§ 23-a. Statement of intent. a. This legislation is intended, by means
of a comprehensive reform program, to strengthen the long-term fiscal
health of the retirement system, to reduce the volatility of
contribution rates and to provide budget certainty for participating
employers by addressing current structural problems with respect to the
calculation and payment of employer contributions. There is a need to
address structural problems in the current billing cycles for the state
and local governments with respect to their annual contributions to the
retirement system. The state currently pays its contributions on the
basis of estimates, which are subject to adjustment at a later date
(with interest, if applicable) on the basis of subsequent calculations
of the required contributions. Local governments must currently adopt
budgets based on estimates of the required contributions, but then make
payment of the full amount of the actual contributions that are finally
billed on the basis of subsequent calculations of the required
contributions. In addition, dramatic fluctuations in the performance of
the investment markets have produced unprecedented volatility in
employer contribution rates. These rate fluctuations have been
exacerbated by the lack of a reasonable minimum payment by employers in
years where investment performance was strong and employer rates were
low. In order to enhance the continuing ability of the retirement system
to provide services and benefits for the more than nine hundred forty
thousand members and retirees and for their beneficiaries, this section
provides for measures to (1) enhance the long-term fiscal health of the
retirement system, (2) facilitate the planning and budgeting of state
and participating employer contributions, and (3) ease the volatility of
retirement system employer contribution rates in the future.

b. Notwithstanding the provisions of this chapter or any other
provision of law to the contrary, the comptroller shall have the
authority, in his or her discretion, to implement a comprehensive
structural reform program, which shall consist of all of the following
measures:

1. revision of the schedule pertaining to the valuation, billing and
payment of contributions by the state and participating employers under
which the valuation of the assets and liabilities of the retirement
system undertaken on the first day of a fiscal year shall be used to
determine the contribution rates to be applied to the pensionable
salaries of the state and participating employers earned during such
fiscal year for the payment of contributions due for the next succeeding
fiscal year; and

2. requiring a minimum annual contribution from the state and every
participating employer (exclusive of 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 the state or participating employer is
permitted to pay on an amortized basis) equal to four and one-half
percent of pensionable salaries. Effective immediately upon
implementation by the comptroller of the comprehensive structural reform
program set forth in this section, and in all subsequent years,
participating employers shall pay either the required annual
contribution determined under the revised schedule pertaining to the
valuation, billing and payment of contributions pursuant to paragraph
one of this subdivision, or the required minimum annual contribution of
four and one-half percent of pensionable salaries, whichever is greater;
and

3. notwithstanding any provision of subdivision a of section sixteen
of this article to the contrary, upon the comptroller's implementation
of the measures set forth in this subdivision, all contributions payable
by the state and participating employers under the valuation, billing
and payment schedule implemented under paragraph one of this
subdivision, including the minimum contribution required by paragraph
two of this subdivision, must be paid in full by the state on or before
March first of the then current fiscal year and by participating
employers on the date set forth in subdivision c of section seventeen of
this article.