Download ASSEMBLY BILL #A8447 SAME AS SENATE BILLL #S5208

ASSEMBLY BILL #A8447 SAME AS SENATE BILLL #S5208
LAWS OF NEW YORK, 2007
CHAPTER 617
(See FISCAL NOTES at end of Chapter.)
AN ACT to amend the education law, in relation to eliminating the mandatory
contribution for members in the optional retirement program
Became a law August 15, 2007, with the approval of the Governor.
Passed by a majority vote, three-fifths being present.
The People of the State of New York, represented in Senate and
Assembly, do enact as follows:
Section 1. Subdivision 2 of section 392 of the education law is amended
by adding a new paragraph (c) to read as follows:
(c) Notwithstanding any other provision of this section or any other law
to the contrary, (1) on and after April first, two thousand eight for a
member who joined the optional retirement program established
pursuant to this article and who has ten or more years of membership in
such optional retirement program, the state shall contribute one-third of
the three percent employee contribution required pursuant to the
provisions of this section on behalf of such employee; and (2) on and
after April first, two thousand nine for a member who joined the
optional retirement program established pursuant to this article and who
has ten or more years of membership in such optional retirement program,
the state shall contribute two-thirds of the three percent employee
contribution required pursuant to the provisions of this section on
behalf of such employee; and (3) on and after April first, two thousand ten
for a member who joined the optional retirement program established
pursuant to this article and who has ten or more years of membership in
such optional retirement program, the state shall contribute the three
percent employee contribution required pursuant to the provisions of
this section on behalf of such employee.
§ 2. Subdivision 2 of section 6252 of the education law is amended by
adding a new paragraph (c) to read as follows:
(c) Notwithstanding any other provision of this section or any other law
to the contrary, (1) on and after April first, two thousand eight for a
member who joined the optional retirement program established
pursuant to this article and who has ten or more years of membership in
such optional retirement program, the city shall contribute one-third of the
three percent employee contribution required pursuant to the
provisions of this section on behalf of such employee; and (2) on and
after April first, two thousand nine for a member who joined the
optional retirement program established pursuant to this article and who
has ten or more years of membership in such optional retirement program,
the city shall contribute two-thirds of the three percent employee
contribution required pursuant to the provisions of this section on
behalf of such employee; and (3) on and after April first, two thousand ten
for a member who joined the optional retirement program established
pursuant to this article and who has ten or more years of membership in
such optional retirement program, the city shall contribute the three
EXPLANATION--Matter in italics is new; matter in brackets [ ] is old law
to be omitted.
CHAP. 617
2
percent employee contribution required pursuant to the provisions of
this section on behalf of such employee.
§ 3. The above described contribution provided for in sections one and two of
this act by the state and city of New York shall be provided outside the
operating budget of the City University of New York from the state fringe benefit
fund and the New York city pension budget for the senior and community
colleges, respectively.
§ 4. This act shall take effect immediately.
-----------------------------------------------------------------------FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
For State employees, including the employees at the statutory colleges of
Cornell University, we estimate the cost to be approximately $14,900,000.
The first year cost will be approximately $4,966,667.
For community college employees, information provided by TIAA-CREF
estimates the cost at $1,500,000. The first year cost will be approximately
$500,000. This cost would be borne, as all community college costs are, 1/3 by
the State, 1/3 by the county sponsoring the community college and 1/3 through
tuition revenue.
The source of this estimate, dated April 16, 2007, is the State University of
New York.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill amends sections 392 and 6252 of the Education Law in order to
provide for a three-year phase in for the employer pick-up of members
contributions to the Optional Retirement Program (ORP) for members with 10 or
more years of membership in such program.
On April 1, 2008, the estimated cost for eligible employees in the ORP is
$3,692,525.97. On April 1, 2009, the estimated contribution is $6,382,355.92.
On April 1, 2010 the estimated cost is $7,951,824.05.
The source of this estimate is the City University Office of Faculty and Staff
Relations. The costs illustrated are estimates. The true cost may be higher
depending on actual salaries earned, employee counts, and employee
demographics. These figures are based ORP participation and salary as of April
2007. For Tiers 1, 2, 3, and 4, the contribution for the first year of the phase in
would be 1%. Tiers 1, 2, 3, and 4 will be fully phased in on the second year,
1.5%. The contribution for the second year of the phase in would be .5%. Tier 5
for the first year would be 1%, second year 2%, third year 3%.
The Legislature of the STATE OF NEW YORK ss:
Pursuant to the authority vested in us by section 70-b of the Public Officers
Law, we hereby jointly certify that this slip copy of this session law was printed
under our direction and, in accordance with such section, is entitled to be read
into evidence.
JOSEPH L. BRUNO
Temporary President of the Senate
SHELDON SILVER
Speaker of the Assembly