LBD15403-02-0
A. 11038 2
BE WITHIN THE STATE TREASURY, AND SHALL NOT BE DEEMED TO BE STATE FUNDS
FOR ANY PURPOSE. NOTWITHSTANDING THE PROVISIONS OF SECTION FOUR OF THIS
CHAPTER, OR ANY OTHER PROVISION OF LAW TO THE CONTRARY, MONEYS MAY BE
DISBURSED FROM THE FUND FOR ANY AUTHORIZED PURPOSE WITHOUT APPROPRI-
ATION.
4. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE MONEYS IN THE FUND
MAY BE INVESTED BY THE COMPTROLLER IN ANY INVESTMENTS IN COMPLIANCE WITH
THE FOLLOWING STANDARDS:
(A) THE COMPTROLLER SHALL EXERCISE SUCH JUDGMENT, CARE, SKILL,
PRUDENCE AND DILIGENCE UNDER THE CIRCUMSTANCES THEN PREVAILING THAT A
KNOWLEDGEABLE AND PRUDENT INVESTOR ACTING IN A LIKE CAPACITY AND FAMIL-
IAR WITH SUCH MATTERS WOULD USE IN THE CONDUCT OF AN ENTERPRISE OF A
LIKE CHARACTER AND WITH LIKE AIMS; AND
(B) THE COMPTROLLER SHALL PRUDENTLY DIVERSIFY THE INVESTMENT OF THE
FUND'S PORTFOLIO AMONG INVESTMENT TYPES AND WITHIN INVESTMENT TYPES IN A
MANNER CONSISTENT WITH THE FOREGOING UNLESS UNDER THE CIRCUMSTANCES IT
IS CLEARLY PRUDENT NOT TO DO SO.
5. THE COMPTROLLER SHALL MAINTAIN A SEPARATE ACCOUNT FOR EACH PARTIC-
IPATING TRUSTEE. HOWEVER, MONEYS OF PARTICIPATING TRUSTEES MAY BE
COMMINGLED FOR INVESTMENT PURPOSES, PROVIDED THAT THE MONEY OF EACH
PARTICIPATING TRUSTEE SHALL BE SEPARATELY ACCOUNTED FOR.
6. THE COMPTROLLER SHALL ESTABLISH SUB-FUNDS AND INVEST SUCH SUB-FUNDS
SEPARATELY TO PROVIDE PARTICIPATING TRUSTEES WITH A NUMBER OF OPTIONS TO
MEET VARIOUS INVESTMENT OBJECTIVES. INVESTMENT EARNINGS SHALL BE
PRORATED AMONG PARTICIPATING TRUSTEES IN EACH SUB-FUND IN PROPORTION TO
THE AMOUNT OF INVESTMENTS HELD BY PARTICIPATING TRUSTEES.
7. THE COMPTROLLER MAY HIRE SUCH OFFICERS AND EMPLOYEES AND CONTRACT
WITH SUCH ADVISORS AND AGENTS AS THE COMPTROLLER DEEMS NECESSARY FOR THE
MANAGEMENT AND INVESTMENT OF MONEYS IN THE FUND. ANY OFFICERS AND
EMPLOYEES EMPLOYED BY THE COMPTROLLER FOR THE MANAGEMENT AND INVESTMENT
OF MONEYS IN THE FUND SHALL BE OFFICERS AND EMPLOYEES OF THE COMP-
TROLLER, PROVIDED, HOWEVER, THAT ANY COSTS ASSOCIATED WITH THE EMPLOY-
MENT OF SUCH OFFICERS AND EMPLOYEES AND ANY ADVISORS OR AGENTS SHALL BE
CHARGED AGAINST THE FUND. SUCH CHARGES SHALL BE INCLUDED IN THE ADMINIS-
TRATIVE FEE CHARGED TO PARTICIPATING TRUSTEES IN THE FUND.
8. THE COMPTROLLER SHALL ENTER INTO AN AGREEMENT WITH EACH PARTICIPAT-
ING TRUSTEE. EACH SUCH AGREEMENT SHALL INCLUDE, BUT NOT BE LIMITED TO,
THE FOLLOWING TERMS:
(A) A STATEMENT THAT THE COMPTROLLER SHALL BE UNDER NO OBLIGATION TO
REVIEW OR VERIFY THE ESTIMATED COSTS OF BENEFITS TO BE FUNDED WITH MONEY
CONTRIBUTED TO THE FUND;
(B) A PROVISION THAT THE PARTICIPATING TRUSTEE SHALL DETERMINE THE
AMOUNTS OF MONEY TO BE CONTRIBUTED TO THE FUND AND DESIGNATE THE
SUB-FUNDS IN WHICH THE MONEYS SHALL BE INVESTED. THE COMPTROLLER SHALL
ACCEPT SUCH AMOUNTS AND HIS OR HER ONLY RESPONSIBILITY SHALL BE TO
INVEST THE MONEYS IN THE SUB-FUNDS DIRECTED BY THE PARTICIPATING TRUSTEE
AND TO REPORT THE CONTRIBUTIONS, WITHDRAWALS, BALANCES AND EARNINGS, TO
THE PARTICIPATING TRUSTEE ON A REGULAR BASIS TO BE SET FORTH IN THE
AGREEMENT, BUT NO LESS FREQUENTLY THAN ANNUALLY;
(C) A STATEMENT THAT IT SHALL BE THE RESPONSIBILITY OF THE PARTICIPAT-
ING TRUSTEE TO DETERMINE COSTS ELIGIBLE TO BE FUNDED FROM MONEYS IN THE
FUND AND THE COMPTROLLER'S ONLY OBLIGATION SHALL BE TO MAKE PAYMENTS ON
THE DATES AND IN THE AMOUNTS REQUESTED BY THE PARTICIPATING TRUSTEE;
(D) A REQUIREMENT THAT THE PARTICIPATING TRUSTEE SHALL ANNUALLY, ON A
DATE PROVIDED IN THE AGREEMENT, PROVIDE THE COMPTROLLER WITH A SCHEDULE
OR AMENDED SCHEDULE OF MONEYS EXPECTED TO BE CONTRIBUTED TO THE FUND AND
A. 11038 3
WITHDRAWALS EXPECTED TO BE MADE FROM ITS ACCOUNT. SUCH SCHEDULE SHALL BE
BINDING ON THE PARTICIPATING TRUSTEE;
(E) A PROVISION THAT THE MONEY IN THE FUND SHALL BE PAID TO THE
PARTICIPATING TRUSTEE OR ITS DESIGNEE UPON REQUISITION AS PROVIDED IN
THE AGREEMENT;
(F) A PROVISION FOR THE ASSESSMENT OF ADMINISTRATIVE COSTS, INVESTMENT
FEES AND OTHER CHARGES, INCLUDING ANY PENALTIES TO BE IMPOSED FOR EARLY
OR EXCESSIVE WITHDRAWALS, AND FOR THE DEDUCTION OF SUCH FEES AND CHARGES
FROM INVESTMENT EARNINGS;
(G) A STATEMENT BY THE PARTICIPATING TRUSTEE RELATING TO ITS CONSIDER-
ATION OF THE RISKS INVOLVED IN THE INVESTMENT SUB-FUNDS TO WHICH IT IS
ALLOCATING ITS MONEYS AND ITS UNDERSTANDING OF ITS RESPONSIBILITY FOR
ANY LOSSES RESULTING FROM SUCH RISKS;
(H) A STATEMENT THAT NEITHER THE COMPTROLLER NOR ANY OFFICER, EMPLOY-
EE, AGENT OR ADVISOR OF THE COMPTROLLER SHALL BE LIABLE FOR ANY LOSS OR
EXPENSE SUFFERED BY THE FUND IN THE ABSENCE OF BAD FAITH, WILLFUL
MISCONDUCT OR INTENTIONAL WRONGDOING; AND
(I) A PROVISION FOR THE TERMINATION OF THE PARTICIPATING TRUSTEE'S
INCLUSION IN THE FUND, INCLUDING THE DISPOSITION AND/OR TRANSFER OF
ACCUMULATED ASSETS.
S 2. The civil service law is amended by adding a new section 169 to
read as follows:
S 169. OTHER POST EMPLOYMENT BENEFITS ("OPEB") TRUST. 1. FOR PURPOSES
OF THIS SECTION:
(A) "PRESIDENT" SHALL MEAN THE PRESIDENT OF THE CIVIL SERVICE COMMIS-
SION AS HEAD OF THE DEPARTMENT OF CIVIL SERVICE;
(B) "STATE" SHALL MEAN THE STATE OF NEW YORK;
(C) "FUND" SHALL MEAN THE OTHER POST EMPLOYMENT BENEFITS INVESTMENT
FUND CREATED BY SECTION NINETY-SEVEN-JJJJ OF THE STATE FINANCE LAW; AND
(D) "OTHER POST EMPLOYMENT BENEFITS" SHALL MEAN BENEFITS, EXCEPT
PENSIONS OR OTHER BENEFITS FUNDED THROUGH A PUBLIC RETIREMENT SYSTEM,
PROVIDED OR TO BE PROVIDED BY THE STATE AS COMPENSATION, WHETHER PURSU-
ANT TO STATUTE, CONTRACT OR OTHER LAWFUL AUTHORITY, TO ITS CURRENT OR
FORMER OFFICERS OR EMPLOYEES, OR THEIR FAMILIES OR BENEFICIARIES, AFTER
SERVICE TO THE STATE HAS ENDED, INCLUDING, BUT NOT LIMITED TO, HEALTH
CARE BENEFITS. THE TERM "OTHER POST EMPLOYMENT BENEFITS" SHALL NOT
INCLUDE CASH PAYMENTS FOR THE MONETARY VALUE OF SICK LEAVE, VACATION OR
OTHER SIMILAR ACCRUALS, RETIREMENT INCENTIVE OR SEPARATION PAYMENTS, OR
BENEFITS PROVIDED PURSUANT TO THE CONSOLIDATED OMNIBUS BUDGET RECONCIL-
IATION ACT OF 1985 (PUBLIC LAW 99-272), AS AMENDED.
2. THE PRESIDENT MAY ESTABLISH A TRUST IN HIS OR HER CUSTODY FOR THE
PURPOSE OF ACCUMULATING ASSETS TO FUND THE COST OF PROVIDING OTHER POST
EMPLOYMENT BENEFITS. CONTRIBUTIONS TO SUCH TRUST MAY BE MADE BY STATE
APPROPRIATION.
3. THE PRESIDENT IS HEREBY DECLARED TO BE THE TRUSTEE OF ANY TRUST
ESTABLISHED PURSUANT TO THIS SECTION. AS TRUSTEE THE PRESIDENT SHALL BE
RESPONSIBLE FOR THE OPERATION AND MANAGEMENT OF THE TRUST, INCLUDING THE
INVESTMENT OF TRUST ASSETS, AND SHALL BE SUBJECT TO ALL THE DUTIES AND
RESPONSIBILITIES IMPOSED BY LAW ON TRUSTEES, EXCEPT TO THE EXTENT INCON-
SISTENT WITH THIS SECTION.
4. CONTRIBUTIONS TO THE TRUST, AND ANY INTEREST OR OTHER INCOME OR
EARNINGS ON CONTRIBUTIONS, SHALL BE IRREVOCABLE BEFORE ALL LIABILITIES
OF THE STATE GOVERNMENT FOR OTHER POST EMPLOYMENT BENEFITS HAVE BEEN
SATISFIED AND SHALL BE SOLELY DEDICATED TO, AND USED SOLELY FOR, PROVID-
ING OTHER POST EMPLOYMENT BENEFITS AND PAYING APPROPRIATE AND REASONABLE
EXPENSES OF ADMINISTERING THE TRUST. NO ASSETS, INCOME, EARNINGS OR
A. 11038 4
DISTRIBUTIONS OF THE TRUST SHALL BE SUBJECT TO ANY CLAIM OF CREDITORS OF
THE STATE, OR TO ASSIGNMENT OR EXECUTION, ATTACHMENT OR ANY OTHER CLAIM
ENFORCEMENT PROCESS INITIATED BY OR ON BEHALF OF SUCH CREDITORS. EXCEPT
AS OTHERWISE PROVIDED IN SUBDIVISION NINE OF THIS SECTION, THE PRESIDENT
SHALL NOT BE RESPONSIBLE FOR THE ADEQUACY OF THE ASSETS OF THE TRUST TO
MEET ANY OTHER POST EMPLOYMENT BENEFIT. THE PRESIDENT SHALL NOT BE
RESPONSIBLE FOR TAKING ANY ACTION TO ENFORCE THE PAYMENT OF ANY APPRO-
PRIATION INTO THE TRUST. THE TRUST MAY BE TERMINATED ONLY WHEN ALL
LIABILITIES OF THE STATE FOR OTHER POST EMPLOYMENT BENEFITS HAVE BEEN
SATISFIED AND THERE IS NO PRESENT OR FUTURE OBLIGATION, CONTINGENT OR
OTHERWISE, OF THE STATE TO PROVIDE SUCH OTHER POST EMPLOYMENT BENEFITS.
UPON SUCH TERMINATION, ANY REMAINING TRUST ASSETS, AFTER ANY PROPER
EXPENSES OF THE TRUST HAVE BEEN PAID, SHALL REVERT TO THE STATE.
5. WITHDRAWALS FROM THE TRUST SHALL BE MADE FOR THE SOLE PURPOSE OF
PROVIDING FUNDS FOR THE COSTS OF OTHER POST EMPLOYMENT BENEFITS CURRENT-
LY DUE AND PAYABLE BY THE STATE.
6. THE PRESIDENT MAY CONTRACT TO OBTAIN SERVICES NECESSARY FOR THE
MANAGEMENT AND OPERATION OF THE TRUST, INCLUDING THE PROFESSIONAL
SERVICES NECESSARY TO CARRY OUT HIS OR HER RESPONSIBILITIES AS TRUSTEE.
CONTRACTS FOR SUCH SERVICES SHALL BE LET PURSUANT TO THE PROVISIONS OF
THE STATE FINANCE LAW APPLICABLE TO STATE CONTRACTS.
7. THE PRESIDENT SHALL MANAGE AND INVEST THE ASSETS OF THE TRUST IN A
CAREFUL AND PRUDENT MANNER. THE PRESIDENT MAY INVEST ASSETS OF THE TRUST
ONLY BY PAYMENT TO THE FUND IN ACCORDANCE WITH SECTION NINETY-SEVEN-JJJJ
OF THE STATE FINANCE LAW. ANY INTEREST OR OTHER INCOME OR EARNINGS
RESULTING FROM THE INVESTMENT OF ASSETS OF THE TRUST SHALL ACCRUE TO AND
BECOME PART OF THE ASSETS OF THE TRUST.
8. THE PRESIDENT SHALL DEVELOP, IN CONSULTATION WITH THE STATE HEALTH
INSURANCE COUNCIL, A WRITTEN INVESTMENT POLICY FOR SELECTING AMONG THE
INVESTMENT OPTIONS OFFERED BY THE STATE COMPTROLLER PURSUANT TO SECTION
NINETY-SEVEN-JJJJ OF THE STATE FINANCE LAW. SUCH POLICY SHALL INCLUDE A
STATEMENT OF INVESTMENT OBJECTIVES ADDRESSING, IN THE FOLLOWING ORDER OF
PRIORITY, THE ABILITY TO TIMELY MEET DISBURSEMENT REQUESTS WITHOUT
FORCED SALE OF ASSETS, SAFETY OF PRINCIPAL AND ATTAINMENT OF MARKET
RATES OF RETURN.
9. NEITHER THE STATE NOR THE PRESIDENT SHALL BE LIABLE FOR ANY LOSS OR
EXPENSE SUFFERED BY THE TRUST IN THE ABSENCE OF BAD FAITH, WILLFUL
MISCONDUCT OR INTENTIONAL WRONGDOING. THE PRESIDENT SHALL BE CONSIDERED
TO BE ACTING AS AN OFFICER OF THE STATE FOR PURPOSES OF SECTION SEVEN-
TEEN OF THE PUBLIC OFFICERS LAW, PROVIDED, HOWEVER, THAT THE COSTS OF
ANY DEFENSE OR INDEMNIFICATION OF THE PRESIDENT ARISING FROM THE EXER-
CISE OF THE FUNCTIONS OF TRUSTEE SHALL BE PAYABLE FROM THE ASSETS OF THE
TRUST.
10. THE PRESIDENT SHALL PREPARE OR CAUSE TO BE PREPARED AN ANNUAL
FINANCIAL REPORT OF ASSETS, LIABILITIES, REVENUES AND EXPENSES OF THE
TRUST IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. THE
PRESIDENT SHALL CAUSE THE ACTIVITIES UNDERTAKEN IN CONNECTION WITH THE
TRUST, INCLUDING THE ANNUAL FINANCIAL REPORT, TO BE AUDITED ANNUALLY, IN
ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS, BY AN INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANT ENGAGED IN A MANNER CONSISTENT WITH THE
APPLICABLE PROVISIONS OF THE STATE FINANCE LAW. THE AUDIT SHALL BE
COMPLETED WITHIN ONE HUNDRED TWENTY DAYS FROM THE CLOSE OF THE STATE'S
FISCAL YEAR. A COPY OF THE ANNUAL FINANCIAL REPORT AND THE REPORT OF
SUCH AUDIT SHALL BE PROVIDED TO THE GOVERNOR, THE STATE COMPTROLLER AND
THE CHAIRS OF THE LEGISLATIVE FISCAL COMMITTEES.
A. 11038 5
11. NOTHING CONTAINED IN THIS SECTION SHALL BE INTERPRETED OR
CONSTRUED TO:
(A) CREATE ANY OBLIGATION IN, IMPOSE ANY OBLIGATION ON, OR ALTER ANY
OBLIGATION OF THE STATE TO PROVIDE OTHER POST EMPLOYMENT BENEFITS;
(B) LIMIT OR RESTRICT THE AUTHORITY OF THE STATE TO MODIFY OR ELIMI-
NATE OTHER POST EMPLOYMENT BENEFITS;
(C) ASSURE OR DENY OTHER POST EMPLOYMENT BENEFITS; OR
(D) REQUIRE THE STATE TO FUND ITS LIABILITY FOR OTHER POST EMPLOYMENT
BENEFITS.
S 3. The general municipal law is amended by adding a new section 6-t
to read as follows:
S 6-T. OTHER POST EMPLOYMENT BENEFITS (OPEB) TRUST. 1. FOR PURPOSES OF
THIS SECTION:
(A) "LOCAL GOVERNMENT" SHALL MEAN A MUNICIPAL CORPORATION, SCHOOL
DISTRICT, BOARD OF COOPERATIVE EDUCATIONAL SERVICES, DISTRICT CORPO-
RATION, SPECIAL IMPROVEMENT DISTRICT GOVERNED BY A SEPARATE BOARD OF
COMMISSIONERS, COMMUNITY COLLEGE OR PUBLIC LIBRARY THAT PROVIDES OTHER
POST EMPLOYMENT BENEFITS.
(B) "OTHER POST EMPLOYMENT BENEFITS" SHALL MEAN BENEFITS, EXCEPT
PENSIONS OR OTHER BENEFITS FUNDED THROUGH A PUBLIC RETIREMENT SYSTEM,
PROVIDED OR TO BE PROVIDED AS COMPENSATION BY THE LOCAL GOVERNMENT,
WHETHER PURSUANT TO STATE STATUTE, LOCAL ENACTMENT, CONTRACT OR OTHER
LAWFUL AUTHORITY, TO ITS FORMER OR CURRENT OFFICERS OR EMPLOYEES, OR
THEIR FAMILIES OR BENEFICIARIES, AFTER SERVICE TO THE LOCAL GOVERNMENT
HAS ENDED, INCLUDING, BUT NOT LIMITED TO, HEALTH CARE BENEFITS. THE TERM
"OTHER POST EMPLOYMENT BENEFITS" SHALL NOT INCLUDE CASH PAYMENTS FOR THE
MONETARY VALUE OF SICK LEAVE, VACATION OR OTHER SIMILAR ACCRUALS,
RETIREMENT INCENTIVE OR SEPARATION PAYMENTS, OR BENEFITS PROVIDED PURSU-
ANT TO THE CONSOLIDATED OMNIBUS BUDGET RECONCILIATION ACT OF 1985
(PUBLIC LAW 99-272), AS AMENDED.
2. THE GOVERNING BODY OF A LOCAL GOVERNMENT, BY RESOLUTION, MAY ESTAB-
LISH A TRUST IN THE CUSTODY OF THE CHIEF FISCAL OFFICER OF THE LOCAL
GOVERNMENT, FOR THE PURPOSE OF ACCUMULATING ASSETS TO FUND THE COST TO
THE LOCAL GOVERNMENT OF PROVIDING OTHER POST EMPLOYMENT BENEFITS.
CONTRIBUTIONS TO SUCH TRUST MAY BE MADE BY THE LOCAL GOVERNMENT BY BUDG-
ETARY APPROPRIATION OR TRANSFER IN ACCORDANCE WITH THE PROVISIONS OF
SUBDIVISION NINE OF SECTION SIX-P OF THIS ARTICLE.
3. THE GOVERNING BOARD OF THE LOCAL GOVERNMENT IS HEREBY DECLARED TO
BE THE TRUSTEE OF ANY TRUST ESTABLISHED PURSUANT TO THIS SECTION,
PROVIDED, HOWEVER, THAT THE GOVERNING BOARD, BY RESOLUTION, MAY DESIG-
NATE THE CHIEF FISCAL OFFICER OF THE LOCAL GOVERNMENT AS TRUSTEE,
SUBJECT TO ACCEPTANCE OF SUCH POSITION BY THE CHIEF FISCAL OFFICER AND,
IN THE CASE OF A CITY WITH A POPULATION OF ONE MILLION OR MORE, THE CITY
COMPTROLLER SHALL BE THE TRUSTEE. THE TRUSTEE SHALL BE RESPONSIBLE FOR
THE OPERATION AND MANAGEMENT OF THE TRUST, INCLUDING THE DEPOSIT AND
SECURING OF TRUST ASSETS IN THE SAME MANNER AS PROVIDED IN SECTION TEN
OF THIS ARTICLE, AND THE INVESTMENT OF TRUST ASSETS, AND SHALL BE
SUBJECT TO ALL THE DUTIES AND RESPONSIBILITIES IMPOSED BY LAW ON TRUS-
TEES, EXCEPT TO THE EXTENT INCONSISTENT WITH THIS SECTION. THE TRUSTEE
SHALL EXECUTE AND FILE WITH THE CLERK OF THE LOCAL GOVERNMENT AN APPRO-
PRIATE UNDERTAKING, SEPARATE FROM AND IN ADDITION TO ANY OTHER UNDERTAK-
ING REQUIRED OF THE TRUSTEE IN ANY OTHER CAPACITY, IN AN AMOUNT SUFFI-
CIENT TO COVER TRUST ASSETS. IN LIEU THEREOF, SUCH COVERAGE MAY BE
INCLUDED IN A BLANKET UNDERTAKING IN ACCORDANCE WITH SECTION ELEVEN OF
THE PUBLIC OFFICERS LAW. THE COST OF THE UNDERTAKING SHALL BE CONSID-
ERED TO BE A REASONABLE EXPENSE OF ADMINISTERING THE TRUST.
A. 11038 6
4. CONTRIBUTIONS TO THE TRUST, AND ANY INTEREST OR OTHER INCOME OR
EARNINGS ON CONTRIBUTIONS, SHALL BE IRREVOCABLE BEFORE ALL LIABILITIES
OF THE LOCAL GOVERNMENT FOR OTHER POST EMPLOYMENT BENEFITS HAVE BEEN
SATISFIED, AND SHALL BE SOLELY DEDICATED TO, AND USED SOLELY FOR,
PROVIDING OTHER POST EMPLOYMENT BENEFITS AND PAYING APPROPRIATE AND
REASONABLE EXPENSES OF ADMINISTERING THE TRUST. NO ASSETS, INCOME, EARN-
INGS OR DISTRIBUTIONS OF THE TRUST SHALL BE SUBJECT TO ANY CLAIM OF
CREDITORS OF THE LOCAL GOVERNMENT OR OF ANY PERSON OR ENTITY ADMINISTER-
ING A PLAN FOR THE PROVISION OF OTHER POST EMPLOYMENT BENEFITS OR TO
ASSIGNMENT OR EXECUTION, ATTACHMENT OR ANY OTHER CLAIM ENFORCEMENT PROC-
ESS INITIATED BY OR ON BEHALF OF SUCH CREDITORS. EXCEPT AS OTHERWISE
PROVIDED IN SUBDIVISION SEVEN OF THIS SECTION, THE TRUSTEE SHALL NOT BE
RESPONSIBLE FOR THE ADEQUACY OF THE ASSETS OF THE TRUST TO MEET ANY
OTHER POST EMPLOYMENT BENEFIT. THE TRUSTEE SHALL NOT BE RESPONSIBLE FOR
TAKING ANY ACTION TO ENFORCE THE PAYMENT OF ANY APPROPRIATION INTO THE
TRUST. THE ASSETS OF THE TRUST, INCLUDING ALL INTEREST OR OTHER INCOME
OR EARNINGS ON CONTRIBUTIONS TO THE TRUST, SHALL BE EXEMPT FROM ALL
STATE AND LOCAL TAXES. THE TRUST MAY BE TERMINATED ONLY WHEN ALL
LIABILITIES OF THE LOCAL GOVERNMENT FOR OTHER POST EMPLOYMENT BENEFITS
HAVE BEEN SATISFIED AND THERE IS NO PRESENT OR FUTURE OBLIGATION,
CONTINGENT OR OTHERWISE, OF THE LOCAL GOVERNMENT TO PROVIDE SUCH OTHER
POST EMPLOYMENT BENEFITS. UPON SUCH TERMINATION, ANY REMAINING TRUST
ASSETS, AFTER ANY PROPER EXPENSES OF THE TRUST HAVE BEEN PAID, SHALL
REVERT TO THE LOCAL GOVERNMENT TO BE PAID INTO ONE OR MORE RESERVE
FUNDS, DULY ESTABLISHED PURSUANT TO THIS ARTICLE OR OTHER STATE STATUTE,
IN SUCH AMOUNTS AS DETERMINED BY THE GOVERNING BOARD OF THE LOCAL
GOVERNMENT.
5. DISBURSEMENTS FROM THE TRUST SHALL BE MADE ONLY UPON A DULY AUTHOR-
IZED REQUEST PURSUANT TO RESOLUTION OF THE GOVERNING BOARD OF THE LOCAL
GOVERNMENT STATING THE AMOUNT OF THE REQUESTED DISBURSEMENT AND DETER-
MINING THAT THE DISBURSEMENT IS FOR THE SOLE PURPOSE OF PROVIDING FUNDS
FOR THE COSTS OF OTHER POST EMPLOYMENT BENEFITS CURRENTLY DUE AND PAYA-
BLE BY THE LOCAL GOVERNMENT.
6. THE TRUSTEE SHALL INVEST THE ASSETS OF THE TRUST IN THE OTHER POST
EMPLOYMENT BENEFITS INVESTMENT FUND IN THE CUSTODY OF THE STATE COMP-
TROLLER, IN ACCORDANCE WITH SECTION NINETY-SEVEN-JJJJ OF THE STATE
FINANCE LAW. ANY INTEREST OR OTHER INCOME OR EARNINGS RESULTING FROM THE
INVESTMENT OF ASSETS OF THE TRUST SHALL ACCRUE TO AND BECOME PART OF THE
ASSETS OF THE TRUST. THE TRUSTEE SHALL DEVELOP A WRITTEN INVESTMENT
POLICY FOR SELECTING AMONG THE INVESTMENT OPTIONS OFFERED BY THE STATE
COMPTROLLER PURSUANT TO SECTION NINETY-SEVEN-JJJJ OF THE STATE FINANCE
LAW WHICH, AT A MINIMUM, SHALL INCLUDE A STATEMENT OF INVESTMENT OBJEC-
TIVES ADDRESSING, IN THE FOLLOWING ORDER OF PRIORITY, COMPLIANCE WITH
ALL LEGAL REQUIREMENTS, THE ABILITY TO TIMELY MEET DISBURSEMENT REQUESTS
WITHOUT FORCED SALE OF ASSETS, SAFETY OF PRINCIPAL AND ATTAINMENT OF
MARKET RATES OF RETURN.
7. NEITHER THE LOCAL GOVERNMENT NOR THE TRUSTEE SHALL BE LIABLE FOR
ANY LOSS OR EXPENSE SUFFERED BY THE TRUST IN THE ABSENCE OF BAD FAITH,
WILLFUL MISCONDUCT OR INTENTIONAL WRONGDOING. THE TRUSTEE SHALL BE
CONSIDERED TO BE AN EMPLOYEE OF THE LOCAL GOVERNMENT FOR PURPOSES OF
SECTION EIGHTEEN OF THE PUBLIC OFFICERS LAW, PROVIDED, HOWEVER, THAT THE
COSTS OF ANY DEFENSE OR INDEMNIFICATION OF THE TRUSTEE ARISING FROM THE
EXERCISE OF THE FUNCTIONS OF TRUSTEE SHALL BE PAYABLE FROM THE ASSETS OF
THE TRUST.
8. THE TRUSTEE SHALL PREPARE OR CAUSE TO BE PREPARED AN ANNUAL FINAN-
CIAL REPORT OF ASSETS, LIABILITIES, REVENUES AND EXPENSES OF THE TRUST
A. 11038 7
IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. THE TRUSTEE
SHALL CAUSE THE ACTIVITIES UNDERTAKEN IN CONNECTION WITH THE TRUST,
INCLUDING THE ANNUAL FINANCIAL REPORT, TO BE AUDITED ANNUALLY, EITHER
SEPARATELY OR AS PART OF THE OVERALL AUDIT OF THE REPORTING ENTITY, IN
ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS, BY AN INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANT ENGAGED IN A MANNER CONSISTENT WITH THE
PROCUREMENT POLICIES AND PROCEDURES ADOPTED BY THE LOCAL GOVERNMENT
PURSUANT TO SECTION ONE HUNDRED FOUR-B OF THIS CHAPTER AND SHALL BE
SUBJECT TO A REQUEST FOR PROPOSALS PROCESS AT LEAST EVERY FIVE YEARS.
THE AUDIT SHALL BE COMPLETED WITHIN ONE HUNDRED TWENTY DAYS FROM THE
CLOSE OF THE FISCAL YEAR OF THE LOCAL GOVERNMENT. A COPY OF THE ANNUAL
FINANCIAL REPORT AND THE REPORT OF SUCH AUDIT SHALL BE PROVIDED TO THE
STATE COMPTROLLER, THE TRUSTEE AND THE GOVERNING BOARD OF THE LOCAL
GOVERNMENT AND SHALL BE PUBLICLY AVAILABLE AND POSTED ON THE WEBSITE OF
THE LOCAL GOVERNMENT, IF SUCH A WEBSITE IS MAINTAINED.
9. THE STATE COMPTROLLER MAY MAKE, AMEND AND REPEAL SUCH RULES AND
REGULATIONS AS THE STATE COMPTROLLER MAY DEEM APPROPRIATE FOR THE PROPER
OPERATION AND MANAGEMENT OF TRUSTS ESTABLISHED PURSUANT TO THIS SECTION.
10. NOTHING CONTAINED IN THIS SECTION SHALL BE INTERPRETED OR
CONSTRUED TO:
(A) CREATE ANY OBLIGATION IN, IMPOSE ANY OBLIGATION ON, OR ALTER ANY
OBLIGATION OF ANY LOCAL GOVERNMENT TO PROVIDE OTHER POST EMPLOYMENT
BENEFITS;
(B) LIMIT OR RESTRICT THE AUTHORITY OF A LOCAL GOVERNMENT TO MODIFY OR
ELIMINATE OTHER POST EMPLOYMENT BENEFITS;
(C) ASSURE OR DENY OTHER POST EMPLOYMENT BENEFITS; OR
(D) REQUIRE ANY LOCAL GOVERNMENT TO FUND ITS LIABILITY FOR OTHER POST
EMPLOYMENT BENEFITS.
S 4. Subdivision 9 of section 6-p of the general municipal law, as
added by chapter 518 of the laws of 1996, is amended to read as follows:
9. If, after the establishment of such fund, the municipality deter-
mines that such fund is no longer needed, the moneys remaining in such
fund may be transferred to any other reserve fund OR ANY OTHER POST
EMPLOYMENT BENEFITS TRUST of the municipal corporation authorized by
this chapter that is comprised of moneys which were raised on the same
tax base as the moneys in the reserve fund established under this
section or TO A RESERVE FUND ESTABLISHED PURSUANT TO section thirty-six
hundred fifty-one of the education law, only to the extent that the
moneys in this fund shall exceed the sum sufficient to pay all liabil-
ities incurred or accrued against it. Prior to the discontinuance of
such fund, the fiscal and legal officers of such municipal corporation
shall certify to the governing board thereof the amount that may be
necessary to retain in such fund to satisfy all liabilities incurred or
accrued against it and such sum shall be retained in the fund for
payment of such amounts or until later certified that such funds are no
longer needed.
S 5. The provisions of section 6-t of the general municipal law, as
added by section three of this act, shall not affect the validity of the
establishment or implementation of the New York City Retiree Health
Benefit Trust, established June 12, 2006 by the City of New York as
Grantor, and neither the operation nor any amendment of such trust shall
be subject to the provisions of such section. The establishment of such
trust and its operation in accordance with its terms is hereby ratified
and approved.
S 6. This act shall take effect immediately.