Establishes a multi-agency study group to conduct a study and to make recommendations regarding the optimal pension and retirement plan alternatives which could be made available to not-for-profit human services corporations in this state.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6839A
SPONSOR: Gunther TITLE OF BILL:
An act in relation to directing the commissioner of taxation and
finance, and certain other agencies and offices, to conduct a study and
to make recommendations regarding the optimal pension and retirement
plan alternatives which could be made available to not-for-profit human
services corporations in this state
PURPOSE OR GENERAL IDEA OF BILL:
To establish a study group to evaluate and make recommendations regard-
ing the optimal pension and retirement plan for employees of not-for-
profit human service providers
SUMMARY OF PROVISIONS:
Section one of the bill requires the Commissioner of Taxation and
Finance, the State Treasurer, the Superintendent of Financial Services,
and the Comptroller to jointly conduct a study and make recommendations
regarding the optimal pension and retirement plan alternatives that may
be made available to not-for-profit human services corporations in this
state, that are intended to significantly improve recruitment and
retention of employees.
Section two of the bill requires the agencies to consult with statewide
associations representing human services providers and organizations,
and may consult with any other organization, government entity, or
person in the development of the report required under section three of
this act.
Section three of the bill requires the agencies to submit to the Gover-
nor, Temporary President of the Senate and the Speaker of the Assembly a
report containing information and recommendations, including but not
limited to a review of the various types of pension and retirement plan
options in New York state and throughout the country, a review of the
various rights, responsibilities, protections and advantages of plans
that are governed by federal laws and guidelines; a review of the vari-
ous existing pension and retirement plans used by not-for-profit corpo-
rations in New York state and across the country; a review of the issues
and considerations in determining the optimal pension and retirement
plan options, a review of laws and regulations used by other states and
the federal government, to regulate the marketplace; consideration of
ways in which payment of certain pension or retirement benefits can be
guaranteed if the plan is terminated without sufficient funds to pay
vested benefits, other relevant fiscal and policy considerations includ-
ing the impact of inflation and cost of living adjustments on pension or
retirement plans; and final recommendations regarding the optimal
pension or retirement plans that may exist or be made available to not-
for-profit human services corporations in New York state, and that are
intended to significantly improve recruitment and retention of employ-
ees, as well as actions the state may take to develop, fund, implement,
and sustain such pension or retirement plan options for such not-for-
profit corporations.
Section four of the bill requires the agencies to deliver the report
required under section three of this act to the Governor and the Legis-
lature, and shall post on their public websites, no later than November
15, 2024.
Section five of the bill provides the effective date.
JUSTIFICATION:
Employees of not-for-profit human service providers, provide essential,
lifesaving and often challenging services to poor, sick and elderly
persons with a host of behavioral health, housing, family, long term
care and other needs. These challenges have been significantly exacer-
bated in recent years by variety of factors, including the COVID pandem-
ic. However, these providers have not received regular cost of living
adjustments for most of the past two decades, and as a result, they
often have not been able to provide regular salary increases nor compet-
itive benefit packages for their caring and dedicated employees. There-
fore, these essential providers are at a significant disadvantage when
competing for employees with government employers, hospitals and hospi-
tal systems, insurers, etc., all of which have competitive retirement
plans.
As a result, recruitment and retention of sufficient, competent employ-
ees can be difficult for many not-for-profit human service providers in
this state. While many good people desire to work in this field, they
also need sufficient salaries and benefits to support their families
both now and, in the future, including their retirement years. Clearly,
competitive employee benefits packages with reasonable retirement bene-
fits will help to recruit and retain vitally needed employees, and help
to keep them productive, happy and loyal.
Therefore, this bill would require relevant state agencies with fiscal
expertise in consultation with other impacted state agencies, to coordi-
nate their efforts to study the landscape of pension and retirement
options, and to make recommendations for future actions the state may
take to provide optimal retirement plan options for employees of not-
for-profit human service corporations in the state.
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS:
TBD
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
6839--A
2023-2024 Regular Sessions
IN ASSEMBLY
May 8, 2023
___________
Introduced by M. of A. GUNTHER -- read once and referred to the Commit-
tee on Governmental Employees -- recommitted to the Committee on
Governmental Employees in accordance with Assembly Rule 3, sec. 2 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT in relation to directing the commissioner of taxation and
finance, and certain other agencies and offices, to conduct a study
and to make recommendations regarding the optimal pension and retire-
ment plan alternatives which could be made available to not-for-profit
human services corporations in this state
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The commissioner of taxation and finance, the state treas-
2 urer, the superintendent of financial services, and the comptroller
3 shall form a study group to jointly conduct a study and make recommenda-
4 tions regarding the optimal pension and retirement plan alternatives
5 that may be made available to not-for-profit human services corporations
6 in this state, that are intended to significantly improve recruitment
7 and retention of employees. The state treasurer shall serve as the
8 chairperson of such study group. In conducting the study and develop-
9 ment of recommendations, the study group shall consult with the commis-
10 sioner of mental health, the commissioner of the office of addiction
11 services and supports, the commissioner of the office for persons with
12 developmental disabilities, the commissioner of children and family
13 services, the commissioner of the office of temporary disability
14 services, and the commissioner of health. The study shall at a minimum
15 provide the governor and the legislature with information and recommen-
16 dations regarding existing or new pension and retirement options for the
17 benefit of employees of not-for-profit human services corporations doing
18 business in New York state.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10938-02-4
A. 6839--A 2
1 § 2. The study group shall consult with statewide associations repres-
2 enting human services providers and organizations, and may consult with
3 any other organization, government entity, or person in the development
4 of the report required under section three of this act.
5 § 3. The study group shall submit to the governor, the temporary pres-
6 ident of the senate and the speaker of the assembly a report containing
7 information and recommendations, including but not limited to the
8 following:
9 a. a review of the various types of pension and retirement plan
10 options in New York state and throughout the country, including but not
11 limited to defined benefit plans, such as cash balance and benefit
12 equalization plans, single employer plans, multiple employer plans,
13 defined contribution plans, internal revenue code 401(a), 401(k), and
14 403(b) plans, simplified employee pension plans, and other possible
15 options;
16 b. a review of the various rights, responsibilities, protections and
17 advantages of plans that are governed by federal laws and guidelines
18 under the Employee Retirement Income Security Act of 1974 (ERISA) and
19 applicable provisions of the internal revenue code;
20 c. a review of the various existing pension and retirement plans used
21 by not-for-profit corporations in New York state and across the country;
22 d. a review of the following issues and considerations in determining
23 the optimal pension and retirement plan options, including: employer
24 contributions, matching contributions, employee contributions, manage-
25 ment of investments, benefit payment options and amounts of benefits
26 paid, when benefits are vested or guaranteed, eligible participants,
27 automatic enrollment, plan benefit reduction possibilities, notice
28 requirements including notice to participants of underfunded plans or
29 other critical information, survivor or beneficiary benefits upon death
30 of participant, participant options if employment is terminated prior to
31 retirement, responsibilities of plan fiduciaries, tax relief benefits,
32 taxability of payment benefits, early distributions and penalties, and
33 the risks and benefits of relevant pension and retirement plan options;
34 e. a review of laws and regulations used by other states and the
35 federal government to regulate the marketplace;
36 f. consideration of ways in which payment of certain pension or
37 retirement benefits can be guaranteed if the plan is terminated without
38 sufficient funds to pay vested benefits, including through the federal
39 Pension Benefit Guarantee Corporation;
40 g. other relevant fiscal and policy considerations, including the
41 impact of inflation and cost of living adjustments on pension or retire-
42 ment plans; and
43 h. final recommendations regarding the optimal pension or retirement
44 plans that may exist or be made available to not-for-profit human
45 services corporations in New York state and that are intended to signif-
46 icantly improve recruitment and retention of employees, as well as
47 actions the state may take to develop, fund, implement, and sustain such
48 pension or retirement plan options for such not-for-profit corporations.
49 § 4. The study group shall deliver the report required under section
50 three of this act to the governor and the legislature, and the member
51 agencies and offices of such study group shall post such report on their
52 public websites, no later than November 15, 2024.
53 § 5. This act shall take effect immediately.
