S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 5134--A                                            A. 6548--A
 
                        2017-2018 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                               March 9, 2017
                                ___________
 
 IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
   ed, and when printed to be committed to the Committee on Civil Service
   and  Pensions  --  recommitted  to  the Committee on Civil Service and
   Pensions in accordance  with  Senate  Rule  6,  sec.  8  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 IN  ASSEMBLY  -- Introduced by M. of A. THIELE -- read once and referred
   to the Committee 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  to amend the retirement and social security law, in relation to
   participation by free association libraries in the New York state  and
   local employees' retirement system
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The retirement and social security law is amended by adding
 a new section 31-g to read as follows:
   § 31-G. PARTICIPATION BY FREE ASSOCIATION LIBRARIES.   A FREE  ASSOCI-
 ATION  LIBRARY  AS  DEFINED  IN  SECTION  TWO HUNDRED FIFTY-THREE OF THE
 EDUCATION LAW AND WHICH MEETS THE CRITERIA SET FORTH  IN  THIS  SECTION,
 MAY  BY RESOLUTION ADOPTED AS PROVIDED IN SECTION SEVEN HUNDRED EIGHT OF
 THE NOT-FOR-PROFIT CORPORATION LAW BY ITS BOARD OF TRUSTEES AND  SUBJECT
 TO  THE APPROVAL OF THE COMPTROLLER, ELECT TO PARTICIPATE IN THE RETIRE-
 MENT SYSTEM. ACCEPTANCE OF ITS EMPLOYEES FOR MEMBERSHIP IN  THE  RETIRE-
 MENT SYSTEM SHALL BE MANDATORY WITH THE COMPTROLLER, WHO SHALL DETERMINE
 THE  AMOUNTS  OF CONTRIBUTION PAYABLE BY SUCH LIBRARY AND ITS EMPLOYEES,
 SHALL RESOLVE QUESTIONS OF CREDIT FOR PRIOR SERVICE, AND  SHALL  IN  ALL
 OTHER  RESPECTS  ASSURE THAT SUCH EMPLOYEES SHARE THE SAME RIGHTS, OBLI-
 GATIONS AND BENEFITS AS OTHER MEMBERS OF THE RETIREMENT SYSTEM.  A  FREE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09916-04-8

 S. 5134--A                          2                         A. 6548--A
 
 ASSOCIATION  LIBRARY  SHALL  BE  ELIGIBLE  TO JOIN THE RETIREMENT SYSTEM
 UNDER THE FOLLOWING CONDITIONS:
   (A) SUCH LIBRARY SHALL BE CHARTERED BY THE STATE BOARD OF REGENTS;
   (B)  SUCH  LIBRARY  SHALL SERVE THE ENTIRE POPULATION OF ITS CHARTERED
 SERVICE AREA;
   (C) THE BOARD OF TRUSTEES OF SUCH LIBRARY  SHALL  BE  ELECTED  BY  THE
 VOTERS OF ITS CHARTERED SERVICE AREA;
   (D) SUCH LIBRARY'S BUDGET SHALL BE APPROVED BY THE VOTERS OF ITS CHAR-
 TERED SERVICE AREA;
   (E)  AT  LEAST FIFTY-ONE PERCENT OF SUCH LIBRARY'S BUDGET SHALL DERIVE
 FROM PUBLIC SOURCES; AND
   (F) SUCH LIBRARY SHALL FILE THE ANNUAL REPORT WITH THE COMPTROLLER  AS
 REQUIRED  OF PUBLIC LIBRARIES BY SECTION THIRTY OF THE GENERAL MUNICIPAL
 LAW.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would permit any free association public library which meets
 certain specific criteria to elect participation in the New  York  State
 and Local Employees' Retirement System.
   If  this  bill  is  enacted and an eligible corporation elects partic-
 ipation, the future annual cost would  depend  on  the  retirement  plan
 adopted and the billable salary of the electing corporation.
   As  a  percentage  of  payroll, we anticipate that the annual contrib-
 utions of the affected corporation for the fiscal year ending March  31,
 2019, will be as follows:
           Tier                Rate
            1              10.6% to 21.4%
            2               9.7% to 19.4%
            3                  15.7%
            4                  15.7%
            5                  12.9%
            6                   9.2%
   In addition to the annual contributions discussed above, there will be
 a deficiency cost to the affected corporation which  will be payable for
 a  25  year period. These costs will depend on the age, service, salary,
 tier status and plan of the affected employees.
   Summary of relevant resources:
   The membership data used in  measuring  the  impact  of  the  proposed
 change  was  the same as that used in the March 31, 2017 actuarial valu-
 ation.  Distributions and other statistics can  be  found  in  the  2017
 Report  of  the  Actuary  and  the  2017  Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in the  2015,
 2016,  and  2017  Annual  Report to the Comptroller on Actuarial Assump-
 tions, and the Codes Rules and Regulations of the  State  of  New  York:
 Audit and Control.
   The Market Assets and GASB Disclosures are found in the March 31, 2017
 New  York  State  and  Local  Retirement System Financial Statements and
 Supplementary Information.
   I am a member of the American Academy of Actuaries and meet the Quali-
 fication Standards to render the actuarial opinion contained herein.
   This estimate, dated January 31, 2018 and intended for use only during
 the 2018 Legislative Session, is Fiscal Note No.  2018-53,  prepared  by
 the Actuary for the New York State and Local Retirement System.