§ 323-a. Statement of intent. a. This legislation is intended 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 by means of a comprehensive reform program. 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 contribution. 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 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 three
hundred 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 three hundred seventeen of this article.