Bill > A06914

This bill establishes a new defined contribution retirement plan for non-civil service appointed employees and elected officials in the New York State and Local Employees' Retirement System. Under this plan, public employers will contribute 3% of an employee's annual salary, and employees will also be required to contribute 3% of their salary, with the option to contribute up to 100% of their salary (not exceeding $23,500). The bill freezes current retirement plans for affected employees, meaning they will stop contributing to their existing plans but will retain the benefits already accrued. The comptroller will be responsible for selecting financial organizations to administer the plan, with specific criteria for selection including investment opportunities, fees, stability, and reporting capabilities. The defined contribution plan will apply to employees who are not yet vested in a state retirement system or who are hired after the bill's effective date. The bill also allows elected officials to join this new plan and ensures that an employee's membership in the state retirement system remains open if they become part of the defined contribution plan. Importantly, the bill notes that the new plan may face potential constitutional challenges related to potentially diminishing existing employee benefits.

Labor and Employment

https://www.nysenate.gov/legislation/bills/2025/A6914