N.Y. Education Law § 2575: Retirement of employees of board of education

§ 2575. Retirement of employees of board of education. 1. (a) The

board of education of a city school district of a city having a

population of one hundred thousand or more shall have power to establish

a retirement system for all civil employees permanently employed by said

board other than superintendents and teachers who may now be retired

under the provisions of other retirement laws. In any such city in which

there is a bureau of compulsory education, school census, and child

welfare established under the provisions of this chapter, all persons,

except for attendance teachers and specially certificated attendance

officers who are first employed by a board of education of a city having

a population of one million or more, beginning on the first day of

September, nineteen hundred sixty-eight, and further except for the

director of attendance, assistant director of attendance, chief

attendance officer, division supervising attendance officer, and

district supervising attendance officer, supervisors of school social

workers, who were first employed by a board of education of a city

having a population of one million or more, beginning on the first day

of September nineteen hundred sixty-nine, of which such a bureau of

compulsory education, school census, and child welfare consists shall be

members of the retirement system created in accordance with the

provisions of this section, provided that any such person who on May

fourth, nineteen hundred twenty-six, was a member of another retirement

system in such city may continue such membership so long as he or she

holds an office or position in such bureau. Transfer of membership of

any such persons from another retirement system to a retirement system

as herein provided shall be made in accordance with the provisions of

section fifty-nine of the civil service law. The board of education of

such city shall adopt appropriate rules and regulations for the

government, management and control of the retirement of said employees;

except that in regard to the actions of the governing board of a

retirement system governed by such rules and regulations, the

concurrence of one employee representative and one non-employee

representative shall be necessary for an act of such board, and there

shall be no fewer than two employee representatives of such board.

Before they become effective such rules and regulations must be approved

by the board of estimate, or the board of estimate and apportionment in

a city having such body, and in a city not having such body by the

common council or such other officers or bodies as have the management

and control of financial affairs similar to that exercised by such board

of estimate or board of estimate and apportionment. The board of

estimate or the board of estimate and apportionment in a city having

such body, and in other cities the officers or bodies performing the

functions similar to those of a board of estimate or a board of estimate

and apportionment shall appropriate annually the sum necessary to pay

the expenses of the administration of this section, except that in the

city of New York such appropriations shall be made pursuant to chapter

six of the New York city charter, and also to pay such pensions to the

employees herein described as they shall be entitled to receive annually

under the rules and regulations prescribed by the board of education and

approved by the said board of estimate or board of estimate and

apportionment or other authorities.

(b) (1) The rules and regulations prescribed by the board of education

and approved by the board of estimate or the board of estimate and

apportionment or other authorities named herein shall provide for the

annual payment of a pension which shall be a per centum of the average

annual personal compensation of an employee for the five years of

service immediately preceding his retirement, except as otherwise

provided in subparagraph two of this paragraph (b).

(2) Such rules and regulations so prescribed and approved with respect

to any such retirement system established in the city school district of

a city having a population of one million or more may provide for the

annual payment of a pension which shall be a per centum of the

compensation of an employee during any period designated in such rules

and regulations; provided, however, that such period shall in no event

be less than one year or more than five years.

2. In a city having a population of one million or more and having a

teachers' retirement board, changes, alterations, amendments or

modifications in the rules and regulations established for the

administration of this section shall be adopted as follows:

The board of education of said city may adopt and shall submit such

changes, alterations, amendments or modifications, hereinafter in this

subdivision referred to as changes, to said teachers' retirement board

for approval. Said teachers' retirement board shall within thirty days

after the submission to it of such changes transmit to said board of

education a statement in writing setting forth which of such changes it

approves and which it disapproves, if any, and the reasons for such

disapproval. If said teachers' retirement board shall approve of all of

such changes, then such changes shall immediately become effective and

in full force and operation.

If said teachers' retirement board shall disapprove of all or any of

such changes and if said board of education and said teachers'

retirement board within thirty days thereafter shall fail to agree upon

changes in place of the changes so disapproved, then the changes shall

be submitted by said board of education within ten days after the lapse

of said thirty days to the commissioner of education who shall have full

power to approve, alter or modify the changes disapproved by said

teachers' retirement board, and the action of the commissioner of

education shall be final, and thereupon the changes approved by said

teachers' retirement board and the changes as approved, altered or

modified by the commissioner of education shall immediately become

effective and in full force and operation.

Should said teachers' retirement board fail either to approve or to

disapprove all or any of such changes submitted to it as herein

provided, then such changes not approved or not disapproved shall at the

expiration of the thirty days immediately following their submission to

said teachers' retirement board be deemed to have been approved by said

teachers' retirement board and such changes shall immediately become

effective and in full force and operation.

Said teachers' retirement board and the trustees of any variable

annuity funds created by said rules and regulations may negotiate an

agreement whereby said variable annuity funds are commonly invested with

the variable annuity funds of said teachers' retirement board. In such

event, final authority for investing such funds shall rest with the

teachers' retirement board for the period of such agreement. Such

agreement shall be for a period not to exceed five years but may be

renewed.

3. Notwithstanding any provision of this section or any other

provision of law, in a city having a population of one million or more

the board of education is authorized to adopt a resolution amending the

provisions governing any retirement system adopted pursuant to or

subject to the provisions of this section to the extent necessary to put

into effect a pensions-providing-for-increased-take-home-pay plan

analogous to that authorized by a chapter of the laws of nineteen

hundred sixty, entitled "An act to amend the administrative code of the

city of New York, in relation to authorizing the addition of

pensions-providing-for-increased-take-home-pay and death benefits with

respect to the New York city employees' retirement system." Such

resolution of the board of education, however, shall not take effect

until and unless it is approved by the board of estimate of such city.

4. Notwithstanding any provision of this section or any other

provision of law, in a city having a population of one million or more

the board of education is authorized to adopt a resolution amending the

provisions governing any retirement system adopted pursuant to or

subject to the provisions of this section to the extent necessary to put

into effect a pensions-providing-for-increased-take-home-pay plan

analogous to that authorized by a chapter of the laws of nineteen

hundred sixty-two, entitled "An act to amend the administrative code of

the city of New York, in relation to authorizing pensions-providing-for-

increased-take-home-pay and death benefits with respect to the New York

city employees' retirement system." Such resolution of the board of

education, however, shall not take effect until and unless it is

approved by the board of estimate of such city.

5. Notwithstanding any provision of this section or any other

provision of law, in a city having a population of one million or more

the board of education is authorized to adopt a resolution amending the

provisions governing any retirement system adopted pursuant to or

subject to the provisions of this section to the extent necessary to put

into effect a pensions-providing-for-increased-take-home-pay plan for

the fiscal year nineteen hundred sixty-three--nineteen hundred

sixty-four analogous to that authorized for the fiscal year nineteen

hundred sixty-two--nineteen hundred sixty-three by chapter seven hundred

eighty-seven of the laws of nineteen hundred sixty-two. Such resolution

of the board of education, however, shall not take effect until and

unless it is approved by the mayor of such city.

6. Notwithstanding any provision of this section or any other

provision of law, in a city having a population of one million or more,

the board of education is authorized to adopt a resolution amending the

provisions governing any retirement system adopted pursuant to or

subject to the provisions of this section to the extent necessary to put

into effect a pensions-providing-for-increased-take-home-pay plan for

the fiscal year nineteen hundred sixty-four--nineteen hundred sixty-five

analogous to that authorized for the fiscal year nineteen hundred

sixty-three--nineteen hundred sixty-four by chapter five hundred

seventeen of the laws of nineteen hundred sixty-three. Such resolution

of the board of education, however, shall not take effect until and

unless it is approved by the mayor of such city.

7. Notwithstanding any provision of this section or any other

provision of law, in a city having a population of one million or more,

the board of education is authorized to adopt a resolution amending the

provisions governing any retirement system adopted pursuant to or

subject to the provisions of this section to the extent necessary to put

into effect a pensions-providing-for-increased-take-home-pay plan for

the fiscal year nineteen hundred sixty-five--nineteen hundred sixty-six

analogous to that authorized for the fiscal year nineteen hundred

sixty-two--nineteen hundred sixty-three by chapter seven hundred

eighty-nine of the laws of nineteen hundred sixty-two. Such resolution

of the board of education, however, shall not take effect until and

unless it is approved by the mayor of such city.

8. Notwithstanding any provision of this section or any other

provision of law, in a city having a population of one million or more,

the board of education is authorized to adopt a resolution amending the

provisions governing any retirement system adopted pursuant to or

subject to the provisions of this section to the extent necessary to put

into effect a pensions-providing-for-increased-take-home-pay plan for

the fiscal year nineteen hundred sixty-six--nineteen hundred sixty-seven

analogous to that authorized for the fiscal year nineteen hundred

sixty-two--nineteen hundred sixty-three by chapter seven hundred

eighty-nine of the laws of nineteen hundred sixty-two. Such resolution

of the board of education, however, shall not take effect until and

unless it is approved by the mayor of such city.

9. Notwithstanding any provision of this section or any other

provision of law, in a city having a population of one million or more,

the board of education is authorized to adopt a resolution amending the

provisions governing any retirement system adopted pursuant to or

subject to the provisions of this section to the extent necessary to put

into effect a pensions-providing-for-increased-take-home-pay plan for

the fiscal year nineteen hundred sixty-seven-nineteen hundred

sixty-eight analogous to that authorized for the fiscal year nineteen

hundred sixty-two-nineteen hundred sixty-three by chapter seven hundred

eighty-nine of the laws of nineteen hundred sixty-two. Such resolution

of the board of education, however, shall not take effect until and

unless it is approved by the mayor of such city.

10. Notwithstanding any provision of this section or any other

provision of law, in a city having a population of one million or more,

the board of education is authorized to adopt a resolution amending the

provisions governing any retirement system adopted pursuant to or

subject to the provisions of this section to the extent necessary to put

into effect a pension-providing-for-increased-take-home-pay plan, in

addition to the plan authorized by subdivision nine of this section, for

members who are employees of the board of education in the titles of

attendance teacher, attendance officer, attendance teacher (Spanish

speaking), auxiliary attendance teacher, or auxiliary attendance

officer, for the period September first, nineteen hundred sixty-seven

through June thirtieth, nineteen hundred sixty-eight, analogous to that

authorized for the fiscal year nineteen hundred sixty-two--nineteen

hundred sixty-three by chapter seven hundred eighty-nine of the laws of

nineteen hundred sixty-two, provided, however, that the reduced rate of

contribution factor to be used on computing the reduction provided for

in the resolution authorized by this subdivision in the contributions of

such members may be designated by the board of education as three per

centum. Such resolution may contain provisions for a period of

retroactive applicability analogous to those contained in paragraph

thirteen of subdivision j of section B3--36.1 of the administrative code

of the city of New York, as such section was added by chapter seven

hundred eighty-seven of the laws of nineteen hundred sixty-two. Such

resolution may also provide that the amount of the reduction provided

for in the resolution in the contributions of any members to whom such

resolution applies, attributable to the period of retroactive

applicability of such resolution shall be refunded by the system without

interest. Such resolution of the board of education, however, shall not

take effect until and unless it is approved by the mayor of such city.

11. Notwithstanding any provision of this section or any other

provision of law, in a city having a population of one million or more,

the board of education is authorized to adopt a resolution amending the

provisions governing any retirement system adopted pursuant to or

subject to the provisions of this section to the extent necessary to put

into effect a pensions-providing-for-increased-take-home-pay plan for

the fiscal year nineteen hundred sixty-eight--nineteen hundred

sixty-nine analogous to that authorized for the fiscal year nineteen

hundred sixty-two--nineteen hundred sixty-three by chapter seven hundred

eighty-nine of the laws of nineteen hundred sixty-two, provided,

however, that

(1) the reduced rate of contribution factor to be used in computing

the reduction in contributions of members who are employees of the board

of education in the titles of attendance teacher, attendance officer,

attendance teacher (spanish speaking), auxiliary attendance teacher, may

be designated by the board of education as eight per centum, and

provided further, however, that

(2) the reduced rate of contribution factor to be used in computing

the reductions of any member who is eligible for the benefits analogous

to the career pension plan of the New York city employees' retirement

system, if a bill entitled "An act to amend the administrative code of

the city of New York and the military law, in relation to providing

additional rights, privileges, and benefits for members of the New York

city employees' retirement system and establishing an optional career

pension plan for certain of such members" is enacted into law, and if

the board of education adopts a resolution amending the provisions

governing any retirement system adopted pursuant to or subject to the

provisions of this section to provide a plan analogous to such career

pension plan, regardless of whether such member elects the benefits of

such analogous plan, may be designated by the board of education as four

per centum. Such resolution of the board of education, however, shall

not take effect until and unless it is approved by the mayor of such

city.

12. Notwithstanding any provisions of this section or any other

provision of law, in a city having a population of one million or more,

the board of education is authorized to adopt a resolution amending the

provisions governing any retirement system adopted pursuant to or

subject to the provisions of this section to the extent necessary to put

into effect a pensions-providing-for-increased-take-home-pay plan for

the fiscal year nineteen hundred sixty-nine--nineteen hundred seventy

analogous to that authorized for the fiscal year nineteen hundred

sixty-two--nineteen hundred sixty-three by chapter seven hundred

eighty-nine of the laws of nineteen hundred sixty-two, provided,

however, that

(1) the reduced-rate-of-contribution factor to be used in computing

the reduction in contributions of members who are employees of the board

of education in the titles of attendance teacher, attendance officer,

attendance teacher (spanish speaking), auxiliary attendance teacher, may

be designated by the board of education as eight percentum, and provided

further, however, that

(2) the reduced-rate-of-contribution factor to be used in computing

the reductions of any member who is a career pension plan member or who

is eligible to elect to become a career pension plan member under the

provisions governing any retirement system adopted pursuant to or

subject to the provisions of this section, regardless of whether such

member makes such election, may be designated by the board of education

as four percentum, and provided further, however, that

(3) the reduced-rate-of-contribution factor to be used in computing

the reductions of any member other than a member mentioned in paragraphs

one and two of this subdivision twelve may be designated by the board of

education as five per centum, and provided further, however, that

(4) such resolution of the board of education shall not take effect

until and unless it is approved by the mayor of such city.

13. Notwithstanding any provisions of this section or any other

provision of law to the contrary, in a city having a population of one

million or more, the board of education is authorized to adopt a

resolution amending the provisions governing any retirement system

adopted pursuant to or subject to the provisions of this section to the

extent necessary to put into effect a pensions-providing-for-increased-

take-home-pay plan for the fiscal year nineteen hundred

seventy--nineteen hundred seventy-one analogous to that authorized for

the fiscal year nineteen hundred sixty-two--nineteen hundred sixty-three

by chapter seven hundred eighty-nine of the laws of nineteen hundred

sixty-two, provided, however, that

(1) the reduced-rate-of-contribution factor to be used in computing

the reductions of any member who is a career pension plan member or who

is eligible to elect to become a career pension plan member under the

provisions governing any retirement system adopted pursuant to or

subject to the provisions of this section, regardless of whether such

member makes such election, may be designated by the board of education

as four percentum, and provided further, however, that

(2) the reduced-rate-of-contribution factor to be used in computing

the reductions of any member other than a member mentioned in paragraph

one of this subdivision thirteen may be designated by the board of

education as five per centum, and provided further, however, that

(3) such resolution of the board of education shall not take effect

until and unless it is approved by the mayor of such city.

14. (1) In the event that:

(a) a bill entitled "An act to amend the administrative code of the

city of New York and chapter eight hundred seventeen of the laws of

nineteen hundred sixty-nine, entitled, 'An act to amend the

administrative code of the city of New York, in relation to providing

additional rights, privileges and benefits for members of the New York

city employees' retirement system who are career pension plan members or

fifty-five-year-increased-service-fraction members, and for certain

beneficiaries of such system', in relation to establishing a new career

pension plan for certain members of the New York city employees'

retirement system" is enacted into law; and

(b) The provisions which govern a retirement system established

pursuant to this section with respect to the board of education of a

city having a population of one million or more and which were adopted

pursuant or subject to this section are amended pursuant or subject to

this section so that such provisions include a retirement plan analogous

to that set forth in such bill; no plan for pensions-providing-for-

increased-take-home-pay shall be adopted for the fiscal year nineteen

hundred seventy-one--nineteen hundred seventy-two with respect to the

members of such retirement system.

(2) In the event that such bill referred to in paragraph one of this

subdivision fourteen is not enacted into law, such board of education

referred to in paragraph one of this subdivision fourteen, is

authorized, notwithstanding any provision of this section or any other

provision of law to the contrary, to adopt a resolution amending the

provisions governing such retirement system adopted pursuant or subject

to the provisions of this section to the extent necessary to put into

effect a pensions-providing-for-increased-take-home-pay plan for the

fiscal year nineteen hundred seventy-one--nineteen hundred seventy-two

analogous to that authorized for the fiscal year nineteen hundred

sixty-two--nineteen hundred sixty-three by chapter seven hundred

eighty-nine of the laws of nineteen hundred sixty-two, provided,

however, that

(a) the reduced-rate-of-contribution factor to be used in computing

the reduction in contributions of members under such plan may be

designated by the board of education to be four per centum, and provided

further, however, that

(b) such resolution of the board of education shall not take effect

unless and until it is approved by the mayor of such city.

15. (1) In the event that:

(a) a bill entitled "An act to amend the administrative code of the

city of New York and chapter eight hundred seventeen of the laws of

nineteen hundred sixty-nine, entitled, 'An act to amend the

administrative code of the city of New York, in relation to providing

additional rights, privileges and benefits for members of the New York

city employees' retirement system who are career pension plan members or

fifty-five-year-increased-service-fraction members, and for certain

beneficiaries of such system', in relation to establishing a new career

pension plan for certain members of the New York city employees'

retirement system" is enacted into law; and

(b) the provisions which govern a retirement system established

pursuant to this section with respect to the board of education of a

city having a population of one million or more and which were adopted

pursuant or subject to this section are amended pursuant or subject to

this section so that such provisions include a retirement plan analogous

to that set forth in such bill;

no plan for pensions-providing-for-increased-take-home-pay shall be

adopted for the fiscal year nineteen hundred seventy-two--nineteen

hundred seventy-three with respect to the members of such retirement

system.

(2) In the event that such bill referred to in paragraph one of this

subdivision fifteen is not enacted into law, such board of education

referred to in paragraph one of this subdivision fifteen, is authorized,

notwithstanding any provision of this section or any other provision of

law to the contrary, to adopt a resolution amending the provisions

governing such retirement system adopted pursuant or subject to the

provisions of this section to the extent necessary to put into effect a

pensions-providing-for-increased-take-home-pay plan for the fiscal year

nineteen hundred seventy-two--nineteen hundred seventy-three analogous

to that authorized for the fiscal year nineteen hundred

sixty-two--nineteen hundred sixty-three by chapter seven hundred

eighty-nine of the laws of nineteen hundred sixty-two, provided,

however, that

(a) the reduced-rate-of-contribution factor to be used in computing

the reduction in contributions of members under such plan may be

designated by the board of education to be four per centum, and provided

further, however, that

(b) such resolution of the board of education shall not take effect

unless and until it is approved by the mayor of such city.

16. (a) As used in this subdivision, the following terms shall mean

and include:

(1) "Board of education". The board of education of a city.

(2) "City". A city having a population of one million or more.

(3) "Rules and regulations". The rules and regulations for the

government, management and control of the retirement system adopted

pursuant to this section.

(4) "Retirement system". The board of education retirement system

established pursuant to the provisions of this section in a city.

(5) (i) "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

accrued and such normal contribution had been required by law to be

determined in the manner provided for in items (ii), (iii) and (iv) of

this subparagraph.

(ii) Upon the basis of the mortality and other tables effective under

the rules and regulations 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 the

rules and regulations, in articles eleven and fourteen of the retirement

and social security law and in any other law prescribing benefits

payable by the retirement system on account of all then members and

beneficiaries, exluding 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 subparagraph eight

of this paragraph), if any, and the then liability for benefits

attributable to the annuity savings fund and to the variable annuity

savings fund.

(iii) The hypothetical normal rate of contribution with respect to the

subject fiscal year shall be the rate per centum obtained:

(A) by adding together:

(1) the present value of all then required future unfunded accrued

liability contributions for balance sheet liability purposes (as defined

in subparagraph six of this paragraph); and

(2) 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 subdivision six of section seven of the rules and regulations

(as defined in subparagraph seven of this paragraph); and

(3) the present value of future member contributions of members

subject to article fourteen of the retirement and social security law;

and

(4) the amount obtained by adding together the total funds on hand

(excluding therefrom the then amount in the annuity savings fund and in

the variable annuity savings fund) and the balance sheet liability as of

such June thirtieth next preceding the subject fiscal year; and

(B) by subtracting from the amount of the total liability determined

pursuant to item (ii) of this subparagraph the sum resulting from the

addition prescribed by sub-item (A) of this item; and

(C) by dividing the remainder resulting from the subtraction

prescribed by sub-item (B) of this item 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 subdivision two of section five of the rules and regulations

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.

(iv) 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.

(6) "Unfunded accrued liability contribution for balance sheet

liability purposes". (i) 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 items (ii)

and (iii) of this subparagraph.

(ii) 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 the rules

and regulations, 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 and

the variable annuity savings fund.

(iii) From such total liability computed pursuant to item (ii) of this

subparagraph there shall be subtracted the sum of:

(A) the present value, as of June thirtieth, nineteen hundred

seventy-four, of all future normal costs of the retirement system,

computed pursuant to the entry age normal cost method of determining

such normal costs; and

(B) the present value, as of June thirtieth, of all required future

payments, pursuant to subdivision six of section seven of the rules and

regulations (as then in effect), of installments of losses in excess of

installments of gains on dispositions of securities within the meaning

of such subdivision; and

(C) 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 seven of paragraph (c) of this subdivision)

and the total funds on hand as of such June thirtieth, excluding the

amount in the annuity savings fund and the variable annuity savings

fund, but including the amount of any unpaid moneys appropriated

pursuant to section nine of the rules and regulations.

(iv) 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 items (v) and (vi) of this subparagraph.

(v) 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 the rules and

regulations, 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 and

the variable annuity savings fund.

(vi) From such total liability computed pursuant to item (v) of this

subparagraph, there shall be subtracted the sum of:

(A) the present value, as of June thirtieth, nineteen hundred

seventy-five, of all future normal costs of the retirement system,

computed pursuant to the entry age normal cost method of determining

such normal costs; and

(B) the present value, as of such June thirtieth, of all then required

future payments, pursuant to subdivision six of section seven of the

rules and regulations (as then in effect), of installments of losses in

excess of installments of gains on dispositions of securities within the

meaning of such subdivision; and

(C) 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 eight to fourteen, inclusive of this

sub-item and the total funds on hand, as of such June thirtieth,

excluding the amount in the annuity savings fund and the variable

annuity savings fund, but including the amount of any unpaid moneys

appropriated pursuant to section nine of the rules and regulations.

(7) "Annual contribution, for balance sheet liability purposes, on

account of amortization of losses on dispositions of certain securities

within the meaning of subdivision six of section seven of the rules and

regulations". A hypothetical annual payment to the contingent reserve

fund in each of the city's fiscal year 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 subdivision six of section seven of the

rules and regulations (related to graduated crediting of gains and

amortization of losses on dispositions of certain securities) over

installments (creditable in such year) of gains on such prior

dispositions, which annual amount shall be determined in the manner

provided for in such subdivision six.

(8) "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.

(9) "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.

(10) "Deficiency contribution". The annual amount which, under the

provisions of paragraph f of subdivision three of section eight of the

rules and regulations, the board of education 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.

(11) "Contribution on account of amortization, pursuant to subdivision

six of section seven of the rules and regulations, of losses on

dispositions of certain securities". The total annual amount by which

the sum of the installments of losses, payable pursuant to subdivision

six of section seven of the rules and regulations (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 subdivision six,

exceeded the sum of the installments of gains creditable in the same

fiscal year in relation to the same disposition of securities.

(b) (1) Notwithstanding any provision of subdivision fifteen of

section two of the rules and regulations or any other provision of the

rules and regulations or any other provision of law to the contrary, for

the purpose of any actuarial valuation, determination or appraisal which

is made pursuant to the rules and regulations or the provisions of this

subdivision sixteen and which is used to determine the amount of any

contribution required to be paid by the board of education into the

contingent reserve fund or pension fund of the retirement system in the

nineteen hundred seventy-seven--nineteen hundred seventy-eight fiscal

year of the city or in any subsequent fiscal year of the city, "regular

interest" shall mean interest as defined in this paragraph and any

definition of regular interest in such rules and regulations shall not

apply to any such actuarial valuation, determination or appraisal.

(2) Subject to the provisions of item (ii) of subparagraph six of this

paragraph, for the purpose of any actuarial valuation, determination or

appraisal which is made pursuant to the rules and regulations or the

provisions of this subdivision and which is used to determine the amount

of any contribution required to be paid by the board of education into

the contingent reserve fund or pension fund of the retirement system 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.

(3) (i) Subject to the provisions of item (ii) of subparagraph six of

this paragraph and except as otherwise provided in subparagraphs seven

to sixteen, inclusive, of paragraph (c) of this subdivision 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 the rules and regulations or the

provisions of this subdivision and which is used to determine the amount

of any contribution required to be paid by the board of education into

the contingent reserve fund of the retirement system 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.

(ii) Subject to the provisions of item (ii) of subparagraph six of

this paragraph and except as otherwise provided in subparagraphs seven

to sixteen, inclusive, of paragraph (c) of this subdivision 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 the rules and regulations or the

provisions of this subdivision and which is used to determine the amount

of any contribution required to be paid by the board of education into

the contingent reserve fund of the retirement system 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.

(iii) Subject to the provisions of item (ii) of subparagraph six of

this paragraph and except as otherwise provided in subparagraphs seven

to sixteen, inclusive, of paragraph (c) of this subdivision 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 the rules and regulations or the

provisions of this subdivision and which is used to determine the amount

of any contribution required to be paid by the board of education into

the contingent reserve fund of the retirement system 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.

(4) Subject to the provisions of item (ii) of subparagraph six of this

paragraph, and except as otherwise provided in subparagraphs seven to

sixteen, inclusive, of paragraph (c) of this subdivision 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 the rules and regulations or the

provisions of this subdivision and which is used to determine the amount

of any contribution required to be paid by the board of education into

the contingent reserve fund or pension fund of the retirement system 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 the administrative

code of the city.

(5) On or after May first, nineteen hundred eighty-nine and no later

than October thirty-first of such year the retirement board of the

retirement system 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 financial services, the mayor of the city, and the members of the

city council thereof, the written recommendations of the retirement

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 subparagraph four of this paragraph.

(6) (i) Subject to the provisions of item (iv) of subparagraph three

of paragraph (c) of this subdivision, nothing contained in subparagraphs

one, two, three, four and five of this paragraph 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 subparagraphs, a rate of regular interest other

than as prescribed by the applicable provisions of subdivision fifteen

of section two of the rules and regulations and subdivision seventeen of

this section.

(ii) Subject to the provisions of section 13-638.2 of the

administrative code of the city, nothing contained in subparagraphs two,

three and four of this paragraph shall be construed as requiring the

original unfunded accrued liability contribution, as defined in item (i)

of subparagraph five of paragraph (c) of this subdivision, and the

revised unfunded accrued liability contribution, as defined in item (ii)

of such subparagraph, and the nineteen hundred eighty unfunded accrued

liability adjustment, as defined in subparagraph six of such paragraph

(c), and the nineteen hundred eighty-two unfunded accrued liability

adjustment, as defined in such subparagraph six, to be determined in any

manner other than as prescribed by the applicable provisions of such

items and such subparagraph six. Subject to the provisions of such

section 13-638.2, nothing contained in subparagraphs two, three and four

of this paragraph shall be construed as requiring any balance sheet

liability or balance sheet liability contribution computed pursuant to

the provisions of subparagraphs seven to sixteen, inclusive, of

paragraph (c) of this subdivision to be determined in any manner other

than as prescribed in such subparagraphs.

(c) (1) (i) Notwithstanding the provisions of paragraphs b and f of

subdivision three of section eight of the rules and regulations or any

other provision of the rules and regulations or any other provision of

law to the contrary;

(A) the provisions of subparagraphs two, three, four and five of this

paragraph (c), as in effect during the period from July first, nineteen

hundred seventy-seven to June thirtieth, nineteen hundred eighty, shall

govern the contributions payable by the board of education to the

contingent reserve fund of the retirement system in the city's nineteen

hundred seventy-seven--nineteen hundred seventy-eight fiscal year and in

each city fiscal year thereafter to and including the nineteen hundred

seventy-nine--nineteen hundred eighty fiscal year, and no contributions

shall be payable by the board of education to such fund in any such

fiscal year other than the contributions prescribed by the applicable

provisions of such subparagraphs two, three, four and five; and

(B) the applicable provisions of this paragraph, as in effect on and

after July first, nineteen hundred eighty, and the provisions of

sections 13-638.2, 13-695 and 13-704 of the administrative code of the

city and any other applicable laws shall govern the contributions

payable by the board of education to the contingent reserve fund in the

city's nineteen hundred eighty--nineteen hundred eighty-one fiscal year

and in each city fiscal year thereafter, and no contributions shall be

payable by the board of education to such fund in any such fiscal year

other than the contributions prescribed by the applicable provisions of

this paragraph and such sections and laws.

(ii) The contribution payable by the board of education to such

contingent reserve fund in the nineteen hundred seventy-six--nineteen

hundred seventy-seven fiscal year of the city, including, without

limitation, the contribution required by paragraph f of subdivision

three of section eight of the rules and regulations, shall be governed

by the applicable provisions of the rules and regulations as in effect

immediately prior to July first, nineteen hundred seventy-seven.

(2) Subject to the provisions of law referred to in sub-item (B) of

item (i) of subparagraph one of this paragraph, the board of education

shall contribute to the contingent reserve fund:

(i) annually an amount computed pursuant to subparagraph four of this

paragraph, to be known as the "normal contribution"; and

(i-A) all unfunded accrued liability installments as required by

section 13-638.2 of the administrative code of the city of New York 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 each city fiscal year during the period beginning with the

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, one annual installment of an

additional amount computed pursuant to item (i) of subparagraph five of

this paragraph, which shall be known as the "original unfunded accrued

liability contribution"; 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 item (ii)

of subparagraph five of this paragraph; 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

subparagraphs seven to sixteen, inclusive, of this paragraph; 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 subparagraphs seven to fifteen, inclusive,

of this paragraph; 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, 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.

(3) (i) If the nineteen hundred eighty unfunded accrued liability

adjustment determined pursuant to subparagraph six of this paragraph is

a credit, 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--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

two of this paragraph shall be reduced by the amount of one annual

installment of such nineteen hundred eighty unfunded accrued liability

adjustment.

(ii) (A) If the nineteen hundred eighty unfunded accrued liability

adjustment determined pursuant to such subparagraph six is a charge, the

board of education 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 two of this paragraph (c), one annual

installment of such nineteen hundred eighty unfunded accrued liability

adjustment.

(B) 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), (vi) and (vii) of subparagraph (2)

of this paragraph (c) and the applicable provisions of item (i) of this

subparagraph (3) and sub-item (A) of this item (ii) 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 item (vi) of subparagraph (6) of this paragraph

(c).

(C) 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), (vi) and (vii) of subparagraph

(2) of this paragraph (c) and the applicable provisions of item (i) of

this subparagraph (3) and sub-item (A) of this item (ii) and otherwise

pursuant to law shall be reduced by the amount of one annual installment

of the nineteen hundred eighty-five unfunded accrued liability

adjustment determined pursuant to item (vii) of subparagraph (6) of this

paragraph (c).

(iii) Any amount required by the provisions of items (iii), (iv), (vi)

and (vii) of subparagraph two of this paragraph and subdivision six of

section seven of the rules and regulations 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.

(iv) 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.

(v) It is hereby declared that the provisions of items (iii) and (iv)

of this subparagraph three, insofar as they relate to provisions of the

rules and regulations or of this subdivision or other laws requiring

payment of employer contributions to the retirement system prior to the

effective date of this subparagraph, express the intent of such

provisions of the rules and regulations or this subdivision or other

laws requiring such payment.

(vi) For the purpose of effectuating the nineteen hundred eighty-eight

unfunded accrued liability adjustment provided for in section 13-638.1

of the administrative code of the city of New York, contributions to the

contingent reserve fund on account of charges 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 four of

this paragraph (c) shall be deemed to be conformably modified for such

purpose.

(vii) The board of education and all other responsible obligors (as

defined in paragraph ten of subdivision a of section 13-638.2 of the

administrative code of the city of New York) shall make all payments to

the retirement system required by applicable law in accordance with the

time of payment requirements set forth in paragraph (j) of this

subdivision. Any responsible obligor which does not make all or any

portion of such required payments to the retirement system in a timely

manner in fiscal year two thousand twelve--two thousand thirteen, or in

any fiscal year thereafter, shall be required to pay interest to the

retirement system 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 the

administrative code of the city of New York). Responsible obligors shall

make such interest payments on overdue amounts to the retirement system

in the manner and at such time as the actuary deems appropriate.

(4) Normal contribution. (i) Notwithstanding the succeeding

provisions of this item or the provisions of item (i-A), (ii), (iii) or

(iv) of this subparagraph, 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 item (v) of this subparagraph.

Upon the basis of the latest mortality and other tables authorized by

the applicable provisions of the rules and regulations 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 the rules and

regulations, in articles eleven and fourteen 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, if any, and the liability for benefits attributable to

the annuity savings fund and to the variable annuity savings fund,

provided, however, that in determining such total liability 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 and to the variable annuity savings fund, and

provided further that in determining such total liability as of June

thirtieth, nineteen hundred ninety-nine and as of each succeeding June

thirtieth, the actuary shall include any other liability, as determined

by the actuary, for benefits attributable to the variable annuity

programs, and provided further that in determining such total liability

as of June thirtieth, two thousand and as of each succeeding June

thirtieth, the actuary shall include the amount, if any, as estimated by

the actuary, of the total liability of the retirement system on account

of payments which the retirement system may be required to make to any

other fund without a corresponding offset in the liabilities of the

retirement system.

(i-A) Notwithstanding any other provision of law to the contrary, for

the purpose of calculating the amount of the normal contribution

annually due from the board of education to the contingent reserve fund

pursuant to item (iv) of this subparagraph in fiscal year two thousand

five--two thousand six, and in each fiscal year thereafter, both the

total liability of the retirement system, as calculated by the actuary

in accordance with item (i) of this subparagraph, and the normal rate of

contribution, as calculated by the actuary in accordance with items (ii)

and (iii) of this subparagraph, 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 (A) the actuary shall

use for such calculations the mortality and other tables that are

applicable at the time he or she performs such calculations; (B) the

total funds on hand, as determined by the actuary pursuant to clause

five of sub-item (A) of item (ii) of this subparagraph, 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 (C) the

present value of the prospective future salaries of all members, as

computed by the actuary for the purposes of sub-item (C) of item (ii) of

this subparagraph, 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.

(ii) The normal rate of contribution shall be the rate per centum

obtained:

(A) by adding together:

(1) (a) 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 six of this paragraph, if such adjustment is a

charge; or

(b) 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;

(c) minus (whether (a) or (b) immediately preceding is applicable) the

sum of the present value of all future installments of the nineteen

hundred eighty-two unfunded accrued liability adjustment and the present

value of all future installments of the nineteen hundred eighty-five

unfunded accrued liability adjustment; and

(2) 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 two of this paragraph

(c); and

(3) the present value of all required future payments, pursuant to

subdivision six of section seven of the rules and regulations, of

installments of losses in excess of installments of gains on

dispositions of securities within the meaning of such subdivision; and

(4) 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

(5) the total funds on hand, including the amount of any unpaid money

appropriated pursuant to section nine of the rules and regulations 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 in the variable annuity savings fund; and

(6) the present value of all other future installments of accrued

liability contributions to the retirement system required by the

applicable provisions of section 13-638.2 of the administrative code of

the city of New York which are not covered by the preceding paragraphs

of this subitem (A); and

(B) by subtracting from the amount of the total liability determined

pursuant to item (i) of this subparagraph the sum resulting from the

addition prescribed by sub-item (A) of this item; and

(C) by dividing the remainder resulting from the applicable

subtraction prescribed by sub-item (B) of this item 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 subdivision two of section five of the rules

and regulations, and on the basis of regular interest.

(iii) The normal rate of contribution determined by the actuary shall

not be less than zero, shall be certified by the actuary after a

valuation and shall continue in force until the next succeeding

valuation and certification. The actuary shall make a valuation, as of

June thirtieth of each year, of the assets and liabilities of the

various funds created by the rules and regulations.

(iv)(A) The amount of the normal contribution annually due from the

board of education 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 June thirtieth next preceding such

fiscal year in which such amount is due 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.

(B) The amount of the normal contribution annually due from the board

of education 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 items (i-A), (ii) and

(iii) of this subparagraph, 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.

(C) 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

item (iv) shall mean regular interest as defined by the applicable

provisions of subparagraph three or subparagraph four of paragraph (b)

of this subdivision.

(v) (A) Notwithstanding the preceding items of this subparagraph 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 item 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 retirement system in

paragraph two of subdivision b of section 13-638.2 of the administrative

code of the city of New York.

(B) In calculating the entry age normal contribution payable in any

such fiscal year pursuant to this item, 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 (1) 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, (2) on an aggregate basis for

all members or (3) 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 sub-item.

(C) For each such fiscal year, the actuary, in his or her discretion,

shall determine, in accordance with the provisions of sub-item (B) of

this item, the methodology for calculating the entry age normal

contribution payable for that particular fiscal year.

(D) The methodology determined by the actuary in accordance with

sub-item (C) of this item may provide for the actuary to calculate the

entry age normal contribution on an individual member basis by (1)

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 (2) 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 sub-item (B) of this item.

(E) In the alternative, the methodology determined by the actuary in

accordance with sub-item (C) of this item 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

sub-item (B) of this item.

(F) In the alternative, the methodology determined by the actuary in

accordance with sub-item (C) of this item 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 sub-item (B) of

this item.

(G) (1) Where the methodology determined by the actuary in accordance

with sub-item (C) of this item 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.

(2) Where the methodology determined by the actuary in accordance with

sub-item (C) of this item 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.

(5) Unfunded accrued liability contributions.--(i) 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 (A) the accrued

liability (excluding the liability for benefits attributable to the

annuity savings fund and the variable annuity savings fund) on June

thirtieth, nineteen hundred seventy-five and (B) the total funds on

hand, excluding the amount in the annuity savings fund and the variable

annuity savings fund, but including the amount of any unpaid moneys

appropriated pursuant to section nine of the rules and regulations. No

contribution or payment to the contingent reserve fund of the retirement

system shall be made under the provisions of paragraph f of subdivision

three of section eight of the rules and regulations in the nineteen

hundred seventy-seven--nineteen hundred seventy-eight fiscal year of the

city or in any subsequent city fiscal year. The provisions of such

paragraph f shall cease to be effective on July first, nineteen hundred

seventy-seven.

(ii) (A) The revised unfunded accrued liability contribution shall be

an amount determined as prescribed in sub-items (B), (C), (D), (E), (F),

(G), (H), (I) and (J) of this item.

(B) 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 subparagraph, 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.

(C) There shall be computed, in the manner provided in sub-item (D) of

this item, 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, were 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.

(D) Such discounted value of each such installment referred to in

sub-item (C) of this item 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.

(E) 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.

(F) The discounted values of all of such installments with respect to

such fiscal years, computed as provided for in sub-items (C) and (D) of

this item, together with interest on each such installment as provided

for in sub-item (E) of this item, shall be added together.

(G) From the sum computed pursuant to sub-item (B) of this item, the

sum computed pursuant to sub-item (F) of this item shall be subtracted.

(H) 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 sub-item (G) of this item.

(I) 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 sub-item (H) of this item (ii), which

installments are hypothetically allocated by such sub-item (H) to

designated city fiscal years succeeding June thirtieth, nineteen hundred

eighty-two.

(J) 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 sub-item (I) of this item (ii), which

installments are hypothetically allocated by such sub-item (I) to

designated city fiscal years succeeding June thirtieth, nineteen hundred

eighty-eight.

(6) (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.

(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 the rules and

regulations, in articles eleven and fourteen 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, if any, and the liability for benefits attributable to

the annuity savings fund and to the variable annuity savings fund.

(B) From such total liability computed pursuant to sub-item (A) of

this item, 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 retirement system, 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

subparagraph sixteen of this paragraph); and

(3) the present value, as of such June thirtieth, of all then required

future payments, pursuant to subdivision six of section seven of the

rules and regulations, of installments of losses in excess of

installments of gains on dispositions of securities within the meaning

of such subdivision; and

(4) the present value, as of such June thirtieth, of future member

contributions of members 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 and variable annuity savings fund,

but including the amount of any unpaid moneys appropriated pursuant to

section nine of the rules and regulations.

(iii) (A) If the amount computed pursuant to sub-item (B) of item (ii)

of this subparagraph is larger than the amount computed pursuant to

sub-item (G) of item (ii) of subparagraph five of this paragraph, 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 is smaller than the amount computed pursuant to

sub-item (G) of item (ii) of subparagraph five 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 amounts which the board of

education would otherwise be required to pay to the contingent reserve

fund pursuant to items (i), (iii), (iv), (v), (vi) and (vii) of

subparagraph two of this paragraph, 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 (6),

which installment is applicable to such fiscal years, 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 (6), 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 hundred

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.

(vi) (A) The nineteen hundred eighty-two unfunded accrued liability

adjustment shall be an amount determined as prescribed in sub-items (B),

(C), (D) and (E) of this item (vi).

(B) 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 retirement system,

computed pursuant to the entry age normal cost method of ascertaining

such actuarial accrued liability.

(C) 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 retirement system,

computed pursuant to the entry age normal cost method of ascertaining

such actuarial accrued liability.

(D) 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 the applicable installments of 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 board of

education would otherwise be required to pay to the contingent reserve

fund pursuant to items (i), (iii), (iv), (vi) and (vii) of subparagraph

(2) of paragraph (c) of this subdivision sixteen 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 sub-item (B) of this item (vi) over the amount computed pursuant to

sub-item (C) of this item (vi).

(E) 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 board of education

would otherwise be required to pay to the contingent reserve fund

pursuant to items (i), (iii), (iv), (vi) and (vii) of subparagraph (2)

of paragraph (c) of this subdivision sixteen 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

sub-item (d) of this item (vi), which installments are hypothetically

allocated by such sub-item (D) to designated city fiscal years

succeeding June thirtieth, nineteen hundred eighty-eight.

(vii) (A) The nineteen hundred eighty-five unfunded accrued liability

adjustment shall be an amount determined as prescribed in sub-items (B),

(C), (D) and (E) of this item (vii).

(B) 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 retirement system, computed pursuant

to the entry age normal cost method of ascertaining such actuarial

accrued liability.

(C) 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 retirement system, computed pursuant

to the entry age normal costs method of ascertaining such actuarial

accrued liability.

(D) 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-five and ending on June thirtieth, nineteen hundred eighty-eight,

the nineteen hundred eighty-five unfunded accrued liability adjustment

shall be the applicable installments of 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-five--nineteen hundred

eighty-six fiscal year) in reduction of the amounts which the board of

education would otherwise be required to pay to the contingent reserve

fund pursuant to items (i), (iii), (iv), (vi) and (vii) of subparagraph

(2) of this paragraph (c) 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 sub-item (B) of

this item (vii) over the amount computed pursuant to sub-item (C) of

this item (vii).

(E) 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 fifteen, the

nineteen hundred eighty-five unfunded accrued liability adjustment shall

be an amount which, when credited in twenty-seven 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 board of education

would otherwise be required to pay to the contingent reserve fund

pursuant to items (i), (iii), (iv), (vi) and (vii) of subparagraph (2)

of this paragraph (c) 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-five

unfunded accrued liability adjustment computed pursuant to sub-item (D)

of this item (vii), which installments are hypothetically allocated by

such sub-item (D) to designated fiscal years succeeding June thirtieth,

nineteen hundred eighty-eight.

(7) The balance sheet liability as of June thirtieth, nineteen hundred

seventy-four shall be the sum of twenty-five million, eight hundred two

thousand, nine hundred seventy-two dollars ($25,802,972), consisting of

the sum of:

(i) the discounted value, as of June thirtieth, nineteen hundred

seventy-four, of the sum of eleven million, fifty thousand, eight

hundred eighty-eight dollars ($11,050,888), which constituted the amount

payable to the contingent reserve fund in the city's nineteen hundred

seventy-four--nineteen hundred seventy-five fiscal year by the board of

education in fulfillment of its obligations to make contributions to the

retirement system 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 ten million, seven hundred fifty-eight thousand, nine hundred

seventy-nine dollars ($10,758,979); and

(ii) the discounted value, as of June thirtieth, nineteen hundred

seventy-four, of the sum of sixteen million, three hundred two thousand,

thirty-eight dollars ($16,302,038), which constituted the amount payable

into the contingent reserve fund in the city's nineteen hundred

seventy-five--nineteen hundred seventy-six fiscal year by the board of

education in fulfillment of its obligations to make contributions to the

retirement system 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 fifteen million, forty-three thousand, nine hundred

ninety-three dollars ($15,043,993).

(8) 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 nine to sixteen, inclusive, of this paragraph.

(9) 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 eight of this paragraph, there shall be added one year's

interest on such amount at the rate of five and one-half per centum per

annum.

(10) 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, which components, for the purposes of

subparagraphs eight to sixteen, inclusive, of this paragraph, 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 subparagraph five of paragraph (a) of this

subdivision); and

(ii) the amount of the applicable installment of the unfunded accrued

liability contribution for balance sheet liability purposes (as defined

in subparagraph six of paragraph (a) of this subdivision); 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 subdivision six of section

seven of the rules and regulations (as defined in subparagraph seven of

paragraph (a) of this subdivision); 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 subparagraph eight of paragraph (a) of this subdivision);

and

(v) the amount of the annual military law contribution for balance

sheet liability purposes (as defined in subparagraph nine of paragraph

(a) of this subdivision).

(11) To the amount resulting from the addition prescribed by

subparagraph ten of this paragraph (c), 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.

(12) The amount computed pursuant to subparagraph nine of this

paragraph 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) shall be added to the

amount computed pursuant to subparagraph ten of this paragraph in

relation to the subject fiscal year.

(13) From the amount computed pursuant to subparagraph twelve 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 board of education 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 subparagraphs two and three of this paragraph, as then

in effect; and

(B) the installment of the deficiency contribution (as defined in

subparagraph ten of paragraph (a) of this subdivision) or the

installment of the original unfunded accrued liability contribution (as

defined in item (i) of subparagraph five of this paragraph), as the case

may be, payable in the subject fiscal year; and

(C) the amount of the contribution on account of amortization,

pursuant to subdivision six of section seven of the rules and

regulations, of losses on dispositions of certain securities (as defined

in subparagraph eleven of paragraph (a) of this subdivision) 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 thirteen at the rate of five and one-half per centum per

annum from January first of the subject fiscal year to June thirtieth

thereof.

(14) The remainder resulting from the subtraction prescribed by

subparagraph thirteen of this paragraph shall be the balance sheet

liability as of June thirtieth of the subject fiscal year.

(15) 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 eight to fourteen, inclusive, of this paragraph.

(16) 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.

(16-a) 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 (16) of this paragraph (c), which installments are

hypothetically allocated by such subparagraph (16) to designated city

fiscal years succeeding June thirtieth, nineteen hundred eighty-two.

(16-b) 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 (16-a) of this paragraph (c), which

installments are hypothetically allocated by such subparagraph (16-a) to

designated city fiscal years succeeding June thirtieth, nineteen hundred

eighty-eight.

(17) Notwithstanding any provision of the rules and regulations or any

other provision of law to the contrary, whenever the retirement board,

on the recommendation of the actuary, shall determine that it is

necessary to increase the reserves held in the annuity reserve fund, the

pension reserve fund or the pension fund, such board may direct that the

amount so needed shall be transferred thereto from the contingent

reserve fund.

(d) (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 of the retirement

system.

(2) Subject to the provisions of paragraph (f) of this subdivision,

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) (i) Subject to the provisions of paragraph (f) of this

subdivision, 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.

(ii) Subject to the provisions of paragraph (f) of this subdivision,

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.

(iii) Subject to the provisions of paragraph (f) of this subdivision,

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.

(iv) Subject to the provisions of paragraph (f) of this subdivision,

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 subparagraphs (1), (2) and

(3) of this paragraph 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 paragraph shall be construed as applicable to any

member who is subject to the provisions of article fourteen or article

fifteen of the retirement and social security law.

(e) (1) Subject to the provisions of paragraph (f) of this

subdivision, 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 paragraph (f) of this subdivision, 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) (i) Subject to the provisions of paragraph (f) of this subdivision

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.

(ii) Subject to the provisions of paragraph (f) of this subdivision,

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.

(iii) Subject to the provisions of paragraph (f) of this subdivision,

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.

(iv) Subject to the provisions of paragraph (f) of this subdivision,

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 paragraph (e)

shall be construed as applicable to any member who is subject to the

provisions of article fourteen or article fifteen of the retirement and

social security law.

(f) (1) The provisions of subparagraph (2) of paragraph (d) of this

subdivision and of subparagraphs (1) and (2) of paragraph (e) of this

subdivision, 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-two, 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 thirty-two of the rules and

regulations. Nothing contained in paragraphs (d) and (e) of this

subdivision 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) (i) The provisions of item (i) of subparagraph (3) of paragraph

(d) of this subdivision sixteen, to the extent that such item grants

special interest for any period prior to December sixteenth, nineteen

hundred eighty-two, and the provisions of item (i) of subparagraph (3)

of paragraph (e) of this subdivision, to the extent that such item

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 thirty-two of the rules and

regulations.

(ii) The provisions of item (iv) of subparagraph (3) of paragraph (d)

of this subdivision sixteen, to the extent that such item grants special

interest for any period prior to the date of enactment of this item (ii)

of this subparagraph (2) of this paragraph (f) (as such date is

certified, pursuant to section forty-one of the legislative law), and

the provisions of item (iv) of subparagraph (3) of paragraph (e) of this

subdivision, to the extent that such item 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 thirty-two

of the rules and regulations.

(3) Nothing contained in paragraphs (d) and (e) of this subdivision

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.

(g) (1) As used in this paragraph, the term "funds" shall mean the

funds created in accordance with the provisions of the rules and

regulations other than the variable annuity funds provided for by the

rules and regulations.

(2) Subject to the provisions of subparagraph (4) of this paragraph,

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 created in accordance with the provisions of the rules and

regulations, 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.

(3) Subject to the provisions of subparagraph (4) of this paragraph,

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 created in accordance with the provisions of the rules and

regulations, 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.

(4) (i) Subject to the provisions of subparagraph (5) of this

paragraph (g), 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 the rules and regulations, 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.

(ii) Subject to the provisions of subparagraph (5) of this paragraph,

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 the rules

and regulations, 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.

(iii) Subject to the provisions of subparagraph (5) of this paragraph

(g), 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

the rules and regulations, 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.

(iv) Subject to the provisions of subparagraph (5) of this paragraph

(g), 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 the

rules and regulations, 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.

(5) The provisions of subparagraphs (2), (3) and (4) of this paragraph

shall not apply to or affect (i) the allowance of interest on or the

crediting of interest to accounts of members or discontinued members in

the annuity saving fund or (ii) the allowance of interest on or the

crediting of interest to reserves-for-increased-take-home-pay of members

or discontinued members or (iii) the determination of the amount of any

benefit payable to any member or beneficiary.

(h-1) 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 the

administrative code of the city.

(h-2) The provisions of paragraph (d) of this subdivision, as such

paragraph applies to the contributions made by a member and the benefits

provided thereby, shall apply separately and independently to the

tax-deferred annuity net contributions, if any, of such member and the

benefits provided thereby, except as otherwise provided by section

thirty-three of the rules and regulations.

(h-3) The provisions of subdivisions f and h of section 13-638.2 of

the administrative code of the city (to the extent that such

subdivisions f and h apply to this retirement system), as such

subdivisions f and h apply to the contributions made by a member and the

benefits provided thereby, shall apply separately and independently to

the tax-deferred annuity net contributions, if any, of such member and

the benefits provided thereby, except as otherwise specified in section

thirty-three of the rules and regulations.

(i) (1) Notwithstanding the provisions of section nine of the rules

and regulations or any other provision of the rules and regulations or

any other law to the contrary, but subject to the provisions of

subparagraphs two, three and four of this paragraph, all income,

interest and dividends derived from deposits and investments authorized

by the rules and regulations, which income, interest and dividends were

heretofore or are hereafter received during any fiscal year commencing

on or after July first, nineteen hundred eighty, shall be used in such

fiscal year for the purposes hereinafter specified in this subparagraph

(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 retirement system 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 paragraph a of subdivision two of section

seven of the rules and regulations, and to pay into such funds the

amounts of supplementary interest, if any, required to be so paid in

such fiscal year under the provisions of paragraph (g) of this

subdivision, 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 provisions of paragraph (d) of this subdivision, 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 provisions of

paragraph (e) of this subdivision;

(B) second, to pay into the contingent reserve fund the amount of any

losses in excess of gains (i) which net losses the retirement system

sustained during such fiscal year by reason of sales or other

dispositions of securities, and (ii) for which net losses the retirement

system is required to be reimbursed in such fiscal year, and (iii) to

which net losses subdivision six of section seven of the rules and

regulations, 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 items

(A) and (B) of this subparagraph, 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) (A) Notwithstanding any other provision of this subdivision or any

other law to the contrary, the term "all income, interest and dividends

derived from deposits and investments", as used in paragraph (f) 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 retirement system

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 (a) of this subdivision prior to such July first)

as meaning the remainder obtained by subtracting from such income,

interest and dividends the sum of (i) 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 provision of subdivision two of section seven

of the rules and regulations and this subdivision and (ii) the amount of

any losses in excess of gains (1) which net losses were sustained by the

retirement system during such fiscal year and which net losses were

sustained by reason of sales or other dispositions of securities, and

(2) to which net losses the provisions of subdivision six of section

seven of the rules and regulations do not apply.

(B) for the purposes of the order of priority governing the

disposition of such remainder in the payment fiscal year with respect to

each such obligations fiscal year (as such disposition was prescribed by

the provisions of this subdivision as in effect during each such payment

fiscal year) the provisions of items (A) and (B) of subparagraph (i) of

such paragraph (f) shall be deemed to have been inapplicable and the

order of priority for such disposition shall be first, the use set forth

in item (C) of such subparagraph, second, the use set forth in item (D)

of such subparagraph, third, the use set forth in item (E) of such

subparagraph and fourth, the use set forth in item (F) of such

subparagraph, as such items were in effect during such payment fiscal

year.

(3) (a) All income, interest and dividends which were derived from

deposits and investments authorized by the rules and regulations 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 in each

such fiscal year for the purposes hereinafter stated in this

subparagraph, in the order of priority herein stated, as follows:

(A) first, (i) to pay into the funds of the retirement system 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 paragraph a of subdivision two of section seven of the

rules and regulations 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 paragraph (d) of this subdivision, 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 paragraph (d) of this subdivision, 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

paragraph (e) of this subdivision;

(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

retirement system 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 retirement system is required to be reimbursed in such

fiscal year, and (iii) to which net losses subdivision six of section

seven of the rules and regulations, 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 retirement system sustained

during such fiscal year by reason of sales of securities within the

meaning of subdivision six of section seven of the rules and regulations

and which the board of education would otherwise be required to amortize

pursuant to such subdivision, 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

subdivision and which would otherwise be required by such subdivision to

be credited in favor of the board of education in installments.

(b) If the total amount of such income, interest and dividends

received during each such fiscal year referred to in item (a) of this

subparagraph is in excess of the total amount required to make, in the

same fiscal year, the payments prescribed by sub-items (A), (B) and (C)

of such item (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.

(4) Nothing contained in subparagraphs one, two and three of this

paragraph shall be construed as applicable to income, interest and

dividends resulting from deposits or investments made under the variable

annuity program of the retirement system.

(j)(1) The board of education or the New York city school construction

authority shall make monthly payments, in twelve equal installments,

with respect to the respective obligations which such board or authority

incurs to pay sums to the retirement system.

(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.

(2-a) Where a responsible obligor (as defined in paragraph ten of

subdivision a of section 13-638.2 of the administrative code of the city

of New York) is required to make payments to the retirement system

pursuant to applicable provisions of law in fiscal year two thousand

twelve--two thousand thirteen, and in any fiscal year thereafter, and

the provisions of this paragraph or the provisions of any other

applicable law do not otherwise specifically require such responsible

obligor to make such payments by a particular date or dates during such

fiscal year, such responsible obligor shall make such payments either

(i) in total on or before January first of such fiscal year, or (ii) in

twelve equal monthly installments, as determined by the actuary, with

each monthly installment to be paid on or before the last day of each

month.

(3) The retirement board of the retirement system may waive the

requirements of the foregoing provisions of this paragraph with respect

to time of payment to such system, 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.

17. (a) For the purposes of this subdivision, the terms "rules and

regulations" and "retirement system" shall have the meanings set forth

in subparagraphs three and four, respectively, of paragraph (a) of

subdivision sixteen of this section.

(b) The following terms, as used in this subdivision, shall have the

following meanings, unless a different meaning is plainly required by

the context:

(1) "Member." Any person included in the membership of the retirement

system as provided in section three of the rules and regulations.

(2) "Actuarial equivalent benefit." Any benefit which pursuant to the

rules and regulations or by law is required to be an actuarial

equivalent or pursuant to the rules and regulations or by law is

required to be determined on the basis of an actuarial equivalent.

(3)(i) "Seven percent member for actuarial equivalent benefit

purposes." A member who meets all of the following conditions:

(A) paragraph (c) of this subdivision (relating to the definition of

members to whom regular interest at seven per centum per annum,

compounded annually, applies) applies to such member; and

(B) an actuarial equivalent benefit (other than a variable annuity

program benefit) has become payable by the retirement system to or on

account of such member; and

(C) it is provided by a resolution adopted by the retirement 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 subparagraph thirteen of this

paragraph) shall be used to calculate such actuarial equivalent benefit.

(ii) Except in cases to which the modified Option 1 pension

computation formula applies pursuant to a resolution adopted by the

retirement board, nothing contained in sub-item (C) of item (i) of this

subparagraph 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

retirement board resolution to be made through the use of a

sex-differentiated mortality table.

(4) "Tier I member." A member whose benefits (other than a

supplemental retirement allowance) are prescribed by the rules and

regulations and who is not subject to the provisions of article eleven,

article fourteen or article fifteen of the retirement and social

security law.

(5) "Tier II member." A member who is subject to the provisions of

article eleven of the retirement and social security law.

(6) "Tier III member." A member who is subject to the provisions of

article fourteen of the retirement and social security law.

(7) "Tier IV member." A member who is subject to the provisions of

article fifteen of the retirement and social security law.

(8) "Tier III member entitled to a vested benefit." A Tier III member

who is entitled to a deferred vested benefit under the provisions of

section five hundred sixteen of the retirement and social security law.

(9) "Tier IV member entitled to a vested benefit." A Tier IV member

who is entitled to a deferred vested benefit under the provisions of

section six hundred twelve of the retirement and social security law.

(10) "Education service." Service as a paid official or employee of

the board of education of the city of New York as now constituted, or of

any prior board, body or agency of which it is the successor in school

affairs in the territory now comprised within the city and school

district of New York, or the New York city school construction

authority, and allowable as provided in section four of the rules and

regulations.

(11) "Discontinued member." A fifty-five-year-increased-service-

fraction member (as defined in subdivision thirty-one of section two of

the rules and regulations) who has discontinued education-service and

has a vested right to a deferred retirement allowance under the

provisions of section thirty-two of the rules and regulations.

(12) "Variable annuity program benefit." Any benefit under the

variable annuity program of the retirement system which is payable from

the variable annuity reserve fund or the variable pension reserve fund.

(13) (i) "Modified Option 1 pension computation formula." The method

of computing the pension component of an Option 1 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 (or is deemed to have selected) Option 1 as to such pension

component, which method of computation is as prescribed by the

succeeding items of this subparagraph.

(ii) 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.

(iii) 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:

(A) such present value determined on the basis of gender-neutral

nortality tables and an interest assumption consisting of regular

interest of seven per centum per annum, compounded annually; or

(B) 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; or

(C) 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.

(iv) 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:

(A) the present value, as it was at the time of such member's

retirement, of such component; plus

(B) 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 item (v) of this subparagraph;

shall be equal to the Option 1 initial reserve determined for such

pension component with respect to such member pursuant to the provisions

of item (ii) of this subparagraph.

(v) 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 item (iii) of this

subparagraph, 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 item

(iii) 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.

(vi) In relation to the Option 1 benefits determined pursuant to the

method of computation set forth in this subparagraph by reason of

discontinuance of education service by a discontinued member, the phrase

"time of such member's retirement" as set forth in items (iii) and (iv)

of this subparagraph, shall be deemed, for the purposes of this

subparagraph, to mean the date of commencement of the retirement

allowance of such discontinued member.

(14) "Selection of mode of benefit." The choice made by a member (as

permitted by and pursuant to the requirements of the rules and

regulations or applicable 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 the rules and regulations or applicable law, to select the

maximum benefit or an option.

(15) "Best-of-three-computations method." (i) A method (as prescribed

by a resolution of the retirement board of the retirement system) under

which a retirement allowance (or portion thereof) payable to a member is

required to be determined for such member so that:

(A) if such retirement allowance (or portion thereof) does not include

a variable annuity program benefit, such retirement allowance is the

greatest of:

(1) 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

(2) 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

(3) 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; and

(B) if such retirement allowance (or portion thereof) includes a

variable annunity program benefit, then the part of such retirement

allowance (or portion thereof) other than any variable annuity program

benefit is determined in the manner provided for by sub-item (A) of this

item and such variable annuity program benefit (or portion thereof) is

the greatest of:

(1) such variable annuity program benefit (or portion thereof)

determined on the basis of gender-neutral mortality tables and a uniform

rate of interest of four percent, as such rate of interest is provided

for in section forty-four of the rules and regulations; or

(2) such variable annuity program benefit (or portion thereof)

determined on the basis of female mortality tables and such uniform rate

of interest of four percent; or

(3) such variable annuity program benefit (or portion thereof)

determined on the basis of male mortality tables and such uniform rate

of interest of four percent.

(ii) Where, under the provisions of any such resolution of the

retirement board, the modified Option 1 pension computation formula (as

defined in subparagraph thirteen of this paragraph) 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.

(16) "Person entitled to a recomputation of benefits." Any person who

meets all of the conditions stated below in this subparagraph:

(i) 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 termination date of eligibility for option

re-selection (as defined in subparagraph nineteen of this paragraph),

(A) retired or retires for age or service or superannuation or for

ordinary or accident disability, or (B) discontinued or discontinues

education service so as to become a discontinued member, or (C)

terminated or terminates employment so as to become a Tier III member

entitled to a vested benefit or a Tier IV member entitled to a vested

benefit; and

(ii) such person's retirement allowance (or portion thereof), by

reason of such retirement or discontinuance of education service or

termination of employment, is required by a resolution adopted by the

retirement board to be re-determined pursuant to (A) the

best-of-three-computations method (as defined in subparagraph fifteen of

this paragraph), or (B) the gender-neutral computations method (as

defined in subparagraph eighteen of this paragraph); and

(iii) a first payment (if such person, at the time of retirement,

discontinuance of education service or termination of employment, was a

Tier I member, Tier II member or Tier III member) on account of his or

her retirement allowance (as such retirement allowance was determined

prior to the termination date of eligibility for option re-selection)

was made prior to such termination date of eligibility for option

re-selection; or (if such person, at the time of retirement, or

termination of employment, was a Tier IV member), his or her effective

date of retirement (or date of commencement of benefits, if he or she

was a Tier IV member entitled to a vested benefit) occurred prior to the

termination date of eligibility for option re-selection.

(17) "Joint and survivor option." (i) Any option under which, at the

time when such option is selected, a choice is made which includes both:

(A) a benefit payable for the lifetime of the retired or vested member

by whom or in whose behalf such option is selected; and

(B) a benefit (1) which consists of an amount equal to or constituting

a percentage of such retired or vested member's benefit and (2) which is

payable for the lifetime of a designated beneficiary selected at the

time when such option is selected.

(ii) In any case where an option described in item (i) of this

subparagraph 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.

(18) "Gender-neutral computations method." A method (as prescribed by

a resolution of the retirement board of the retirement system) under

which a retirement allowance (or portion thereof) payable to a member is

required to be determined in the following manner:

(i) if such retirement allowance (or portion thereof) does not include

a variable annuity program benefit, such retirement allowance (or

portion thereof) is determined on the basis of gender-neutral mortality

tables and regular interest at the rate of seven per centum per annum,

without reference to any other actuarial mortality or interest

assumption; or

(ii) if such retirement allowance (or portion thereof) includes a

variable annuity program benefit, then the part of such retirement

allowance (or portion thereof) other than any variable annuity program

benefit is determined in the manner provided for by item (i) of this

subparagraph, and such variable annuity program benefit (or portion

thereof) is determined on the basis of gender-neutral mortality tables

and a uniform rate of interest of four percent (as such rate of interest

is provided for in section forty-four of the rules and regulations),

without reference to any other actuarial mortality or interest

assumption.

(19) "Termination date of eligibility for option re-selection" shall

mean October first, nineteen hundred eighty-seven, provided that if the

executive director of the retirement system certifies to the retirement

board that as of such October first, or any later termination date which

the retirement board may establish pursuant to the provisions of this

subparagraph nineteen, it will not be administratively feasible to

process benefits (including conversion from fixed to variable benefits

and vice versa) under the best-of-three-computations method (as defined

in subparagraph fifteen of this paragraph (b)) and/or the gender-neutral

computations method (as defined in subparagraph eighteen of this

paragraph (b)) for any persons who are entitled, pursuant to law and/or

retirement board resolution, to benefits so computed, then the

retirement board, by resolution, may extend the termination date of

eligibility for option re-selection, as applicable to such persons, to a

later date, provided further, however, that any such extension or

extensions directed by the retirement board upon such certification or

certifications shall not result in any such extended termination date

later than eighteen months after October first, nineteen hundred

eighty-seven. In the event that any such extension is directed by a

resolution of the retirement board adopted prior to the date of

enactment of this subparagraph nineteen, such extension, upon the

enactment of this subparagraph, shall be valid and effective as of the

date of adoption of such resolution in the same manner and to the same

extent as if such enactment had occurred before such date of adoption.

(c) Notwithstanding any provision of subdivision fifteen of section

two of the rules and regulations or any other law to the contrary,

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 paragraphs (d), (e), (f), (g), (h), (i), (j), (k), (l),

(m), (n) and (o) of this subdivision, interest at seven per centum per

annum, compounded annually.

(d) (1) (i) Subject to the provisions of items (ii) and (iii) of this

subparagraph, 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 (other than

a variable annuity program benefit) payable to or on account of any

seven percent member for actuarial equivalent benefit purposes.

(ii) Where an actuarial equivalent benefit is required by retirement

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 subparagraph

thirteen of paragraph (b) of this subdivision), the actuarial interest

assumptions used in making such determination shall be as prescribed in

such formula.

(iii) Where it is provided by board resolution that a portion of an

actuarial equivalent benefit shall be determined for any seven percent

member for actuarial equivalent benefit purposes 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.

(2) 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 paragraph (c) of this subdivision or in subparagraph one of

this paragraph shall be construed as requiring that in the determination

of any actuarial equivalent benefit (other than a variable annuity

program 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 other than regular interest, as prescribed by the

applicable provisions of subdivision fifteen of section two of the rules

and regulations.

(e) The provisions of subparagraph one of paragraph (d) of this

subdivision shall not apply to any person who, prior to August first,

nineteen hundred eighty-three, retired as a member of the retirement

system for age or service or superannuation or for ordinary or accident

disability and who was such a retiree immediately prior to such August

first; provided, however, that where any such retiree retired pursuant

to subdivision two of section ten of the rules and regulations or

retired for ordinary or accident disability, and such retiree re-entered

or re-enters education service and on or after July thirty-first,

nineteen hundred eighty-three, was or is restored to membership in the

retirement system, the provisions of such subparagraph one, from and

after such date of restoration to membership, shall apply to such

restored member 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 retirement; provided further that nothing contained in the

preceding provisions of this paragraph shall be construed as making

subparagraph one of such paragraph (d) 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.

(f) (1) Subject to the provisions of subparagraph two of this

paragraph, the provisions of subparagraph one of paragraph (d) of this

subdivision shall not apply to any Tier I or Tier II member who, (A)

prior to August first, nineteen hundred eighty-three discontinued

service under such circumstances that such member became a discontinued

member and acquired a vested right to receive a retirement allowance

pursuant to section thirty-two of the rules and regulations (and, in the

case of a Tier II member, article eleven of the retirement and social

security law), and (B) was such a discontinued member immediately prior

to such August first.

(2) If such a discontinued member returned or returns to education

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 became or becomes an active member pursuant to

the applicable provisions of such section thirty-two, the provision of

subparagraph one of such paragraph (d) 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 subparagraph shall

be construed as making the provisions of subparagraph one of such

paragraph (d) 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.

(3) Subject to the provisions of subparagraph four of this paragraph,

the provisions of subparagraph one of paragraph (d) of this subdivision

shall not apply to any Tier III or Tier IV member who, (i) prior to

August first, nineteen hundred eighty-three, terminated employment under

such circumstances that such member became a Tier III member entitled to

a vested benefit or a Tier IV member entitled to vested benefit and (ii)

had such status immediately prior to such August first.

(4) If a member who became entitled to a vested benefit as described

in subparagraph three of this paragraph returned or returns to

education-service and, on or after July thirty-first, nineteen hundred

eighty-three and before payability of his or her vested benefit began or

begins, resumed or resumes status as an active member of the retirement

system, the provisions of subparagraph one of paragraph (d) of this

subdivision shall apply to him or her on and after the date of such

resumption of active membership, providing that nothing contained in the

preceding provisions of this subparagraph shall be construed as making

the provisions of subparagraph one of such paragraph (d) 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 of subsequent discontinuance of service so as to qualify

for benefits.

(g)(1) Subject to the provisions of subparagraph two of this paragraph

and to the provisions of paragraph (i) of this subdivision, the

selection of mode of benefit (as defined in subparagraph fourteen of

paragraph (b) of this subdivision) which, prior to the termination date

of eligibility for option re-selection (as defined in subparagraph

nineteen of paragraph (b) of this subdivision), a person entitled to a

recomputation of benefits (as defined in subparagraph sixteen of such

paragraph (b)) made or makes in relation to the retirement allowance (or

any component thereof) which became or becomes payable to him or her

prior to such termination date of eligibility for option re-selection,

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 or the

gender-neutral computations method, and any such person entitled to a

recomputation of benefits pursuant to the best-of-three-computations

method or the gender-neutral computations method shall not be entitled

to make any change in such selection of mode of benefit.

(2) (i) Notwithstanding the provisions of subparagraph one of this

paragraph, a person entitled to a recomputation of benefits shall be

entitled, to the extent and in the manner prescribed in the succeeding

items of this subparagraph, to change the original selection of mode of

benefit applicable to the retirement allowance (or any component

thereof) which became or becomes payable to him or her prior to the

termination date of eligibility for option re-selection.

(ii) In any case where the original selection of mode of benefit of a

person entitled to a recomputation of benefits was a selection of a

joint and survivor option (as defined in subparagraph seventeen of

paragraph (b) of this subdivision), no change from such original

selection of a joint and survivor option may be made under this

subparagraph 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 subparagraph, his or her original selection

of such joint and survivor option.

(iii) Except for a change of selection of mode of benefit prohibited

by item (ii) of this subparagraph, any original selection of mode of

benefit may be changed pursuant to this subparagraph to another

selection of mode of benefit, provided all of the conditions set forth

in items (iv), (vi) and (viii) of this subparagraph are met.

(iv) Subject to the provisions of items (vii) and (viii) of this

subparagraph, a person entitled to a recomputation of benefits may,

pursuant to this subparagraph, effect any such permissible change of his

or her original selection of mode of benefit by executing, acknowledging

and filing with the retirement system, within the applicable period of

time prescribed by item (vi) of this subparagraph, 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.

(v) The retirement system shall mail to each person entitled to a

recomputation of benefits a letter showing amounts of benefits, as

recomputed for such person under the best-of-three-computations method

or the gender-neutral 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.

(vi) 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 items (iii) and (iv) of this subparagraph shall be sixty days

after the date of issuance set forth in such letter mailed to such

person pursuant to item (v) of this subparagraph; provided, however,

that if, pursuant to the request of such person, a later letter setting

forth benefits information in relation to a new selection of a mode of

benefit is mailed to such person by the retirement system, 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.

(vii) Upon the filing of a new selection of mode of benefit pursuant

to this subparagraph 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 termination date of eligibility for

option re-selection.

(viii) No new selection of mode of benefit filed pursuant to the

preceding items of this subparagraph 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 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 age

or 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 or

discontinued sanitation member or Tier III member entitled to a vested

benefit or Tier IV member entitled to a vested benefit), 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.

(h) Subject to the provisions of paragraph (i) of this subdivision, in

any case where a member of the retirement system who retired before

August first, nineteen hundred eighty-three pursuant to subdivision two

of section ten of the rules and regulations or for ordinary or accident

disability re-entered or re-enters its membership on or after July

thirty-first, nineteen hundred eighty-three, nothing contained in

paragraphs (c), (d) and (e) of this subdivision shall be construed as

authorizing or permitting him or her to change any selection of mode of

benefit (as defined in subparagraph fourteen of paragraph (b) of this

subdivision) 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.

(i) Nothing contained in paragraph (g) or paragraph (h) of this

subdivision shall be construed as preventing:

(1) any person (A) who, during the period beginning on August first,

nineteen hundred eighty-three and ending on the date next preceding the

date of enactment (as certified pursuant to section forty-one of the

legislative law) of this paragraph retired or retires pursuant to

subdivision two of section ten of the rules and regulations or for

ordinary or accident disability and (B) who is subject to such paragraph

(g) and (C) who on or after July thirty-first, nineteen hundred

eighty-three, re-entered or re-enters education service and again became

or becomes a member of the retirement system; or

(2) any re-entered member referred to in such paragraph (h); upon his

or her subsequent retirement, from exercising any right, which any other

applicable law or any provision of the rules and regulations grants to

him or her under such circumstances, to make a selection of mode of

benefit (as defined in subparagraph fourteen of paragraph (b) of this

subdivision).

(j) Notwithstanding any provisions of paragraph (c) of this

subdivision prescribing a rate of regular interest of seven per centum

per annum, compounded annually, for specified members described in such

paragraph, 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.

(k) (1) Where any variable annuity program benefit (as defined in

subparagraph twelve of paragraph (b) of this subdivision) which is an

actuarial equivalent benefit (as defined in subparagraph two of such

paragraph (b)) is payable to any person by reason of:

(i) the retirement of a member for age or service or superannuation or

for ordinary or accident disability, where such retirement occurred on

or after August first, nineteen hundred eighty-three or hereafter

occurs; or

(ii) discontinuance of service or termination of employment of a

member, where such discontinuance or termination occurred or occurs on

or after such August first under such circumstances that such member

became or becomes (A) a discontinued member possessing a vested right to

receive a retirement allowance pursuant to section thirty-two of the

rules and regulations (and, in the case of a Tier II member, article

eleven of the retirement and social security law) or (B) a Tier III

member entitled to a vested benefit or a Tier IV member entitled to a

vested benefit; or

(iii) the death, on or after such August first, of a member:

the rate of interest used to determine such variable annuity program

benefit shall be that prescribed by section forty-four of the rules and

regulations.

(2) The retirement board may by resolution direct that different

computations, based on different mortality tables, shall be used to

determine separate portions of a variable annuity program benefit

payable as described in subparagraph one of this paragraph.

(1) In any case where any provision of this subdivision has the

effect, in relation to any person, of amending, modifying or

supplementing any provision of the rules and regulations referred to in

subdivision f of section thirty-three of the rules and regulations

(relating to the tax-deferred annuity program of the retirement system),

such provisions of the rules and regulations, for the purpose of

applying such subdivision f to such person, shall be deemed to include

such amendment, modification or supplementation.

(m) Modified Option 1 pension computation formula. (1) The retirement

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:

(i) became members prior to the date of enactment (as certified

pursuant to section forty-one of the legislative law) of this

subdivision; and

(ii) retired or retire on or after August first, nineteen hundred

eighty-three, for age or service or superannuation or for ordinary or

accident disability, or on or after such August first, discontinued or

discontinue service so as to become discontinued members; shall be

determined under the modified Option 1 pension computation formula.

(2) If the retirement board makes a direction for use of such formula

pursuant to the provisions of subparagraph one of this paragraph, it may

also direct by resolution:

(i) 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

retirement allowance shall be determined on the basis of gender-neutral

mortality tables and regular interest of seven per centum per annum,

compounded annually; and

(ii) 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

(iii) that where any member subject to the modified Option 1 pension

computation formula retired before the effective date of the retirement

board resolution adopted pursuant to subparagraph one of this paragraph,

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 prescibed in such resolution, may elect the

method of Option 1 benefit determination set forth in items (i) and (ii)

of this subparagraph.

(3) 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 item (iii) of

subparagraph one of paragraph (d) of this subdivision to reflect

different computations of separate portions of such benefits 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 item (iii).

(n) Any reference in this subdivision to retirement for service shall

be deemed, for the purpose of this subdivision, to include retirement

pursuant to the provisions of subdivision two of section ten of the

rules and regulations.

(o) 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 subdivision shall be the rate

of regular interest which was applicable, under the provisions of the

rules and regulations 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 paragraphs of this subdivision 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.

(p) (1) In any case where:

(i) a conversion of a fixed benefit or portion thereof to a variable

benefit is elected pursuant to section forty-two of the rules and

regulations; and

(ii) pursuant to any provision of law and/or the rules and regulations

and/or any resolution of the retirement board adopted thereunder, the

rate of regular interest and/or the mortality tables which were required

to be used in the actuarial determination of such fixed benefit being

converted, are different from the rate of regular interest and/or

mortality tables would have been required to be used to determine a like

variable benefit as of the same date (hereinafter referred to as the

"calculation date") as of which such fixed benefit was required to be

determined as an actuarial equivalent; the composition of the variable

portion of each instalment of benefit for each month of the conversion

period shall be determined in the manner prescribed in subparagraph two

of this paragraph (p).

(2) The amount, in units, of the variable portion for any such

conversion month to which subparagraph one of this paragraph applies

shall be equal to the number of units in the previous month's variable

portion, if any, plus a number of units which is the actuarial

equivalent, as of the calculation date, of the fixed portion converted

each month. Such actuarial equivalent units for each such month shall be

determined on the basis of the unit value for such month, in accordance

with a scientific formula which recognizes the difference in the rates

of regular interest and/or mortality tables referred to in subparagraph

one of this paragraph.

(3) In any case where:

(i) a conversion of a variable benefit is elected pursuant to section

forty-two of the rules and regulations; and

(ii) pursuant to any provision of law and/or the rules and regulations

and/or any resolution of the retirement board adopted thereunder, the

rate of regular interest and/or mortality tables which were required to

be used in the actuarial determination of such variable benefit being

converted are different from the rate of regular interest and/or

mortality tables which would have been required to be used to determine

a like fixed benefit as of the same date (hereinafter referred to as the

"calculation date") as of which such variable benefit was required to be

determined as an actuarial equilvalent; the composition of the fixed

portion of each instalment of benefit for each month of the conversion

period shall be determined in the manner prescribed in subparagraph four

of this paragraph.

(4) The amount of the fixed portion for any such conversion month to

which subparagraph three of this paragraph applies shall be equal to the

previous month's fixed portion, if any, plus a fixed amount which is the

actuarial equivalent, as of the calculation date, of the number of units

converted each month. Such actuarial equivalent fixed amount for each

such month shall be determined on the basis of the unit value for such

month, in accordance with a scientific formula which recognizes the

difference in the rates of regular interest and/or mortality tables

referred to in subparagraph three of this paragraph.

(q) Notwithstanding any other provision of this section, an option

selection made pursuant to this subdivision and the rules and

regulations governing such choice previously filed by a member or

retired member may be changed no later than thirty days following the

date of payability of his or her retirement allowance. A retired member

who has been retired for disability may change an option selection

previously filed no later than (1) thirty days following the date on

which such member's application for disability retirement was approved

by the retirement board or (2) thirty days following the date on which

such retiree was retired for disability, whichever is later.

18. (a) The following terms, as used in this subdivision, shall have

the following meanings, unless a different meaning is plainly required

by the context:

(1) "Board of education". The board of education of a city.

(2) "Board of education retirement system". The board of education

retirement system established pursuant to the provisions of this section

in a city.

(3) "City". A city having a population of one million or more.

(4) "Rules and regulations". The rules and regulations for the

government, management and control of the board of education retirement

system adopted pursuant to the provisions of this section.

(5) "Provisional employee". Any person employed by the board of

education on the basis of a provisional appointment pursuant to section

sixty-five of the civil service law.

(6) "Education service". Service as a paid official or employee of the

board of education or the New York city school construction authority,

and allowable as provided in section four of the rules and regulations

or, in the case of a tier II member or a tier IV member, allowable

pursuant to the provisions which respectively govern the service credit

of such a member of the board of education retirement system.

(7) "Former provisional employee". Any person permanently employed by

the board of education:

(i) who is a transferred contributor in the New York city employees'

retirement system pursuant to section B3-57.0 or 13-188 of the

administrative code of the city of New York; and

(ii) who first acquired membership in the New York city employees'

retirement system as a provisional employee of the board of education;

and

(iii) whose last period of permanent employment by the board of

education was immediately preceded by his employment by the board of

education as a provisional employee.

(8) "Tier II member". A member of a public retirement system who is

subject to the provisions of article eleven of the retirement and social

security law.

(9) "Tier IV member". A member of a public retirement system who is

subject to the provisions of article fifteen of the retirement and

social security law.

(b) (1) Notwithstanding the provisions of paragraph (a) of subdivision

one of this section or any provision of the rules and regulations or any

other provision of law to the contrary, membership in the board of

education retirement system shall include any provisional employee in

education service who elects to become a member in the manner prescribed

by the applicable provisions of subparagraph two, subparagraph three or

subparagraph four of this paragraph.

(2) Any such provisional employee who is not a member of the New York

city employees' retirement system at the time he or she elects to become

a member of the board of education retirement system may make such an

election of membership by filing with the board of education retirement

system a duly executed and acknowledged application for membership.

(3) Any such provisional employee who is a member of the New York city

employees' retirement system at the time he or she elects to become a

member of the board of education retirement system may make such an

election of membership by filing simultaneously with the board of

education retirement system a duly executed and acknowledged application

for membership and a duly executed and acknowledged request that his or

her membership and service credit in the New York city employees'

retirement system be transferred to the board of education retirement

system.

(4)(i) Beginning July first, two thousand twenty-four, upon the entry

into employment of any employee eligible to elect membership in the

retirement system pursuant to subparagraphs one, two and three of this

paragraph or any other applicable provision of law, and provided such

employee is not a member in the retirement system or any other public

retirement system of the city or state of New York as of such entry date

in covered employment, such employee shall be enrolled in the retirement

system effective ninety-one days after the commencement of employment.

Notwithstanding the preceding, if such employee files with the

retirement system an application to opt out of membership within ninety

days after commencement of employment, the retirement system shall

refrain from enrolling such employee unless and until such employee

subsequently files an application for membership with the retirement

system, or is otherwise subsequently mandated to enroll by the rules and

regulations of the retirement system or any applicable law. The employer

and the applicable union for the retirement system shall jointly provide

written notice to the employee informing the employee that he or she has

the option to opt-out of the automatic enrollment program. Such notice

shall be provided to the employee on three occasions: on or before the

thirtieth day, the sixtieth day and the ninetieth day prior to automatic

enrollment in the retirement system. The automatic enrollment of

eligible employees as provided for in this subparagraph shall not be

construed to modify the right of eligible employees to join the

retirement system as of the first date of covered employment by filing

an application for membership with the retirement system. The employer

shall inform the employee in writing of the right to join the system as

well as the fact that the employee shall be enrolled in the retirement

system on the ninety-first day after commencement of employment, unless

such employee files with the retirement system an application to opt out

of membership prior to such date. Any eligible employee who elects to

opt out of membership in the retirement system within the ninety day

period shall retain the right to join such system by subsequently filing

an application for membership so long as such employee remains in

covered employment.

(ii) Every current employee who is eligible for membership in the

retirement system on July first, two thousand twenty-four, and who is

not a member in the retirement system or any other public retirement

system of the city or state of New York, shall be enrolled in the

retirement system effective October first, two thousand twenty-four,

unless such employee files with the retirement system an application to

opt out of membership before October first, two thousand twenty-four.

Such automatic enrollment in the retirement system shall not be

construed to waive any of the eligibility requirements for previous

service credit.

(iii) The automatic enrollment of eligible employees as provided for

in this subparagraph shall not be construed to modify the rights and

obligations of any employee whose participation in the retirement system

is mandated by the rules and regulations of the retirement system or any

applicable law, and such mandated members may not opt out of membership.

(iv) If an employee who is automatically enrolled in the retirement

system pursuant to the provisions of this paragraph is a member of a

union, the retirement system shall provide written notice to the union

of the employee's enrollment within thirty days of the employee's

enrollment in the retirement system.

(v) The provisions of this subparagraph shall apply to full-time

employees and part-time employees. The provisions of this subparagraph

shall not apply to provisional employees.

(c) (1) Notwithstanding the provisions of section B3-57.0 or 13-188 of

the administrative code of the city of New York or any provision of the

rules and regulations or any other provision of law to the contrary,

membership in the board of education retirement system shall include any

former provisional employee who, while employed in education service,

elects to become a member in the manner prescribed by subparagraph two

of this paragraph.

(2) Any such former provisional employee may make such an election of

membership by filing simultaneously with the board of education

retirement system, within six months after the date of enactment (as

certified pursuant to section forty-one of the legislative law) of this

subdivision, a duly executed and acknowledged application for membership

and a duly executed and acknowledged request that his or her membership

and service credit in the New York city employees' retirement system be

transferred to the board of education retirement system.

(d) Any election of membership in the board of education retirement

system made pursuant to paragraph (b) or paragraph (c) of this

subdivision shall be irrevocable.

(e) (1) Upon the filing of a request for a transfer with the board of

education retirement system as provided for in subparagraph three of

paragraph (b) of this subdivision or subparagraph two of paragraph (c)

of this subdivision, the board of education retirement system shall file

such request for a transfer with the New York city employees' retirement

system. Upon the filing of such request for a transfer with the New York

city employees' retirement system, such retirement system shall make a

transfer of reserves and accumulated contributions to the board of

education retirement system in the manner required by section

forty-three of the retirement and social security law.

(2) Nothing contained in the preceding provisions of this subdivision

or of any other law shall be construed (i) as imposing any restriction

under the third sentence of subdivision d of such section forty-three on

the determination of the salary base for benefit computation purposes

with respect to any person whose membership and service credit are

transferred to the board of education retirement system pursuant to the

applicable preceding provisions of this subdivision, or (ii) as making

the last sentence of such subdivision d applicable to any such

transferee.

(3) Any employee of the board of education of the city of New York who

is a member of the New York city employees' retirement system may elect

to transfer membership to the New York city board of education

retirement system. Any election pursuant to this section shall be made

no later than the one hundred eightieth day next succeeding the date on

which the provisions hereof become effective by filing a written notice

thereof with the administrative head of the New York city employees'

retirement system, and the New York city board of education retirement

system, and, once made and filed, such election shall be irrevocable.

Where an employee of the board of education becomes a member of the New

York city board of education retirement system pursuant to this section,

the New York city employees' retirement system shall make a transfer of

reserves, contributions, and credits to the New York city board of

education retirement system in the manner required by section

forty-three of the retirement and social security law.

(f) Notwithstanding the provisions of paragraph (a) of subdivision one

of this section or any provision of the rules and regulations or any

other provision of law to the contrary, membership in the board of

education retirement system shall include any person employed by the New

York city police department in the title of school crossing guard who

becomes a member in the manner prescribed by the provisions of

subdivision g of section 13-638.4 of the administrative code of the city

of New York or by the provisions of subparagraph four of paragraph (b)

of this subdivision.

(g)(1) For purposes of this paragraph, the terms "career pension plan

member", "career pension plan position" and "fifty-five-year-increased-

service-fraction member" shall have the meanings set forth in paragraphs

twenty-eight, twenty-nine and thirty-one, respectively, of section two

of the rules and regulations.

(2) For purposes of this paragraph, the term "fractional plan member"

shall mean a member of the board of education retirement system holding

a career pension plan position who is not a career pension plan member

or a fifty-five-year-increased-service-fraction member, and who is not

subject to the provisions of article eleven, fourteen or fifteen of the

retirement and social security law.

(3) Notwithstanding any provision of this section or any other

provision of law to the contrary, effective October first, nineteen

hundred ninety-three, the rules and regulations shall be deemed to be

amended so as to provide that any fractional plan member in education

service on such date, who holds a career pension plan position on such

date, shall, on such date, be deemed to have elected to become a career

pension plan member under the same terms and conditions, and with the

same rights, benefits, privileges and obligations as are applicable to

similarly situated members of the New York city employees' retirement

system, as provided in subdivision m of section 13-162 of the

administrative code of the city of New York, as enacted by the act which

added this paragraph.

(h) (1) For the purposes of this paragraph, including, without

limitation, the use, pursuant to subparagraph two of this paragraph, of

the provisions of paragraphs one, two and three of subdivision c of

section 13-162 of the administrative code of the city of New York and

subparagraph (a) of paragraph four of such subdivision (as amended by

the provisions of the chapter of the laws of nineteen hundred

ninety-five which added this paragraph) to prescribe certain of the

additional rights, privileges, benefits and obligations hereunder, of

career pension plan members and increased-service-fraction members, the

following items of this subparagraph one shall apply:

(i) the terms "career pension plan", "career pension plan member",

"career pension plan position" and

"fifty-five-year-increased-service-fraction-member" shall have the

meanings set forth in paragraphs twenty-seven, twenty-eight, twenty-nine

and thirty-one, respectively, of section two of the rules and

regulations;

(ii) the term "city-service", as used in the provisions of subdivision

c of such section 13-162 referred to in the opening paragraph of this

paragraph one shall be deemed to mean "education-service", as defined in

subparagraph six of paragraph (a) of this subdivision;

(iii) the term "career pension plan qualifying service", as used in

such provisions of subdivision c of section 13-162, shall mean

"creditable career pension plan service" as defined in paragraph

thirty-eight of section two of the rules and regulations;

(iv) the pension referred to in item (ii) of subparagraph (a) of

paragraph four of such subdivision c of section 13-162 shall be deemed

to mean the pension referred to in subdivision seven of section twelve

of the rules and regulations; and

(v) the provisions of subparagraph (b) of paragraph four of

subdivision c of such section 13-162 shall be deemed inapplicable to

career pension plan members and

fifty-five-year-increased-service-fraction members who are subject to

the provisions of this paragraph.

(2) Notwithstanding any provision of the rules and regulations or this

section or any other provision of law to the contrary, the rules and

regulations shall be deemed to be amended so as to provide that on and

after the effective date of this paragraph:

(i) each career pension plan member, subject to the succeeding

subparagraphs of this paragraph, shall have the same additional rights,

privileges, benefits and obligations and be subject to the same

additional terms and conditions with respect to withdrawing his or her

election to be a career pension plan member as are provided for in

relation to a similarly situated career pension plan member of the New

York city employees' retirement system by the chapter of the laws of

nineteen hundred ninety-five which added this paragraph; and

(ii) each fifty-five-year-increased-service-fraction member, subject

to the succeeding subparagraphs of this paragraph, shall have the same

additional rights, privileges, benefits and obligations and be subject

to the same additional terms and conditions with respect to electing to

be a career pension plan member as are provided for in relation to a

similarly situated fifty-five-year-increased-service-fraction member of

the New York city employees' retirement system by the chapter of the

laws of nineteen hundred ninety-five which added this paragraph.

(3) In any case where a member effects a change in his or her

retirement plan pursuant to the preceding subparagraphs of this

paragraph, his or her normal rate of member contribution as a member of

such changed plan shall be fixed pursuant to the appropriate provisions

of the rules and regulations with respect to rates of member

contribution of members of such changed plan.

(4) Nothing contained in subparagraph two of this paragraph shall be

construed as diminishing or impairing:

(i) any right granted to any career pension plan member by the

provisions of paragraph ten of subdivision m of section 13-162 of the

administrative code of the city of New York, where the provisions of

such paragraph ten are made applicable to such member by paragraph (g)

of this subdivision; and

(ii) any right granted to a career pension plan member by subparagraph

(a) of paragraph one of subdivision c of section thirty of the rules and

regulations to withdraw from the career pension plan.

(5) Notwithstanding any provision of the rules and regulations or this

section or any other provision of law to the contrary, the rules and

regulations shall be deemed to be amended so as to provide that:

(i) subject to the provisions of item (ii) of this subparagraph five,

in any case where, on or after the effective date of this paragraph, a

fifty-five-year-increased-service-fraction member dies in service while

such a member, after completing twenty or more years of creditable

career pension plan service, such member shall be deemed to have died as

a career pension plan member, if status as such a career pension plan

member at the time of his or her death would result in a benefit larger

than the benefit which would be payable if such member died while a

fifty-five-year-increased-service-fraction member; and

(ii) in any case where a member referred to in item (i) of this

subparagraph five is a Tier II member at the time of his or her death,

any change in the plan membership of such member pursuant to such item

(i) shall not change, alter or affect the applicability of article

eleven of the retirement and social security law to such member.

(i) A retired member of the board of education retirement system shall

have the right, at any time after the retired member's retirement, to

execute and file a dues deduction authorization card with such

retirement system authorizing the deduction from the retired member's

retirement allowance of membership dues 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, 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.

(j) Notwithstanding any other provision of law or rule, a retired

member of the board of education retirement system of the city of New

York shall be permitted to repay the outstanding balance of a loan taken

pursuant to the rules and regulations of the retirement system at any

time. Benefits payable after the repayment of the loan shall not be

subject to any actuarial reduction imposed as a result of an outstanding

balance.

** 19. Pick up of Tier I and Tier II member contributions by the

employer. (a) For the purposes of this subdivision:

(1) The terms "board of education," "rules and regulations" and

"retirement system" shall have the meanings set forth in subparagraphs

one, three and four, respectively, of paragraph (a) of subdivision

sixteen of this section; and

(2) the terms "member," "Tier I member" and "Tier II member" shall

have the meanings set forth in subparagraphs one, four and five,

respectively, of subparagraph (b) of subdivision seventeen of this

section.

(b) the following terms, as used in this subdivision, shall have the

following meanings, unless a different meaning is plainly required by

the context:

(1) "Basic rate of contribution as a Tier I or Tier II member." (i)

Subject to the provisions of clauses (ii) and (iii) of this subparagraph

one, the term "basic rate of contribution as a Tier I or Tier II member"

shall mean the proportion of the earnable compensation of a Tier I

member or Tier II member required by the provisions of subparagraph (i)

of paragraph f of subdivision one of section eight of the rules and

regulations and any other applicable provisions of the rules and

regulations or law to be deducted from the personal compensation of such

member as his or her member contributions, exclusive of any increase in

such contributions resulting from an election by such member pursuant to

law to effect such an increase, or any decrease in such contributions 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).

(ii) In any case where it is provided in the rules and regulations

that the deduction from a member's compensation on account of member

contributions required to be made by a Tier I member or Tier II member

shall not be in excess of fifteen per centum unless the member so

elects, and such member makes such election, any per centum of such

deduction in excess of fifteen per centum with respect to such member

shall not be included in such member's basic rate of contribution as a

Tier I or Tier II member.

(iii) In any case where a Tier I member or Tier II member who is a

fifty-five-year-increase-service-fraction member (as defined in

subdivision thirty-one of section two of the rules and regulations) has

elected or elects, pursuant to paragraph g of subdivision one of section

eight of the rules and regulations, to contribute to the retirement

system at a rate one per centum less than such member's normal rate of

contribution, such member's basic rate of contribution as a Tier I or

Tier II member, during any period wherein such election is in effect,

shall be one per centum less than such member's normal rate of

contribution as a fifty-five-year-increased-service-fraction member. In

any case where any such member elects pursuant to such paragraph g to

discontinue such reduction, such election to discontinue shall not be

deemed, for the purposes of subparagraph four of this paragraph (b) to

be an election to increase member contributions above the level

prescribed by the member's basic rate of contribution as a Tier I or

Tier II member, and upon such discontinuance, such member's basic rate

of contribution as a Tier I or Tier II member shall be his or her normal

rate of contribution as a fifty-five-year-increased-service-fraction

member.

(2) "Contributing Tier I or Tier II member." With respect to any

payroll period as to which the status of a Tier I member or Tier II

member as to required member contributions is to be determined, the term

"contributing Tier I or Tier II member" shall mean any Tier I member or

Tier II member other than any Tier I member or Tier II member who is not

required to contribute during such payroll period because of his or her

then currently effective election, pursuant to subparagraph f of

paragraph one of section eight of the rules and regulations, not to

contribute.

(3) "Employer responsible for pick up." The public employer by which a

Tier I member or Tier II member is employed.

(4) "Tier I or Tier II member contributions eligible for pick up by

the employer." (i) With respect to any payroll period for a contributing

Tier I or Tier II member (as defined in subparagraph two of this

paragraph (b)), the amount of member contributions which, in the absence

of a pick up program applicable to such member pursuant to this

subdivision, would be required by law to be deducted, on account of such

member's basic rate of contribution as a Tier I or Tier II member (as

defined in subparagraph one of this paragraph), from the personal

compensation of such member for such payroll period, after (A) 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

(B) excluding any deductions from such compensation (or redeposits,

restorations or payments) on account of (1) loans or withdrawal of

excess contributions or (2) any election by any such member, pursuant to

any applicable provision of the rules and regulations, to increase his

or her member contributions above the level prescribed by his or her

basic rate of contribution as a Tier I or Tier II member or (3) any

other cause not attributable to the member's basis rate of contribution

as a Tier I or Tier II member after reduction in such rate, if any, as

described in item (A) of this clause (i).

(ii) If no deductions on account of any such member's basic rate of

contribution as a Tier I or Tier II member are required by the rules and

regulations to be made from the personal compensation of such member for

any payroll period, such member shall not have, for such payroll period,

any Tier I or Tier II member contributions eligible for pick up by the

employer. The amount of Tier I or Tier II member contributions eligible

for pick up by the employer of any Tier I member or Tier II member for

any payroll period shall be determined solely on the basis of personal

compensation paid to such member for such payroll period by his or her

public employer. A Tier I member or Tier II member shall not have any

Tier I or Tier II member contributions eligible for pick up by the

employer with respect to any payroll period for which he or she is not

paid personal compensation by his or her public employer.

(5) "Starting date for pickup." The first day of the first whole

payroll period commencing after the date which is sixty days after the

internal revenue service shall have issued a ruling that member

contributions picked up pursuant to this subdivision are not includible

as gross income for federal income tax purposes until distributed or

made available.

(c) Notwithstanding any other provision of the law to the contrary, on

and after the starting date for pick up, the employer responsible for

pick up shall pick up and pay into the annuity savings fund (subject to

the provisions of subparagraph four of paragraph (f) of this

subdivision) the Tier I or Tier II member contributions eligible for

pick up by the employer which each Tier I member and Tier II member

would otherwise be required to make on and after such starting date.

(c-1) Notwithstanding any other provision of law to the contrary, the

employer responsible for pick up shall, in the case of a member who is a

participant in the age fifty-five improved benefit retirement program

(as defined in paragraph ten of subdivision a of section four hundred

forty-five-d of the retirement and social security law), pick up and pay

to the retirement system all additional member contributions which

otherwise would be required to be deducted from such member's

compensation pursuant to paragraph three of subdivision d of such

section four hundred forty-five-d, and shall effect such pick up on each

and every payroll of such participant for each and every payroll period

with respect to which such paragraph three otherwise would require such

deductions.

(c-2) Notwithstanding any other provision of law to the contrary, the

employer responsible for pick up shall, in the case of a member who is a

participant in the age fifty-five retirement program (as defined in

paragraph ten of subdivision a of section four hundred forty-five-i of

the retirement and social security law), pick up and pay to the

retirement system all additional member contributions which otherwise

would be required to be deducted from such member's compensation

pursuant to paragraph three of subdivision d of section four hundred

forty-five-i of the retirement and social security law, and shall effect

such pick up on each and every payroll of such participant for each and

every payroll period with respect to which such paragraph three

otherwise would require such deductions.

(d) An amount equal to the amount of such picked up contributions

shall be deducted by the employer responsible for pick up from the

personal 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 personal compensation

(as so defined), or offset against future pay increases, or a

combination of such methods.

(e) (1) * The member contributions and additional member contributions

picked up pursuant to this subdivision for any Tier I member or Tier II

member shall be paid by the employer responsible for pick up in lieu of

an equal amount of the member contributions and additional member

contributions otherwise required to be paid by such member under the

provisions of the rules and regulations or 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 paragraph (d)

of this subdivision, 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 and additional member contributions picked

up pursuant to this subdivision for any Tier I member or Tier II member

shall be paid by the employer responsible for pick up in lieu of an

equal amount of the member contributions and additional member

contributions otherwise required to be paid by such member under the

provisions of the rules and regulations or the retirement and social

security law, including any member contributions required to be made for

the purchase of credit for previous service or credit for military

service pursuant to subparagraph three of this paragraph, provided,

however, that contributions picked up for the purchase of credit for

military service shall be deposited in the employer contribution account

in accordance with 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 paragraph (d) of this subdivision, 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 Tier I or Tier

II member contributions eligible for pick up by the employer or

additional member contributions required to be picked up pursuant to

paragraph c-one or c-two of this subdivision; and

(iii) the determination of the amount of any retirement allowance or

other retirement system benefit payable to or on account of such member

or any other retirement system right, benefit or privilege of such

member;

the amount of the member contributions and additional member

contributions picked up pursuant to this subdivision shall be deemed to

be a part of the employee personal compensation of such member and such

member's gross personal 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 participation in such program.

(2) Nothing contained in subparagraph one of this paragraph (e) 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.

* (3) 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 section 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 the agreement.

* NB Takes effect upon notice of ruling by Internal Revenue Service

per ch. 627/2007 §22

(f) (1) For the purpose of determining the retirement system rights,

benefits and privileges of any Tier I member or Tier II member whose

Tier I or Tier II member contributions eligible for pick up by the

employer are picked up pursuant to this subdivision (including the

procurement of loans by any such member), such picked up member

contributions, subject to the provisions of subparagraph four of this

paragraph (f), shall be deemed to be and treated (i) as member

contributions made by such member pursuant to law and (ii) as a part of

such member's accumulated deductions.

(2) For the purpose of determining the retirement system rights,

benefits and privileges of any member who is a participant in the age

fifty-five improved benefit retirement program (as defined in paragraph

ten of subdivision a of section four hundred forty-five-d of the

retirement and social security law), the additional member contributions

of such participant picked up pursuant to paragraph (c-one) of this

subdivision shall be deemed to be and treated as a part of such member's

additional member contributions under subdivision d of such section four

hundred fifty-five-d.

(2-a) For the purpose of determining the retirement system rights,

benefits and privileges of any member who is a participant in the age

fifty-five retirement program (as defined in paragraph ten of

subdivision a of section four hundred forty-five-i of the retirement and

social security law), the additional member contributions of such

participant picked up pursuant to paragraph c-two of this subdivision

shall be deemed to be and treated as a part of such member's additional

member contributions under subdivision d of section four hundred

forty-five-i of the retirement and social security law.

(3) Interest on contributions picked up for any Tier I member or Tier

II member pursuant to this subdivision (other than additional member

contributions picked up pursuant to paragraph c-one or c-two of this

subdivision) shall accrue in favor of the member and be payable to the

retirement system 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 to the

retirement system on such contributions if they were made by such member

in the absence of a pick up program applicable to such member under the

provisions of this section.

(4) Where member contributions of any Tier I member or Tier II member

are picked up and paid into the annuity savings fund pursuant to this

section, such picked up contributions 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.

(5) For the purpose of determining the retirement system rights,

benefits and privileges of any Tier I member or Tier II member who is a

participant in a variable annuity program of the retirement system, his

or her picked up member contributions shall, to the extent and in the

proportions appropriate pursuant to his or her election to participate

in such program, be deemed to be and treated as a part of his or her

accumulated deductions and/or credits in his or her account in the

variable annuity savings fund. A separate record shall be kept showing

any such variable annuity savings fund account credits attributable to

any such picked up contributions.

(6) Nothing contained in this paragraph (f) shall be construed as

granting member contributions or additional member contributions picked

up under this subdivision 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.

(g) No member whose member contributions or additional member

contributions are required to be picked up pursuant to this subdivision

shall have any right to elect that such pick up, with accompanying

deduction from the personal compensation of such member as prescribed by

paragraph (d) of this subdivision, shall not be effectuated.

** NB Expires per ch. 681/92 § 16

* 20. (a) For the purposes of this subdivision, the terms "rules and

regulations" and "retirement system" shall have the meanings set forth

in subparagraphs three and four, respectively, of paragraph (a) of

subdivision sixteen of this section.

(b) The following terms, as used in this subdivision, shall have the

following meanings, unless a different meaning is plainly required by

the context:

(1) "Tax-deferred annuity program". The tax-deferred annuity program

established pursuant to the provisions of section thirty-one hundred

nine-A of this chapter and section thirty-three of the rules and

regulations.

(2) "Annuity savings fund". The annuity savings fund under the

tax-deferred annuity program.

(3) "Annuity reserve fund". The annuity reserve fund under the

tax-deferred annuity program.

(4) "Variable annuity savings fund". The variable annuity savings fund

under the tax-deferred annuity program.

(5) "Variable annuity reserve fund". The variable annuity reserve fund

under the tax-deferred annuity program.

(6) "Tax-deferred annuity account". The tax-deferred annuity account

maintained in the tax-deferred annuity program by a participant in such

program.

(c) (1) Notwithstanding any provision of the rules and regulations or

any other provision of law to the contrary, a participant in the

tax-deferred annuity program who, pursuant to the applicable provisions

of the rules and regulations and/or the retirement and social security

law, retires for service or disability, or who discontinues service with

a vested right to receive a deferred retirement allowance, may elect to

defer commencement of the distribution of his or her tax-deferred

annuity account to the latest date permitted by the provisions of

section 403(b) of the internal revenue code pertaining to the

commencement of distribution of tax-deferred annuities, by filing an

election for such deferral of distribution with the retirement system

during the time period which:

(i) for a service retiree, commences on the day such person's

application for service retirement is filed with the retirement system,

and which ends on the day prior to the effective date of retirement; or

(ii) for a disability retiree, commences on the day such person

receives notification from the retirement system that it has approved

his or her retirement for disability, and which ends on the thirtieth

day after such receipt of notification; or

(iii) for a member who discontinues service with a vested right to

receive a deferred retirement allowance, commences thirty days prior to

the date of such discontinuance of service, and which ends on the day

such retirement allowance becomes payable pursuant to the applicable

provisions of the rules and regulations and/or the retirement and social

security law.

(2) A participant in the tax-deferred annuity program who, pursuant to

the provisions of subparagraph one of this paragraph, has elected to

defer commencement of the distribution of his or her tax-deferred

annuity account to the latest date for distribution referred to in such

subparagraph one may revoke such election by filing a revocation of such

election with the retirement system at any time prior to such latest

date. Where a participant has made such a revocation, the distribution

of his or her tax-deferred annuity account shall be made thereafter in

accordance with the applicable provisions of the rules and regulations.

(3) Where a participant in the tax-deferred annuity program has

elected, pursuant to the provisions of subparagraph one of this

paragraph, to defer commencement of the distribution of his or her

tax-deferred annuity account to the latest date for distribution

referred to in such subparagraph one, the application of any provision

of the rules and regulations which requires the transfer of his or her

tax-deferred annuity account from the annuity savings fund to the

annuity reserve fund and/or from the variable annuity savings fund to

the variable annuity reserve fund upon the retirement of such

participant shall be delayed until the commencement of distribution of

his or her tax-deferred annuity account pursuant to such retirement and,

upon such commencement of distribution, such account shall be so

transferred in accordance with such provision.

(4) Where a participant has made an election pursuant to the

provisions of subparagraph one of this paragraph, the distribution of

the entire amount in such participant's tax-deferred annuity account,

including any portion of such amount to be distributed pursuant to an

option for the payment of retirement benefits selected by such

participant pursuant to the rules and regulations or an applicable

provision of the retirement and social security law, shall not extend

beyond the maximum period permitted by the provisions of section 403(b)

of the internal revenue code pertaining to the distribution of

tax-deferred annuities.

(d) The rules and regulations may be amended pursuant to the

procedures set forth in subdivision two of this section to establish

rules and regulations governing the borrowing by a participant in the

tax-deferred annuity program of contributions accumulated in his or her

tax-deferred annuity account, provided that in establishing and

administering such rules and regulations, no action shall be taken that

would render the tax-deferred annuity program in violation of section

403(b) of the internal revenue code.

(e) Notwithstanding any other provision of law, or any rule or

regulation, or the provisions of any retirement board resolution to the

contrary:

(1) on or after the first business day immediately following the

effective date of this paragraph, interest shall be allowed at the rate

of seven percent per annum, compounded annually, on the tax-deferred

accounts in the annuity savings fund of participants (i) who hold a

position represented by the recognized teacher organization for

collective bargaining purposes, or (ii) who held such a position at the

time they retired or discontinued service with vested rights to a

retirement allowance and elected to defer commencement of distribution

of their tax-deferred accounts in accordance with paragraph (c) of this

subdivision; and

(2) the provisions of subparagraph one of this paragraph shall not

affect the rate of interest being charged on new loans from the

tax-deferred annuity program, and the rate of interest that was being

charged on such loans immediately prior to the effective date of this

paragraph shall be used for new loans from the tax-deferred annuity

program made on or after the effective date of this paragraph, unless

the rules and regulations governing loans from the tax-deferred annuity

program are amended pursuant to paragraph (d) of this subdivision to

establish a different rate of interest applicable to such loans; and

(3) where a participant in the tax-deferred annuity program has

elected to transfer all or a portion of the amount credited to his or

her tax-deferred account in the annuity savings fund to a tax-deferred

account in the variable annuity savings fund, the retirement system

shall effectuate such transfer as expeditiously as is administratively

feasible.

* NB There are 2 sub 20's

* 20. Eligible rollover distributions. (a) For the purposes of this

subdivision, the terms "rules and regulations" and "retirement system"

shall have the meanings set forth in subparagraphs three and four of

paragraph (a) of subdivision sixteen of this section.

(b) Notwithstanding anything to the contrary contained in section

twenty-six of the rules and regulations, in the event that, under the

terms of this section or the rules and regulations, a person becomes

entitled to a distribution from the retirement system 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 paragraph (c) of this subdivision, 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.

(c) The retirement board is authorized to adopt such written

administrative procedures as it finds to be necessary in administering

the provisions of this subdivision, provided that they are not

inconsistent with the applicable provisions of the internal revenue code

and the rules and regulations thereunder.

* NB There are 2 sub 20's

21. Certain distributions and transfers by participants in the

tax-deferred annuity program. (a) For the purposes of this subdivision:

(1) the terms "rules and regulations" and "retirement system" shall

have the meanings set forth in subparagraphs three and four of paragraph

(a) of subdivision sixteen of this section; and

(2) the term "tax-deferred annuity program" shall mean the program

authorized by section three thousand one hundred nine-A of this chapter

as set forth in section thirty-three of the rules and regulations of the

retirement system.

(b) (1) Notwithstanding any other provision of law to the contrary, in

the event that a person becomes entitled to a distribution from the

tax-deferred annuity program 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 (as such

section is made applicable to the tax-deferred annuity program by

paragraph ten of subsection b of section four hundred three of the

internal revenue code), the person may elect, subject to any rules and

regulations adopted pursuant to paragraph (c) of this subdivision, 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.

(2) Nothing contained in section twenty-six or section thirty-three of

the rules and regulations shall be construed to prohibit a participant

in the tax-deferred annuity program from electing to transfer all or a

portion of his or her tax-deferred annuity net contributions to another

annuity contract described in subsection b of section four hundred three

of the internal revenue code where a non-taxable trustee-to-trustee

transfer of tax-deferred annuities is permitted by subsection b of

section four hundred three of such code and the applicable rules,

regulations and rulings thereunder.

(c) The retirement board is authorized to adopt such written

administrative procedures as it finds to be necessary in administering

the provisions of this subdivision provided that they are not

inconsistent with the applicable provisions of the internal revenue code

and the rules and regulations thereunder.

22. (a) For the purposes of this subdivision, the terms "rules and

regulations" and "retirement system" shall have the meanings set forth

in subparagraphs three and four, respectively, of paragraph (a) of

subdivision sixteen of this section, and the terms "Tier I member",

"Tier II member", "education service" and "discontinued member" shall

have the meanings set forth in subparagraphs four, five, ten and eleven,

respectively, of paragraph (b) of subdivision seventeen of this section,

and the term "fifty-five-year-increased-service-fraction member" shall

have the meaning set forth in paragraph thirty-two of section two of the

rules and regulations.

(b) Notwithstanding any other provision of law, subdivision a of

section thirty-two of the rules and regulations shall be deemed to be

amended to provide that any member of the retirement system who:

(1) discontinues education service on or after July first, nineteen

hundred sixty-eight, other than by death, retirement or dismissal; and

(2) is a fifty-five-year-increased-service-fraction member at the time

of such discontinuance; and

(3) (i) prior to such discontinuance, completed five or more years of

allowable service; and

(4) does not withdraw his or her accumulated deductions in whole or in

part; shall have a vested right to receive a deferred retirement

allowance as provided in section thirty-two of the rules and

regulations.

(c) Nothing contained in paragraph (b) of this subdivision shall

change, alter or affect the applicability of the provisions of article

eleven of the retirement and social security law to any Tier II member

who becomes a discontinued member pursuant to the provisions of

paragraph (b) of this subdivision.

(d) Notwithstanding any other provision of law, a Tier I discontinued

member with ten or more years of credited service in the retirement

system who dies before a retirement benefit becomes payable and who is

otherwise not entitled to a death benefit from the retirement system

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 twenty of the rules and regulations. 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.

23. (a) The following terms, as used in this subdivision, shall have

the following meanings, unless a different meaning is plainly required

by the context:

(1) "BERS" or "retirement system". The board of education retirement

system of the city of New York established pursuant to the provisions of

this section.

(2) "BERS rules and regulations". The rules and regulations for the

government, management and control of BERS adopted pursuant to the

provisions of this section.

(3) "Retirement board". The board established as the head of the

retirement system pursuant to sections five and five-a of the BERS rules

and regulations.

(b)(1) In addition to the powers conferred upon it by the BERS rules

and regulations or by any other provision of law, the retirement board

shall, on or before April first of each year, establish a budget

sufficient to fulfill the powers, duties and responsibilities set forth

in the BERS rules and regulations and any other provision of law which

sets forth the benefits of members of the retirement system. Said budget

shall also include the amounts withheld for the purpose of paying the

expenses attributable to the tax-deferred annuity program pursuant to

the provisions of subdivision b of section thirty-three of the BERS

rules and regulations, and the amounts deposited in the variable annuity

expense fund pursuant to the provisions of subdivision 1 of section

thirty-six of the BERS rules and regulations. The retirement board

shall, if necessary, draw upon the assets of the retirement system to

fund the portion of such budget which is not derived from subdivision b

of section thirty-three of the BERS rules and regulations and

subdivision 1 of section thirty-six of the BERS rules and regulations,

provided that such action shall be subject to the provisions of

subparagraphs two, three, four and five of this paragraph and paragraphs

(c), (d), (e) and (f) of this subdivision. The provisions of this

subdivision shall not be applicable to the payment of investment

expenses pursuant to section 13-705 of the administrative code of the

city of New York and nothing contained herein shall be construed as

abolishing, limiting or modifying any power of the retirement board to

provide for the payment of investment expenses pursuant to section

13-705 of such code.

(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 subparagraph one or two of this

paragraph shall be modifiable during such succeeding fiscal year.

(4) Notwithstanding any other provision of law, the retirement board

shall have the power either directly or by delegation to the executive

director of the retirement system to obtain by employment or by contract

the goods, property and services necessary to fulfill its powers within

the appropriation authorized by the retirement board pursuant to

subparagraph one of this paragraph.

(5) The provisions of chapter seventeen of the New York city charter

shall continue to apply to the retirement system and the retirement

system shall constitute an agency for the purposes of such chapter

seventeen. The retirement board 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 retirement

system shall be procured as described for school districts in article

five-A of the general municipal law. The retirement board shall be the

governing body as described in such law.

(7) The provisions of subparagraphs four and six of this paragraph

shall not apply to any contract or contracts relating to the variable

annuity funds and tax-deferred annuity program pursuant to sections

thirty-three and thirty-six of the BERS rules and regulations.

(c) Notwithstanding the provisions of paragraph (a) of subdivision one

of this section or any other provision of law or any provision of the

BERS rules and regulations to the contrary, any resolution of the

retirement board which establishes a budget or modifies a budget

pursuant to the provisions of subparagraph one or three of paragraph (b)

of this subdivision shall require the concurrence of at least one

retirement board member who is appointed to the board of education by

the mayor of the city of New York, and as otherwise required by law. The

provisions of this paragraph shall apply only to resolutions of the

retirement board which establish or modify a budget pursuant to this

subdivision, and nothing contained in this paragraph shall be construed

to apply to any other vote of the retirement board. No assets of the

retirement system shall be drawn upon pursuant to the provisions of

subparagraph one of paragraph (b) of this subdivision unless authorized

by a budget or budget modification established by a resolution of the

retirement board.

(d) Employment by the retirement system shall constitute education

service for the purposes of the BERS rules and regulations and any other

provision of law which governs the crediting of service for members of

the retirement system; provided, however, that nothing contained herein

shall be construed as granting membership rights in the retirement

system to a contractor of the retirement system or such contractor's

employees.

(e) Whenever the assets of the retirement system are drawn upon

pursuant to the provisions of subparagraph one of paragraph (b) of this

subdivision, all monies so withdrawn shall be made a charge to be paid

by each participating employer otherwise required to make contributions

to the retirement system 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 each such participating

employer no later than the end of the second fiscal year succeeding the

time period during which such assets were drawn upon. The actuary for

the retirement system shall calculate and allocate to each such

participating employer its share of such charge by multiplying such

charge by a fraction, the numerator of which shall consist of the total

salaries of the employees of each participating employer as of the June

thirtieth succeeding the withdrawal of assets and the denominator of

which shall consist of the total salaries of members of the retirement

system as of such June thirtieth. 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 retirement

system pursuant to the provisions of paragraph two of subdivision b of

section 13-638.2 of the administrative code of the city of New York.

(f) The funds withdrawn from the retirement system shall not be

utilized for any purpose other than the budget established by the

retirement board. All expenditures of the retirement system shall be

subject to audit by the comptroller of the city of New York, who may

make recommendations, including but not limited to, procedures designed

to improve accounting and expenditure control. All expenditures of the

retirement system shall be reported to the mayor's office of management

and budget and the budgetary office of all participating employers.

(g) The executive director of the retirement system, who shall be

appointed by the retirement board, shall perform such duties as may be

conferred upon him or her by the chairperson of the retirement board, by

resolution adopted by the retirement board, or by law.

* 24. (a) The following terms, as used in this subdivision, shall have

the following meanings, unless a different meaning is plainly required

by the context:

(1) "Board of education". The board of education of a city.

(2) "City". A city having a population of one million or more.

(3) "Retirement system". The board of education retirement system

established pursuant to the provisions of this section in a city.

(4) "Rules and regulations". The rules and regulations for the

government, management and control of the retirement system adopted

pursuant to this section.

(5) "Retirement board". The retirement board of the retirement system

provided for in section five-a of the rules and regulations.

(6) "Retirement benefits". Benefits payable to a beneficiary by the

retirement system which are subject to the limitations imposed by

section 415(b) of the Internal Revenue Code.

(7) "Beneficiary". A person who is receiving retirement benefits from

the retirement system.

(8) "Excess benefit plan". The excess benefit plan established by this

subdivision for the sole purpose of paying benefits as permitted under

section 415(m) of the Internal Revenue Code.

(9) "Eligible participant". A beneficiary who is entitled to

replacement benefits from the excess benefit plan for a plan year in

accordance with paragraphs (d) and (e) of this subdivision.

(10) "Replacement benefits". The benefits payable by the excess

benefit plan to an eligible participant as determined pursuant to

paragraph (e) of this subdivision.

(11) "Internal Revenue Code". The Federal Internal Revenue Code of

1986, as amended.

(12) "Plan year". The limitation year of the retirement system 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 retirement

board.

(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 subdivision, 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 paragraph (f) of this

subdivision. Such contributions to the excess benefit fund shall be held

separate and apart from the assets held by the other funds of the

retirement system, provided, however, that the assets of the excess

benefit fund may be invested with the other retirement system assets,

but such excess benefit fund assets shall be accounted for separately

from the other retirement system assets.

(d) All beneficiaries of the retirement system 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

retirement system 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 paragraph to any beneficiary who is not receiving retirement

benefits from the retirement system for that plan year.

(2) Replacement benefits pursuant to this subdivision 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 subdivision 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 by the board of education and other public employers pursuant to

the applicable provisions of subdivision sixteen of this section 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 subdivision, and the replacement benefits

received pursuant to this subdivision, 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

retirement system.

* NB There are 2 sb 24's

* 24. Notwithstanding any provisions of the rules or regulations or

any other provision of law to the contrary, in a city having a

population of one million or more, the board of education shall adopt a

resolution amending the provisions governing any retirement system

adopted pursuant to or subject to the provisions of this section to the

extent necessary to grant a retired member the right, at any time after

his or her retirement, to execute and file a dues deduction

authorization card with the member's retirement system authorizing the

payment of voluntary contributions to the political committee, as

defined in section fourteen-one hundred of the election law, of such

member's employee organization; (or a retirees' association chartered by

the member's employee organization) provided such organization is

certified or recognized pursuant to article fourteen of the civil

service law as the representative of employees in the negotiation unit

in which such member was employed. Such authorization shall continue in

effect until revoked in writing by such member. The comptroller shall

determine the cost of administrative deductions for voluntary

contributions to the political committees; and the cost incurred by the

retirement system in administering such contributions shall be paid from

the funds of the political committee.

* NB There are 2 sb 24's

25. (a) For the purposes of this subdivision, the terms "rules and

regulations" and "retirement system" shall have the meanings set forth

in subparagraphs three and four, respectively, of paragraph (a) of

subdivision sixteen of this section.

(b) Notwithstanding any other provision of law to the contrary, the

rules and regulations adopted pursuant to this section shall be deemed

to be amended to provide that a member of the retirement system 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.

(c) Notwithstanding any other provision of law to the contrary, the

rules and regulations adopted pursuant to this section shall be deemed

to be amended to provide that any requirement that applications for

accidental disability be filed within a limited time period after the

happening of such accident shall not apply to a vested member

incapacitated as a result of a qualifying World Trade Center condition

as defined in section two of the retirement and social security law.

(d)(1)(i) Notwithstanding any other provision of law to the contrary,

the rules and regulations adopted pursuant to this section shall be

deemed to be amended to provide that 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.

(ii) The New York city board of education retirement board is hereby

authorized to promulgate rules and regulations to implement the

provisions of this paragraph.

(2)(i) Notwithstanding any other provision of law to the contrary, the

rules and regulations adopted pursuant to this section shall be deemed

to be amended to provide that 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 head of the retirement

system or applicable medical board 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 New York city board of

education retirement board or applicable medical board, 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.

(ii) The New York city board of education retirement board shall

consider a reclassification of the member's retirement or vesting as an

accidental disability retirement effective as of the date of such

reclassification.

(iii) Such member's retirement option shall not be changed as a result

of such reclassification.

(iv) 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 New York city board of education

retirement board according to procedures developed by the New York city

board of education retirement board.

(v) The New York city board of education retirement board is hereby

authorized to promulgate rules and regulations to implement the

provisions of this paragraph.

(e) Notwithstanding any other provision of law to the contrary, the

rules and regulations adopted pursuant to this section shall be deemed

to be amended to provide that if a retiree or vestee who: (1) has met

the criteria of paragraph (d) of this subdivision 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 thirty-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 such retiree's or vestee's

part. Such retiree's or vestee's eligible beneficiary, as set forth in

title twenty-one of the rules and regulations, shall be entitled to an

accidental death benefit as provided by title twenty-one of the rules

and regulations, 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 such retiree's or

vestee's 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 title twenty-one of the rules and regulations 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.

(f) Notwithstanding any other provision of law to the contrary, the

rules and regulations adopted pursuant to this section shall be deemed

to be amended to provide that if a member who: (1) has met the criteria

of paragraph (d) of this subdivision; (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, 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 title twenty-one of

the rules and regulations shall be entitled to an accidental death

benefit provided he or she makes written application to the head of the

retirement system as set forth in title twenty-one of the rules and

regulations.