§ 521. Collection of contributions. 1. The collection of members'
contributions shall be as follows:

a. Each employer shall cause to be deducted on each and every payroll
of a contributor for each and every payroll period, the contribution
payable by such contributor as provided in this article. Each employer
shall certify to the treasurer of said employer on each and every
payroll a statement as voucher for the amounts so deducted.

b. The treasurer of each employer on receipt from the employer of the
voucher for deductions from the salaries of teachers as provided in this
article shall transmit monthly or at such times as the retirement board
shall designate, the amount specified in such voucher to the secretary
of the retirement board. The secretary of the retirement board after
making record of all such receipts shall transmit them to the head of
the division of the treasury in the department of taxation and finance
for use according to the provisions of this article.

But nothing in this section shall prevent the retirement board from
modifying the method of collecting the contribution of members so that
employers may retain the amounts so deducted and have a corresponding
amount deducted from the appropriation for the support of common schools
otherwise payable to them.

2. The collection of employers' contributions shall be made as
follows:

a. Upon the basis of each actuarial determination and appraisal
provided herein, the retirement board shall annually prepare and certify
to the commissioner of education a statement of the total amount
necessary to be paid by all employers for the ensuing fiscal year to the
pension accumulation and expense funds as provided under subdivision two
of section five hundred seventeen and under section five hundred
nineteen of this article. Upon the basis of the rate of contribution for
supplemental retirement allowances, determined in accordance with
section five hundred thirty-two of this article, the retirement board
shall certify to the commissioner of education a statement of the total
amount necessary to be paid by all employers for the ensuing fiscal year
to the supplemental retirement allowance fund. Said certification shall
include interest on amounts necessary to repay advances made to the
supplemental retirement allowance fund pursuant to subdivision f of
section five hundred thirty-two of this article computed from the date
of such advances at the rate determined in accordance with paragraph f
of this subdivision.

b. The commissioner of education shall include in the certificate
which he files with the state comptroller showing the amount of state
funds apportioned to the school districts within each county for the
support of common schools, a statement showing the amount to be
contributed by each employer in each of such counties as required under
this article.

The amount to be contributed by each employer except those who operate
local district pension systems, shall be such percentage of the total
compensation or salaries of all teachers in his employ who are members
of the retirement system as the aggregate amount of the normal and
deficiency contributions for the year shall bear to the total
compensation or salaries paid by all employers, except those who operate
local district pension systems, to all teachers who are members of the
retirement system.

c. The comptroller shall issue his warrant to the custodian of such
fund directing such custodian to credit to the pension accumulation fund
and expense fund respectively, from the appropriation for the support of
common schools the amounts required to be made as contributions to such
funds by the employers as shown by the certificate of the commissioner
of education filed with him as directed in paragraph b of this
subdivision.

d. The comptroller, in issuing his warrant to the custodian for
payment to each county treasurer of that portion of the moneys
apportioned for the support of common schools, shall deduct therefrom an
amount equal to the amount required to be contributed by employers of
such county, as shown by the certificate of the commissioner of
education of this state filed with the comptroller as required by
paragraph b of this subdivision.

e. In order to meet the financial requirements of this article,
employers who obtain funds directly by taxation are hereby authorized
and directed to levy annually such additional taxes as are required to
provide the funds deducted from the amounts apportioned to such
employers from the appropriation of the state for the support of the
common schools.

f. Employers whose payments from the moneys apportioned from the state
for the support of common schools are insufficient to pay the amount due
and owing the system, or who do not receive such payments, shall pay the
system each year the amount of contributions due and owing from the
employer pursuant to this article within thirty days from the date a
bill is mailed by the system. Interest, at a rate equal to the average
yield payable on fifty-two week United States treasury bills on June
thirtieth immediately preceding the day the bill is mailed by the
system, shall accrue on the outstanding amount due and owing commencing
with the thirty-first day after the bill is mailed.

g. Whenever the system determines the contributions made by an
employer are less than the percentage of total compensation or salaries
of members of the system in the employ of such employer, as required by
this article, such employer shall pay the system such deficiency within
thirty days from the date a bill is mailed by the system. Interest, at a
rate equal to the average yield payable on fifty-two week United States
treasury bills on June thirtieth immediately preceding the day before
the bill is mailed by the system, shall accrue on the outstanding amount
due and owing commencing with the thirty-first day after the bill is
mailed.

h. Notwithstanding any provision of law to the contrary, commencing
with the payments made in the fiscal year beginning July first, nineteen
hundred ninety, and each fiscal year thereafter, the employer
contributions due and payable as determined pursuant to the provisions
of this article and the employee contributions due and payable pursuant
to this article and articles fourteen and fifteen of the retirement and
social security law, on account of compensation paid in the fiscal year
immediately preceding, and those employer contributions due and payable
in each fiscal year pursuant to chapter six hundred sixty-five of the
laws of nineteen hundred eighty-four shall be made to the retirement
system and collected in the manner set forth in this section each fiscal
year in three payments, each equal to thirty-three and one-third percent
of the total amount due for such fiscal year. Such payments shall be
paid on September fifteenth, October fifteenth, and November fifteenth
of each fiscal year. If a participating employer underpaid its
obligation to the retirement system, such underpayment as determined by
the retirement system shall be deducted from the amounts apportioned to
such employer from the appropriation of the state for the support of the
common schools due and payable the next April fifteenth. Employers whose
payments from such appropriation are insufficient to pay the amount due
and owing the system, or who do not receive such payments, shall be
billed by the system for such underpayment and shall pay the system the
amount due within thirty days from the date a bill is mailed by the
system. The amount of any employer overpayment of its obligation to the
retirement system, as determined by such system shall be a credit to the
employer and shall reduce by an equal amount thereof the initial payment
to be made by such employer to such system on the next succeeding
September fifteenth.

i. Notwithstanding any provision of law to the contrary, the employer
and employee contributions due and payable in the nineteen hundred
eighty-nine--ninety fiscal year on account of compensation paid in the
nineteen hundred eighty-eight--eighty-nine fiscal year which were paid
prior to April first, nineteen hundred ninety shall be deemed (to the
extent such amount is sufficient) to have consisted of all the employee
contributions due and payable pursuant to this article and articles
fourteen and fifteen of the retirement and social security law in the
nineteen hundred eighty-nine--ninety fiscal year and those employer
contributions due and payable in such fiscal year pursuant to chapter
six hundred sixty-five of the laws of nineteen hundred eighty-four; and
the remaining employer contributions so paid shall be applied evenly to
the payments due and payable on September fifteenth, nineteen hundred
ninety, October fifteenth, nineteen hundred ninety and November
fifteenth, nineteen hundred ninety and the employer contributions
amounting to eight hundred seventy-three million seven hundred eleven
thousand six hundred fifteen dollars ($873,711,615), due and payable
pursuant to the provisions of this section in the nineteen hundred
eighty-nine--ninety fiscal year on account of compensation paid in
nineteen hundred eighty-eight--eighty-nine fiscal year, except those
employer contributions due and payable in such fiscal year pursuant to
chapter six hundred sixty-five of the laws of nineteen hundred
eighty-four, shall be deferred and payment shall be made to the
retirement system in fifteen equal annual payments of ninety-eight
million five hundred thirty-seven thousand five hundred seven dollars
($98,537,507) on October fifteenth, commencing on October fifteenth,
nineteen hundred ninety. Such payments are calculated at an interest
rate of eight percent per annum. Provided, however, the retirement board
is directed to permit the pre-payment of the amounts outstanding under
this paragraph. The retirement board shall: (1) On or before September
first, nineteen hundred ninety, in addition to the amount due for the
current fiscal year billing and for the payment of the amortized annual
installment, furnish the total amount due and be authorized to accept
pre-payment in full of said amount by October fifteenth, nineteen
hundred ninety. (2) On or before each September first thereafter, in
addition to the amount due for the current fiscal year billing and for
the payment of the annual amortized installment, furnish the total
amount still outstanding and be authorized to accept the pre-payment of
any portion of the balance remaining to be paid by October fifteenth of
that year.

j. Prior to June first, nineteen hundred ninety, the valuation rate of
interest adopted by the retirement board on April twenty-seventh,
nineteen hundred eighty-nine, may be retroactively revised to eight
percent by the retirement board, as recommended by the actuary, as if
adopted at the April twenty-seventh, nineteen hundred eighty-nine board
meeting, and the employer contribution rate, adopted by the retirement
board at the April twenty-seventh, nineteen hundred eighty-nine board
meeting, revised by the retirement board at the July twenty-seventh,
nineteen hundred eighty-nine board meeting, may be retroactively amended
by the retirement board as if adopted at the July twenty-seventh,
nineteen hundred eighty-nine board meeting and applied to contributions
paid in the nineteen hundred ninety--ninety-one fiscal year.
Notwithstanding any provision of law to the contrary, the actions of the
retirement board pursuant to the provisions of this paragraph shall be
deemed reasonable, prudent and proper. No member of the retirement
board, officer, or employee of the New York state teachers' retirement
system shall incur or suffer any liability whatsoever by reason of any
actions pursuant to this paragraph, and such system shall save harmless
and indemnify all members of the retirement board, its officers and
employees from financial loss arising out of any claim, demand, suit,
action or judgment as a result of the actions taken pursuant to this
paragraph provided that such person shall, within five days after the
date on which he is served with any summons, complaint, process, notice,
demand, claim or pleading, deliver the original or a true copy thereof
to the legal advisor of such system. Upon such delivery, the legal
advisor of such system may assume control of the representation of such
person in connection with such claim, demand, suit, action or
proceeding. Such person shall cooperate fully with the legal advisor of
the system or any other person designated to assume such defense in
respect of such representation or defense.

k. The retirement board is authorized to adopt procedures and/or to
promulgate rules and regulations as it deems necessary to adjust and
reconcile any payments from employers to actual amounts due whether such
payments were received prior or subsequent to the effective date of the
chapter of the laws of nineteen hundred ninety which added this
paragraph to this section.

l. The provisions of paragraphs h and i of this subdivision shall
constitute a contract and the rights of the New York state teachers'
retirement system thereunder shall not be impaired in any way
whatsoever.

m. In addition to any other payment or collection procedure provided
by this article, if the amounts credited from the appropriation for the
support of common schools are insufficient to fully cover the amounts to
be contributed by the employers, the retirement board is authorized to
certify the unpaid amount to the state comptroller, and the state
comptroller shall, to the extent not otherwise prohibited by law,
withhold such amount from any succeeding payment from any other form of
state aid provided to the employer. If any employer fails to pay the
amounts required to be contributed pursuant to this section, the
retirement system shall be entitled to reasonable attorney fees and
other expenses incurred to collect such amounts due and owing. Fees
shall be determined pursuant to prevailing market rates for the kind and
quality of the services furnished.

n. Notwithstanding any other provision of law to the contrary, the
board of education or trustees of a school district which is a
participating employer, which has elected to make payments of the
employer contributions due and payable to the retirement system pursuant
to paragraph i of this subdivision in amortized annual installments, and
which has determined to make pre-payment of the total amount of such
contributions outstanding in accordance with said paragraph i, may adopt
a bond resolution authorizing the refinancing of such debt by the
issuance of bonds in the amount of such pre-payment without conducting a
vote on a tax to be collected in installments, provided that such
refinancing will result in savings to the school district, as certified
by the state comptroller, and provided further that the issuance of such
obligations otherwise complies with the requirements of the local
finance law and this chapter.

3. Stable contribution option for participating educational employers
for the two thousand thirteen - two thousand fourteen plan year. a. In
addition to the definitions in section five hundred one of this article,
when used in this subdivision:

(1) "participating educational employer" shall mean a school district
or board of cooperative educational services which elects to pay the
stable contribution amount in the manner provided in this subdivision;

(2) "stable contribution amount" shall mean an amount equal to the
stable contribution rate multiplied by the pensionable salary base
(exclusive of payments for group term life insurance, deficiency
contributions, adjustments relating to prior fiscal years' obligations,
obligations pertaining to retirement incentives or any other obligations
that a participating educational employer is permitted to pay on an
amortized basis);

(3) "stable contribution rate" shall mean fourteen percent for the two
thousand thirteen - two thousand fourteen plan year and the two thousand
fourteen - two thousand fifteen plan year and the rate as adopted by the
retirement board in accordance with paragraph h of this subdivision; and

(4) "deferred employer contribution amount" shall mean an amount
adequate to fund the benefits for active and retired members associated
with such participating educational employer had such participating
educational employer not elected the provisions of this subdivision.
Such deferred employer contribution amount shall be calculated for each
year of participation in the stable contribution option with associated
interest determined specific to each applicable plan year's deferred
amount.

b. Notwithstanding the provisions of this chapter or any other law to
the contrary, the retirement board, in its discretion, shall have
authority to implement the provisions of this subdivision. If the
retirement board elects to implement the provisions of this subdivision,
the provisions shall apply to the payment of participating educational
employer contributions in the plan year commencing July first, two
thousand thirteen, for the pension bill paid on September fifteenth,
October fifteenth, and November fifteenth of two thousand fourteen, and
for the subsequent six plan years. If a participating educational
employer does not elect the stable contribution option in the fiscal
year commencing on July first, two thousand thirteen for the pension
bill paid on September fifteenth, October fifteenth, and November
fifteenth of two thousand fourteen, it shall not be eligible to elect
the stable contribution option in any succeeding plan year.

c. For each of the seven plan years to which the provisions of this
subdivision apply, the retirement board shall use a stable contribution
rate established by the retirement board for participating educational
employers.

d. If the retirement board, in its discretion, decides to adopt a
stable contribution option pursuant to this subdivision, the retirement
board shall determine the stable contribution amount in each plan year
for a participating educational employer pursuant to subparagraph two of
paragraph a of this subdivision. Such stable contribution amount shall
be in lieu of a participating educational employer's actuarially
required contribution rate of normal and administrative contributions
pursuant to sections five hundred seventeen and five hundred nineteen of
this article for the plan year commencing July first, two thousand
thirteen, and for the next six subsequent plan years.

e. Any participating educational employer which elects to pay the
stable contribution amount pursuant to this subdivision shall pay the
amount based on the stable contribution rate for a period of seven years
and such option shall be available to participating educational
employers from the two thousand thirteen - two thousand fourteen plan
year through the two thousand nineteen - two thousand twenty plan year.
In the sixth plan year, the two thousand eighteen - two thousand
nineteen plan year, the participating educational employer shall pay the
stable contribution rate and, in addition, commence payment for deferred
employer contributions in accordance with paragraph j of this
subdivision. Commencing with the plan year beginning July first, two
thousand twenty, the participating educational employer shall resume
payment of the actuarially required contribution rate of normal and
administrative contributions pursuant to sections five hundred seventeen
and five hundred nineteen of this article and, in addition, any payment
for deferred employer contribution amounts in accordance with paragraphs
j and k of this subdivision.

f. A participating educational employer paying a stable contribution
amount shall remit, commencing with the July first, two thousand
thirteen plan year, an amount determined by the retirement board by
adding the following two amounts together:

(1) the stable contribution amount calculated pursuant to this
subdivision; and

(2) payments for group term life insurance, deficiency payments,
adjustments relating to prior fiscal years' obligations and obligations
pertaining to retirement incentives or any other obligations that a
participating educational employer is permitted to pay on an amortized
basis.

g. The stable contribution amount must be paid in full by
participating educational employers on the dates specified in paragraph
h of subdivision two of this section.

h. Prior to July first, two thousand fifteen and July first, two
thousand seventeen the retirement board is authorized to evaluate the
stable contribution rate used to calculate participating educational
employer stable contribution amounts. Such evaluation shall be based on
a projection of assets and liabilities so as to ensure that
contributions by participating educational employers which participate
in the stable contribution option are adequate to ensure that system
assets are sufficient to fund benefits for active and retired members.
The retirement board is authorized to increase the stable contribution
rate by up to two percentage points on July first, two thousand fifteen
and on July first, two thousand seventeen. The revised stable
contribution rate resulting from the foregoing evaluations and July
first, two thousand fifteen and July first, two thousand seventeen
stable rate increases may not, in combination, exceed eighteen percent.
The retirement board is authorized to decrease the stable contribution
rate, if warranted, but in no event shall the stable contribution rate
be less than fourteen percent.

i. A participating educational employer may elect to terminate
participation in the stable contribution option and resume payment of
the actuarially required contribution of normal and administrative
contributions in accordance with sections five hundred seventeen and
five hundred nineteen of this article. Provided, however, that such
participating educational employer which elects to terminate
participation shall make a reconciliation contribution to the retirement
system, at an amount to be determined by the retirement board, adequate
to fund the benefits for active and retired members associated with such
participating educational employer had such participating educational
employer not elected the provisions of this subdivision. Such
reconciliation contribution shall be made over a period not to exceed
five years and shall be made in addition to the normal and
administrative contributions pursuant to sections five hundred seventeen
and five hundred nineteen of this article for the plan year in which
such participating educational employer chooses to resume payment of the
normal and administrative contributions pursuant to sections five
hundred seventeen and five hundred nineteen of this article. For the
purposes of determining the reconciliation contribution amount, the
retirement board shall assume interest on the deferred employer
contribution amount at a rate which approximates the monthly average
yield on United States treasury securities at ten-year constant maturity
for the twelve-month period preceding August first of each year plus one
percentage point. The interest rate associated with such deferred
employer contribution amount shall be specific to each applicable plan
year's deferred amount.

j. In the sixth plan year, commencing July first, two thousand
eighteen, all participating educational employers having elected the
stable contribution option shall continue to contribute the stable
contribution amount to the retirement system and remit to the retirement
system the accrued deferred employer contributions accumulated in the
first five plan years. The stable payment of the deferred employer
contribution accrued by the participating educational employer shall be
paid to the retirement system in equal annual installments over a
five-year period, with interest on the unpaid portion to be based on the
monthly average yield on United States treasury securities at a ten-year
constant maturity for the twelve-month period preceding August first of
each year plus one percentage point. The interest rate associated with
such deferred employer contribution amount shall be specific to the rate
as measured on August first of the applicable plan year to such deferred
amount. Payments of the stable installments shall be made in the same
manner as other employer contributions as prescribed in this article.
Nothing in this subdivision shall be construed as prohibiting such
participating educational employer from making a reconciliation
contribution in accordance with paragraph i of this subdivision.

k. In the eighth plan year, commencing July first, two thousand
twenty, all participating educational employers having elected the
stable contribution option shall resume payment of the actuarially
required contribution rate of normal and administrative contributions in
accordance with section five hundred seventeen and five hundred nineteen
of this article. Additionally, such employer will remit to the
retirement system the accrued deferred employer contributions
accumulated during the plan years commencing July first, two thousand
eighteen and July first, two thousand nineteen of the stable
contribution option. The stable payment of the deferred employer
contribution accrued by the participating educational employer shall be
paid to the retirement system in equal annual installments over a
five-year period with interest on the unpaid portion to be based on the
monthly average yield on United States treasury securities at a ten-year
constant maturity for the twelve-month period preceding August first of
each year plus one percentage point. The interest rate associated with
such deferred employer contribution amount shall be specific to the rate
as measured on August first of the applicable plan year to such deferred
amount. Payments of the stable installments shall be made in the same
manner as other employer contributions as prescribed in this article.
Nothing in this subdivision shall be construed as prohibiting such
participating educational employer from making a reconciliation
contribution in accordance with paragraph i of this subdivision.

l. Notwithstanding the provisions of this subdivision, if the
retirement board decides to adopt a stable contribution option, in
accordance with this subdivision, and the funded status of the
retirement system reaches a threshold below eighty percent at the end of
any plan year during the seven plan year term of this option, the option
shall cease and participating educational employers who have elected the
stable contribution option shall resume payment of the actuarially
required contribution rate of normal and administrative contributions in
accordance with section five hundred seventeen and five hundred nineteen
of this article. Additionally, such employer will make a reconciliation
contribution to the retirement system, at an amount to be determined by
the retirement board, adequate to fund the benefits for active and
retired members associated with such participating educational employer
had such participating educational employer not elected the provisions
of this section. The payment of the deferred employer contribution
accrued by the participating educational employer shall be paid to the
retirement system in equal annual installments over a five-year period
with interest on the unpaid portion to be based on the monthly average
yield on United States treasury securities at a ten-year constant
maturity for the twelve-month period preceding August first of each year
plus one percentage point. The interest rate associated with such
deferred employer contribution amount shall be specific to the rate as
measured on August first of the applicable plan year to such deferred
amount. Payments of the stable installments shall be made in the same
manner as other employer contributions as prescribed in this article.

m. The retirement board is authorized to promulgate rules and
regulations for implementation of this subdivision.