Provides that actuaries of the NYS public retirement systems shall prepare fiscal notes pursuant to requirements of the legislative law and establishes the actuarial integrity oversight board.
STATE OF NEW YORK
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S. 5418--A A. 8059--A
2009-2010 Regular Sessions
SENATE - ASSEMBLY
May 1, 2009
___________
IN SENATE -- Introduced by Sen. SAVINO -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Civil Service
and Pensions -- committee discharged, bill amended, ordered reprinted
as amended and recommitted to said committee
IN ASSEMBLY -- Introduced by M. of A. ABBATE -- read once and referred
to the Committee on Governmental Employees -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend the retirement and social security law, in relation to
the preparation of legislative fiscal notes and providing for the
repeal of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative findings. The legislature finds that it is
2 critically important to ensure that all fiscal notes required pursuant
3 to section 50 of the legislative law reflect the most accurate estimate
4 of the total cost of any proposed change to a retirement system or plan
5 of the state of New York or any of its political subdivisions. In order
6 to accomplish this public purpose, the legislature hereby finds that all
7 fiscal notes required pursuant to section 50 of the legislative law
8 should be prepared and submitted by the chief actuary of the affected
9 retirement system or plan, if applicable, in as timely a manner as prac-
10 ticable. The legislature further finds that all fiscal notes generated
11 pursuant to such section 50 shall represent the best faith estimate of
12 the chief actuary of the affected retirement system or plan, if applica-
13 ble, and that such estimate shall be generated in accordance with the
14 generally-accepted actuarial standards and practices in effect at the
15 time for such retirement system or plan.
16 § 2. The retirement and social security law is amended by adding two
17 new sections 809 and 810 to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11714-02-9
S. 5418--A 2 A. 8059--A
1 § 809. Preparation of legislative fiscal notes. a. 1. Notwithstanding
2 any other provision of any general, special, or local law, charter,
3 administrative code or rule or regulation to the contrary, the actuary
4 of each public retirement system, as defined in subdivision a of section
5 eight hundred of this article, is responsible for fiscal notes on legis-
6 lation affecting the public retirement system for which he or she
7 provides actuarial services in accordance with section fifty of the
8 legislative law. Each fiscal note shall be prepared by applying general-
9 ly accepted actuarial methodologies to estimate the financial impact of
10 legislation submitted for actuarial review. In the event legislation
11 contains provisions applicable to more than one public retirement
12 system, a fiscal note assessing the financial impact on each system
13 shall be prepared.
14 2. Legislative fiscal notes required pursuant to section fifty of the
15 legislative law shall be requested in writing. Such written request
16 shall accompany a draft of the proposed legislation and memorandum in
17 support and shall clearly identify the name of the individual or entity
18 requesting such fiscal note and the date that such request was made.
19 3. Fiscal notes requested pursuant to paragraph two of this subdivi-
20 sion shall be provided to the requesting individual or entity in a
21 reasonable and timely manner. Upon completion of the fiscal note, the
22 actuary shall not circulate the fiscal note publicly prior to the
23 receipt of the fiscal note by the original requester. All fiscal notes
24 shall be subject to all freedom of information laws in the state of New
25 York.
26 b. 1. The actuary of the New York state and local employees' retire-
27 ment system and the New York state and local police and fire retirement
28 system may be responsible for preparing legislative fiscal notes as
29 provided in subdivision a of this section which may be funded through
30 the portion of the administrative budget of such system attributable to
31 the powers and duties of the actuary as provided by law or otherwise
32 required by the comptroller.
33 2. The actuary of the New York state teachers' retirement system may
34 be responsible for preparing legislative fiscal notes as provided in
35 subdivision a of this section which may be funded through the portion of
36 the administrative budget of such system attributable to the powers and
37 duties of the actuary as provided by law or otherwise required by the
38 board of trustees of such system.
39 c. The actuary of the five actuarially funded retirement systems of
40 the city of New York shall, in addition to the powers delineated in
41 subdivision a of this section, fulfill such powers and duties as
42 provided in the administrative code of the city of New York, the educa-
43 tion law and all other applicable sections of law, and perform all other
44 duties as required by the boards of trustees of the five actuarially
45 funded retirement systems in the city of New York.
46 § 810. Actuarial oversight board. a. There is hereby established the
47 actuarial oversight board ("board") as an independent entity within the
48 guise of the five public retirement systems of the city of New York.
49 b. The board shall consist of seven members as follows: 1. one
50 appointment by the board of trustees of the New York city employees'
51 retirement system who currently holds a position that is elected by a
52 portion of the membership of said retirement system; 2. one appointment
53 by the board of trustees of the New York city teachers' retirement
54 system who currently holds a position that is elected by a portion of
55 the membership of said retirement system; 3. one appointment by the
56 board of trustees of the New York city board of education retirement
S. 5418--A 3 A. 8059--A
1 system who currently holds a position that is elected by a portion of
2 the membership of said retirement system; 4. one appointment by the
3 board of trustees of the New York city police pension fund who currently
4 holds a position that is elected by a portion of the membership of said
5 retirement system; 5. one appointment by the board of trustees of the
6 New York city fire department pension fund who currently holds a posi-
7 tion that is elected by a portion of the membership of said retirement
8 system; 6. the comptroller of the city of New York or his or her desig-
9 nee; and 7. the mayor of the city of New York or his or her designee.
10 Each member of the board shall serve for a term of two years. All
11 members shall continue in office until their successors have been
12 appointed. The members shall serve without compensation for their
13 services as members, but shall be entitled to reimbursement for actual
14 and necessary expenses incurred in the performance of their duties. The
15 state and city of New York shall hold harmless and indemnify members of
16 the board pursuant to sections seventeen and eighteen of the public
17 officers law against any claim, demand, suit or judgment arising by
18 reason of any act or omission by such member occurring in the discharge
19 of his or her duties and within the scope of his or her service on
20 behalf of the board. The board and its members shall be subject to the
21 provisions of sections seventy-three and seventy-four of the public
22 officers law and chapter sixty-eight of the charter of the city of New
23 York. Notwithstanding any other provision of any general, special or
24 local law, charter, administrative code or rule or regulation to the
25 contrary, no officer or employee of the state or civil division thereof
26 shall be deemed to have forfeited or shall forfeit his or her office or
27 employment by reason of his or her acceptance of membership on the board
28 created by this subdivision.
29 c. The chairperson of the board shall be the member of the board
30 appointed by the retirement system having the largest percentage of
31 assets of the five actuarially funded retirement systems of the city of
32 New York as of the end of the preceding fiscal year as determined by the
33 comptroller of the city of New York.
34 d. The board shall meet no less than once each quarter in a calendar
35 year. Meetings of the board shall comply with the open meetings law
36 pursuant to article seven of the public officers law. The actuary of the
37 five actuarially funded retirement systems in the city of New York shall
38 assign to the board a sufficient number of clerical and other assistants
39 to permit the board to efficiently exercise its powers and to perform
40 its duties.
41 e. The board is empowered to oversee the operations of the actuary of
42 the five actuarially funded retirement systems of the city of New York
43 including auditing and monitoring the implementation of the annual budg-
44 et and all administrative operations. The board shall establish a
45 reasonable timeframe for the preparation of fiscal notes affecting any
46 of the five actuarially funded retirement systems in the city of New
47 York.
48 f. The actuary of the five actuarially funded retirement systems of
49 the city of New York shall submit to the board a proposed annual admin-
50 istrative budget which is sufficient to carry out the powers and duties
51 of such actuary as provided by law. Such proposed budget shall include
52 an allocation for reimbursement for actual and necessary expenses
53 incurred by the members of the board in the performance of their duties.
54 The board shall have the power to approve, modify or reject such
55 proposed annual administrative budget; provided, however, that upon the
56 effective date of this section for city fiscal year two thousand ten the
S. 5418--A 4 A. 8059--A
1 budget of the actuary of the five actuarially funded retirement systems
2 of the city of New York shall be equal to the adopted budget of the
3 office of the actuary for city fiscal year two thousand nine as speci-
4 fied in the adopted budget of the city of New York including any modifi-
5 cations thereto. The costs of the annual budget in city fiscal year two
6 thousand ten and the costs of the approved annual budget in each subse-
7 quent year shall be allocated among the: 1. New York city employees'
8 retirement system; 2. New York city teachers' retirement system; 3. New
9 York city board of education retirement system; 4. New York city police
10 pension fund; and 5. New York city fire department pension fund, and
11 shall be assessed annually on a pro rata share based upon the assets of
12 such systems as determined by the office of the comptroller of the city
13 of New York as of the thirtieth day of June of the preceding fiscal year
14 and shall be payable by the last day of the calendar year in which the
15 expenses were assessed. The board of trustees of the: (i) New York city
16 employees' retirement system; (ii) New York city teachers' retirement
17 system; (iii) New York city board of education retirement system; (iv)
18 New York city police pension fund; and (v) New York city fire department
19 pension fund may draw upon the assets of its respective retirement
20 system to fund its pro rata share.
21 g. The actuary of the five actuarially funded retirement systems of
22 the city of New York shall have the power to obtain by employment or by
23 contract the goods, property and services necessary to fulfill his or
24 her powers, duties and responsibilities within the approved annual budg-
25 et. All contracts for goods and services entered into by the actuary
26 shall be procured as prescribed in chapter thirteen of the charter of
27 the city of New York.
28 h. The provisions of chapter seventeen of the charter of the city of
29 New York shall continue to apply to the actuary and the actuary shall
30 constitute an agency for the purposes of such chapter seventeen. The
31 actuary shall not obtain any legal services by the retention of employ-
32 ees or by contract unless the corporation counsel shall consent thereto.
33 § 3. This act shall take effect on the ninetieth day after it shall
34 have become a law and shall expire and be deemed repealed June 30, 2011.
