N.Y. Retirement & Social Security Law § 16: Annual appropriation by state

§ 16. Annual appropriation by state. a. Upon the basis of each annual

actuarial valuation and appraisal provided for in this article, the

comptroller, on or before the fifteenth day of October of each year,

shall prepare and file with the director of the budget and the

chairperson of the senate finance committee and the assembly ways and

means committee an itemized estimate of the amounts necessary to be

appropriated by the state to the pension accumulation fund and the New

York state public employees group life insurance plan for the next

fiscal year and an estimate of the payments required for the current

fiscal year. Such amounts shall be sufficient to provide for payment in

full for (i) the estimated obligations of the state to the retirement

system for such respective fiscal years; and (ii) any actual obligations

of the state to the retirement system remaining unpaid from the prior

fiscal year, plus interest on such amount to be paid in the next fiscal

year. If, the state overpaid its actual obligation to the retirement

system for the prior fiscal year, the amount estimated in the filing

required by this subdivision for the next fiscal year shall reflect the

amount of such overpayment, plus interest on such amount, as a reduction

in amounts that would otherwise be estimated to be due the retirement

system from the state. The amount appropriated or so much thereof as may

be required shall be paid from the state treasury on warrant of the

comptroller into the pension accumulation fund and the New York state

public employees group life insurance plan, as appropriate, on or before

March first of each state fiscal year. The amount paid shall be based on

an estimate provided by the comptroller which shall reflect the most

recent data on annual salary and other related components, and be

calculated in accordance with pension benefits authorized as of that

time. Such estimate shall be provided by the comptroller within fifteen

days of a request by the director of the budget. For the purposes of

this section, "interest" shall mean the rate or rates of interest used

in the actuarial valuations covering the period of time over which such

interest is computed.

b. On or before the fifteenth day of October of each year the

comptroller shall file with the director of the budget and the

chairperson of the senate finance committee and the assembly ways and

means committee an itemized estimate of the expenses of the retirement

system for the ensuing year. The director of the budget may revise and

amend such estimate. After such revision and amendment, if any, such

director shall approve the same for inclusion in the executive budget.

No monies shall be paid out of the pension accumulation fund for such

expenses unless expenditures therefor shall have been authorized by law.

c. Whenever the compensation of any member of the retirement system is

paid from a special or administrative fund provided for by law, all

contributions to the retirement system including a proportionate share

of the administrative expense thereof, which otherwise would be

chargeable to the general fund of the state, shall, with the approval of

the director of the budget, be paid from such special or administrative

fund.

d. Such estimated amounts provided in subdivision a of this section

shall be revised to reflect updated information, including trends in

salary growth and investment earnings through November thirtieth of the

current fiscal year and resubmitted to the director of the budget and

the chairperson of the senate finance committee and the assembly ways

and means committee on or before December fifteenth of the current

fiscal year. A revised actuarial estimate, including an explanation of

any changes from the estimates submitted on October fifteenth of the

current fiscal year, shall also accompany such resubmission.

e. By February seventh of the current fiscal year, the comptroller

shall notify the director of the budget and the chaiperson of the senate

finance committee and the assembly ways and means committee of his or

her revised estimate of the state's contribution to the pension

accumulation fund and the New York state public employees group life

insurance plan for the current and next fiscal years based on updated

information through January thirty-first of the current fiscal year.

Such notification shall be accompanied by a revised actuarial estimate,

including an explanation of any changes from the estimate submitted on

December fifteenth of the current fiscal year.

f. After reviewing the estmates and submissions for the next fiscal

year, the director of the budget, after consultation with the

comptroller's office, shall include the necessary item of appropriation

for the next fiscal year payment in the next annual appropriation bill

presented to the legislature. Such consultation shall include

discussions regarding the reasons and assumptions used for any potential

adjustments to prior estimates and submissions and, to the extent

feasible or appropriate, reflect actual calculations provided by the

comptroller's office. The director of the budget shall also include in

such appropriation bill, if necessary, an appropriation equal to the

amount of unpaid obligations of the state to the retirement system for

the prior fiscal year.

g. Such estimates provided in subdivisions a, d and e of this section

shall be accompanied by an actuarial report stating the assumptions used

in calculating each of the estimates, including but not limited to:

1. projected growth in the billable salary base from the prior fiscal

year, in total and by tier for the state and local governments for each

retirement system;

2. composition of the portfolio;

3. return on common stock investments, expressed as a percentage;

4. calculation of the actuarial value of common stock;

5. return on investments other than common stock, expressed as a

percentage; and

6. itemization of the change from the state's prior year contribution,

either actual or estimated, due to legislative changes in benefits, tier

shift, salary base growth, investment return, and any other factors

deemed appropriate for explaining such change.

h. In addition to the above mentioned reporting requirements, the

actuarial report shall also include the following information for each

retirement system for the current fiscal year and estimated amounts for

the next fiscal year:

1. the post-retirement supplemental payments and a description of the

handling of such amounts in the valuation;

2. the group life insurance plan (GLIP) costs and assets allocated to

GLIP;

3. the administrative expenses and a description of the handling of

such amount in the valuation;

4. the market value and actuarial asset value of equities;

5. a state reconciliation of the amounts paid and the final amounts

for the two prior fiscal years.