Section 13-214
§ 13-214 Definitions. The following words and phrases as used in this
subchapter unless a different meaning is plainly required by the
context, shall have the following meanings:
1. "Pension fund" shall mean the police pension fund provided for in
this subchapter.
2. "Medical board" shall mean the board of physicians provided for in
section 13-223 of this subchapter.
3. "City service" shall mean service in the police force in the
department and shall include service credit acquired by transfer
pursuant to section forty-three of the retirement and social security
law or by transfer, from another pension or retirement system, of funds
actuarily determined in a manner similar to that provided by such
section of the retirement and social security law. In any case where a
member, after becoming eligible to retire for service, is appointed
police commissioner or deputy police commissioner, and in any case where
a person who retired for service as a member of the pension fund is
thereafter appointed police commissioner or deputy police commissioner,
his or her service as police commissioner or deputy police commissioner
shall constitute city service.
4. "Member" shall mean any person included in the membership of the
pension fund as provided in section 13-215 of this subchapter.
5. "Beneficiary" shall mean any person in receipt of a pension, an
annuity, a retirement allowance, a dependent benefit, a death benefit or
any other benefit provided by this subchapter.
6. "Final compensation" shall mean the average annual compensation
earnable by a member for city-service during his or her last five years
of city-service, or during any other five consecutive years of
city-service since he or she last became a member which such member
shall designate.
7. "Accumulated deductions" shall mean the sum of all the amounts,
deducted from the compensation of a member or contributed by him or her,
standing to the credit of his or her individual account in the annuity
savings fund together with regular interest and special interest, if
any, thereon.
8. * (a) Except as otherwise provided in paragraphs (b), (c), (d), (e)
and (g) of this subdivision, "regular interest", in the cases of persons
who are members on the thirtieth day of June, nineteen hundred
forty-seven, shall mean interest at four per centum per annum,
compounded annually, and in the cases of persons becoming members
thereafter, shall mean interest at three per centum per annum,
compounded annually to and including the thirtieth day of June, nineteen
hundred sixty-five, and interest at four per centum per annum,
compounded annually, from and after the first day of July, nineteen
hundred sixty-five, except that (i) as to the annuity savings fund and
reserve-for-increased-take-home-pay of persons becoming members after
June thirtieth, nineteen hundred forty-seven, the term "regular
interest", for the period from July first, nineteen hundred sixty-five
through December thirty-first, nineteen hundred sixty-seven, shall mean
three per centum per annum compounded annually, and (ii) in the cases of
persons becoming members after June thirtieth, nineteen hundred
forty-seven, whose city-service has been or shall be terminated by
death, retirement, resignation, dismissal, or otherwise on or before
June thirtieth, nineteen hundred sixty-seven, the term "regular
interest" shall mean interest at three per centum per annum, compounded
annually, to and including the date of such termination.
* NB Amended Ch. 910/85 § 25, language juxtaposed per Ch. 907/85 § 14
(b) The provisions of paragraph (a) of this subdivision shall not
apply to any actuarial valuation, determination or appraisal which is
made pursuant to this chapter and which is used to determine the amount
of any contribution required to be paid by the city or other public
employer into the contingent reserve fund of the pension fund in the
nineteen hundred seventy-seven-nineteen hundred seventy-eight fiscal
year of the city or any subsequent fiscal year thereof.
(c) (i) Subject to the provisions of subparagraph (ii) of paragraph
(f) of this subdivision, for the purpose of any actuarial valuation,
determination or appraisal which is made pursuant to this chapter and
which is used to determine the amount of any contribution required to be
paid, by the city or other public employer into the contingent reserve
fund of the pension fund in the nineteen hundred seventy-seven--nineteen
hundred seventy-eight fiscal year of the city and in each succeeding
fiscal year thereof to and including the nineteen hundred
seventy-nine--nineteen hundred eighty fiscal year thereof, "regular
interest" shall mean interest at five and one-half per centum per annum,
compounded annually.
(ii) Subject to the provisions of subparagraph (ii) of paragraph (f)
of this subdivision, and except as otherwise provided in paragraphs (1)
and (4) of subdivision b of section 13-228 of this subchapter with
respect to determination of the amount of the balance sheet liability as
of June thirtieth, nineteen hundred eighty and balance sheet liability
contributions, for the purpose of any actuarial valuation, determination
or appraisal which is made pursuant to this chapter and which is used to
determine the amount of any contribution required to be paid by the city
or other public employer into the contingent reserve fund of the pension
fund in the nineteen hundred eighty--nineteen hundred eighty-one fiscal
year of the city and in each succeeding fiscal year thereof to and
including the nineteen hundred eighty-one--nineteen hundred eighty-two
fiscal year thereof, "regular interest" shall mean interest at the rate
of seven and one-half per centum per annum, compounded annually.
(iii) Subject to the provisions of subparagraph (ii) of paragraph (f)
of this subdivision, and except as otherwise provided in paragraphs (1)
and (4) of subdivision b of section 13-228 of this subchapter with
respect to determination of the amount of the balance sheet liability as
of June thirtieth, nineteen hundred eighty and balance sheet liability
contributions, for the purpose of any actuarial valuation, determination
or appraisal which is made pursuant to this subchapter and which is used
to determine the amount of any contribution required to be paid by the
city (or other obligors required to pay public employer contributions on
account of members) into the contingent reserve fund of the pension fund
in the nineteen hundred eighty-two--nineteen hundred eighty-three fiscal
year of the city and in each succeeding fiscal year thereof to and
including the nineteen hundred eighty-seven--nineteen hundred
eighty-eight fiscal year thereof, "regular interest" shall mean interest
at the rate of eight per centum per annum, compounded annually.
(iv) Subject to the provisions of subparagraph (ii) of paragraph (f)
of this subdivision, and except as otherwise provided in paragraphs (1)
and (4) of subdivision b of section 13-228 of this subchapter with
respect to determination of the amount of the balance sheet liability as
of June thirtieth, nineteen hundred eighty and balance sheet liability
contributions, for the purpose of any actuarial valuation, determination
or appraisal which is made pursuant to this subchapter and which is used
to determine the amount of any contribution required to be paid by the
city (or other obligors required to pay public employer contributions on
account of members) into the contingent reserve fund of the pension fund
in the nineteen hundred eighty-eight--nineteen hundred eighty-nine
fiscal year of the city and the nineteen hundred eighty-nine--nineteen
hundred ninety fiscal year thereof, "regular interest" shall mean
interest at the rate of eight and one-quarter per centum per annum,
compounded annually.
(d) Subject to the provisions of subparagraph (ii) of paragraph (f) of
this subdivision, and except as otherwise provided in paragraphs (1) and
(4) of subdivision b of section 13-228 of this subchapter with respect
to determination of the amount of the balance sheet liability as of June
thirtieth, nineteen hundred eighty and balance sheet liability
contributions, for the purpose of any actuarial valuation, determination
or appraisal which is made pursuant to this subchapter and which is used
to determine the amount of any contribution required to be paid by the
city or other public employer into the contingent reserve fund of the
pension fund in the city's nineteen hundred ninety--nineteen hundred
ninety-one fiscal year and in any subsequent fiscal year thereof,
"regular interest" shall mean interest at such rate per annum,
compounded annually, as shall be prescribed by the legislature in
section 13-638.2 of this title.
* (e) On or after May first, nineteen hundred eighty-nine and not
later than October thirty-first of such year, the board shall submit to
the governor, the temporary president and minority leader of the senate,
the speaker of the assembly, the majority and minority leaders of the
assembly, the state superintendent of insurance, the chairperson of the
permanent commission on public employee pension and retirement systems,
the mayor of the city and the members of the board of estimate and city
council thereof, the written recommendations of the board as to the rate
of interest and effective period thereof which should be established by
law as "regular interest" for the purpose specified in paragraph (d) of
this subdivision.
* NB Amended Ch. 911/85 § 32, language juxtaposed per Ch. 907/85 § 14
(f) * (i) Subject to the provisions of subparagraph (c) of paragraph
two of subdivision b of section 13-228 of this subchapter, nothing
contained in paragraphs (b), (c), (d) and (e) of this subdivision shall
be construed as prescribing for the purpose of crediting interest to
individual accounts in the annuity savings fund or to
reserves-for-increased-take-home-pay or for any other purpose besides
that specified in such paragraphs, a rate of regular interest other than
as prescribed in paragraph (a) or paragraph (g) of this subdivision.
* NB Amended Ch. 910/85 § 26, language juxtaposed per Ch. 907/85 § 14
(ii) Subject to the provisions of section 13-638.2 of this title,
nothing contained in paragraphs (c) and (d) of this subdivision shall be
construed as requiring the original unfunded accrued liability
contribution, as defined in subparagraph (a) of paragraph (3) of
subdivision b of section 13-228 of this subchapter, and the revised
unfunded accrued liability contribution, as defined in subparagraph (b)
of such paragraph (3), and the nineteen hundred eighty unfunded accrued
liability adjustment, as defined in subparagraph (c) of such paragraph
(3), and the nineteen hundred eighty-two unfunded accrued liability
adjustment, as defined in subparagraph (d) of such paragraph (3) to be
determined in any manner other than as prescribed in such subparagraphs.
Subject to the provisions of section 13-638.2 of this title, nothing
contained in paragraphs (c) and (d) of this subdivision shall be
construed as requiring any balance sheet liability or balance sheet
liability contribution computed pursuant to the provisions of paragraph
(4) of subdivision b of such section 13-228 of this subchapter to be
determined in any manner other than as prescribed in such paragraph (4).
* (g) (i) Commencing on August first, nineteen hundred eighty-three,
and continuing thereafter, "regular interest", in the cases of persons
who were members on July thirty-first, nineteen hundred eighty-three or
who thereafter became or become members, shall mean, subject to the
provisions of subparagraph (ii) to (x), inclusive, of this paragraph
(g), interest at seven per centum per annum, compounded annually.
(ii) (A) (1) Subject to the provisions of sub-items (2) and (3) of
this item (A), regular interest at the rate of seven per centum per
annum, compounded annually, shall be used as the actuarial interest
assumption for determining any actuarial equivalent benefit payable to
or on account of any seven percent member for actuarial equivalent
benefit purposes.
(2) Where an actuarial equivalent benefit is required by board
resolution to be determined for any seven percent member for actuarial
equivalent benefit purposes through the use of the modified Option 1
pension computation formula (as defined in subdivision twenty-eight of
this section), the actuarial interest assumptions used in making such
determination shall be as prescribed in such formula.
(3) Where it is provided by board resolution that a portion of an
actuarial equivalent benefit shall be determined for any such seven
percent member on the basis of gender-neutral mortality tables, and that
the remainder of such benefit shall be determined on the basis of
mortality tables which are not gender-neutral, regular interest at the
rate of seven per centum per annum, compounded annually, shall be used
as the actuarial interest assumption for determining the portion of such
benefit required by such resolution to be determined on the basis of
gender-neutral mortality tables and such rate of regular interest shall
not apply to the determination of the remainder of such benefit.
(B) Notwithstanding that the process of determining whether a member
is a seven percent member for actuarial equivalent benefit purposes may
include, for the purpose of ascertaining the highest applicable benefit,
alternative hypothetical benefit calculations utilizing a rate of
regular interest other than such rate of seven per centum, nothing
contained in subparagraph (i) of this paragraph (g) or in item (A) of
this subparagraph (ii) shall be construed as requiring that in the
determination of any actuarial equivalent benefit payable to or on
account of any member who is not a seven percent member for actuarial
equivalent benefit purposes, any rate of interest be used as the
actuarial interest assumption other than regular interest, compounded
annually, as prescribed by the applicable provisions of paragraph (a) of
this subdivision.
(iii) The provisions of item (A) of subparagraph (ii) of this
paragraph (g) shall not apply to any person who, prior to August first,
nineteen hundred eighty-three, retired as a member of the pension fund
for service or superannuation or for ordinary or accident disability and
was such a retiree immediately prior to such August first, provided
however, that if any such retiree returned or returns to city-service
and, on or after July thirty-first, nineteen hundred eighty-three, was
or is restored to membership in the pension fund as required or
permitted by law, the provisions of such item (A), from and after the
date of such restoration to membership, shall apply to such restored
member with respect to determination of any actuarial equivalent benefit
which is both (A) a benefit to which he or she became or becomes
entitled upon his or her subsequent retirement or subsequent
discontinuance of service so as to qualify for benefits, and (B) a
benefit which is not a continuation, without change, of a benefit which
had previously become payable to him or her by reason of his or her
prior retirement; provided further that nothing contained in the
preceding provisions of this subparagraph shall be construed as making
the provisions of item (A) of such subparagraph (ii) applicable to any
such restored member who was not or is not a seven percent member for
actuarial equivalent benefit purposes at the time for such subsequent
retirement or subsequent discontinuance of service.
(iv) (A) Subject to the provisions of items (B) and (C) of this
subparagraph (iv), the provisions of item (A) of subparagraph (ii) of
this paragraph (g) shall not apply to any member who, (1) prior to
August first, nineteen hundred eighty-three, discontinued service under
such circumstances that such member became a discontinued member, and
(2) was such a discontinued member immediately prior to such August
first.
(B) If such a discontinued member returned or returns to city-service
and on or after July thirty-first, nineteen hundred eighty-three and
before payability of his or her retirement allowance as such member
began or begins, again becomes an active member pursuant to the
applicable provisions of section 13-256 of this subchapter, the
provisions of item (A) of such subparagraph (ii) shall apply to him or
her on and after the date of such resumption of active membership;
provided that nothing contained in the preceding provisions of this item
(B) shall be construed as making the provisions of item (A) of such
subparagraph (ii) applicable to any such member who was not or is not a
seven percent member for actuarial equivalent benefit purposes at the
time of subsequent retirement or subsequent discontinuance of service so
as to qualify for benefits.
(C) If a discontinued member referred to in item (A) of this
subparagraph (iv) returned or returns to city-service and on or after
July thirty-first, nineteen hundred eighty-three and on or after the
date on which payability of his or her retirement allowance as such
member began or begins, again became or becomes an active member
pursuant to the applicable provisions of section 13-256 of the code, the
provisions of item (A) of such subparagraph (ii), on and after the date
of such resumption of active membership, shall apply to him or her with
respect to determination of any actuarial equivalent benefit which is
both (1) a benefit to which he or she became or becomes entitled upon
his or her subsequent retirement or subsequent discontinuance of service
so as to qualify for benefits, and (2) a benefit which is not a
continuation, without change, of a benefit which had previously become
payable to him or her by reason of his or her prior discontinuance of
service; provided that nothing contained in the preceding provisions of
this item (C) shall be construed as making item (A) of such subparagraph
(ii) applicable to any such member who was not or is not a seven percent
member for actuarial equivalent benefit purposes at such time of
subsequent retirement or subsequent discontinuance of service.
(v) (A) Subject to the provisions of item (B) of this subparagraph (v)
and to the provisions of subparagraph (viii) of this paragraph (g), the
selection of mode of benefit (as defined in subdivision twenty-nine of
this section) made prior to the date of enactment (as such date is
certified pursuant to section forty-one of the legislative law) of this
paragraph (g) by a person entitled to a recomputation of benefits
pursuant to the best-of-three-computations method (as defined in
subdivision thirty-one of this section) in relation to the retirement
allowance (or any component thereof) which became payable to him or her
prior to such date of enactment shall be the selection of mode of
benefit applicable to the recomputed retirement allowance (or any
corresponding component thereof) to which he or she is entitled under
the best-of-three-computations method (as defined in subdivision thirty
of this section), and any such person entitled to a recomputation of
benefits pursuant to the best-of-three-computations method shall not be
entitled to make any change in such selection of mode of benefit.
(B)(1) Notwithstanding the provisions of item (A) of this subparagraph
(v), a person entitled to a recomputation of benefits pursuant to the
best-of-three-computations method shall be entitled, to the extent and
in the manner prescribed in the succeeding sub-items of this item (B),
to change the original selection of mode of benefit applicable to the
retirement allowance (or any component thereof) which became payable to
him or her prior to the date of enactment of this paragraph (g).
(2) In any case where the original selection of mode of benefit of a
person entitled to a recomputation of benefits pursuant to the
best-of-three-computations method was a selection of a joint and
survivor option (as defined in subdivision thirty-two of this section),
no change from such original selection of a joint and survivor option
may be made under this item (B) to any other selection of mode of
benefit if the designated beneficiary selected with respect to such
joint and survivor option by such person entitled to a recomputation is
not alive at the time of filing of the form whereby such person entitled
to a recomputation seeks to change, pursuant to this item (B), his or
her original selection of such joint and survivor option.
(3) Except for a change of selection of mode of benefit prohibited by
sub-item two of this item (B), any original selection of mode of benefit
may be changed pursuant to this item (B) to another selection of mode of
benefit, provided all of the conditions set forth in sub-items four, six
and eight of this item (B) are met.
(4) Subject to the provisions of sub-items seven and eight of this
item (B), a person entitled to a recomputation of benefits pursuant to
the best-of-three-computations method may, pursuant to this item (B),
effect any such permissible change of his or her original selection of
mode of benefit by executing, acknowledging and filing with the pension
fund, within the applicable period of time prescribed by sub-item six of
this item, a new selection of mode of benefit. If the original selection
of mode of benefit of the person filing such new selection was a
selection of a joint and survivor option, such new selection shall be
void and of no effect unless (a) the designated beneficiary named in
such original selection of a joint and survivor option signs and
acknowledges, in the form for such new selection of mode of benefit, a
consent to such changed selection of mode of benefit, and (b) such
original designated beneficiary is alive on the date of filing of such
new selection.
(5) The pension fund shall mail to each person entitled to a
recomputation of benefits pursuant to the best-of-three-computations
method a letter showing amounts of benefits, as recomputed for such
person under the best-of-three-computations method, for modes of benefit
other than joint and survivor options, together with a statement
advising such person that upon request the amounts of recomputed
benefits under joint and survivor options will be provided.
(6) The period of time within which any such person entitled to a
recomputation may file a new selection of mode of benefit as provided
for in sub-items three and four of this item (B) shall be sixty days
after the date of issuance set forth in such letter mailed to such
person pursuant to sub-item five of this item; provided, however, that
if, pursuant to the request of such person, a later letter setting forth
benefits information in relation to new selection of a mode of benefit
is mailed to such person by the pension fund, such period of time for
filing a new selection of mode of benefit shall be thirty days after the
date of issuance set forth in such later letter.
(7) Upon the filing of a new selection of mode of benefit pursuant to
this item (B) by any such person entitled to a recomputation, such new
selection shall be irrevocable and such person shall not be entitled to
file any other selection of mode of benefit with respect to such
retirement allowance (or any component thereof) which became payable to
him or her prior to the date of enactment of this paragraph (g).
(8) No new selection of mode of benefit filed pursuant to the
preceding sub-items of this item (B) shall be valid or effective as a
change of mode of benefit or for any other purpose unless the person
entitled to a recomputation of benefits pursuant to the
best-of-three-computations method who files such new selection is alive
on the date (hereinafter referred to as the "validating date") three
hundred sixty-five days after the date of filing of such new selection
of mode of benefit. If such person filing such new selection of mode of
benefit is alive on the validating date with respect to such new
selection, such new selection shall become valid and effective on such
validating date; provided, however, that from and after the effective
date of retirement of such person making such valid and effective new
selection of mode of benefit (if he or she retired for service or
superannuation or for ordinary or accident disability) or from and after
the date on which payability of the original benefits of such person
began (if he or she was a discontinued member), such new selection of
mode of benefit shall supersede such original selection of mode of
benefit and shall apply to and govern the amount of benefits payable to
such person or to his or her designated beneficiary or estate.
(vi) Subject to the provisions of subparagraph (viii) of this
paragraph (g), in any case where a member who retired before August
first, nineteen hundred eighty-three for service or superannuation or
for ordinary or accident disability returned or returns to city-service
and, on or after July thirty-first, nineteen hundred eighty-three,
re-entered or re-enters membership in the pension fund, nothing
contained in subparagraphs (i) to (iv), inclusive of this paragraph (g)
shall be construed as authorizing or permitting him or her to change any
selection of mode of benefit (as defined in subdivision twenty-nine of
this section) made by him or her with respect to any benefit which, upon
his or her subsequent retirement or discontinuance of service so as to
qualify for benefits, is payable to him or her as a continuation,
without change, of a benefit which had previously become payable to him
or her by reason of his or her prior retirement.
(vii) Subject to the provisions of subparagraph (viii) of this
paragraph (g), in any case where a discontinued member referred to in
item (A) of subparagraph (iv) of this paragraph returned or returns to
city-service and, on or after July thirty-first, nineteen hundred
eighty-three, again became or becomes an active member pursuant to
applicable provisions of law, nothing contained in subparagraphs (i) to
(iv), inclusive, of this paragraph (g) shall be construed as authorizing
or permitting him or her to change any selection of mode of benefit made
by him or her with respect to any benefit which, upon his or her
subsequent retirement or discontinuance of service so as to qualify for
benefits, is payable to him or her as a continuation, without change, of
a benefit which had previously become payable to him or her by reason of
his or her prior discontinuance of service.
(viii) Nothing contained in subparagraphs (v), (vi) and (vii) of this
paragraph (g) shall be construed as preventing:
(A) any person subject to such subparagraph (v) who, on or after July
thirty-first, nineteen hundred eighty-three, re-entered or re-enters
city-service and again became or becomes an active member; or
(B) any re-entered member referred to in such subparagraph (vi) or
subparagraph (vii);
upon his or her subsequent retirement, from exercising any right, which
any other applicable law grants to him or her under such circumstances,
to make a selection of mode of benefit (as defined in subdivision
twenty-nine of this section).
(ix) Notwithstanding the provisions of subparagraph (i) of this
paragraph (g) prescribing a rate of regular interest of seven per centum
per annum, compounded annually, for specified members described in such
subparagraph (i), the rate of regular interest which shall be applied to
fix the rate of interest on any loan to any such member eligible to
borrow shall be four per centum per annum, compounded annually.
(x) The rate of regular interest applicable to determination of the
rate of member contribution of any member whose last membership began
prior to the date of enactment (as certified pursuant to section
forty-one of the legislative law) of this paragraph (g) shall be the
rate of regular interest which was applicable, under the provisions of
law in effect prior to such date of enactment, to the determination of
the rate of member contribution of such member, and nothing contained in
the preceding subparagraphs of this paragraph (g) shall be construed as
applicable to the determination of the rate of member contribution of
any such member whose last membership so began or as changing or
affecting the rate of member contribution of any such member.
* NB Added Ch. 910/85 § 28, language juxtaposed per Ch. 907/85 § 14
9. "Pension" shall mean payments for life derived from appropriations
made by the city as provided in this subchapter.
10. "Annuity" shall mean payments for life derived from contributions
made by a member as provided in this subchapter.
11. "Dependent benefit" shall mean payments derived from contributions
made by a member as provided in section 13-253 of this subchapter.
12. "Retirement allowance" shall mean the pension plus the annuity and
the pension-providing-for-increased-take-home-pay, if any.
13. "Pension reserve" shall mean the present value of all payments to
be made on account of any pension, or benefit in lieu of any pension,
granted under the provisions of this subchapter, computed upon the basis
of such mortality tables as shall be adopted by the board with regular
interest.
14. "Annuity reserve" shall mean the present value of all payments to
be made on account of any annuity, or benefit in lieu of any annuity,
granted under the provisions of this subchapter, computed upon the basis
of such mortality tables as shall be adopted by the board with regular
interest.
15. "Fiscal year" shall mean any year commencing with the first day of
July and ending with the thirtieth day of June next following.
16. "Total service" shall mean all service of a member allowable as
provided in subdivision three of this section and section 13-218 of this
subchapter.
17. "Board" shall mean the board of trustees provided for in section
13-216 of this subchapter.
18. Pension-providing-for-increased-take-home-pay. The annual
allowance for life payable in monthly installments derived from
contributions made by the city to the contingent reserve fund pursuant
to section 13-226 of this subchapter.
19. Reserve-for-increased-take-home-pay. The amount of the reserve
provided by the city which shall be a sum consisting of the total of all
products obtained by multiplying the compensation of the member, during
each period of reduction of member contributions under section 13-226 of
this subchapter, by the percentage of reduction of his contributions
applicable under such section with respect to such period, plus regular
interest, and additional interest, if any, thereon.
20. "Special interest". A distribution to the annuity savings fund, in
addition to regular interest, which distribution (a) for each of the
periods as to which the provisions of section 13-234 of this subchapter
or section 13-638.2 of this title grant special interest, consists of
the amount prescribed by such provisions for such period and (b) for
each such period, is credited in such applicable amount to the accounts
in the annuity savings fund of members who are eligible under such
provisions for crediting of such amount for such period.
21. "Additional interest". A distribution to the
reserve-for-increased-take-home-pay in addition to regular interest,
which distribution (a) for each of the periods as to which the
provisions of section 13-234 of this subchapter or section 13-638.2 of
this title grant additional interest, consists of the amount prescribed
by such provisions for such period and (b) for each such period, is to
be included in such applicable amount in the
reserve-for-increased-take-home pay of each member who is eligible under
such provisions for inclusion of such amount for such period.
22. "Discontinued member." A member who has discontinued police
service and who has a vested right to a deferred retirement allowance
under section 13-256 of this subchapter.
23. "Police service." Service in the uniformed force of the police
department, as a member of such force, including service for which
credit is granted by section 14-112 of the code, but excluding any
service credit acquired by transfer or otherwise under any provision of
law.
24. "Supplementary interest". An annual allowance, in addition to
regular interest, of interest on the mean amount for the preceding year
in each of the funds provided for in accordance with the provisions of
this subchapter (excluding, however, the annuity savings fund and the
amount of reserve-for-increased-take-home-pay in the contingent reserve
fund), which allowance, (a) for each of the periods as to which the
provisions of section 13-234 of this subchapter or section 13-638.2 of
this title grant supplementary interest, consists of the amount
prescribed by such provisions for each period and (b) for each such
period, is credited in such applicable amount to such funds at the time,
in the manner, to the extent and subject to the exclusions prescribed by
the provisions of such section.
* 25. "Actuarial equivalent benefit". Any benefit which by law is
required to be an actuarial equivalent or by law is required to be
determined on the basis of an actuarial equivalent.
* NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
* 26. "Seven percent member for actuarial equivalent benefit
purposes". (a) A member who meets all of the following conditions:
(i) subparagraph (i) of paragraph (g) of subdivision eight of this
section (relating to the definition of members as to whom regular
interest at seven per centum per annum, compounded annually, applies)
applies to such member; and
(ii) an actuarial equivalent benefit has become payable to or on
account of such member; and
(iii) it is provided by a resolution adopted by the board (A) that a
mortality table which does not differentiate on the basis of sex shall
be used to calculate such actuarial equivalent benefit or a portion of
such benefit, or (B) that the modified Option 1 pension computation
formula (as defined in subdivision twenty-eight of this section) shall
be used to calculate such actuarial equivalent benefit.
(b) Except in cases to which the modified Option 1 pension computation
formula applies pursuant to a resolution adopted by the board, nothing
contained in subparagraph (iii) of paragraph (a) of this subdivision
twenty-six shall be construed as referring to or including any
calculation of an actuarial equivalent benefit (or portion of such
benefit) payable to any person where such calculation is required by
board resolution to be made throught the use of a sex-differentiated
mortality table.
* NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
* 27. "Tier I member". A member whose benefits (other than a
supplemental retirement allowance) are prescribed by this subchapter and
who is not subject to the provisions of article eleven, article fourteen
or article fifteen of the retirement and social security law.
* NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
* 28. "Modified Option 1 pension computation formula". (a) The method
of computing the Option 1 pension component of a retirement allowance
payable to a Tier I member and the amount of the Option 1 benefit
payable to the beneficiary or estate of such member who selected or
selects Option 1 as to such pension component, which method of
computation is as prescribed by the succeeding paragraphs of this
subdivision twenty-eight.
(b) The initial reserve for such pension component shall be computed
through use of mortality tables which do not differentiate on the basis
of sex (hereinafter referred to as "gender-neutral mortality tables")
and an interest assumption consisting of regular interest of seven per
centum per annum, compounded annually.
(c) Solely for the purpose of use as the minuend from which the
payments of such pension component to such member are subtracted in
order to determine the amount of the Option 1 benefit payable, upon such
member's death, to such member's beneficiary or estate by reason of such
Option 1 selection in relation to such pension component, the present
value of such member's maximum pension, as it was at the time of such
member's retirement, shall be deemed to be the greatest of:
(i) such present value determined on the basis of gender-neutral
mortality tables and an interest assumption consisting of regular
interest of seven per centum per annum, compounded annually; or
(ii) such present value determined on the basis of the female
mortality tables and the regular interest applicable to such member in
effect immediately prior to the date of enactment (as certified pursuant
to section forty-one of the legislative law) of this subdivision
twenty-eight; or
(iii) such present value determined on the basis of the male mortality
tables and the regular interest applicable to such member in effect
immediately prior to the date of enactment of this subdivision.
(d) The pension component payable to such member shall be computed on
the basis of gender-neutral mortality tables and an interest assumption
consisting of regular interest of seven per centum per annum, compounded
annually; so that:
(i) the present value, as it was at the time of such member's
retirement, of such component; plus
(ii) the present value, as it was at the time of such member's
retirement, of the amount payable to such member's Option 1 beneficiary
or estate upon the death of the member as provided for by the applicable
provisions of paragraph (e) of this subdivision;
shall be equal to the Option 1 initial reserve determined for such
pension component with respect to such member pursuant to the provisions
of paragraph (b) of this subdivision.
(e) Where such member dies before he or she has received payments on
account of such pension component equal to the present value of such
member's maximum pension as computed pursuant to paragraph (c) of this
subdivision, the Option 1 benefit payable to the beneficiary or estate
of such deceased member by reason of such Option 1 selection in relation
to such pension component, shall be the remainder obtained by
subtracting from such present value determined pursuant to such
paragraph (c) in relation to such pension component, the total of such
Option 1 payments on account of such pension component received by or
payable to such member for the period prior to his or her death.
(f) In relation to the Option 1 benefits determined pursuant to the
method of computation set forth in this subdivision twenty-eight by
reason of discontinuance of city-service by a discontinued member, the
phrase "time of such member's retirement", as set forth in paragraphs
(c) and (d) of this subdivision, shall be deemed, for the purpose of
this subdivision, to mean the date of commencement of the retirement
allowance of such discontinued member.
* NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
* 29. "Selection of mode of benefit". The choice made by a member (as
permitted by and pursuant to the requirements of law governing such
choice by such member) as to whether the maximum amount of his or her
retirement allowance or a component thereof shall be payable or such
retirement allowance or a component thereof shall be payable under an
option selected by the member. The term "selection of mode of benefit"
shall include a case where the maximum retirement allowance or a maximum
component thereof becomes payable because of a member's omission, within
the time permitted by law, to select the maximum benefit or an option.
* NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
* 30. "Best-of-three-computations method". (a) A method (as prescribed
by a resolution of the board) under which a retirement allowance (or
portion thereof) payable to a member is required to be determined for
such member so as to be the greatest of:
(i) such retirement allowance (or portion thereof) determined on the
basis of gender-neutral mortality tables and regular interest at the
rate of seven per centum per annum; or
(ii) such retirement allowance (or portion thereof) determined on the
basis of female mortality tables and the regular interest applicable to
such member as of a time prescribed in such resolution; or
(iii) such retirement allowance (or portion thereof) determined on the
basis of male mortality tables and the regular interest applicable to
such member as of a time prescribed in such resolution.
(b) Where, under the provisions of any such resolution of the board,
the modified Option 1 pension computation formula (as defined in
subdivision twenty-eight of this section) applies to any member, the
term "best-of-three-computations method", where used in relation to such
member, shall be deemed to include such modified Option 1 pension
computation formula, to the extent that such formula governs the
determination of the pension component (or portion thereof) of such
member's retirement allowance.
* NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
* 31. "Person entitled to a recomputation of benefits pursuant to the
best-of-three-computations method". Any person who meets all of the
conditions stated below in this subdivision thirty-one: (a) such person,
during the period beginning on August first, nineteen hundred
eighty-three and ending on the date next preceding the date of enactment
(as such date is certified pursuant to section forty-one of the
legislative law) of this subdivision thirty-one, (i) retired for service
or superannuation or for ordinary or accident disability or (ii)
discontinued service so as to become a discontinued member; and
(b) such person's retirement allowance (or a portion thereof), by
reason of such retirement or discontinuance of service is required by a
resolution adopted by the board to be redetermined pursuant to the
best-of-three-computations method (as defined in subdivision thirty of
this section); and
(c) a first payment on account of his or her retirement allowance (as
such retirement allowance was determined prior to the date of enactment
of this subdivision) was made prior to such date of enactment.
* NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
* 32. "Joint and survivor option". (a) Any option under which, at the
time when such option is selected, a choice is made which includes both:
(i) a benefit payable for the lifetime of the retired or vested member
by whom or in whose behalf such option is selected; and
(ii) a benefit (A) which consists of an amount equal to or
constituting a percentage of such retired or vested member's benefit and
(B) which is payable for the lifetime of a designated beneficiary
selected at the time when such option is selected.
(b) In any case where an option described in paragraph (a) of this
subdivision thirty-two includes a provision prescribing that if the
designated beneficiary predeceases such retired or vested member, a
maximum benefit shall become payable to such member, such option shall
nevertheless be deemed to be a joint and survivor option.
* NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
* 33. "Normal rate of contribution." The proportion of the earnable
compensation of a member which is required to be deducted from the
compensation of such member by the applicable provisions of section
13-225 of this subchapter as his or her member contributions, exclusive
of any increase in such contributions pursuant to subdivision c or
subdivision d of such section 13-225 or any decrease thereof on account
of any program for increased-take-home-pay or pursuant to subdivision
one of section one hundred thirty-eight-b of the retirement and social
security law (relating to election to decrease member contributions by
contributions due on account of social security coverage).
* NB Expires per ch. 114/89 § 16
* 34. "Member contributions eligible for pick up by the employer." (a)
With respect to any payroll period for a member (other than a member who
is not required to contribute during such payroll period because of his
or her currently effective election to discontinue member contributions
pursuant to subdivision b of section 13-225 of this subchapter), the
term "member contributions eligible for pick up by the employer" shall
mean the amount of member contributions which, in the absence of an
employer pick up program applicable to such member pursuant to section
13-225.1 of this subchapter (providing for pick up of required member
contributions), would be required by law to be deducted, on account of
such member's normal rate of contribution, from the compensation of such
member for such payroll period, after (1) giving effect to any reduction
in such contributions required under any program for
increased-take-home-pay or pursuant to subdivision one of section one
hundred thirty-eight-b of the retirement and social security law and (2)
excluding any deductions from such compensation (or redeposits,
restorations or payments) on account of (i) loans or withdrawals of
excess contributions or (ii) any election by such member to increase his
or her contributions pursuant to subdivision c or subdivision d of
section 13-225 of this subchapter or (iii) any other cause not
attributable to the member's normal rate of contribution after
reduction, if any, in such rate as described in subparagraph one of this
paragraph (a).
(b) If no deductions on account of a member's normal rate of
contribution are required by law to be made from the compensation of any
member for any payroll period, such member shall not have, for such
payroll period, any member contributions eligible for pick up by the
employer. The amount of any member's member contributions eligible for
pick up by the employer for any payroll period shall be determined
solely on the basis of compensation paid to such member for such payroll
period by his or her public employer. A member shall not have any member
contributions eligible for pick up by the employer with respect to any
payroll period for which he or she is not paid compensation by his or
her public employer.
* NB Expires per ch. 114/89 § 16
* 35. "Starting date for pick up." The first day of the first whole
payroll period commencing after the date which is three months after the
internal revenue service shall have issued a ruling that member
contributions picked up pursuant to section 13-225.1 of this subchapter
are not includible as gross income for federal income tax purposes until
distributed or made available.
* NB Expires per ch. 114/89 § 16
Section 13-215
§ 13-215 Membership; composition and eligibility.
a. The membership of the pension fund shall consist of:
(1) all persons in city-service, as defined in this subchapter, in
positions in the competitive class of the civil service, who shall serve
probationary periods, or who shall receive permanent appointments in the
police force after the time when this section shall take effect; and
(2) all persons in city-service, as defined in this subchapter, who
hold a position of surgeon of police classified in the non-competitive
class of the civil service.
b. Notwithstanding any other provision of this subchapter or any other
law to the contrary, in any case where a member who is eligible to
retire for service is appointed police commissioner or a deputy police
commissioner, he or she shall, while serving as police commissioner or
deputy police commissioner, continue to be a member of the pension fund.
For the purposes of this subchapter, a member serving as police
commissioner or deputy police commissioner whose membership is continued
pursuant to this subdivision b or whose membership is restored pursuant
to subdivision a of section 13-262 of this subchapter shall, during the
period of such continuance or restoration of membership, be deemed to be
a member of the police force in the department and his or her service as
police commissioner or deputy police commissioner during such period
shall be deemed to be service in such force.
Section 13-216
§ 13-216 Board of trustees. a. The police pension fund shall be
administered by a board of trustees which shall, subject to the
provisions of law from time to time, establish rules and regulations for
the administration and transaction of the business of such fund and for
the control and disposition thereof. The provisions of sections one
thousand forty-two, one thousand forty-three, one thousand forty-four
and one thousand forty-five of the New York city charter shall not be
construed to apply to the adoption of such rules and regulations. Such
board shall consist of:
1. The police commissioner who shall be chairperson of the board and
who shall be entitled to cast one and one-half votes.
2. The comptroller of the city who shall be entitled to cast one and
one-half votes.
3. A representative of the mayor who shall be appointed by the mayor
and who shall be entitled to cast one and one-half votes.
4. The director of finance of the city who shall be entitled to cast
one and one-half votes.
5. The president of the patrolmen's benevolent association of the city
of New York who shall be entitled to cast one vote.
6. The first vice-president of the patrolmen's benevolent association
of the city of New York who shall be entitled to cast one vote.
7. The second vice-president of the patrolmen's benevolent association
of the city of New York who shall be entitled to cast one vote.
8. The chairperson of the board of trustees of the patrolmen's
benevolent association of the city of New York who shall be entitled to
cast one vote.
9. The president of the captains' endowment association of the police
department of the city of New York who shall be entitled to cast
one-half vote.
10. The president of the lieutenants' benevolent association, police
department, city of New York who shall be entitled to cast one-half
vote.
11. The president of the sergeants' benevolent association of the city
of New York who shall be entitled to cast one-half vote.
12. The president of the detectives' endowment association of the city
of New York who shall be entitled to cast one-half vote.
13. (i) Where, during any six month period during a fiscal year, as
defined in subdivision three of section 13-268 of the code, the equity
portion of the assets of the pension fund is less than forty-five
percent, subparagraph (ii) of this paragraph shall be effective during
the succeeding fiscal year.
(ii) Two investment representatives, one of whom shall be appointed by
the mayor and one of whom shall be appointed by the comptroller upon the
occurrence of the condition specified in subparagraph (i) of this
paragraph. Each such representative shall be entitled to cast one vote
only in relation to determinations of the board:
(A) as to whether the assets of the pension fund shall be invested in
equities or fixed income securities and the proportion of the assets of
the pension fund to be invested in equities and fixed income securities;
and
(B) as to the identity, nature, character and amounts of the equities
(within the proportion as determined under item (A) of this
subparagraph) to be acquired, held, sold, disposed of or otherwise dealt
with by the pension fund; and
(C) as to any steps necessary to effectuate any of the functions set
forth in items (A) and (B) of this subparagraph; and
(D) as to delegation by the board, pursuant to law, of the functions
described in items (A), (B) and (C) of this subparagraph.
b. Subject to the provisions of subdivision b-1 and subdivision f of
this section, every act of the board of trustees shall be by resolution
which shall be adopted only by a vote of at least seven-twelfths of the
whole number of votes authorized to be cast by all of the members of
such board.
b-1. Every act of the board of trustees in relation to the investment
matters referred to in paragraph thirteen of subdivision a of this
section shall be by resolution which shall be adopted only by a vote of
at least eight-fourteenths of the whole number of votes authorized to be
cast by all of the members of the board empowered to vote on such
investment matters.
c. The police commissioner shall appoint an executive director of the
police pension fund, provided, however, that if such designee of the
police commissioner is not a member of the uniformed force of the police
department, the board of trustees shall approve such appointment. The
executive director of the police pension fund shall perform such duties
as may be conferred upon him or her by the chairperson of the board, by
resolution passed by the board, or by law.
d. Any member of the board, referred to in paragraphs five through
twelve, respectively, of subdivision a of this section, shall be members
of the uniformed force and may authorize in writing at any time any
other officer of the respective associations to represent him or her on
such board in the event of his or her absence or disability, provided,
however, that the by-laws or constitution of such respective
associations provide for the designation of a representative in such
event.
e. 1. In addition to the powers conferred upon it by any other
provision of law, the board of trustees shall, on or before April first
of each year, establish a budget, sufficient to fulfill the powers,
duties and responsibilities set forth in this chapter and any other
provision of law which sets forth the benefits of members of the pension
fund and may draw upon the assets of the pension fund to fund such
budget, subject to the provisions of paragraphs two, three, four, five
and six of this subdivision and subdivisions f, g, h and i of this
section. The provisions of this section shall not be applicable to the
payment of investment expenses pursuant to section 13-705 of this title
and nothing contained herein shall be construed as abolishing, limiting,
or modifying any power of the board of trustees to provide for the
payment of investment expenses pursuant to section 13-705 of this title.
2. If a budget has not been adopted by the commencement of the new
fiscal year, the budget for the preceding fiscal year shall be deemed to
have been extended for the new fiscal year until such time as a new
budget is adopted.
3. Any budget in effect pursuant to paragraph one or two of this
subdivision may be modified during such succeeding fiscal year.
4. Notwithstanding any other provision of law, the board of trustees
shall have the power either directly or by delegation to the executive
director, to obtain by employment or by contract the goods, property and
services necessary to fulfill its powers, duties and responsibilities
within the appropriation authorized by the board of trustees pursuant to
paragraph one of this subdivision.
5. (i) The pension fund shall be considered an entity separate from
the city of New York police department. The board of trustees of the
pension fund shall work closely with the city of New York police
department.
(ii) The provisions of chapter seventeen of the New York city charter
shall continue to apply to the police pension fund and such fund shall
constitute an agency for the purposes of such chapter. The board of
trustees shall not obtain any legal services by the retention of
employees or by contract unless the corporation counsel shall consent
thereto.
6. All contracts for goods or services entered into by the police
pension fund shall be procured as prescribed in chapter thirteen of the
New York city charter; provided, however, that where the provisions of
such chapter thirteen require action by the mayor in regard to a
particular procurement (except for mayoral action pursuant to
subdivision c of section three hundred thirty-four of the New York city
charter) such action shall not be taken by the mayor or such appointee
of the mayor but shall be taken by the board of trustees or the
executive director pursuant to a resolution adopted by the board of
trustees delegating such authority to the executive director.
f. Notwithstanding any other provisions of this section, any
resolution of the board of trustees which establishes a budget or
modifies a budget pursuant to the provisions of paragraph one or three
of subdivision e of this section shall require the concurrence of the
comptroller and the representative of the mayor. This provision shall
only apply to this subdivision and nothing contained herein shall be
construed to apply to any other vote of the board. No assets of the
police pension fund shall be drawn upon pursuant to the provisions of
paragraph one of subdivision e of this section unless authorized by a
budget or budget modification established by such resolution of the
board of trustees.
g. Employment by the police pension fund shall constitute city-service
for the purposes of this subchapter for those employees that are members
of the fund pursuant to section 13-215 of this subchapter; for all other
employees, employment by the pension fund shall constitute city service
for the purposes of chapter one of title thirteen of this code;
provided, however, that nothing contained herein shall be construed as
granting membership rights in the pension fund or any retirement system
to a contractor of such fund or such contractor's employees. Employees
of the pension fund shall be deemed to be employees of the city of New
York for the purposes of chapter thirty-five of the New York city
charter and title twelve of this code.
h. Whenever the assets of the pension fund are drawn upon pursuant to
the provisions of paragraph one of subdivision e of this section all
monies so withdrawn shall be made a charge to be paid by the employer
otherwise required to make contributions to the police pension fund no
later than the end of the fiscal year next succeeding the time period
during which such assets were drawn upon, provided, however, that where
such charge is for assets so withdrawn in fiscal year two thousand
four--two thousand five or in any fiscal year thereafter, such charge
shall be paid by such employer no later than the end of the second
fiscal year succeeding the time period during which such assets are
drawn upon. The actuary shall calculate such charge to be paid by the
employer. All charges to be paid pursuant to this subdivision shall be
paid at the regular rate of interest utilized by the actuary in
determining employer contributions to the pension fund pursuant to the
provisions of paragraph two of subdivision b of section 13-638.2 of this
title.
i. The funds withdrawn from the pension fund shall not be utilized for
any purpose other than the budget established by the board of trustees.
All expenditures of the pension fund shall be subject to audit by the
comptroller, who may make recommendations, including but not limited to,
procedures designed to improve accounting and expenditure control. All
expenditures of the pension fund shall be reported to the mayor's office
of management and budget and the budgetary office of the city of New
York police department.
Section 13-217
§ 13-217 Rules and regulations. Each member shall be subject, until
retirement, to all the provisions of this subchapter and to all the
rules and regulations adopted by such board applying to members.
Section 13-218
§ 13-218 Credit for service. a. Subject to the following and to all
other provisions of this subchapter, including such rules and
regulations as such board shall adopt in pursuance thereof, such board
shall determine and may modify allowances for service.
b. Such board shall fix and determine how much service rendered in any
year shall be the equivalent of a year of service and of parts thereof,
but shall credit one year for two hundred fifty or more days of service
and not more than one year for all service in any calendar year.
c. Time during which a member was absent on leave without pay shall
not be allowed in computing service as a member except as to time
subsequent to approval of such allowance for retirement purposes granted
by the commissioner and approved by such board. Time during which a
member was on a preferred civil service list shall not be construed to
form part of the period within which membership must begin.
d. (1) Any person who was a member of the New York city employees'
retirement system, and whose membership therein was terminated by his or
her attaining membership in the police pension fund, subchapter two, and
who had withdrawn his or her contributions to the New York city
employees' retirement system, shall receive credit in the said police
pension fund for prior creditable city service by paying into the
annuity savings fund of the said police pension fund the amount of the
employee contributions required to have been paid into the New York city
employees' retirement system for such prior creditable city service,
prior to July first, nineteen hundred eighty-two, and, subject to the
provisions of paragraph two of this subdivision, and shall have the
period of such prior creditable city service counted as service as a
police officer for the purpose only of determining the amount of his or
her pension or retirement allowance. Subject to the provisions of
paragraph two and paragraph three of this subdivision, no member of the
said police pension fund shall be eligible for retirement for service
until he or she has served in the police force for a minimum period of
twenty or twenty-five years, or until he or she has reached the age of
fifty-five, according to the minimum period or age of retirement elected
by such member prior to the certification of his or her rate of
contribution.
(2) (a) Subject to the provisions of subparagraph (b) of this
paragraph, and period of allowable service rendered as an "EMT member",
as defined in paragraph one of subdivision a of section 13-157.2 of this
title, as added by chapter five hundred seventy-seven of the laws of two
thousand, which immediately precedes service in the police force, and
any period of allowable service rendered (i) as a peace officer, as
defined in section 2.10 of the criminal procedure law, (ii) in the title
of sheriff, deputy sheriff, marshal or district attorney investigator,
or (iii) in any position specified in appendix A of operations order
2-25 of the police department of the city of New York dated December
eleventh, two thousand two which immediately precedes service in the
police force, and any period of allowable service in the uniformed
transit police force, uniformed correction force, housing police service
and the uniformed force of the department of sanitation immediately
preceding service in the police force, credit for which immediately
preceding allowable service was or is obtained pursuant to paragraph one
of this subdivision, shall be deemed to be service in the police force
for purposes of eligibility for benefits and to determine the amount of
benefits under the police pension fund.
(b) In any case where, by reason of credit for such immediately
preceding service, the date of completion of such member's minimum
period for service retirement under the police pension fund became or
becomes earlier than such date would have been or would be if such
credit for immediately preceding service had not been so acquired, there
shall be effected with respect to such member: (i) such increase in such
member's normal rate of contribution, effective as of the date on which
such member last became a member of the police pension fund, as may be
necessary to reflect such earlier date of eligibility for service
retirement; and
(ii) the charging of such member who acquired or acquires such credit
for such immediately preceding service with a contribution rate
deficiency:
(A) which shall accrue from the date on which such member last became
a member of the police pension fund; and
(B) which shall be in such amount as shall be the product of the
increase provided in item (i) of this subparagraph (b) and the member's
compensation during the period of time provided in sub-item (A) of this
item (ii); and
(C) which, unless paid by such member in such manner as shall be
prescribed by rules and regulations adopted by the board of trustees of
such pension fund, shall require an appropriate adjustment of any
benefit which may become payable to or on account of such member.
(3) Nothing contained in subparagraph (b) of paragraph two of this
subdivision d shall cause a member who acquires or acquired service
credit by reason of the provisions of subparagraph (a) of such paragraph
two to be denied:
(a) the right or entitlement, if any, to terminate or reduce
contributions to such pension fund or to a refund of or credit for
contributions paid during a period when the member would have been
entitled to terminate or reduce such contributions if he or she had such
service credit on the date when he or she last became a member of the
pension fund; or
(b) any other right, benefit or entitlement of a similarly situated
member of such pension fund with equal total service credit consisting
only of service in the uniformed force of the police department,
provided that the foregoing provisions of this paragraph three shall not
be construed in a manner inconsistent with the provisions of
subparagraph (b) of paragraph two of this subdivision d.
e. Any person who was a member of the board of education retirement
system and whose membership therein was terminated by such member
attaining membership in the police pension fund, subchapter two, shall
receive credit in the said police pension fund for prior creditable city
service by paying into the annuity savings fund of the said police
pension fund the amount of the employee contributions required to have
been paid into the board of education retirement system for such prior
creditable city service, within one year after July sixteenth, nineteen
hundred sixty-five shall take effect, or within one year after becoming
a member of the police pension fund, subchapter two, whichever is later,
and shall have the period of such prior creditable city service counted
as service as a police officer for the purpose only of determining the
amount of such member's pension or retirement allowance, provided
however, that no member of the said police pension fund shall be
eligible for retirement for service until he or she has served in the
police force for a minimum period of twenty or twenty-five years, or
until he or she has reached the age of fifty-five, according to the
minimum period or age of retirement elected by such member prior to the
certification of his or her rate of contribution.
f. (1) Upon election, any member of the police pension fund,
subchapter two of this chapter, who was a member of the New York city
employees' retirement system while employed as a New York city police
department trainee shall receive credit in the said police pension fund,
subchapter two of this chapter, for prior creditable service in the New
York city employees' retirement system earned while employed as a New
York city police department police trainee by paying into the annuity
savings fund of said police pension fund additional member contributions
plus interest which would have been paid or credited had such member
been a member of the police pension fund, subchapter two of this
chapter, from his or her last date of appointment as a New York city
police department trainee or date of membership in the New York city
employees' retirement system, whichever is later, provided such payment
is made within one year after this subdivision shall take effect, and
the period of such prior service credit shall be deemed to be service in
the police force for purposes of eligibility for benefits and to
determine the amounts of benefits under the police pension fund.
(2) A member of the police pension fund, subchapter two of this
chapter, who acquires service credit by reason of the provisions of
paragraph one of this subdivision shall be entitled to any other right,
benefit or entitlement of a similarly situated member of such pension
fund with equal total service credit consisting only of service in the
uniformed force of the police department.
g. (1) (a) Upon election, the following persons (each of whom has been
granted a retroactive appointment eligibility date as a New York city
police department trainee, pursuant to Acha v. Beame, 570 F.2d 57) shall
receive credit in the police pension fund, subchapter two of this
chapter, for the period of such retroactive eligibility by paying into
the annuity savings fund of said police pension fund additional member
contributions plus interest which would have been paid or credited had
such member been a member of the police pension fund from the
retroactive appointment eligibility date as a New York city police
department trainee, provided such payment is made within one year after
this subdivision takes effect:
Name Tax Registry No. Name Tax Registry No.
Catherine Wyman 872015 Maureen Kirwan 867289
Kathleen Jappe 866563 Kathleen Driscoll 866837
Martina Guidone 866846 Carol Conry 867273
Kathleen Fogarty 866680 Kathleen Reynolds 872113
Gail Petersen 866867 Catherine DeLaRionda 866830
Alicia Parker 866201 Charlene Davey 866437
Catherine Codd 870819 Mary Boyd 866818
Karen Krizan 867507 Laura Pascual 866684
Kathleen Sammon 866682 Kerry Schreiner 866565
Patricia Scarlett 866900 Kathleen Groger 866840
Eleanor Del Rosario 866867 Anita Matusiak 866879
Yvonne Mitchell 868415 Mary Jo Yakowenko 867916
Lorraine Martucciello 866878.
(b) The period of such retroactivity shall be deemed to be service in
the police force for purposes of eligibility for benefits and to
determine the amounts of benefits under the police pension fund. (2) A
member of the police pension fund, subchapter two of this chapter, who
acquires service credit by reason of the provisions of paragraph one of
this subdivision shall be entitled to any other right, benefit or
entitlement of a similarly situated member of such pension fund with
equal total service credit consisting only of service in the uniformed
force of the police department.
* h. (1) Any member of the pension fund who, prior to June thirtieth,
nineteen hundred ninety-two, would have been entitled to transfer
membership in another public retirement system to the pension fund
pursuant to any provision of law, but who failed to make a timely
election to do so, may elect to transfer such membership to the pension
fund by filing a written request for such transfer with the first
retirement system within one year after the effective date of this
subdivision.
(2) All transfers of membership to the pension fund pursuant to this
subdivision shall be in accordance with the procedures set forth in the
transfer provisions that would have been applicable if the member had
made a timely election to transfer. Where a transfer is made pursuant to
this subdivision, and such applicable transfer provisions would have
required a transfer of pension reserves, the first retirement system
shall transfer to the pension fund all pension reserves that would have
been transferred to the pension fund if the member had made a timely
election to transfer.
(3) Service credit transferred to the pension fund pursuant to this
subdivision shall be credited in the same manner and for the same
purposes as it would have been credited if the member had made a timely
election to transfer, and the member shall pay to the pension fund all
member contributions, plus interest, which would have been paid or
credited if such service credit had been transferred to the pension fund
on the date of such member's entry into the pension fund.
* NB There are 2 sb h's
* h. Notwithstanding the provisions of subdivision c of this section,
any member who is absent without pay for child care leave of absence
pursuant to regulations of the New York city police department shall be
eligible for credit for such period of child care leave provided such
member files a claim for such service credit with the pension fund by
December thirty-first, two thousand one or within ninety days following
termination of the child care leave, whichever is later, and contributes
to the pension fund an amount which such member would have contributed
during the period of such child care leave, together with interest
thereon. Service credit provided pursuant to this subdivision shall not
exceed one year of credit for each period of authorized child care
leave. In the event there is a conflict between the provisions of this
subdivision and the provisions of any other law or code to the contrary,
the provisions of this subdivision shall govern.
* NB There are 2 sb h's
Section 13-219
§ 13-219 Re-entry into membership after withdrawal of contributions.
If a member has received benefits under section 13-240 of this
subchapter, his or her member-service credit at the time of leaving
service shall be restored in full provided such member returns to
service within five years after leaving service and redeposits the total
amount so withdrawn. Subsequent contributions shall be at the rate
applicable to his age on re-entry to service.
Section 13-220
§ 13-220 Pension fund; a corporation. The pension fund shall have the
powers and privileges of a corporation and by its name all of its
business shall be transacted, all of its funds invested, all warrants
for money drawn and payments made, and all of its cash and securities
and other property held.
Section 13-221
§ 13-221 Pension fund; adoption of tables and certification of rates.
The actuary appointed by the board of estimate shall be the technical
adviser of the board on all matters regarding the operation of the funds
provided for by this subchapter and shall perform such other duties as
are required of him or her. He or she shall keep in convenient form such
data as shall be necessary for the actuarial valuation of such funds.
Every five years, he or she shall make an actuarial investigation into
the mortality, service and compensation experience of the members and
beneficiaries as defined by this subchapter and he or she shall make a
valuation, as of June thirtieth of each year, of the assets and
liabilities of the various funds provided for by this subchapter at such
times as he or she shall determine. Upon the basis of such investigation
such board shall:
1. Adopt for the pension fund such mortality, service and other tables
as shall be deemed necessary; and
2. Certify the rates of deduction from compensation computed to be
necessary to pay the annuities authorized under the provisions of this
subchapter.
Section 13-222
§ 13-222 Pension fund; reports. Such board shall publish annually in
the City Record a report for the preceding year showing a valuation of
the assets and liabilities of the funds provided for by this subchapter
as certified by the actuary, and a statement as to the accumulated cash
and securities of the funds as certified by the comptroller, and shall
set forth in such report such other facts, recommendations and data as
may be of value in the advancement of knowledge concerning employees'
pensions and annuities.
Section 13-223
§ 13-223 Medical board a. (1) There shall be a medical board of three
physicians. One of such physicians shall be appointed by the board and
shall hold office at the pleasure of such board, one shall be appointed
by the commissioner of health and shall hold office at the pleasure of
such commissioner, and the third shall be appointed by the commissioner
of citywide administrative services and shall hold office at the
pleasure of such commissioner.
(2) The board, the commissioner of health and the commissioner of
citywide administrative services shall each have power to appoint one or
more but not exceeding four alternate physicians, who shall hold office
at the pleasure of such appointing board or official. Whenever the board
of trustees of the retirement system shall so direct, the functions,
powers and duties of the medical board, in addition to being performed
and exercised by the three physicians appointed pursuant to paragraph
one of this subdivision, shall be performed and exercised by one or more
groups of three physicians as hereinafter prescribed. Each such group of
three physicians shall function separately as the medical board and each
such group may consist partly of a physician or physicians appointed
pursuant to such paragraph one and partly of one or more alternate
physicians or may consist entirely of alternate physicians; provided,
however, that one of the physicians or alternate physicians in each such
group shall be appointed by the board, one by the commissioner of health
and one by the commissioner of citywide administrative services.
Section 13-224
§ 13-224 The funds; component funds. The funds provided for herein are
the annuity savings fund, the annuity reserve fund, the dependent
benefit contingent reserve fund, the dependent benefit reserve fund, the
contingent reserve fund and the pension reserve fund.
Section 13-225
§ 13-225 Contributions of members and their use; annuity savings fund.
a. (1) The annuity savings fund shall be the fund in which there shall
be accumulated deductions from the compensation of members to provide
for their annuities and their withdrawal allowances. Upon the basis of
the tables herein authorized, and regular interest, the actuary of such
board shall determine for each member the proportion of compensation
which, when deducted from each payment of his or her prospective
earnable compensation prior to his or her eligibility for retirement and
accumulated at regular interest until the attainment of the minimum age
or period of service retirement elected by him or her, shall be computed
to provide, at that time, an annuity equal to twenty-five seventy-fifths
of the pension then allowable to him or her for service as a member.
Such proportion of compensation shall be computed to remain constant.
Notwithstanding the foregoing, the rate of contribution required to be
made on and after October first, nineteen hundred fifty-one, by any
member whose rate was computed pursuant to this subdivision, as enacted
by local law two of nineteen hundred forty, shall be twenty-five
forty-fifths of such prior rate.
(2) Notwithstanding the foregoing provisions of paragraph (one) of
this subdivision a, the rate of contribution required to be made on and
after the first day of the first payroll period beginning after January
first, nineteen hundred sixty-eight by any member who became a member
after June thirtieth, nineteen hundred forty-seven and prior to June
thirtieth, nineteen hundred sixty-seven shall be his or her rate as of
June twenty-ninth, nineteen hundred sixty-seven, as computed pursuant to
paragraph (one) of this subdivision a, including any increase thereof
pursuant to subdivisions c and d of this section or any decrease thereof
pursuant to section 13-226 of this subchapter or subdivision one of
section one hundred thirty-eight-b of the retirement and social security
law, hereinafter referred to as his or her "computed prior rate", less
the difference between the rate which was computed for such member on
the date he or she last became a member pursuant to paragraph (one) of
the subdivision a, exclusive of any increase thereof pursuant to
subdivisions c and d of this section or any decrease thereof pursuant to
paragraph (one) of this subdivision or section 13-226 of this subchapter
or pursuant to subdivision one of section one hundred thirty-eight-b of
the retirement and social security law, and the rate which would have
been computed for such member on the date he or she last became a
member, pursuant to paragraph (one) of this subdivision, had he or she
been entitled on that date to regular interest at four per cent;
provided that the adjusted rate of contribution computed pursuant to
this paragraph shall be subject to change pursuant to subdivisions c and
d of this section, section 13-226 of this subchapter or pursuant to
subdivision one of section one hundred thirty-eight-b of the retirement
and social security law.
(3) for any member to whom the last paragraph applies, and beginning
with the first day of the first payroll period commencing after June
thirtieth, nineteen hundred sixty-seven and ending with the last day of
the last payroll period before the first payroll period beginning after
January first, nineteen hundred sixty-eight, the amount of contribution
paid by him or her which represents the difference between the "computed
prior rate" of such member and his or her adjusted rate of contribution
as computed pursuant to paragraph (two) of this subdivision a shall be
refunded upon the member's election, or, otherwise, shall be deemed
additional contributions for the purpose of purchasing additional
annuity, but such additional contributions shall not enter into the
computation for allowance on ordinary disability retirement as described
in section 13-251 of this subchapter.
b. Such board shall certify to the commissioner who shall deduct from
the compensation of each member on each and every pay roll of such
member for each and every pay roll period, the proportion of his or her
earnable compensation so computed. Such board shall not certify nor
shall the commissioner make any deduction for annuity purposes from the
compensation of a member who elects not to contribute if his or her age
and total service are such as would entitle a new entrant to retire for
service on a pension not less than seventy-five per cent of one-half of
his or her final compensation. In determining the amount earnable by a
member in a payroll period, such board may consider the rate of
compensation payable to such member on the first day of the payroll
period as continuing throughout such payroll period and such board may
omit deductions from compensation for any period less than a full
payroll period if an employee was not a member on the first day of the
payroll period. To facilitate the making of deductions, such board may
modify the deduction required of any member by such an amount as shall
not exceed one-tenth of one per cent of the compensation upon the basis
of which such deduction is to be made. The deductions provided herein
shall be made notwithstanding that the minimum compensation provided by
law for any member shall be reduced thereby. Every member shall be
deemed to consent and agree to the deductions made and provided for
herein and shall receipt in full for his or her salary or compensation,
and payment less such deductions shall be a full and complete discharge
and acquittance of all claims and demands whatsoever for the services
rendered by such person during the period covered by such payment,
except his or her claim to the benefits to which he or she may be
entitled under the provisions of this subchapter. The commissioner shall
certify to the comptroller on each and every payroll the amounts to be
deducted. Each of such amounts shall be deducted and when deducted shall
be paid into the annuity savings fund, and shall be credited, together
with regular interest, to an individual account of the member from whose
compensation such deduction was made. The method of computation and
deductions prescribed by this subdivision and subdivision a of this
section shall be appropriately modified in the case of a member for whom
a rate is otherwise fixed pursuant to section 13-226 of this subchapter.
c. In addition to the computed deductions, any member may elect to
contribute at a rate fifty per centum in excess of that heretofore
provided, for the purpose of purchasing additional annuity. In computing
the amount of such additional rate any modification of the normal rate
pursuant to section 13-226 of this subchapter shall be disregarded.
These additional contributions shall be credited to the annuity savings
fund with regular interest. Such additional contributions shall not
enter into the computation for allowance on ordinary disability
retirement as described in section 13-251 of this subchapter. A member
may elect to discontinue his or her additional contributions at any
time.
d. In addition to the deductions from compensation hereinbefore
provided, any member may redeposit in the annuity savings fund by a
single payment an amount equal to the total amount which he or she
withdrew previously therefrom as provided in this subchapter, or any
member may deposit therein by a single payment, or in equal installments
over a period to be designated by such member, but not exceeding five
years, immediately prior to his or her retirement, an amount computed to
be sufficient to purchase an additional annuity, which, together with
his or her prospective retirement allowance, will provide for him or her
a total retirement allowance of one-half of his or her final
compensation at the minimum age or period of retirement elected by him
or her. Such additional amounts so deposited shall become a part of his
or her accumulated deductions. The accumulated deductions of a member
withdrawn as provided in this subchapter shall be paid out of the
annuity savings fund. Upon retirement of a member, his or her
accumulated deductions shall be transferred from such fund to the
annuity reserve fund.
e. In the case of a member receiving extra pay, salary or compensation
for additional duties assigned to him or her, the comptroller shall make
such semi-monthly deductions on the basis of such extra pay, salary or
compensation unless such member shall signify in writing to the board,
within thirty days after the first receipt thereof, his or her election
to have his or her benefits and obligations computed on the basis of the
pay, salary or compensation received by him or her prior to the time
when he or she first received such extra compensation. If any member
receives extra pay, salary or compensation for an aggregate or five
years or more or for the period of time fixed by section 14-114 of this
code, the comptroller shall continue to make such semi-monthly
deductions on the basis of such extra pay, salary or compensation,
notwithstanding that such member does not continue to receive it, unless
such member shall signify to the board in writing his or her election to
have his or her benefits and obligations computed on the basis of the
pay, salary or compensation actually received by him. Additional
deductions so made shall entitle such member to a retirement allowance
on the basis of such extra pay, salary or compensation. The provisions
of this subdivision shall not diminish or impair the benefits provided
in subdivision c of section 14-114 of this code.
Section 13-225.1
** § 13-225.1 Employer pick up of member contributions. a.
Notwithstanding any other provision of law to the contrary, on and after
the starting date for pick up, the city shall pick up and pay into the
annuity savings fund, the member contributions eligible for pick up by
the employer which each member would otherwise be required to make on
and after such starting date.
b. An amount equal to the amount of such picked up contributions shall
be deducted by the city from the compensation of such member (as such
compensation would be in the absence of a pick up program applicable to
him or her hereunder) and shall not be paid to such member. Such
deduction shall be effected by means of subtraction from such member's
current compensation (as so defined), or offset against future pay
increases, or a combination of such methods.
c. (1) * The member contributions picked up pursuant to this section
for any member shall be paid by the city in lieu of an equal amount of
the member contributions otherwise required to be paid by such member
under the provisions of this subchapter and shall be deemed to be and
treated as employer contributions pursuant to subsection h of section
four hundred fourteen of the United States internal revenue code, as
amended, for the purposes, under federal law, for which such subsection
h so classifies such picked up contributions. Subject to the provisions
of subdivision b of this section, for all other purposes, including, but
not limited to:
* NB Effective until notice of ruling by Internal Revenue Service per
ch. 627/2007 §22
* The member contributions picked up pursuant to this section for any
member shall be paid by the city in lieu of an equal amount of the
member contributions otherwise required to be paid by such member under
the provisions of this subchapter, including any member contributions
required to be made for the purchase of credit for previous service or
credit for military service pursuant to subdivision f of this section,
provided, however, that contributions picked up for the purchase of
credit for military service shall be deposited in the employer
contributions account in accordance with the provisions of subdivision
four of section one thousand of the retirement and social security law
and shall be deemed to be and treated as employer contributions pursuant
to subsection h of section four hundred fourteen of the United States
internal revenue code, as amended, for the purposes, under federal law,
for which such subsection h so classifies such picked up contributions.
Subject to the provisions of subdivision b of this section, for all
other purposes, including, but not limited to:
* NB Takes effect upon notice of ruling by Internal Revenue Service
per ch. 627/2007 §22
(i) the obligation of such member to pay New York state and New York
city income and/or wages or earnings taxes and the withholding of such
taxes; and
(ii) the determination of the amount of such member's member
contributions eligible for pick up by the employer; and
(iii) the determination of the amount of any retirement allowance or
other pension fund benefit payable to or on account of such member or
any other pension fund right, benefit or privilege of such member;
the amount of the member contributions picked up pursuant to this
section shall be deemed to be a part of the employee compensation of
such member, and such member's gross compensation (as it would be in the
absence of a pick up program applicable to him or her hereunder) shall
not be deemed to be changed by such member's particiaption in such
program.
(2) Nothing contained in paragraph one of this subdivision c shall be
construed as superseding the provisions of section four hundred
thirty-one of the retirement and social security law or any similar
provision of law which limits the salary base for computing retirement
benefits payable by a public retirement system.
d. (1) For the purpose of determining the pension fund rights,
benefits and privileges (including the procurement of loans) of any
member whose member contributions eligible for pick up by the employer
are picked up pursuant to this section, such picked up member
contributions shall be deemed to be and treated as member contributions
made by such member pursuant to law and as included in such member's
accumulated deductions. Interest on such picked up contributions shall
accrue in favor of the member and be payable by the city at the same
rate, for the same time periods, in the same manner and under the same
circumstances as interest would be required to accrue in favor of the
member and be payable by the city on such picked up contributions if
they were made by the member in the absence of an employer pick up
program applicable to such member under the provisions of this section.
(2) The picked up member contributions of any member paid into the
annuity savings fund by the city pursuant to this section shall be
credited to a separate account within the individual account of such
member in such fund, so that a separate record of the amount of such
picked up contributions is maintained.
(3) Nothing contained in this subdivision d shall be construed as
granting member contributions picked up under this section any status,
under federal law, other than as employer contributions, pursuant to
subsection h of section four hundred fourteen of the United States
internal revenue code, for the federal purposes for which such
subsection h so classifies such picked up contributions.
e. No member whose member contributions are required to be picked up
pursuant to this section shall have any right to elect that such pick up
of contributions, with accompanying deduction from the compensation of
such member as prescribed by subdivision b of this section, shall not be
effectuated.
* f. Employer pick-up of contributions in respect of previous service
or military service. Notwithstanding any other provision of law, any
member eligible to purchase credit for previous service with a public
employer pursuant to this chapter or to purchase credit for military
service pursuant to article twenty of the retirement and social security
law, may elect to purchase any or all of such service by executing a
periodic payroll deduction agreement where and to the extent such
elections are permitted by the retirement system by rule or regulation.
Such agreement shall set forth the amount of previous service or
military service being purchased, the estimated total cost of such
service credit, and the number of payroll periods in which such periodic
payments shall be made. Such agreement shall be irrevocable, shall not
be subject to amendment or modification in any manner, and shall expire
only upon completion of payroll deductions required therein.
Notwithstanding the foregoing, any member who has entered into such a
payroll deduction agreement and who terminates employment prior to the
completion of the payments required therein shall be credited with any
service as to which such member shall have paid the contributions
required under the terms of such agreement.
* NB Takes effect upon notice of ruling by Internal Revenue Service
per ch. 627/2007 §22
** NB Expires per ch. 114/89 § 16
Section 13-226
§ 13-226 Pensions-for-increased-take-home-pay. a. 1. The mayor, by
executive order, adopted prior to the first day of June, nineteen
hundred sixty-three, may direct that beginning with the first full
payroll period following January first, nineteen hundred sixty-three,
and ending with the payroll period immediately prior to that, the first
day of which is nearest to June thirtieth, nineteen hundred sixty-four,
the contribution of each member made pursuant to subdivision b or e of
section 13-225 of this subchapter, exclusive of any increase thereof
pursuant to subdivisions c and d of section 13-225 of this subchapter,
or of any reduction thereof pursuant to subdivision one of section one
hundred thirty-eight-b of the retirement and social security law, shall
be reduced by two and one-half percent of the compensation of such
member. Such a reduction shall be subject to waiver by the member as
provided in subdivision d of this section and shall take precedence over
the member's privilege under subdivision one of section one hundred
thirty-eight-b of the retirement and social security law, to decrease
his or her annuity contribution for the purpose of paying his or her
contributions for old age, survivors, and disability insurance coverage
or the tax imposed upon him or her pursuant to the federal insurance
contribution act. Such executive order may also provide for a method or
procedure for the refunding or crediting to a member by the pension fund
of the amount of the reduction in his or her deductions for any period
prior to the adoption of such executive order.
2. The mayor, by executive order, adopted prior to the first day of
June, nineteen hundred sixty-four, may direct that beginning with the
first full payroll period following July first, nineteen hundred
sixty-four, and ending with the payroll period immediately prior to
that, the first day of which is nearest to June thirtieth, nineteen
hundred sixty-five, the contribution of each member made pursuant to
subdivision b or e of section 13-225 of this subchapter, exclusive of
any increase thereof pursuant to subdivisions c and d of section 13-225
of this subchapter, or of any reduction thereof pursuant to subdivision
one of section one hundred thirty-eight-b of the retirement and social
security law, shall be reduced by two and one-half percent of the
compensation of such member. Such a reduction shall be subject to
waiver by the member as provided in subdivision d of this section and
shall take precedence over the member's privilege under subdivision one
of section one hundred thirty-eight-b of the retirement and social
security law, to decrease his or her annuity contribution for the
purpose of paying his or her contributions for old age, survivors, and
disability insurance coverage or the tax imposed upon him or her
pursuant to the federal insurance contribution act.
3. The mayor, by executive order, adopted prior to June nineteenth,
nineteen hundred sixty-five, may direct that beginning with the first
full payroll period following July first, nineteen hundred sixty-five,
and ending with the payroll period immediately prior to that, the first
day of which is nearest to June thirtieth, nineteen hundred sixty-six,
the contribution of each member made pursuant to subdivision b or e of
section 13-225 of this subchapter, exclusive of any increase thereof
pursuant to subdivisions c and d of section 13-225 of this subchapter,
or of any reduction thereof pursuant to subdivision one of section one
hundred thirty-eight-b of the retirement and social security law, shall
be reduced by two and one-half percent of the compensation of such
member. Such a reduction shall be subject to waiver by the member as
provided in subdivision d of this section and shall take precedence over
the member's privilege under subdivision one of section one hundred
thirty-eight-b of the retirement and social security law, to decrease
his or her annuity contribution for the purpose of paying his or her
contributions for old age, survivors and disability insurance coverage
or the tax imposed upon him or her pursuant to the federal insurance
contribution act.
4. The mayor, by executive order adopted prior to June nineteenth,
nineteen hundred sixty-six, may direct that beginning with the first
full payroll period following July first, nineteen hundred sixty-six,
and ending with the payroll period immediately prior to that, the first
day of which is nearest to June thirtieth, nineteen hundred sixty-seven,
the contribution of each member made pursuant to subdivision b or e of
section 13-225 of this subchapter, exclusive of any increase thereof
pursuant to subdivisions c and d of section 13-225, or of any reduction
thereof pursuant to subdivision one of section one hundred
thirty-eight-b of the retirement and social security law, shall be
reduced by two and one-half percent of the compensation of such member.
Such a reduction shall be subject to waiver by the member as provided in
subdivision d of this section and shall take precedence over the
member's privilege under subdivision one of section one hundred
thirty-eight-b of the retirement and social security law, to decrease
his or her annuity contribution for the purpose of paying his or her
contributions for old age, survivors and disability insurance coverage
or the tax imposed upon him or her pursuant to the federal insurance
contribution act.
5. The mayor, by executive order adopted prior to June seventeenth,
nineteen hundred sixty-seven, may direct that beginning with the payroll
period, the first day of which is nearest to July first, nineteen
hundred sixty-seven, and ending with the payroll period immediately
prior to that, the first day of which is nearest to June thirtieth,
nineteen hundred sixty-eight, the contribution of each member made
pursuant to subdivision b or e of section 13-225 of this subchapter,
exclusive of any increase thereof pursuant to subdivisions c and d of
section 13-225 of this subchapter, or of any reduction thereof pursuant
to subdivision one of section one hundred thirty-eight-b of the
retirement and social security law, shall be reduced by two and one-half
per cent of the compensation of such member. Such a reduction shall be
subject to waiver by the member as provided in subdivision d of this
section and shall take precedence over the member's privilege under
subdivision one of section one hundred thirty-eight-b of the retirement
and social security law, to decrease his or her annuity contribution for
the purpose of paying his or her contributions for old age, survivors
and disability insurance coverage or the tax imposed upon him or her
pursuant to the federal insurance contribution act.
6. a. (1) Subject to the provisions of item two of this subparagraph
a, beginning with the first full payroll period following January first,
nineteen hundred sixty-seven, and ending with the payroll period
immediately prior to that, the first day of which is nearest June
thirtieth, nineteen hundred sixty-eight, the contribution of each member
made pursuant to subdivision b or e of section 13-225 of this
subchapter, exclusive of any increase thereof pursuant to subdivisions c
and d of section 13-225 of this subchapter, or of any reduction thereof
pursuant to subdivision one of section one hundred thirty-eight-b of the
retirement and social security law, shall be reduced by two and one-half
per cent of the compensation of such member.
(2) The reduction provided for by item one of this subparagraph a
shall be in addition to any reduction made during the period mentioned
in such item one pursuant to paragraphs four or five of this
subdivision. The amount of the reduction made pursuant to item one of
this subparagraph in the deductions of any such member for such portion
of the period mentioned in such item one as precedes the effective date
of this paragraph shall be refunded without interest.
(3) Beginning with the payroll period the first day of which is
nearest to June thirtieth, nineteen hundred sixty-eight, and ending with
the payroll period immediately prior to that, the first day of which is
nearest to June thirtieth, nineteen hundred seventy-one, the
contribution of each member made pursuant to subdivision b or e of
section 13-225 of this subchapter, exclusive of any increase thereof
pursuant to subdivision c or d of section 13-225 of this subchapter, or
of any reduction thereof pursuant to subdivision one of section one
hundred thirty-eight-b of the retirement and social security law, shall
be reduced by five percent of the compensation of such member.
b. The reductions referred to in paragraph a of this subdivision six
shall be subject to waiver by the member as provided in subdivision d of
this section and shall take precedence over the member's privilege under
subdivision one of section one hundred thirty-eight-b of the retirement
and social security law, to decrease his or her annuity contribution for
the purpose of paying his or her contribution for old age, survivor and
disability insurance coverage or the tax imposed upon him or her
pursuant to the federal insurance contribution act.
7. The mayor, by executive order adopted prior to the date forty-five
days after the adjournment of the regular session of the legislature in
nineteen hundred seventy-one, may direct that beginning with the payroll
period, the first day of which is nearest to June thirtieth, nineteen
hundred seventy-one, and ending with the payroll period immediately
prior to that, the first day of which is nearest to June thirtieth,
nineteen hundred seventy-two, the contribution of each member made
pursuant to subdivision b or e of section 13-225 of this subchapter,
exclusive of any increase thereof pursuant to subdivision c or d of
section 13-225 of this subchapter, or of any reduction thereof pursuant
to subdivision one of section one hundred thirty-eight-b of the
retirement and social security law, shall be reduced by five per cent of
the compensation of such member. Such a reduction shall be subject to
waiver by the member as provided in subdivision d of this section and
shall take precedence over the member's privilege under subdivision one
of section one hundred thirty-eight-b of the retirement and social
security law, to decrease his or her annuity contribution for the
purpose of paying his or her contributions for old age, survivors and
disability insurance coverage or the tax imposed upon him or her
pursuant to the federal insurance contribution act.
8. The mayor, by executive order adopted prior to the date forty-five
days after the adjournment of the regular session of the legislature in
nineteen hundred seventy-two or June seventeenth of such year, whichever
is later, may direct that beginning with the payroll period, the first
day of which is nearest to June thirtieth, nineteen hundred seventy-two,
and ending with the payroll period immediately prior to that, the first
day of which is nearest to June thirtieth, nineteen hundred
seventy-three, the contribution of each member made pursuant to
subdivision b or e of section 13-225 of this subchapter, exclusive of
any increase thereof pursuant to subdivision c or d of section 13-225 of
this subchapter, or of any reduction thereof pursuant to subdivision one
of section one hundred thirty-eight-b of the retirement and social
security law, shall be reduced by five per cent of the compensation of
such member. Such a reduction shall be subject to waiver by the member
as provided in subdivision d of this section and shall take precedence
over the member's privilege under subdivision one of section one hundred
thirty-eight-b of the retirement and social security law, to decrease
his or her annuity contribution for the purpose of paying his or her
contributions for old age, survivors and disability insurance coverage
or the tax imposed upon him or her pursuant to the federal insurance
contribution act.
b. For such period of time as the reduction pursuant to the provisions
of subdivision a of this section shall be in effect, contributions shall
be made to the contingent reserve fund by the city at a rate fixed by
the actuary, which shall be computed to be sufficient to provide the
death benefit hereunder, and the
pension-providing-for-increased-take-home-pay which are or may become
payable on account of such member.
c. Such a benefit and such a
pension-providing-for-increased-take-home-pay shall be based on a
reserve-for-increased-take-home-pay, which shall be a sum consisting of
the total of all products obtained by multiplying the compensation of
the member, during each period of reduction of member contributions
under this section, by the percentage of reduction of his or her
contributions applicable under this section with respect to such period,
plus regular interest on such sum, and additional interest, if any,
thereon.
d. Where a member's rate of contribution is reduced because the city
contributes towards the pension-providing-for-increased-take-home-pay
pursuant to this section, such member may by written notice duly
acknowledged and filed with the pension fund within one year after such
reduction or within one year after he or she last became a member,
whichever is later, elect to waive such reduction. One year or more
after the filing thereof, a member may withdraw any such waiver by
written notice duly acknowledged and filed with the retirement system.
Where a member makes an election to waive such reduction he or she shall
contribute to the pension fund as otherwise provided in this subchapter.
e. A member who waives a reduction of contribution pursuant to this
section or who elects or has elected to discontinue his or her
contributions pursuant to subdivision b of section 13-225 of this
subchapter shall be entitled to a
pension-providing-for-increased-take-home-pay and death benefits to the
same extent as if such waiver or election had not been made.
f. The benefits provided pursuant to paragraph one of subdivision a of
this section apply only to members of the pension fund who are in active
service in the police force on or after the date of adoption of the
executive order by the mayor pursuant to such paragraph one.
Section 13-227
§ 13-227 Contributions of members and their use; annuity reserve fund
and dependent benefit reserve funds. a. The annuity reserve fund shall
be the fund from which shall be paid all annuities and all benefits in
lieu of annuities, payable as provided in this subchapter.
b. The dependent benefit reserve fund shall be the fund from which
shall be paid all dependent benefits payable as provided in section
13-253 of this subchapter.
c. The dependent benefit contingent reserve fund shall be the fund in
which shall be accumulated the contributions of members to create the
reserve necessary to pay all benefits provided in section 13-253 of this
subchapter.
d. Upon the basis of the mortality and other tables herein authorized,
and regular interest, the actuary shall compute the amount of
contribution, expressed as a proportion of the compensation paid to each
such member, which, if paid, semi-monthly during the entire prospective
city-service of the member, would be sufficient to provide for the
reserve required at the time of his or her death to cover the dependent
benefits which might be payable pursuant to the provisions of section
13-253 of this subchapter. Such proportion of compensation shall be
computed to remain constant during his or her prospective city-service.
Upon the death of such a member, an amount equal to the reserve for such
dependent benefits shall be transferred from such fund to the dependent
benefit reserve fund.
Section 13-228
§ 13-228 Contributions of the city and their use; contingent reserve
fund. a. The contingent reserve fund shall be the fund in which shall be
accumulated the reserve necessary to pay all pensions and the
reserve-for-increased-take-home-pay, and all death benefits allowable by
the city on account of the city-service of members as provided in this
subchapter.
b. (1) (a) Subject to the provisions of paragraph five of this
subdivision, the city shall contribute to the contingent reserve fund;
(i) annually an amount to be known as the normal contribution; and
(i-a) all unfunded accrued liability installments as required by
section 13-638.2 of this title or any other provision of law; and
(i-b) any other payments to the contingent reserve fund as required by
applicable law; and
(ii) in equal annual installments during the period beginning with
fiscal year nineteen hundred seventy-seven--nineteen hundred
seventy--eight and ending on the last day of fiscal year nineteen
hundred seventy-nine--nineteen hundred eighty, an additional amount
which shall be known as the original unfunded accrued liability
contribution, and which shall be determined as provided for in
subparagraph a of paragraph (3) of this subdivision b; and
(iii) in each city fiscal year during the period beginning with fiscal
year nineteen hundred eighty--nineteen hundred eighty-one and ending on
the last day of fiscal year two thousand fourteen--two thousand fifteen,
the annual installment, applicable to such fiscal year, of an additional
amount which shall be known as the revised unfunded accrued liability
contribution and which shall be determined as provided for in
subparagraph (b) of paragraph (3) of this subdivision; and
(iv) in each city fiscal year during the period beginning with fiscal
year nineteen hundred eighty-one--nineteen hundred eighty-two and ending
on the last day of fiscal year two thousand twenty--two thousand
twenty-one, the annual installment, applicable to such fiscal year, of
an additional amount which shall be known as the balance sheet liability
contribution and which shall be determined as provided for in paragraph
(4) of this subdivision; and
(v) in fiscal year nineteen hundred eighty--nineteen hundred
eighty-one, the amount of one year's interest, at the rate of seven and
one-half per centum per annum, on the amount of the balance sheet
liability as of June thirtieth, nineteen hundred eighty, as determined
pursuant to the provisions of paragraph four of this subdivision; and
(vi) in each city fiscal year, beginning with fiscal year nineteen
hundred eighty--nineteen hundred eighty-one and ending on the last day
of fiscal year nineteen hundred ninety-four--nineteen hundred
ninety-five, the amount required to fulfill the public employer
obligation, if any, which accrued in such fiscal year, to make
contributions on account of increased-take-home-pay; and
(vii) in each city fiscal year, beginning with fiscal year nineteen
hundred eighty--nineteen hundred eighty-one and ending on the last day
of fiscal year nineteen hundred ninety-four--nineteen hundred
ninety-five, the amount required to fulfill the public employer
obligation, which accrued in such fiscal year under the provisions of
subdivision twenty of section two hundred forty-three of the military
law, to pay in behalf of members qualifying for such benefit, member
contributions with respect to certain periods of the military service of
such members.
(b) (i) If the nineteen hundred eighty unfunded accrued liability
adjustment determined pursuant to subparagraph (c) of paragraph (3) of
this subdivision b is a credit, the total of the amounts required to be
contributed by the city to the contingent reserve fund in each city
fiscal year, commencing with the nineteen hundred eighty--nineteen
hundred eighty-one fiscal year and ending with the two thousand
nine--two thousand ten fiscal year, pursuant to items (i), (iii), (iv),
(v), (vi) and (vii) of subparagraph (a) of this paragraph one shall be
reduced by the amount of one annual installment of such unfunded accrued
liability adjustment.
(ii) If the nineteen hundred eighty unfunded accrued liability
adjustment determined pursuant to such subparagraph (c) is a charge, the
city shall contribute in each city fiscal year, commencing with the
nineteen hundred eighty--nineteen hundred eighty-one fiscal year and
ending with the two thousand nine--two thousand ten fiscal year, in
addition to the amounts required to be contributed under the provisions
of subparagraph (a) of this paragraph, one annual installment of such
unfunded accrued liability adjustment.
(iii) The total of the amounts required to be contributed to the
contingent reserve fund in each city fiscal year commencing with the
nineteen hundred eighty-two--nineteen hundred eighty-three fiscal year
and ending with the two thousand eleven--two thousand twelve fiscal year
pursuant to items (i), (iii), (iv), (v), (vi) and (vii) of subparagraph
(a) of this paragraph one and the applicable provisions of items (i) and
(ii) of this subparagraph (b) and otherwise pursuant to law shall be
reduced by the amount of one annual installment of the nineteen hundred
eighty-two unfunded accrued liability adjustment determined pursuant to
subparagraph (d) of paragraph three of this subdivision b.
* (iv) The total of the amounts required to be contributed to the
contingent reserve fund in each city fiscal year commencing with the
nineteen hundred eighty-five--nineteen hundred eighty-six fiscal year
and ending with the two thousand fourteen--two thousand fifteen fiscal
year pursuant to items (i), (iii), (iv), (v), (vi) and (vii) of
subparagraph (a) of this paragraph one and the applicable provisions of
items (i) and (ii) of this subparagraph (b) and otherwise pursuant to
law shall be increased by the amount of one annual installment of the
nineteen hundred eighty-five unfunded accrued liability adjustment
determined pursuant to subparagraph (e) of paragraph three of this
subdivision b.
* NB There are two item (iv)'s
* (iv) For the purpose of effectuating the nineteen hundred
eighty-eight unfunded accrued liability adjustment provided for in
section 13-638.1 of the code, contributions to the contingent reserve
fund shall be made by the responsible obligor (as defined in paragraph
six of subdivision a of such section) or credits shall be allowed to
such obligor against contributions otherwise payable by such obligor, as
the case may be, to the extent and in the manner provided for in such
section. The annual determination of the normal contribution for fiscal
years occurring during the period beginning on July first, nineteen
hundred eighty-eight and ending on June thirtieth, nineteen hundred
ninety-eight shall appropriately take account of the nineteen hundred
eighty-eight unfunded accrued liability adjustment and the provisions of
subparagraph (b) of paragraph two of this subdivision b shall be deemed
to be conformably modified for such purpose.
* NB There are two item (iv)'s
(c) (i) Any amount required by the provisions of items (iii), (iv),
(v), (vi) and (vii) of subparagraph (a) of this paragraph and items (ii)
and (iv) of subparagraph (b) of this paragraph and section 13-704 of
this title to be contributed to the contingent reserve fund in the
city's nineteen hundred eighty--nineteen hundred eighty-one fiscal year
or any subsequent fiscal year shall be payable with interest on such
amount at a rate per centum per annum equal to the rate per centum per
annum required to be used for the purpose of any actuarial valuation,
determination or appraisal made to determine the amount of the normal
contribution payable to the contingent reserve fund in such fiscal year.
(ii) Any amount required to be contributed to the contingent reserve
fund in any fiscal year of the city preceding the nineteen hundred
eighty--nineteen hundred eighty-one fiscal year shall be deemed to have
been required to be paid with interest on such amount at a rate per
centum per annum equal to the rate per centum per annum required to be
used for the purpose of any actuarial valuation, determination or
appraisal made to determine the amount of the normal contribution
payable to the contingent reserve fund in such fiscal year.
(iii) It is hereby declared that the provisions of items (i) and (ii)
of this subparagraph (c), insofar as they relate to provisions of this
subchapter or other laws requiring payment of employer contributions to
the pension fund prior to the date of enactment of the act which added
this subparagraph (c), express the intent of such provisions of this
subchapter or other laws requiring such payment.
(iv) The city shall make all payments to the pension fund required by
applicable law in accordance with the time of payment requirements set
forth in subdivision c of section 13-231 of this chapter. Commencing
with payments due in fiscal year two thousand twelve--two thousand
thirteen, in any fiscal year in which the city does not make all or any
portion of such required payments to the pension fund in a timely
manner, the city shall be required to pay interest to the pension fund
on such overdue amounts, as determined by the actuary. The actuary shall
determine, at such time as he or she deems appropriate, interest
payments on such overdue amounts using a rate of interest equivalent to
the valuation rate of interest (as defined in paragraph eleven of
subdivision a of section 13-638.2 of this title). The city shall make
such interest payments on overdue amounts to the pension fund in the
manner and at such time as the actuary deems appropriate.
(2) Normal contribution.--(a) (i) Notwithstanding the succeeding
provisions of this subparagraph or the provisions of subparagraph
(a-one), (b), (c) or (d) of this paragraph, for fiscal year two thousand
eleven--two thousand twelve, and for each fiscal year thereafter, the
amount of the normal contribution payable to the contingent reserve fund
shall be determined pursuant to the provisions of subparagraph (e) of
this paragraph. Upon the basis of the latest mortality and other tables
herein authorized and regular interest, the actuary shall determine, as
of June thirtieth, nineteen hundred eighty and as of each succeeding
June thirtieth, the amount of the total liability for all benefits
provided in this subchapter, in article eleven of the retirement and
social security law, article fourteen of such law (if and when
applicable) and in any other law prescribing benefits payable by the
pension fund on account of all members and beneficiaries, excluding the
liability on account of future increased-take-home-pay contributions, if
any, and the liability for benefits attributable to the annuity savings
fund, provided, however, that in determining such total liability for
all benefits as of June thirtieth, nineteen hundred ninety-five and as
of each succeeding June thirtieth, the actuary shall include (A) the
liability on account of future increased-take-home-pay contributions, if
any, (B) the liability on account of future public employer obligations
under the provisions of subdivision twenty of section two hundred
forty-three of the military law, to pay in behalf of members qualifying
for such benefit, member contributions with respect to certain periods
of the military service of such members and (C) the liability for
benefits attributable to the annuity savings fund.
(ii) For the purposes of subparagraphs (b) and (c) of this paragraph
two, the actuary shall determine, as of June thirtieth, nineteen hundred
ninety-five and as of each succeeding June thirtieth, the total
liability of the pension fund which shall be an amount equal to the sum
of (A) the total liability for all benefits as determined pursuant to
item (i) of this subparagraph and (B) the amount, as estimated by the
actuary, of the total liability of the pension fund on account of all
payments which the pension fund may be required to make for base fiscal
years (as defined by the applicable provisions of paragraph one of
subdivision b of section 13-232.1 of this subchapter and paragraph one
of subdivision b of section 13-232.3 of this subchapter) beginning on or
after July first, nineteen hundred ninety-four to the police officer's
variable supplements fund, pursuant to subdivisions d, e and f of such
section 13-232.1 and to the police superior officer's variable
supplements fund pursuant to subdivisions d, e and f of such section
13-232.3.
(a-1) Notwithstanding any other provision of law to the contrary, for
the purpose of calculating the amount of the normal contribution due
from the city to the contingent reserve fund pursuant to subparagraph
(c) of this paragraph in fiscal year two thousand five--two thousand
six, and in each fiscal year thereafter, both the total liability of the
pension fund, as calculated by the actuary in accordance with
subparagraph (a) of this paragraph, and the normal rate of contribution,
as calculated by the actuary in accordance with subparagraph (b) of this
paragraph, shall be determined as of June thirtieth of the second fiscal
year preceding the fiscal year in which the normal contribution is
payable, provided, however, that (i) the actuary shall use for such
calculations the mortality and other tables that are applicable at the
time he or she performs such calculations; (ii) the total funds on hand,
as determined by the actuary pursuant to sub-item (F) of item (i) of
subparagraph (b) of this paragraph, shall be adjusted by adding to such
amount the present value of all employer contributions required to be
paid into the contingent reserve fund in the fiscal year next preceding
the fiscal year in which the normal contribution is payable, as
determined by the actuary; and (iii) the present value of the
prospective future salaries of all members, as computed by the actuary
for the purposes of item (ii) of subparagraph (b) of this paragraph,
shall be reduced by the present value of the salaries expected to be
paid to all members in the fiscal year next preceding the fiscal year in
which the normal contribution is payable, as determined by the actuary.
(b) The normal rate of contribution shall be the rate per centum
obtained;
(i) by deducting from the amount of such total liability the sum of;
(A) (1) the amount obtained by adding together the present value of
all required future revised unfunded accrued liability contributions and
the present value of all required future payments of the nineteen
hundred eighty unfunded accrued liability adjustment, determined
pursuant to subparagraph (c) of paragraph three of this subdivision b,
if such adjustment is a charge; or
(2) the remainder obtained by subtracting from the present value of
all required future revised unfunded accrued liability contributions,
the present value of all future installments of the nineteen hundred
eighty unfunded accrued liability adjustment required to be credited, if
such nineteen hundred eighty adjustment is a credit;
(3) minus (whether (1) or (2) of this sub-item (A) is applicable) the
present value of all future installments of the nineteen hundred
eighty-two unfunded accrued liability adjustment; and
(A-1) the present value of all future installments of the nineteen
hundred eighty-five unfunded accrued liability adjustment determined
pursuant to subparagraph (e) of paragraph three of this subdivision b;
and
(B) the present value of all required future balance sheet liability
contributions, plus, in the case of the determination of the normal
contribution payable in fiscal year nineteen hundred eighty--nineteen
hundred eighty-one, the present value, as of June thirtieth, nineteen
hundred eighty, of the payment of interest on the balance sheet
liability as required by item (v) of subparagraph (a) of paragraph one
of this subdivision b; and
(C) the present value of all future member contributions on account of
dependent benefits; and
(D) the present value of all required future payments, pursuant to
section 13-704 of this title, of installments of losses in excess of
installments of gains on dispositions of securities within the meaning
of such section; and
(E) in the case of the determination of the normal contribution
payable in each fiscal year commencing with fiscal year nineteen hundred
ninety-five--nineteen hundred ninety-six, the present value of future
member contributions of all members; and
(F) the total funds on hand, including the amount of any unpaid moneys
appropriated pursuant to section 13-231 of this subchapter and, in the
case of the determination of the normal contribution payable in each
fiscal year commencing with fiscal year nineteen hundred
ninety-five--nineteen hundred ninety-six, including the amount in the
annuity savings fund; and
(G) the present value of all other future installments of accrued
liability contributions to the pension fund required by the applicable
provisions of section 13-638.3 of this title which are not covered by
the preceding sub-items of this item (i); and
(ii) by dividing the remainder by one per centum of the present value
of the prospective future salaries of all members, as computed by the
actuary on the basis of the latest mortality and service tables adopted
pursuant to section 13-221 of this subchapter, and on the basis of
regular interest. The normal rate of contribution determined by the
actuary shall not be less than zero, shall be certified by the actuary
after each such valuation and shall continue in force until the next
succeeding valuation and certification.
(c)(i) The amount of the normal contribution due from the city to the
contingent reserve fund in each city fiscal year, commencing with the
nineteen hundred eighty--nineteen hundred eighty-one fiscal year and
ending with the two thousand four--two thousand five fiscal year, shall
be the amount obtained by multiplying the normal rate of contribution,
as determined by the actuary as of June thirtieth next preceding such
fiscal year, by the aggregate annual salaries of the members on such
next preceding June thirtieth, and shall be payable in such fiscal year
next following such June thirtieth, together with such regular interest
thereon which may be due, if any, as calculated by the actuary.
(ii) The amount of the normal contribution due from the city to the
contingent reserve fund in each city fiscal year, commencing with the
two thousand five--two thousand six fiscal year, shall be the amount
obtained by multiplying the normal rate of contribution, as determined
by the actuary as of the second June thirtieth preceding the fiscal year
in which the normal contribution is payable, in accordance with the
provisions of subparagraphs (a-1) and (b) of this paragraph, by the
aggregate amount of the salaries expected to be paid to the members
during the fiscal year in which the normal contribution is payable, as
determined by the actuary, and such normal contribution shall be payable
in the second fiscal year following the June thirtieth as of which the
normal rate of contribution is determined, together with such regular
interest thereon which may be due, if any, as calculated by the actuary.
(iii) In the case of the normal contribution payable in the nineteen
hundred eighty--nineteen hundred eighty-one fiscal year and in any
subsequent fiscal year, the term "regular interest", as used in this
subparagraph (c), shall mean regular interest as defined by the
applicable provisions of subparagraph (ii) or subparagraph (iii) of
paragraph (c) or paragraph (d) of subdivision eight of section 13-214 of
this subchapter.
(d) (i) For the purposes of this subparagraph (d), the terms "pension
fund, subchapter one" and "police subchapter one beneficiary" shall have
the meanings set forth in paragraphs one and three, respectively, of
subdivision a of section 13-213.1 of this chapter.
(ii) The amount of the normal contribution due from the city to the
contingent reserve fund in the city's nineteen hundred
ninety-four--nineteen hundred ninety-five fiscal year shall be equal to
the amount of the normal contribution for such fiscal year, as
calculated in accordance with the provisions of subparagraph (c) of this
paragraph, minus the sum (calculated by the actuary to reflect regular
interest in accordance with the provisions of subparagraph (c) of this
paragraph) of the following:
(A) the amount of the assets deemed to have been transferred on July
first, nineteen hundred ninety-four from pension fund, subchapter one to
this pension fund and credited to the contingent reserve fund in
accordance with the provisions of subdivisions b and c of section
13-213.1 of this chapter, as if such transfer actually had been made on
such July first; and
(B) the amount of the benefits payable during the nineteen hundred
ninety-four--nineteen hundred ninety-five fiscal year by pension fund,
subchapter one to police subchapter one beneficiaries; and
(C) the amount of supplemental benefits payable during the nineteen
hundred ninety-four--nineteen hundred ninety-five fiscal year, including
the increase in certain of such benefits provided by paragraph four of
subdivision a of section 13-687 of this title, as added by the chapter
of the laws of nineteen hundred ninety-five which added this
subparagraph, by the city supplemental pension fund established under
section 13-650 of this title to police subchapter one beneficiaries.
(e) (i) Notwithstanding the preceding subparagraphs of this paragraph
or any other provision of law to the contrary, the normal contribution
payable to the contingent reserve fund in fiscal year two thousand
eleven--two thousand twelve, and in each fiscal year thereafter, shall
be the entry age normal contribution, as determined by the actuary
pursuant to this subparagraph in a manner consistent with the entry age
actuarial cost method. The actuary shall determine the entry age normal
contribution for each such fiscal year as of June thirtieth of the
second fiscal year preceding the fiscal year in which such normal
contribution is payable, based on the latest mortality and other tables
applicable at the time he or she performs such calculations, and the
valuation rate of interest as provided for the pension fund in paragraph
two of subdivision b of section 13-638.2 of this title.
(ii) In calculating the entry age normal contribution payable in any
such fiscal year pursuant to this subparagraph, the actuary, in his or
her discretion, may make certain adjustments in the calculation
methodology, provided that such adjustments are generally accepted as
consistent with the entry age actuarial cost method, and are designed,
in general, to fund, on a level basis over the working lifetimes of
members from their ages at entry, the actuarial present value of
benefits to which such members are expected to become entitled, as
determined by the actuary. Such generally accepted adjustments in the
calculation methodology, in the discretion of the actuary, may include,
but are not limited to, the calculation of the entry age normal
contribution (A) on an individual member basis by calculating the amount
of the entry age normal contribution attributable to each individual
member, and then adding together such individual member amounts, (B) on
an aggregate basis for all members or (C) on any combination of an
individual member basis and an aggregate basis which is consistent with
the entry age actuarial cost method, and the preceding provisions of
this item.
(iii) For each such fiscal year, the actuary, in his or her
discretion, shall determine, in accordance with the provisions of item
(ii) of this subparagraph, the methodology for calculating the entry age
normal contribution payable for that particular fiscal year.
(iv) The methodology determined by the actuary in accordance with item
(iii) of this subparagraph may provide for the actuary to calculate the
entry age normal contribution on an individual member basis by (A)
multiplying the entry age normal contribution rate for each individual
member, as determined by the actuary, by the salary expected to be paid
to that member during the fiscal year in which such normal contribution
is payable, and (B) calculating the sum of the individual entry age
normal contributions attributable to all such members. The actuary, in
his or her discretion, may make any adjustments to such methodology for
determining the entry age normal contribution on an individual basis
which he or she deems appropriate, and which are consistent with the
provisions of item (ii) of this subparagraph.
(v) In the alternative, the methodology determined by the actuary in
accordance with item (iii) of this subparagraph may provide for the
actuary to calculate the entry age normal contribution on an aggregate
basis by multiplying the entry age normal contribution rate for all
members in the aggregate, as determined by the actuary, by the aggregate
amount of the salaries expected to be paid to all members during the
fiscal year in which the normal contribution is payable. The actuary, in
his or her discretion, may make any adjustments to such methodology for
determining the entry age normal contribution on an aggregate basis
which he or she deems appropriate, and which are consistent with the
provisions of item (ii) of this subparagraph.
(vi) In the alternative, the methodology determined by the actuary in
accordance with item (iii) of this subparagraph may provide for the
calculation of the entry age normal contribution on any other basis
which the actuary deems appropriate, and which is consistent with the
entry age actuarial cost method and the provisions of item (ii) of this
subparagraph.
(vii) (A) Where the methodology determined by the actuary in
accordance with item (iii) of this subparagraph requires the
determination of an entry age normal contribution rate for each
individual member in order to calculate the entry age normal
contribution for each individual member, the actuary shall determine
such rate for each such member in accordance with the entry age
actuarial cost method, and such rate, as determined by the actuary for
each such member, shall be consistent with a method designed, in
general, to fund, on a level basis over the working lifetime of that
particular member from his or her age at entry, the actuarial present
value of benefits to which such member is expected to become entitled,
as determined by the actuary.
(B) Where the methodology determined by the actuary in accordance with
item (iii) of this subparagraph requires the determination of an entry
age normal contribution rate for all members in the aggregate in order
to calculate the entry age normal contribution for all members in the
aggregate, the actuary shall determine such rate in accordance with the
entry age actuarial cost method, and such rate, as determined by the
actuary, shall be consistent with a method designed, in general, to
fund, on a level basis over the working lifetimes of members from their
ages at entry, the actuarial present value of benefits to which such
members are expected to become entitled, as determined by the actuary.
(3) Unfunded accrued liability contributions.--(a) The original
unfunded accrued liability contribution shall be an amount which, if
paid to the contingent reserve fund in forty equal annual installments,
commencing with payment of a first installment in the city's nineteen
hundred seventy-seven--nineteen hundred seventy-eight fiscal year would
be the actuarial equivalent, on the basis of five and one-half percentum
interest and the actuarial tables in effect as of July first, nineteen
hundred seventy-seven, of the difference between the accrued liability
excluding the liability for benefits attributable to the annuity savings
fund on June thirtieth, nineteen hundred seventy-five and the total
funds on hand, excluding the amount in the annuity savings fund, but
including the amount of any unpaid moneys appropriated pursuant to
section 13-231 of this subchapter.
(b) (i) The revised unfunded accrued liability contribution shall be
an amount determined as prescribed in items (ii), (iii), (iv), (v), (vi)
and (vii) of this subparagraph (b).
(ii) To the amount of the difference constituting the unfunded accrued
liability as of June thirtieth, nineteen hundred seventy-five heretofore
determined pursuant to the provisions of this paragraph three as in
effect on July first, nineteen hundred seventy-seven, there shall be
added interest thereon at the rate of five and one-half per centum per
annum for the period from July first, nineteen hundred seventy-five to
June thirtieth, nineteen hundred eighty.
(iii) (A) There shall be computed, in the manner provided for in
sub-item (B) of this item (iii), the discounted value of each of the
installments of the unfunded accrued liability contribution which, in
the absence of the enactment of chapter nine hundred fifty-seven of the
laws of nineteen hundred eighty-one, where payable or would have been
payable in the city's nineteen hundred seventy-seven--nineteen hundred
seventy-eight, nineteen hundred seventy-eight--nineteen hundred
seventy-nine, nineteen hundred seventy-nine--nineteen hundred eighty,
nineteen hundred eighty--nineteen hundred eighty-one and nineteen
hundred eighty-one--nineteen hundred eighty-two fiscal years.
(B) Such discounted value of each such installment shall be computed
as of January first of the city's second fiscal year preceding the
fiscal year in which such installment was payable or would have been
payable and on the basis of five and one-half per centum interest per
annum on the amount of such installment.
(C) There shall be computed with respect to such discounted value of
each such installment, interest thereon from January first of such
second fiscal year preceding the fiscal year in which such installment
was or would have been payable to June thirtieth, nineteen hundred
eighty at the rate of five and one-half per centum per annum.
(D) The discounted values of all of such installments with respect to
such fiscal years, computed as provided for in sub-items (A) and (B) of
this item (iii), together with interest on each such installment as
provided for in sub-item (C) of this item, shall be added together.
(iv) From the sum computed pursuant to item (ii) of this subparagraph
(b), the sum computed pursuant to item (iii) of this subparagraph shall
be subtracted.
(v) With respect to each city fiscal year occurring during the period
beginning on July first, nineteen hundred eighty and ending on June
thirtieth, nineteen hundred eighty-two, the revised unfunded accrued
liability contribution shall be the annual installment, applicable to
such fiscal year, of an amount which, if paid to the contingent reserve
fund in thirty-five equal annual installments, commencing with payment
of a first installment in the city's nineteen hundred eighty--nineteen
hundred eighty-one fiscal year, would be the actuarial equivalent, on
the basis of seven and one-half per centum interest per annum, of the
remainder computed pursuant to item (iv) of this subparagraph.
(vi) With respect to each city fiscal year occurring during the period
beginning on July first, nineteen hundred eighty-two and ending on June
thirtieth, nineteen hundred eighty-eight, the revised unfunded accrued
liability contribution shall be the annual installment, applicable to
such fiscal year, of an amount which, if paid to the contingent reserve
fund in thirty-three equal annual installments, commencing with payment
of a first installment in the city's nineteen hundred
eighty-two--nineteen hundred eighty-three fiscal year, would be the
actuarial equivalent, on the basis of eight per centum interest per
annum, of the present value, as of June thirtieth, nineteen hundred
eighty-two on the basis of seven and one-half per centum interest per
annum, of those installments of the unfunded accrued liability
contribution computed pursuant to item (v) of this subparagraph (b),
which installments are hypothetically allocated by such item (v) to
designated city fiscal years succeeding June thirtieth, nineteen hundred
eighty-two.
(vii) With respect to each city fiscal year occurring during the
period beginning on July first, nineteen hundred eighty-eight and ending
on June thirtieth, two thousand fifteen, the revised unfunded accrued
liability contribution shall be the annual installment, applicable to
such fiscal year, of an amount which, when paid to the contingent
reserve fund in twenty-seven equal annual installments, commencing with
payment of a first installment in the city's nineteen hundred
eighty-eight--nineteen hundred eighty-nine fiscal year, shall be the
actuarial equivalent, on the basis of eight and one-quarter per centum
interest per annum, of the present value, as of June thirtieth, nineteen
hundred eighty-eight on the basis of eight per centum interest per
annum, of those installments of the unfunded accrued liability
contribution computed pursuant to item (vi) of this subparagraph (b),
which installments are hypothetically allocated by such item (vi) to
designated city fiscal years succeeding June thirtieth, nineteen hundred
eighty-eight.
(c) (i) The nineteen hundred eighty unfunded accrued liability
adjustment shall be an amount determined as prescribed in items (ii),
(iii), (iv) and (v) of this subparagraph (c).
(ii) (A) Upon the basis of the actuarial tables in effect as of June
thirtieth, nineteen hundred eighty, for valuation purposes and interest
at the rate of seven and one-half per centum per annum, there shall be
determined, as of June thirtieth, nineteen hundred eighty, the amount of
the total liability for all benefits provided in this subchapter, in
article eleven of the retirement and social security law, in article
fourteen of the retirement and social security law (if applicable) and
in any other law prescribing benefits payable by the pension fund on
account of all members and beneficiaries, excluding the liability on
account of future increased-take-home-pay contributions, if any, and the
liability for benefits attributable to the annuity savings fund.
(B) From such total liability computed pursuant to sub-item (A) of
this item (ii), there shall be subtracted the sum of:
(1) the present value, as of June thirtieth, nineteen hundred eighty,
of all future normal costs of the pension fund, computed pursuant to the
entry age normal cost method of determining such normal costs; and
(2) the present value, as of such June thirtieth, of all future
installments of the balance sheet liability contribution (as defined in
paragraph four of this subdivision b); and
(3) the present value, as of such June thirtieth, of all then required
future payments, pursuant to section 13-704 of this title, of
installments of losses in excess of installments of gains on
dispositions of securities within the meaning of such section; and
(4) the present value, as of such June thirtieth, of future member
contributions of members, if any, subject to article fourteen of the
retirement and social security law; and
(5) the total funds on hand as of such June thirtieth, excluding the
amount in the annuity savings fund, but including the amount of any
unpaid moneys appropriated pursuant to section 13-231 of this
subchapter.
(iii) (A) If the amount computed pursuant to sub-item (B) of item (ii)
of this subparagraph (c) is larger than the amount computed pursuant to
item (iv) of subparagraph (b) of this paragraph (3), the latter amount
shall be subtracted from the former amount and the remainder resulting
from such subtraction shall constitute a charge.
(B) If the amount computed pursuant to sub-item (B) of item (ii) of
this subparagraph (c) is smaller than the amount computed pursuant to
item (iv) of subparagraph (b) of this paragraph, the former amount shall
be subtracted from the latter amount and the remainder resulting from
such subtraction shall constitute a credit.
(iv) (A) If the remainder computed pursuant to item (iii) of this
subparagraph is a charge, the nineteen hundred eighty unfunded accrued
liability adjustment shall be an amount which, if paid to the contingent
reserve fund in thirty equal annual installments, commencing with
payment of a first installment in the city's nineteen hundred
eighty--nineteen hundred eighty-one fiscal year, would be the actuarial
equivalent, on the basis of seven and one-half per centum interest per
annum, of such remainder.
(B) If the remainder computed pursuant to item (iii) of this
subparagraph is a credit, the nineteen hundred eighty unfunded accrued
liability adjustment shall be an amount which, if credited in thirty
equal annual installments (the first of which installments is to be
credited in the city's nineteen hundred eighty--nineteen hundred
eighty-one fiscal year) in reduction of the amount which the city would
otherwise be required to pay to the contingent reserve fund pursuant to
items (i), (iii), (iv), (v), (vi) and (vii) of subparagraph (a) of
paragraph (1) of this subdivision b or otherwise pursuant to law, would
be the actuarial equivalent, on the basis of seven and one-half per
centum interest per annum, of such remainder.
(v) (A) With respect to determination of the amount of contributions
payable to the contingent reserve fund in each of the city's nineteen
hundred eighty--nineteen hundred eighty-one and nineteen hundred
eighty-one--nineteen hundred eighty-two fiscal years, the annual
installment of the nineteen hundred eighty unfunded accrued liability
adjustment computed pursuant to item (iv) of this subparagraph (c),
which installment is applicable to such fiscal year, shall be applied as
a charge or a credit, as the case may be, in relation to such
contributions payable in such fiscal year.
(B) With respect to determination of the amount of contributions
payable to the contingent reserve fund in each city fiscal year
occurring during the period beginning on July first, nineteen hundred
eighty-two and ending on June thirtieth, nineteen hundred eighty-eight,
the nineteen hundred eighty unfunded accrued liability adjustment shall
be an amount which, if paid (if a charge) or credited (if a credit) in
twenty-eight equal annual installments, commencing with a payment or
credit, as the case may be, in the city's nineteen hundred
eighty-two--nineteen hundred eighty-three fiscal year, would be the
actuarial equivalent, on the basis of eight per centum interest per
annum, of the present value, as of June thirtieth, nineteen hundred
eighty-two on the basis of seven and one-half per centum interest per
annum, of those installments of the nineteen hundred eighty unfunded
accrued liability adjustment computed pursuant to item (iv) of this
subparagraph (c), which installments are hypothetically allocated by
such item (iv) to designated city fiscal years succeeding June
thirtieth, nineteen hundred eighty-two.
(C) With respect to determination of the amount of contributions
payable to the contingent reserve fund in each city fiscal year
occurring during the period beginning on July first, nineteen
eighty-eight and ending on June thirtieth, two thousand ten, the
nineteen hundred eighty unfunded accrued liability adjustment shall be
an amount which, when paid (if a charge) or credited (if a credit) in
twenty-two equal annual installments, commencing with a payment or
credit, as the case may be, in the city's nineteen hundred
eighty-eight--nineteen hundred eighty-nine fiscal year, shall be the
actuarial equivalent, on the basis of eight and one-quarter per centum
interest per annum, of the present value, as of June thirtieth, nineteen
hundred eighty-eight on the basis of eight per centum interest per
annum, of those installments of the nineteen hundred eighty unfunded
accrued liability adjustment computed pursuant to sub-item (b) of this
item (v), which installments are hypothetically allocated by such
sub-item (b) to designated city fiscal years succeeding June thirtieth,
nineteen hundred eighty-eight.
(D) With respect to determination of the amount of contributions
payable to the contingent reserve fund in each of such city fiscal years
referred to in sub-item (B) or sub-item (C) of this item (v), the annual
installment of the nineteen hundred eighty unfunded accrued liability
adjustment computed pursuant to sub-item (B) or sub-item (C)of this item
(v), which installment is applicable to such fiscal year, shall be
applied as a charge or credit, as the case may be, in relation to such
contributions payable in such fiscal year.
(d) (i) The nineteen hundred eighty-two unfunded accrued liability
adjustment shall be an amount determined as prescribed in items (ii),
(iii), (iv) and (v) of this subparagraph (d).
(ii) Upon the basis of the actuarial tables in effect as of June
thirtieth, nineteen hundred eighty-one for valuation purposes and
interest at the rate of seven and one-half per centum per annum, there
shall be determined, as of June thirtieth, nineteen hundred eighty-two,
the amount of the actuarial accrued liability of the pension fund,
computed pursuant to the entry age normal cost method of ascertaining
such actuarial accrued liability.
(iii) Upon the basis of the actuarial tables in effect as of June
thirtieth, nineteen hundred eighty-two for valuation purposes and
interest at the rate of eight per centum per annum, there shall be
determined, as of June thirtieth, nineteen hundred eighty-two, the
amount of the actuarial accrued liability of the pension fund, computed
pursuant to the entry age normal cost method of ascertaining such
actuarial accrued liability.
(iv) With respect to determination of the amount of contributions
payable to the contingent reserve fund in each city fiscal year
occurring during the period beginning on July first, nineteen hundred
eighty-two and ending on June thirtieth, nineteen hundred eighty-eight,
the nineteen hundred eighty-two unfunded accrued liability adjustment
shall be an amount which, if credited in thirty equal annual
installments (the first of which installments is to be credited in the
city's nineteen hundred eighty-two--nineteen hundred eighty-three fiscal
year) in reduction of the amounts which the city would otherwise be
required to pay to the contingent reserve fund pursuant to items (i),
(iii), (iv), (vi) and (vii) of subparagraph (a) of paragraph (1) of this
subdivision b or otherwise pursuant to law, would be the actuarial
equivalent, on the basis of eight per centum interest per annum, of the
excess of the amount computed pursuant to item (ii) of this subparagraph
(d) over the amount computed pursuant to item (iii) of this
subparagraph.
(v) With respect to determination of the amount of contributions
payable to the contingent reserve fund in each city fiscal year
occurring during the period beginning on July first, nineteen hundred
eighty-eight and ending on June thirtieth, two thousand twelve, the
nineteen hundred eighty-two unfunded accrued liability adjustment shall
be an amount which, when credited in twenty-four equal annual
installments (the first of which installments is to be credited in the
city's nineteen hundred eighty-eight--nineteen hundred eighty-nine
fiscal year) in reduction of the amounts which the city would otherwise
be required to pay to the contingent reserve fund pursuant to items (i),
(iii), (iv), (vi) and (vii) of subparagraph (a) of paragraph (1) of this
subdivision b or otherwise pursuant to law, shall be the actuarial
equivalent, on the basis of eight and one-quarter per centum interest
per annum, of the present value, as of June thirtieth, nineteen hundred
eighty-eight on the basis of eight per centum interest per annum, of
those installments of the nineteen hundred eighty-two unfunded accrued
liability adjustment computed pursuant to item (iv) of this subparagraph
(d), which installments are hypothetically allocated by such item to
designated city fiscal years succeeding June thirtieth, nineteen hundred
eighty-eight.
(e) (i) The nineteen hundred eighty-five unfunded accrued liability
adjustment shall be an amount determined as prescribed in items (ii),
(iii) and (iv) of this subparagraph (e).
(ii) Upon the basis of the actuarial tables in effect for valuation
purposes with respect to determination of the normal contribution
payable to the contingent reserve fund in the city's nineteen hundred
eighty-four--nineteen hundred eighty-five fiscal year and interest at
the rate of eight per centum per annum, there shall be determined, as of
June thirtieth, nineteen hundred eighty-five, the amount of the
actuarial accrued liability of the pension fund, computed pursuant to
the entry age normal cost method of ascertaining such actuarial accrued
liability.
(iii) Upon the basis of the actuarial tables in effect for valuation
purposes with respect to determination of the normal contribution
payable to the contingent reserve fund in the city's nineteen hundred
eighty-five--nineteen hundred eighty-six fiscal year and interest at the
rate of eight per centum per annum, there shall be determined, as of
June thirtieth, nineteen hundred eighty-five, the amount of the
actuarial accrued liability of the pension fund, computed pursuant to
the entry age normal cost method of ascertaining such actuarial accrued
liability.
(iv) (A) The nineteen hundred eighty-five unfunded accrued liability
adjustment, for each city fiscal year occurring during the period
beginning on July first, nineteen hundred eighty-five and ending on June
thirtieth, nineteen hundred eighty-eight, shall be an amount which if
paid to the contingent reserve fund in thirty equal annual installments,
commencing with payment of a first installment in the city's nineteen
hundred eighty-five--nineteen hundred eighty-six fiscal year, would be
the actuarial equivalent, on the basis of eight per centum interest per
annum, of the excess of the amount computed pursuant to item (iii) of
this subparagraph (e) over the amount computed pursuant to item (ii) of
this subparagraph.
(B) The nineteen hundred eighty-five unfunded accrued liability
adjustment for each city fiscal year occurring during the period
beginning on July first, nineteen hundred eighty-eight and ending on
June thirtieth, two thousand fifteen, shall be an amount which, when
paid to the contingent reserve fund in equal annual installments,
commencing with payment of a first installment in the city's nineteen
hundred eighty-eight--nineteen hundred eighty-nine fiscal year, shall be
the actuarial equivalent, on the basis of eight and one-quarter per
centum interest per annum, of the present value, as of the June
thirtieth, nineteen hundred eighty-eight on the basis of eight per
centum interest per annum, of those installments of the unfunded accrued
liability adjustment computed pursuant to sub-item (A) of this item
(iv), which installments are hypothetically allocated by such sub-item
(A) to designated city fiscal years succeeding June thirtieth, nineteen
hundred eighty-eight.
(4) (a) As used in this section, the following words and phrases,
unless a different meaning is plainly required by the context, shall
have the following meanings:
(i) (A) "Normal contribution for balance sheet liability purposes".
The hypothetical amount which the normal contribution payable in each
city fiscal year occurring during the period beginning on July first,
nineteen hundred seventy-four and ending on June thirtieth, nineteen
hundred eighty would have equalled if such normal contribution had been
required by law to be paid to the contingent reserve fund in the city
fiscal year in which the obligation to make such normal contribution had
been required by law to be determined in the manner provided for in
sub-items (B), (C) and (D) of this item (i).
(B) Upon the basis of the mortality and other tables effective under
this subchapter as of July first, nineteen hundred seventy-seven and
interest at the rate of five and one-half per centum per annum, the
actuary shall determine, as of June thirtieth next preceding each such
fiscal year for which such normal contribution is being determined
(hereinafter referred to as the "subject fiscal year") the amount of the
then total liability for all benefits provided in this subchapter, in
article eleven of the retirement and social security law, in any other
law prescribing benefits payable by the pension fund in article fourteen
of such law (if applicable) and in any other law prescribing benefits
payable by the pension fund on account of all then members and
beneficiaries, excluding the then liability on account of future annual
contributions, for balance sheet liability purposes, on account of
reserves-for-increased-take-home-pay (as defined in item (iv) of this
subparagraph (a), if any, and the then liability for benefits
attributable to the annuity savings fund.
(C) The hypothetical normal rate of contribution with respect to the
subject fiscal year shall be the rate per centum obtained:
(1) by deducting from the amount of such total liability the sum of:
(A) the present value of all then required future unfunded accrued
liability contributions for balance sheet liability purposes (as defined
in item (ii) of this subparagraph (a)); and
(B) the present value of all then required future annual
contributions, for balance sheet liability purposes, on account of
amortization of losses on dispositions of certain securities within the
meaning of section 13-704 of this title (as defined in item (iii) of
this subparagraph (a)); and
(C) the present value of future member contributions of members, if
any, subject to article fourteen of the retirement and social security
law; and
(D) the amount obtained by adding together the total funds on hand
(excluding therefrom the amount in the annuity savings fund) and the
balance sheet liability as of such June thirtieth next preceding the
subject fiscal year; and
(2) by dividing the remainder by one per centum of the then present
value of the prospective future salaries of all members, as computed on
the basis of the mortality and service tables adopted pursuant to
section 13-221 of this subchapter and in effect on July first, nineteen
hundred seventy-seven, and on the basis of interest at the rate of five
and one-half per centum per annum.
(D) The amount of the normal contribution for balance sheet liability
purposes hypothetically payable in the subject fiscal year shall be the
amount obtained (1) by multiplying such hypothetical normal contribution
rate computed with respect to the subject fiscal year by the aggregate
annual salaries of the members as of June thirtieth of the subject
fiscal year and (2) by adding to the product of such multiplication,
interest on such product at the rate of five and one-half per centum per
annum for a period of six months.
(ii) "Unfunded accrued liability contribution for balance sheet
liability purposes". (A) With respect to the city's nineteen hundred
seventy-four--nineteen hundred seventy-five fiscal year, such term shall
mean a hypothetical amount which, if paid to the contingent reserve fund
in forty equal annual installments, beginning with payment of a first
installment in the city's nineteen hundred seventy-four--nineteen
hundred seventy-five fiscal year, would be the actuarial equivalent, on
the basis of interest at the rate of five and one-half per centum per
annum, of the remainder computed in the manner prescribed by sub-items
(B) and (C) of this item (ii).
(B) Upon the basis of the actuarial tables in effect as of July first,
nineteen hundred seventy-seven for valuation purposes and interest at
the rate of five and one-half per centum per annum, there shall be
computed, as of June thirtieth, nineteen hundred seventy-four, the
amount of the total liability for all benefits provided by this
subchapter, in article eleven of the retirement and social security law
and in any other law prescribing benefits payable by the pension fund on
account of all members and beneficiaries, excluding the liability on
account of future increased-take-home-pay contributions and the
liability for benefits attributable to the annuity savings fund.
(C) From such total liability computed pursuant to sub-item (B) of
this item (ii) there shall be subtracted the sum of:
(1) the present value, as of June thirtieth, nineteen hundred
seventy-four, of all future normal costs of the pension fund, computed
pursuant to the entry age normal cost method of determining such normal
cost; and
(2) the present value, as of such June thirtieth, of all then required
future payments, pursuant to section 13-704 of this title (as then in
effect), of installments of losses in excess of installments of gains on
dispositions of securities within the meaning of such section; and
(3) the sum obtained by adding together the balance sheet liability as
of such June thirtieth (as such liability is determined pursuant to the
provisions of subparagraph (b) of this paragraph four) and the total
funds on hand as of such June thirtieth, excluding the amount in the
annuity savings fund, but including the amount of any unpaid moneys
appropriated pursuant to section 13-231 of this subchapter.
(D) With respect to each of the city's fiscal years occurring during
the period from July first, nineteen hundred seventy-five to June
thirtieth, nineteen hundred eighty, such term shall mean a hypothetical
amount which, if paid to the contingent reserve fund in forty equal
annual installments, beginning with payment of a first installment in
the city's nineteen hundred seventy-five--nineteen hundred seventy-six
fiscal year, would be the actuarial equivalent, on the basis of interest
at the rate of five and one-half per centum per annum, of the remainder
computed pursuant to sub-items (E) and (F) of this item (ii).
(E) Upon the basis of the actuarial tables in effect as of July first,
nineteen hundred seventy-seven for valuation purposes and interest at
the rate of five and one-half per centum per annum, there shall be
computed, as of June thirtieth, nineteen hundred seventy-five, the
amount of the total liability for all benefits provided by this chapter,
in article eleven of the retirement and social security law and in any
other law prescribing benefits payable by the retirement system on
account of all members and beneficiaries, excluding the liability on
account of future increased-take-home-pay contributions and the
liability for benefits attributable to the annuity savings fund.
(F) From such total liability computed pursuant to sub-item (E) of
this item (ii), there shall be subtracted the sum of:
(1) the present value, as of June thirtieth, nineteen hundred
seventy-five, of all future normal costs of the pension fund, computed
pursuant to the entry age normal cost method of determining such normal
costs; and
(2) the present value, as of such June thirtieth, of all then required
future payments, pursuant to section 13-704 of this title (as then in
effect), of installments of losses in excess of installments of gains on
dispositions of securities within the meaning of such section; and
(3) the sum obtained by adding together the balance sheet liability as
of such June thirtieth (as such liability is determined pursuant to the
provisions of subparagraphs (c) to (i) inclusive, of this paragraph
four) and the total funds on hand, as of such June thirtieth, excluding
the amount in the annuity savings fund, but including the amount of any
unpaid moneys appropriated pursuant to section 13-231 of this
subchapter.
(iii) "Annual contribution, for balance sheet liability purposes, on
account of amortization of losses on dispositions of certain securities
within the meaning of section 13-704 of this title". A hypothetical
annual payment to the contingent reserve fund in each of the city's
fiscal years occurring during the period beginning on July first,
nineteen hundred seventy-four and ending on June thirtieth, nineteen
hundred eighty, of the amount of the excess of installments (payable in
such year) of losses on prior dispositions of securities within the
meaning of section 13-704 of this title over the installments
(creditable in such year) of gains on such prior dispositions, which
annual amount shall be determined in the manner provided in subdivision
h of such section 13-704 of this title.
(iv) "Annual contribution, for balance sheet liability purposes, on
account of reserves-for-increased-take-home-pay". A hypothetical annual
payment to the contingent reserve fund in each of the city's fiscal
years occurring during the period from July first, nineteen hundred
seventy-four to June thirtieth, nineteen hundred eighty, of the amount
required to fulfill the public employer obligation, which accrued in
such year, to make contributions on account of increased-take-home-pay.
(v) "Annual military law contribution for balance sheet liability
purposes". A hypothetical annual payment to the contingent reserve fund
in each of the city's fiscal years occurring during the period beginning
on July first, nineteen hundred seventy-four and ending on June
thirtieth, nineteen hundred eighty, of the amount required to fulfill
the public employer obligation, which accrued in such year under the
provisions of subdivision twenty of section two hundred forty-three of
the military law, to pay in behalf of members qualifying for such
benefit, member contributions with respect to certain periods of
military service of such members.
(vi) "Deficiency contribution". The annual amount which, under the
provisions of paragraph one of this subdivision b and paragraph three
thereof, as such provisions were in effect during the period from July
first, nineteen hundred seventy-two to June thirtieth, nineteen hundred
seventy-seven, the city was required to pay to the contingent reserve
fund in each of the city's nineteen hundred seventy-four--nineteen
hundred seventy-five, nineteen hundred seventy-five--nineteen hundred
seventy-six and nineteen hundred seventy-six--nineteen hundred
seventy-seven fiscal years.
(vii) "Contribution on account of amortization, pursuant to section
13-704 of this title, of losses on dispositions of certain securities".
The total annual amount by which the sum of the installments of losses,
payable pursuant to section 13-704 of this title (as in effect prior to
July first, nineteen hundred eighty) in each of the city's fiscal years
occurring during the period from July first, nineteen hundred
seventy-four to June thirtieth, nineteen hundred eighty in relation to
dispositions of securities within the meaning of such section, exceeds
the sum of the installments of gains creditable in the same fiscal year
in relation to the same dispositions of securities.
(b) The balance sheet liability as of June thirtieth, nineteen hundred
seventy-four shall be the sum of two hundred fifty-two million, three
hundred fifty-two thousand, six hundred ninety-nine dollars
($252,352,699), consisting of the sum of:
(i) the discounted value, as of June thirtieth, nineteen hundred
seventy-four, of the sum of ninety-five million, seven hundred thousand
dollars ($95,700,000), which constituted the amount payable into the
contingent reserve fund in the city's nineteen hundred
seventy-four--nineteen hundred seventy-five fiscal year by the city in
fulfillment of its obligations to make contributions to the pension fund
payable in such fiscal year, such discounting being calculated on the
basis of interest at the rate of five and one-half per centum per annum
and a discount period of six months extending retroactively from January
first, nineteen hundred seventy-five to June thirtieth, nineteen hundred
seventy-four, and such discounted value being the sum of ninety-three
million, one hundred seventy-two thousand, eighty-five dollars
($93,172,085); and
(ii) the discounted value, as of June thirtieth, nineteen hundred
seventy-four, of the sum of one hundred seventy-two million, four
hundred ninety-one thousand, nine hundred ninety-four dollars
($172,491,994), which constituted the amount payable to the contingent
reserve fund in the city's nineteen hundred seventy-five--nineteen
hundred seventy-six fiscal year by the city in fulfillment of its
obligations to make contributions to the pension fund payable in such
fiscal year, such discounting being calculated on the basis of interest
at the rate of five and one-half per centum per annum and a discount
period of eighteen months extending retroactively from January first,
nineteen hundred seventy-six to June thirtieth, nineteen hundred
seventy-four, and such discounted value being the sum of one hundred
fifty-nine million, one hundred eighty thousand, six hundred fourteen
dollars ($159,180,614).
(c) The balance sheet liability, as of each June thirtieth succeeding
June thirtieth, nineteen hundred seventy-four to and including June
thirtieth, nineteen hundred eighty, shall be determined as provided for
in subparagraphs (d) to (j), inclusive, of this paragraph four.
(d) To the amount of the balance sheet liability as of June thirtieth
next preceding the June thirtieth (which last-mentioned June thirtieth
is hereinafter referred to as the "subject June thirtieth") as of which
the balance sheet liability is being determined as provided for in
subparagraph (c) of this paragraph four, there shall be added one year's
interest on such amount at the rate of five and one-half per centum per
annum.
(e) With respect to the city's fiscal year ending on the subject June
thirtieth (hereinafter referred to as the "subject fiscal year") there
shall be added together the contribution components hereinafter
specified in this subparagraph (e), which components, for the purposes
of this paragraph four, are hypothetically deemed to have accrued in the
subject fiscal year and to have been payable therein, as follows:
(i) the amount of the normal contribution for balance sheet liability
purposes (as defined in item (i) of subparagraph (a) of this paragraph
four); and
(ii) the amount of the applicable installment of the unfunded accrued
liability contribution for balance sheet liability purposes (as defined
in item (ii) of subparagraph (a) of this paragraph); and
(iii) the amount of the annual contribution, for balance sheet
liability purposes, on account of amortization of losses on dispositions
of certain securities within the meaning of section 13-704 of this title
(as defined in item (iii) of subparagraph (a) of this paragraph); and
(iv) the amount of the annual contribution, for balance sheet
liability purposes, on account of reserves-for-increased-take-home-pay
(as defined in item (iv) of subparagraph (a) of this paragraph); and
(v) the amount of the annual military law contribution for balance
sheet liability purposes (as defined in item (v) of subparagraph (a) of
this paragraph).
(f) To the amount resulting from the addition prescribed by
subparagraph (e) of this paragraph four, there shall be added interest
thereon at the rate of five and one-half per centum per annum from
January first of the subject fiscal year to June thirtieth of such
fiscal year.
(g) The amount computed pursuant to subparagraph (d) of this paragraph
four in relation to the balance sheet liability as of June thirtieth
next preceding the subject June thirtieth (together with one year's
interest on such balance sheet liability as provided for in such
subparagraph) shall be added to the amount computed pursuant to
subparagraph (f) of this paragraph in relation to the subject fiscal
year.
(h) From the amount computed pursuant to subparagraph (g) of this
paragraph, there shall be subtracted the sum of:
(i) the total amount of the sums paid to the contingent reserve fund
during the subject fiscal year by the city on account of its
obligations, which accrued during the city's second fiscal year
preceding the subject fiscal year, to provide:
(A) the normal contribution payable in the subject fiscal year under
the provisions of paragraphs one and two of this subdivision b as then
in effect; and
(B) the installment of the deficiency contribution (as defined in item
(vi) of subparagraph (a) of this paragraph four) or the installment of
the original unfunded accrued liability contribution, (as defined in
subparagraph (a) of paragraph three of this subdivision b), as the case
may be, payable in the subject fiscal year; and
(C) the amount of the contribution on account of amortization,
pursuant to section 13-704 of this title, of losses on dispositions of
certain securities (as defined in item (vii) of subparagraph (a) of this
paragraph four) payable in the subject fiscal year; and
(D) the amount payable in the subject fiscal year on account of
reserves-for-increased-take-home-pay; and
(E) the amount payable in the subject fiscal year in behalf of members
pursuant to subdivision twenty of section two hundred forty-three of the
military law; plus
(ii) interest on such total amount referred to in item (i) of this
subparagraph (h) at the rate of five and one-half per centum per annum
from January first of the subject fiscal year to June thirtieth thereof.
(i) The remainder resulting from the subtraction prescribed by
subparagraph (h) of this paragraph four shall be the balance sheet
liability as of June thirtieth of the subject fiscal year.
(j) The balance sheet liability as of June thirtieth, nineteen hundred
eighty shall be the amount resulting from the successive computations of
the balance sheet liability as of each June thirtieth succeeding June
thirtieth, nineteen hundred seventy-four up to and including June
thirtieth, nineteen hundred eighty, as prescribed by subparagraphs (c)
to (i), inclusive, of this paragraph four.
(k) The balance sheet liability contribution payable in the city's
nineteen hundred eighty-one--nineteen hundred eighty-two fiscal year
shall be the first annual installment of an amount which, if paid to the
contingent reserve fund in forty equal annual installments, commencing
with payment of a first installment in the city's nineteen hundred
eighty-one--nineteen hundred eighty-two fiscal year, would be the
actuarial equivalent, as of June thirtieth, nineteen hundred eighty-one,
on the basis of seven and one-half per centum interest per annum, of an
amount equal to the balance sheet liability as of June thirtieth,
nineteen hundred eighty.
(l) The balance sheet liability contribution payable in each city
fiscal year during the period beginning on July first, nineteen hundred
eighty-two and ending on June thirtieth, nineteen hundred eighty-eight
shall be one annual installment of an amount which, if paid to the
contingent reserve fund in thirty-nine equal annual installments,
commencing with a first payment in the city's nineteen hundred
eighty-two--nineteen hundred eighty-three fiscal year, would be the
actuarial equivalent, as of June thirtieth, nineteen hundred eighty-two,
on the basis of eight per centum interest per annum, of the present
value, as of June thirtieth, nineteen hundred eighty-two on the basis of
seven and one-half per centum interest per annum, of those installments
of the balance sheet liability contribution computed pursuant to
subparagraph (k) of this paragraph (4), which installments are
hypothetically allocated by such subparagraph (k) to designated city
fiscal years succeeding June thirtieth, nineteen hundred eighty-two.
(m) The balance sheet liability contribution payable in each city
fiscal year during the period beginning on July first, nineteen hundred
eighty-eight and ending on June thirtieth, two thousand twenty-one shall
be one annual installment of an amount which, when paid to the
contingent reserve fund in thirty-three equal annual installments,
commencing with a first payment in the city's nineteen hundred
eighty-eight--nineteen hundred eighty-nine fiscal year, shall be the
actuarial equivalent, as of June thirtieth, nineteen hundred
eighty-eight, on the basis of eight and one-quarter per centum interest
per annum, of the present value, as of June thirtieth, nineteen hundred
eighty-eight on the basis of eight per centum interest per annum, of
those installments of the balance sheet liability contribution computed
pursuant to subparagraph (1) of this paragraph (4), which installments
are hypothetically allocated by such subparagraph (1) to designated city
fiscal years succeeding June thirtieth, nineteen hundred eighty-eight.
(5) Contributions to the contingent reserve fund payable by the city
in fiscal years of the city beginning on or after July first, nineteen
hundred ninety shall be governed by the provisions of this section, as
modified and supplemented by sections 13-638.2 and 13-638.3 of this
title, and such other laws as may be applicable.
(6) (a) On the basis of interest at the rate of eight and one-half per
centum per annum and the actuarial tables in effect as of July first,
nineteen hundred ninety-four, the actuary shall determine the present
value as of such July first, of the future liability of the pension fund
for paying all benefits and supplemental benefits on and after such date
to police subchapter one beneficiaries (as defined in paragraph three of
subdivision a of section 13-213.1 of this chapter), which liability is
deemed to have been transferred to and assumed by the fund pursuant to
subdivisions d, e and g of section 13-213.1 of this chapter as if such
transfers actually had been made on such July first.
(b) The city shall pay to the contingent reserve fund in ten equal
annual installments, commencing with payment of a first installment in
the city's nineteen hundred ninety-four--nineteen hundred ninety-five
fiscal year, an amount which, when paid in such installments, is the
actuarial equivalent of the amount determined pursuant to subparagraph
(a) of this paragraph.
c. Whenever the board, upon recommendation by the actuary, shall
determine that it is necessary to increase the reserves held in the
annuity reserve fund, the pension reserve fund or the dependent benefit
reserve fund, the board may direct that the amount so needed shall be
transferred thereto from the contingent reserve fund.
d. The cash benefits payable under the provisions of this subchapter
to, or upon the death of, a member in active service shall be paid from
such contingent reserve fund.
e. Upon the retirement of such a member, or upon his or her death in
the performance of duty, an amount equal to the pension reserve for the
pension payable by the city on account of his or her city-service as a
member, together with reserve-for-increased-take-home-pay, shall be
transferred from such fund to the pension reserve fund. Contributions
shall be paid into the contingent reserve fund, in the manner and to the
extent specified by section 13-226 of this subchapter, to provide
reserves-for-increased-take-home-pay.
Section 13-229
§ 13-229 Contributions of the city and their use; pension reserve
fund. The pension reserve fund shall be the fund from which shall be
paid all pensions, and all
pensions-provided-for-increased-take-home-pay, and all benefits in lieu
of pensions, and all benefits in lieu of
pensions-providing-for-increased-take-home-pay, if any, allowable by the
city on account of the city-service of members. Should any pension or
pension-providing-for-increased-take-home-pay payable from such pension
reserve fund be cancelled, the pension reserve or
reserve-for-increased-take-home-pay thereon shall thereupon be
transferred from the pension reserve fund to the contingent reserve
fund. Should any pension or
pension-providing-for-increased-take-home-pay payable from such fund be
reduced, the amount of the annual reduction in such pension or
pension-providing-for-increased-take-home-pay shall be paid annually
into the contingent reserve fund during the period of such reduction.
Section 13-230
§ 13-230 Contributions of public benefit corporations and their use.
Notwithstanding the requirements of section 13-228 of this subchapter,
of the amounts due from the city, all amounts due to the contingent
reserve fund on account of any members of the pension fund during the
period of their employment by any authority or body corporate and
politic constituting a public benefit corporation or its successor,
shall be paid by such employing authority or body corporate and politic
or successor.
Section 13-231
§ 13-231 Guarantee of funds. a. Regular interest, charges payable, the
creation and maintenance of reserves in the contingent reserve fund and
the pension reserve fund and the maintenance of annuity reserves,
pension reserves, dependent benefit reserves and
reserves-for-increased-take-home-pay as provided for in this subchapter
and the payment of all pensions,
pensions-providing-for-increased-take-home-pay, annuities, retirement
allowances, refunds, death benefits, dependent benefits and any other
benefits granted under the provisions of this subchapter, are hereby
made obligations of the city. Except as otherwise provided in sections
13-232, 13-232.1, 13-232.2 and 13-232.3 of this subchapter, all income,
interest and dividends derived from deposits and investments authorized
by this subchapter shall be used and disposed of in the manner
prescribed by subdivision b of this section. Upon the basis of each
actuarial determination and appraisal provided for in this subchapter,
the commissioner shall prepare pursuant to section one hundred twelve of
the charter and submit to the director of management and budget an
itemized estimate of the amounts necessary to be appropriated by the
city to the various funds to provide for payment in full during the
ensuing fiscal year of all such obligations of the city accruing during
the ensuing fiscal year. There shall be included annually in the budget
a sum sufficient to provide for such obligations of the city. The
comptroller shall pay the sums so provided into the various funds
provided for by this subchapter, subject to the provisions of
subdivision b of this section.
b. (1) Subject to the provisions of paragraphs two, three and four of
this subdivision, all income, interest and dividends derived from
deposits and investments authorized by this subchapter, which income,
interest and dividends were heretofore or are hereafter received during
any city fiscal year commencing on or after July first, nineteen hundred
eighty, shall (after payment therefrom of the sum, if any, required to
be paid pursuant to sections 13-232, 13-232.1, 13-232.2 and 13-232.3 of
this subchapter) be used in such fiscal year for the purposes
hereinafter specified in this paragraph (to the extent that such income,
interest and dividends are sufficient for such purposes), in the order
of priority herein stated, as follows:
(A) first, to pay into the funds of the pension fund the amounts of
regular interest which are required to be paid into such funds in such
fiscal year by reason of being required to be allowed to such funds
pursuant to the provisions of section 13-234 of this subchapter, and to
pay into such funds the amount of supplementary interest, if any,
required to be so paid in such fiscal year under the applicable
provisions of such section, and to pay into the annuity savings fund the
amounts of special interest, if any, required to be so paid in such
fiscal year under the applicable provisions of such section, and to pay
into the contingent reserve fund the amounts of additional interest, if
any, required to be paid in such fiscal year under the applicable
provisions of such section;
(B) second, to pay into the contingent reserve fund the amount of any
losses in excess of gains (i) which net losses the pension fund
sustained during such fiscal year by reason of sales or other
dispositions of securities, and (ii) for which net losses the pension
fund is required to be reimbursed in such fiscal year, and (iii) to
which net losses section 13-704 of this title, relating to graduated
crediting of gains and amortization of losses on dispositions of certain
securities, does not apply;
(C) third, if the total amount of such income, interest and dividends
received during such fiscal year is in excess of the total amount
required to make, in such fiscal year, the payments prescribed by
subparagraphs (A) and (B) of this paragraph, the amount of such excess
shall be paid into the contingent reserve fund and shall become a part
of the assets of such fund.
(2) Notwithstanding the provisions of paragraph one of this
subdivision or any other law to the contrary, any such income, interest
or dividends which are received by the pension fund may be used for the
purpose specified in section 13-705 of this title (relating to expenses
incurred in the acquisition, management and protection of investments),
regardless of when received and prior to use for the purposes stated in
such paragraph one.
(3) (A) Notwithstanding any other provision of this section or any
other law to the contrary, the term "all income, interest and dividends
derived from deposits and investments", as used in paragraph two of this
subdivision (as such subdivision was in effect prior to July first,
nineteen hundred eighty), shall be construed, in relation to disposition
of all income, interest and dividends received by the pension fund in
each of the city's nineteen hundred seventy-six--nineteen hundred
seventy-seven and nineteen hundred seventy-seven--nineteen hundred
seventy-eight obligations fiscal years (as such fiscal years were
defined by paragraph one of this subdivision prior to such July first)
as meaning the remainder obtained:
(i) by subtracting from such income, interest and dividends the amount
of any expenses charged thereto pursuant to the provisions of section
13-705 of this title; and
(ii) by subtracting from such amount computed pursuant to item (i) of
this subparagraph (A) the amount, if any, required to be paid therefrom
pursuant to section 13-232 of this subchapter; and
(iii) by subtracting from the amount computed pursuant to item (ii) of
this subparagraph (A) the sum of:
(1) the amounts of regular, supplementary and special interest
required to be allowed and paid into the appropriate funds of the
retirement system in such fiscal year pursuant to the applicable
provisions of section 13-234 of this subchapter; and
(2) the amount of any losses in excess of gains (a) which net losses
were sustained by the pension fund during such fiscal year and which net
losses were sustained by reason of sales or other dispositions of
securities, and (b) to which net losses the provisions of section 13-704
of this title do not apply.
(B) for the purposes of the order of priority governing the
disposition, in the payment fiscal year with respect to each such
obligations fiscal year, of such remainder computed pursuant to
subparagraph (A) of this paragraph three (as such disposition was
prescribed by the provisions of this subdivision as in effect during
each such payment fiscal year) the provisions of subparagraphs (A) and
(B) of such paragraph two shall be deemed to have been inapplicable and
the order of priority for such disposition shall be first, the use set
forth in subparagraph (C) of such paragraph, second, the use set forth
in subparagraph (D) of such paragraph, third, the use set forth in
subparagraph (E) of such paragraph and fourth, the use set forth in
subparagraph (F) of such paragraph, as such subparagraphs were in effect
during such payment fiscal year.
(4) (a) Subject to the provisions of paragraph five of this
subdivision b, all income, interest and dividends which were derived
from deposits and investments authorized by this title and which were
received during each of the city's nineteen hundred
seventy-eight--nineteen hundred seventy-nine and nineteen hundred
seventy-nine--nineteen hundred eighty fiscal years shall be used (after
payment therefrom of the sum, if any, required to be paid pursuant to
section 13-232 of this subchapter in each such fiscal year for the
purposes hereinafter stated in this subparagraph (a), in the order of
priority herein stated, as follows:
(A) first, (i) to pay into the funds of the pension fund the amounts
of regular interest which are required to be paid into such funds in
such fiscal year wherein such income, interest and dividends were
received, which interest is so payable by reason of being required to be
allowed to such funds in such fiscal year pursuant to the provisions of
section 13-234 of this subchapter, and (ii) to pay into such funds the
amounts of supplementary interest required to be so paid in such fiscal
year under the applicable provisions of such section, and (iii) to pay
into the annuity savings fund the amounts of special interest required
to be so paid in such fiscal year under the applicable provisions of
such section, and (iv) to pay into the contingent reserve fund the
amounts of additional interest required to be paid in such fiscal year
under the applicable provisions of such section;
(B) second, to pay into the contingent reserve fund the amount of any
losses in excess of gains (i) which net losses were sustained by the
pension fund during such fiscal year in which such income, interest and
dividends were received and which net losses were sustained by reason of
sales or other dispositions of securities, and (ii) for which net losses
the pension fund is required to be reimbursed in such fiscal year, and
(iii) to which net losses section 13-704 of this title, relating to
graduated crediting of gains and amortization of losses on dispositions
of certain securities, does not apply; and
(C) third, to pay into the contingent reserve fund the amount, if any,
by which,
(i) the total of all losses which the pension fund sustained during
such fiscal year by reason of sales of securities within the meaning of
such section 13-704 of this title and which the responsible public
employer, as defined in paragraph four of subdivision a of such section
13-704 of this title, would otherwise be required to amortize pursuant
to such section, exceeds
(ii) the total of all gains which were realized during such fiscal
year by reason of sales of securities within the meaning of such section
and which would otherwise be required by such section to be credited in
favor of the responsible public employer in installments.
(b) if the total amount of such income, interest and dividends
received during each such fiscal year referred to in subparagraph (a) of
this paragraph four is in excess of the total amount required to make,
in the same fiscal year, the payments prescribed by items (A), (B) and
(C) of such subparagraph (a), the amount of such excess shall be paid
into the contingent reserve fund as of June thirtieth of such fiscal
year and shall become a part of the assets of such fund as of such date.
(5) Notwithstanding the provisions of paragraph four of this
subdivision or any other law to the contrary, any such income, interest
or dividends which were received by the pension fund in either such
fiscal year referred to in such paragraph four may be used for the
purpose specified in section 13-705 of this title (relating to expenses
incurred in the acquisition, management and protection of investment)
prior to use for the purposes stated in such paragraph four.
c. (1) The comptroller shall make monthly payments, in twelve equal
installments, with respect to obligations which the city incurs to pay
sums to the pension fund.
(2) In the city's nineteen hundred eighty--nineteen hundred eighty-one
fiscal year and in each city fiscal year thereafter, the equal monthly
payments shall be in respect of obligations which accrue in such fiscal
year and shall be made in such fiscal year on or before the last day of
each month.
(3) The board of trustees of the pension fund may waive the
requirements of the foregoing provisions of this subdivision with
respect to time of payment to such fund, provided that any such waiver
of time of payment in any instance shall not apply to the time of
subsequent payments unless there shall be a subsequent waiver.
Section 13-232
§ 13-232 Payments to variable supplements funds. a. For the purposes
of this section, the following terms shall mean and include:
1. "Base fiscal year". Any fiscal year of the city beginning on or
after July first, nineteen hundred sixty-nine, with respect to which
fiscal year a computation of earnings differential, based on equity
investments made or held by the pension fund during such fiscal year, is
being made pursuant to this section.
2. "Current fiscal year". The fiscal year of the city next succeeding
the base fiscal year.
3. "Prior base fiscal year". Any fiscal year of the city which begins
on or after July first, nineteen hundred sixty-nine and which precedes
the base fiscal year.
4. "Earnings differential". The amount (expressed as a positive or
negative quantity) by which the equity experience factor (expressed as a
positive or negative quantity) with respect to the base fiscal year
differs from the interest comparison factor with respect to the base
fiscal year. If such equity experience factor is greater than such
interest comparison factor, the difference between the two shall be
expressed as a positive quantity. If such interest comparison factor is
greater than such equity experience factor, the difference between the
two shall be expressed as a negative quantity.
5. (a) "Equity experience factor". An amount (expressed as a positive
or negative quantity) equal to (i) the income earned by the pension fund
during the base fiscal year from its investments in equities, plus (ii)
the capital gains, realized or unrealized, occurring during such fiscal
year by reason of such investments, less (iii) the capital losses,
realized or unrealized, occurring during such fiscal year by reason of
such investments.
(b) In the event that any equity is sold during the base fiscal year,
the expense of such sale, including but not limited to broker's
commissions, shall be deducted from capital gain or added to capital
loss, in determining whether such sale produced a capital gain or a
capital loss and the amount thereof.
6. "Income." Any yield of equities, including but not limited to
dividends, other than capital gains.
7. "Hypothetical fixed income securities earnings." (a) The aggregate
of the hypothetical interest yields computed pursuant to subparagraphs
(b), (c) and (d) of this paragraph seven.
(b) The board shall compute with respect to each investment made or
maintained by the pension fund in an equity during the base fiscal year,
the amount of interest which would have been hypothetically earned
during such fiscal year, under the methods of calculation prescribed in
this subparagraph seven, if an amount equal to such investment had
instead been hypothetically invested in fixed income securities and such
securities had been held by such fund for a period (in the base fiscal
year) co-extensive with the period during which such equity was held by
such fund in the base fiscal year.
(c) For the purposes of this section, the amount of any such
investment in an equity during the base fiscal year shall be deemed to
be:
(i) the market value of the equity on the first day of the base fiscal
year, in the case of any such equity acquired by the pension fund prior
to the commencement of such fiscal year and held by such fund on the
first day of such fiscal year; and
(ii) the total amount paid by such fund to acquire the equity,
including but not limited to broker's commissions and other expenses of
such acquisition, in the case of any such equity which is acquired by
such fund during the base fiscal year.
(d) For the purposes of this section, the amount of interest which
would have been earned by the pension fund on such hypothetical fixed
income securities during the base fiscal year shall be deemed to be the
amount obtained:
(i) by multiplying the amount of the investment in such equity,
determined as prescribed by subparagraph (c) of this paragraph seven, by
the assumed rate of interest for the base fiscal year; and
(ii) by prorating the interest so computed, in any case where the
investment in such equity was maintained by the pension fund for a part
of the base fiscal year.
8. "Assumed rate of interest". (a) In relation to any base fiscal
year, a hypothetical rate of interest, fixed as hereinafter in this
paragraph eight prescribed, which shall be used for the purpose of the
computing, pursuant to paragraph seven of this subdivision a, amounts of
interest which would have been hypothetically earned on hypothetical
investments of the pension fund in fixed income securities during such
fiscal year.
(b) The board shall fix the assumed rate of interest with respect to
each base fiscal year. In the event of a tie vote with respect to the
fixation of such rate, it shall be fixed by an arbitrator designated by
the board. If there is a tie vote as to the designation of such an
arbitrator, such rate shall be fixed by an arbitrator appointed by the
supreme court, on the application of any member of the board. The cost
of any arbitration pursuant to the foregoing provisions of this
subparagraph (b) shall be paid from transferable earnings.
9. "Six per cent interest offset". In relation to any base fiscal
year, the excess, if any, of the hypothetical fixed income securities
earnings with respect to such year, over the amount which such earnings
would be if they have been computed on the basis of an interest rate of
six per cent, rather than on the basis of the assumed rate of interest;
provided, however, that there shall be no six per cent interest offset
with respect to any base fiscal year unless the hypothetical fixed
income securities earnings with respect to such fiscal year exceeds the
equity experience factor with respect to such fiscal year; and provided
further that no six per cent interest offset with respect to any base
fiscal year shall in any event exceed the amount obtained by subtracting
the equity experience factor with respect to such fiscal year from the
hypothetical fixed income securities earnings with respect to such
fiscal year.
10. "Interest comparison factor". In relation to any base fiscal year,
the amount obtained by subtracting the six per cent interest offset, if
any, with respect to such fiscal year, from the hypothetical fixed
income securities earnings with respect to such fiscal year.
11. "Cumulative earnings differential for the base fiscal year". In
relation to a base fiscal year, the amount (expressed as a positive or
negative quantity) obtained by adding to the earnings differential for
such base fiscal year, the total of all earnings differentials for all
prior base fiscal years.
12. "Transferable earnings". In relation to a base fiscal year, the
total amount required by the provisions of subdivision c of this section
to be distributed, with respect to such base fiscal year, in the manner
provided by subdivision d of this section.
13. "Cumulative distributions of transferable earnings for prior base
fiscal years". In relation to a base fiscal year, the total of all
payments of transferable earnings made or required to be made by the
pension fund to the police officer's variable supplements fund and the
superior police officers' variable supplements fund with respect to all
prior base fiscal years pursuant to subdivisions c and d of this
section.
14. Police officer's variable supplements fund". The police officer's
variable supplements fund established by subchapter three of this
chapter.
15. "Police superior officers' variable supplements fund". The police
superior officers' variable supplements fund established by subchapter
four of this chapter.
16. "Superior police officers". Members of the uniformed force of the
police department who (a) hold the position of sergeant or any position
of higher rank in such force, or (b) are detectives.
b. As soon as practicable after the close of each base fiscal year,
but not later than August thirty-first of the current fiscal year, the
board shall compute:
(1) the earnings differential with respect to such base fiscal year,
and the interest offset, if any, with respect to such fiscal year;
(2) the total contributions made to the police pension fund,
subchapter two, with respect to such base fiscal year on behalf of all
members of the uniformed force of the police department who are police
officers, as of the last day of such base fiscal year; and
(3) the total contributions made to the police pension fund,
subchapter two, with respect to such base fiscal year on behalf of all
members of the uniformed force of the police department who are superior
police officers, as of such last day.
c. If the cumulative earnings differential for the base fiscal year is
a positive quantity and exceeds the cumulative distributions of
transferable earnings for prior base fiscal years, a sum equal to the
amount of such excess shall be distributed by the pension fund in the
manner provided by subdivision d of this section.
d. (1) If there be transferable earnings with respect to the base
fiscal year, computed as hereinabove provided, such transferable
earnings shall be divided into a police officer's variable supplements
fund share and a superior police officers' variable supplements fund
share in the ratio that the total contributions made to the police
pension fund, subchapter two, with respect to such base fiscal year on
behalf of police officers bears to the total contributions made to the
police pension fund, subchapter two, with respect to such base fiscal
year on behalf of superior police officers, as computed for such base
fiscal year pursuant to the provisions of paragraphs two and three of
subdivision b of this section.
(2) On or before August thirty-first of the current fiscal year, the
pension fund shall pay from the contingent reserve fund to the police
officer's variable supplements fund and the superior police officers'
variable supplements fund their respective shares of such transferable
earnings with respect to the base fiscal year, as such shares are
computed pursuant to paragraph one of this subdivision d.
e. The comptroller shall furnish to the board such information and
data as it may request for the purpose of carrying out the provisions of
this section.
f. The police officer's variable supplements fund and the police
superior officers' variable supplements fund shall not have any rights
under this section to any payments by the pension fund to such variable
supplements funds derived from or based upon the investment earnings of
the pension fund in any fiscal year of the city commencing on or after
July first, nineteen hundred eighty-eight. Any and all rights of the
police officer's variable supplements fund to payments from the pension
fund derived from or based upon the investment earnings of the pension
fund in any fiscal year of the city commencing on or after such July
first shall be governed solely by the provisions of section 13-232.1 of
this subchapter. Any and all rights of the police superior officers'
variable supplements fund to payments from the pension fund derived from
or based upon the investment earnings of the pension fund in any fiscal
year of the city included in the period commencing on such July first
and ending on June thirtieth, nineteen hundred ninety-two shall be
governed solely by the provisions of section 13-232.2 of this
subchapter. Any and all rights of the police superior officers' variable
supplements fund to payments from the pension fund derived from or based
upon the investment earnings of the pension fund in any fiscal year of
the city commencing on or after July first, nineteen hundred ninety-two
shall be governed solely by the provision of section 13-232.3 of this
subchapter.
Section 13-232.1
§ 13-232.1 Payments to police officer's variable supplements fund for
base fiscal years commencing on or after July first, nineteen hundred
eighty-eight. a. For the purposes of this section, the definitions of
terms set forth in paragraphs two, five, six, seven, eight and fourteen
of subdivision a of section 13-232 of this subchapter shall apply to
this section 13-232.1 with the same force and effect as if such
definitions were specifically set forth in this section.
b. For the purposes of this section, the following terms shall mean
and include:
1. "Base fiscal year". Any fiscal year of the city beginning on or
after July first, nineteen hundred eighty-eight.
2. "Prior base fiscal year". Any fiscal year of the city which begins
on or after July first, nineteen hundred eighty-eight and which precedes
the base fiscal year.
3. "Cumulative earnings factor as of June thirtieth, nineteen hundred
eighty-eight". (a) An amount, expressed as a positive or negative
quantity, as the case may be, which shall be determined in accordance
with the method set forth in subparagraph (b) of this paragraph three.
(b) (i) The cumulative earnings differential for the base fiscal year
(as defined in paragraph eleven of subdivision a of section 13-232 of
this subchapter), as applicable to the nineteen hundred
eighty-seven--nineteen hundred eighty-eight base fiscal year (as so
defined) shall be computed pursuant to the provisions of such section
13-232.
(ii) The cumulative distributions of transferable earnings for prior
base fiscal years (as defined in paragraph thirteen of subdivision a of
such section 13-232) shall be computed pursuant to such section 13-232
with respect to such nineteen hundred eighty-seven--nineteen hundred
eighty-eight base fiscal year.
(iii) The amount of transferable earnings (as defined in paragraph
twelve of subdivision a of such section 13-232), if any, for the
nineteen hundred eighty-seven--nineteen hundred eighty-eight base fiscal
year, determined pursuant to such section 13-232, shall be added to the
cumulative distributions of transferable earnings computed pursuant to
item (ii) of this subparagraph (b).
(iv) The sum resulting from the addition prescribed by item (iii) of
this subparagraph (b) shall be subtracted from the amount computed
pursuant to item (i) of this subparagraph. The remainder resulting from
the subtraction shall be the cumulative earnings factor as of June
thirtieth, nineteen hundred eighty-eight.
4. "Earnings differential". The amount (expressed as a positive or
negative quantity) by which the equity experience factor (expressed as a
positive or negative quantity) with respect to the base fiscal year
differs from the hypothetical fixed income securities earnings with
respect to the base fiscal year. If such equity experience factor is
greater than such hypothetical fixed income securities earnings, the
difference between the two shall be expressed as a positive quantity. If
such hypothetical fixed income securities earnings are greater than such
equity experience factor, the difference between the two shall be
expressed as a negative quantity.
5. "Cumulative earnings factor". (a) The cumulative earnings factor
for any base fiscal year shall be determined as follows:
(i) If the cumulative earnings factor for the immediately preceding
base fiscal year was a positive quantity, the cumulative earnings factor
for the base fiscal year shall be equal to the earnings differential for
the base fiscal year.
(ii) If the cumulative earnings factor for the immediately preceding
base fiscal year was a negative quantity, the cumulative earnings factor
for the base fiscal year shall be equal to the sum of:
(A) the earnings differential for the base fiscal year; and
(B) the cumulative earnings factor for the immediately preceding base
fiscal year, increased with interest at a rate equal to the assumed rate
of interest fixed with respect to such base fiscal year pursuant to the
provisions of paragraph eight of subdivision a of section 13-232 of this
subchapter, as made applicable to this section 13-232.1 by subdivision a
hereof.
(b) In applying the provisions of this paragraph five for the base
fiscal year nineteen hundred eighty-eight -- nineteen hundred
eighty-nine, the term defined in paragraph three of this subdivision b
as "cumulative earnings factor as of June thirtieth, nineteen hundred
eighty-eight" shall be substituted for the term "cumulative earnings
factor for the immediately preceding base fiscal year".
6. "POVSF cumulative earnings factor". With respect to any base fiscal
year, the amount obtained by multiplying the cumulative earnings factor
for such base fiscal year by a fraction, the numerator of which shall be
the total contributions made to the police pension fund, subchapter two,
with respect to such base fiscal year on behalf of all members of the
uniformed force of the police department who are police officers, as of
the last day of such base fiscal year, and the denominator of which
shall be the total contributions made to such police pension fund with
respect to such base fiscal year on behalf of all persons who are
members of the uniformed force of the police department as of the last
day of such base fiscal year.
7. "POVSF unfunded accrued liability". In any case where the valuation
of assets and liabilities of the police officer's variable supplements
fund by the actuary pursuant to subdivision e of section 13-270 of this
chapter shows that for any base fiscal year, such liabilities exceed
such assets, the term "POVSF unfunded accrued liability" shall mean the
amount of the excess of such liabilities over the amount of such assets
for such base fiscal year.
8. "Police officer". A member of either this pension fund or the
police pension fund provided for in subchapter one of this chapter who,
at the time of retirement for service, was not a police superior officer
as defined in subdivision four of section 13-278 of this chapter.
c. As soon as practicable after the close of each base fiscal year,
but not later than December thirty-first of the current fiscal year, the
board shall compute the POVSF cumulative earnings factor with respect to
such base fiscal year.
d. If the POVSF cumulative earnings factor for such base fiscal year
is a positive quantity, the pension fund, on or before December
thirty-first of the current fiscal year, shall pay from its contingent
reserve fund to the police officer's variable supplements fund, as the
payment due for such base fiscal year under this section, an amount
determined pursuant to the provisions of subdivision e of this section.
e. The amount payable for such base fiscal year as provided for in
subdivision d of this section shall be the lesser of (1) the POVSF
cumulative earnings factor for such base fiscal year referred to in such
subdivision d or (2) the liability POVSF unfunded accrued liability for
such base fiscal year.
f. No amount shall be due from or payable by the pension fund to such
variable supplements fund under this section for any base fiscal year
which shall exceed the POVSF unfunded accrued liability for such base
fiscal year, regardless of the amount and character of the POVSF
cumulative earnings factor for such base fiscal year.
g. The comptroller shall furnish to the board such information and
data as it may request for the purpose of carrying out the provisions of
this section.
Section 13-232.2
§ 13-232.2 Payments to police superior officers' variable supplements
fund for base fiscal years included in the period commencing on July
first, nineteen hundred eighty-eight and ending on June thirtieth,
nineteen hundred ninety-two.
a. For the purposes of this section, the definitions of terms set
forth in paragraphs two, four, six, eight, nine and ten of subdivision a
of section 13-232 of this subchapter shall apply to this section
13-232.2 with the same force and effect as if such definitions were
specifically set forth in this section.
b. For the purposes of this section, the following terms shall mean
and include:
1. "Base fiscal year". Any fiscal year of the city included in the
period beginning on July first, nineteen hundred eighty-eight and ending
on June thirtieth, nineteen hundred ninety-two.
2. "Prior base fiscal year". Any fiscal year of the city which begins
on or after July first, nineteen hundred eighty-eight and which precedes
the base fiscal year.
3. "Cumulative earnings factor as of June thirtieth, nineteen hundred
eighty-eight". (a) An amount, expressed as a positive or negative
quantity, as the case may be, which shall be determined in accordance
with the method set forth in subparagraph (b) of this paragraph three.
(b) (i) The cumulative earnings differential for the base fiscal year
(as defined in paragraph eleven of subdivision a of section 13-232 of
this subchapter), as applicable to the nineteen hundred
eighty-seven--nineteen hundred eighty-eight base fiscal year (as so
defined) shall be computed pursuant to the provisions of such section
13-232.
(ii) The cumulative distributions of transferable earnings for prior
base fiscal years (as defined in paragraph thirteen of subdivision a of
such section 13-232) shall be computed pursuant to such section 13-232
with respect to such nineteen hundred eighty-seven--nineteen hundred
eighty-eight base fiscal year.
(iii) The amount of transferable earnings (as defined in paragraph
twelve of subdivision a of such section 13-232), if any, for the
nineteen hundred eighty-seven--nineteen hundred eighty-eight base fiscal
year, determined pursuant to such section 13-232, shall be added to the
cumulative distributions of transferable earnings computed pursuant to
item (ii) of this subparagraph (b).
(iv) The sum resulting from the addition prescribed by item (iii) of
this subparagraph (b) shall be subtracted from the amount computed
pursuant to item (i) of this subparagraph.
(v) The remainder resulting from the subtraction shall be the
cumulative earnings factor as of June thirtieth, nineteen hundred
eighty-eight.
4. "Equity experience factor". (a) An amount (expressed as a positive
or negative quantity) which shall be determined for each base fiscal
year in accordance with the method of computation set forth in the
succeeding subparagraphs of this paragraph four.
(b) The amount of income earned by the pension fund during the base
fiscal year from its investment in equities shall be computed.
(c) To each such amount of income for a base fiscal year there shall
be added the capital gains, realized and unrealized, occurring during
such base fiscal year by reason of such investments.
(d) From the sum resulting from the addition prescribed by
subparagraph (c) of this paragraph there shall be subtracted the capital
losses, realized or unrealized, occurring during such base fiscal year
by reason of such investment.
(e) In the event that any equity is sold during the base fiscal year,
the expense of such sale, including but not limited to broker's
commissions, shall be deducted from capital gain or added to capital
loss, in determining whether such sale produced a capital gain or a
capital loss and the amount thereof.
(f) (i) With respect to base fiscal years occurring during the period
beginning on July first, nineteen hundred eighty-eight and ending on
June thirtieth, nineteen hundred ninety, the remainder resulting from
the subtraction prescribed by subparagraph (d) of this paragraph shall
be adjusted so that it equals the amount which it would have been in the
absence of the enactment of chapter two hundred forty-seven of the laws
of nineteen hundred eighty-eight and chapter five hundred eighty-one of
the laws of nineteen hundred eighty-nine.
(ii) With respect to each base fiscal year included in the period
beginning on July first, nineteen hundred ninety and ending on June
thirtieth, nineteen hundred ninety-two, the remainder resulting from the
subtraction prescribed by subparagraph (d) of this paragraph shall be
adjusted so that it equals the amount which it would have been in the
absence of the enactment of chapter two hundred forty-seven of the laws
of nineteen hundred eighty-eight.
(iii) For the purpose of determining the entitlement, with respect to
any base fiscal year included in the period beginning on July first,
nineteen hundred ninety and ending on June thirtieth, nineteen hundred
ninety-two, of the police superior officers' variable supplements fund
to receive payment of any sum from the pension fund pursuant to this
section, the cumulative earnings factor for such base fiscal year shall
be calculated in the same manner as if (A) that part of this
subparagraph, which part, prior to July twenty-sixth, nineteen hundred
ninety-one, referred to chapter five hundred eighty-one of the laws of
nineteen hundred eighty-nine, had never been enacted and (B) items (ii)
and (iii) of this subparagraph, as such items were in effect prior to
July twenty-sixth, nineteen hundred ninety-one, had never been enacted.
(g) Any adjustment required to be made pursuant to the provisions of
subparagraph (f) of this paragraph shall be computed pursuant to a
scientific method recommended to the board by the actuary and approved
by the board; provided that if the board is unable to approve, by the
required majority vote, any such formula recommended by the actuary,
such adjustment shall be computed pursuant to a scientific formula
recommended by the actuary and approved by an arbitrator designated
pursuant to the procedure set forth in subparagraph (b) of paragraph
eight of subdivision a of section 13-232 of this subchapter.
(h) The equity experience factor for such base fiscal year shall be
the amount remaining after the adjustment prescribed by subparagraphs
(f) and (g) of this paragraph has been made.
5. "Hypothetical fixed income securities earnings". (a) The aggregate
of the hypothetical interest yields computed pursuant to subparagraphs
(b), (c) and (d) of this paragraph five.
(b) The board shall compute with respect to each investment made or
maintained by the pension fund in an equity during the base fiscal year,
the amount of interest which would have been hypothetically earned
during such fiscal year, under the methods of calculation prescribed in
this paragraph five, if an amount equal to such investment had instead
been hypothetically invested in fixed income securities and such
securities had been held by such fund for a period (in the base fiscal
year) co-extensive with the period during which such equity was held by
such fund in the base fiscal year.
(c) For the purposes of this section, the amount of any such
investment in an equity during the base fiscal year shall be deemed to
be:
(i) the market value of the equity on the first day of the base fiscal
year, in the case of any such equity acquired by the pension fund prior
to the commencement of such fiscal year and held by such fund on the
first day of such fiscal year; and
(ii) the total amount paid by such fund to acquire the equity,
including but not limited to broker's commissions and other expenses of
such acquisition, in the case of any such equity which is acquired by
such fund during the base fiscal year.
(d) For the purposes of this section, the amount of interest which
would have been earned by the pension fund on such hypothetical fixed
income securities during the base fiscal year shall be deemed to be the
amount obtained:
(i) by multiplying the amount of the investment in such equity,
determined as prescribed by subparagraph (c) of this paragraph five, by
the assumed rate of interest for the base fiscal year; and
(ii) by prorating the interest so computed, in any case where the
investment in such equity was maintained by the pension fund for a part
of the base fiscal year; and
(iii) by multiplying the amount of interest computed for the full base
fiscal year pursuant to items (i) and (ii) of this subparagraph by a
fraction, the numerator of which is the amount designated as the equity
experience factor with respect to such base fiscal year by subparagraph
(h) of paragraph four of this subdivision b and the denominator of which
is the remainder produced by the subtraction prescribed by subparagraph
(d) of such paragraph four with respect to such base fiscal year; and
(iv) by adding together the products of all such multiplications
performed pursuant to item (iii) of this subparagraph in relation to all
such equities held by the pension fund during such fiscal year.
6. "Cumulative earnings factor". (a) The cumulative earnings factor
for any base fiscal year shall be determined as follows:
(i) If the cumulative earnings factor for the immediately preceding
base fiscal year was a positive quantity, the cumulative earnings factor
for the base fiscal year shall be equal to the earnings differential for
the base fiscal year.
(ii) If the cumulative earnings factor for the immediately preceding
base fiscal year was a negative quantity, the cumulative earnings factor
for the base fiscal year shall be equal to the sum of:
(A) the earnings differential for the base fiscal year; and
(B) the cumulative earnings factor for the immediately preceding base
fiscal year.
(b) In applying the provisions of this subdivision six for the base
fiscal year nineteen hundred eighty-eight -- nineteen hundred
eighty-nine, the term defined in paragraph three of this subdivision b
as "cumulative earnings factor as of June thirtieth, nineteen hundred
eighty-eight" shall be substituted for the term "cumulative earnings
factor for the immediately preceding base fiscal year".
7. "PSOVSF cumulative earnings factor". With respect to any base
fiscal year, the amount obtained by multiplying the cumulative earnings
factor for such base fiscal year by a fraction, the numerator of which
shall be the total contributions made to the pension fund with respect
to such base fiscal year on behalf of all members of the uniformed force
of the police department who are police superior officers, as of the
last day of such base fiscal year, and the denominator of which shall be
the total contributions made to the pension fund with respect to such
base fiscal year on behalf of all persons who are members of the
uniformed force of the police department as of the last day of such base
fiscal year.
8. "Police superior officers". Members of the uniformed force of the
police department who (a) hold the position of sergeant or any position
of higher rank in such force, or (b) are detectives.
9. "Police superior officers' variable supplements fund". The police
superior officers' variable supplements fund established by subchapter
four of this chapter.
c. As soon as practicable after the close of each base fiscal year,
but not later than August thirty-first of the current fiscal year, the
board shall compute the PSOVSF cumulative earnings factor with respect
to such base fiscal year.
d. If the PSOVSF cumulative earnings factor for the base fiscal year
is a positive quantity, the pension fund, on or before August
thirty-first of the current fiscal year, shall pay from its contingent
reserve fund to the police superior officers' variable supplements fund
a sum equal to the amount of such factor.
e. The comptroller shall furnish to the board such information and
data as it may request for the purpose of carrying out the provisions of
this section.
Section 13-232.3
§ 13-232.3 Payments to police superior officers' variable supplements
fund for base fiscal years commencing on or after July first, nineteen
hundred ninety-two. a. For the purposes of this section, the definitions
of terms set forth in paragraphs two, five, six, seven, eight and
fifteen of subdivision a of section 13-232 of this subchapter shall
apply to this section 13-232.3 with the same force and effect as if such
definitions were specifically set forth in this section.
b. For the purposes of this section, the following terms shall mean
and include:
(1) "Base fiscal year". Any fiscal year of the city beginning on or
after July first, nineteen hundred ninety-two.
(2) "Prior base fiscal year". Any fiscal year of the city which begins
on or after July first, nineteen hundred ninety-two and which precedes
the base fiscal year.
(3) "Cumulative earnings factor as of June thirtieth, nineteen hundred
ninety-two". An amount, expressed as a positive or negative quantity, as
the case may be, which shall be equal to the cumulative earnings factor
for the nineteen hundred ninety-one--nineteen hundred ninety-two base
fiscal year computed pursuant to section 13-232.2 of this subchapter.
(4) "Earnings differential". The amount (expressed as a positive and
negative quantity) by which the equity experience factor (expressed as a
positive or negative quantity) with respect to the base fiscal year
differs from the hypothetical fixed income securities earnings with
respect to the base fiscal year. If such equity experience factor is
greater then such hypothetical fixed income securities earnings, the
difference between the two shall be expressed as a positive quantity. If
such hypothetical fixed income securities earnings are greater then such
equity experience factor, the difference between the two shall be
expressed as a negative quantity.
(5) "Cumulative earnings factor". (a) The cumulative earnings factor
for any base fiscal year shall be determined as follows:
(i) If the cumulative earnings factor for the immediately preceding
base fiscal year was a positive quantity, the cumulative earnings factor
for the base fiscal year shall be equal to the earnings differential for
the base fiscal year.
(ii) If the cumulative earnings factor for the immediately preceding
base fiscal year was a negative quantity, the cumulative earnings factor
for the base fiscal year shall be equal to the sum of:
(A) the earnings differential for the base fiscal year; and
(B) the cumulative earnings factor for the immediately preceding base
fiscal year, increased with interest at a rate equal to the assumed rate
of interest fixed with respect to such base fiscal year pursuant to the
provisions of paragraph eight of subdivision a of section 13-232 of this
subchapter, as made applicable to this section 13-232.3 by subdivision a
hereof.
(b) In applying the provisions of this paragraph five for the base
fiscal year nineteen hundred ninety-two--nineteen hundred ninety-three,
the term defined in paragraph three of this subdivision b as "cumulative
earnings factor as of June thirtieth, nineteen hundred ninety-two" shall
be substituted for the term "cumulative earnings factor for the
immediately preceding base fiscal year".
(6) "PSOVSF cumulative earnings factor". With respect to any base
fiscal year, the amount obtained by multiplying the cumulative earnings
factor for such base fiscal year by a fraction, the numerator of which
shall be the total contributions made to the pension fund with respect
to such base fiscal year on behalf of all members of the uniformed force
of the police department who are police superior officers, as of the
last day of such base fiscal year, and the denominator of which shall be
the total contributions made to the pension fund with respect to such
base fiscal year on behalf of all persons who are members of the
uniformed force of the police department as of the last day of such base
fiscal year.
(7) "PSOVSF unfunded accrued liability". In any case where the
valuation of assets and liabilities of the police superior officers'
variable supplements fund by the actuary pursuant to subdivision e of
section 13-280 of this chapter shows that for any base fiscal year, such
liabilities exceed such assets, the term "PSOVSF unfunded accrued
liability" shall mean the amount of the excess of such liabilities over
the amount of such assets for such base fiscal year.
(8) "Police superior officers". Members of the uniformed force of the
police department who (a) hold the position of sergeant or any position
of higher rank in such force, or (b) are detectives.
c. As soon as practicable after the close of each base fiscal year,
but not later than December thirty-first of the current fiscal year, the
board shall compute the PSOVSF cumulative earnings factor with respect
to such base fiscal year.
d. If the PSOVSF cumulative earnings factor for such base fiscal year
is a positive quantity, the pension fund, on or before December
thirty-first of the current fiscal year, shall pay from its contingent
reserve fund to the police superior officers' variable supplements fund,
as the payment due for such base fiscal year under this section, an
amount determined pursuant to the provisions of subdivision e of this
section.
e. The amount payable for such base fiscal year as provided for in
subdivision d of this section shall be the lesser of (1) the PSOVSF
cumulative earnings factor for such base fiscal year referred to in such
subdivision d or (2) the PSOVSF unfunded accrued liability for such base
fiscal year.
f. No amount shall be due from or payable by the pension fund to such
variable supplements fund under this section for any base fiscal year
which shall exceed the PSOVSF unfunded accrued liability for such base
fiscal year, regardless of the amount and character of the PSOVSF
cumulative earnings factor for such base fiscal year.
g. The comptroller shall furnish to the board such information and
data as it may request for the purpose of carrying out the provisions of
this section.
Section 13-233
§ 13-233 Trustees of funds; investments. a. The members of the board
shall be the trustees of the several funds provided for by this
subchapter, and shall have full power to invest the same, subject to the
terms, conditions, limitations and restrictions imposed by law upon
savings banks in the making and disposing of investments by savings
banks; and, subject to like terms, conditions, limitations and
restrictions, such trustees shall have full power to hold, purchase,
sell, assign, transfer or dispose of any of the securities or
investments in which any of the funds provided for by this subchapter
shall have been invested as well as of the proceeds of such investments
and of any moneys belonging to such funds.
b. Notwithstanding the provisions of subdivision two of section one
hundred seventy-seven of the retirement and social security law, or any
other provision of law to the contrary, the amounts which may be
invested by the pension fund in securities pursuant to the provisions of
paragraphs (a), (b), (c), (d), (e) and (f) of subdivision twenty-six of
section two hundred thirty-five of the banking law, shall be subject to
the following maximum limits, in lieu of any such limits imposed by any
other provision of law:
(1) Not more than fifty per cent of the assets of the pension fund
shall be invested in such securities; and
(2) Not more than five per cent of such assets shall be invested in
the securities of any one corporation and its subsidiaries; and
(3) Not more than two per cent of the total issued and outstanding
equity securities of any one corporation shall be owned by the pension
fund.
Section 13-234
§ 13-234 Allowance of interest. a. Such board shall annually allow
regular interest on the mean amount for the preceding year in each of
the funds provided for in accordance with the provisions of this
chapter. The amount so allowed shall be due and payable to such funds,
and shall be annually credited thereto by such board.
b. The investment earnings of the retirement system shall be
determined for the calendar year nineteen hundred sixty-four. To the
extent that such earnings are in excess of the amount allowed as regular
interest for calendar year nineteen hundred sixty-four, the board shall
declare a rate of special interest, expressed to the lower one-tenth of
one per centum, but not to exceed one per centum, to be determined by
the amount by which the investment earnings exceed the amount required
for the allowance of regular interest divided by the aggregate mean
amount for the calendar year nineteen hundred sixty-four in the annuity
savings funds of members who are allowed regular interest at three per
centum per annum for calendar year nineteen hundred sixty-four. Special
interest, as determined by multiplying said special interest rate by the
mean amount for the calendar year nineteen hundred sixty-four in the
individual annuity savings funds of persons who are allowed regular
interest at three per centum per annum for calendar year nineteen
hundred sixty-four, shall be credited as of December thirty-first
nineteen hundred sixty-four to the individual annuity savings funds of
persons who are members, with a balance, after adjustment, as of June
thirtieth, nineteen hundred sixty-five and who are allowed regular
interest at the rate of three per centum per annum for calendar year
nineteen hundred sixty-four.
For members who are allowed regular interest at three per centum for
calendar year nineteen hundred sixty-four and who do not have a balance,
after adjustment, in their annuity savings funds as of June thirtieth,
nineteen hundred sixty-five, a payment shall be made equal to the amount
of special interest which would have been credited as of December
thirty-first, nineteen hundred sixty-four had they had a balance in
their annuity savings funds as of June thirtieth, nineteen hundred
sixty-five, provided that the sum of said special interest and any
additional interest to be paid pursuant to subdivision c hereof is ten
dollars or more. Special interest shall not be considered in determining
rates of contribution of members.
c. If the full one per centum of special interest has been allowed,
then to the extent that the amount of said earnings exceeds the amount
allowed as regular interest and the amount allowed or paid as special
interest, the board shall declare a rate of additional interest,
expressed to the lower one-tenth of one per centum, but not to exceed
one per centum, to be determined by the amount by which the investment
earnings exceed the sum of the allowance of regular interest and the
allowance and payment of special interest divided by the aggregate mean
amount for calendar year nineteen hundred sixty-four which would be the
reserve-for-increased-take-home-pay of all members to whom special
interest is credited or paid pursuant to paragraph b hereof. In
determining the reserve-for-increased-take-home-pay of any member to
whom special interest is credited pursuant to paragraph b hereof
additional interest, as determined by multiplying said additional
interest rate by the mean amount for calendar year nineteen hundred
sixty-four which would be said member's
reserve-for-increased-take-home-pay shall be included. However, for
members who are allowed regular interest at three per centum per annum
for calendar year nineteen hundred sixty-four and who retire or die
prior to June thirtieth, nineteen hundred sixty-five, the amount of
additional interest for calendar year nineteen hundred sixty-four shall
not be included in the retirement allowance, but shall be paid in a
single payment provided that the sum of said additional interest and any
special interest to be paid pursuant to paragraph b hereof is ten
dollars or more. Additional interest shall not be considered in
determining rates of contribution of members.
d. The investment earnings of the retirement system shall be
determined for the calendar year nineteen hundred sixty-five. To the
extent that such earnings are in excess of the amount allowed as regular
interest for calendar year nineteen hundred sixty-five, the board shall
declare a rate of special interest, expressed to the lower one-tenth of
one per centum, but not to exceed one per centum, to be determined by
the amount by which the investment earnings exceed the amount required
for the allowance of regular interest divided by the aggregate mean
amount for the calendar year nineteen hundred sixty-five in the annuity
savings funds of members who are allowed regular interest at three per
centum per annum for calendar year nineteen hundred sixty-five. Special
interest, as determined by multiplying said special interest rate by the
mean amount for the calendar year nineteen hundred sixty-five in the
individual annuity savings funds of persons who are allowed regular
interest at three per centum per annum for calendar year nineteen
hundred sixty-five, shall be credited as of December thirty-first,
nineteen hundred sixty-five to the individual annuity savings funds of
persons who are members, with a balance, after adjustment, as of June
thirtieth, nineteen hundred sixty-six and who are allowed regular
interest at the rate of three per centum per annum for calendar year
nineteen hundred sixty-five.
For members who are allowed regular interest at three per centum for
calendar year nineteen hundred sixty-five and who do not have a balance,
after adjustment, in their annuity savings funds as of June thirtieth,
nineteen hundred sixty-six, a payment shall be made equal to the amount
of special interest which would have been credited as of December
thirty-first, nineteen hundred sixty-five had they had a balance in
their annuity savings funds as of June thirtieth, nineteen hundred
sixty-six, provided that the sum of said special interest and any
additional interest to be paid pursuant to subdivision e hereof is ten
dollars or more. Special interest shall not be considered in determining
rates of contribution of members.
e. If the full one per centum of special interest has been allowed,
then to the extent that the amount of said earnings exceeds the amount
allowed as regular interest and the amount allowed or paid as special
interest, the board shall declare a rate of additional interest,
expressed to the lower one-tenth of one per centum, but not to exceed
one per centum, to be determined by the amount by which the investment
earnings exceed the sum of the allowance of regular interest and the
allowance and payment of special interest divided by the aggregate mean
amount for calendar year nineteen hundred sixty-five which would be the
reserve-for-increased-take-home-pay of all members to whom special
interest is credited or paid pursuant to subdivision d hereof. In
determining the reserve-for-increased-take-home-pay of any member to
whom special interest is credited pursuant to subdivision d hereof,
additional interest as determined by multiplying said additional
interest rate by the mean amount for calendar year nineteen hundred
sixty-five which would be said member's
reserve-for-increased-take-home-pay shall be included. However, for
members who are allowed regular interest at three per centum per annum
for calendar year nineteen hundred sixty-five and who retire or die
prior to June thirtieth, nineteen hundred sixty-six, the amount of
additional interest for calendar year nineteen hundred sixty-five shall
not be included in the retirement allowance, but shall be paid in a
single payment provided that the sum of said additional interest and any
special interest to be paid pursuant to subdivision d hereof is ten
dollars or more. Additional interest shall not be considered in
determining rates of contribution of members.
f. The investment earnings of the retirement system shall be
determined for the calendar year nineteen hundred sixty-six. To the
extent that such earnings are in excess of the amount allowed as regular
interest for calendar year nineteen hundred sixty-six, the board shall
declare a rate of special interest, expressed to the lower one-tenth of
one per centum, but not to exceed one per centum, to be determined by
the amount by which the investment earnings exceed the amount required
for the allowance of regular interest divided by the aggregate mean
amount for the calendar year nineteen hundred sixty-six in the annuity
savings funds of members who are allowed regular interest at three per
centum per annum for calendar year nineteen hundred sixty-six. Special
interest, as determined by multiplying said special interest rate by the
mean amount for the calendar year nineteen hundred sixty-six in the
individual annuity savings funds of persons who are allowed regular
interest at three per centum per annum for calendar year nineteen
hundred sixty-six, shall be credited as of December thirty-first,
nineteen hundred sixty-six to the individual annuity savings funds of
persons who are members, with a balance, after adjustment, as of June
thirtieth, nineteen hundred sixty-seven and who are allowed regular
interest at the rate of three per centum per annum for calendar year
nineteen hundred sixty-six.
For members who are allowed regular interest at three per centum for
calendar year nineteen hundred sixty-six and who do not have a balance,
after adjustment, in their annuity savings funds as of June thirtieth,
nineteen hundred sixty-seven, a payment shall be made equal to the
amount of special interest which would have been credited as of December
thirty-first nineteen hundred sixty-six had they had a balance in their
annuity savings funds as of June thirtieth, nineteen hundred
sixty-seven, provided that the sum of said special interest and any
additional interest to be paid pursuant to subdivision g hereof is ten
dollars or more. Special interest shall not be considered in determining
rates of contribution of members.
g. If the full one per centum of special interest has been allowed,
then to the extent that the amount of said earnings exceeds the amount
allowed as regular interest and the amount allowed or paid as special
interest, the board shall declare a rate of additional interest,
expressed to the lower one-tenth of one per centum, but not to exceed
one per centum, to be determined by the amount by which the investment
earnings exceed the sum of the allowance of regular interest and the
allowance and payment of special interest divided by the aggregate mean
amount for the calendar year nineteen hundred sixty-six which would be
the reserve-for-increased-take-home-pay of all members to whom special
interest is credited or paid pursuant to subdivision f hereof. In
determining the reserve-for-increased-take-home-pay of any member to
whom special interest is credited pursuant to subdivision f hereof,
additional interest as determined by multiplying said additional
interest rate by the mean amount for calendar year nineteen hundred
sixty-six which would be said member's
reserve-for-increased-take-home-pay shall be included. However, for
members who are allowed regular interest at three per centum per annum
for calendar year nineteen hundred sixty-six and who retire or die prior
to June thirtieth, nineteen hundred sixty-seven, the amount of
additional interest for calendar year nineteen hundred sixty-six shall
not be included in the retirement allowance, but shall be paid in a
single payment provided that the sum of said additional interest and any
special interest to be paid pursuant to subdivision f hereof is ten
dollars or more. Additional interest shall not be considered in
determining rates of contribution of members.
h. (1) During the period commencing on July first, nineteen hundred
seventy-seven and ending on June thirtieth, nineteen hundred eighty,
special interest at the rate of one and one-half per centum per annum,
compounded annually, shall be allowed with respect to the individual
account of each member in the annuity savings fund.
(2) Subject to the provisions of subdivision j of this section, during
the period commencing on July first, nineteen hundred eighty and ending
on June thirtieth, nineteen hundred eighty-two, special interest at the
rate of three and one-half per centum per annum, compounded annually,
shall be allowed with respect to the individual account of each member
in the annuity savings fund.
(3) * (a) Subject to the provisions of subdivision j of this section,
during the period commencing on July first, nineteen hundred eighty-two
and ending on July thirty-first, nineteen hundred eighty-three, special
interest at the rate of four per centum per annum, compounded annually,
shall be allowed with respect to the individual account of each member
in the annuity savings fund.
* NB Amended Ch. 910/85 § 29, language juxtaposed per Ch. 907/85 § 14
* (b) Subject to the provisions of subdivision j of this section,
during the period commencing on August first, nineteen hundred
eighty-three and ending on June thirtieth, nineteen hundred eighty-five,
special interest at the rate of one per centum per annum, compounded
annually, shall be allowed with respect to the individual account of
each member in the annuity savings fund.
* NB Added Ch. 910/85 § 29, language juxtaposed per Ch. 907/85 § 14
(c) Subject to the provisions of subdivision j of this section, during
the period commencing on July first, nineteen hundred eighty-five and
ending on June thirtieth, nineteen hundred eighty-eight, special
interest at the rate of one per centum per annum, compounded annually,
shall be allowed with respect to the individual account of each member
in the annuity savings fund.
(d) Subject to the provisions of subdivision j of this section, during
the period commencing on July first, nineteen hundred eighty-eight and
ending on June thirtieth, nineteen hundred ninety, special interest at
the rate of one and one-quarter per centum per annum, compounded
annually, shall be allowed with respect to the individual account of
each member in the annuity savings fund.
(4) Such special interest provided for by paragraphs (1), (2) and (3)
of this subdivision shall be credited to such individual account of each
member entitled thereto in the same manner and at the same time as
regular interest is required to be credited to such account with respect
to the same period of time. Such special interest shall not be
considered in determining rates of contributions of members. Nothing
contained in this subdivision h shall be construed as applicable to any
member who is subject to the provisions of article fourteen of the
retirement and social security law.
i. (1) Subject to the provisions of subdivision j of this section, in
determining the reserve-for-increased-take-home-pay of each member
entitled to such a reserve, additional interest at the rate of one and
one-half per centum per annum compounded annually shall be included for
each city fiscal year occurring during the period beginning on July
first, nineteen hundred seventy-seven and ending on June thirtieth,
nineteen hundred eighty.
(2) Subject to the provisions of subdivision j of this section, in
determining the reserve-for-increased-take-home-pay of each member
entitled to such a reserve, additional interest at the rate of three and
one-half per centum per annum compounded annually shall be included for
each city fiscal year occurring during the period beginning on July
first, nineteen hundred eighty and ending on June thirtieth, nineteen
hundred eighty-two.
(3) * (a) Subject to the provisions of subdivision j of this section,
in determining the reserve-for-increased-take-home-pay of each member
entitled to such a reserve, additional interest at the rate of four per
centum per annum compounded annually shall be included for each city
fiscal year and portion thereof occurring during the period beginning on
July first, nineteen hundred eighty-two and ending on July thirty-first,
nineteen hundred eighty-three.
* NB Amended Ch. 910/85 § 30, language juxtaposed per Ch. 907/85 § 14
* (b) Subject to the provisions of subdivision j of this section, in
determining the reserve-for-increased-take-home-pay of each member
entitled to such a reserve, additional interest at the rate of one per
centum per annum compounded annually shall be included for each city
fiscal year and portion thereof occurring during the period beginning on
August first, nineteen hundred eighty-three and ending on June
thirtieth, nineteen hundred eighty-five.
* NB Added Ch. 910/85 § 30, language juxtaposed per Ch. 907/85 § 14
(c) Subject to the provisions of subdivision j of this section, in
determining the reserve-for-increased-take-home-pay of each member
entitled to such a reserve, additional interest at the rate of one per
centum per annum, compounded annually, shall be included for each city
fiscal year occurring during the period beginning on July first,
nineteen hundred eighty-five and ending on June thirtieth, nineteen
hundred eighty-eight.
(d) Subject to the provisions of subdivision j of this section, in
determining the reserve-for-increased-take-home-pay of each member
entitled to such a reserve, additional interest at the rate of one and
one-quarter per centum per annum, compounded annually, shall be included
for each city fiscal year occurring during the period beginning on July
first, nineteen hundred eighty-eight and ending on June thirtieth,
nineteen hundred ninety.
(4) Additional interest shall not be considered in determining rates
of contribution of members. Nothing contained in this subdivision shall
be construed as applicable to any member who is subject to the
provisions of article fourteen of the retirement and social security
law.
j. (1) The provisions of paragraph (2) of subdivision h of this
section and the provisions of paragraphs (1) and (2) of subdivision i of
this section, to the extent that any of such provisions grants special
or additional interest, as the case may be, for any period prior to July
thirty-first, nineteen hundred eighty-one, shall not apply to any person
who was not a member on such July thirty-first, and shall not apply to
any person to whom, on such July thirty-first, a deferred retirement
allowance or any part of such a retirement allowance was payable
pursuant to the provisions of section 13-256 of this subchapter. Nothing
contained in subdivisions h and i of this section shall be construed as
granting special or additional interest, as the case may be, to any
person with respect to any period wherein such person was not a member
entitled to be credited with regular interest for the same period or was
not a discontinued member entitled to be credited, as a discontinued
member, with regular interest for the same period.
(2) (a) The provisions of subparagraph (a) of paragraph (3) of
subdivision h of this section, to the extent that such subparagraph
grants special interest for any period prior to December sixteenth,
nineteen hundred eighty-two, and the provisions of subparagraph (a) of
paragraph (3) of subdivision 1 of this section, to the extent that such
subparagraph grants additional interest for any period prior to such
date, shall not apply to any person who was not a member on such date
and shall not apply to any person to whom, on such date, a deferred
retirement allowance or any part of such a retirement allowance was
payable pursuant to the provisions of section 13-256 of this subchapter.
(b) The provisions of subparagraph (d) of paragraph (3) of subdivision
h of this section, to the extent that such subparagraph grants special
interest for any period prior to the date of enactment of this
subparagraph (b) of this paragraph (2) (as such date is certified
pursuant to section forty-one of the legislative law), and the
provisions of subparagraph (d) of paragraph (3) of subdivision 1 of this
section, to the extent that such subparagraph (d) grants additional
interest for any period prior to such date, shall not apply to any
person who was not a member on such date and shall not apply to any
person to whom, on such date, a deferred retirement allowance or any
part of such a retirement allowance was payable pursuant to the
provisions of section 13-256 of this subchapter.
k. (1) Subject to the provisions of paragraph (4) of this subdivision
k, in addition to regular interest annually allowed for the period from
July first, nineteen hundred seventy-seven to June thirtieth, nineteen
hundred eighty on the mean amount for the preceding year in each of the
funds provided for in accordance with the provisions of this subchapter,
there shall be annually allowed with respect to such period
supplementary interest at the rate of one and one-half per centum per
annum on such mean amount for the preceding year in each of such funds.
Such supplementary interest shall be annually credited to such funds at
the same time and in the same manner as regular interest was credited to
such funds with respect to such period.
(2) Subject to the provisions of paragraph (4) of this subdivision k,
in addition to regular interest annually allowed for the period from
July first, nineteen hundred eighty to June thirtieth, nineteen hundred
eighty-two on the mean amount for the preceding year in each of the
funds provided for in accordance with the provisions of this subchapter,
there shall be annually allowed with respect to such period
supplementary interest at the rate of three and one-half per centum per
annum on such mean amount for the preceding year in each of such funds.
Such supplementary interest shall be annually credited to such funds at
the same time and in the same manner as regular interest is credited to
such funds with respect to such period.
(3) * (a) Subject to the provisions of paragraph (4) of this
subdivision k, in addition to regular interest annually allowed for the
period from July first, nineteen hundred eighty-two to July
thirty-first, nineteen hundred eighty-three, on the mean amount for the
preceding year in each of the funds provided for in accordance with the
provisions of this subchapter, there shall be annually allowed with
respect to such period supplementary interest at the rate of four per
centum per annum on such mean amount for the preceding year in each of
such funds. Such supplementary interest shall be annually credited to
such funds at the same time and in the same manner as regular interest
is credited to such funds with respect to such period.
* NB Amended Ch. 910/85 § 31, language juxtaposed per Ch. 907/85 § 14
* (b) Subject to the provisions of paragraph four of this subdivision
k, in addition to regular interest annually allowed for the period from
August first, nineteen hundred eighty-three to June thirtieth, nineteen
hundred eighty-five, on the mean amount for the preceding year in each
of the funds provided for in accordance with the provisions of this
article, there shall be annually allowed with respect to such period
supplementary interest at the rate of one per centum per annum on such
mean amount for the preceding year in each of such funds. Such
supplementary interest shall be annually credited to such funds at the
same time and in the same manner as regular interest is credited to such
funds with respect to such period.
* NB Added Ch. 910/85 § 31, language juxtaposed per Ch. 907/85 § 14
(c) Subject to the provisions of paragraph (4) of this subdivision k,
in addition to regular interest annually allowed for the period from
July first, nineteen hundred eighty-five to June thirtieth, nineteen
hundred eighty-eight on the mean amount for the preceding year in each
of the funds provided for in accordance with the provisions of this
subchapter, there shall be annually allowed with respect to such period
supplementary interest at the rate of one per centum per annum on such
mean amount for the preceding year in each of such funds. Such
supplementary interest shall be annually credited to such funds at the
same time and in the same manner as regular interest is credited to such
funds with respect to such period.
(d) Subject to the provisions of paragraph (4) of this subdivision k,
in addition to regular interest annually allowed for the period from
July first, nineteen hundred eighty-eight to June thirtieth, nineteen
hundred ninety on the mean amount for the preceding year in each of the
funds provided for in accordance with the provisions of this subchapter,
there shall be annually allowed with respect to such period
supplementary interest at the rate of one and one-quarter per centum per
annum on such mean amount for the preceding year in each of such funds.
Such supplementary interest shall be annually credited to such funds at
the same time and in the same manner as regular interest is credited to
such funds with respect to such period.
(4) The provisions of paragraphs (1), (2) and (3) of this subdivision
k shall not apply to or affect (a) the allowance of interest on or the
crediting of interest to accounts of members or discontinued members in
the annuity savings fund or (b) the allowance of interest on or
crediting of interest to reserve-for-increased-take-home-pay of members
or discontinued members or (c) the determination of the amount of any
benefit payable to any member or beneficiary.
* l. On or after May first, nineteen hundred eighty-nine and not later
than October thirty-first of such year, the board shall submit to the
public officers and permanent commission referred to in paragraph (e) of
subdivision eight of section 13-214 of this subchapter the
recommendations of such board:
(1) as to whether legislation should be enacted providing for the
crediting of special interest to members after June thirtieth, nineteen
hundred ninety and if so, the recommended rate thereof and duration of
such crediting; and
(2) as to whether legislation should be enacted providing that in the
determination of reserves-for-increased-take-home-pay of members
entitled to such a reserve, additional interest shall be included for
any period after June thirtieth, nineteen hundred ninety, and if so, the
recommended rate thereof and the period as to which such interest should
be included; and
(3) as to whether legislation should be enacted providing for the
crediting of supplementary interest after June thirtieth, nineteen
hundred ninety to such funds to which subdivision k of this section is
applicable and if so, the recommended rate thereof and duration of such
crediting.
* NB Amended Ch. 911/85 § 39, language juxtaposed per Ch. 907/85 § 14
m. The allowance of special interest, additional interest and
supplementary interest, if any, with respect to any fiscal year of the
city beginning on or after July first, nineteen hundred ninety shall be
governed by the applicable provisions of section 13-638.2 of this title.
Section 13-235
§ 13-235 Custodian of funds. The comptroller shall be custodian of the
several funds provided for by this subchapter. Such funds, and all
moneys which shall form a part thereof, or which shall hereafter accrue
to them, shall be in his or her custody for the purposes of this
subchapter subject to the direction, control and approval of such board
as to disposition, investment, management and report.
Section 13-236
§ 13-236 Payments from funds. All payments from such funds shall be
made by such comptroller upon a voucher signed by the secretary of the
board.
Section 13-237
§ 13-237 Fund for current needs. For the purpose of meeting
disbursements for pensions,
pensions-providing-for-increased-take-home-pay, annuities and other
payments, there may be kept an available fund, not exceeding ten per
cent of the total amount in the several funds provided for by this
subchapter, on deposit in any bank in this state organized under the
laws thereof or under the laws of the United States, or in any trust
company incorporated by any law of this state, provided such bank or
trust company shall furnish adequate security for such fund, and further
provided that the sum deposited in any one bank or trust company shall
not exceed twenty-five per cent of the paid-up capital and surplus of
such bank or trust company.
Section 13-238
§ 13-238 Prohibition upon trustees and employees. Except as provided
in this subchapter, the trustees and employees assigned to the board are
prohibited from having any interest, directly or indirectly, in the
gains or profits of any investment of the pension fund or as such,
directly or indirectly, from receiving any pay or emolument for their
services. The trustees and such employees, directly or indirectly, for
themselves or as agents or partners of others, shall not borrow any of
its funds or deposits or in any manner use the same except to make such
current and necessary payments as are authorized by such board; nor
shall any such trustee or any such employee become an indorser or surety
or become in any manner an obligor for moneys loaned by or borrowed of
such pension fund.
Section 13-239
§ 13-239 Rules regulating loans to members. Any member who shall have
been a member continuously at least three years, may borrow from the
pension fund, subject to such rules and regulations as may be approved
by such board, an amount not exceeding ninety per centum of the amount
of his or her accumulated contributions provided that the amount so
borrowed together with interest thereon, can be repaid before attainment
of age sixty-three years by additional deductions of ten per centum from
his or her compensation made at the same time compensation is paid to
the member. The amount so borrowed together with regular interest
creditable to the account of the member on any unpaid balance thereof
shall be repaid to the pension fund in equal instalments by deduction
from the compensation of the member at the time the compensation is
paid, but such instalments shall be at least two per centum of the
member's earnable compensation and at least sufficient to repay before
attainment of age sixty-three years, the amount borrowed with interest
thereon. Notwithstanding anything to the contrary in this subchapter,
the additional deductions required to repay the loan shall be made, and
the interest paid on the loan shall be credited to the proper funds of
the pension fund. In lieu of loan, any member whose rate of contribution
is cancelled, may withdraw from his or her account and may restore
thereto in any year as he or she may elect any sum in excess of the
maximum in his or her annuity savings account and due thereto at the end
of the calendar year in which he or she became entitled to cancel his or
her rate. The actuarial equivalent of any unpaid balance of a loan at
the time any benefit may become payable shall be deducted from the
benefit otherwise payable except that each loan made pursuant to this
section shall be insured by the pension fund, without cost to the
member, against the death of such member in an amount up to but not
exceeding twenty-five thousand dollars as follows:
1. Until thirty days have elapsed after the making thereof, no part of
the loan shall be insured.
2. From the thirtieth through the fifty-ninth day after the making
thereof, twenty-five per centum of the present value of the outstanding
loan shall be insured.
3. From the sixtieth through the eighty-ninth day after the making
thereof, fifty per centum of the present value of the outstanding loan
shall be insured.
4. On and after the ninetieth day after the making thereof, all of the
present value of the outstanding loan shall be insured.
Upon the death of a member, the amount of insurance so payable shall
be credited to his or her accumulated contributions.
Section 13-240
§ 13-240 Termination of membership; discontinuance of service. Should
a member discontinue city-service except by death or retirement, he or
she shall be paid such part of the amount of the accumulated deductions
standing to the credit of his or her individual account in the annuity
savings fund as he or she shall demand. Such board, however, in its
discretion, may withhold for not more than one year after a member last
rendered city-service all or part of his or her accumulated deductions,
if after a previous discontinuance of service he or she withdrew from
the annuity savings fund all or part of the amount of his or her
accumulated deductions and failed to redeposit such withdrawn amount in
such fund.
Section 13-241
§ 13-241 Termination of membership; election to city, county or state
office. Should a member previously in city-service as a city official or
employee be elected a city, county or state official, he or she may on
application therefor and approval by the mayor, withdraw from the
pension fund, and upon such withdrawal, he or she shall be paid such
part of the amount of the accumulated deductions standing to the credit
of his or her individual account in the annuity savings fund as he or
she shall be entitled to receive.
Section 13-242
§ 13-242 Termination of membership; miscellaneous. Membership in the
pension fund shall cease upon the occurrence of any one of the following
conditions:
1. When the time out of city-service, other than time on a preferred
civil service list, of any member who has resigned or has been separated
from the service through no fault of his or her own, and who has total
service of less than twenty-five years, shall aggregate more than five
years in any period not exceeding ten consecutive years since he or she
last became a member.
2. When any member shall have withdrawn more than one-quarter of his
or her accumulated deductions.
3. When any member shall die.
4. When any member shall be retired on a pension.
5. When any member becomes eligible to participate in another pension
or retirement system supported in whole or in part by the city or state
of New York.
Section 13-243
§ 13-243 Death benefits; ordinary death benefits. a. Upon the death of
a member or of a former member, there shall be paid to his or her
estate, or to such person as he or she has nominated or shall nominate
by written designation duly executed and filed with such board during
the lifetime of the member:
1. His or her accumulated deductions; and, in addition thereto,
2. If such member is in city-service or is on a civil service
preferred eligible list by reason of city-service, unless a pension be
payable by the city under the provisions of section 13-244 of this
subchapter, an amount equal to the compensation earnable by him or her
while a member, during the six months immediately preceding his or her
death, and, if the total number of years in which allowable service was
rendered exceeds ten, then an amount equal to the compensation earnable
by him or her in city-service while a member during the twelve months
immediately preceding his or her death, and in addition, in either such
case, the reserve-for-increased-take-home-pay.
b. Until the first payment has been made on account of a retirement
benefit without optional selection of a member, such member may be
construed by such board to have been in city-service and the benefits
provided in this section may be paid in lieu of the retirement
allowance.
c. The member, or on the death of the member, the person nominated by
him or her to receive either his or her accumulated deductions, his or
her death benefit, together with the
reserve-for-increased-take-home-pay, or both, may provide by written
designation duly executed and filed with such board that the actuarial
equivalent of the benefit otherwise payable in a lump sum shall be paid
to the person designated in the form of an annuity payable in
installments not more often than once a month, the amount of such
annuity to be determined at the time of the member's death on the basis
of the age of the beneficiary at that time.
d. Notwithstanding the foregoing provisions of this section, and in
lieu of any lesser amount thereby prescribed, upon the death of a
member, prior to the first payment of a retirement benefit, who has
attained the minimum age or completed the minimum period of service, as
elected by him or her for retirement, and whether or not such member
shall have filed application for retirement, there shall be paid to his
or her estate, or to such person as he or she has nominated or shall
nominate by written designation duly executed and filed in accordance
with the requirements of this subchapter:
1. His or her accumulated deductions; and in addition thereto,
2. The amount of reserve equal to the present value of the pension he
or she would have received if he or she had retired and became entitled
to pension on the day immediately preceding his or her death.
The beneficiary of such deceased member shall have the right to accept
such benefits in lump sum or in such periodic payments, on an annuity
basis, as such beneficiary shall elect.
Section 13-244
§ 13-244 Death benefits; accidental death benefits. Upon the
accidental death of a member before retirement, provided that evidence
shall be submitted to such board proving that the death of such member
was the natural and proximate result of an accident sustained while a
member and while in the performance of duty at some definite time and
place and that such death was not the result of wilful negligence on his
or her part, his or her accumulated deductions shall be paid to his or
her estate, or to such persons as he or she has nominated or shall
nominate by written designation, duly acknowledged and filed with such
board. Upon application by or on behalf of the dependents of such
deceased member, such board shall grant a lump sum payment of the
reserve-for-increased-take-home-pay and, in addition thereto, a pension
of one-half of the final compensation of such employee, which pension
shall in no case be less than one-half of the full salary payable to a
first grade police officer on the date of death of such employee:
1. To his or her surviving spouse, to continue until the death of the
surviving spouse; or
2. If there be no surviving spouse, or if the surviving spouse dies
before any child of such deceased member shall have attained the age of
eighteen years, or if a student, before such child shall have attained
the age of twenty-three years, then to his or her child or children
under such age, divided in such manner as such board in its discretion
shall determine, to continue as a joint and survivor pension of one-half
of his or her final compensation until every such child dies or attains
such age; or
3. If there be no surviving spouse or child under the age of eighteen
years, or if a student, under the age of twenty-three years, surviving
such deceased member, then to his or her dependent father or mother, as
the deceased member shall have nominated by written designation duly
acknowledged and filed with such board; or, if there be no such
nomination, then to his or her dependent father or to his or her
dependent mother, as such board in its discretion shall direct, to
continue for life.
4. Notwithstanding any other provision of law to the contrary, and
solely for the purposes of this section, a member shall be deemed to
have died as the natural and proximate result of an accident sustained
in the performance of duty upon which his or her membership is based,
and not as a result of willful negligence on his or her part, provided
that such member was in active service upon which his or her membership
is based at the time that such member was ordered to active duty
pursuant to Title 10 of the United States Code, with the armed forces of
the United States or to service in the uniformed services pursuant to
Chapter 43 of Title 38 of the United States Code, and such member died
while on such active duty or service in the uniformed services on or
after June fourteenth, two thousand five while serving on such active
military duty or in the uniformed services.
Section 13-245
§ 13-245 Accidental death benefits in the case of deaths occurring
prior to July first, nineteen hundred sixty-five. a. Notwithstanding the
provisions of section 13-244 of this subchapter, in any case where a
pension was or is awarded under the provisions of such section, by
reason of the death of a member occurring before July first, nineteen
hundred and sixty-five, such pension, subject to the provisions of
subdivisions b and c of this section, shall be:
(1) For each full calendar year, on and after January first, nineteen
hundred and sixty-five, an amount equal to one-half of the annual salary
or compensation payable, on July first, nineteen hundred and sixty-five,
to a member of the uniformed force of rank, seniority and other
salary-determining status, equal to that of the deceased member on the
date of his or her death, but in no case less than one-half of the
salary payable, to a first grade police officer on July first, nineteen
hundred sixty-five, and
(2) For any portion of a calendar year, on and after January first,
nineteen hundred and sixty-five, the appropriate pro rata portion of the
amount which would be payable, under the provisions of paragraph one of
this subdivision a, for the full calendar year which includes such
portion of a year, if a pension were payable under this section for such
full calendar year.
b. Such pension shall be payable to the same persons and shall be
subject to the same terms and conditions, including provisions as to
termination, as the pension which would otherwise be payable, on and
after January first, nineteen hundred and sixty-five, pursuant to
section 13-244 of this subchapter by reason of the death of such member.
c. The pension payable pursuant to the provisions of subdivisions a
and b of this section shall be in lieu of any pension which would
otherwise be payable on and after the effective date of this section,
pursuant to the provisions of section 13-244 of this subchapter and,
except as otherwise provided in paragraph one of subdivision e of
section 13-686 of this title, shall be in lieu of any supplemental
retirement allowance which would otherwise be payable, on and after such
date, under the provisions of subchapter six of chapter five of this
title of the code or any other law.
Section 13-246
§ 13-246 Retirement; minimum age or period for service retirement. Any
member in city-service who shall have attained the minimum age or period
of service retirement elected by him or her upon such member's own
written application to and filed with the board setting forth at what
time, not less than thirty days subsequent to the execution and filing
thereof, he or she desires to be retired, shall be retired as of the
date specified in said application, provided that at the time so
specified for his or her retirement, his or her term or tenure of office
or employment shall not have terminated or have been forfeited, provided
further that upon such member request in writing the member shall be
granted a leave of absence from the date of filing said application
until the date the retirement becomes effective.
Section 13-247
§ 13-247 Retirement; selection of either twenty or twenty-five years
of city-service. a. Any person becoming a member who was not previously
a member or who during his or her last previous membership in the
pension fund contributed on the basis of a minimum period of retirement
of twenty years of city-service, may elect, prior to the certification
of his or her rate of contribution, to contribute on the basis of a
minimum retirement period of twenty years of city-service, by a written
election duly executed and acknowledged and filed with the board. The
minimum period of retirement for such member so electing shall be twenty
years of city-service, and all contributions and benefits payable by or
on account of any such member shall be computed on the basis of such
minimum retirement period.
b. Any person becoming a member who was not previously a member or who
during his or her last previous membership in the pension fund
contributed on the basis of a minimum period of retirement of
twenty-five years of city-service, may elect, prior to certification of
his or her rate of contribution, to contribute on the basis of a minimum
retirement period of twenty-five years of city-service by a written
election duly executed and acknowledged and filed with the board. The
minimum period of retirement for such members so electing shall be
twenty-five years of city-service, and all contributions and benefits
payable by or on account of any such member shall be computed on the
basis of such minimum retirement period.
Section 13-248
§ 13-248 Retirement; selection of age fifty-five. Any person becoming
a member who was not previously a member or who during his or her last
previous membership in the pension fund contributed on the basis of a
minimum retirement age of fifty-five, may elect, prior to the
certification of his or her rate of contribution, to contribute on the
basis of a minimum retirement age of fifty-five by a written election
duly executed and acknowledged and filed with the board. The minimum age
of retirement for such members so electing shall be fifty-five years,
and all contributions and benefits payable by or on account of such
member shall be computed on the basis of such minimum retirement age.
Section 13-249
§ 13-249 Method of computing certain pensions. In lieu of any other
retirement benefits granted to him or her upon retirement from the
police force, any member who shall have served as a chief
inspector/chief of operations of the police department on or after July
first, nineteen hundred sixty-six, shall be entitled upon retirement to
a retirement allowance which shall consist of an annuity which is the
actuarial equivalent of his or her accumulated deductions at the time of
his or her retirement from the police force and a pension which, when
added to such annuity, will make such retirement allowance equal to
two-thirds of his or her salary as chief inspector. For the purpose of
computing the annuity portion of such retirement allowance, such
member's accumulated deductions shall be the required amount of such
deductions at the time of such member's retirement from the police
force, without any increase resulting from excess contributions and
without any decrease resulting from withdrawals, loans, optional
modification, payment of his or her contributions for old age and
survivor's insurance coverage, or from any other transaction authorized
by law.
Section 13-250
§ 13-250 Continuance of retirement allowance upon election to public
office. Notwithstanding the provisions of any general, special, local
law, charter, administrative code or rule or regulation to the contrary,
the payment of any pension from the police pension fund, subchapter two
of this chapter, shall not be revoked, repealed or diminished by reason
of the pensioner holding or receiving any compensation as the result of
his or her election to a public office under the state of New York, or
of any city, county or other political subdivision or agency or board of
the state of New York.
Section 13-251
§ 13-251 Retirement; for ordinary disability. Medical examination of a
member in city-service for ordinary disability shall be made upon the
application of the commissioner, or upon the application of such member
or of a person acting in his or her behalf, stating that such member is
physically or mentally incapacitated for the performance of duty and
ought to be retired. If such medical examination shows that such member
is physically or mentally incapacitated for the performance of duty and
ought to be retired, the medical board shall so report and the board
shall retire such member for ordinary disability not less than thirty
nor more than ninety days after the execution and filing of application
therefor with the pension fund.
Section 13-252
§ 13-252 Retirement; for accident disability. Medical examination of a
member in city-service for accident disability and investigation of all
statements and certifications by him or her or on his or her behalf in
connection therewith shall be made upon the application of the
commissioner, or upon the application of a member or of a person acting
in his or her behalf, stating that such member is physically or mentally
incapacitated for the performance of city-service, as a natural and
proximate result of such city-service, and certifying the time, place
and conditions of such city-service performed by such member resulting
in such alleged disability and that such alleged disability was not the
result of wilful negligence on the part of such member and that such
member should, therefore, be retired. If such medical examination and
investigation shows that such member is physically or mentally
incapacitated for the performance of city-service as a natural and
proximate result of an accidental injury received in such city-service
while a member, and that such disability was not the result of wilful
negligence on the part of such member and that such member should be
retired, the medical board shall so certify to the board, stating the
time, place and conditions of such city-service performed by such member
resulting in such disability, and such board shall retire such member
for accident disability forthwith.
Section 13-252.1
§ 13-252.1 Accidental disability retirement; World Trade Center
presumption. 1. (a) Notwithstanding any provisions of this code or of
any general, special or local law, charter or rule or regulation to the
contrary, if any condition or impairment of health is caused by a
qualifying World Trade Center condition as defined in section two of the
retirement and social security law, it shall be presumptive evidence
that it was incurred in the performance and discharge of duty and the
natural and proximate result of an accident not caused by such member's
own willful negligence, unless the contrary be proved by competent
evidence.
(b) The New York City Police Pension Fund (NYCPPF) board of trustees
is hereby authorized to promulgate rules and regulations to implement
the provisions of this paragraph.
2. (a) Notwithstanding the provisions of this chapter or of any
general, special or local law, charter, administrative code or rule or
regulation to the contrary, if a member who participated in World Trade
Center rescue, recovery or cleanup operations as defined in section two
of the retirement and social security law, and subsequently retired on a
service retirement, an ordinary disability retirement, an accidental
disability retirement, a performance of duty disability retirement, or
was separated from service with a vested right to deferred payability of
a retirement allowance and subsequent to such retirement or separation
is determined by the NYCPPF board of trustees to have a qualifying World
Trade Center condition, as defined in section two of the retirement and
social security law, upon such determination by the NYCPPF board of
trustees, it shall be presumed that such disability was incurred in the
performance and discharge of duty as the natural and proximate result of
an accident not caused by such member's own willful negligence, and that
the member would have been physically or mentally incapacitated for the
performance and discharge of duty of the position from which he or she
retired or vested had the condition been known and fully developed at
the time of the member's retirement or separation from service with
vested rights, unless the contrary is proven by competent evidence.
(b) The NYCPPF board of trustees shall consider a reclassification of
the member's retirement or vesting as an accidental disability
retirement effective as of the date of such reclassification.
(c) Such member's retirement option shall not be changed as a result
of such reclassification.
(d) The member's former employer at the time of the member's
retirement shall have an opportunity to be heard on the member's
application for reclassification by the NYCPPF board of trustees
according to procedures developed by the NYCPPF board of trustees.
(e) The NYCPPF board of trustees is hereby authorized to promulgate
rules and regulations to implement the provisions of this paragraph.
3. Notwithstanding any other provision of this chapter or of any
general, special or local law, charter, administrative code or rule or
regulation to the contrary, if a retiree or vestee who: (1) has met the
criteria of subdivision one of this section and retired on a service or
disability retirement, would have met the criteria if not already
retired on an accidental disability, or was separated from service with
a vested right to deferred payability of a retirement allowance; and (2)
has not been retired for more than twenty-five years; and (3) dies from
a qualifying World Trade Center condition, as defined in section two of
the retirement and social security law, as determined by the applicable
head of the retirement system or applicable medical board, then unless
the contrary be proven by competent evidence, such retiree or vestee
shall be deemed to have died as a natural and proximate result of an
accident sustained in the performance of duty and not as a result of
willful negligence on his or her part. Such retiree's or vestee's
eligible beneficiary, as set forth in section 13-244 of this subchapter,
shall be entitled to an accidental death benefit as provided by section
13-244 of this subchapter, however, for the purposes of determining the
salary base upon which the accidental death benefit is calculated, the
retiree or vestee shall be deemed to have died on the date of his or her
retirement or separation from service with vested rights. Upon the
retiree's or vestee's death, the eligible beneficiary shall make a
written application to the head of the retirement system within the time
for filing an application for an accidental death benefit as set forth
in section 13-244 of this subchapter requesting conversion of such
retiree's service, vested right or disability retirement benefit to an
accidental death benefit. At the time of such conversion, the eligible
beneficiary shall relinquish all rights to the prospective benefits
payable under the service or disability retirement benefit, or vested
right to such benefit, including any post-retirement death benefits,
since the retiree's or vestee's death. If the eligible beneficiary is
not the only beneficiary receiving or entitled to receive a benefit
under the service or disability retirement benefit (including, but not
limited to, post-retirement death benefits or benefits paid or payable
pursuant to the retiree's option selection), or that will be eligible
under the vested right, the accidental death benefit payments to the
eligible beneficiary will be reduced by any amounts paid or payable to
any other beneficiary.
4. Notwithstanding any other provision of this code or of any general,
special or local law, charter, or rule or regulation to the contrary, if
a member who: (1) has met the criteria of subdivision one of this
section; (2) dies in active service or after separating from service
with a vested right to deferred payability of a retirement allowance,
but prior to the payability of that retirement allowance; and (3) dies
from a qualifying World Trade Center condition, as defined in section
two of the retirement and social security law, as determined by the
applicable head of the retirement system or applicable medical board to
have been caused by such member's participation in the World Trade
Center rescue, recovery or cleanup operations, as defined in section two
of the retirement and social security law, then unless the contrary be
proven by competent evidence, such member shall be deemed to have died
as a natural and proximate result of an accident sustained in the
performance of duty and not as a result of willful negligence on his or
her part. Such member's eligible beneficiary, as set forth in section
13-244 of this subchapter, shall be entitled to an accidental death
benefit provided he or she makes written application to the head of the
retirement system within the time for filing an application for an
accidental death benefit as set forth in section 13-244 of this
subchapter.
Section 13-253
§ 13-253 Dependent benefits for surviving spouses and orphans. a. The
board shall pay a dependent benefit to the surviving spouse, child or
children or dependent parent or parents of any deceased member if the
death of such member occur during his or her service or after he or she
was retired from service. The amount of any such dependent benefit to be
paid by the board to each of the several representatives of such member,
in case there shall be more than one, from time to time, may be
determined by such board according to the circumstances of each case.
The annual dependent benefit to the representative or representatives of
such member, however, shall be six hundred dollars, and no part of such
sum shall be paid to any such surviving spouse who shall remarry, after
such remarriage, or to any child after it shall have reached the age of
eighteen years.
b. Dependent benefits shall be granted to the surviving spouse, child
or children or dependent parent or parents of a member pursuant to this
section only if such member, upon becoming a member, shall elect to
contribute the additional deductions provided by subdivision d of
section 13-227 of this subchapter.
c. The benefits granted pursuant to this section shall be in addition
to any other benefit provided for by this subchapter.
Section 13-254
§ 13-254 Safeguards on disability retirement. a. Once each year the
board may, and upon his or her application shall, require any disability
pensioner, under the minimum age or period for service retirement
elected by him or her, to undergo medical examination. Such examination
shall be made at the place of residence of such beneficiary or other
place mutually agreed upon. Upon the completion of such examination the
medical board shall report and certify to the board whether such
beneficiary is or is not totally or partially incapacitated physically
or mentally and whether he or she is or is not engaged in or able to
engage in a gainful occupation. If the board concurs in a report by the
medical board that such beneficiary is able to engage in a gainful
occupation, he or she shall certify the name of such beneficiary to the
appropriate civil service commission, state or municipal, and such
commission shall place his or her name as a preferred eligible on such
appropriate lists of candidates as are prepared for appointment to
positions for which he or she is stated to be qualified. Should such
beneficiary be engaged in a gainful occupation, or should he or she be
offered city-service as a result of the placing of his or her name on a
civil service list, such board shall reduce the amount of his or her
disability pension and his or her pension-for-increased-take-home-pay,
if any, to an amount which, when added to that then earned by him or
her, or earnable by him or her in city-service so offered him or her,
shall not exceed the current maximum salary for the title next higher
than that held by him or her when he or she was retired. Should the
earning capacity of such beneficiary be further altered, such board may
further alter his or her pension and his or her
pension-for-increased-take-home-pay, if any, to an amount which shall
not exceed the rate of pension and his or her
pension-for-increased-take-home-pay, if any, upon which he or she was
originally retired but which, subject to such limitation, shall equal,
when added to that earnable by him or her, the current maximum salary
for the title next higher than that held by him or her when he or she
was retired. The provisions of this section shall be executed, any
provision of the charter or the code to the contrary notwithstanding.
b. Should any disability pensioner, under the minimum age or period
for service retirement elected by him or her, refuse to submit to one
medical examination in any year by a physician or physicians designated
by the medical board, his or her pension and his or her
pension-for-increased-take-home-pay, if any, may be discontinued until
his or her withdrawal of such refusal. Should such refusal continue for
one year, all his or her rights in and to such pension and his or her
pension-for-increased-take-home-pay, if any, may be revoked by such
board.
Section 13-255
§ 13-255 Retirement allowances; for service. Upon retirement for
service, a member shall receive a retirement allowance which shall
consist of:
1. An annuity based on his or her required annuity savings at the
termination of his or her required minimum period of service, and in
addition, a pension which when added to the annuity shall be equal to
one-half of his or her annual earnable compensation on the date of
retirement, for his or her minimum period of service. For the purpose
only of determining the pension portion of the retirement allowance for
minimum service, the member's annuity shall be computed as it would be,
(a) if it were not reduced by the actuarial equivalent of any
outstanding loan, (b) if it were not increased by the actuarial
equivalent of any additional contributions, (c) if it were not reduced
by reason of the member's election to decrease his or her annuity
contributions in order to apply the amount of such reduction in payment
of his or her contributions for old-age and survivors insurance
coverage, (d) as it would be without any optional modification;
2. For each additional year of service in the police force, or
fraction thereof, beyond his or her required minimum service, a member
shall be entitled to, in addition to the benefits provided in
subdivision one of this section:
(a) a pension of one-sixtieth of his or her average annual earnings
from his or her date of eligibility for retirement to the actual date of
retirement; and
(b) a pension-providing-for-increased-take-home-pay which shall be the
actuarial equivalent of the reserve-for-increased-take-home-pay to which
he or she may be entitled, if any, for all periods of such service in
the police force rendered both (1) after the completion of such required
minimum service in such police force and (2) after December
thirty-first, nineteen hundred sixty-six.
3. For each year, or fraction thereof, of service credit transferred
from the New York city employees' retirement system, a pension of
fifty-five per cent of one-sixtieth of his or her final compensation if
such service credit was for service rendered prior to October first,
nineteen hundred fifty-one, or seventy-five per cent of one-sixtieth of
his or her final compensation if such service was rendered subsequent to
October first, nineteen hundred fifty-one.
Section 13-256
§ 13-256 Vested retirement rights. a. Any member who:
(1) discontinues police service on or after July first, nineteen
hundred sixty-nine, other than by death, retirement or dismissal; and
(2) prior to such discontinuance, completed five or more years of
allowable police service; and
(3) does not withdraw his or her accumulated deductions in whole or in
part; and
(4) at least thirty days prior to the date of such discontinuance,
files a duly executed application for a deferred retirement allowance
hereunder;
shall have a vested right to receive a deferred retirement allowance as
provided in this section.
b. (1) Upon such discontinuance under the conditions and in compliance
with the provisions of subdivision a of this section, such deferred
retirement allowance shall vest automatically.
(2) Such retirement allowance shall become payable on the earliest
date on which such discontinued member could have retired for service if
discontinuance had not occurred.
c. Such deferred retirement allowance shall consist of:
(1) an annuity which is the actuarial equivalent of an amount equal to
the member's accumulated deductions for the period of his or her police
service, plus any accumulated contributions transferred to his or her
credit pursuant to section forty-three of the retirement and social
security law, as the total of such accumulated deductions and
contributions is on the earliest date on which such member could have
retired for service; and
(2) a pension, which together with his or her annuity shall be equal
to:
(i) in the case of any discontinued member whose minimum period for
service retirement is twenty years, two and one-half per cent of his or
her annual earnable compensation on the date of his or her
discontinuance of police service, multiplied by a number equal to the
number of years of allowable police service credited to him or her on
the date of such discontinuance, plus the number of his or her years of
service for which credit was transferred pursuant to section forty-three
of the retirement and social security law; or
(ii) in the case of any discontinued member whose minimum period for
service retirement is twenty-five years, two per cent of his or her
annual earnable compensation on the date of his or her discontinuance of
police service, multiplied by a number equal to the number of years of
allowable police service credited to him or her on the date of his or
her discontinuance of police service, plus the number of years of his or
her service for which credit was transferred pursuant to section
forty-three of the retirement and social security law; and
(3) for each year, or fraction thereof, of his or her service credit
transferred from the New York city employees' retirement system, a
pension of fifty-five per cent of one-sixtieth of his or her final
compensation if such service credit was for service rendered prior to
October first, nineteen hundred fifty-one, or seventy-five per cent of
one-sixtieth of his or her final compensation if such service was
rendered on or after October first, nineteen hundred fifty-one.
d. For the purpose only of determining the pension portion of such
retirement allowance pursuant to paragraphs one and two of subdivision c
of this section, the annuity referred to in such paragraph one shall be
computed as it would be (1) if it were not reduced by the actuarial
equivalent of any outstanding loan, (2) if it were not increased by the
actuarial equivalent of any additional contributions, (3) if it were not
reduced by reason of the member's election to decrease his or her
annuity contributions in order to apply the amount of such reduction in
payment of his or her contributions for old-age and survivors insurance
coverage and (4) as it would be without any optional modification.
e. Regular interest on the accumulated deductions of a discontinued
member and on his or her reserve-for-increased-take-home-pay shall be
credited after discontinuance of police service at the rate which would
be applicable if he or she had not discontinued service.
f. If a discontinued member dies before attaining the earliest age at
which he or she could have retired for service if discontinuance had not
occurred, his or her accumulated deductions shall be paid (1) to the
beneficiary designated by him or her pursuant to section 13-243 of this
subchapter to receive his or her accumulated deductions in the event
that such deductions were to become payable under such section, or (2)
if such member had made no such designation, to his or her estate.
g. A discontinued member may elect any option under section 13-261 of
this subchapter at any time prior to the first payment on account of his
or her retirement allowance under this section.
h. Withdrawal of accumulated deductions, in whole or in part, after
discontinuance of police service, shall terminate the right to a
deferred retirement allowance under this section.
i. If a discontinued member who has not withdrawn his or her
accumulated deductions in whole or in part shall subsequently re-enter
police service before the earliest date on which such discontinued
member could have retired for service if discontinuance had not
occurred, he or she shall be entitled to the service credit and status
to which he or she was entitled immediately prior to his or her
discontinuance of police service and shall be credited with regular
interest on his or her accumulated deductions and his or her
reserve-for-increased-take-home-pay from the time of such discontinuance
to the time of his or her re-entry into service, at the rate which would
have been applicable if he or she had not discontinued service.
j. (1) If a discontinued member who has not withdrawn his or her
accumulated deductions in whole or in part shall subsequently and on or
after the earliest date on which such discontinued member could have
retired for service if discontinuance had not occurred, re-enter police
service, the payment of his or her pension only shall be suspended and
forfeited during the period of such police service, except as herein
otherwise provided.
(2) Such member may again become a member of the pension fund if,
within ninety days after his or her return to service, he or she files a
duly executed and acknowledged application for such membership.
(3) If such beneficiary shall again become a member of the pension
fund, the payment of his or her annuity shall also be suspended and
forfeited and his or her annuity reserve shall be transferred to his or
her credit in the annuity savings fund and he or she shall become such
member as a new entrant; provided, however, that he or she shall
contribute to such fund at the rate (before modification, if any, to
which such discontinued member may be entitled pursuant to section
13-226 of this subchapter) at which he or she would have been
contributing if he or she had not discontinued police service. Upon his
or her subsequent retirement, he or she shall be credited with all of
his or her service as a member subsequent to his or her last restoration
to membership and he or she shall receive therefor a retirement
allowance, payable in such form as he or she shall select under section
13-261 of this subchapter, consisting of:
(i) an annuity which is the actuarial equivalent of his or her
accumulated deductions at the time of such retirement; and
(ii) a pension equal to one-sixtieth of his or her average annual
earnings from the date of his or her re-entry into membership to the
date of his or her subsequent retirement, multiplied by the number of
years of his or her allowable service in the police force rendered by
him or her from such date of re-entry; and
(iii) a pension-providing-for-increased-take-home-pay which is the
actuarial equivalent of the reserve-for-increased-take-home-pay to which
he or she may be entitled, if any, for the period of his or her
allowable service in the police force rendered by him or her from such
date of re-entry.
(4) In addition, upon his or her subsequent retirement, he or she
shall receive the pension which he or she was receiving or entitled to
receive immediately prior to his or her last restoration.
(5) In lieu of suspension during restoration to police service of any
benefits payable in the event of his or her death by reason of any
optional selection in respect to his or her pension, any such
beneficiary may pay to the fund or funds from which his or her ordinary
pension was payable, the amount by which his or her ordinary pension
exceeded the optional pension heretofore granted to him or her, in which
event such optional benefit shall continue and be payable in the event
of his or her death as though no payment was suspended.
k. Notwithstanding any other provision of law, a discontinued member
with ten or more years of credited service in the pension fund who dies
before a retirement benefit becomes payable and who is otherwise not
entitled to a death benefit from the pension fund shall be deemed to
have died on the last day that he or she was in service upon which his
or her membership was based for purposes of eligibility for the payment
of a death benefit pursuant to the provisions of section 13-243 of this
title. The death benefit payable in such case shall be one-half of that
which would have been payable had such member died on the last day that
service was rendered.
Section 13-256.1
§ 13-256.1 Discharge or dismissal. a. Notwithstanding any other
provision of law, when a member has attained at least twenty years of
creditable police service in the retirement system, the discharge or
dismissal from employment of such person shall not preclude such person
from receiving any rights or benefits to which he or she shall otherwise
be entitled as a member or retired member of the retirement system nor
upon retirement shall his or her benefits be in any way diminished as a
result of such discharge or dismissal. Such member shall be deemed to be
retired on the date of his or her discharge or dismissal from service
for purposes of determining his or her rights and benefits as a member
of the retirement system.
b. Notwithstanding anything to the contrary in subdivision a of this
section, a member, other than a member to which article fourteen of the
retirement and social security law is applicable, that has attained at
least twenty years of creditable service in the retirement system shall
forfeit the retirement benefits to which the member would otherwise be
entitled if the member is convicted under the laws of the state of New
York of a felony, or under the laws of another state or of the United
States of an offense or crime which, if committed in the state of New
York, would be a felony.
c. Nothing in this section shall be construed to in any way modify or
affect the rights or benefits of any member of the retirement system to
which article fourteen of the retirement and social security law is
applicable.
Section 13-257
§ 13-257 Retirement allowances; for ordinary disability. Upon
retirement for ordinary disability, a member shall receive a retirement
allowance which shall consist of:
1. An annuity which shall be the actuarial equivalent of his or her
accumulated deductions at the time of his or her retirement; and
2. A pension which is the actuarial equivalent of the
reserve-for-increased-take-home-pay to which he or she may then be
entitled, if any; and
3. A pension, which, together with his or her annuity and the
pension-providing-for-increased-take-home-pay, if any, shall be equal
to:
a. In the case of a member who contributes on the basis of retirement
after twenty years of city-service, a retirement allowance equal to
one-fortieth of his or her annual earnable compensation on the date of
retirement multiplied by the number of years of city-service credited to
him or her, but not less than (i) one-half of his or her annual earnable
compensation on the date of retirement, if the years of city-service
credited to him or her are ten or more, or (ii) one-third of his or her
annual earnable compensation on the date of retirement, if the years of
city-service credited to him or her are less than ten; or
b. In the case of a member who contributes on the basis of retirement
after twenty-five years of city-service, a retirement allowance equal to
one-fiftieth of his or her annual earnable compensation on the date of
retirement, multiplied by the number of years of city-service credited
to him or her, but not less than (i) one-half of his or her annual
earnable compensation on the date of retirement, if the years of
city-service credited to him or her are ten or more, or (ii) one-third
of his or her annual earnable compensation on the date of retirement, if
the years of city-service credited to him or her are less than ten; or
c. (1) In the case of a member who contributes on the basis of
retirement at age fifty-five the retirement allowance that would be
payable to him or her after a like amount of total-service and annual
earnable compensation on the date of retirement, had he or she attained
his or her minimum age for service retirement if such retirement
allowance exceeds one-quarter of his or her annual earnable compensation
on the date of retirement; otherwise,
(2) The retirement allowance not exceeding one-quarter of his or her
annual earnable compensation on date of retirement, that would be paid
to him or her were his or her service and present annual earnable
compensation on the date of retirement to continue until attainment by
him or her of his or her minimum age of service retirement.
Section 13-258
§ 13-258 Retirement allowances; for accident disability. Upon
retirement for accident disability, a member shall receive a retirement
allowance which shall consist of:
1. An annuity, which shall be the actuarial equivalent of his or her
accumulated deductions at the time of his or her retirement; and
2. A pension which is the actuarial equivalent of the
reserve-for-increased-take-home-pay to which he or she may then be
entitled, if any; and
3. A pension, of three-quarters of his or her annual earnable
compensation on the date of retirement, in addition to the annuity and
pension provided for by subdivisions one and two of this section.
Section 13-259
§ 13-259 Accidental disability benefits in the case of retirements
prior to July first, nineteen hundred sixty-five. a. Notwithstanding the
provisions of section 13-258 of this subchapter, in any case where a
retirement allowance was or is awarded under the provisions of such
section, by reason of the retirement for accidental disability of a
member occurring before July first, nineteen hundred sixty-five, such
retirement allowance shall not be less than three-fourths the annual
salary or compensation payable to a first grade patrolman on July first,
nineteen hundred sixty-five. In the case of a member receiving a lesser
retirement allowance than three-fourths the annual salary or
compensation of a first grade patrolman as of July first, nineteen
hundred and sixty-five, there shall be added to the pension portion of
his or her retirement allowance an amount which when added to his or her
retirement allowance provided for under section 13-258 of this
subchapter, shall equal three-fourths the annual salary or compensation
payable to a first grade patrolman as of July first, nineteen hundred
and sixty-five. For the purpose of computing the annuity portion of such
retirement allowance, his or her accumulated deductions shall be the
required amount of such deductions at the time of his or her retirement
from the police force, without any increase resulting from excess
contributions and without any decrease resulting from excess
contributions and without any decrease resulting from withdrawals,
loans, optional modification, payment of his or her contributions for
old age and survivors insurance coverage, or from any other transaction
authorized by law.
b. Such retirement allowance shall be payable to the same persons and
shall be subject to the same terms and conditions, including provisions
as to terminations, as the retirement allowance which would otherwise be
payable to the member under section 13-258 of this subchapter or any
other law.
c. The retirement allowance payable pursuant to the provisions of
subdivisions a and b of this section shall be in lieu of any retirement
allowance which would otherwise be payable on and after the effective
date of this section pursuant to the provisions of section 13-258 of
this subchapter.
Section 13-260
§ 13-260 Retirement allowances; restrictions on. a. If a lump sum
which has been paid or which is payable under the provisions of the
workers' compensation law equals or exceeds the present value of all
amounts otherwise payable out of moneys provided or to be provided by
the city under the provisions of this subchapter on account of the same
disability of the same person, no payment shall be made to such person
under the provisions of this subchapter. If such lump sum be a
percentage less than one hundred per cent of the present value of all
such amounts, there shall be paid as it becomes due under the provisions
of this subchapter, in lieu of each amount otherwise payable, an amount
equal to the percentage thereof which is the difference between such
lesser per cent and one hundred per cent.
b. If an amount which is payable throughout a period under the
provisions of the workers' compensation law equals or exceeds the
amounts otherwise payable during the same period out of the moneys
provided or to be provided by the city under the provisions of this
article on account of the same disability of the same person, no payment
shall be made to such person under the provisions of this subchapter
during such period nor thereafter, until the total amount of such
omitted payments, together with the regular interest which they would
have accumulated, equals the amount paid under the workers' compensation
law, together with the regular interest which it would have accumulated.
If an amount which is payable throughout a period under the provisions
of the workers' compensation law be a percentage less than one hundred
per cent of the amounts otherwise payable during the same period out of
moneys provided or to be provided by the city under the provisions of
this subchapter on account of the same disability of the same person,
there shall be paid during such period as it becomes due under the
provisions of this subchapter, in lieu of each amount otherwise payable,
the percentage thereof which is the difference between such lesser per
cent and one hundred per cent.
c. No decision of the workers' compensation board shall be binding on
the medical board or on the board in the determination of eligibility of
a claimant for an accident disability or an accidental death benefit.
d. Notwithstanding any of the foregoing provisions of this section or
any other law to the contrary, pending the final determination of a
claim for workers' compensation benefits, the board may authorize
payment of all or any part of the benefits which are payable under this
subchapter and to which any of the foregoing provisions of this section
apply, and in that event the pension fund shall be entitled to
reimbursement out of the unpaid installment or installments of
compensation due under the workers' compensation law provided that claim
therefor is filed with the workers' compensation board, together with
proof of the fact and amount of payment.
Section 13-261
§ 13-261 Retirement; options in which retirement allowances may be
taken. a. Until the first payment on account of any benefit is made,
except pursuant to the provisions of section 13-261.2 of this
subchapter, the beneficiary, or, if such beneficiary is an incompetent,
then the husband or wife of such beneficiary, or, if there be no husband
or wife, a committee of the estate, may elect to receive such benefit in
a retirement allowance payable throughout life, or the beneficiary or
the husband or wife or committee so electing may then elect to receive
the actuarial equivalent at that time of his or her annuity, his or her
pension, or his or her retirement allowance in a lesser annuity or a
lesser pension or a lesser retirement allowance, payable throughout life
with the provision that:
Option 1. If he or she die before he or she has received in payments
the present value of his or her annuity, his or her pension, or his or
her retirement allowance, as it was at the time of his or her
retirement, the balance shall be paid to his or her legal
representatives or to such person as the beneficiary, or the husband or
wife or committee so electing, has nominated or shall nominate by
written designation duly acknowledged and filed with the board.
Option 2. Upon his or her death, his or her annuity, his or her
pension, or his or her retirement allowance, shall be continued
throughout the life of and paid to such person as the beneficiary, or
the husband or wife or committee so electing, has nominated or shall
nominate by written designation duly acknowledged and filed with the
board at the time of his or her retirement.
Option 3. Upon his or her death, one-half of his or her annuity, his
or her pension, or his or her retirement allowance, shall be continued
throughout the life of and paid to such person as the beneficiary, or
the husband or wife or committee so electing, has nominated or shall
nominate by written designation duly acknowledged and filed with the
board at the time of his or her retirement.
Option 4. Upon his or her death, some other benefit or benefits shall
be paid to such other person or persons as the beneficiary, or the
husband or wife or committee so electing, has nominated or shall
nominate, provided such other benefit or benefits, together with such
lesser annuity, or lesser pension, or lesser retirement allowance, shall
be certified by the actuary to be of equivalent actuarial value to his
or her annuity, his or her pension or his or her retirement allowance,
and shall be approved by such board.
b. For purposes of this section, the terms "pension" and "retirement
allowance" shall be deemed to include the
pension-providing-for-increased-take-home-pay, if any.
Section 13-261.1
* § 13-261.1 Modified Option 1 pension computation formula. a. The
board may by resolution direct that under such circumstances as are
designated in such resolution, benefits under Option 1 which consist of
or are derived from the pension component of a retirement allowance and
which are payable to or on account of members who:
(1) became members prior to the date of enactment (as certified
pursuant to section forty-one of the legislative law) of this section;
and
(2) retired or retire, on or after August first, nineteen hundred
eighty-three, for service or superannuation or for ordinary or accident
disability, or on or after such August first, discontinued or
discontinue service so as to become a discontinued member;
shall be determined under the modified Option 1 pension computation
formula (as defined in subdivision twenty-eight of section 13-214 of the
code).
b. If the board makes a direction, pursuant to the provisions of
subdivision a of this section, for use of such formula, it may also
direct by resolution:
(1) that any member who is subject to the modified Option 1 pension
computation formula may elect, at such time and in accordance with such
procedures as are prescribed in such resolution, that such formula shall
not apply to such member and that the initial reserve determined for the
purpose of providing the benefits payable by reason of his or her
selection of Option 1 and the pension component of his or her Option 1
allowance shall be determined on the basis of gender-neutral mortality
tables and regular interest of seven per centum per annum, compounded
annually; and
(2) that the benefit payable, upon the death of the member making such
election, to his or her beneficiary or estate shall be the difference
between such Option 1 initial reserve and the total of the payments of
such pension component received by or payable to such member for the
period prior to his or her death; and
(3) that where any member subject to the modified Option 1 pension
computation formula retired before the effective date of the board
resolution adopted pursuant to subdivision a of this section, and where
the first payment on account of the retirement allowance of any
discontinued member subject to such formula was made before the
effective date of such resolution, such retiree or discontinued member,
within such period of time after such effective date and in accordance
with such procedures as are prescribed in such resolution, may elect the
method of Option 1 benefit determination set forth in the preceding
paragraphs of this subdivision b.
c. In any case, where, pursuant to board resolution, a benefit is
required to be determined under the modified Option 1 pension
computation formula and the determination of such benefit is also
required by a board resolution adopted pursuant to sub-item (3) of item
(A) of subparagraph (ii) of paragraph (g) of subdivision eight of
section 13-214 of the code to reflect different computations of separate
portions of such benefit, the methods of computation under the modified
Option 1 pension computation formula shall be appropriately adjusted so
as to give effect to the provisions of such resolution adopted pursuant
to such sub-item (3).
* NB Added Ch. 910/85 § 32, language juxtaposed per Ch. 907/85 § 14
* NB Number supplied by the Legislative Bill Drafting Commission
Section 13-261.2
§ 13-261.2 Death of applicant before effective date of retirement. a.
If a member who is otherwise eligible for retirement pursuant to
sections 13-251 and 13-252 of this subchapter dies within thirty days
after the filing with the pension board of the application for
retirement pursuant to section 13-251 or 13-252 of this subchapter and
it is established that the physical or mental impairment or
incapacitation of the applicant specified in such application was
directly related to the cause of the applicant's death, such application
shall be approved by the pension board effective one day before the date
of the applicant's death, provided, however, that:
1. if a member is entitled to an ordinary disability retirement
allowance under the provisions of this subchapter, the benefits provided
pursuant to section 13-251 of this subchapter shall be payable unless
the member would otherwise be entitled to a greater benefit pursuant to
section 13-243 of this subchapter, in which event the greater benefit
shall be payable; or
2. if a member is entitled to an accidental disability retirement
allowance under the provisions of this subchapter, the benefits provided
pursuant to section 13-252 of this subchapter shall be payable unless
the member would otherwise be entitled to a greater benefit pursuant to
section 13-244 of this subchapter, in which event the greater benefit
shall be payable.
b. Notwithstanding any law to the contrary, for the purpose of
electing an option pursuant to section 13-261 of this subchapter, the
pension board shall notify the surviving spouse of any applicant
described in subdivision a of this section, or, if no such spouse
exists, the personal representative of the estate of such applicant of
the right of election pursuant to said section 13-261 and such surviving
spouse or personal representative of such estate may elect any such
option within thirty days after receipt of such notice.
Section 13-261.3
§ 13-261.3 Retired employees; change of options. Notwithstanding any
other provision of law to the contrary, no beneficiary shall be
permitted to change any optional selection after it has become
effective, provided, however, that if:
(a) a retired member nominates the spouse of such member as the
survivor beneficiary under option two or three of section 13-261 of the
code, or if a retired member nominates the spouse of such member under
option four of such section to receive payment of an annual benefit as a
survivor; and
(b) such person so nominated ceases by causes other than death to be
his or her spouse or is divorced from or separated pursuant to a
judicial decree from such spouse, then the board of trustees shall have
the authority to permit the change of the optional benefit to the
maximum benefit that is the actuarial equivalent by and with the consent
of all parties.
Section 13-262
§ 13-262 Benefits upon re-entry into membership; after retirement.
a.(1) Should a beneficiary receiving or entitled to receive a retirement
allowance under the provisions of section 13-246, 13-247 or 13-248 of
this subchapter, re-enter city service, his or her retirement allowance
and his or her pension-providing-for-increased-take-home-pay, if any,
shall cease.
(2) If he or she had not served the period of service elected by him
or her or is under the minimum service retirement age elected by him or
her, he or she shall again become a member of the pension system. Except
as otherwise provided in paragraph three of this subdivision a, if he or
she has served the minimum period of service elected by him or her or
has attained the minimum service retirement age elected by him or her he
or she may file a duly executed and acknowledged application therefor
within ninety days after his or her return to service and thereupon
again become a member of such fund.
(3) In the case of any such beneficiary who is appointed police
commissioner or a deputy police commissioner, he or she shall again
become a member of the pension system and shall remain such a member
while serving as police commissioner or deputy police commissioner.
(4) The annuity reserve of any such member whose membership is
restored as above provided in this section shall be transferred to his
or her credit in the annuity savings fund, and he or she shall
contribute to such fund as if he or she were a new entrant.
(5) Upon the subsequent retirement of any such member whose membership
is so restored, he or she shall be credited with all his or her service
as a member subsequent to his or her last restoration to membership, and
shall receive a retirement allowance therefor as if he or she were a new
entrant, payable in such form as he or she shall select under section
13-261 of this subchapter.
(6) In lieu of suspension during restoration to city-service of any
benefits payable in the event of his or her death by reason of any
optional selection in respect to his or her pension and the
pension-providing-for-increased-take-home-pay, if any, a beneficiary may
pay to the fund or funds from which his or her ordinary pension and his
or her pension-providing-for-increased-take-home-pay, if any, were
payable, the amount by which his or her ordinary pension and the
pension-providing-for-increased-take-home-pay, if any, exceeded the
optional pension and the pension-providing-for-increased-take-home-pay,
if any, heretofore granted to him or her, in which event such optional
benefit shall continue and be payable in the event of his or her death
as though no payment were suspended.
(7) In addition, upon his or her subsequent retirement, he or she
shall receive the pension and the
pension-providing-for-increased-take-home-pay, if any, which he or she
was receiving or entitled to receive immediately prior to his or her
last restoration.
b. (1) Subject to the provisions of paragraph two of this subdivision,
where any beneficiary mentioned in subdivision a of this section, other
than a beneficiary serving as police commissioner or deputy police
commissioner, shall have earned at least five years of member credit for
service in the police force after restoration to active service, and
where any beneficiary serving as police commissioner or deputy police
commissioner shall have earned at least three years of member credit for
service during restoration to membership pursuant to this section, the
total service credit to which he or she was entitled at the time of his
or her earlier retirement may, at his or her election, again be credited
to him or her and upon his or her subsequent retirement he or she shall
be credited in addition with all member service earned by him or her
subsequent to his or her last restoration to membership.
(2) Such total service credit to which he or she was entitled at the
time of his or her earlier retirement shall be credited as provided in
paragraph one of this subdivision b only in the event that he or she
returns to the pension fund with regular interest the actuarial
equivalent of the amount of the retirement allowance he or she received;
provided, however, that in the event that such amount is not so repaid,
the actuarial equivalent thereof shall be deducted from his or her
subsequent retirement allowance.
Section 13-264
§ 13-264 Exemption from tax and legal process. The right of a person
to a pension-providing-for-increased-take-home-pay, an annuity, a
dependent benefit, or a retirement allowance, to the return of
contribution, the pension-providing-for-increased-take-home-pay,
annuity, dependent benefit, or a retirement allowance itself, any
optional benefit, any other right accrued or accruing to any person
under the provisions of this chapter, and the moneys in the various
funds provided for by this chapter are hereby exempt from any state or
municipal tax, and shall not be subject to execution, garnishment,
attachment, or any other process whatsoever, and shall be unassignable
except as in this chapter specifically provided.
Notwithstanding the foregoing provisions of this section, a retired
member shall have the right, at any time after the retired member's
retirement, to execute and file a dues deduction authorization card or
an authorization in writing with the New York city police pension fund
authorizing the deduction from the retired member's retirement allowance
of membership dues or premiums for employee organization sponsored group
insurance plans and the payment thereof to a retiree organization of
which the retired member certifies he or she is then a member and which
the retired member certifies is then affiliated with either an employee
organization certified or recognized as the collective bargaining
representative of all employees in the negotiating unit of which the
retired member was a part prior to his or her retirement or an employee
organization with which such employee organization is then affiliated.
The comptroller shall thereafter deduct from the retirement allowance of
such retired member the amount of membership dues required to be paid by
such retired member or premiums for employee organization sponsored
group insurance plans and shall transmit the sum so deducted to said
retiree organization. Such authorization shall continue in effect until
revoked in writing by such retired member. The board shall determine the
cost of administering deductions for premiums for employee organization
sponsored group insurance plans and the cost incurred by the pension
fund and the comptroller in administering the same shall be paid by the
employee organization.
Section 13-264.1
§ 13-264.1 Eligible rollover distributions. a. Notwithstanding
anything to the contrary contained in section 13-264 of this subchapter,
in the event that, under the terms of this subchapter, a person becomes
entitled to a distribution from the pension fund which constitutes an
"eligible rollover distribution" within the meaning of paragraph
thirty-one of subsection a of section four hundred one of the internal
revenue code, such distributee may elect, subject to any rules and
regulations adopted pursuant to subdivision b of this section, to have
such distribution, or a portion thereof, paid directly to an "eligible
retirement plan" within the meaning of paragraph thirty-one of
subsection a of section four hundred one of the internal revenue code.
b. The board of trustees is authorized to adopt such rules and
regulations as it finds to be necessary in administering the provisions
of this section, provided that they are not inconsistent with the
applicable provisions of the internal revenue code and the rules and
regulations thereunder.
Section 13-265
§ 13-265 Protection against fraud or mistake. Any person who shall
knowingly make any false statement, or shall falsify or permit to be
falsified any record or records of this pension fund, shall be guilty of
a misdemeanor. Should any change of error in records result in any
member or beneficiary receiving from the pension fund more or less than
he or she would have been entitled to receive otherwise, on the
discovery of any such error such board shall correct such error, and, as
far as practicable, shall adjust the payments in such a manner that the
actuarial equivalent of the benefit to which he or she was entitled
shall be paid.
Section 13-266
§ 13-266 State supervision. The pension fund shall be subject to the
supervision of the department of insurance in accordance with the
provisions of sections three hundred seven through three hundred twelve
of the insurance law, so far as the same are applicable thereto, and are
not inconsistent with the provisions of this subchapter.
Section 13-267
§ 13-267 Limitation on other statutes; application of article. No
other provision of law which provides wholly or partly at the expense of
the city for pensions or retirement benefits for employees in the
city-service, shall apply to such employees who are entitled to be
members or beneficiaries of the pension fund provided for by this
subchapter, their surviving spouses or their other dependents.
Section 13-267.1
§ 13-267.1 Excess benefit plan. a. As used in this section, the
following words and phrases shall have the following meanings, unless a
different meaning is plainly required by the context:
(1) "Retirement benefits" shall mean benefits payable to a beneficiary
by the pension fund or a variable supplements fund established pursuant
to subchapter three or four of this chapter which are subject to the
limitations imposed by section 415(b) of the Internal Revenue Code.
(2) "Beneficiary" shall mean a person who is receiving retirement
benefits from the pension fund.
(3) "Excess benefit plan" shall mean the excess benefit plan
established by this section for the sole purpose of paying benefits as
permitted under section 415(m) of the Internal Revenue Code.
(4) "Eligible participant" shall mean a beneficiary who is entitled to
replacement benefits from the excess benefit plan for a plan year in
accordance with subdivisions d and e of this section.
(5) "Replacement benefits" shall mean the benefits payable by the
excess benefit plan to an eligible participant as determined pursuant to
subdivision e of this section.
(6) "Internal Revenue Code" shall mean the Federal Internal Revenue
Code of 1986, as amended.
(7) "Plan year" shall mean the limitation year of the pension fund as
provided in section six hundred twenty of the retirement and social
security law.
b. There is hereby established an excess benefit plan, the sole
purpose of which shall be to provide replacement benefits, as permitted
by section 415(m) of the Internal Revenue Code, to beneficiaries whose
annual retirement benefits have been reduced because such benefits
exceed the limitations imposed by section 415(b) of the Internal Revenue
Code. The excess benefit plan shall be administered by the board of
trustees of the pension fund.
c. There is hereby established a fund to be known as the excess
benefit fund which shall be maintained for the sole purpose of providing
replacement benefits to eligible participants in the excess benefit plan
established by this section, as permitted under section 415(m) of the
Internal Revenue Code. Such fund shall consist of such employer
contributions as shall be made thereto pursuant to subdivision f of this
section. Such contributions to the excess benefit fund shall be held
separate and apart from the assets held by the other funds of the
pension fund, provided, however, that the assets of the excess benefit
fund may be invested with the other pension fund assets, but such excess
benefit fund assets shall be accounted for separately from the other
pension fund assets.
d. All beneficiaries of the pension fund whose retirement benefits for
a plan year are being reduced because of section 415(b) of the Internal
Revenue Code shall be eligible participants in the excess benefit plan
for that plan year. Participation in the excess benefit plan shall be
determined for each plan year. No beneficiary of the pension fund shall
be an eligible participant in the excess benefit plan for any plan year
for which his or her retirement benefits are not reduced because of
section 415(b) of the Internal Revenue Code.
e. (1) For each plan year in which a beneficiary is an eligible
participant in the excess benefit plan, such eligible participant shall
receive replacement benefits from the excess benefit plan equal to the
difference between the full amount of the retirement benefits otherwise
payable to the eligible participant for that plan year prior to any
reduction because of section 415(b) of the Internal Revenue Code, and
the retirement benefits payable to the eligible participant for that
plan year as reduced because of section 415(b) of the Internal Revenue
Code. No replacement benefits for any plan year shall be paid pursuant
to this subdivision to any beneficiary who is not receiving retirement
benefits from the pension fund for that plan year.
(2) Replacement benefits pursuant to this section shall be paid at the
same time and in the same manner as the retirement benefits which are
being replaced. At no time shall an eligible participant be permitted
directly or indirectly to defer compensation under the excess benefit
plan.
f. (1) The required employer contributions to the excess benefit fund
for each plan year shall be an amount, as determined by the actuary,
which is necessary to pay the total amount of replacement benefits that
are payable pursuant to this section to eligible participants for that
plan year.
(2) Such required employer contributions shall be paid into the excess
benefit fund from an allocation of the employer contribution amounts
paid pursuant to section 13-228 of this subchapter and other applicable
provisions of law. Such allocation of employer contribution amounts
shall be paid into the excess benefit fund at such times and in such
amounts as determined by the actuary.
(3) The benefit liabilities of the excess benefit plan shall be funded
on a plan year to plan year basis, provided, however, that any employer
contributions to the excess benefit fund, including any investment
earnings on such contributions, which are not used to pay replacement
benefits for the current plan year shall be used to pay replacement
benefits for future plan years.
g. The right of an eligible participant to receive replacement
benefits pursuant to this section, and the replacement benefits received
pursuant to this section, shall be exempt from any state or municipal
tax, and shall not be subject to execution, garnishment, attachment or
any other process whatsoever, and shall be unassignable, except as
otherwise specifically provided for benefits payable by the pension
fund.
h. Nothing contained in this section shall be construed to mean or
imply that variable supplements payments from a variable supplements
fund established pursuant to subchapter three or four of this chapter
constitute pension or retirement allowance payments, or that any such
variable supplements fund constitutes a pension or retirement system or
fund.
i. Nothing contained in this section shall be construed as affecting
in any way the eligibility of any person for variable supplements
pursuant to applicable provisions of subchapter three or four of this
chapter.
To the extent possible under law, Friends of Devin Balkind for Public Advocate has waived all copyright and related or neighboring rights to New York City Administrative Code. This work is published from: United States.
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