Contribution Stabilization Program
The Contribution Stabilization Program is an optional program that establishes a graded contribution rate system. If you elect to participate, it enables you to pay a portion of your annual contribution over time, leading to smoother, more predictable pension costs.
This option was first available in fiscal year 2011. If you did not elect to participate in 2011 or 2012, you can opt into the program in the future. You will be able to download an election form each year with your annual invoice. You will still have the option to prepay your annual contribution by December 15.
Once you amortize, you cannot withdraw from the program; however, you do not have to amortize each year and you can choose to amortize less than the maximum amount allowed.
Amortizations are paid over a ten-year period at an interest rate comparable to taxable fixed income investments of a similar duration. The interest rate for amounts amortized in fiscal year 2013 is 3.00 percent. You can prepay amortized amounts without penalty.
Under this program, no money is taken from the New York State Common Retirement Fund. In addition, the calculation of future rates and the System’s funded ratio are not affected.
This section will tell you what you need to know before deciding whether the option is right for you. If you have questions or need additional information after reading this section, please email Employer Services or contact our Billing Unit at 518-486-3921 or 518-474-9236.