N.Y. Retirement and 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.
Terms Used In N.Y. Retirement and Social Security Law 430
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- 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.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
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.