOSSES RESULTING FROM SUCH RISKS;
   21    (H) A STATEMENT THAT NEITHER THE COMPTROLLER NOR ANY OFFICER,  EMPLOY-
   22  EE,  AGENT OR ADVISOR OF THE COMPTROLLER SHALL BE LIABLE FOR ANY LOSS OR
   23  EXPENSE SUFFERED BY THE FUND  IN  THE  ABSENCE  OF  BAD  FAITH,  WILLFUL
   24  MISCONDUCT OR INTENTIONAL WRONGDOING; AND
   25    (I)  A  PROVISION  FOR  THE TERMINATION OF THE PARTICIPATING TRUSTEE'S
   26  INCLUSION IN THE FUND, INCLUDING  THE  DISPOSITION  AND/OR  TRANSFER  OF
   27  ACCUMULATED ASSETS.
   28    S  2.  The civil service law is amended by adding a new section 169 to
   29  read as follows:
   30    S 169. OTHER POST EMPLOYMENT BENEFITS ("OPEB") TRUST. 1. FOR  PURPOSES
   31  OF THIS SECTION:
   32    (A)  "PRESIDENT" SHALL MEAN THE PRESIDENT OF THE CIVIL SERVICE COMMIS-
   33  SION AS HEAD OF THE DEPARTMENT OF CIVIL SERVICE;
   34    (B) "STATE" SHALL MEAN THE STATE OF NEW YORK;
   35    (C) "FUND" SHALL MEAN THE OTHER POST  EMPLOYMENT  BENEFITS  INVESTMENT
   36  FUND CREATED BY SECTION NINETY-SEVEN-LLLL OF THE STATE FINANCE LAW; AND
   37    (D)  "OTHER  POST  EMPLOYMENT  BENEFITS"  SHALL  MEAN BENEFITS, EXCEPT
   38  PENSIONS OR OTHER BENEFITS FUNDED THROUGH A  PUBLIC  RETIREMENT  SYSTEM,
   39  PROVIDED  OR TO BE PROVIDED BY THE STATE AS COMPENSATION, WHETHER PURSU-
   40  ANT TO STATUTE, CONTRACT OR OTHER LAWFUL AUTHORITY, TO  ITS  CURRENT  OR
   41  FORMER  OFFICERS OR EMPLOYEES, OR THEIR FAMILIES OR BENEFICIARIES, AFTER
   42  SERVICE TO THE STATE HAS ENDED, INCLUDING, BUT NOT  LIMITED  TO,  HEALTH
   43  CARE  BENEFITS.  THE  TERM  "OTHER  POST  EMPLOYMENT BENEFITS" SHALL NOT
   44  INCLUDE CASH PAYMENTS FOR THE MONETARY VALUE OF SICK LEAVE, VACATION  OR
   45  OTHER  SIMILAR ACCRUALS, RETIREMENT INCENTIVE OR SEPARATION PAYMENTS, OR
   46  BENEFITS PROVIDED PURSUANT TO THE CONSOLIDATED OMNIBUS BUDGET  RECONCIL-
   47  IATION ACT OF 1985 (PUBLIC LAW 99-272), AS AMENDED.
   48    2.  THE  PRESIDENT MAY ESTABLISH A TRUST IN HIS OR HER CUSTODY FOR THE
   49  PURPOSE OF ACCUMULATING ASSETS TO FUND THE COST OF PROVIDING OTHER  POST
   50  EMPLOYMENT  BENEFITS.   CONTRIBUTIONS TO SUCH TRUST MAY BE MADE BY STATE
   51  APPROPRIATION.
   52    3. THE PRESIDENT IS HEREBY DECLARED TO BE THE  TRUSTEE  OF  THE  TRUST
   53  ESTABLISHED  PURSUANT TO THIS SECTION. AS TRUSTEE THE PRESIDENT SHALL BE
   54  RESPONSIBLE FOR THE OPERATION AND MANAGEMENT OF THE TRUST, INCLUDING THE
   55  INVESTMENT OF TRUST ASSETS, AND SHALL BE SUBJECT TO ALL THE  DUTIES  AND
       A. 5525                             4

    1  RESPONSIBILITIES IMPOSED BY LAW ON TRUSTEES, EXCEPT TO THE EXTENT INCON-
    2  SISTENT WITH THIS SECTION.
    3    4.  CONTRIBUTIONS  TO  THE  TRUST, AND ANY INTEREST OR OTHER INCOME OR
    4  EARNINGS ON CONTRIBUTIONS, SHALL BE IRREVOCABLE BEFORE  ALL  LIABILITIES
    5  OF  THE  STATE  GOVERNMENT  FOR OTHER POST EMPLOYMENT BENEFITS HAVE BEEN
    6  SATISFIED AND SHALL BE SOLELY DEDICATED TO, AND USED SOLELY FOR, PROVID-
    7  ING OTHER POST EMPLOYMENT BENEFITS AND PAYING APPROPRIATE AND REASONABLE
    8  EXPENSES OF ADMINISTERING THE TRUST.  NO  ASSETS,  INCOME,  EARNINGS  OR
    9  DISTRIBUTIONS OF THE TRUST SHALL BE SUBJECT TO ANY CLAIM OF CREDITORS OF
   10  THE  STATE, OR TO ASSIGNMENT OR EXECUTION, ATTACHMENT OR ANY OTHER CLAIM
   11  ENFORCEMENT PROCESS INITIATED BY OR ON BEHALF OF SUCH CREDITORS.  EXCEPT
   12  AS OTHERWISE PROVIDED IN SUBDIVISION NINE OF THIS SECTION, THE PRESIDENT
   13  SHALL  NOT BE RESPONSIBLE FOR THE ADEQUACY OF THE ASSETS OF THE TRUST TO
   14  MEET ANY OTHER POST EMPLOYMENT  BENEFIT.  THE  PRESIDENT  SHALL  NOT  BE
   15  RESPONSIBLE  FOR  TAKING ANY ACTION TO ENFORCE THE PAYMENT OF ANY APPRO-
   16  PRIATION INTO THE TRUST. THE TRUST  MAY  BE  TERMINATED  ONLY  WHEN  ALL
   17  LIABILITIES  OF  THE  STATE FOR OTHER POST EMPLOYMENT BENEFITS HAVE BEEN
   18  SATISFIED AND THERE IS NO PRESENT OR FUTURE  OBLIGATION,  CONTINGENT  OR
   19  OTHERWISE,  OF THE STATE TO PROVIDE SUCH OTHER POST EMPLOYMENT BENEFITS.
   20  UPON SUCH TERMINATION, ANY REMAINING  TRUST  ASSETS,  AFTER  ANY  PROPER
   21  EXPENSES OF THE TRUST HAVE BEEN PAID, SHALL REVERT TO THE STATE.
   22    5.  WITHDRAWALS  FROM  THE TRUST SHALL BE MADE FOR THE SOLE PURPOSE OF
   23  PROVIDING FUNDS FOR THE COSTS OF OTHER POST EMPLOYMENT BENEFITS CURRENT-
   24  LY DUE AND PAYABLE BY THE STATE.
   25    6. THE PRESIDENT MAY CONTRACT TO OBTAIN  SERVICES  NECESSARY  FOR  THE
   26  MANAGEMENT  AND  OPERATION  OF  THE  TRUST,  INCLUDING  THE PROFESSIONAL
   27  SERVICES NECESSARY TO CARRY OUT HIS OR HER RESPONSIBILITIES AS  TRUSTEE.
   28  CONTRACTS  FOR  SUCH SERVICES SHALL BE LET PURSUANT TO THE PROVISIONS OF
   29  THE STATE FINANCE LAW APPLICABLE TO STATE CONTRACTS.
   30    7. THE PRESIDENT SHALL MANAGE THE ASSETS OF THE TRUST IN A CAREFUL AND
   31  PRUDENT MANNER. THE PRESIDENT MAY INVEST ASSETS OF  THE  TRUST  ONLY  BY
   32  PAYMENT  TO THE FUND IN ACCORDANCE WITH SECTION NINETY-SEVEN-LLLL OF THE
   33  STATE FINANCE LAW.  ANY INTEREST OR OTHER INCOME OR  EARNINGS  RESULTING
   34  FROM  THE  INVESTMENT  OF ASSETS OF THE TRUST SHALL ACCRUE TO AND BECOME
   35  PART OF THE ASSETS OF THE TRUST.
   36    8. THE PRESIDENT SHALL DEVELOP, IN CONSULTATION WITH THE STATE  HEALTH
   37  INSURANCE  COUNCIL,  A WRITTEN INVESTMENT POLICY FOR SELECTING AMONG THE
   38  INVESTMENT OPTIONS OFFERED BY THE STATE COMPTROLLER PURSUANT TO  SECTION
   39  NINETY-SEVEN-LLLL  OF  THE STATE FINANCE LAW SO THAT THE COMPTROLLER MAY
   40  BE ABLE TO INVEST FUND MONIES IN ACCORDANCE  WITH  SUCH  POLICY.    SUCH
   41  POLICY SHALL INCLUDE A STATEMENT OF INVESTMENT OBJECTIVES ADDRESSING, IN
   42  THE FOLLOWING ORDER OF PRIORITY, THE ABILITY TO TIMELY MEET DISBURSEMENT
   43  REQUESTS  WITHOUT FORCED SALE OF ASSETS, SAFETY OF PRINCIPAL AND ATTAIN-
   44  MENT OF MARKET RATES OF RETURN.
   45    9. NEITHER THE STATE NOR THE PRESIDENT SHALL BE LIABLE FOR ANY LOSS OR
   46  EXPENSE SUFFERED BY THE TRUST IN  THE  ABSENCE  OF  BAD  FAITH,  WILLFUL
   47  MISCONDUCT  OR INTENTIONAL WRONGDOING. THE PRESIDENT SHALL BE CONSIDERED
   48  TO BE ACTING AS AN OFFICER OF THE STATE FOR PURPOSES OF  SECTION  SEVEN-
   49  TEEN  OF  THE  PUBLIC OFFICERS LAW, PROVIDED, HOWEVER, THAT THE COSTS OF
   50  ANY DEFENSE OR INDEMNIFICATION OF THE PRESIDENT ARISING FROM  THE  EXER-
   51  CISE OF THE FUNCTIONS OF TRUSTEE SHALL BE PAYABLE FROM THE ASSETS OF THE
   52  TRUST.
   53    10.  THE  PRESIDENT  SHALL  PREPARE  OR CAUSE TO BE PREPARED AN ANNUAL
   54  FINANCIAL REPORT OF ASSETS, LIABILITIES, REVENUES AND  EXPENSES  OF  THE
   55  TRUST  IN  ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. THE
   56  PRESIDENT SHALL CAUSE THE ACTIVITIES UNDERTAKEN IN CONNECTION  WITH  THE
       A. 5525                             5

    1  TRUST, INCLUDING THE ANNUAL FINANCIAL REPORT, TO BE AUDITED ANNUALLY, IN
    2  ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS, BY AN INDEPENDENT
    3  CERTIFIED  PUBLIC  ACCOUNTANT  ENGAGED  IN  A MANNER CONSISTENT WITH THE
    4  APPLICABLE  PROVISIONS  OF  THE  STATE  FINANCE  LAW. THE AUDIT SHALL BE
    5  COMPLETED WITHIN ONE HUNDRED TWENTY DAYS FROM THE CLOSE OF  THE  STATE'S
    6  FISCAL  YEAR.  A  COPY  OF THE ANNUAL FINANCIAL REPORT AND THE REPORT OF
    7  SUCH AUDIT SHALL BE PROVIDED TO THE GOVERNOR, THE STATE COMPTROLLER  AND
    8  THE CHAIRS OF THE LEGISLATIVE FISCAL COMMITTEES.
    9    11.  NOTHING  CONTAINED  IN  THIS  SECTION  SHALL  BE  INTERPRETED  OR
   10  CONSTRUED TO:
   11    (A) CREATE ANY OBLIGATION IN, IMPOSE ANY OBLIGATION ON, OR  ALTER  ANY
   12  OBLIGATION OF THE STATE TO PROVIDE OTHER POST EMPLOYMENT BENEFITS;
   13    (B)  LIMIT  OR RESTRICT THE AUTHORITY OF THE STATE TO MODIFY OR ELIMI-
   14  NATE OTHER POST EMPLOYMENT BENEFITS;
   15    (C) ASSURE OR DENY OTHER POST EMPLOYMENT BENEFITS; OR
   16    (D) REQUIRE THE STATE TO FUND ITS LIABILITY FOR OTHER POST  EMPLOYMENT
   17  BENEFITS.
   18    S  3. The general municipal law is amended by adding a new section 6-t
   19  to read as follows:
   20    S 6-T. OTHER POST EMPLOYMENT BENEFITS (OPEB) TRUST. 1. FOR PURPOSES OF
   21  THIS SECTION:
   22    (A) "LOCAL GOVERNMENT" SHALL  MEAN  A  MUNICIPAL  CORPORATION,  SCHOOL
   23  DISTRICT,  BOARD  OF  COOPERATIVE  EDUCATIONAL SERVICES, DISTRICT CORPO-
   24  RATION, SPECIAL IMPROVEMENT DISTRICT GOVERNED BY  A  SEPARATE  BOARD  OF
   25  COMMISSIONERS,  COMMUNITY  COLLEGE OR PUBLIC LIBRARY THAT PROVIDES OTHER
   26  POST EMPLOYMENT BENEFITS.
   27    (B) "OTHER POST  EMPLOYMENT  BENEFITS"  SHALL  MEAN  BENEFITS,  EXCEPT
   28  PENSIONS  OR  OTHER  BENEFITS FUNDED THROUGH A PUBLIC RETIREMENT SYSTEM,
   29  PROVIDED OR TO BE PROVIDED AS  COMPENSATION  BY  THE  LOCAL  GOVERNMENT,
   30  WHETHER  PURSUANT  TO  STATE STATUTE, LOCAL ENACTMENT, CONTRACT OR OTHER
   31  LAWFUL AUTHORITY, TO ITS FORMER OR CURRENT  OFFICERS  OR  EMPLOYEES,  OR
   32  THEIR  FAMILIES  OR BENEFICIARIES, AFTER SERVICE TO THE LOCAL GOVERNMENT
   33  HAS ENDED, INCLUDING, BUT NOT LIMITED TO, HEALTH CARE BENEFITS. THE TERM
   34  "OTHER POST EMPLOYMENT BENEFITS" SHALL NOT INCLUDE CASH PAYMENTS FOR THE
   35  MONETARY VALUE OF  SICK  LEAVE,  VACATION  OR  OTHER  SIMILAR  ACCRUALS,
   36  RETIREMENT INCENTIVE OR SEPARATION PAYMENTS, OR BENEFITS PROVIDED PURSU-
   37  ANT  TO  THE  CONSOLIDATED  OMNIBUS  BUDGET  RECONCILIATION  ACT OF 1985
   38  (PUBLIC LAW 99-272), AS AMENDED.
   39    2. THE GOVERNING BODY OF A LOCAL GOVERNMENT, BY RESOLUTION, MAY ESTAB-
   40  LISH A TRUST IN THE CUSTODY OF THE CHIEF FISCAL  OFFICER  OF  THE  LOCAL
   41  GOVERNMENT,  FOR  THE PURPOSE OF ACCUMULATING ASSETS TO FUND THE COST TO
   42  THE LOCAL  GOVERNMENT  OF  PROVIDING  OTHER  POST  EMPLOYMENT  BENEFITS.
   43  CONTRIBUTIONS TO SUCH TRUST MAY BE MADE BY THE LOCAL GOVERNMENT BY BUDG-
   44  ETARY  APPROPRIATION  OR  TRANSFER  IN ACCORDANCE WITH THE PROVISIONS OF
   45  SUBDIVISION NINE OF SECTION SIX-P OF THIS ARTICLE.
   46    3. THE GOVERNING BOARD OF THE LOCAL GOVERNMENT IS HEREBY  DECLARED  TO
   47  BE  THE  TRUSTEE  OF  ANY  TRUST  ESTABLISHED  PURSUANT TO THIS SECTION,
   48  PROVIDED, HOWEVER, THAT THE GOVERNING BOARD, BY RESOLUTION,  MAY  DESIG-
   49  NATE  THE  CHIEF  FISCAL  OFFICER  OF  THE  LOCAL GOVERNMENT AS TRUSTEE,
   50  SUBJECT TO ACCEPTANCE OF SUCH POSITION BY THE CHIEF FISCAL OFFICER  AND,
   51  IN THE CASE OF A CITY WITH A POPULATION OF ONE MILLION OR MORE, THE CITY
   52  COMPTROLLER  SHALL  BE THE TRUSTEE. THE TRUSTEE SHALL BE RESPONSIBLE FOR
   53  THE OPERATION AND MANAGEMENT OF THE TRUST,  INCLUDING  THE  DEPOSIT  AND
   54  SECURING  OF  TRUST ASSETS IN THE SAME MANNER AS PROVIDED IN SECTION TEN
   55  OF THIS ARTICLE, AND THE  INVESTMENT  OF  TRUST  ASSETS,  AND  SHALL  BE
   56  SUBJECT  TO  ALL THE DUTIES AND RESPONSIBILITIES IMPOSED BY LAW ON TRUS-
       A. 5525                             6

    1  TEES, EXCEPT TO THE EXTENT INCONSISTENT WITH THIS SECTION.  THE  TRUSTEE
    2  SHALL  EXECUTE AND FILE WITH THE CLERK OF THE LOCAL GOVERNMENT AN APPRO-
    3  PRIATE UNDERTAKING, SEPARATE FROM AND IN ADDITION TO ANY OTHER UNDERTAK-
    4  ING  REQUIRED  OF THE TRUSTEE IN ANY OTHER CAPACITY, IN AN AMOUNT SUFFI-
    5  CIENT TO COVER TRUST ASSETS. IN  LIEU  THEREOF,  SUCH  COVERAGE  MAY  BE
    6  INCLUDED  IN  A BLANKET UNDERTAKING IN ACCORDANCE WITH SECTION ELEVEN OF
    7  THE PUBLIC OFFICERS LAW.  THE COST OF THE UNDERTAKING SHALL  BE  CONSID-
    8  ERED TO BE A REASONABLE EXPENSE OF ADMINISTERING THE TRUST.
    9    4.  CONTRIBUTIONS  TO  THE  TRUST, AND ANY INTEREST OR OTHER INCOME OR
   10  EARNINGS ON CONTRIBUTIONS, SHALL BE IRREVOCABLE BEFORE  ALL  LIABILITIES
   11  OF  THE  LOCAL  GOVERNMENT  FOR OTHER POST EMPLOYMENT BENEFITS HAVE BEEN
   12  SATISFIED, AND SHALL BE  SOLELY  DEDICATED  TO,  AND  USED  SOLELY  FOR,
   13  PROVIDING  OTHER  POST  EMPLOYMENT  BENEFITS  AND PAYING APPROPRIATE AND
   14  REASONABLE EXPENSES OF ADMINISTERING THE TRUST. NO ASSETS, INCOME, EARN-
   15  INGS OR DISTRIBUTIONS OF THE TRUST SHALL BE  SUBJECT  TO  ANY  CLAIM  OF
   16  CREDITORS OF THE LOCAL GOVERNMENT OR OF ANY PERSON OR ENTITY ADMINISTER-
   17  ING  A  PLAN  FOR  THE PROVISION OF OTHER POST EMPLOYMENT BENEFITS OR TO
   18  ASSIGNMENT OR EXECUTION, ATTACHMENT OR ANY OTHER CLAIM ENFORCEMENT PROC-
   19  ESS INITIATED BY OR ON BEHALF OF SUCH CREDITORS.   EXCEPT  AS  OTHERWISE
   20  PROVIDED  IN SUBDIVISION SEVEN OF THIS SECTION, THE TRUSTEE SHALL NOT BE
   21  RESPONSIBLE FOR THE ADEQUACY OF THE ASSETS OF  THE  TRUST  TO  MEET  ANY
   22  OTHER  POST EMPLOYMENT BENEFIT. THE TRUSTEE SHALL NOT BE RESPONSIBLE FOR
   23  TAKING ANY ACTION TO ENFORCE THE PAYMENT OF ANY APPROPRIATION  INTO  THE
   24  TRUST.  THE  ASSETS OF THE TRUST, INCLUDING ALL INTEREST OR OTHER INCOME
   25  OR EARNINGS ON CONTRIBUTIONS TO THE TRUST,  SHALL  BE  EXEMPT  FROM  ALL
   26  STATE  AND  LOCAL  TAXES.    THE  TRUST  MAY BE TERMINATED ONLY WHEN ALL
   27  LIABILITIES OF THE LOCAL GOVERNMENT FOR OTHER POST  EMPLOYMENT  BENEFITS
   28  HAVE  BEEN  SATISFIED  AND  THERE  IS  NO  PRESENT OR FUTURE OBLIGATION,
   29  CONTINGENT OR OTHERWISE, OF THE LOCAL GOVERNMENT TO PROVIDE  SUCH  OTHER
   30  POST  EMPLOYMENT  BENEFITS.  UPON  SUCH TERMINATION, ANY REMAINING TRUST
   31  ASSETS, AFTER ANY PROPER EXPENSES OF THE TRUST  HAVE  BEEN  PAID,  SHALL
   32  REVERT  TO  THE  LOCAL  GOVERNMENT  TO  BE PAID INTO ONE OR MORE RESERVE
   33  FUNDS, DULY ESTABLISHED PURSUANT TO THIS ARTICLE OR OTHER STATE STATUTE,
   34  IN SUCH AMOUNTS AS DETERMINED  BY  THE  GOVERNING  BOARD  OF  THE  LOCAL
   35  GOVERNMENT.
   36    5. DISBURSEMENTS FROM THE TRUST SHALL BE MADE ONLY UPON A DULY AUTHOR-
   37  IZED  REQUEST PURSUANT TO RESOLUTION OF THE GOVERNING BOARD OF THE LOCAL
   38  GOVERNMENT STATING THE AMOUNT OF THE REQUESTED DISBURSEMENT  AND  DETER-
   39  MINING  THAT THE DISBURSEMENT IS FOR THE SOLE PURPOSE OF PROVIDING FUNDS
   40  FOR THE COSTS OF OTHER POST EMPLOYMENT BENEFITS CURRENTLY DUE AND  PAYA-
   41  BLE BY THE LOCAL GOVERNMENT.
   42    6.  THE TRUSTEE SHALL INVEST THE ASSETS OF THE TRUST IN THE OTHER POST
   43  EMPLOYMENT BENEFITS INVESTMENT FUND IN THE CUSTODY OF  THE  STATE  COMP-
   44  TROLLER,  IN  ACCORDANCE  WITH  SECTION  NINETY-SEVEN-LLLL  OF THE STATE
   45  FINANCE LAW. ANY INTEREST OR OTHER INCOME OR EARNINGS RESULTING FROM THE
   46  INVESTMENT OF ASSETS OF THE TRUST SHALL ACCRUE TO AND BECOME PART OF THE
   47  ASSETS OF THE TRUST. THE TRUSTEE  SHALL  DEVELOP  A  WRITTEN  INVESTMENT
   48  POLICY  FOR  SELECTING AMONG THE INVESTMENT OPTIONS OFFERED BY THE STATE
   49  COMPTROLLER PURSUANT TO SECTION NINETY-SEVEN-LLLL OF THE  STATE  FINANCE
   50  LAW  WHICH, AT A MINIMUM, SHALL INCLUDE A STATEMENT OF INVESTMENT OBJEC-
   51  TIVES ADDRESSING, IN THE FOLLOWING ORDER OF  PRIORITY,  COMPLIANCE  WITH
   52  ALL LEGAL REQUIREMENTS, THE ABILITY TO TIMELY MEET DISBURSEMENT REQUESTS
   53  WITHOUT  FORCED  SALE  OF  ASSETS, SAFETY OF PRINCIPAL AND ATTAINMENT OF
   54  MARKET RATES OF RETURN.
   55    7. NEITHER THE LOCAL GOVERNMENT NOR THE TRUSTEE SHALL  BE  LIABLE  FOR
   56  ANY  LOSS  OR EXPENSE SUFFERED BY THE TRUST IN THE ABSENCE OF BAD FAITH,
       A. 5525                             7

    1  WILLFUL MISCONDUCT OR  INTENTIONAL  WRONGDOING.  THE  TRUSTEE  SHALL  BE
    2  CONSIDERED  TO  BE  AN  EMPLOYEE OF THE LOCAL GOVERNMENT FOR PURPOSES OF
    3  SECTION EIGHTEEN OF THE PUBLIC OFFICERS LAW, PROVIDED, HOWEVER, THAT THE
    4  COSTS  OF ANY DEFENSE OR INDEMNIFICATION OF THE TRUSTEE ARISING FROM THE
    5  EXERCISE OF THE FUNCTIONS OF TRUSTEE SHALL BE PAYABLE FROM THE ASSETS OF
    6  THE TRUST.
    7    8. THE TRUSTEE SHALL PREPARE OR CAUSE TO BE PREPARED AN ANNUAL  FINAN-
    8  CIAL  REPORT  OF ASSETS, LIABILITIES, REVENUES AND EXPENSES OF THE TRUST
    9  IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. THE TRUSTEE
   10  SHALL CAUSE THE ACTIVITIES UNDERTAKEN  IN  CONNECTION  WITH  THE  TRUST,
   11  INCLUDING  THE  ANNUAL  FINANCIAL REPORT, TO BE AUDITED ANNUALLY, EITHER
   12  SEPARATELY OR AS PART OF THE OVERALL AUDIT OF THE REPORTING  ENTITY,  IN
   13  ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS, BY AN INDEPENDENT
   14  CERTIFIED  PUBLIC  ACCOUNTANT  ENGAGED  IN  A MANNER CONSISTENT WITH THE
   15  PROCUREMENT POLICIES AND PROCEDURES  ADOPTED  BY  THE  LOCAL  GOVERNMENT
   16  PURSUANT  TO  SECTION  ONE  HUNDRED  FOUR-B OF THIS CHAPTER AND SHALL BE
   17  SUBJECT TO A REQUEST FOR PROPOSALS PROCESS AT LEAST  EVERY  FIVE  YEARS.
   18  THE  AUDIT  SHALL  BE  COMPLETED WITHIN ONE HUNDRED TWENTY DAYS FROM THE
   19  CLOSE OF THE FISCAL YEAR OF THE LOCAL GOVERNMENT. A COPY OF  THE  ANNUAL
   20  FINANCIAL  REPORT  AND THE REPORT OF SUCH AUDIT SHALL BE PROVIDED TO THE
   21  STATE COMPTROLLER, THE TRUSTEE AND THE  GOVERNING  BOARD  OF  THE  LOCAL
   22  GOVERNMENT  AND SHALL BE PUBLICLY AVAILABLE AND POSTED ON THE WEBSITE OF
   23  THE LOCAL GOVERNMENT, IF SUCH A WEBSITE IS MAINTAINED.
   24    9. THE STATE COMPTROLLER MAY MAKE, AMEND AND  REPEAL  SUCH  RULES  AND
   25  REGULATIONS AS THE STATE COMPTROLLER MAY DEEM APPROPRIATE FOR THE PROPER
   26  OPERATION AND MANAGEMENT OF TRUSTS ESTABLISHED PURSUANT TO THIS SECTION.
   27    10.  NOTHING  CONTAINED  IN  THIS  SECTION  SHALL  BE  INTERPRETED  OR
   28  CONSTRUED TO:
   29    (A) CREATE ANY OBLIGATION IN, IMPOSE ANY OBLIGATION ON, OR  ALTER  ANY
   30  OBLIGATION  OF  ANY  LOCAL  GOVERNMENT  TO PROVIDE OTHER POST EMPLOYMENT
   31  BENEFITS;
   32    (B) LIMIT OR RESTRICT THE AUTHORITY OF A LOCAL GOVERNMENT TO MODIFY OR
   33  ELIMINATE OTHER POST EMPLOYMENT BENEFITS;
   34    (C) ASSURE OR DENY OTHER POST EMPLOYMENT BENEFITS; OR
   35    (D) REQUIRE ANY LOCAL GOVERNMENT TO FUND ITS LIABILITY FOR OTHER  POST
   36  EMPLOYMENT BENEFITS.
   37    S  4.  Subdivision  9  of section 6-p of the general municipal law, as
   38  added by chapter 518 of the laws of 1996, is amended to read as follows:
   39    9. If, after the establishment of such fund, the  municipality  deter-
   40  mines  that  such fund is no longer needed, the moneys remaining in such
   41  fund may be transferred to any other reserve  fund  OR  ANY  OTHER  POST
   42  EMPLOYMENT  BENEFITS  TRUST  of  the municipal corporation authorized by
   43  this chapter that is comprised of moneys which were raised on  the  same
   44  tax  base  as  the  moneys  in  the  reserve fund established under this
   45  section or TO A RESERVE FUND ESTABLISHED PURSUANT TO section  thirty-six
   46  hundred  fifty-one  of  the  education  law, only to the extent that the
   47  moneys in this fund shall exceed the sum sufficient to pay  all  liabil-
   48  ities  incurred  or  accrued  against it. Prior to the discontinuance of
   49  such fund, the fiscal and legal officers of such  municipal  corporation
   50  shall  certify  to  the  governing  board thereof the amount that may be
   51  necessary to retain in such fund to satisfy all liabilities incurred  or
   52  accrued  against  it  and  such  sum  shall  be retained in the fund for
   53  payment of such amounts or until later certified that such funds are  no
   54  longer needed.
   55    S  5.  The  provisions of section 6-t of the general municipal law, as
   56  added by section three of this act, shall not affect the validity of the
       A. 5525                             8

    1  establishment or implementation of the  New  York  City  Retiree  Health
    2  Benefit  Trust,  established  June  12,  2006 by the City of New York as
    3  Grantor, and neither the operation nor any amendment of such trust shall
    4  be  subject to the provisions of such section. The establishment of such
    5  trust and its operation in accordance with its terms is hereby  ratified
    6  and approved.
    7    S 6. This act shall take effect immediately.
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