N.Y. General Municipal Law § 6-r: Retirement contribution reserve funds 1

§ 6-r. Retirement contribution reserve funds 1. As used in this

section:

a. "Municipal corporation" means a municipal corporation as defined in

section two of this chapter, school district (except a school district

in a city with a population of one hundred twenty-five thousand or

more), board of cooperative educational services, fire district,

district corporation, police district, and special improvement district

governed by a separate board of commissioners.

b. "Participating employer" means: (i) a participating employer as

defined in subdivision twenty of section two of the retirement and

social security law or in subdivision twenty of section three hundred

two of such law; or (ii) a participating employer as defined in

subdivision three of section five hundred one of the education law.

c. "Retirement contribution" shall mean all or any portion of the

amount payable by a municipal corporation to: (i) either the New York

state and local employees' retirement system or the New York state and

local police and fire retirement system pursuant to section seventeen or

three hundred seventeen of the retirement and social security law; or

(ii) the New York state teachers' retirement system pursuant to section

five hundred twenty-one of the education law.

2. The governing board of any municipal corporation which is also a

participating employer by resolution may establish a retirement

contribution reserve fund for the purpose of (a) financing retirement

contributions, and/or (b) in the case of a municipal corporation which

is a participating employer as defined in subdivision three of section

five hundred one of the education law, financing appropriations

authorized by law in order to offset all or a portion of the amount

deducted from the moneys apportioned to the municipal corporation from

the state for the support of common schools pursuant to section five

hundred twenty-one of the education law.

2-a. With respect to a municipal corporation which is a participating

employer as defined in subdivision three of section five hundred one of

the education law, which elects to utilize a retirement contribution

reserve fund (a) to finance retirement contributions to the New York

state teachers' retirement system pursuant to section five hundred

twenty-one of the education law and/or (b) to offset all or a portion of

the amount deducted from the moneys apportioned to the municipal

corporation from the state for the support of common schools pursuant to

section five hundred twenty-one of the education law, such municipal

corporation shall establish a sub-fund within the retirement

contribution reserve fund, which shall be separately administered

consistent with the provisions of this section. Such municipal

corporation may pay into such sub-fund during any particular fiscal year

an amount not to exceed two per centum of the total compensation or

salaries of all teachers in the employ of said municipal corporation who

are members of the New York state teachers' retirement system paid

during the immediately preceding fiscal year. The balance of such

sub-fund may not exceed ten per centum of the total compensation or

salaries of all teachers in the employ of the municipal corporation who

are members of the New York state teachers' retirement system paid

during the immediately preceding fiscal year. For the purposes of this

subdivision, the term "teacher" shall have the same meaning as such term

is defined under subdivision four of section five hundred one of the

education law.

3. There may be paid into a retirement contribution reserve fund:

a. such amounts as may be provided therefor by budgetary appropriation

or raised by tax therefor;

b. such revenues as are not required by law to be paid into any other

fund or account;

c. such other funds as may be legally appropriated; and

d. notwithstanding any law to the contrary, such amounts as may be

transferred from a reserve fund established pursuant to section six-c,

six-d, six-e, six-f or six-g of this article comprised of moneys raised

from the same tax base as the moneys in the retirement contribution

reserve fund, or a reserve fund established pursuant to section

thirty-six hundred fifty-one of the education law, provided, that any

such transfer shall only be made by resolution of the governing board of

such municipal corporation adopted after a public hearing held on at

least fifteen days prior published notice in the official newspaper of

the municipal corporation or, if the municipal corporation does not have

an official newspaper, in at least one newspaper having general

circulation in the municipal corporation.

4. The moneys in a retirement contribution reserve fund shall be

deposited and secured in the manner provided by section ten of this

article. The governing board of such municipal corporation, or the chief

fiscal officer thereof if the governing board shall delegate such duty

to him or her, may invest the moneys in such fund in the manner provided

by 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.

5. The governing board of such municipal corporation by resolution may

authorize expenditures from a retirement contribution reserve fund.

Except as otherwise provided by law, moneys in a retirement contribution

reserve fund may only be expended (a) to finance retirement

contributions, and/or (b) in the case of a municipal corporation which

is a participating employer, as defined in subdivision three of section

five hundred one of the education law, for appropriations authorized by

law in order to offset all or a portion of the amount deducted from the

moneys apportioned to the participating employer from the state for the

support of common schools pursuant to section five hundred twenty-one of

the education law. With respect to a municipal corporation which is a

participating employer as defined in subdivision three of section five

hundred one of the education law, expenditures from the retirement

contribution reserve fund to finance retirement contributions to the New

York State teachers' retirement system pursuant to section five hundred

twenty-one of the education law and/or to offset all or a portion of the

amount deducted from the moneys apportioned to the municipal corporation

from the state for the support of common schools pursuant to section

five hundred twenty-one of the education law may only be made from the

sub-fund established pursuant to subdivision two-a of this section.

6. The governing board of such municipal corporation by resolution may

authorize the transfer of a portion of the moneys in a retirement

contribution reserve fund to a reserve fund of the municipal corporation

established pursuant to section six-c, six-d, six-e, six-f or six-g of

this article comprised of moneys raised from the same tax base as the

moneys in the retirement contribution reserve fund, or a reserve fund

established pursuant to section thirty-six hundred fifty-one of the

education law, provided, that any such transfer shall only be made by

resolution of the governing board of such municipal corporation adopted

after a public hearing held on at least fifteen days prior published

notice in the official newspaper of the municipal corporation or, if the

municipal corporation does not have an official newspaper, in at least

one newspaper having general circulation in the municipal corporation.

7. The chief fiscal officer of such municipal corporation shall

account for a retirement contribution reserve fund separate and apart

from all other funds of the municipal corporation. Such accounting shall

show: the source, date and amount of each sum paid into the fund; the

interest earned by such fund; capital gains or losses resulting from the

sale of investments of this fund; the order, purpose thereof, date and

amount of each payment from this fund; the assets of the fund,

indicating cash balance and a schedule of investments. The chief fiscal

officer, within sixty days of the end of each fiscal year, shall furnish

a detailed report of the operation and condition of this fund to the

governing board.

8. The members of the governing board of such municipal corporation

are hereby declared trustees of a retirement contribution reserve fund

and shall be subject to all the duties and responsibilities imposed by

law on trustees, and such duties and responsibilities may be enforced by

the municipal corporation, as the case may be, or by any board,

commission, agency, officer or taxpayer thereof.

9. No member of the governing board of such municipal corporation

shall:

(a) authorize a withdrawal from a retirement contribution reserve fund

for any purpose except as provided in this section; or

(b) expend any money withdrawn from such fund for a purpose other than

as provided in this section.

Any member of the governing board who violates the provisions of this

subdivision shall be guilty of a misdemeanor.

10. The governing board of such municipal corporation by resolution

may determine that a retirement contribution reserve fund is no longer

needed and terminate the fund. Such resolution shall transfer any moneys

remaining in such fund to one or more reserve funds of the municipal

corporation established pursuant to section six-c, six-d, six-e, six-f

or six-g of this article comprised of moneys raised from the same tax

base as the moneys in the retirement contribution reserve fund, or one

or more reserve funds established pursuant to section thirty-six hundred

fifty-one of the education law.

11. The governing board of a municipal corporation which is a

participating employer as defined in subdivision three of section five

hundred one of the education law by resolution may (a) authorize the

transfer of all or a portion of the monies in the separately

administered sub-fund as established under subdivision two-a of this

section to the retirement contribution reserve fund, and/or (b)

authorize the transfer of all or a portion of the monies in the

retirement contribution reserve fund to the separately administered

sub-fund as provided in subdivision two-a of this section, subject to

the limits on annual payments into the sub-fund and the balance of the

sub-fund specified by subdivision two-a of this section.