N.Y. Retirement & Social Security Law § 430: Current payment for benefit improvements

§ 430. Current payment for benefit improvements. a. Whenever a new

benefit or an improvement in any benefit takes effect or is enacted

after July first, nineteen hundred seventy-one which will result in an

increase in cost for contributions to an actuarially funded public

retirement system by the state or a municipality thereof, such employer

shall commence payment for such increased cost from an appropriation

made in the budget for the employer's fiscal year in which such benefit

or improvement becomes effective. No such benefit or improvement shall

become effective until such appropriation has been made and is available

for such payment. Within ninety days after notification that such a

benefit or improvement has been or is to be made, the head of the

retirement system affected shall submit to the fiscal officer of the

employer, or in the case of the state or the city of New York to the

director of the budget thereof, an estimate of the amount sufficient to

provide for the initial actuarial payment to the retirement system of

all additional obligations created by such benefit or improvement and

such employer shall make payment of such amount to the retirement system

during such employer's fiscal year in which such benefit or improvement

is made effective. In computing the amount to be paid by such employer

during the normal valuation process for obligations attributable to the

fiscal year in which such benefit or improvement became effective,

appropriate adjustments shall be made for amount already paid pursuant

to this section.

b. If payment of the full amount of an obligation required to be paid

by subdivision a of this section is not made by a participating employer

in a state retirement system, including the state teachers' retirement

system, by the close of such employer's fiscal year, interest at the

rate of six per centum per annum shall commence to run against the

unpaid balance thereof on the first day of the next succeeding fiscal

year.

c. The comptroller or the retirement board of the state teachers'

retirement system shall have full power and authority to bring suit in

the supreme court against any participating employer in a retirement

system headed by such comptroller or such board to recover any sum,

payment of which is not made as herein required. While any such sum

shall remain due and unpaid the comptroller may refuse to audit any

claim for funds due to such employer from the state.