NY Insurance Law

Article 46, Retirement Systems,

        Section 
        4601. Definitions.
        4602. Creation of retirement systems.
        4603. Benefits.
        4604. Contributions.
        4605. Reinsurance.
        4606. Reserves.
        4607. Exemption from taxation; trusts; higher education loans.
        4608. Application.

  S 4601. Definitions. In this article:
  (a) "Employees" means the employees, officers, and agents of any
person, firm or corporation or of one or more corporations having
business interests in common.
  (b) "Employer" means the person, firm, corporation or one or more
corporations having business interests in common, and includes any
organization of such employers.
  (c) "Retirement system" or "system" means a non-profit corporation or
trust formed for the purpose of providing pension benefits.
  (d) "Pension benefits" means benefits provided by a retirement system
for members retiring by reason of age or length of service, or both, and
benefits permitted by section four thousand six hundred three of this
article.

  S 4602. Creation of retirement systems. (a) The employees, an
employer, or the employees and employer jointly, may create a retirement
system by filing in the office of the superintendent a declaration of
their intention to do so, in a form approved by the superintendent,
subscribed and affirmed as true under the penalties of perjury by two
provisional trustees or officers of such system, and an authenticated
copy of the constitution, by-laws or declaration of trust adopted to
regulate the affairs of the system.
  (b) Upon such filing the superintendent may, if satisfied that the
rates of contribution are adequate and that the plan of operation is
sound and equitable, issue a license, subject to the provisions of
section one thousand one hundred two of this chapter, authorizing the
retirement system to do the business described in the plan.
  (c) A system shall have trustees who shall choose officers or agents
to carry on the business of the system. The by-laws or declaration of
trust of such a system shall prescribe the manner in which and the
officers or agents by whom the system may be conducted and the manner in
which its funds shall be collected and disbursed.
  (d) The funds and investments of a system shall be held independently
of the funds and investments of the employer and of any other person.
The manner of investment of the funds of a system shall be limited in
every respect as in the case of the funds of a domestic life insurance
company, except that investments shall be made under section one
thousand four hundred four not section one thousand four hundred five of
this chapter and shall be subject to the provisions of section one
thousand four hundred four of this chapter that relate specially to
retirement systems.
  (e) A system shall not issue or deliver any certificate or contract
providing for or promising to pay any benefit until a copy of its form
has been filed with the superintendent and approved by him. Such
certificate or contract shall conform to the provisions of this article
and, insofar as practicable, to the other provisions of this chapter
applicable to similar policies or contracts.

 S 4603. Benefits. (a) A system providing retirement benefits by
agreement with an employer may also provide in the same agreement for
withdrawal equities and benefits on account of disability or death.
  (b) A system may provide pension benefits by entering into agreements
with an employer or group of employers having a common retirement plan
which has been approved by the superintendent to receive funds which are
to be accumulated at interest and, subject to the conditions agreed
upon, to apply the accumulated funds to provide pension benefits for the
employees of the employer or group of employers as each employee
retires.
  (c) No agreement shall be entered into with an employer or group of
employers having less than twenty-five employees who are eligible for
retirement benefits under the agreement.
  (d) The accumulation of any funds contributed by an employee shall be
used for his exclusive benefit.

  S 4604. Contributions. (a) The participating employees, or the
employer, or both may contribute to the funds of the system and the
rates of contribution shall be fixed by the trustees upon the basis of
actuarial recommendations and shall be adequate to support the benefits
granted.
  (b) The trustees may, with the approval of the superintendent,
increase or decrease the rates of contribution whenever such action is
deemed by them necessary to preserve the solvency and equity of the
system.

   S 4605. Reinsurance. (a) All or any part of the pension benefits of a
system may be reinsured in an insurance company authorized to insure
such risks in this state, as may be provided for in the by-laws or
declaration of trust of the retirement system.
  (b) The reinsurance contract may be terminated by agreement between
the reinsurer and the ceding retirement system or a successor and the
assets supporting such agreement may be transferred to such system or
its successor in one sum or over a period of years in accordance with
terms and conditions approved by the superintendent. In such event, the
funds transferred in one sum or the present value of sums to be
transferred over a period of years shall become an admitted asset of
such system or its successor.

  S 4606. Reserves. (a) A system shall, except to the extent that its
benefits are reinsured by an insurance company authorized to transact
such business in this state, create and maintain reserves, calculated to
be adequate to cover the liabilities on account of benefits payable
under its contracts, by-laws, or declaration of trust.
  (b) The calculation shall be made on the basis of mortality,
disability, and other experience tables based on reliable experience for
such or a similar group of employees and approved by the superintendent,
and of interest at a rate which is approved by the superintendent and is
not in excess of the maximum rate permitted to domestic life insurance
companies under section four thousand two hundred seventeen of this
chapter for the valuation of group annuities, for all participating
employees in the system upon application by the system and a showing
that such rate can be supported by the income from the investments of
the system.
  (c) The reserves required in respect of service rendered or benefits
granted prior to the date of organization or creation of such system
under this chapter may be accumulated on a basis calculated to produce a
balance between the actuarial present value of the assets and of the
liabilities of the system within a period of not exceeding thirty years
from the date of the incorporation or creation thereunder.

  S 4607. Exemption from taxation; trusts; higher education loans. (a)
The property of a system, the portion of wages or salary of an employee
deducted or to be deducted, the right of an employee to a pension
benefit, and all his rights in the funds of the system, shall be exempt
from taxation and from the operation of any law relating to bankruptcy
or insolvency, except as provided in section four thousand six hundred
eight of this article and subject to the provisions of section three
thousand two hundred twelve of this chapter.
  (b) No trust created pursuant to this article shall be deemed invalid
as violating any existing laws against perpetuities or suspension of the
power of alienation of title to property; and the income arising from
any property, real or personal, held in such trust may be permitted to
accumulate until the fund shall be sufficient in the opinion of its
trustee or trustees to accomplish the purposes of such trust.
  (c) Any system may lend money to any of its participating employees or
their children, who are attending or planning to attend college, to
assist them in meeting their expenses of higher education, where such
loans are guaranteed by the New York higher education services
corporation in accordance with the provisions of article fourteen of the
education law. In such cases no further security for the repayment of
such loans shall be required of the borrowers by such system.

  S 4608. Application. (a) Every system organized or created under this
chapter shall be subject to the provisions of this article, to
subsection (g) of section one thousand one hundred two of this chapter,
to the appropriate provisions of articles one, three and seventy-four of
this chapter, and to articles thirteen and fourteen of this chapter,
insofar as applicable to the assets and investments of a domestic life
insurance company, except that the provisions of section one thousand
four hundred four (and the provisions therein that relate specially to
retirement systems) shall be applicable instead of the provisions of
section one thousand four hundred five of this chapter.
  (b) Article seventeen of this chapter is applicable to any such system
for the purpose of investing in the stock of a domestic life insurance
company organized on a restricted plan pursuant to the provisions of
subsection (b) of section four thousand two hundred two of this chapter
and for investing in or otherwise acquiring subsidiaries of the types
described in section one thousand seven hundred four of this chapter.
  (c) Section four thousand two hundred forty of this chapter shall be
applicable to any such system in which the total present value of
benefits provided by the employer for members in active service exceeds
fifty million dollars, subject to such modifications in the application
of the provisions of such section as the superintendent may prescribe by
rules and regulations not inconsistent with the provisions of this
chapter, as may be appropriate to carry out the purposes of this