§ 6-r. Retirement contribution reserve funds 1. As used in this
section:

a. "Municipal corporation" means a municipal corporation as defined in
section two of this chapter, school district (except a school district
in a city with a population of one hundred twenty-five thousand or
more), board of cooperative educational services, fire district,
district corporation, police district, and special improvement district
governed by a separate board of commissioners.

b. "Participating employer" means: (i) a participating employer as
defined in subdivision twenty of section two of the retirement and
social security law or in subdivision twenty of section three hundred
two of such law; or (ii) a participating employer as defined in
subdivision three of section five hundred one of the education law.

c. "Retirement contribution" shall mean all or any portion of the
amount payable by a municipal corporation to: (i) either the New York
state and local employees' retirement system or the New York state and
local police and fire retirement system pursuant to section seventeen or
three hundred seventeen of the retirement and social security law; or
(ii) the New York state teachers' retirement system pursuant to section
five hundred twenty-one of the education law.

2. The governing board of any municipal corporation which is also a
participating employer by resolution may establish a retirement
contribution reserve fund for the purpose of (a) financing retirement
contributions, and/or (b) in the case of a municipal corporation which
is a participating employer as defined in subdivision three of section
five hundred one of the education law, financing appropriations
authorized by law in order to offset all or a portion of the amount
deducted from the moneys apportioned to the municipal corporation from
the state for the support of common schools pursuant to section five
hundred twenty-one of the education law.

2-a. With respect to a municipal corporation which is a participating
employer as defined in subdivision three of section five hundred one of
the education law, which elects to utilize a retirement contribution
reserve fund (a) to finance retirement contributions to the New York
state teachers' retirement system pursuant to section five hundred
twenty-one of the education law and/or (b) to offset all or a portion of
the amount deducted from the moneys apportioned to the municipal
corporation from the state for the support of common schools pursuant to
section five hundred twenty-one of the education law, such municipal
corporation shall establish a sub-fund within the retirement
contribution reserve fund, which shall be separately administered
consistent with the provisions of this section. Such municipal
corporation may pay into such sub-fund during any particular fiscal year
an amount not to exceed two per centum of the total compensation or
salaries of all teachers in the employ of said municipal corporation who
are members of the New York state teachers' retirement system paid
during the immediately preceding fiscal year. The balance of such
sub-fund may not exceed ten per centum of the total compensation or
salaries of all teachers in the employ of the municipal corporation who
are members of the New York state teachers' retirement system paid
during the immediately preceding fiscal year. For the purposes of this
subdivision, the term "teacher" shall have the same meaning as such term
is defined under subdivision four of section five hundred one of the
education law.

3. There may be paid into a retirement contribution reserve fund:

a. such amounts as may be provided therefor by budgetary appropriation
or raised by tax therefor;

b. such revenues as are not required by law to be paid into any other
fund or account;

c. such other funds as may be legally appropriated; and

d. notwithstanding any law to the contrary, such amounts as may be
transferred from a reserve fund established pursuant to section six-c,
six-d, six-e, six-f or six-g of this article comprised of moneys raised
from the same tax base as the moneys in the retirement contribution
reserve fund, or a reserve fund established pursuant to section
thirty-six hundred fifty-one of the education law, provided, that any
such transfer shall only be made by resolution of the governing board of
such municipal corporation adopted after a public hearing held on at
least fifteen days prior published notice in the official newspaper of
the municipal corporation or, if the municipal corporation does not have
an official newspaper, in at least one newspaper having general
circulation in the municipal corporation.

4. The moneys in a retirement contribution reserve fund shall be
deposited and secured in the manner provided by section ten of this
article. The governing board of such municipal corporation, or the chief
fiscal officer thereof if the governing board shall delegate such duty
to him or her, may invest the moneys in such fund in the manner provided
by section eleven of this article. Any interest earned or capital gain
realized on the money so deposited or invested shall accrue to and
become part of such fund.

5. The governing board of such municipal corporation by resolution may
authorize expenditures from a retirement contribution reserve fund.
Except as otherwise provided by law, moneys in a retirement contribution
reserve fund may only be expended (a) to finance retirement
contributions, and/or (b) in the case of a municipal corporation which
is a participating employer, as defined in subdivision three of section
five hundred one of the education law, for appropriations authorized by
law in order to offset all or a portion of the amount deducted from the
moneys apportioned to the participating employer from the state for the
support of common schools pursuant to section five hundred twenty-one of
the education law. With respect to a municipal corporation which is a
participating employer as defined in subdivision three of section five
hundred one of the education law, expenditures from the retirement
contribution reserve fund to finance retirement contributions to the New
York State teachers' retirement system pursuant to section five hundred
twenty-one of the education law and/or to offset all or a portion of the
amount deducted from the moneys apportioned to the municipal corporation
from the state for the support of common schools pursuant to section
five hundred twenty-one of the education law may only be made from the
sub-fund established pursuant to subdivision two-a of this section.

6. The governing board of such municipal corporation by resolution may
authorize the transfer of a portion of the moneys in a retirement
contribution reserve fund to a reserve fund of the municipal corporation
established pursuant to section six-c, six-d, six-e, six-f or six-g of
this article comprised of moneys raised from the same tax base as the
moneys in the retirement contribution reserve fund, or a reserve fund
established pursuant to section thirty-six hundred fifty-one of the
education law, provided, that any such transfer shall only be made by
resolution of the governing board of such municipal corporation adopted
after a public hearing held on at least fifteen days prior published
notice in the official newspaper of the municipal corporation or, if the
municipal corporation does not have an official newspaper, in at least
one newspaper having general circulation in the municipal corporation.

7. The chief fiscal officer of such municipal corporation shall
account for a retirement contribution reserve fund separate and apart
from all other funds of the municipal corporation. Such accounting shall
show: the source, date and amount of each sum paid into the fund; the
interest earned by such fund; capital gains or losses resulting from the
sale of investments of this fund; the order, purpose thereof, date and
amount of each payment from this fund; the assets of the fund,
indicating cash balance and a schedule of investments. The chief fiscal
officer, within sixty days of the end of each fiscal year, shall furnish
a detailed report of the operation and condition of this fund to the
governing board.

8. The members of the governing board of such municipal corporation
are hereby declared trustees of a retirement contribution reserve fund
and shall be subject to all the duties and responsibilities imposed by
law on trustees, and such duties and responsibilities may be enforced by
the municipal corporation, as the case may be, or by any board,
commission, agency, officer or taxpayer thereof.

9. No member of the governing board of such municipal corporation
shall:

(a) authorize a withdrawal from a retirement contribution reserve fund
for any purpose except as provided in this section; or

(b) expend any money withdrawn from such fund for a purpose other than
as provided in this section.

Any member of the governing board who violates the provisions of this
subdivision shall be guilty of a misdemeanor.

10. The governing board of such municipal corporation by resolution
may determine that a retirement contribution reserve fund is no longer
needed and terminate the fund. Such resolution shall transfer any moneys
remaining in such fund to one or more reserve funds of the municipal
corporation established pursuant to section six-c, six-d, six-e, six-f
or six-g of this article comprised of moneys raised from the same tax
base as the moneys in the retirement contribution reserve fund, or one
or more reserve funds established pursuant to section thirty-six hundred
fifty-one of the education law.

11. The governing board of a municipal corporation which is a
participating employer as defined in subdivision three of section five
hundred one of the education law by resolution may (a) authorize the
transfer of all or a portion of the monies in the separately
administered sub-fund as established under subdivision two-a of this
section to the retirement contribution reserve fund, and/or (b)
authorize the transfer of all or a portion of the monies in the
retirement contribution reserve fund to the separately administered
sub-fund as provided in subdivision two-a of this section, subject to
the limits on annual payments into the sub-fund and the balance of the
sub-fund specified by subdivision two-a of this section.