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.
