NY A07794

Allows free association libraries to elect participation in the New York State and Local Employees' Retirement System (NYSLERS) through a board resolution approved by the comptroller

Eligible libraries must meet six criteria: be chartered by the Board of Regents, serve their entire chartered service area, have voter-elected trustees, have voter-approved budgets, derive at least 51% of their budget from public sources, and file annual reports with the comptroller

Employer contribution rates for fiscal year 2025-2026 would range from 12.5% to 25.2% of payroll depending on employee tier, plus a 25-year deficiency cost payment

The fiscal note warns that permitting non-governmental employees in NYSLERS could jeopardize the system's governmental plan status and ERISA exemption, potentially causing loss of tax-qualified status for over one million current participants

Recommends obtaining an IRS ruling prior to enactment, with estimated costs of $38,000 for IRS services plus $1,000 per hour for legal consultants