District’s Retirement Reserve Holds $3.2 Million

The Huntington School District’s retirement contribution reserve fund holds nearly $3.2 million. It was created in June 2006 to help pay for district expenses related to the New York State Employees Retirement System. Non-instructional employees are members of the ERS in accordance with state law.

Huntington School Board members added $1 million to the retirement reserve fund at the conclusion of the last fiscal year, increasing its balance to the current level. “A funding level equal to approximately two years’ worth of retirement system billings is desired,” according to a report given to trustees. “At current rates, that level is approximately $5.1 million.” The district hopes to reach the desired funding level in the future.

Monies placed in the retirement reserve come from excess fund balance. New York State General Municipal Law authorizes districts to establish and maintain such a fund.

“We established this fund so as to be prepared to meet our cost obligations related to the Employees Retirement System in a manner that reduces the annual impact for district taxpayers,” Huntington Superintendent James W. Polansky said. “It is our hope that, at some point in the near future, we will be permitted to establish a similar fund that will assist us in meeting the more costly Teachers’ Retirement System expenses.”

“A separate plan for use of this reserve has been developed,” according to the report on the retirement reserve fund presented to trustees. “The plan calls for annual use of this fund in decreasing amounts (potentially ending in 2017-18), so as not to create a budgetary shortfall.”

Payments from the retirement reserve fund to the New York State Teachers’ Retirement System are not permitted. Certificated instructional employees (including teachers, administrators, coaches, etc.) are members of the TRS.