NY A04885

Free association libraries meeting specified criteria may elect to participate in the New York State and Local Employees' Retirement System through board resolution, subject to comptroller approval.

Eligible libraries must be chartered by the state board of regents, serve their entire chartered service area, have trustees elected by voters, have budgets approved by voters, derive at least 51 percent of budget from public sources, and file annual reports as required of public libraries.

The comptroller determines contribution amounts for participating libraries and employees, resolves prior service credit questions, and ensures employees receive the same rights, obligations, and benefits as other retirement system members.

Annual employer contribution rates range from 9.1% to 19.7% of payroll depending on tier, plus a deficiency cost payable over 25 years based on employee age, service, salary, and plan.

The fiscal note recommends obtaining IRS approval before enactment to ensure the legislation does not jeopardize the retirement system's governmental plan status and tax-exempt status.