Local agencies may secure retirement benefits for their employees by adopting the New York State Employees Retirement System, pursuant to sections 55 and 56 of the State Civil Service Law. A municipality may adopt the system by filing a certified copy of an appropriate resolution approved by the local legislative body, with the State Comptroller. A local housing authority may adopt the system by passage of an appropriate resolution, a certified copy of which is filed with the Comptroller, but the acceptance of the employees of the authority for membership in the system is optional with the State Comptroller. Full information as to the adoption and operation of the system, payroll procedures, rates of contribution, etc., may be had by writing to the State Comptroller, Albany, New York. The general comments which follow are intended to be informative, rather than exhaustive, and are based on information supplied by the Comptroller:
(a)The election to adopt the New York State Employees Retirement System is optional with the local agency. The election, once made, is, however, irrevocable.
(b)On adoption of the system, all persons employed as of the date of adoption will have the opportunity to elect whether or not to become members of the system. After adoption, all new employees who are in the competitive or noncompetitive class of the classified Civil Service must become members of the system as of date of appointment. For others, membership is optional.
(c)Persons employed as of the date of adoption of the system who elect to become members within the first year after adoption must, by law, receive credit for service rendered prior to the date of adoption. The credit for prior service represents a charge to the local agency but is free to the employee. After adoption and membership of any employee, the cost is shared by the local agency and the employee. In order that there be no lapse in service, it is advisable for all employees to pay the necessary contributions on all salary received from the date of adoption until membership is consummated. If the applications for membership are received one month after date of adoption, the Comptroller will register the employees for membership in the system as of the date of adoption and the local agency will be advised as to the contributions to be taken from future salary. The prompt establishment of the employee's rate of contribution is recommended.
(d)The over-all rate of contribution by the local agency is made up of the following:
(1)A normal contribution rate to balance the contribution of the employer member.
(2)A special deficiency contribution rate to apply to the aggregate payroll of members for a period of 30 years.
(3)An administration contribution rate.
(e)The accrued liability of the local agency will not, ordinarily, be determined by the Comptroller until one year after adoption. The cost of determining the accrued liability will be a charge to the local agency. However, subject to a definitive determination at the end of the first year after adoption, the Comptroller will, if the local agency so desires, determine a tentative special deficiency contribution rate before the end of the first year. There is an additional charge for this service. The establishment of a tentative special deficiency contribution rate is recommended as it has the advantage of permitting the local agency to begin accruing its liability with respect to current payrolls immediately. The accruals can then be adjusted when the accrued liability of the local agency is definitively determined by the Comptroller as of the end of the first year after adoption.