N.Y. General Municipal Law § 6-j: Workmen's compensation reserve fund

§ 6-j. Workmen's compensation reserve fund. 1. The governing board of

any municipal corporation, school district or fire district, which is,

or shall hereafter become a self-insurer under the provisions of

subdivision four of section fifty of the workers' compensation law or

section thirty of the volunteer firefighters' benefit law may establish

a reserve fund to be known as the workers' compensation reserve fund of

such municipal corporation, school district or fire district.

2. There may be paid into any such fund (a) such amounts as may be

provided therefor by budgetary appropriations and (b) such other sums as

may be legally appropriated.

3. The moneys in such fund shall be deposited and secured in the

manner provided by section ten of this article. The money in such fund

so deposited shall be accounted for separate and apart from all other

funds of the municipality, school district or fire district, in the same

manner as provided in subdivision ten of section six-c of this article.

The governing board, or the chief fiscal officer of such municipality,

school district or fire district, if the governing board shall delegate

such duty to him, may invest the moneys in such fund in the manner

provided in section eleven of this article. Any interest earned or

capital gain realized on the money so deposited or invested shall accrue

to and become part of such fund. The separate identity of such fund

shall be maintained whether its assets consist of cash or investments or

both.

4. An expenditure shall be made from such fund only for the payment of

compensation and benefits, medical, hospital or other expense authorized

by article two of the workers' compensation law and by the volunteer

firefighters' benefit law and expenses of administering the

self-insurance program for such municipal corporation, school district

or fire district.

5. If at the end of any fiscal year the moneys in such fund shall

exceed the amounts required to be paid pursuant to subdivision four of

this section plus any additional amount required to pay all pending

claims, the governing board of the municipal corporation, school

district, board of cooperative educational services or fire district

may, within sixty days of the close of such fiscal year, elect to: (a)

transfer said excess, or any part thereof, to any fund authorized by

this article or section thirty-six hundred fifty-one of the education

law; and/or (b) apply said excess, or any part thereof to the budget

appropriation of the next succeeding fiscal year.

6. If the municipal corporation, school district or fire district

shall, after the establishment of such fund, cease to be a self-insurer,

the moneys remaining in such fund may be transferred to any other fund

authorized by this chapter or section thirty-six hundred fifty-one of

the education law only to the extent that the moneys in such fund shall

exceed in amount the sum sufficient to pay all expenditures authorized

in paragraph numbered four, both accrued and contingent.