New York Assembly Bill A07498

New York 2025-2026 Regular Session

• Introduced: 3/28/25
• Refer: 3/28/25
• Refer: 1/7/26

Caption

Provides for the annual reimbursement to licensed not-for-profit corporations which provide direct care to consumers approved for service by the office for people with developmental disabilities for the cost of employer contributions to a retirement benefit fund governed by the provisions of the Federal Employee Retirement Income Security Act of 1974.

Summary

This bill would require the Office for People with Developmental Disabilities (OPWDD) to annually reimburse licensed not-for-profit corporations that provide direct care to OPWDD-approved consumers for the cost of employer contributions to a retirement benefit fund governed by ERISA. The reimbursement would begin the April 1 after the provider submits IRS Form 5500 documenting the contributions, and providers could seek expedited reimbursement if they show the payments must be made promptly and they cannot reasonably make prompt payment themselves. The bill also places a cap on reimbursement: OPWDD could not reimburse any amount that exceeds 10 percent of the employer’s total payroll as of December 31 of the year in which the contributions are made. The measure would take effect on the first April 1 after it becomes law and would amend the Mental Hygiene Law by adding a new section addressing these retirement-related expenditures.

Impact

The bill would create a new state reimbursement obligation within the Mental Hygiene Law for OPWDD-funded not-for-profit direct care providers, shifting part of the cost of employee retirement contributions from providers to the state agency. It would affect licensed nonprofit developmental disability service providers, their payroll and benefit administration, and OPWDD’s budgeting and reimbursement processes, while tying eligibility to federal ERISA-covered retirement plans and IRS reporting requirements.

Sentiment

Based on the bill text and available context, the measure appears generally supportive of direct care workforce retention and provider financial stability by offsetting retirement benefit costs. No committee transcript or vote record is available here, so there is no documented opposition or support from debate or roll call history. The framing of the bill suggests a workforce-benefits and provider-relief rationale rather than a controversial policy change.

Contention

The main potential points of contention are fiscal and administrative: the bill would require state reimbursement of employer retirement contributions, which could raise concerns about cost to OPWDD and the state budget, as well as the mechanics of verifying claims through Form 5500 and processing expedited reimbursements. Another possible issue is the 10 percent payroll cap, which may limit relief for some providers and could be viewed either as a safeguard against excessive reimbursement or as insufficient support for higher-cost organizations.