New York Laws
Article 11 - State Teachers' Retirement System for Public School Teachers
521 - Collection of Contributions.

(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.

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