Bill Text: NY A08252 | 2015-2016 | General Assembly | Introduced

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Bill Title: Relates to the SUNY optional retirement program.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2015-06-18 - substituted by s5632a [A08252 Detail]

Download: New_York-2015-A08252-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         8252
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                     June 15, 2015
                                      ___________
       Introduced by M. of A. ABBATE -- read once and referred to the Committee
         on Ways and Means
       AN  ACT  to amend the retirement and social security law, in relation to
         the SUNY optional retirement program
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1. Paragraph 2 of subdivision d of section 613 of the retire-
    2  ment and social security law, as amended by chapter 746 of the  laws  of
    3  1990, is amended to read as follows:
    4    2.  Each participating employer of any employee (subject to this arti-
    5  cle) who, in lieu of joining a public retirement system  of  the  state,
    6  elected  an  optional  retirement  program  to which their employers are
    7  thereby required to  contribute,  INCLUDING,  BUT  NOT  LIMITED  TO,  AN
    8  ELECTION  UNDER  THE  PROVISIONS  OF  SUBDIVISION  THREE-A OR EIGHT-A OF
    9  SECTION THREE HUNDRED NINETY OF THE EDUCATION LAW,  shall  pick  up  the
   10  employee  contributions thereto which would otherwise be mandatory under
   11  the provisions of state law and shall do so by reducing  the  salary  of
   12  such  employee  by the amount of employee contributions to such optional
   13  retirement  program  which  would  otherwise  be  mandatory  under   the
   14  provisions of state law. The contributions so picked up shall be paid by
   15  each  participating  employer  in lieu of the member contributions to be
   16  paid by its employees and shall be treated as employer contributions  in
   17  determining  income  tax treatment under section 414 (h) of the internal
   18  revenue code.
   19    S 2. This act shall take effect immediately and  shall  be  deemed  to
   20  have been in full force and effect on and after July 1, 2013.
         FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
         This  bill  clarifies that the State University of New York's Optional
       Retirement Program (ORP) permits employee contributions to  be  "picked-
       up"  under  Internal  Revenue Code for employees who make an election to
       participate under the provisions of subdivision three-a  or  eight-a  of
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11288-03-5
       A. 8252                             2
       section  three  hundred  ninety  of  the  education  law. The pick up of
       contributions shall be made by a reduction  in  each  affected  member's
       salary  by  an  amount equal to the member's required contributions. The
       picked  up contributions would not be includable in the gross income for
       income tax purposes but shall be deemed employee salary  for  all  other
       purposes.  This is a technical amendment to ensure the income tax treat-
       ment is properly authorized by statute. If  this  bill  is  enacted,  we
       anticipate that there will be small administrative costs.
         This  estimate,  dated  June 9, 2015, and intended for use only during
       the 2015 Legislative Session, was prepared by the Program  Administrator
       of the Optional Retirement System for the State University of New York.