New York Laws
Title 3 - Funds of the System; Members' Contributions and Employers' Contributions
23 - Employers' Contributions and Their Use; Pension Accumulation Fund.

(a) In the case of employers participating on July first, nineteen
hundred forty-eight, the rate of such contribution shall continue to be
the rate theretofore determined pursuant to law. Such rate may be
varied, however, if an adjustment is necessitated by reason of the
allowance of additional prior service credits.
(b) In the case of an employer electing to participate after July
first, nineteen hundred forty-eight and before March thirty-first,
nineteen hundred ninety-nine, an initial actuarial valuation shall be
made to determine the accrued liability of such employer by reasons of
the prior service of those of its employees who are members of the
retirement system. The rate of deficiency contribution for such employer
shall then be determined. Such rate shall be that proportion of the
total annual compensation of such employees as is equivalent to four per
centum of such accrued liability. Such rate shall be applied to the
employer's payroll of members, as used in the annual valuation. The cost
of making such initial valuation shall be assessed against and paid by
such employer.
Notwithstanding the above, for employers who commence participation in
the retirement system on or after April first, nineteen hundred
ninety-nine, the accrued liability shall be amortized in equal annual
installments over a twenty-five year period. With respect to such
employers the cost of making such initial valuation shall be assessed
against and paid by the employer. The provisions of subdivisions c, d
and e of this section shall not apply to employers who commence
participation in the retirement system on or after April first, nineteen
hundred ninety-nine.
(c) The amount of each annual deficiency contribution payable by every
employer shall be at least three per centum greater than the amount for
the preceding year.
(d) The comptroller shall approve the discontinuance of the state's
deficiency contribution on account of members employed by it when:
(1) The total amount in the pension accumulation fund on account of
all members, and
(2) The present value of future deficiency contributions still to be
paid by other employers, and
(3) The present value of future normal contributions, on the basis of
the rate of normal contribution then in effect, shall equal the then
present value of the total liability of such fund on the basis of the
tables then in use.
(e) Unless previously discontinued, or unless hereafter discontinued
pursuant to other provisions of law, the deficiency contribution of a
participating employer shall be discontinued when the total amount of
deficiency contributions paid by such employer at least equals or shall
hereafter equal such percentum of its initial accrued liability computed
by the actuary as shall equal that percentum of the state's initial
accrued liability paid by deficiency contributions during the period
equal to the period last determined by the actuary as the deficiency
payment period. Nothing herein contained shall be deemed to give any
participating employer any valid claim or cause of action for refund or
credit for any sum or sums paid or to be paid for fiscal years prior to
and including the fiscal year ending March thirty-first, nineteen
hundred sixty-six nor to excuse any participating employer from the
payment of any contributions for such fiscal years.
3. Administration contribution.
(a) The expenses of the retirement system, including an amount
allocated to amortize over a period of thirty years, with interest, the
cost of construction of the retirement system building, and the cost of
maintenance of such building, for each fiscal year shall be determined
at the close of each such year. The ratio of such expenses to the total
compensation of all members, as used in the actuarial valuation, shall
be the rate of such administration contribution. Such rate shall be
applied to each employer's payroll of members, as used in the annual
valuation.
(b) All such expenses shall be paid out of the pension accumulation
fund which shall be reimbursed through administration contributions and
other monies received from employers pursuant to this article.
(c) Notwithstanding any other provision of this subdivision or any
other law, the administrative contribution for a year, as determined
pursuant to paragraph one of subdivision b of this section, shall be
paid from the pension accumulation fund if payment from such fund will
not affect the normal contribution for such year.
c. Additional contributions shall be made in accordance therewith by
employers obligated to contribute to the retirement system pursuant to
any other section of this article.
d. When a pension or a pension-providing-for-increased-take-home-pay,
if any, becomes payable to or on account of any member, a reserve, in an
amount computed by the actuary to be necessary to provide the pension or
pension-providing-for-increased-take-home-pay, if any, granted in each
such case, shall be transferred from the pension accumulation fund to
the pension reserve fund.
e. Whenever the comptroller, upon recommendation by the actuary, shall
determine that it is necessary to increase the reserves held in the
annuity reserve fund or the pension reserve fund, he may direct that the
amount so needed shall be transferred thereto from the pension
accumulation fund.
f. The amount of regular interest which is to be credited to the
annuity savings fund, the annuity reserve fund and the pension reserve
fund, and the amount of special interest, if any, which shall be
credited to the annuity savings accounts in the annuity savings fund,

shall be determined after the close of each fiscal year. Each such
amount thereupon shall be transferred from the pension accumulation fund
to each such fund.

Structure New York Laws