NY State Senate Bill 2021-S5179A

Senate Bill S5179A

2021-2022 Legislative Session

Relates to the participation by free association libraries in the New York state and local employees' retirement system

download bill text pdf

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 30, 2022	print number 5179a
Mar 30, 2022	amend and recommit to civil service and pensions
Jan 05, 2022	referred to civil service and pensions
Feb 25, 2021	referred to civil service and pensions

Bill Amendments

Original

A (Active)

co-Sponsors

2021-S5179 - Details

See Assembly Version of this Bill:: A5824
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Add §31-g, R & SS L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S5134, A6548
2019-2020: S5468, A7399
2023-2024: S4245, A4885

2021-S5179 - Summary

Authorizes the participation by free association libraries in the New York state and local employees' retirement system.

2021-S5179 - Sponsor Memo

                                
 
BILL NUMBER: S5179

SPONSOR: PALUMBO
 
TITLE OF BILL:

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

 
PURPOSE:

The bill would allow additional free association libraries to partic-
ipate in the State retirement system, providing their librarians and
other employees' equity with those free association libraries, which are
currently in the retirement system, as well as with public libraries
operating under other forms of governance.

 
SUMMARY OF PROVISIONS:

Section 1. Adds a new section 31-g to the retirement and social security
law allowing free association libraries, which meet enumerated stand-

ards, to join the retirement system and providing for administration of
the process. To be eligible, libraries must be chartered by the State
Board of Regents, receive the majority of their revenues from public
sources, provide for public voting on both their budgets and their trus-
tees and file appropriate reports with the State Comptroller.

Section 2. Provides the effective date.

 
JUSTIFICATION:

Public libraries in New York generally operate under one of four types
of governance. Some are agencies or departments of a municipality so the
library staff are employees of the municipality and are thus members of
the retirement system. Others are special districts created by special
State legislation and their retirement system participation may be
established by their enabling legislation.  Others are voter established
"school district public libraries" , which are eligible to participate
in the State retirement system pursuant to section 31-a of the retire-
ment and social security law.

The fourth type of public library governance is the free association
library. Free association libraries are subject to the same rights and
responsibilities pursuant to the education law as are public libraries
operating under other types of governance. Funding for these libraries
typically is provided by the municipality (or municipalities) in which
they serve. These libraries receive the same state and federal aid as
other public libraries. The largest and most well known free association
library is the research library of the New York Public Library which is
actually owned by the Astor, Lenos and Tilden Foundations. This free
association library is specifically made eligible to participate in the
retirement system by section 32 of the retirement and social security
law. There are also other free association libraries across the State
covered by the provisions of the retirement and social security law
which allows for participation in the retirement system.

Those remaining free association libraries, which currently are not
eligible to participate in the retirement system, are hampered in their
ability to recruit and retain librarians and other staff.  Experienced
staff currently working on other libraries may be reluctant to accept
employment which does not count toward their retirement, while entry
level staff are likely to move to jobs at other libraries or other local
government agencies which participate in the retirement system. Permit-
ting the participation by these remaining libraries in the retirement
system will 'level the playing field' and ensure high quality library
services for citizens in all parts of the State.

 
LEGISLATIVE HISTORY:

2020: S.5468/A.7399; 2017-18 S.5134A/A.6548A2011 A.574; 2010 A.10012

 
FISCAL IMPLICATIONS:

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 (NYSLERS). If this bill is
enacted during 2021 legislative session and an eligible corporation
elects participation, the future annual cost would depend on the retire-
ment plan adopted and the billable salary of the election corporation.
As a percentage of payroll, we anticipate that the annual contributions
of the affected corporation for the fiscal year ending March 31, 2022,
will be as follows: Tier 1 12.2% to 25.0% Tier 2 11.3% to 22.8% Tier 3
18.0% Tier 4 18.0% Tier 5 15.0% Tier 6 10.5%

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. Internal Revenue Service
(IRS) plan qualification issues: permitting participation of non-govern-
mental employees in the NYSLERS could jeopardize the Retirement System's
governmental plan status and its exemption from ERISA. This development
could result in the loss of qualified status, which would mean the loss
of tax benefits. This result would substantially impair the System's
value to our more than one million participants.

 
EFFECTIVE DATE:
Immediately.

2021-S5179 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 5179                                                  A. 5824
 
                        2021-2022 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                             February 25, 2021
                                ___________
 
 IN SENATE -- Introduced by Sen. PALUMBO -- read twice and ordered print-
   ed, and when printed to be committed to the Committee on Civil Service
   and Pensions
 
 IN  ASSEMBLY  -- Introduced by M. of A. THIELE -- read once and referred
   to the Committee on Governmental Employees

 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
 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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05803-02-1

 S. 5179                             2                            A. 5824
 
   (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 (NYSLERS).
   If  this  bill  is  enacted during the 2021 legislative session and an
 eligible corporation elects participation, 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,
 2022, will be as follows:
 
           Tier       Rate
            1     12.2% to 25.0%
            2     11.3% to 22.8%
            3         18.0%
            4         18.0%
            5         15.0%
            6         10.5%
 
   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.
   Internal Revenue Service (IRS) plan qualification  issues:  permitting
 participation  of  non-governmental employees in the NYSLERS could jeop-
 ardize  the  Retirement  System's  governmental  plan  status  and   its
 exemption from ERISA. This development could result in the loss of qual-
 ified  status,  which  would  mean the loss of tax benefits. This result
 would substantially impair the System's  value  to  our  more  than  one
 million participants.
   Prior to the enactment of this legislation, we recommend that a favor-
 able ruling be obtained from the IRS stating that these provisions would
 not  harm  the  qualification status of the System. It is estimated that
 the costs to obtain such a ruling would be $28,000 for the  services  of
 the IRS, and $800 per hour for legal consultants
   Summary of relevant resources:
   Membership  data as of March 31, 2020 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2020 actuari-
 al valuation. Distributions and other statistics can  be  found  in  the
 2020  Report  of the Actuary and the 2020 Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in  the  2020
 Annual  Report  to  the  Comptroller  on  Actuarial Assumptions, and the
 Codes, Rules and Regulations  of  the  State  of  New  York:  Audit  and
 Control.

 S. 5179                             3                            A. 5824
 
   The Market Assets and GASB Disclosures are found in the March 31, 2020
 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  fiscal note does not constitute a legal opinion on the viability
 of the proposed change nor is it intended to serve as a  substitute  for
 the professional judgment of an attorney.
   This  estimate,  dated  January  13,  2021,  and intended for use only
 during the  2021  Legislative  Session,  is  Fiscal  Note  No.  2021-35,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.

co-Sponsors

2021-S5179A (ACTIVE) - Details

See Assembly Version of this Bill:: A5824
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Add §31-g, R & SS L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S5134, A6548
2019-2020: S5468, A7399
2023-2024: S4245, A4885

2021-S5179A (ACTIVE) - Summary

Authorizes the participation by free association libraries in the New York state and local employees' retirement system.

2021-S5179A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5179A

SPONSOR: PALUMBO
 
TITLE OF BILL:

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

 
PURPOSE:

The bill would allow additional free association libraries to partic-
ipate in the State retirement system, providing their librarians and
other employees' equity with those free association libraries, which are
currently in the retirement system, as well as with public libraries
operating under other forms of governance.

 
SUMMARY OF PROVISIONS:

Section 1. Adds a new section 31-g to the retirement and social security
law allowing free association libraries, which meet enumerated stand-
ards, to join the retirement system and providing for administration of

the process. To be eligible, libraries must be chartered by the State
Board of Regents, receive the majority of their revenues from public
sources, provide for public voting on both their budgets and their trus-
tees and file appropriate reports with the State Comptroller.

Section 2. Provides the effective date.

 
JUSTIFICATION:

Public libraries in New York generally operate under one of four types
of governance. Some are agencies or departments of a municipality, so
the library staff are employees of the municipality and are thus members
of the retirement system. Others are special districts created by
special State legislation and their retirement system participation may
be established by their enabling legislation.  Others are voter estab-
lished "school district public libraries", which are eligible to partic-
ipate in the State retirement system pursuant to section 31-a of the
retirement and social security law.

The fourth type of public library governance is the free association
library. Free association libraries are subject to the same rights and
responsibilities pursuant to the education law as are public libraries
operating under other types of governance. Funding for these libraries
typically is provided by the municipality (or municipalities) in which
they serve. These libraries receive the same state and federal aid as
other public libraries. The largest and most well-known free association
library is the research library of the New York Public Library which is
owned by the Astor, Lenos and Tilden Foundations. This free association
library is specifically made eligible to participate in the retirement
system by section 32 of the retirement and social security law. There
are also other free association libraries across the State covered by
the provisions of the retirement and social security law which allows
for participation in the retirement system.

Those remaining free association libraries, which currently are not
eligible to participate in the retirement system, are hampered in their
ability to recruit and retain librarians and other staff.  Experienced
staff currently working on other libraries may be reluctant to accept
employment which does not count toward their retirement, while entry
level staff are likely to move to jobs at other libraries or other local
government agencies which participate in the retirement system. Permit-
ting the participation by these remaining libraries in the retirement
system will 'level the playing field' and ensure high quality library
services for citizens in all parts of the State.

 
LEGISLATIVE HISTORY:

2020: S.5468/A.7399 2018: S.5134A/A.6548A

2011: A.574

2010: A.10012

 
FISCAL IMPLICATIONS:

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 (NYSLERS).  If this bill is
enacted during the 2022 legislative session, and an eligible corporation
elects participation, the future annual cost would depend on the retire-
ment plan adopted and the billable salary of the electing corporation.
As a percentage of payroll, we anticipate that the annual contributions
of the affected corporation for the fiscal year ending March 31, 2023,
will be as follows:

Tier Rate

1 8.5% to 17.3%

2 7.9% to 15.8%

3 12.9%

4 12.9%

5 11.0%

6 8.1%

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.

 
EFFECTIVE DATE:
Immediately.

2021-S5179A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 5179--A                                            A. 5824--A
 
                        2021-2022 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                             February 25, 2021
                                ___________
 
 IN  SENATE  --  Introduced  by  Sens.  PALUMBO, JORDAN -- read twice and
   ordered printed, 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, BRABENEC, ASHBY,  DeSTEFA-
   NO, WALCZYK -- 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  commit-
   tee
 
 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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05803-03-2

 S. 5179--A                          2                         A. 5824--A
 
 GATIONS AND BENEFITS AS OTHER MEMBERS OF THE RETIREMENT SYSTEM.  A  FREE
 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 (NYSLERS).
   If  this  bill  is enacted during the 2022 legislative session, and an
 eligible corporation elects participation, 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,
 2023, will be as follows:
 
      Tier           Rate
 
       1        8.5% to 17.3%
       2        7.9% to 15.8%
       3            12.9%
       4            12.9%
       5            11.0%
       6             8.1%
 
   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.
   Internal Revenue Service (IRS) plan qualification  issues:  permitting
 participation  of  non-governmental employees in the NYSLERS could jeop-
 ardize  the  Retirement  System's  governmental  plan  status  and   its
 exemption from ERISA. This development could result in the loss of qual-
 ified  status,  which  would mean the loss of tax benefits.  This result
 would substantially impair the System's  value  to  our  more  than  one
 million participants.
   Prior to the enactment of this legislation, we recommend that a favor-
 able ruling be obtained from the IRS stating that these provisions would
 not  harm  the  qualification status of the System. It is estimated that
 the costs to obtain such a ruling would be $28,000 for the  services  of
 the IRS, and $800 per hour for legal consultants.
   Summary of relevant resources:
   Membership  data as of March 31, 2021 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2021 actuari-
 S. 5179--A                          3                         A. 5824--A
 
 al valuation.  Distributions and other statistics can be  found  in  the
 2021  Report  of the Actuary and the 2021 Comprehensive Annual Financial
 Report.
   The  actuarial  assumptions and methods used are described in the 2020
 and 2021 Annual Report to the Comptroller on Actuarial Assumptions,  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, 2021
 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  fiscal note does not constitute a legal opinion on the viability
 of the proposed change nor is it intended to serve as a  substitute  for
 the professional judgment of an attorney.
   This  estimate, dated March 24, 2022, and intended for use only during
 the 2022 Legislative Session, is Fiscal Note No. 2022-104,  prepared  by
 the Actuary for the New York State and Local Retirement System.

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Senate Bill S5179A

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Sponsored By

Anthony H. Palumbo

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Bill Amendments

co-Sponsors

Daphne Jordan

2021-S5179 - Details

2021-S5179 - Summary

2021-S5179 - Sponsor Memo

2021-S5179 - Bill Text download pdf

co-Sponsors

Daphne Jordan

Alexis Weik

2021-S5179A (ACTIVE) - Details

2021-S5179A (ACTIVE) - Summary

2021-S5179A (ACTIVE) - Sponsor Memo

2021-S5179A (ACTIVE) - Bill Text download pdf

Comments