Section 323-A. Statement of intent

a.  This legislation is intended to
  strengthen the long-term fiscal health  of  the  retirement  system,  to
  reduce  the  volatility  of  contribution  rates  and  to provide budget
  certainty for participating employers by addressing  current  structural
  problems  with  respect  to  the  calculation  and  payment  of employer
  contributions by means of a comprehensive reform  program.  There  is  a
  need  to  address  structural problems in the current billing cycles for
  the  state  and  local  governments  with  respect   to   their   annual
  contributions  to  the  retirement  system. The state currently pays its
  contributions on the basis of estimates, which are subject to adjustment
  at a  later  date  (with  interest,  if  applicable)  on  the  basis  of
  subsequent  calculations of the required contribution. Local governments
  must  currently  adopt  budgets  based  on  estimates  of  the  required
  contributions,  but  then  make payment of the full amount of the actual
  contributions that  are  finally  billed  on  the  basis  of  subsequent
  calculations  of  the  required  contributions.  In  addition,  dramatic
  fluctuations in the performance of the investment markets have  produced
  unprecedented  volatility  in  employer  contribution  rates. These rate
  fluctuations have been exacerbated by the lack of a  reasonable  minimum
  payment  by  employers  in years where investment performance was strong
  and employer rates were low. In order to enhance the continuing  ability
  of  the  retirement system to provide services and benefits for the more
  than  nine  hundred  forty  thousand  members  and  retirees  and  their
  beneficiaries,  this  section  provides  for measures to (1) enhance the
  long-term fiscal health of the retirement  system,  (2)  facilitate  the
  planning   and   budgeting   of   state   and   participating   employer
  contributions, and (3) ease the volatility of retirement system employer
  contribution rates in the future.
    b. Notwithstanding  the  provisions  of  this  chapter  or  any  other
  provision  of  law  to  the  contrary,  the  comptroller  shall have the
  authority, in his  or  her  discretion,  to  implement  a  comprehensive
  structural  reform  program, which shall consist of all of the following
  measures:
    1. revision of the schedule pertaining to the valuation,  billing  and
  payment  of contributions by the state and participating employers under
  which the valuation of the assets  and  liabilities  of  the  retirement
  system  undertaken  on  the  first day of a fiscal year shall be used to
  determine the contribution  rates  to  be  applied  to  the  pensionable
  salaries   of  the  state  and  participating  employers  for  the  next
  succeeding fiscal year; and
    2. requiring a minimum annual contribution from the  state  and  every
  participating  employer  (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 the state  or  participating  employer  is
  permitted  to  pay  on  an  amortized  basis) equal to four and one-half
  percent   of   pensionable   salaries.   Effective   immediately    upon
  implementation by the comptroller of the comprehensive structural reform
  program  set  forth  in  this  section,  and  in  all  subsequent years,
  participating  employers  shall   pay   either   the   required   annual
  contribution  determined  under  the  revised schedule pertaining to the
  valuation, billing and payment of contributions  pursuant  to  paragraph
  one  of this subdivision, or the required minimum annual contribution of
  four and one-half percent of pensionable salaries, whichever is greater;
  and
    3. notwithstanding any provision of subdivision  a  of  section  three
  hundred  sixteen of this article to the contrary, upon the comptroller's
  implementation of the  measures  set  forth  in  this  subdivision,  all

  contributions payable by the state and participating employers under the
  valuation,  billing and payment schedule implemented under paragraph one
  of this subdivision, including  the  minimum  contribution  required  by
  paragraph  two of this subdivision, must be paid in full by the state on
  or  before  March  first  of  the  then  current  fiscal  year  and   by
  participating  employers  on  the  date  set  forth  in subdivision c of
  section three hundred seventeen of this article.