N.Y. General Business Law § 1304: Duties of the board

§ 1304. Duties of the board. In addition to the other duties and

responsibilities stated in this article, the board shall, itself or

through the use of appropriate financial organizations as managers:

1. Cause the program to be designed, established and operated in a

manner that:

(a) accords with best practices for retirement savings vehicles;

(b) maximizes participation, savings, and sound investment practices

including considering the use of automatic enrollment as allowed under

federal law;

(c) maximizes simplicity, including ease of administration for

participating employers and enrollees;

(d) provides an efficient product to enrollees by pooling investment

funds;

(e) ensures the portability of benefits; and

(f) provides for the deaccumulation of enrollee assets in a manner

that provides a financial benefit in retirement.

2. Explore and establish or authorize investment options, subject to

this article, that offer enrollees returns on contributions and the

conversion of individual retirement savings account balances to secure

retirement income without incurring debt or liabilities to the state.

3. Establish or authorize the process by which interest, investment

earnings, and investment losses are allocated to individual program

accounts on a pro rata basis and are computed at the interest rate on

the balance of an individual's account.

4. Make and enter into contracts necessary for the administration of

the program and fund, including, but not limited to, retaining and

contracting with investment managers, financial organizations, other

financial and service providers, consultants, actuaries, counsel,

auditors, third-party administrators, and other professionals as

necessary.

5. Conduct a periodic review of the performance of any financial

organizations, including, but not limited to, a review of returns, fees,

and customer service. A copy of reviews shall be posted to the program's

Internet website.

6. Cause moneys in the program to be held and invested as pooled

investments or otherwise, with a view to achieving cost savings through

efficiencies and economies of scale.

7. Evaluate and establish or authorize the process for:

(a) an employee to contribute a portion of his or her wages to the

program via payroll deduction; and

(b) the enrollment of participating employers in the program.

7-a. Evaluate and establish or authorize a process by which an

individual or an employee of a nonparticipating employer may enroll in,

make contributions to and otherwise participate in the program.

8. The board may contract with financial organizations and third-party

administrators with the capability to receive and process employee

information and contributions for payroll deduction IRA or similar

arrangements.

9. Evaluate and establish or authorize the process for enrollment

including the process by which an employee may opt not to participate in

the program, select a contribution level, select an investment option,

and terminate participation in the program.

10. Evaluate, or cause to be evaluated, the need for, and procure as

needed, insurance against any and all loss in connection with the

property, assets, or activities of the program, and indemnify as needed

each member of the board from personal loss or liability resulting from

a member's action or inaction as a member of the board.

11. Make provisions for the payment of administrative costs and

expenses for the creation, management, and operation of the program.

Subject to appropriation, the state may pay administrative costs

associated with the creation and management of the program until

sufficient assets are available in the program for that purpose.

Thereafter, all administrative costs of the program, including repayment

of any start-up funds provided by the state, shall be paid only out of

moneys on deposit therein. However, private funds or federal funding

received in order to implement the program until it is self-sustaining

shall not be repaid unless those funds were offered contingent upon the

promise of such repayment. The board shall keep its annual

administrative expenses as low as possible.

12. Allocate administrative fees to individual retirement accounts in

the program on a pro rata basis.

13. Set or authorize minimum and maximum contribution levels in

accordance with limits established for IRAs by the Internal Revenue

Code.

14. Facilitate education and outreach to employers and employees.

15. Facilitate compliance by the program with all applicable

requirements for the program under the Internal Revenue Code, including

tax qualification requirements or any other applicable legal, financial

reporting and accounting requirements.

16. Carry out the duties and obligations of the program in an

effective, efficient, and low-cost manner.

17. Exercise any and all other powers reasonably necessary for the

effectuation of the purposes, objectives, and provisions of this

article.

18. Determine or authorize withdrawal provisions, such as economic

hardships, portability and leakage.

19. Determine employee rights and enforcement of penalties.

20. Delegate such authority and responsibility for the development and

implementation of the program to the department of taxation and finance

as the board deems proper.