N.Y. Retirement and Social Security Law 17-C – Amortization of a portion of the bills for participating employers for the two thousand five–two thousand six fiscal year
§ 17-c. Amortization of a portion of the bills for participating employers for the two thousand five–two thousand six fiscal year. a. If the comptroller, in his or her discretion, decides to permit amortization of employer contributions pursuant to this section, then, on or about October fifteenth, two thousand four, on the basis of the annual actuarial valuation provided for in this chapter, the comptroller shall determine the amount (exclusive of payments for group term life insurance, deficiency payments, adjustments relating to prior fiscal years' obligations and obligations pertaining to retirement incentives or any other obligations that a participating employer is permitted to pay on an amortized basis) of the annual contribution for a participating employer pursuant to section twenty-three-a of this article due for the fiscal year ending March thirty-first, two thousand six. The amount by which such contribution exceeds nine and one-half percent of the estimated pensionable salary base for the fiscal year ending March thirty-first, two thousand six shall be the "amount eligible for amortization". An amount up to the "amount eligible for amortization" may be amortized over a ten-year period at eight percent interest per annum, with the first of ten equal payments payable on February first, two thousand seven, provided, however, that on or before September first, two thousand five, the comptroller, in his or her discretion, may establish a fixed rate of interest per annum to be applied to the amounts eligible for amortization of all employers, which more closely approximates a market rate of return on taxable fixed rate securities with similar terms issued by comparable issuers.
Terms Used In N.Y. Retirement and Social Security Law 17-C
- Amortization: Paying off a loan by regular installments.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Fixed Rate: Having a "fixed" rate means that the APR doesn't change based on fluctuations of some external rate (such as the "Prime Rate"). In other words, a fixed rate is a rate that is not a variable rate. A fixed APR can change over time, in several circumstances:
- You are late making a payment or commit some other default, triggering an increase to a penalty rate
- The bank changes the terms of your account and you do not reject the change.
- The rate expires (if the rate was fixed for only a certain period of time).
b. A participating employer, may, in lieu of paying its entire February first, two thousand six bill, pay a lesser amount on February first, two thousand six which shall be determined by the comptroller by adding the following two amounts together:
(1) the entire February first, two thousand six bill, calculated pursuant to section twenty-three-a of this article (without reference to this section) less the "amount eligible for amortization" determined pursuant to subdivision a of this section; and
(2) the first annual installment of the "amount eligible for amortization" determined pursuant to subdivision a of section seventeen-b of this article, if applicable.
c. A participating employer making a payment pursuant to subdivision b of this section shall pay on February first, two thousand seven an amount determined by the comptroller by adding the following three amounts together:
(1) the entire February first, two thousand seven bill, calculated pursuant to section twenty-three-a of this article (without reference to this section), less the "amount eligible for amortization" determined pursuant to section seventeen-d of this article, if applicable;
(2) the first annual installment of the "amount eligible for amortization" determined pursuant to subdivision a of this section; and
(3) the second annual installment of the "amount eligible for amortization" determined pursuant to subdivision a of section seventeen-b of this article, if applicable.
d. Amortized payments determined pursuant to section seventeen-b and pursuant to this section shall be due and payable on February first of each year during the applicable amortization period. The comptroller shall have the authority to permit the pre-payment of the remaining balance of the "amount eligible for amortization" determined pursuant to both such sections subject to the following:
(1) on or before November fifteenth, two thousand six in addition to the amount due for the current year billing and for the payment of the amortized annual installment determined pursuant to section seventeen-b and pursuant to this section, the comptroller shall advise the participating employer of the total amount due and be authorized to accept pre-payment in full of said amount by February first, two thousand seven.
(2) on or before each November fifteenth thereafter, in addition to the amount due for the current year billing and for the payment of the annual amortized installments, the comptroller shall advise the participating employer of the total amount still outstanding and be authorized to accept the pre-payment of any balance remaining to be paid by February first of the succeeding year.