N.Y. EDN Law § 2575 — New York Code / Act EDN / Title 2 / Article 52 / Section 2575
Retirement of employees of board of education
Status: in_force

§ 2575. Retirement of employees of board of education. 1. (a) The\nboard of education of a city school district of a city having a\npopulation of one hundred thousand or more shall have power to establish\na retirement system for all civil employees permanently employed by said\nboard other than superintendents and teachers who may now be retired\nunder the provisions of other retirement laws. In any such city in which\nthere is a bureau of compulsory education, school census, and child\nwelfare established under the provisions of this chapter, all persons,\nexcept for attendance teachers and specially certificated attendance\nofficers who are first employed by a board of education of a city having\na population of one million or more, beginning on the first day of\nSeptember, nineteen hundred sixty-eight, and further except for the\ndirector of attendance, assistant director of attendance, chief\nattendance officer, division supervising attendance officer, and\ndistrict supervising attendance officer, supervisors of school social\nworkers, who were first employed by a board of education of a city\nhaving a population of one million or more, beginning on the first day\nof September nineteen hundred sixty-nine, of which such a bureau of\ncompulsory education, school census, and child welfare consists shall be\nmembers of the retirement system created in accordance with the\nprovisions of this section, provided that any such person who on May\nfourth, nineteen hundred twenty-six, was a member of another retirement\nsystem in such city may continue such membership so long as he or she\nholds an office or position in such bureau. Transfer of membership of\nany such persons from another retirement system to a retirement system\nas herein provided shall be made in accordance with the provisions of\nsection fifty-nine of the civil service law. The board of education of\nsuch city shall adopt appropriate rules and regulations for the\ngovernment, management and control of the retirement of said employees;\nexcept that in regard to the actions of the governing board of a\nretirement system governed by such rules and regulations, the\nconcurrence of one employee representative and one non-employee\nrepresentative shall be necessary for an act of such board, and there\nshall be no fewer than two employee representatives of such board.\nBefore they become effective such rules and regulations must be approved\nby the board of estimate, or the board of estimate and apportionment in\na city having such body, and in a city not having such body by the\ncommon council or such other officers or bodies as have the management\nand control of financial affairs similar to that exercised by such board\nof estimate or board of estimate and apportionment. The board of\nestimate or the board of estimate and apportionment in a city having\nsuch body, and in other cities the officers or bodies performing the\nfunctions similar to those of a board of estimate or a board of estimate\nand apportionment shall appropriate annually the sum necessary to pay\nthe expenses of the administration of this section, except that in the\ncity of New York such appropriations shall be made pursuant to chapter\nsix of the New York city charter, and also to pay such pensions to the\nemployees herein described as they shall be entitled to receive annually\nunder the rules and regulations prescribed by the board of education and\napproved by the said board of estimate or board of estimate and\napportionment or other authorities.\n  (b) (1) The rules and regulations prescribed by the board of education\nand approved by the board of estimate or the board of estimate and\napportionment or other authorities named herein shall provide for the\nannual payment of a pension which shall be a per centum of the average\nannual personal compensation of an employee for the five years of\nservice immediately preceding his retirement, except as otherwise\nprovided in subparagraph two of this paragraph (b).\n  (2) Such rules and regulations so prescribed and approved with respect\nto any such retirement system established in the city school district of\na city having a population of one million or more may provide for the\nannual payment of a pension which shall be a per centum of the\ncompensation of an employee during any period designated in such rules\nand regulations; provided, however, that such period shall in no event\nbe less than one year or more than five years.\n  2. In a city having a population of one million or more and having a\nteachers' retirement board, changes, alterations, amendments or\nmodifications in the rules and regulations established for the\nadministration of this section shall be adopted as follows:\n  The board of education of said city may adopt and shall submit such\nchanges, alterations, amendments or modifications, hereinafter in this\nsubdivision referred to as changes, to said teachers' retirement board\nfor approval. Said teachers' retirement board shall within thirty days\nafter the submission to it of such changes transmit to said board of\neducation a statement in writing setting forth which of such changes it\napproves and which it disapproves, if any, and the reasons for such\ndisapproval. If said teachers' retirement board shall approve of all of\nsuch changes, then such changes shall immediately become effective and\nin full force and operation.\n  If said teachers' retirement board shall disapprove of all or any of\nsuch changes and if said board of education and said teachers'\nretirement board within thirty days thereafter shall fail to agree upon\nchanges in place of the changes so disapproved, then the changes shall\nbe submitted by said board of education within ten days after the lapse\nof said thirty days to the commissioner of education who shall have full\npower to approve, alter or modify the changes disapproved by said\nteachers' retirement board, and the action of the commissioner of\neducation shall be final, and thereupon the changes approved by said\nteachers' retirement board and the changes as approved, altered or\nmodified by the commissioner of education shall immediately become\neffective and in full force and operation.\n  Should said teachers' retirement board fail either to approve or to\ndisapprove all or any of such changes submitted to it as herein\nprovided, then such changes not approved or not disapproved shall at the\nexpiration of the thirty days immediately following their submission to\nsaid teachers' retirement board be deemed to have been approved by said\nteachers' retirement board and such changes shall immediately become\neffective and in full force and operation.\n  Said teachers' retirement board and the trustees of any variable\nannuity funds created by said rules and regulations may negotiate an\nagreement whereby said variable annuity funds are commonly invested with\nthe variable annuity funds of said teachers' retirement board. In such\nevent, final authority for investing such funds shall rest with the\nteachers' retirement board for the period of such agreement. Such\nagreement shall be for a period not to exceed five years but may be\nrenewed.\n  3. Notwithstanding any provision of this section or any other\nprovision of law, in a city having a population of one million or more\nthe board of education is authorized to adopt a resolution amending the\nprovisions governing any retirement system adopted pursuant to or\nsubject to the provisions of this section to the extent necessary to put\ninto effect a pensions-providing-for-increased-take-home-pay plan\nanalogous to that authorized by a chapter of the laws of nineteen\nhundred sixty, entitled "An act to amend the administrative code of the\ncity of New York, in relation to authorizing the addition of\npensions-providing-for-increased-take-home-pay and death benefits with\nrespect to the New York city employees' retirement system." Such\nresolution of the board of education, however, shall not take effect\nuntil and unless it is approved by the board of estimate of such city.\n  4. Notwithstanding any provision of this section or any other\nprovision of law, in a city having a population of one million or more\nthe board of education is authorized to adopt a resolution amending the\nprovisions governing any retirement system adopted pursuant to or\nsubject to the provisions of this section to the extent necessary to put\ninto effect a pensions-providing-for-increased-take-home-pay plan\nanalogous to that authorized by a chapter of the laws of nineteen\nhundred sixty-two, entitled "An act to amend the administrative code of\nthe city of New York, in relation to authorizing pensions-providing-for-\nincreased-take-home-pay and death benefits with respect to the New York\ncity employees' retirement system." Such resolution of the board of\neducation, however, shall not take effect until and unless it is\napproved by the board of estimate of such city.\n  5. Notwithstanding any provision of this section or any other\nprovision of law, in a city having a population of one million or more\nthe board of education is authorized to adopt a resolution amending the\nprovisions governing any retirement system adopted pursuant to or\nsubject to the provisions of this section to the extent necessary to put\ninto effect a pensions-providing-for-increased-take-home-pay plan for\nthe fiscal year nineteen hundred sixty-three--nineteen hundred\nsixty-four analogous to that authorized for the fiscal year nineteen\nhundred sixty-two--nineteen hundred sixty-three by chapter seven hundred\neighty-seven of the laws of nineteen hundred sixty-two. Such resolution\nof the board of education, however, shall not take effect until and\nunless it is approved by the mayor of such city.\n  6. Notwithstanding any provision of this section or any other\nprovision of law, in a city having a population of one million or more,\nthe board of education is authorized to adopt a resolution amending the\nprovisions governing any retirement system adopted pursuant to or\nsubject to the provisions of this section to the extent necessary to put\ninto effect a pensions-providing-for-increased-take-home-pay plan for\nthe fiscal year nineteen hundred sixty-four--nineteen hundred sixty-five\nanalogous to that authorized for the fiscal year nineteen hundred\nsixty-three--nineteen hundred sixty-four by chapter five hundred\nseventeen of the laws of nineteen hundred sixty-three. Such resolution\nof the board of education, however, shall not take effect until and\nunless it is approved by the mayor of such city.\n  7. Notwithstanding any provision of this section or any other\nprovision of law, in a city having a population of one million or more,\nthe board of education is authorized to adopt a resolution amending the\nprovisions governing any retirement system adopted pursuant to or\nsubject to the provisions of this section to the extent necessary to put\ninto effect a pensions-providing-for-increased-take-home-pay plan for\nthe fiscal year nineteen hundred sixty-five--nineteen hundred sixty-six\nanalogous to that authorized for the fiscal year nineteen hundred\nsixty-two--nineteen hundred sixty-three by chapter seven hundred\neighty-nine of the laws of nineteen hundred sixty-two. Such resolution\nof the board of education, however, shall not take effect until and\nunless it is approved by the mayor of such city.\n  8. Notwithstanding any provision of this section or any other\nprovision of law, in a city having a population of one million or more,\nthe board of education is authorized to adopt a resolution amending the\nprovisions governing any retirement system adopted pursuant to or\nsubject to the provisions of this section to the extent necessary to put\ninto effect a pensions-providing-for-increased-take-home-pay plan for\nthe fiscal year nineteen hundred sixty-six--nineteen hundred sixty-seven\nanalogous to that authorized for the fiscal year nineteen hundred\nsixty-two--nineteen hundred sixty-three by chapter seven hundred\neighty-nine of the laws of nineteen hundred sixty-two. Such resolution\nof the board of education, however, shall not take effect until and\nunless it is approved by the mayor of such city.\n  9. Notwithstanding any provision of this section or any other\nprovision of law, in a city having a population of one million or more,\nthe board of education is authorized to adopt a resolution amending the\nprovisions governing any retirement system adopted pursuant to or\nsubject to the provisions of this section to the extent necessary to put\ninto effect a pensions-providing-for-increased-take-home-pay plan for\nthe fiscal year nineteen hundred sixty-seven-nineteen hundred\nsixty-eight analogous to that authorized for the fiscal year nineteen\nhundred sixty-two-nineteen hundred sixty-three by chapter seven hundred\neighty-nine of the laws of nineteen hundred sixty-two. Such resolution\nof the board of education, however, shall not take effect until and\nunless it is approved by the mayor of such city.\n  10. Notwithstanding any provision of this section or any other\nprovision of law, in a city having a population of one million or more,\nthe board of education is authorized to adopt a resolution amending the\nprovisions governing any retirement system adopted pursuant to or\nsubject to the provisions of this section to the extent necessary to put\ninto effect a pension-providing-for-increased-take-home-pay plan, in\naddition to the plan authorized by subdivision nine of this section, for\nmembers who are employees of the board of education in the titles of\nattendance teacher, attendance officer, attendance teacher (Spanish\nspeaking), auxiliary attendance teacher, or auxiliary attendance\nofficer, for the period September first, nineteen hundred sixty-seven\nthrough June thirtieth, nineteen hundred sixty-eight, analogous to that\nauthorized for the fiscal year nineteen hundred sixty-two--nineteen\nhundred sixty-three by chapter seven hundred eighty-nine of the laws of\nnineteen hundred sixty-two, provided, however, that the reduced rate of\ncontribution factor to be used on computing the reduction provided for\nin the resolution authorized by this subdivision in the contributions of\nsuch members may be designated by the board of education as three per\ncentum.  Such resolution may contain provisions for a period of\nretroactive applicability analogous to those contained in paragraph\nthirteen of subdivision j of section B3--36.1 of the administrative code\nof the city of New York, as such section was added by chapter seven\nhundred eighty-seven of the laws of nineteen hundred sixty-two. Such\nresolution may also provide that the amount of the reduction provided\nfor in the resolution in the contributions of any members to whom such\nresolution applies, attributable to the period of retroactive\napplicability of such resolution shall be refunded by the system without\ninterest. Such resolution of the board of education, however, shall not\ntake effect until and unless it is approved by the mayor of such city.\n  11. Notwithstanding any provision of this section or any other\nprovision of law, in a city having a population of one million or more,\nthe board of education is authorized to adopt a resolution amending the\nprovisions governing any retirement system adopted pursuant to or\nsubject to the provisions of this section to the extent necessary to put\ninto effect a pensions-providing-for-increased-take-home-pay plan for\nthe fiscal year nineteen hundred sixty-eight--nineteen hundred\nsixty-nine analogous to that authorized for the fiscal year nineteen\nhundred sixty-two--nineteen hundred sixty-three by chapter seven hundred\neighty-nine of the laws of nineteen hundred sixty-two, provided,\nhowever, that\n  (1) the reduced rate of contribution factor to be used in computing\nthe reduction in contributions of members who are employees of the board\nof education in the titles of attendance teacher, attendance officer,\nattendance teacher (spanish speaking), auxiliary attendance teacher, may\nbe designated by the board of education as eight per centum, and\nprovided further, however, that\n  (2) the reduced rate of contribution factor to be used in computing\nthe reductions of any member who is eligible for the benefits analogous\nto the career pension plan of the New York city employees' retirement\nsystem, if a bill entitled "An act to amend the administrative code of\nthe city of New York and the military law, in relation to providing\nadditional rights, privileges, and benefits for members of the New York\ncity employees' retirement system and establishing an optional career\npension plan for certain of such members" is enacted into law, and if\nthe board of education adopts a resolution amending the provisions\ngoverning any retirement system adopted pursuant to or subject to the\nprovisions of this section to provide a plan analogous to such career\npension plan, regardless of whether such member elects the benefits of\nsuch analogous plan, may be designated by the board of education as four\nper centum. Such resolution of the board of education, however, shall\nnot take effect until and unless it is approved by the mayor of such\ncity.\n  12. Notwithstanding any provisions of this section or any other\nprovision of law, in a city having a population of one million or more,\nthe board of education is authorized to adopt a resolution amending the\nprovisions governing any retirement system adopted pursuant to or\nsubject to the provisions of this section to the extent necessary to put\ninto effect a pensions-providing-for-increased-take-home-pay plan for\nthe fiscal year nineteen hundred sixty-nine--nineteen hundred seventy\nanalogous to that authorized for the fiscal year nineteen hundred\nsixty-two--nineteen hundred sixty-three by chapter seven hundred\neighty-nine of the laws of nineteen hundred sixty-two, provided,\nhowever, that\n  (1) the reduced-rate-of-contribution factor to be used in computing\nthe reduction in contributions of members who are employees of the board\nof education in the titles of attendance teacher, attendance officer,\nattendance teacher (spanish speaking), auxiliary attendance teacher, may\nbe designated by the board of education as eight percentum, and provided\nfurther, however, that\n  (2) the reduced-rate-of-contribution factor to be used in computing\nthe reductions of any member who is a career pension plan member or who\nis eligible to elect to become a career pension plan member under the\nprovisions governing any retirement system adopted pursuant to or\nsubject to the provisions of this section, regardless of whether such\nmember makes such election, may be designated by the board of education\nas four percentum, and provided further, however, that\n  (3) the reduced-rate-of-contribution factor to be used in computing\nthe reductions of any member other than a member mentioned in paragraphs\none and two of this subdivision twelve may be designated by the board of\neducation as five per centum, and provided further, however, that\n  (4) such resolution of the board of education shall not take effect\nuntil and unless it is approved by the mayor of such city.\n  13. Notwithstanding any provisions of this section or any other\nprovision of law to the contrary, in a city having a population of one\nmillion or more, the board of education is authorized to adopt a\nresolution amending the provisions governing any retirement system\nadopted pursuant to or subject to the provisions of this section to the\nextent necessary to put into effect a pensions-providing-for-increased-\ntake-home-pay plan for the fiscal year nineteen hundred\nseventy--nineteen hundred seventy-one analogous to that authorized for\nthe fiscal year nineteen hundred sixty-two--nineteen hundred sixty-three\nby chapter seven hundred eighty-nine of the laws of nineteen hundred\nsixty-two, provided, however, that\n  (1) the reduced-rate-of-contribution factor to be used in computing\nthe reductions of any member who is a career pension plan member or who\nis eligible to elect to become a career pension plan member under the\nprovisions governing any retirement system adopted pursuant to or\nsubject to the provisions of this section, regardless of whether such\nmember makes such election, may be designated by the board of education\nas four percentum, and provided further, however, that\n  (2) the reduced-rate-of-contribution factor to be used in computing\nthe reductions of any member other than a member mentioned in paragraph\none of this subdivision thirteen may be designated by the board of\neducation as five per centum, and provided further, however, that\n  (3) such resolution of the board of education shall not take effect\nuntil and unless it is approved by the mayor of such city.\n  14. (1) In the event that:\n  (a) a bill entitled "An act to amend the administrative code of the\ncity of New York and chapter eight hundred seventeen of the laws of\nnineteen hundred sixty-nine, entitled, 'An act to amend the\nadministrative code of the city of New York, in relation to providing\nadditional rights, privileges and benefits for members of the New York\ncity employees' retirement system who are career pension plan members or\nfifty-five-year-increased-service-fraction members, and for certain\nbeneficiaries of such system', in relation to establishing a new career\npension plan for certain members of the New York city employees'\nretirement system" is enacted into law; and\n  (b) The provisions which govern a retirement system established\npursuant to this section with respect to the board of education of a\ncity having a population of one million or more and which were adopted\npursuant or subject to this section are amended pursuant or subject to\nthis section so that such provisions include a retirement plan analogous\nto that set forth in such bill; no plan for pensions-providing-for-\nincreased-take-home-pay shall be adopted for the fiscal year nineteen\nhundred seventy-one--nineteen hundred seventy-two with respect to the\nmembers of such retirement system.\n  (2) In the event that such bill referred to in paragraph one of this\nsubdivision fourteen is not enacted into law, such board of education\nreferred to in paragraph one of this subdivision fourteen, is\nauthorized, notwithstanding any provision of this section or any other\nprovision of law to the contrary, to adopt a resolution amending the\nprovisions governing such retirement system adopted pursuant or subject\nto the provisions of this section to the extent necessary to put into\neffect a pensions-providing-for-increased-take-home-pay plan for the\nfiscal year nineteen hundred seventy-one--nineteen hundred seventy-two\nanalogous to that authorized for the fiscal year nineteen hundred\nsixty-two--nineteen hundred sixty-three by chapter seven hundred\neighty-nine of the laws of nineteen hundred sixty-two, provided,\nhowever, that\n  (a) the reduced-rate-of-contribution factor to be used in computing\nthe reduction in contributions of members under such plan may be\ndesignated by the board of education to be four per centum, and provided\nfurther, however, that\n  (b) such resolution of the board of education shall not take effect\nunless and until it is approved by the mayor of such city.\n  15. (1) In the event that:\n  (a) a bill entitled "An act to amend the administrative code of the\ncity of New York and chapter eight hundred seventeen of the laws of\nnineteen hundred sixty-nine, entitled, 'An act to amend the\nadministrative code of the city of New York, in relation to providing\nadditional rights, privileges and benefits for members of the New York\ncity employees' retirement system who are career pension plan members or\nfifty-five-year-increased-service-fraction members, and for certain\nbeneficiaries of such system', in relation to establishing a new career\npension plan for certain members of the New York city employees'\nretirement system" is enacted into law; and\n  (b) the provisions which govern a retirement system established\npursuant to this section with respect to the board of education of a\ncity having a population of one million or more and which were adopted\npursuant or subject to this section are amended pursuant or subject to\nthis section so that such provisions include a retirement plan analogous\nto that set forth in such bill;\nno plan for pensions-providing-for-increased-take-home-pay shall be\nadopted for the fiscal year nineteen hundred seventy-two--nineteen\nhundred seventy-three with respect to the members of such retirement\nsystem.\n  (2) In the event that such bill referred to in paragraph one of this\nsubdivision fifteen is not enacted into law, such board of education\nreferred to in paragraph one of this subdivision fifteen, is authorized,\nnotwithstanding any provision of this section or any other provision of\nlaw to the contrary, to adopt a resolution amending the provisions\ngoverning such retirement system adopted pursuant or subject to the\nprovisions of this section to the extent necessary to put into effect a\npensions-providing-for-increased-take-home-pay plan for the fiscal year\nnineteen hundred seventy-two--nineteen hundred seventy-three analogous\nto that authorized for the fiscal year nineteen hundred\nsixty-two--nineteen hundred sixty-three by chapter seven hundred\neighty-nine of the laws of nineteen hundred sixty-two, provided,\nhowever, that\n  (a) the reduced-rate-of-contribution factor to be used in computing\nthe reduction in contributions of members under such plan may be\ndesignated by the board of education to be four per centum, and provided\nfurther, however, that\n  (b) such resolution of the board of education shall not take effect\nunless and until it is approved by the mayor of such city.\n  16. (a) As used in this subdivision, the following terms shall mean\nand include:\n  (1) "Board of education". The board of education of a city.\n  (2) "City". A city having a population of one million or more.\n  (3) "Rules and regulations". The rules and regulations for the\ngovernment, management and control of the retirement system adopted\npursuant to this section.\n  (4) "Retirement system". The board of education retirement system\nestablished pursuant to the provisions of this section in a city.\n  (5) (i) "Normal contribution for balance sheet liability purposes".\nThe hypothetical amount which the normal contribution payable in each\ncity fiscal year occurring during the period beginning on July first,\nnineteen hundred seventy-four and ending on June thirtieth, nineteen\nhundred eighty would have equalled if such normal contribution had been\nrequired by law to be paid to the contingent reserve fund in the city\nfiscal year in which the obligation to make such normal contribution\naccrued and such normal contribution had been required by law to be\ndetermined in the manner provided for in items (ii), (iii) and (iv) of\nthis subparagraph.\n  (ii) Upon the basis of the mortality and other tables effective under\nthe rules and regulations as of July first, nineteen hundred\nseventy-seven and interest at the rate of five and one-half per centum\nper annum, the actuary shall determine, as of June thirtieth next\npreceding each such fiscal year for which such normal contribution is\nbeing determined (hereinafter referred to as the "subject fiscal year")\nthe amount of the then total liability for all benefits provided in the\nrules and regulations, in articles eleven and fourteen of the retirement\nand social security law and in any other law prescribing benefits\npayable by the retirement system on account of all then members and\nbeneficiaries, exluding the then liability on account of future annual\ncontributions, for balance sheet liability purposes, on account of\nreserves-for-increased-take-home-pay (as defined in subparagraph eight\nof this paragraph), if any, and the then liability for benefits\nattributable to the annuity savings fund and to the variable annuity\nsavings fund.\n  (iii) The hypothetical normal rate of contribution with respect to the\nsubject fiscal year shall be the rate per centum obtained:\n  (A) by adding together:\n  (1) the present value of all then required future unfunded accrued\nliability contributions for balance sheet liability purposes (as defined\nin subparagraph six of this paragraph); and\n  (2) the present value of all then required future annual\ncontributions, for balance sheet liability purposes, on account of\namortization of losses on dispositions of certain securities within the\nmeaning of subdivision six of section seven of the rules and regulations\n(as defined in subparagraph seven of this paragraph); and\n  (3) the present value of future member contributions of members\nsubject to article fourteen of the retirement and social security law;\nand\n  (4) the amount obtained by adding together the total funds on hand\n(excluding therefrom the then amount in the annuity savings fund and in\nthe variable annuity savings fund) and the balance sheet liability as of\nsuch June thirtieth next preceding the subject fiscal year; and\n  (B) by subtracting from the amount of the total liability determined\npursuant to item (ii) of this subparagraph the sum resulting from the\naddition prescribed by sub-item (A) of this item; and\n  (C) by dividing the remainder resulting from the subtraction\nprescribed by sub-item (B) of this item by one per centum of the then\npresent value of the prospective future salaries of all members, as\ncomputed on the basis of the mortality and service tables adopted\npursuant to subdivision two of section five of the rules and regulations\nand in effect on July first, nineteen hundred seventy-seven, and on the\nbasis of interest at the rate of five and one-half per centum per annum.\n  (iv) The amount of the normal contribution for balance sheet liability\npurposes hypothetically payable in the subject fiscal year shall be the\namount obtained (1) by multiplying such hypothetical normal contribution\nrate computed with respect to the subject fiscal year by the aggregate\nannual salaries of the members as of June thirtieth of the subject\nfiscal year and (2) by adding to the product of such multiplication,\ninterest on such product at the rate of five and one-half per centum per\nannum for a period of six months.\n  (6) "Unfunded accrued liability contribution for balance sheet\nliability purposes". (i) With respect to the city's nineteen hundred\nseventy-four--nineteen hundred seventy-five fiscal year, such term shall\nmean a hypothetical amount which, if paid to the contingent reserve fund\nin forty equal annual installments, beginning with payment of a first\ninstallment in the city's nineteen hundred seventy-four--nineteen\nhundred seventy-five fiscal year, would be the actuarial equivalent, on\nthe basis of interest at the rate of five and one-half per centum per\nannum, of the remainder computed in the manner prescribed by items (ii)\nand (iii) of this subparagraph.\n  (ii) Upon the basis of the actuarial tables in effect as of July\nfirst, nineteen hundred seventy-seven for valuation purposes and\ninterest at the rate of five and one-half per centum per annum, there\nshall be computed, as of June thirtieth, nineteen hundred seventy-four,\nthe amount of the total liability for all benefits provided by the rules\nand regulations, in article eleven of the retirement and social security\nlaw and in any other law prescribing benefits payable by the retirement\nsystem on account of all members and beneficiaries, excluding the\nliability on account of future increased-take-home-pay contributions and\nthe liability for benefits attributable to the annuity savings fund and\nthe variable annuity savings fund.\n  (iii) From such total liability computed pursuant to item (ii) of this\nsubparagraph there shall be subtracted the sum of:\n  (A) the present value, as of June thirtieth, nineteen hundred\nseventy-four, of all future normal costs of the retirement system,\ncomputed pursuant to the entry age normal cost method of determining\nsuch normal costs; and\n  (B) the present value, as of June thirtieth, of all required future\npayments, pursuant to subdivision six of section seven of the rules and\nregulations (as then in effect), of installments of losses in excess of\ninstallments of gains on dispositions of securities within the meaning\nof such subdivision; and\n  (C) the sum obtained by adding together the balance sheet liability as\nof such June thirtieth, (as such liability is determined pursuant to the\nprovisions of subparagraph seven of paragraph (c) of this subdivision)\nand the total funds on hand as of such June thirtieth, excluding the\namount in the annuity savings fund and the variable annuity savings\nfund, but including the amount of any unpaid moneys appropriated\npursuant to section nine of the rules and regulations.\n  (iv) With respect to each of the city's fiscal years occurring during\nthe period from July first, nineteen hundred seventy-five to June\nthirtieth, nineteen hundred eighty, such term shall mean a hypothetical\namount which, if paid to the contingent reserve fund in forty equal\nannual installments, beginning with payment of a first installment in\nthe city's nineteen hundred seventy-five--nineteen hundred seventy-six\nfiscal year, would be the actuarial equivalent, on the basis of interest\nat the rate of five and one-half per centum per annum, of the remainder\ncomputed pursuant to items (v) and (vi) of this subparagraph.\n  (v) Upon the basis of the actuarial tables in effect as of July first,\nnineteen hundred seventy-seven for valuation purposes and interest at\nthe rate of five and one-half per centum per annum, there shall be\ncomputed, as of June thirtieth, nineteen hundred seventy-five, the\namount of the total liability for all benefits provided by the rules and\nregulations, in article eleven of the retirement and social security law\nand in any other law prescribing benefits payable by the retirement\nsystem on account of all members and beneficiaries, excluding the\nliability on account of future increased-take-home-pay contributions and\nthe liability for benefits attributable to the annuity savings fund and\nthe variable annuity savings fund.\n  (vi) From such total liability computed pursuant to item (v) of this\nsubparagraph, there shall be subtracted the sum of:\n  (A) the present value, as of June thirtieth, nineteen hundred\nseventy-five, of all future normal costs of the retirement system,\ncomputed pursuant to the entry age normal cost method of determining\nsuch normal costs; and\n  (B) the present value, as of such June thirtieth, of all then required\nfuture payments, pursuant to subdivision six of section seven of the\nrules and regulations (as then in effect), of installments of losses in\nexcess of installments of gains on dispositions of securities within the\nmeaning of such subdivision; and\n  (C) the sum obtained by adding together the balance sheet liability as\nof such June thirtieth, (as such liability is determined pursuant to the\nprovisions of subparagraphs eight to fourteen, inclusive of this\nsub-item and the total funds on hand, as of such June thirtieth,\nexcluding the amount in the annuity savings fund and the variable\nannuity savings fund, but including the amount of any unpaid moneys\nappropriated pursuant to section nine of the rules and regulations.\n  (7) "Annual contribution, for balance sheet liability purposes, on\naccount of amortization of losses on dispositions of certain securities\nwithin the meaning of subdivision six of section seven of the rules and\nregulations". A hypothetical annual payment to the contingent reserve\nfund in each of the city's fiscal year occurring during the period\nbeginning on July first, nineteen hundred seventy-four and ending on\nJune thirtieth, nineteen hundred eighty, of the amount of the excess of\ninstallments (payable in such year) of losses on prior dispositions of\nsecurities within the meaning of subdivision six of section seven of the\nrules and regulations (related to graduated crediting of gains and\namortization of losses on dispositions of certain securities) over\ninstallments (creditable in such year) of gains on such prior\ndispositions, which annual amount shall be determined in the manner\nprovided for in such subdivision six.\n  (8) "Annual contribution, for balance sheet liability purposes, on\naccount of reserves-for-increased-take-home-pay". A hypothetical annual\npayment to the contingent reserve fund in each of the city's fiscal\nyears occurring during the period from July first, nineteen hundred\nseventy-four to June thirtieth, nineteen hundred eighty, of the amount\nrequired to fulfill the public employer obligation, which accrued in\nsuch year to make contributions on account of increased-take-home-pay.\n  (9) "Annual military law contribution for balance sheet liability\npurposes". A hypothetical annual payment to the contingent reserve fund\nin each of the city's fiscal years occurring during the period beginning\non July first, nineteen hundred seventy-four and ending on June\nthirtieth, nineteen hundred eighty, of the amount required to fulfill\nthe public employer obligation, which accrued in such year under the\nprovisions of subdivision twenty of section two hundred forty-three of\nthe military law, to pay in behalf of members qualifying for such\nbenefit member contributions with respect to certain periods of military\nservice of such members.\n  (10) "Deficiency contribution". The annual amount which, under the\nprovisions of paragraph f of subdivision three of section eight of the\nrules and regulations, the board of education was required to pay to the\ncontingent reserve fund in each of the city's nineteen hundred\nseventy-four--nineteen hundred seventy-five, nineteen hundred\nseventy-five--nineteen hundred seventy-six and nineteen hundred\nseventy-six--nineteen hundred seventy-seven fiscal years.\n  (11) "Contribution on account of amortization, pursuant to subdivision\nsix of section seven of the rules and regulations, of losses on\ndispositions of certain securities". The total annual amount by which\nthe sum of the installments of losses, payable pursuant to subdivision\nsix of section seven of the rules and regulations (as in effect prior to\nJuly first, nineteen hundred eighty) in each of the city's fiscal years\noccurring during the period from July first, nineteen hundred\nseventy-four to June thirtieth, nineteen hundred eighty in relation to\ndispositions of securities within the meaning of such subdivision six,\nexceeded the sum of the installments of gains creditable in the same\nfiscal year in relation to the same disposition of securities.\n  (b) (1) Notwithstanding any provision of subdivision fifteen of\nsection two of the rules and regulations or any other provision of the\nrules and regulations or any other provision of law to the contrary, for\nthe purpose of any actuarial valuation, determination or appraisal which\nis made pursuant to the rules and regulations or the provisions of this\nsubdivision sixteen and which is used to determine the amount of any\ncontribution required to be paid by the board of education into the\ncontingent reserve fund or pension fund of the retirement system in the\nnineteen hundred seventy-seven--nineteen hundred seventy-eight fiscal\nyear of the city or in any subsequent fiscal year of the city, "regular\ninterest" shall mean interest as defined in this paragraph and any\ndefinition of regular interest in such rules and regulations shall not\napply to any such actuarial valuation, determination or appraisal.\n  (2) Subject to the provisions of item (ii) of subparagraph six of this\nparagraph, for the purpose of any actuarial valuation, determination or\nappraisal which is made pursuant to the rules and regulations or the\nprovisions of this subdivision and which is used to determine the amount\nof any contribution required to be paid by the board of education into\nthe contingent reserve fund or pension fund of the retirement system in\nthe nineteen hundred seventy-seven--nineteen hundred seventy-eight\nfiscal year of the city and in each succeeding fiscal year thereof to\nand including the nineteen hundred seventy-nine--nineteen hundred eighty\nfiscal year thereof, "regular interest" shall mean interest at five and\none-half per centum per annum, compounded annually.\n  (3) (i) Subject to the provisions of item (ii) of subparagraph six of\nthis paragraph and except as otherwise provided in subparagraphs seven\nto sixteen, inclusive, of paragraph (c) of this subdivision with respect\nto determination of the amount of the balance sheet liability as of June\nthirtieth, nineteen hundred eighty and balance sheet liability\ncontributions, for the purpose of any actuarial valuation, determination\nor appraisal which is made pursuant to the rules and regulations or the\nprovisions of this subdivision and which is used to determine the amount\nof any contribution required to be paid by the board of education into\nthe contingent reserve fund of the retirement system in the nineteen\nhundred eighty--nineteen hundred eighty-one fiscal year of the city and\nin each succeeding fiscal year thereof to and including the nineteen\nhundred eighty-one--nineteen hundred eighty-two fiscal year thereof,\n"regular interest" shall mean interest at the rate of seven and one-half\nper centum per annum, compounded annually.\n  (ii) Subject to the provisions of item (ii) of subparagraph six of\nthis paragraph and except as otherwise provided in subparagraphs seven\nto sixteen, inclusive, of paragraph (c) of this subdivision with respect\nto determination of the amount of the balance sheet liability as of June\nthirtieth, nineteen hundred eighty and balance sheet liability\ncontributions, for the purpose of any actuarial valuation, determination\nor appraisal which is made pursuant to the rules and regulations or the\nprovisions of this subdivision and which is used to determine the amount\nof any contribution required to be paid by the board of education into\nthe contingent reserve fund of the retirement system in the nineteen\nhundred eighty-two--nineteen hundred eighty-three fiscal year of the\ncity and in each succeeding fiscal year thereof to and including the\nnineteen hundred eighty-seven--nineteen hundred eighty-eight fiscal year\nthereof, "regular interest" shall mean interest at the rate of eight per\ncentum per annum, compounded annually.\n  (iii) Subject to the provisions of item (ii) of subparagraph six of\nthis paragraph and except as otherwise provided in subparagraphs seven\nto sixteen, inclusive, of paragraph (c) of this subdivision with respect\nto determination of the amount of the balance sheet liability as of June\nthirtieth, nineteen hundred eighty and balance sheet liability\ncontributions, for the purpose of any actuarial valuation, determination\nor appraisal which is made pursuant to the rules and regulations or the\nprovisions of this subdivision and which is used to determine the amount\nof any contribution required to be paid by the board of education into\nthe contingent reserve fund of the retirement system in the nineteen\nhundred eighty-eight--nineteen hundred eighty-nine fiscal year of the\ncity and the nineteen hundred eighty-nine--nineteen hundred ninety\nfiscal year thereof, "regular interest" shall mean interest at the rate\nof eight and one-quarter per centum per annum, compounded annually.\n  (4) Subject to the provisions of item (ii) of subparagraph six of this\nparagraph, and except as otherwise provided in subparagraphs seven to\nsixteen, inclusive, of paragraph (c) of this subdivision with respect to\ndetermination of the amount of the balance sheet liability as of June\nthirtieth, nineteen hundred eighty and balance sheet liability\ncontributions, for the purpose of any actuarial valuation, determination\nor appraisal which is made pursuant to the rules and regulations or the\nprovisions of this subdivision and which is used to determine the amount\nof any contribution required to be paid by the board of education into\nthe contingent reserve fund or pension fund of the retirement system in\nthe city's nineteen hundred ninety--nineteen hundred ninety-one fiscal\nyear and in any subsequent fiscal year thereof, "regular interest" shall\nmean interest at such rate per annum, compounded annually, as shall be\nprescribed by the legislature in section 13-638.2 of the administrative\ncode of the city.\n  (5) On or after May first, nineteen hundred eighty-nine and no later\nthan October thirty-first of such year the retirement board of the\nretirement system shall submit to the governor, the temporary president\nand minority leader of the senate, the speaker of the assembly, the\nmajority and minority leaders of the assembly, the state superintendent\nof financial services, the mayor of the city, and the members of the\ncity council thereof, the written recommendations of the retirement\nboard as to the rate of interest and effective period thereof which\nshould be established by law as "regular interest" for the purpose\nspecified in subparagraph four of this paragraph.\n  (6) (i) Subject to the provisions of item (iv) of subparagraph three\nof paragraph (c) of this subdivision, nothing contained in subparagraphs\none, two, three, four and five of this paragraph shall be construed as\nprescribing, for the purpose of crediting interest to individual\naccounts in the annuity savings fund or to\nreserves-for-increased-take-home-pay or for any other purpose besides\nthat specified in such subparagraphs, a rate of regular interest other\nthan as prescribed by the applicable provisions of subdivision fifteen\nof section two of the rules and regulations and subdivision seventeen of\nthis section.\n  (ii) Subject to the provisions of section 13-638.2 of the\nadministrative code of the city, nothing contained in subparagraphs two,\nthree and four of this paragraph shall be construed as requiring the\noriginal unfunded accrued liability contribution, as defined in item (i)\nof subparagraph five of paragraph (c) of this subdivision, and the\nrevised unfunded accrued liability contribution, as defined in item (ii)\nof such subparagraph, and the nineteen hundred eighty unfunded accrued\nliability adjustment, as defined in subparagraph six of such paragraph\n(c), and the nineteen hundred eighty-two unfunded accrued liability\nadjustment, as defined in such subparagraph six, to be determined in any\nmanner other than as prescribed by the applicable provisions of such\nitems and such subparagraph six. Subject to the provisions of such\nsection 13-638.2, nothing contained in subparagraphs two, three and four\nof this paragraph shall be construed as requiring any balance sheet\nliability or balance sheet liability contribution computed pursuant to\nthe provisions of subparagraphs seven to sixteen, inclusive, of\nparagraph (c) of this subdivision to be determined in any manner other\nthan as prescribed in such subparagraphs.\n  (c) (1) (i) Notwithstanding the provisions of paragraphs b and f of\nsubdivision three of section eight of the rules and regulations or any\nother provision of the rules and regulations or any other provision of\nlaw to the contrary;\n  (A) the provisions of subparagraphs two, three, four and five of this\nparagraph (c), as in effect during the period from July first, nineteen\nhundred seventy-seven to June thirtieth, nineteen hundred eighty, shall\ngovern the contributions payable by the board of education to the\ncontingent reserve fund of the retirement system in the city's nineteen\nhundred seventy-seven--nineteen hundred seventy-eight fiscal year and in\neach city fiscal year thereafter to and including the nineteen hundred\nseventy-nine--nineteen hundred eighty fiscal year, and no contributions\nshall be payable by the board of education to such fund in any such\nfiscal year other than the contributions prescribed by the applicable\nprovisions of such subparagraphs two, three, four and five; and\n  (B) the applicable provisions of this paragraph, as in effect on and\nafter July first, nineteen hundred eighty, and the provisions of\nsections 13-638.2, 13-695 and 13-704 of the administrative code of the\ncity and any other applicable laws shall govern the contributions\npayable by the board of education to the contingent reserve fund in the\ncity's nineteen hundred eighty--nineteen hundred eighty-one fiscal year\nand in each city fiscal year thereafter, and no contributions shall be\npayable by the board of education to such fund in any such fiscal year\nother than the contributions prescribed by the applicable provisions of\nthis paragraph and such sections and laws.\n  (ii) The contribution payable by the board of education to such\ncontingent reserve fund in the nineteen hundred seventy-six--nineteen\nhundred seventy-seven fiscal year of the city, including, without\nlimitation, the contribution required by paragraph f of subdivision\nthree of section eight of the rules and regulations, shall be governed\nby the applicable provisions of the rules and regulations as in effect\nimmediately prior to July first, nineteen hundred seventy-seven.\n  (2) Subject to the provisions of law referred to in sub-item (B) of\nitem (i) of subparagraph one of this paragraph, the board of education\nshall contribute to the contingent reserve fund:\n  (i) annually an amount computed pursuant to subparagraph four of this\nparagraph, to be known as the "normal contribution"; and\n  (i-A) all unfunded accrued liability installments as required by\nsection 13-638.2 of the administrative code of the city of New York or\nany other provision of law; and\n  (i-B) any other payments to the contingent reserve fund as required by\napplicable law; and\n  (ii) in each city fiscal year during the period beginning with the\nfiscal year nineteen hundred seventy-seven--nineteen hundred\nseventy-eight and ending on the last day of fiscal year nineteen hundred\nseventy-nine--nineteen hundred eighty, one annual installment of an\nadditional amount computed pursuant to item (i) of subparagraph five of\nthis paragraph, which shall be known as the "original unfunded accrued\nliability contribution"; and\n  (iii) in each city fiscal year during the period beginning with fiscal\nyear nineteen hundred eighty--nineteen hundred eighty-one and ending on\nthe last day of fiscal year two thousand fourteen--two thousand fifteen,\nthe annual installment, applicable to such fiscal year, of an additional\namount which shall be known as the revised unfunded accrued liability\ncontribution and which shall be determined as provided for in item (ii)\nof subparagraph five of this paragraph; and\n  (iv) in each city fiscal year during the period beginning with fiscal\nyear nineteen hundred eighty-one--nineteen hundred eighty-two and ending\non the last day of fiscal year two thousand twenty--two thousand\ntwenty-one, the annual installment, applicable to such fiscal year, of\nan additional amount which shall be known as the balance sheet liability\ncontribution and which shall be determined as provided for in\nsubparagraphs seven to sixteen, inclusive, of this paragraph; and\n  (v) in fiscal year nineteen hundred eighty--nineteen hundred\neighty-one, the amount of one year's interest, at the rate of seven and\none-half per centum per annum, on the amount of the balance sheet\nliability as of June thirtieth, nineteen hundred eighty, as determined\npursuant to the provisions of subparagraphs seven to fifteen, inclusive,\nof this paragraph; and\n  (vi) in each city fiscal year, beginning with fiscal year nineteen\nhundred eighty--nineteen hundred eighty-one and ending on the last day\nof fiscal year nineteen hundred ninety-four--nineteen hundred\nninety-five, the amount required to fulfill the public employer\nobligation, which accrued in such fiscal year, to make contributions on\naccount of increased-take-home-pay; and\n  (vii) in each city fiscal year, beginning with fiscal year nineteen\nhundred eighty--nineteen hundred eighty-one and ending on the last day\nof fiscal year nineteen hundred ninety-four--nineteen hundred\nninety-five, the amount required to fulfill the public employer\nobligation, which accrued in such fiscal year under the provisions of\nsubdivision twenty of section two hundred forty-three of the military\nlaw, to pay in behalf of members qualifying for such benefit, member\ncontributions with respect to certain periods of the military service of\nsuch members.\n  (3) (i) If the nineteen hundred eighty unfunded accrued liability\nadjustment determined pursuant to subparagraph six of this paragraph is\na credit, the total of the amounts required to be contributed to the\ncontingent reserve fund in each city fiscal year, commencing with the\nnineteen hundred eighty--nineteen hundred eighty-one fiscal year and\nending with the two thousand nine--two thousand ten fiscal year,\npursuant to items (i), (iii), (iv), (v), (vi) and (vii) of subparagraph\ntwo of this paragraph shall be reduced by the amount of one annual\ninstallment of such nineteen hundred eighty unfunded accrued liability\nadjustment.\n  (ii) (A) If the nineteen hundred eighty unfunded accrued liability\nadjustment determined pursuant to such subparagraph six is a charge, the\nboard of education shall contribute in each city fiscal year, commencing\nwith the nineteen hundred eighty--nineteen hundred eighty-one fiscal\nyear and ending with the two thousand nine--two thousand ten fiscal\nyear, in addition to the amounts required to be contributed under the\nprovisions of subparagraph two of this paragraph (c), one annual\ninstallment of such nineteen hundred eighty unfunded accrued liability\nadjustment.\n  (B) The total of the amounts required to be contributed to the\ncontingent reserve fund in each city fiscal year commencing with the\nnineteen hundred eighty-two--nineteen hundred eighty-three fiscal year\nand ending with the two thousand eleven--two thousand twelve fiscal year\npursuant to items (i), (iii), (iv), (vi) and (vii) of subparagraph (2)\nof this paragraph (c) and the applicable provisions of item (i) of this\nsubparagraph (3) and sub-item (A) of this item (ii) and otherwise\npursuant to law shall be reduced by the amount of one annual installment\nof the nineteen hundred eighty-two unfunded accrued liability adjustment\ndetermined pursuant to item (vi) of subparagraph (6) of this paragraph\n(c).\n  (C) The total of the amounts required to be contributed to the\ncontingent reserve fund in each city fiscal year commencing with the\nnineteen hundred eighty-five--nineteen hundred eighty-six fiscal year\nand ending with the two thousand fourteen--two thousand fifteen fiscal\nyear pursuant to items (i), (iii), (iv), (vi) and (vii) of subparagraph\n(2) of this paragraph (c) and the applicable provisions of item (i) of\nthis subparagraph (3) and sub-item (A) of this item (ii) and otherwise\npursuant to law shall be reduced by the amount of one annual installment\nof the nineteen hundred eighty-five unfunded accrued liability\nadjustment determined pursuant to item (vii) of subparagraph (6) of this\nparagraph (c).\n  (iii) Any amount required by the provisions of items (iii), (iv), (vi)\nand (vii) of subparagraph two of this paragraph and subdivision six of\nsection seven of the rules and regulations to be contributed to the\ncontingent reserve fund in the city's nineteen hundred eighty--nineteen\nhundred eighty-one fiscal year or any subsequent fiscal year shall be\npayable with interest on such amount at a rate per centum per annum\nequal to the rate per centum per annum required to be used for the\npurpose of any actuarial valuation, determination or appraisal made to\ndetermine the amount of the normal contribution payable to the\ncontingent reserve fund in such fiscal year.\n  (iv) Any amount required to be contributed to the contingent reserve\nfund in any fiscal year of the city preceding the nineteen hundred\neighty--nineteen hundred eighty-one fiscal year shall be deemed to have\nbeen required to be paid with interest on such amount at a rate per\ncentum per annum equal to the rate per centum per annum required to be\nused for the purpose of any actuarial valuation, determination or\nappraisal made to determine the amount of the normal contribution\npayable to the contingent reserve fund in such fiscal year.\n  (v) It is hereby declared that the provisions of items (iii) and (iv)\nof this subparagraph three, insofar as they relate to provisions of the\nrules and regulations or of this subdivision or other laws requiring\npayment of employer contributions to the retirement system prior to the\neffective date of this subparagraph, express the intent of such\nprovisions of the rules and regulations or this subdivision or other\nlaws requiring such payment.\n  (vi) For the purpose of effectuating the nineteen hundred eighty-eight\nunfunded accrued liability adjustment provided for in section 13-638.1\nof the administrative code of the city of New York, contributions to the\ncontingent reserve fund on account of charges shall be made by the\nresponsible obligor (as defined in paragraph six of subdivision a of\nsuch section) or credits shall be allowed to such obligor against\ncontributions otherwise payable by such obligor, as the case may be, to\nthe extent and in the manner provided for in such section. The annual\ndetermination of the normal contribution for fiscal years occurring\nduring the period beginning on July first, nineteen hundred eighty-eight\nand ending on June thirtieth, nineteen hundred ninety-eight shall\nappropriately take account of the nineteen hundred eighty-eight unfunded\naccrued liability adjustment and the provisions of subparagraph four of\nthis paragraph (c) shall be deemed to be conformably modified for such\npurpose.\n  (vii) The board of education and all other responsible obligors (as\ndefined in paragraph ten of subdivision a of section 13-638.2 of the\nadministrative code of the city of New York) shall make all payments to\nthe retirement system required by applicable law in accordance with the\ntime of payment requirements set forth in paragraph (j) of this\nsubdivision. Any responsible obligor which does not make all or any\nportion of such required payments to the retirement system in a timely\nmanner in fiscal year two thousand twelve--two thousand thirteen, or in\nany fiscal year thereafter, shall be required to pay interest to the\nretirement system on such overdue amounts, as determined by the actuary.\nThe actuary shall determine, at such time as he or she deems\nappropriate, interest payments on such overdue amounts using a rate of\ninterest equivalent to the valuation rate of interest (as defined in\nparagraph eleven of subdivision a of section 13-638.2 of the\nadministrative code of the city of New York). Responsible obligors shall\nmake such interest payments on overdue amounts to the retirement system\nin the manner and at such time as the actuary deems appropriate.\n  (4) Normal contribution.  (i) Notwithstanding the succeeding\nprovisions of this item or the provisions of item (i-A), (ii), (iii) or\n(iv) of this subparagraph, for fiscal year two thousand eleven--two\nthousand twelve, and for each fiscal year thereafter, the amount of the\nnormal contribution payable to the contingent reserve fund shall be\ndetermined pursuant to the provisions of item (v) of this subparagraph.\nUpon the basis of the latest mortality and other tables authorized by\nthe applicable provisions of the rules and regulations and regular\ninterest, the actuary shall determine, as of June thirtieth, nineteen\nhundred eighty and as of each succeeding June thirtieth, the amount of\nthe total liability for all benefits provided in the rules and\nregulations, in articles eleven and fourteen of the retirement and\nsocial security law and in any other law prescribing benefits payable by\nthe retirement system on account of all members and beneficiaries,\nexcluding the liability on account of future increased-take-home-pay\ncontributions, if any, and the liability for benefits attributable to\nthe annuity savings fund and to the variable annuity savings fund,\nprovided, however, that in determining such total liability as of June\nthirtieth, nineteen hundred ninety-five and as of each succeeding June\nthirtieth, the actuary shall include (A) the liability on account of\nfuture increased-take-home-pay contributions, if any, (B) the liability\non account of future public employer obligations under the provisions of\nsubdivision twenty of section two hundred forty-three of the military\nlaw, to pay in behalf of members qualifying for such benefit, member\ncontributions with respect to certain periods of the military service of\nsuch members and (C) the liability for benefits attributable to the\nannuity savings fund and to the variable annuity savings fund, and\nprovided further that in determining such total liability as of June\nthirtieth, nineteen hundred ninety-nine and as of each succeeding June\nthirtieth, the actuary shall include any other liability, as determined\nby the actuary, for benefits attributable to the variable annuity\nprograms, and provided further that in determining such total liability\nas of June thirtieth, two thousand and as of each succeeding June\nthirtieth, the actuary shall include the amount, if any, as estimated by\nthe actuary, of the total liability of the retirement system on account\nof payments which the retirement system may be required to make to any\nother fund without a corresponding offset in the liabilities of the\nretirement system.\n  (i-A) Notwithstanding any other provision of law to the contrary, for\nthe purpose of calculating the amount of the normal contribution\nannually due from the board of education to the contingent reserve fund\npursuant to item (iv) of this subparagraph in fiscal year two thousand\nfive--two thousand six, and in each fiscal year thereafter, both the\ntotal liability of the retirement system, as calculated by the actuary\nin accordance with item (i) of this subparagraph, and the normal rate of\ncontribution, as calculated by the actuary in accordance with items (ii)\nand (iii) of this subparagraph, shall be determined as of June thirtieth\nof the second fiscal year preceding the fiscal year in which the normal\ncontribution is payable, provided, however, that (A) the actuary shall\nuse for such calculations the mortality and other tables that are\napplicable at the time he or she performs such calculations; (B) the\ntotal funds on hand, as determined by the actuary pursuant to clause\nfive of sub-item (A) of item (ii) of this subparagraph, shall be\nadjusted by adding to such amount the present value of all employer\ncontributions required to be paid into the contingent reserve fund in\nthe fiscal year next preceding the fiscal year in which the normal\ncontribution is payable, as determined by the actuary; and (C) the\npresent value of the prospective future salaries of all members, as\ncomputed by the actuary for the purposes of sub-item (C) of item (ii) of\nthis subparagraph, shall be reduced by the present value of the salaries\nexpected to be paid to all members in the fiscal year next preceding the\nfiscal year in which the normal contribution is payable, as determined\nby the actuary.\n  (ii) The normal rate of contribution shall be the rate per centum\nobtained:\n  (A) by adding together:\n  (1) (a) the amount obtained by adding together the present value of\nall required future revised unfunded accrued liability contributions and\nthe present value of all required future payments of the nineteen\nhundred eighty unfunded accrued liability adjustment, determined\npursuant to subparagraph six of this paragraph, if such adjustment is a\ncharge; or\n  (b) the remainder obtained by subtracting from the present value of\nall required future revised unfunded accrued liability contributions,\nthe present value of all future installments of the nineteen hundred\neighty unfunded accrued liability adjustment required to be credited, if\nsuch nineteen hundred eighty adjustment is a credit;\n  (c) minus (whether (a) or (b) immediately preceding is applicable) the\nsum of the present value of all future installments of the nineteen\nhundred eighty-two unfunded accrued liability adjustment and the present\nvalue of all future installments of the nineteen hundred eighty-five\nunfunded accrued liability adjustment; and\n  (2) the present value of all required future balance sheet liability\ncontributions, plus, in the case of the determination of the normal\ncontribution payable in fiscal year nineteen hundred eighty--nineteen\nhundred eighty-one, the present value, as of June thirtieth, nineteen\nhundred eighty, of the payment of interest on the balance sheet\nliability as required by item (v) of subparagraph two of this paragraph\n(c); and\n  (3) the present value of all required future payments, pursuant to\nsubdivision six of section seven of the rules and regulations, of\ninstallments of losses in excess of installments of gains on\ndispositions of securities within the meaning of such subdivision; and\n  (4) in the case of the determination of the normal contribution\npayable in each fiscal year commencing with fiscal year nineteen hundred\nninety-five--nineteen hundred ninety-six, the present value of future\nmember contributions of all members; and\n  (5) the total funds on hand, including the amount of any unpaid money\nappropriated pursuant to section nine of the rules and regulations and,\nin the case of the determination of the normal contribution payable in\neach fiscal year commencing with fiscal year nineteen hundred\nninety-five--nineteen hundred ninety-six, including the amount in the\nannuity savings fund and in the variable annuity savings fund; and\n  (6) the present value of all other future installments of accrued\nliability contributions to the retirement system required by the\napplicable provisions of section 13-638.2 of the administrative code of\nthe city of New York which are not covered by the preceding paragraphs\nof this subitem (A); and\n  (B) by subtracting from the amount of the total liability determined\npursuant to item (i) of this subparagraph the sum resulting from the\naddition prescribed by sub-item (A) of this item; and\n  (C) by dividing the remainder resulting from the applicable\nsubtraction prescribed by sub-item (B) of this item by one per centum of\nthe present value of the prospective future salaries of all members, as\ncomputed by the actuary on the basis of the latest mortality and service\ntables adopted pursuant to subdivision two of section five of the rules\nand regulations, and on the basis of regular interest.\n  (iii) The normal rate of contribution determined by the actuary shall\nnot be less than zero, shall be certified by the actuary after a\nvaluation and shall continue in force until the next succeeding\nvaluation and certification. The actuary shall make a valuation, as of\nJune thirtieth of each year, of the assets and liabilities of the\nvarious funds created by the rules and regulations.\n  (iv)(A) The amount of the normal contribution annually due from the\nboard of education to the contingent reserve fund in each city fiscal\nyear, commencing with the nineteen hundred eighty--nineteen hundred\neighty-one fiscal year and ending with the two thousand four--two\nthousand five fiscal year, shall be the amount obtained by multiplying\nthe normal rate of contribution, as determined by the actuary as of June\nthirtieth next preceding such fiscal year, by the aggregate annual\nsalaries of the members on such June thirtieth next preceding such\nfiscal year in which such amount is due and shall be payable in such\nfiscal year next following such June thirtieth, together with such\nregular interest thereon which may be due, if any, as calculated by the\nactuary.\n  (B) The amount of the normal contribution annually due from the board\nof education to the contingent reserve fund in each city fiscal year,\ncommencing with the two thousand five--two thousand six fiscal year,\nshall be the amount obtained by multiplying the normal rate of\ncontribution, as determined by the actuary as of the second June\nthirtieth preceding the fiscal year in which the normal contribution is\npayable, in accordance with the provisions of items (i-A), (ii) and\n(iii) of this subparagraph, by the aggregate amount of the salaries\nexpected to be paid to the members during the fiscal year in which the\nnormal contribution is payable, as determined by the actuary, and such\nnormal contribution shall be payable in the second fiscal year following\nthe June thirtieth as of which the normal rate of contribution is\ndetermined, together with such regular interest thereon which may be\ndue, if any, as calculated by the actuary.\n  (C) In the case of the normal contribution payable in the nineteen\nhundred eighty--nineteen hundred eighty-one fiscal year and in any\nsubsequent fiscal year, the term "regular interest," as used in this\nitem (iv) shall mean regular interest as defined by the applicable\nprovisions of subparagraph three or subparagraph four of paragraph (b)\nof this subdivision.\n  (v) (A) Notwithstanding the preceding items of this subparagraph or\nany other provision of law to the contrary, the normal contribution\npayable to the contingent reserve fund in fiscal year two thousand\neleven--two thousand twelve, and in each fiscal year thereafter, shall\nbe the entry age normal contribution, as determined by the actuary\npursuant to this item in a manner consistent with the entry age\nactuarial cost method.  The actuary shall determine the entry age normal\ncontribution for each such fiscal year as of June thirtieth of the\nsecond fiscal year preceding the fiscal year in which such normal\ncontribution is payable, based on the latest mortality and other tables\napplicable at the time he or she performs such calculations, and the\nvaluation rate of interest as provided for the retirement system in\nparagraph two of subdivision b of section 13-638.2 of the administrative\ncode of the city of New York.\n  (B) In calculating the entry age normal contribution payable in any\nsuch fiscal year pursuant to this item, the actuary, in his or her\ndiscretion, may make certain adjustments in the calculation methodology,\nprovided that such adjustments are generally accepted as consistent with\nthe entry age actuarial cost method, and are designed, in general, to\nfund, on a level basis over the working lifetimes of members from their\nages at entry, the actuarial present value of benefits to which such\nmembers are expected to become entitled, as determined by the actuary.\nSuch generally accepted adjustments in the calculation methodology, in\nthe discretion of the actuary, may include, but are not limited to, the\ncalculation of the entry age normal contribution (1) on an individual\nmember basis by calculating the amount of the entry age normal\ncontribution attributable to each individual member, and then adding\ntogether such individual member amounts, (2) on an aggregate basis for\nall members or (3) on any combination of an individual member basis and\nan aggregate basis which is consistent with the entry age actuarial cost\nmethod, and the preceding provisions of this sub-item.\n  (C) For each such fiscal year, the actuary, in his or her discretion,\nshall determine, in accordance with the provisions of sub-item (B) of\nthis item, the methodology for calculating the entry age normal\ncontribution payable for that particular fiscal year.\n  (D) The methodology determined by the actuary in accordance with\nsub-item (C) of this item may provide for the actuary to calculate the\nentry age normal contribution on an individual member basis by (1)\nmultiplying the entry age normal contribution rate for each individual\nmember, as determined by the actuary, by the salary expected to be paid\nto that member during the fiscal year in which such normal contribution\nis payable, and (2) calculating the sum of the individual entry age\nnormal contributions attributable to all such members. The actuary, in\nhis or her discretion, may make any adjustments to such methodology for\ndetermining the entry age normal contribution on an individual basis\nwhich he or she deems appropriate, and which are consistent with the\nprovisions of sub-item (B) of this item.\n  (E) In the alternative, the methodology determined by the actuary in\naccordance with sub-item (C) of this item may provide for the actuary to\ncalculate the entry age normal contribution on an aggregate basis by\nmultiplying the entry age normal contribution rate for all members in\nthe aggregate, as determined by the actuary, by the aggregate amount of\nthe salaries expected to be paid to all members during the fiscal year\nin which the normal contribution is payable. The actuary, in his or her\ndiscretion, may make any adjustments to such methodology for determining\nthe entry age normal contribution on an aggregate basis which he or she\ndeems appropriate, and which are consistent with the provisions of\nsub-item (B) of this item.\n  (F) In the alternative, the methodology determined by the actuary in\naccordance with sub-item (C) of this item may provide for the\ncalculation of the entry age normal contribution on any other basis\nwhich the actuary deems appropriate, and which is consistent with the\nentry age actuarial cost method and the provisions of sub-item (B) of\nthis item.\n  (G) (1) Where the methodology determined by the actuary in accordance\nwith sub-item (C) of this item requires the determination of an entry\nage normal contribution rate for each individual member in order to\ncalculate the entry age normal contribution for each individual member,\nthe actuary shall determine such rate for each such member in accordance\nwith the entry age actuarial cost method, and such rate, as determined\nby the actuary for each such member, shall be consistent with a method\ndesigned, in general, to fund, on a level basis over the working\nlifetime of that particular member from his or her age at entry, the\nactuarial present value of benefits to which such member is expected to\nbecome entitled, as determined by the actuary.\n  (2) Where the methodology determined by the actuary in accordance with\nsub-item (C) of this item requires the determination of an entry age\nnormal contribution rate for all members in the aggregate in order to\ncalculate the entry age normal contribution for all members in the\naggregate, the actuary shall determine such rate in accordance with the\nentry age actuarial cost method, and such rate, as determined by the\nactuary, shall be consistent with a method designed, in general, to\nfund, on a level basis over the working lifetimes of members from their\nages at entry, the actuarial present value of benefits to which such\nmembers are expected to become entitled, as determined by the actuary.\n  (5) Unfunded accrued liability contributions.--(i) The original\nunfunded accrued liability contribution shall be an amount which, if\npaid to the contingent reserve fund in forty equal annual installments,\ncommencing with payment of a first installment in the city's nineteen\nhundred seventy-seven--nineteen hundred seventy-eight fiscal year, would\nbe the actuarial equivalent, on the basis of five and one-half percentum\ninterest and the actuarial tables in effect as of July first, nineteen\nhundred seventy-seven, of the difference between (A) the accrued\nliability (excluding the liability for benefits attributable to the\nannuity savings fund and the variable annuity savings fund) on June\nthirtieth, nineteen hundred seventy-five and (B) the total funds on\nhand, excluding the amount in the annuity savings fund and the variable\nannuity savings fund, but including the amount of any unpaid moneys\nappropriated pursuant to section nine of the rules and regulations. No\ncontribution or payment to the contingent reserve fund of the retirement\nsystem shall be made under the provisions of paragraph f of subdivision\nthree of section eight of the rules and regulations in the nineteen\nhundred seventy-seven--nineteen hundred seventy-eight fiscal year of the\ncity or in any subsequent city fiscal year. The provisions of such\nparagraph f shall cease to be effective on July first, nineteen hundred\nseventy-seven.\n  (ii) (A) The revised unfunded accrued liability contribution shall be\nan amount determined as prescribed in sub-items (B), (C), (D), (E), (F),\n(G), (H), (I) and (J) of this item.\n  (B) To the amount of the difference constituting the unfunded accrued\nliability as of June thirtieth, nineteen hundred seventy-five heretofore\ndetermined pursuant to the provisions of this subparagraph, as in effect\non July first, nineteen hundred seventy-seven, there shall be added\ninterest thereon at the rate of five and one-half per centum per annum\nfor the period from July first, nineteen hundred seventy-five to June\nthirtieth, nineteen hundred eighty.\n  (C) There shall be computed, in the manner provided in sub-item (D) of\nthis item, the discounted value of each of the installments of the\nunfunded accrued liability contribution which, in the absence of the\nenactment of chapter nine hundred fifty-seven of the laws of nineteen\nhundred eighty-one, were payable or would have been payable in the\ncity's nineteen hundred seventy-seven--nineteen hundred seventy-eight,\nnineteen hundred seventy-eight--nineteen hundred seventy-nine, nineteen\nhundred seventy-nine--nineteen hundred eighty, nineteen hundred\neighty--nineteen hundred eighty-one and nineteen hundred\neighty-one--nineteen hundred eighty-two fiscal years.\n  (D) Such discounted value of each such installment referred to in\nsub-item (C) of this item shall be computed as of January first of the\ncity's second fiscal year preceding the fiscal year in which such\ninstallment was payable or would have been payable and on the basis of\nfive and one-half per centum interest per annum on the amount of such\ninstallment.\n  (E) There shall be computed with respect to such discounted value of\neach such installment, interest thereon from January first of such\nsecond fiscal year preceding the fiscal year in which such installment\nwas or would have been payable to June thirtieth, nineteen hundred\neighty at the rate of five and one-half per centum per annum.\n  (F) The discounted values of all of such installments with respect to\nsuch fiscal years, computed as provided for in sub-items (C) and (D) of\nthis item, together with interest on each such installment as provided\nfor in sub-item (E) of this item, shall be added together.\n  (G) From the sum computed pursuant to sub-item (B) of this item, the\nsum computed pursuant to sub-item (F) of this item shall be subtracted.\n  (H) With respect to each city fiscal year occurring during the period\nbeginning on July first, nineteen hundred eighty and ending on June\nthirtieth, nineteen hundred eighty-two, the revised unfunded accrued\nliability contribution shall be the annual installment, applicable to\nsuch fiscal year, of an amount which, if paid to the contingent reserve\nfund in thirty-five equal annual installments, commencing with payment\nof a first installment in the city's nineteen hundred eighty--nineteen\nhundred eighty-one fiscal year, would be the actuarial equivalent, on\nthe basis of seven and one-half per centum interest per annum, of the\nremainder computed pursuant to sub-item (G) of this item.\n  (I) With respect to each city fiscal year occurring during the period\nbeginning on July first, nineteen hundred eighty-two and ending on June\nthirtieth, nineteen hundred eighty-eight, the revised unfunded accrued\nliability contribution shall be the annual installment, applicable to\nsuch fiscal year, of an amount which, if paid to the contingent reserve\nfund in thirty-three equal annual installments, commencing with payment\nof a first installment in the city's nineteen hundred\neighty-two--nineteen hundred eighty-three fiscal year, would be the\nactuarial equivalent, on the basis of eight per centum interest per\nannum, of the present value, as of June thirtieth, nineteen hundred\neighty-two on the basis of seven and one-half per centum interest per\nannum, of those installments of the unfunded accrued liability\ncontribution computed pursuant to sub-item (H) of this item (ii), which\ninstallments are hypothetically allocated by such sub-item (H) to\ndesignated city fiscal years succeeding June thirtieth, nineteen hundred\neighty-two.\n  (J) With respect to each city fiscal year occurring during the period\nbeginning on July first, nineteen hundred eighty-eight and ending on\nJune thirtieth, two thousand fifteen, the revised unfunded accrued\nliability contribution shall be the annual installment, applicable to\nsuch fiscal year, of an amount which, when paid to the contingent\nreserve fund in twenty-seven equal annual installments, commencing with\npayment of a first installment in the city's nineteen hundred\neighty-eight--nineteen hundred eighty-nine fiscal year, shall be the\nactuarial equivalent, on the basis of eight and one-quarter per centum\ninterest per annum, of the present value, as of June thirtieth, nineteen\nhundred eighty-eight on the basis of eight per centum interest per\nannum, of those installments of the unfunded accrued liability\ncontribution computed pursuant to sub-item (I) of this item (ii), which\ninstallments are hypothetically allocated by such sub-item (I) to\ndesignated city fiscal years succeeding June thirtieth, nineteen hundred\neighty-eight.\n  (6) (i) The nineteen hundred eighty unfunded accrued liability\nadjustment shall be an amount determined as prescribed in items (ii),\n(iii), (iv) and (v) of this subparagraph.\n  (ii) (A) Upon the basis of the actuarial tables in effect as of June\nthirtieth, nineteen hundred eighty for valuation purposes and interest\nat the rate of seven and one-half per centum per annum, there shall be\ndetermined, as of June thirtieth, nineteen hundred eighty, the amount of\nthe total liability for all benefits provided in the rules and\nregulations, in articles eleven and fourteen of the retirement and\nsocial security law and in any other law prescribing benefits payable by\nthe retirement system on account of all members and beneficiaries,\nexcluding the liability on account of future increased-take-home pay\ncontributions, if any, and the liability for benefits attributable to\nthe annuity savings fund and to the variable annuity savings fund.\n  (B) From such total liability computed pursuant to sub-item (A) of\nthis item, there shall be subtracted the sum of:\n  (1) the present value, as of June thirtieth, nineteen hundred eighty,\nof all future normal costs of the retirement system, computed pursuant\nto the entry age normal cost method of determining such normal costs;\nand\n  (2) the present value, as of such June thirtieth, of all future\ninstallments of the balance sheet liability contribution (as defined in\nsubparagraph sixteen of this paragraph); and\n  (3) the present value, as of such June thirtieth, of all then required\nfuture payments, pursuant to subdivision six of section seven of the\nrules and regulations, of installments of losses in excess of\ninstallments of gains on dispositions of securities within the meaning\nof such subdivision; and\n  (4) the present value, as of such June thirtieth, of future member\ncontributions of members subject to article fourteen of the retirement\nand social security law; and\n  (5) the total funds on hand as of such June thirtieth, excluding the\namount in the annuity savings fund and variable annuity savings fund,\nbut including the amount of any unpaid moneys appropriated pursuant to\nsection nine of the rules and regulations.\n  (iii) (A) If the amount computed pursuant to sub-item (B) of item (ii)\nof this subparagraph is larger than the amount computed pursuant to\nsub-item (G) of item (ii) of subparagraph five of this paragraph, the\nlatter amount shall be subtracted from the former amount and the\nremainder resulting from such subtraction shall constitute a charge.\n  (B) If the amount computed pursuant to sub-item (B) of item (ii) of\nthis subparagraph is smaller than the amount computed pursuant to\nsub-item (G) of item (ii) of subparagraph five of this paragraph, the\nformer amount shall be subtracted from the latter amount and the\nremainder resulting from such subtraction shall constitute a credit.\n  (iv) (A) If the remainder computed pursuant to item (iii) of this\nsubparagraph is a charge, the nineteen hundred eighty unfunded accrued\nliability adjustment shall be an amount which, if paid to the contingent\nreserve fund in thirty equal annual installments, commencing with\npayment of a first installment in the city's nineteen hundred\neighty--nineteen hundred eighty-one fiscal year, would be the actuarial\nequivalent, on the basis of seven and one-half per centum interest per\nannum, of such remainder.\n  (B) If the remainder computed pursuant to item (iii) of this\nsubparagraph is a credit, the nineteen hundred eighty unfunded accrued\nliability adjustment shall be an amount which, if credited in thirty\nequal annual installments (the first of which installments is to be\ncredited in the city's nineteen hundred eighty--nineteen hundred\neighty-one fiscal year) in reduction of the amounts which the board of\neducation would otherwise be required to pay to the contingent reserve\nfund pursuant to items (i), (iii), (iv), (v), (vi) and (vii) of\nsubparagraph two of this paragraph, would be the actuarial equivalent,\non the basis of seven and one-half per centum interest per annum, of\nsuch remainder.\n  (v) (A) With respect to determination of the amount of contributions\npayable to the contingent reserve fund in each of the city's nineteen\nhundred eighty--nineteen hundred eighty-one and nineteen hundred\neighty-one--nineteen hundred eighty-two fiscal years, the annual\ninstallment of the nineteen hundred eighty unfunded accrued liability\nadjustment computed pursuant to item (iv) of this subparagraph (6),\nwhich installment is applicable to such fiscal years, shall be applied\nas a charge or a credit, as the case may be, in relation to such\ncontributions payable in such fiscal year.\n  (B) With respect to determination of the amount of contributions\npayable to the contingent reserve fund in each city fiscal year\noccurring during the period beginning on July first, nineteen hundred\neighty-two and ending on June thirtieth, nineteen hundred eighty-eight,\nthe nineteen hundred eighty unfunded accrued liability adjustment shall\nbe an amount which, if paid (if a charge) or credited (if a credit) in\ntwenty-eight equal annual installments, commencing with a payment or\ncredit, as the case may be, in the city's nineteen hundred\neighty-two--nineteen hundred eighty-three fiscal year, would be the\nactuarial equivalent, on the basis of eight per centum interest per\nannum, of the present value, as of June thirtieth, nineteen hundred\neighty-two on the basis of seven and one-half per centum interest per\nannum, of those installments of the nineteen hundred eighty unfunded\naccrued liability adjustment computed pursuant to item (iv) of this\nsubparagraph (6), which installments are hypothetically allocated by\nsuch item (iv) to designated city fiscal years succeeding June\nthirtieth, nineteen hundred eighty-two.\n  (C) With respect to determination of the amount of contributions\npayable to the contingent reserve fund in each city fiscal year\noccurring during the period beginning on July first, nineteen hundred\neighty-eight and ending on June thirtieth, two thousand ten, the\nnineteen hundred eighty unfunded accrued liability adjustment shall be\nan amount which, when paid (if a charge) or credited (if a credit) in\ntwenty-two equal annual installments, commencing with a payment or\ncredit, as the case may be, in the city's nineteen hundred\neighty-eight--nineteen hundred eighty-nine fiscal year, shall be the\nactuarial equivalent, on the basis of eight and one-quarter per centum\ninterest per annum, of the present value, as of June thirtieth, nineteen\nhundred eighty-eight on the basis of eight per centum interest per\nannum, of those installments of the nineteen hundred eighty unfunded\naccrued liability adjustment computed pursuant to sub-item (B) of this\nitem (v), which installments are hypothetically allocated by such\nsub-item (B) to designated city fiscal years succeeding June thirtieth,\nnineteen hundred eighty-eight.\n  (D) With respect to determination of the amount of contributions\npayable to the contingent reserve fund in each of such city fiscal years\nreferred to in sub-item (B) or sub-item (C) of this item (v), the annual\ninstallment of the nineteen hundred eighty unfunded accrued liability\nadjustment computed pursuant to sub-item (B) or sub-item (C) of this\nitem (v), which installment is applicable to such fiscal year, shall be\napplied as a charge or credit, as the case may be, in relation to such\ncontributions payable in such fiscal year.\n  (vi) (A) The nineteen hundred eighty-two unfunded accrued liability\nadjustment shall be an amount determined as prescribed in sub-items (B),\n(C), (D) and (E) of this item (vi).\n  (B) Upon the basis of the actuarial tables in effect as of June\nthirtieth, nineteen hundred eighty-one for valuation purposes and\ninterest at the rate of seven and one-half per centum per annum, there\nshall be determined, as of June thirtieth, nineteen hundred eighty-two,\nthe amount of the actuarial accrued liability of the retirement system,\ncomputed pursuant to the entry age normal cost method of ascertaining\nsuch actuarial accrued liability.\n  (C) Upon the basis of the actuarial tables in effect as of June\nthirtieth, nineteen hundred eighty-two for valuation purposes and\ninterest at the rate of eight per centum per annum, there shall be\ndetermined, as of June thirtieth, nineteen hundred eighty-two, the\namount of the actuarial accrued liability of the retirement system,\ncomputed pursuant to the entry age normal cost method of ascertaining\nsuch actuarial accrued liability.\n  (D) With respect to determination of the amount of contributions\npayable to the contingent reserve fund in each city fiscal year\noccurring during the period beginning on July first, nineteen hundred\neighty-two and ending on June thirtieth, nineteen hundred eighty-eight,\nthe nineteen hundred eighty-two unfunded accrued liability adjustment\nshall be the applicable installments of an amount which, if credited in\nthirty equal annual installments (the first of which installments is to\nbe credited in the city's nineteen hundred eighty-two--nineteen hundred\neighty-three fiscal year) in reduction of the amounts which the board of\neducation would otherwise be required to pay to the contingent reserve\nfund pursuant to items (i), (iii), (iv), (vi) and (vii) of subparagraph\n(2) of paragraph (c) of this subdivision sixteen or otherwise pursuant\nto law, would be the actuarial equivalent, on the basis of eight per\ncentum interest per annum, of the excess of the amount computed pursuant\nto sub-item (B) of this item (vi) over the amount computed pursuant to\nsub-item (C) of this item (vi).\n  (E) With respect to determination of the amount of contributions\npayable to the contingent reserve fund in each city fiscal year\noccurring during the period beginning on July first, nineteen hundred\neighty-eight and ending on June thirtieth, two thousand twelve, the\nnineteen hundred eighty-two unfunded accrued liability adjustment shall\nbe an amount which, when credited in twenty-four equal annual\ninstallments (the first of which installments is to be credited in the\ncity's nineteen hundred eighty-eight--nineteen hundred eighty-nine\nfiscal year) in reduction of the amounts which the board of education\nwould otherwise be required to pay to the contingent reserve fund\npursuant to items (i), (iii), (iv), (vi) and (vii) of subparagraph (2)\nof paragraph (c) of this subdivision sixteen or otherwise pursuant to\nlaw, shall be the actuarial equivalent, on the basis of eight and\none-quarter per centum interest per annum, of the present value, as of\nJune thirtieth, nineteen hundred eighty-eight on the basis of eight per\ncentum interest per annum, of those installments of the nineteen hundred\neighty-two unfunded accrued liability adjustment computed pursuant to\nsub-item (d) of this item (vi), which installments are hypothetically\nallocated by such sub-item (D) to designated city fiscal years\nsucceeding June thirtieth, nineteen hundred eighty-eight.\n  (vii) (A) The nineteen hundred eighty-five unfunded accrued liability\nadjustment shall be an amount determined as prescribed in sub-items (B),\n(C), (D) and (E) of this item (vii).\n  (B) Upon the basis of the actuarial tables in effect for valuation\npurposes with respect to determination of the normal contribution\npayable to the contingent reserve fund in the city's nineteen hundred\neighty-four--nineteen hundred eighty-five fiscal year and interest at\nthe rate of eight per centum per annum, there shall be determined as of\nJune thirtieth, nineteen hundred eighty-five, the amount of the\nactuarial accrued liability of the retirement system, computed pursuant\nto the entry age normal cost method of ascertaining such actuarial\naccrued liability.\n  (C) Upon the basis of the actuarial tables in effect for valuation\npurposes with respect to determination of the normal contribution\npayable to the contingent reserve fund in the city's nineteen hundred\neighty-five--nineteen hundred eighty-six fiscal year and interest at the\nrate of eight per centum per annum, there shall be determined, as of\nJune thirtieth, nineteen hundred eighty-five, the amount of the\nactuarial accrued liability of the retirement system, computed pursuant\nto the entry age normal costs method of ascertaining such actuarial\naccrued liability.\n  (D) With respect to determination of the amount of contributions\npayable to the contingent reserve fund in each city fiscal year\noccurring during the period beginning on July first, nineteen hundred\neighty-five and ending on June thirtieth, nineteen hundred eighty-eight,\nthe nineteen hundred eighty-five unfunded accrued liability adjustment\nshall be the applicable installments of an amount which, if credited in\nthirty equal annual installments (the first of which installments is to\nbe credited in the city's nineteen hundred eighty-five--nineteen hundred\neighty-six fiscal year) in reduction of the amounts which the board of\neducation would otherwise be required to pay to the contingent reserve\nfund pursuant to items (i), (iii), (iv), (vi) and (vii) of subparagraph\n(2) of this paragraph (c) or otherwise pursuant to law, would be the\nactuarial equivalent, on the basis of eight per centum interest per\nannum, of the excess of the amount computed pursuant to sub-item (B) of\nthis item (vii) over the amount computed pursuant to sub-item (C) of\nthis item (vii).\n  (E) With respect to determination of the amount of contributions\npayable to the contingent reserve fund in each city fiscal year\noccurring during the period beginning on July first, nineteen hundred\neighty-eight and ending on June thirtieth, two thousand fifteen, the\nnineteen hundred eighty-five unfunded accrued liability adjustment shall\nbe an amount which, when credited in twenty-seven equal annual\ninstallments (the first of which installments is to be credited in the\ncity's nineteen hundred eighty-eight--nineteen hundred eighty-nine\nfiscal year) in reduction of the amounts which the board of education\nwould otherwise be required to pay to the contingent reserve fund\npursuant to items (i), (iii), (iv), (vi) and (vii) of subparagraph (2)\nof this paragraph (c) or otherwise pursuant to law, shall be the\nactuarial equivalent, on the basis of eight and one-quarter per centum\ninterest per annum, of the present value, as of June thirtieth, nineteen\nhundred eighty-eight on the basis of eight per centum interest per\nannum, of those installments of the nineteen hundred eighty-five\nunfunded accrued liability adjustment computed pursuant to sub-item (D)\nof this item (vii), which installments are hypothetically allocated by\nsuch sub-item (D) to designated fiscal years succeeding June thirtieth,\nnineteen hundred eighty-eight.\n  (7) The balance sheet liability as of June thirtieth, nineteen hundred\nseventy-four shall be the sum of twenty-five million, eight hundred two\nthousand, nine hundred seventy-two dollars ($25,802,972), consisting of\nthe sum of:\n  (i) the discounted value, as of June thirtieth, nineteen hundred\nseventy-four, of the sum of eleven million, fifty thousand, eight\nhundred eighty-eight dollars ($11,050,888), which constituted the amount\npayable to the contingent reserve fund in the city's nineteen hundred\nseventy-four--nineteen hundred seventy-five fiscal year by the board of\neducation in fulfillment of its obligations to make contributions to the\nretirement system payable in such fiscal year, such discounting being\ncalculated on the basis of interest at the rate of five and one-half per\ncentum per annum and a discount period of six months extending\nretroactively from January first, nineteen hundred seventy-five to June\nthirtieth, nineteen hundred seventy-four and such discounted value being\nthe sum of ten million, seven hundred fifty-eight thousand, nine hundred\nseventy-nine dollars ($10,758,979); and\n  (ii) the discounted value, as of June thirtieth, nineteen hundred\nseventy-four, of the sum of sixteen million, three hundred two thousand,\nthirty-eight dollars ($16,302,038), which constituted the amount payable\ninto the contingent reserve fund in the city's nineteen hundred\nseventy-five--nineteen hundred seventy-six fiscal year by the board of\neducation in fulfillment of its obligations to make contributions to the\nretirement system payable in such fiscal year, such discounting being\ncalculated on the basis of interest at the rate of five and one-half per\ncentum per annum and a discount period of eighteen months extending\nretroactively from January first, nineteen hundred seventy-six to June\nthirtieth, nineteen hundred seventy-four, and such discounted value\nbeing the sum of fifteen million, forty-three thousand, nine hundred\nninety-three dollars ($15,043,993).\n  (8) The balance sheet liability as of each June thirtieth succeeding\nJune thirtieth, nineteen hundred seventy-four to and including June\nthirtieth, nineteen hundred eighty, shall be determined as provided for\nin subparagraphs nine to sixteen, inclusive, of this paragraph.\n  (9) To the amount of the balance sheet liability as of June thirtieth\nnext preceding the June thirtieth (which last-mentioned June thirtieth\nis hereinafter referred to as the "subject June thirtieth") as of which\nthe balance sheet liability is being determined as provided for in\nsubparagraph eight of this paragraph, there shall be added one year's\ninterest on such amount at the rate of five and one-half per centum per\nannum.\n  (10) With respect to the city's fiscal year ending on the subject June\nthirtieth (hereinafter referred to as the "subject fiscal year") there\nshall be added together the contribution components hereinafter\nspecified in this subparagraph, which components, for the purposes of\nsubparagraphs eight to sixteen, inclusive, of this paragraph, are\nhypothetically deemed to have accrued in the subject fiscal year and to\nhave been payable therein, as follows:\n  (i) the amount of the normal contribution for balance sheet liability\npurposes (as defined in subparagraph five of paragraph (a) of this\nsubdivision); and\n  (ii) the amount of the applicable installment of the unfunded accrued\nliability contribution for balance sheet liability purposes (as defined\nin subparagraph six of paragraph (a) of this subdivision); and\n  (iii) the amount of the annual contribution, for balance sheet\nliability purposes, on account of amortization of losses on dispositions\nof certain securities within the meaning of subdivision six of section\nseven of the rules and regulations (as defined in subparagraph seven of\nparagraph (a) of this subdivision); and\n  (iv) the amount of the annual contribution, for balance sheet\nliability purposes, on account of reserves-for-increased-take-home pay\n(as defined in subparagraph eight of paragraph (a) of this subdivision);\nand\n  (v) the amount of the annual military law contribution for balance\nsheet liability purposes (as defined in subparagraph nine of paragraph\n(a) of this subdivision).\n  (11) To the amount resulting from the addition prescribed by\nsubparagraph ten of this paragraph (c), there shall be added interest\nthereon at the rate of five and one-half per centum per annum from\nJanuary first of the subject fiscal year to June thirtieth of such\nfiscal year.\n  (12) The amount computed pursuant to subparagraph nine of this\nparagraph in relation to the balance sheet liability as of June\nthirtieth next preceding the subject June thirtieth (together with one\nyear's interest on such balance sheet liability) shall be added to the\namount computed pursuant to subparagraph ten of this paragraph in\nrelation to the subject fiscal year.\n  (13) From the amount computed pursuant to subparagraph twelve of this\nparagraph, there shall be subtracted the sum of:\n  (i) The total amount of the sums paid to the contingent reserve fund\nduring the subject fiscal year by the board of education on account of\nits obligations, which accrued during the city's second fiscal year\npreceding the subject fiscal year to provide:\n  (A) the normal contribution payable in the subject fiscal year under\nthe provisions of subparagraphs two and three of this paragraph, as then\nin effect; and\n  (B) the installment of the deficiency contribution (as defined in\nsubparagraph ten of paragraph (a) of this subdivision) or the\ninstallment of the original unfunded accrued liability contribution (as\ndefined in item (i) of subparagraph five of this paragraph), as the case\nmay be, payable in the subject fiscal year; and\n  (C) the amount of the contribution on account of amortization,\npursuant to subdivision six of section seven of the rules and\nregulations, of losses on dispositions of certain securities (as defined\nin subparagraph eleven of paragraph (a) of this subdivision) payable in\nthe subject fiscal year; and\n  (D) the amount payable in the subject fiscal year on account of\nreserves-for-increased-take-home pay; and\n  (E) the amount payable in the subject fiscal year in behalf of members\npursuant to subdivision twenty of section two hundred forty-three of the\nmilitary law; plus\n  (ii) interest on such total amount referred to in item (i) of this\nsubparagraph thirteen at the rate of five and one-half per centum per\nannum from January first of the subject fiscal year to June thirtieth\nthereof.\n  (14) The remainder resulting from the subtraction prescribed by\nsubparagraph thirteen of this paragraph shall be the balance sheet\nliability as of June thirtieth of the subject fiscal year.\n  (15) The balance sheet liability as of June thirtieth, nineteen\nhundred eighty shall be the amount resulting from the successive\ncomputations of the balance sheet liability as of each June thirtieth\nsucceeding June thirtieth, nineteen hundred seventy-four up to and\nincluding June thirtieth, nineteen hundred eighty as prescribed by\nsubparagraphs eight to fourteen, inclusive, of this paragraph.\n  (16) The balance sheet liability contribution payable in the city's\nnineteen hundred eighty-one--nineteen hundred eighty-two fiscal year\nshall be the first annual installment of an amount which, if paid to the\ncontingent reserve fund in forty equal annual installments, commencing\nwith payment of a first installment in the city's nineteen hundred\neighty-one--nineteen hundred eighty-two fiscal year, would be the\nactuarial equivalent, as of June thirtieth, nineteen hundred eighty-one,\non the basis of seven and one-half per centum interest per annum, of an\namount equal to the balance sheet liability as of June thirtieth,\nnineteen hundred eighty.\n  (16-a) The balance sheet liability contribution payable in each city\nfiscal year during the period beginning on July first, nineteen hundred\neighty-two and ending on June thirtieth, nineteen hundred eighty-eight\nshall be one annual installment of an amount which, if paid to the\ncontingent reserve fund in thirty-nine equal annual installments,\ncommencing with a first payment in the city's nineteen hundred\neighty-two--nineteen hundred eighty-three fiscal year, would be the\nactuarial equivalent, as of June thirtieth, nineteen hundred eighty-two,\non the basis of eight per centum interest per annum, of the present\nvalue, as of June thirtieth, nineteen hundred eighty-two on the basis of\nseven and one-half per centum interest per annum, of those installments\nof the balance sheet liability contribution computed pursuant to\nsubparagraph (16) of this paragraph (c), which installments are\nhypothetically allocated by such subparagraph (16) to designated city\nfiscal years succeeding June thirtieth, nineteen hundred eighty-two.\n  (16-b) The balance sheet liability contribution payable in each city\nfiscal year during the period beginning on July first, nineteen hundred\neighty-eight and ending on June thirtieth, two thousand twenty-one shall\nbe one annual installment of an amount which, when paid to the\ncontingent reserve fund in thirty-three equal annual installments,\ncommencing with a first payment in the city's nineteen hundred\neighty-eight--nineteen hundred eighty-nine fiscal year, shall be the\nactuarial equivalent, as of June thirtieth, nineteen hundred\neighty-eight, on the basis of eight and one-quarter per centum interest\nper annum, of the present value, as of June thirtieth, nineteen hundred\neighty-eight on the basis of eight per centum interest per annum, of\nthose installments of the balance sheet liability contribution computed\npursuant to subparagraph (16-a) of this paragraph (c), which\ninstallments are hypothetically allocated by such subparagraph (16-a) to\ndesignated city fiscal years succeeding June thirtieth, nineteen hundred\neighty-eight.\n  (17) Notwithstanding any provision of the rules and regulations or any\nother provision of law to the contrary, whenever the retirement board,\non the recommendation of the actuary, shall determine that it is\nnecessary to increase the reserves held in the annuity reserve fund, the\npension reserve fund or the pension fund, such board may direct that the\namount so needed shall be transferred thereto from the contingent\nreserve fund.\n  (d) (1) During the period commencing on July first, nineteen hundred\nseventy-seven and ending on June thirtieth, nineteen hundred eighty,\nspecial interest at the rate of one and one-half per centum per annum,\ncompounded annually, shall be allowed with respect to the individual\naccount of each member in the annuity savings fund of the retirement\nsystem.\n  (2) Subject to the provisions of paragraph (f) of this subdivision,\nduring the period commencing on July first, nineteen hundred eighty and\nending on June thirtieth, nineteen hundred eighty-two, special interest\nat the rate of three and one-half per centum per annum, compounded\nannually, shall be allowed with respect to the individual account of\neach member in the annuity savings fund.\n  (3) (i) Subject to the provisions of paragraph (f) of this\nsubdivision, during the period commencing on July first, nineteen\nhundred eighty-two and ending on July thirty-first, nineteen hundred\neighty-three, special interest at the rate of four per centum per annum,\ncompounded annually, shall be allowed with respect to the individual\naccount of each member in the annuity savings fund.\n  (ii) Subject to the provisions of paragraph (f) of this subdivision,\nduring the period commencing on August first, nineteen hundred\neighty-three and ending on June thirtieth, nineteen hundred eighty-five,\nspecial interest at the rate of one per centum per annum, compounded\nannually, shall be allowed with respect to the individual account of\neach member in the annuity savings fund.\n  (iii) Subject to the provisions of paragraph (f) of this subdivision,\nduring the period commencing on July first, nineteen hundred eighty-five\nand ending on June thirtieth, nineteen hundred eighty-eight, special\ninterest at the rate of one per centum per annum, compounded annually,\nshall be allowed with respect to the individual account of each member\nin the annuity savings fund.\n  (iv) Subject to the provisions of paragraph (f) of this subdivision,\nduring the period commencing on July first, nineteen hundred\neighty-eight and ending on June thirtieth, nineteen hundred ninety,\nspecial interest at the rate of one and one-quarter per centum per\nannum, compounded annually, shall be allowed with respect to the\nindividual account of each member in the annuity savings fund.\n  (4) Such special interest provided for by subparagraphs (1), (2) and\n(3) of this paragraph shall be credited to such individual account of\neach member entitled thereto in the same manner and at the same time as\nregular interest is required to be credited to such account with respect\nto the same period of time. Such special interest shall not be\nconsidered in determining rates of contributions of members. Nothing\ncontained in this paragraph shall be construed as applicable to any\nmember who is subject to the provisions of article fourteen or article\nfifteen of the retirement and social security law.\n  (e) (1) Subject to the provisions of paragraph (f) of this\nsubdivision, in determining the reserve-for-increased-take-home-pay of\neach member entitled to such a reserve, additional interest at the rate\nof one and one-half per centum per annum compounded annually shall be\nincluded for each city fiscal year occurring during the period beginning\non July first, nineteen hundred seventy-seven and ending on June\nthirtieth, nineteen hundred eighty.\n  (2) Subject to the provisions of paragraph (f) of this subdivision, in\ndetermining the reserve-for-increased-take-home-pay of each member\nentitled to such a reserve, additional interest at the rate of three and\none-half per centum per annum compounded annually shall be included for\neach city fiscal year occurring during the period beginning on July\nfirst, nineteen hundred eighty and ending on June thirtieth, nineteen\nhundred eighty-two.\n  (3) (i) Subject to the provisions of paragraph (f) of this subdivision\nin determining the reserve-for-increased-take-home-pay of each member\nentitled to such a reserve, additional interest at the rate of four per\ncentum per annum compounded annually shall be included for each city\nfiscal year and portion thereof occurring during the period beginning on\nJuly first, nineteen hundred eighty-two and ending on July thirty-first,\nnineteen hundred eighty-three.\n  (ii) Subject to the provisions of paragraph (f) of this subdivision,\nin determining the reserve-for-increased-take-home-pay of each member\nentitled to such a reserve, additional interest at the rate of one per\ncentum per annum compounded annually shall be included for each city\nfiscal year and portion thereof occurring during the period beginning on\nAugust first, nineteen hundred eighty-three and ending on June\nthirtieth, nineteen hundred eighty-five.\n  (iii) Subject to the provisions of paragraph (f) of this subdivision,\nin determining the reserve-for-increased-take-home-pay of each member\nentitled to such a reserve, additional interest at the rate of one per\ncentum per annum compounded annually shall be included for each city\nfiscal year occurring during the period beginning on July first,\nnineteen hundred eighty-five and ending on June thirtieth, nineteen\nhundred eighty-eight.\n  (iv) Subject to the provisions of paragraph (f) of this subdivision,\nin determining the reserve-for-increased-take-home-pay of each member\nentitled to such a reserve, additional interest at the rate of one and\none-quarter per centum per annum compounded annually shall be included\nfor each city fiscal year occurring during the period beginning on July\nfirst, nineteen hundred eighty-eight and ending on June thirtieth,\nnineteen hundred ninety.\n  (4) Additional interest shall not be considered in determining rates\nof contribution of members. Nothing contained in this paragraph (e)\nshall be construed as applicable to any member who is subject to the\nprovisions of article fourteen or article fifteen of the retirement and\nsocial security law.\n  (f) (1) The provisions of subparagraph (2) of paragraph (d) of this\nsubdivision and of subparagraphs (1) and (2) of paragraph (e) of this\nsubdivision, to the extent that any of such provisions grants special or\nadditional interest, as the case may be, for any period prior to July\nthirty-first, nineteen hundred eighty-two, shall not apply to any person\nwho was not a member on such July thirty-first and shall not apply to\nany person to whom, on such July thirty-first, a deferred retirement\nallowance or any part of such a retirement allowance was payable\npursuant to the provisions of section thirty-two of the rules and\nregulations. Nothing contained in paragraphs (d) and (e) of this\nsubdivision shall be construed as granting special or additional\ninterest, as the case may be, to any person with respect to any period\nwherein such person was not a member entitled to be credited with\nregular interest for the same period or was not a discontinued member\nentitled to be credited, as a discontinued member, with regular interest\nfor the same period.\n  (2) (i) The provisions of item (i) of subparagraph (3) of paragraph\n(d) of this subdivision sixteen, to the extent that such item grants\nspecial interest for any period prior to December sixteenth, nineteen\nhundred eighty-two, and the provisions of item (i) of subparagraph (3)\nof paragraph (e) of this subdivision, to the extent that such item\ngrants additional interest for any period prior to such date, shall not\napply to any person who was not a member on such date and shall not\napply to any person to whom, on such date, a deferred retirement\nallowance or any part of such a retirement allowance was payable\npursuant to the provisions of section thirty-two of the rules and\nregulations.\n  (ii) The provisions of item (iv) of subparagraph (3) of paragraph (d)\nof this subdivision sixteen, to the extent that such item grants special\ninterest for any period prior to the date of enactment of this item (ii)\nof this subparagraph (2) of this paragraph (f) (as such date is\ncertified, pursuant to section forty-one of the legislative law), and\nthe provisions of item (iv) of subparagraph (3) of paragraph (e) of this\nsubdivision, to the extent that such item grants additional interest for\nany period prior to such date shall not apply to any person who was not\na member on such date and shall not apply to any person to whom, on such\ndate, a deferred retirement allowance or any part of such a retirement\nallowance was payable pursuant to the provisions of section thirty-two\nof the rules and regulations.\n  (3) Nothing contained in paragraphs (d) and (e) of this subdivision\nshall be construed as granting special or additional interest, as the\ncase may be, to any person with respect to any period wherein such\nperson was not a member entitled to be credited with regular interest\nfor the same period or was not a discontinued member entitled to be\ncredited, as a discontinued member, with regular interest for the same\nperiod.\n  (g) (1) As used in this paragraph, the term "funds" shall mean the\nfunds created in accordance with the provisions of the rules and\nregulations other than the variable annuity funds provided for by the\nrules and regulations.\n  (2) Subject to the provisions of subparagraph (4) of this paragraph,\nin addition to regular interest annually allowed for the period from\nJuly first, nineteen hundred seventy-seven to June thirtieth, nineteen\nhundred eighty on the mean amount for the preceding year in each of the\nfunds created in accordance with the provisions of the rules and\nregulations, there shall be annually allowed with respect to such period\nsupplementary interest at the rate of one and one-half per centum per\nannum on such mean amount for the preceding year in each of such funds.\nSuch supplementary interest shall be annually credited to such funds at\nthe same time and in the same manner as regular interest was credited to\nsuch funds with respect to such period.\n  (3) Subject to the provisions of subparagraph (4) of this paragraph,\nin addition to regular interest annually allowed for the period from\nJuly first, nineteen hundred eighty to June thirtieth, nineteen hundred\neighty-two on the mean amount for the preceding year in each of the\nfunds created in accordance with the provisions of the rules and\nregulations, there shall be annually allowed with respect to such period\nsupplementary interest at the rate of three and one-half per centum per\nannum on such mean amount for the preceding year in each of such funds.\nSuch supplementary interest shall be annually credited to such funds at\nthe same time and in the same manner as regular interest is credited to\nsuch funds with respect to such period.\n  (4) (i) Subject to the provisions of subparagraph (5) of this\nparagraph (g), in addition to regular interest annually allowed for the\nperiod from July first, nineteen hundred eighty-two to July\nthirty-first, nineteen hundred eighty-three on the mean amount for the\npreceding year in each of the funds provided for in accordance with the\nprovisions of the rules and regulations, there shall be annually allowed\nwith respect to such period supplementary interest at the rate of four\nper centum per annum on such mean amount for the preceding year in each\nof such funds.  Such supplementary interest shall be annually credited\nto such funds at the same time and in the same manner as regular\ninterest is credited to such funds with respect to such period.\n  (ii) Subject to the provisions of subparagraph (5) of this paragraph,\nin addition to regular interest annually allowed for the period from\nAugust first, nineteen hundred eighty-three to June thirtieth, nineteen\nhundred eighty-five on the mean amount for the preceding year in each of\nthe funds provided for in accordance with the provisions of the rules\nand regulations, there shall be annually allowed with respect to such\nperiod supplementary interest at the rate of one per centum per annum on\nsuch mean amount for the preceding year in each of such funds. Such\nsupplementary interest shall be annually credited to such funds at the\nsame time and in the same manner as regular interest is credited to such\nfunds with respect to such period.\n  (iii) Subject to the provisions of subparagraph (5) of this paragraph\n(g), in addition to regular interest annually allowed for the period\nfrom July first, nineteen hundred eighty-five to June thirtieth,\nnineteen hundred eighty-eight on the mean amount for the preceding year\nin each of the funds provided for in accordance with the provisions of\nthe rules and regulations, there shall be annually allowed with respect\nto such period supplementary interest at the rate of one per centum per\nannum on such mean amount for the preceding year in each of such funds.\nSuch supplementary interest shall be annually credited to such funds at\nthe same time and in the same manner as regular interest is credited to\nsuch funds with respect to such period.\n  (iv) Subject to the provisions of subparagraph (5) of this paragraph\n(g), in addition to regular interest annually allowed for the period\nfrom July first, nineteen hundred eighty-eight to June thirtieth,\nnineteen hundred ninety on the mean amount for the preceding year in\neach of the funds provided for in accordance with the provisions of the\nrules and regulations, there shall be annually allowed with respect to\nsuch period supplementary interest at the rate of one and one-quarter\nper centum per annum on such mean amount for the preceding year in each\nof such funds. Such supplementary interest shall be annually credited to\nsuch funds at the same time and in the same manner as regular interest\nis credited to such funds with respect to such period.\n  (5) The provisions of subparagraphs (2), (3) and (4) of this paragraph\nshall not apply to or affect (i) the allowance of interest on or the\ncrediting of interest to accounts of members or discontinued members in\nthe annuity saving fund or (ii) the allowance of interest on or the\ncrediting of interest to reserves-for-increased-take-home-pay of members\nor discontinued members or (iii) the determination of the amount of any\nbenefit payable to any member or beneficiary.\n  (h-1) The allowance of special interest, additional interest and\nsupplementary interest, if any, with respect to any fiscal year of the\ncity beginning on or after July first, nineteen hundred ninety shall be\ngoverned by the applicable provisions of section 13-638.2 of the\nadministrative code of the city.\n  (h-2) The provisions of paragraph (d) of this subdivision, as such\nparagraph applies to the contributions made by a member and the benefits\nprovided thereby, shall apply separately and independently to the\ntax-deferred annuity net contributions, if any, of such member and the\nbenefits provided thereby, except as otherwise provided by section\nthirty-three of the rules and regulations.\n  (h-3) The provisions of subdivisions f and h of section 13-638.2 of\nthe administrative code of the city (to the extent that such\nsubdivisions f and h apply to this retirement system), as such\nsubdivisions f and h apply to the contributions made by a member and the\nbenefits provided thereby, shall apply separately and independently to\nthe tax-deferred annuity net contributions, if any, of such member and\nthe benefits provided thereby, except as otherwise specified in section\nthirty-three of the rules and regulations.\n  (i) (1) Notwithstanding the provisions of section nine of the rules\nand regulations or any other provision of the rules and regulations or\nany other law to the contrary, but subject to the provisions of\nsubparagraphs two, three and four of this paragraph, all income,\ninterest and dividends derived from deposits and investments authorized\nby the rules and regulations, which income, interest and dividends were\nheretofore or are hereafter received during any fiscal year commencing\non or after July first, nineteen hundred eighty, shall be used in such\nfiscal year for the purposes hereinafter specified in this subparagraph\n(to the extent that such income, interest and dividends are sufficient\nfor such purposes), in the order of priority herein stated, as follows:\n  (A) first, to pay into the funds of the retirement system the amounts\nof regular interest which are required to be paid into such funds in\nsuch fiscal year by reason of being required to be allowed to such funds\npursuant to the provisions of paragraph a of subdivision two of section\nseven of the rules and regulations, and to pay into such funds the\namounts of supplementary interest, if any, required to be so paid in\nsuch fiscal year under the provisions of paragraph (g) of this\nsubdivision, and to pay into the annuity savings fund the amounts of\nspecial interest, if any, required to be so paid in such fiscal year\nunder the provisions of paragraph (d) of this subdivision, and to pay\ninto the contingent reserve fund the amounts of additional interest, if\nany, required to be paid in such fiscal year under the provisions of\nparagraph (e) of this subdivision;\n  (B) second, to pay into the contingent reserve fund the amount of any\nlosses in excess of gains (i) which net losses the retirement system\nsustained during such fiscal year by reason of sales or other\ndispositions of securities, and (ii) for which net losses the retirement\nsystem is required to be reimbursed in such fiscal year, and (iii) to\nwhich net losses subdivision six of section seven of the rules and\nregulations, relating to graduated crediting of gains and amortization\nof losses on dispositions of certain securities, does not apply;\n  (C) third, if the total amount of such income, interest and dividends\nreceived during such fiscal year is in excess of the total amount\nrequired to make, in such fiscal year, the payments prescribed by items\n(A) and (B) of this subparagraph, the amount of such excess shall be\npaid into the contingent reserve fund and shall become a part of the\nassets of such fund.\n  (2) (A) Notwithstanding any other provision of this subdivision or any\nother law to the contrary, the term "all income, interest and dividends\nderived from deposits and investments", as used in paragraph (f) of this\nsubdivision (as such subdivision was in effect prior to July first,\nnineteen hundred eighty), shall be construed, in relation to disposition\nof all income, interest and dividends received by the retirement system\nin each of the city's nineteen hundred seventy-six--nineteen-hundred\nseventy-seven and nineteen hundred seventy-seven--nineteen hundred\nseventy-eight obligations fiscal years (as such fiscal years were\ndefined by paragraph (a) of this subdivision prior to such July first)\nas meaning the remainder obtained by subtracting from such income,\ninterest and dividends the sum of (i) the amounts of regular,\nsupplementary and special interest required to be allowed and paid into\nthe appropriate funds of the retirement system in such fiscal year\npursuant to the applicable provision of subdivision two of section seven\nof the rules and regulations and this subdivision and (ii) the amount of\nany losses in excess of gains (1) which net losses were sustained by the\nretirement system during such fiscal year and which net losses were\nsustained by reason of sales or other dispositions of securities, and\n(2) to which net losses the provisions of subdivision six of section\nseven of the rules and regulations do not apply.\n  (B) for the purposes of the order of priority governing the\ndisposition of such remainder in the payment fiscal year with respect to\neach such obligations fiscal year (as such disposition was prescribed by\nthe provisions of this subdivision as in effect during each such payment\nfiscal year) the provisions of items (A) and (B) of subparagraph (i) of\nsuch paragraph (f) shall be deemed to have been inapplicable and the\norder of priority for such disposition shall be first, the use set forth\nin item (C) of such subparagraph, second, the use set forth in item (D)\nof such subparagraph, third, the use set forth in item (E) of such\nsubparagraph and fourth, the use set forth in item (F) of such\nsubparagraph, as such items were in effect during such payment fiscal\nyear.\n  (3) (a) All income, interest and dividends which were derived from\ndeposits and investments authorized by the rules and regulations and\nwhich were received during each of the city's nineteen hundred\nseventy-eight--nineteen hundred seventy-nine and nineteen hundred\nseventy-nine--nineteen hundred eighty fiscal years shall be used in each\nsuch fiscal year for the purposes hereinafter stated in this\nsubparagraph, in the order of priority herein stated, as follows:\n  (A) first, (i) to pay into the funds of the retirement system the\namounts of regular interest which are required to be paid into such\nfunds in such fiscal year wherein such income, interest and dividends\nwere received, which interest is so payable by reason of being required\nto be allowed to such funds in such fiscal year pursuant to the\nprovisions of paragraph a of subdivision two of section seven of the\nrules and regulations and (ii) to pay into such funds the amounts of\nsupplementary interest required to be so paid in such fiscal year under\nthe applicable provisions of paragraph (d) of this subdivision, and\n(iii) to pay into the annuity savings fund the amounts of special\ninterest required to be so paid in such fiscal year under the applicable\nprovisions of paragraph (d) of this subdivision, and (iv) to pay into\nthe contingent reserve fund the amounts of additional interest required\nto be paid in such fiscal year under the applicable provisions of\nparagraph (e) of this subdivision;\n  (B) second, to pay into the contingent reserve fund the amount of any\nlosses in excess of gains (i) which net losses were sustained by the\nretirement system during such fiscal year in which such income, interest\nand dividends were received and which net losses were sustained by\nreason of sales or other dispositions of securities, and (ii) for which\nnet losses the retirement system is required to be reimbursed in such\nfiscal year, and (iii) to which net losses subdivision six of section\nseven of the rules and regulations, relating to graduated crediting of\ngains and amortization of losses on dispositions of certain securities,\ndoes not apply; and\n  (C) third, to pay into the contingent reserve fund the amount, if any,\nby which,\n  (i) the total of all losses which the retirement system sustained\nduring such fiscal year by reason of sales of securities within the\nmeaning of subdivision six of section seven of the rules and regulations\nand which the board of education would otherwise be required to amortize\npursuant to such subdivision, exceeds\n  (ii) the total of all gains which were realized during such fiscal\nyear by reason of sales of securities within the meaning of such\nsubdivision and which would otherwise be required by such subdivision to\nbe credited in favor of the board of education in installments.\n  (b) If the total amount of such income, interest and dividends\nreceived during each such fiscal year referred to in item (a) of this\nsubparagraph is in excess of the total amount required to make, in the\nsame fiscal year, the payments prescribed by sub-items (A), (B) and (C)\nof such item (a), the amount of such excess shall be paid into the\ncontingent reserve fund as of June thirtieth of such fiscal year and\nshall become a part of the assets of such fund as of such date.\n  (4) Nothing contained in subparagraphs one, two and three of this\nparagraph shall be construed as applicable to income, interest and\ndividends resulting from deposits or investments made under the variable\nannuity program of the retirement system.\n  (j)(1) The board of education or the New York city school construction\nauthority shall make monthly payments, in twelve equal installments,\nwith respect to the respective obligations which such board or authority\nincurs to pay sums to the retirement system.\n  (2) In the city's nineteen hundred eighty--nineteen hundred eighty-one\nfiscal year and in each city fiscal year thereafter, the equal monthly\npayments shall be in respect of obligations which accrue in such fiscal\nyear and shall be made in such fiscal year on or before the last day of\neach month.\n  (2-a) Where a responsible obligor (as defined in paragraph ten of\nsubdivision a of section 13-638.2 of the administrative code of the city\nof New York) is required to make payments to the retirement system\npursuant to applicable provisions of law in fiscal year two thousand\ntwelve--two thousand thirteen, and in any fiscal year thereafter, and\nthe provisions of this paragraph or the provisions of any other\napplicable law do not otherwise specifically require such responsible\nobligor to make such payments by a particular date or dates during such\nfiscal year, such responsible obligor shall make such payments either\n(i) in total on or before January first of such fiscal year, or (ii) in\ntwelve equal monthly installments, as determined by the actuary, with\neach monthly installment to be paid on or before the last day of each\nmonth.\n  (3) The retirement board of the retirement system may waive the\nrequirements of the foregoing provisions of this paragraph with respect\nto time of payment to such system, provided that any such waiver of time\nof payment in any instance shall not apply to the time of subsequent\npayments unless there shall be a subsequent waiver.\n  17. (a) For the purposes of this subdivision, the terms "rules and\nregulations" and "retirement system" shall have the meanings set forth\nin subparagraphs three and four, respectively, of paragraph (a) of\nsubdivision sixteen of this section.\n  (b) The following terms, as used in this subdivision, shall have the\nfollowing meanings, unless a different meaning is plainly required by\nthe context:\n  (1) "Member." Any person included in the membership of the retirement\nsystem as provided in section three of the rules and regulations.\n  (2) "Actuarial equivalent benefit." Any benefit which pursuant to the\nrules and regulations or by law is required to be an actuarial\nequivalent or pursuant to the rules and regulations or by law is\nrequired to be determined on the basis of an actuarial equivalent.\n  (3)(i) "Seven percent member for actuarial equivalent benefit\npurposes." A member who meets all of the following conditions:\n  (A) paragraph (c) of this subdivision (relating to the definition of\nmembers to whom regular interest at seven per centum per annum,\ncompounded annually, applies) applies to such member; and\n  (B) an actuarial equivalent benefit (other than a variable annuity\nprogram benefit) has become payable by the retirement system to or on\naccount of such member; and\n  (C) it is provided by a resolution adopted by the retirement board (A)\nthat a mortality table which does not differentiate on the basis of sex\nshall be used to calculate such actuarial equivalent benefit or a\nportion of such benefit, or (B) that the modified Option 1 pension\ncomputation formula (as defined in subparagraph thirteen of this\nparagraph) shall be used to calculate such actuarial equivalent benefit.\n  (ii) Except in cases to which the modified Option 1 pension\ncomputation formula applies pursuant to a resolution adopted by the\nretirement board, nothing contained in sub-item (C) of item (i) of this\nsubparagraph shall be construed as referring to or including any\ncalculation of an actuarial equivalent benefit (or portion of such\nbenefit) payable to any person where such calculation is required by\nretirement board resolution to be made through the use of a\nsex-differentiated mortality table.\n  (4) "Tier I member." A member whose benefits (other than a\nsupplemental retirement allowance) are prescribed by the rules and\nregulations and who is not subject to the provisions of article eleven,\narticle fourteen or article fifteen of the retirement and social\nsecurity law.\n  (5) "Tier II member." A member who is subject to the provisions of\narticle eleven of the retirement and social security law.\n  (6) "Tier III member." A member who is subject to the provisions of\narticle fourteen of the retirement and social security law.\n  (7) "Tier IV member." A member who is subject to the provisions of\narticle fifteen of the retirement and social security law.\n  (8) "Tier III member entitled to a vested benefit." A Tier III member\nwho is entitled to a deferred vested benefit under the provisions of\nsection five hundred sixteen of the retirement and social security law.\n  (9) "Tier IV member entitled to a vested benefit." A Tier IV member\nwho is entitled to a deferred vested benefit under the provisions of\nsection six hundred twelve of the retirement and social security law.\n  (10) "Education service." Service as a paid official or employee of\nthe board of education of the city of New York as now constituted, or of\nany prior board, body or agency of which it is the successor in school\naffairs in the territory now comprised within the city and school\ndistrict of New York, or the New York city school construction\nauthority, and allowable as provided in section four of the rules and\nregulations.\n  (11) "Discontinued member." A fifty-five-year-increased-service-\nfraction member (as defined in subdivision thirty-one of section two of\nthe rules and regulations) who has discontinued education-service and\nhas a vested right to a deferred retirement allowance under the\nprovisions of section thirty-two of the rules and regulations.\n  (12) "Variable annuity program benefit." Any benefit under the\nvariable annuity program of the retirement system which is payable from\nthe variable annuity reserve fund or the variable pension reserve fund.\n  (13) (i) "Modified Option 1 pension computation formula." The method\nof computing the pension component of an Option 1 retirement allowance\npayable to a Tier I member and the amount of the Option 1 benefit\npayable to the beneficiary or estate of such member who selected or\nselects (or is deemed to have selected) Option 1 as to such pension\ncomponent, which method of computation is as prescribed by the\nsucceeding items of this subparagraph.\n  (ii) The initial reserve for such pension component shall be computed\nthrough use of mortality tables which do not differentiate on the basis\nof sex (hereinafter referred to as "gender-neutral mortality tables")\nand an interest assumption consisting of regular interest of seven per\ncentum per annum, compounded annually.\n  (iii) Solely for the purpose of use as the minuend from which the\npayments of such pension component to such member are subtracted in\norder to determine the amount of the Option 1 benefit payable, upon such\nmember's death, to such member's beneficiary or estate by reason of such\nOption 1 selection in relation to such pension component, the present\nvalue of such member's maximum pension, as it was at the time of such\nmember's retirement, shall be deemed to be the greatest of:\n  (A) such present value determined on the basis of gender-neutral\nnortality tables and an interest assumption consisting of regular\ninterest of seven per centum per annum, compounded annually; or\n  (B) such present value determined on the basis of the female mortality\ntables and the regular interest applicable to such member in effect\nimmediately prior to the date of enactment (as certified pursuant to\nsection forty-one of the legislative law) of this subdivision; or\n  (C) such present value determined on the basis of the male mortality\ntables and the regular interest applicable to such member in effect\nimmediately prior to the date of enactment of this subdivision.\n  (iv) The pension component payable to such member shall be computed on\nthe basis of gender-neutral mortality tables and an interest assumption\nconsisting of regular interest of seven per centum per annum, compounded\nannually, so that:\n  (A) the present value, as it was at the time of such member's\nretirement, of such component; plus\n  (B) the present value, as it was at the time of such member's\nretirement, of the amount payable to such member's Option 1 beneficiary\nor estate upon the death of the member as provided for by the applicable\nprovisions of item (v) of this subparagraph;\nshall be equal to the Option 1 initial reserve determined for such\npension component with respect to such member pursuant to the provisions\nof item (ii) of this subparagraph.\n  (v) Where such member dies before he or she has received payments on\naccount of such pension component equal to the present value of such\nmember's maximum pension as computed pursuant to item (iii) of this\nsubparagraph, the Option 1 benefit payable to the beneficiary or estate\nof such deceased member, by reason of such Option 1 selection in\nrelation to such pension component, shall be the remainder obtained by\nsubtracting from such present value determined pursuant to such item\n(iii) in relation to such pension component, the total of such Option 1\npayments on account of such pension component received by or payable to\nsuch member for the period prior to his or her death.\n  (vi) In relation to the Option 1 benefits determined pursuant to the\nmethod of computation set forth in this subparagraph by reason of\ndiscontinuance of education service by a discontinued member, the phrase\n"time of such member's retirement" as set forth in items (iii) and (iv)\nof this subparagraph, shall be deemed, for the purposes of this\nsubparagraph, to mean the date of commencement of the retirement\nallowance of such discontinued member.\n  (14) "Selection of mode of benefit." The choice made by a member (as\npermitted by and pursuant to the requirements of the rules and\nregulations or applicable law governing such choice by such member) as\nto whether the maximum amount of his or her retirement allowance or a\ncomponent thereof shall be payable or such retirement allowance or a\ncomponent thereof shall be payable under an option selected by the\nmember. The term "selection of mode of benefit" shall include a case\nwhere the maximum retirement allowance or a maximum component thereof\nbecomes payable because of a member's omission, within the time\npermitted by the rules and regulations or applicable law, to select the\nmaximum benefit or an option.\n  (15) "Best-of-three-computations method." (i) A method (as prescribed\nby a resolution of the retirement board of the retirement system) under\nwhich a retirement allowance (or portion thereof) payable to a member is\nrequired to be determined for such member so that:\n  (A) if such retirement allowance (or portion thereof) does not include\na variable annuity program benefit, such retirement allowance is the\ngreatest of:\n  (1) such retirement allowance (or portion thereof) determined on the\nbasis of gender-neutral mortality tables and regular interest at the\nrate of seven per centum per annum; or\n  (2) such retirement allowance (or portion thereof) determined on the\nbasis of female mortality tables and the regular interest applicable to\nsuch member as of a time prescribed in such resolution; or\n  (3) such retirement allowance (or portion thereof) determined on the\nbasis of male mortality tables and the regular interest applicable to\nsuch member as of a time prescribed in such resolution; and\n  (B) if such retirement allowance (or portion thereof) includes a\nvariable annunity program benefit, then the part of such retirement\nallowance (or portion thereof) other than any variable annuity program\nbenefit is determined in the manner provided for by sub-item (A) of this\nitem and such variable annuity program benefit (or portion thereof) is\nthe greatest of:\n  (1) such variable annuity program benefit (or portion thereof)\ndetermined on the basis of gender-neutral mortality tables and a uniform\nrate of interest of four percent, as such rate of interest is provided\nfor in section forty-four of the rules and regulations; or\n  (2) such variable annuity program benefit (or portion thereof)\ndetermined on the basis of female mortality tables and such uniform rate\nof interest of four percent; or\n  (3) such variable annuity program benefit (or portion thereof)\ndetermined on the basis of male mortality tables and such uniform rate\nof interest of four percent.\n  (ii) Where, under the provisions of any such resolution of the\nretirement board, the modified Option 1 pension computation formula (as\ndefined in subparagraph thirteen of this paragraph) applies to any\nmember, the term, "best-of-three-computations method," where used in\nrelation to such member, shall be deemed to include such modified Option\n1 pension computation formula, to the extent that such formula governs\nthe determination of the pension component (or portion thereof) of such\nmember's retirement allowance.\n  (16) "Person entitled to a recomputation of benefits." Any person who\nmeets all of the conditions stated below in this subparagraph:\n  (i) such person, during the period beginning on August first, nineteen\nhundred eighty-three and ending on the date next preceding the date of\nenactment (as such termination date of eligibility for option\nre-selection (as defined in subparagraph nineteen of this paragraph),\n(A) retired or retires for age or service or superannuation or for\nordinary or accident disability, or (B) discontinued or discontinues\neducation service so as to become a discontinued member, or (C)\nterminated or terminates employment so as to become a Tier III member\nentitled to a vested benefit or a Tier IV member entitled to a vested\nbenefit; and\n  (ii) such person's retirement allowance (or portion thereof), by\nreason of such retirement or discontinuance of education service or\ntermination of employment, is required by a resolution adopted by the\nretirement board to be re-determined pursuant to (A) the\nbest-of-three-computations method (as defined in subparagraph fifteen of\nthis paragraph), or (B) the gender-neutral computations method (as\ndefined in subparagraph eighteen of this paragraph); and\n  (iii) a first payment (if such person, at the time of retirement,\ndiscontinuance of education service or termination of employment, was a\nTier I member, Tier II member or Tier III member) on account of his or\nher retirement allowance (as such retirement allowance was determined\nprior to the termination date of eligibility for option re-selection)\nwas made prior to such termination date of eligibility for option\nre-selection; or (if such person, at the time of retirement, or\ntermination of employment, was a Tier IV member), his or her effective\ndate of retirement (or date of commencement of benefits, if he or she\nwas a Tier IV member entitled to a vested benefit) occurred prior to the\ntermination date of eligibility for option re-selection.\n  (17) "Joint and survivor option." (i) Any option under which, at the\ntime when such option is selected, a choice is made which includes both:\n  (A) a benefit payable for the lifetime of the retired or vested member\nby whom or in whose behalf such option is selected; and\n  (B) a benefit (1) which consists of an amount equal to or constituting\na percentage of such retired or vested member's benefit and (2) which is\npayable for the lifetime of a designated beneficiary selected at the\ntime when such option is selected.\n  (ii) In any case where an option described in item (i) of this\nsubparagraph includes a provision prescribing that if the designated\nbeneficiary predeceases such retired or vested member, a maximum benefit\nshall become payable to such member, such option shall nevertheless be\ndeemed to be a joint and survivor option.\n  (18) "Gender-neutral computations method." A method (as prescribed by\na resolution of the retirement board of the retirement system) under\nwhich a retirement allowance (or portion thereof) payable to a member is\nrequired to be determined in the following manner:\n  (i) if such retirement allowance (or portion thereof) does not include\na variable annuity program benefit, such retirement allowance (or\nportion thereof) is determined on the basis of gender-neutral mortality\ntables and regular interest at the rate of seven per centum per annum,\nwithout reference to any other actuarial mortality or interest\nassumption; or\n  (ii) if such retirement allowance (or portion thereof) includes a\nvariable annuity program benefit, then the part of such retirement\nallowance (or portion thereof) other than any variable annuity program\nbenefit is determined in the manner provided for by item (i) of this\nsubparagraph, and such variable annuity program benefit (or portion\nthereof) is determined on the basis of gender-neutral mortality tables\nand a uniform rate of interest of four percent (as such rate of interest\nis provided for in section forty-four of the rules and regulations),\nwithout reference to any other actuarial mortality or interest\nassumption.\n  (19) "Termination date of eligibility for option re-selection" shall\nmean October first, nineteen hundred eighty-seven, provided that if the\nexecutive director of the retirement system certifies to the retirement\nboard that as of such October first, or any later termination date which\nthe retirement board may establish pursuant to the provisions of this\nsubparagraph nineteen, it will not be administratively feasible to\nprocess benefits (including conversion from fixed to variable benefits\nand vice versa) under the best-of-three-computations method (as defined\nin subparagraph fifteen of this paragraph (b)) and/or the gender-neutral\ncomputations method (as defined in subparagraph eighteen of this\nparagraph (b)) for any persons who are entitled, pursuant to law and/or\nretirement board resolution, to benefits so computed, then the\nretirement board, by resolution, may extend the termination date of\neligibility for option re-selection, as applicable to such persons, to a\nlater date, provided further, however, that any such extension or\nextensions directed by the retirement board upon such certification or\ncertifications shall not result in any such extended termination date\nlater than eighteen months after October first, nineteen hundred\neighty-seven. In the event that any such extension is directed by a\nresolution of the retirement board adopted prior to the date of\nenactment of this subparagraph nineteen, such extension, upon the\nenactment of this subparagraph, shall be valid and effective as of the\ndate of adoption of such resolution in the same manner and to the same\nextent as if such enactment had occurred before such date of adoption.\n  (c) Notwithstanding any provision of subdivision fifteen of section\ntwo of the rules and regulations or any other law to the contrary,\ncommencing on August first, nineteen hundred eighty-three, and\ncontinuing thereafter, "regular interest", in the cases of persons who\nwere members on July thirty-first, nineteen hundred eighty-three or who\nthereafter became or become members, shall mean, subject to the\nprovisions of paragraphs (d), (e), (f), (g), (h), (i), (j), (k), (l),\n(m), (n) and (o) of this subdivision, interest at seven per centum per\nannum, compounded annually.\n  (d) (1) (i) Subject to the provisions of items (ii) and (iii) of this\nsubparagraph, regular interest at the rate of seven per centum per\nannum, compounded annually, shall be used as the actuarial interest\nassumption for determining any actuarial equivalent benefit (other than\na variable annuity program benefit) payable to or on account of any\nseven percent member for actuarial equivalent benefit purposes.\n  (ii) Where an actuarial equivalent benefit is required by retirement\nboard resolution to be determined for any seven percent member for\nactuarial equivalent benefit purposes through the use of the modified\nOption 1 pension computation formula (as defined in subparagraph\nthirteen of paragraph (b) of this subdivision), the actuarial interest\nassumptions used in making such determination shall be as prescribed in\nsuch formula.\n  (iii) Where it is provided by board resolution that a portion of an\nactuarial equivalent benefit shall be determined for any seven percent\nmember for actuarial equivalent benefit purposes on the basis of\ngender-neutral mortality tables, and that the remainder of such benefit\nshall be determined on the basis of mortality tables which are not\ngender-neutral, regular interest at the rate of seven per centum per\nannum, compounded annually, shall be used as the actuarial interest\nassumption for determining the portion of such benefit required by such\nresolution to be determined on the basis of gender-neutral mortality\ntables and such rate of regular interest shall not apply to the\ndetermination of the remainder of such benefit.\n  (2) Notwithstanding that the process of determining whether a member\nis a seven percent member for actuarial equivalent benefit purposes may\ninclude, for the purpose of ascertaining the highest applicable benefit,\nalternative hypothetical benefit calculations utilizing a rate of\nregular interest other than such rate of seven per centum, nothing\ncontained in paragraph (c) of this subdivision or in subparagraph one of\nthis paragraph shall be construed as requiring that in the determination\nof any actuarial equivalent benefit (other than a variable annuity\nprogram benefit) payable to or on account of any member who is not a\nseven percent member for actuarial equivalent benefit purposes, any rate\nof interest be used other than regular interest, as prescribed by the\napplicable provisions of subdivision fifteen of section two of the rules\nand regulations.\n  (e) The provisions of subparagraph one of paragraph (d) of this\nsubdivision shall not apply to any person who, prior to August first,\nnineteen hundred eighty-three, retired as a member of the retirement\nsystem for age or service or superannuation or for ordinary or accident\ndisability and who was such a retiree immediately prior to such August\nfirst; provided, however, that where any such retiree retired pursuant\nto subdivision two of section ten of the rules and regulations or\nretired for ordinary or accident disability, and such retiree re-entered\nor re-enters education service and on or after July thirty-first,\nnineteen hundred eighty-three, was or is restored to membership in the\nretirement system, the provisions of such subparagraph one, from and\nafter such date of restoration to membership, shall apply to such\nrestored member with respect to determination of any actuarial\nequivalent benefit which is both (1) a benefit to which he or she became\nor becomes entitled upon his or her subsequent retirement or subsequent\ndiscontinuance of service so as to qualify for benefits, and (2) a\nbenefit which is not a continuation, without change, of a benefit which\nhad previously become payable to him or her by reason of his or her\nprior retirement; provided further that nothing contained in the\npreceding provisions of this paragraph shall be construed as making\nsubparagraph one of such paragraph (d) applicable to any such member who\nwas not or is not a seven percent member for actuarial equivalent\nbenefit purposes at such time of subsequent retirement or subsequent\ndiscontinuance of service.\n  (f) (1) Subject to the provisions of subparagraph two of this\nparagraph, the provisions of subparagraph one of paragraph (d) of this\nsubdivision shall not apply to any Tier I or Tier II member who, (A)\nprior to August first, nineteen hundred eighty-three discontinued\nservice under such circumstances that such member became a discontinued\nmember and acquired a vested right to receive a retirement allowance\npursuant to section thirty-two of the rules and regulations (and, in the\ncase of a Tier II member, article eleven of the retirement and social\nsecurity law), and (B) was such a discontinued member immediately prior\nto such August first.\n  (2) If such a discontinued member returned or returns to education\nservice and on or after July thirty-first, nineteen hundred eighty-three\nand before payability of his or her retirement allowance as such member\nbegan or begins, again became or becomes an active member pursuant to\nthe applicable provisions of such section thirty-two, the provision of\nsubparagraph one of such paragraph (d) shall apply to him or her on and\nafter the date of such resumption of active membership; provided that\nnothing contained in the preceding provisions of this subparagraph shall\nbe construed as making the provisions of subparagraph one of such\nparagraph (d) applicable to any such member who was not or is not a\nseven percent member for actuarial equivalent benefit purposes at the\ntime of subsequent retirement or subsequent discontinuance of service so\nas to qualify for benefits.\n  (3) Subject to the provisions of subparagraph four of this paragraph,\nthe provisions of subparagraph one of paragraph (d) of this subdivision\nshall not apply to any Tier III or Tier IV member who, (i) prior to\nAugust first, nineteen hundred eighty-three, terminated employment under\nsuch circumstances that such member became a Tier III member entitled to\na vested benefit or a Tier IV member entitled to vested benefit and (ii)\nhad such status immediately prior to such August first.\n  (4) If a member who became entitled to a vested benefit as described\nin subparagraph three of this paragraph returned or returns to\neducation-service and, on or after July thirty-first, nineteen hundred\neighty-three and before payability of his or her vested benefit began or\nbegins, resumed or resumes status as an active member of the retirement\nsystem, the provisions of subparagraph one of paragraph (d) of this\nsubdivision shall apply to him or her on and after the date of such\nresumption of active membership, providing that nothing contained in the\npreceding provisions of this subparagraph shall be construed as making\nthe provisions of subparagraph one of such paragraph (d) applicable to\nany such member who was not or is not a seven percent member for\nactuarial equivalent benefit purposes at the time of subsequent\nretirement or of subsequent discontinuance of service so as to qualify\nfor benefits.\n  (g)(1) Subject to the provisions of subparagraph two of this paragraph\nand to the provisions of paragraph (i) of this subdivision, the\nselection of mode of benefit (as defined in subparagraph fourteen of\nparagraph (b) of this subdivision) which, prior to the termination date\nof eligibility for option re-selection (as defined in subparagraph\nnineteen of paragraph (b) of this subdivision), a person entitled to a\nrecomputation of benefits (as defined in subparagraph sixteen of such\nparagraph (b)) made or makes in relation to the retirement allowance (or\nany component thereof) which became or becomes payable to him or her\nprior to such termination date of eligibility for option re-selection,\nshall be the selection of mode of benefit applicable to the recomputed\nretirement allowance (or any corresponding component thereof) to which\nhe or she is entitled under the best-of-three-computations method or the\ngender-neutral computations method, and any such person entitled to a\nrecomputation of benefits pursuant to the best-of-three-computations\nmethod or the gender-neutral computations method shall not be entitled\nto make any change in such selection of mode of benefit.\n  (2) (i) Notwithstanding the provisions of subparagraph one of this\nparagraph, a person entitled to a recomputation of benefits shall be\nentitled, to the extent and in the manner prescribed in the succeeding\nitems of this subparagraph, to change the original selection of mode of\nbenefit applicable to the retirement allowance (or any component\nthereof) which became or becomes payable to him or her prior to the\ntermination date of eligibility for option re-selection.\n  (ii) In any case where the original selection of mode of benefit of a\nperson entitled to a recomputation of benefits was a selection of a\njoint and survivor option (as defined in subparagraph seventeen of\nparagraph (b) of this subdivision), no change from such original\nselection of a joint and survivor option may be made under this\nsubparagraph to any other selection of mode of benefit if the designated\nbeneficiary selected with respect to such joint and survivor option by\nsuch person entitled to a recomputation is not alive at the time of\nfiling of the form whereby such person entitled to a recomputation seeks\nto change, pursuant to this subparagraph, his or her original selection\nof such joint and survivor option.\n  (iii) Except for a change of selection of mode of benefit prohibited\nby item (ii) of this subparagraph, any original selection of mode of\nbenefit may be changed pursuant to this subparagraph to another\nselection of mode of benefit, provided all of the conditions set forth\nin items (iv), (vi) and (viii) of this subparagraph are met.\n  (iv) Subject to the provisions of items (vii) and (viii) of this\nsubparagraph, a person entitled to a recomputation of benefits may,\npursuant to this subparagraph, effect any such permissible change of his\nor her original selection of mode of benefit by executing, acknowledging\nand filing with the retirement system, within the applicable period of\ntime prescribed by item (vi) of this subparagraph, a new selection of\nmode of benefit. If the original selection of mode of benefit of the\nperson filing such new selection was a selection of a joint and survivor\noption, such new selection shall be void and of no effect unless (a) the\ndesignated beneficiary named in such original selection of a joint and\nsurvivor option signs and acknowledges, in the form for such new\nselection of mode of benefit, a consent to such changed selection of\nmode of benefit, and (b) such original designated beneficiary is alive\non the date of filing of such new selection.\n  (v) The retirement system shall mail to each person entitled to a\nrecomputation of benefits a letter showing amounts of benefits, as\nrecomputed for such person under the best-of-three-computations method\nor the gender-neutral computations method, for modes of benefit other\nthan joint and survivor options, together with a statement advising such\nperson that upon request, the amounts of recomputed benefits under joint\nand survivor options will be provided.\n  (vi) The period of time within which any such person entitled to a\nrecomputation may file a new selection of mode of benefit as provided\nfor in items (iii) and (iv) of this subparagraph shall be sixty days\nafter the date of issuance set forth in such letter mailed to such\nperson pursuant to item (v) of this subparagraph; provided, however,\nthat if, pursuant to the request of such person, a later letter setting\nforth benefits information in relation to a new selection of a mode of\nbenefit is mailed to such person by the retirement system, such period\nof time for filing a new selection of mode of benefit shall be thirty\ndays after the date of issuance set forth in such later letter.\n  (vii) Upon the filing of a new selection of mode of benefit pursuant\nto this subparagraph by any such person entitled to a recomputation,\nsuch new selection shall be irrevocable and such person shall not be\nentitled to file any other selection of mode of benefit with respect to\nsuch retirement allowance (or any component thereof) which became\npayable to him or her prior to the termination date of eligibility for\noption re-selection.\n  (viii) No new selection of mode of benefit filed pursuant to the\npreceding items of this subparagraph shall be valid or effective as a\nchange of mode of benefit or for any other purpose unless the person\nentitled to a recomputation of benefits who files such new selection is\nalive on the date (hereinafter referred to as the "validating date")\nthree hundred sixty-five days after the date of filing of such new\nselection of mode of benefit. If such person filing such new selection\nof mode of benefit is alive on the validating date with respect to such\nnew selection, such new selection shall become valid and effective on\nsuch validating date; provided, however, that from and after the\neffective date of retirement of such person making such valid and\neffective new selection of mode of benefit (if he or she retired for age\nor service or superannuation or for ordinary or accident disability) or\nfrom and after the date on which payability of the original benefits of\nsuch person began (if he or she was a discontinued member or\ndiscontinued sanitation member or Tier III member entitled to a vested\nbenefit or Tier IV member entitled to a vested benefit), such new\nselection of mode of benefit shall supersede such original selection of\nmode of benefit and shall apply to and govern the amount of benefits\npayable to such person or to his or her designated beneficiary or\nestate.\n  (h) Subject to the provisions of paragraph (i) of this subdivision, in\nany case where a member of the retirement system who retired before\nAugust first, nineteen hundred eighty-three pursuant to subdivision two\nof section ten of the rules and regulations or for ordinary or accident\ndisability re-entered or re-enters its membership on or after July\nthirty-first, nineteen hundred eighty-three, nothing contained in\nparagraphs (c), (d) and (e) of this subdivision shall be construed as\nauthorizing or permitting him or her to change any selection of mode of\nbenefit (as defined in subparagraph fourteen of paragraph (b) of this\nsubdivision) made by him or her with respect to any benefit which, upon\nhis or her subsequent retirement or discontinuance of service so as to\nqualify for benefits, is payable to him or her as a continuation,\nwithout change, of a benefit which had previously become payable to him\nor her by reason of his or her prior retirement.\n  (i) Nothing contained in paragraph (g) or paragraph (h) of this\nsubdivision shall be construed as preventing:\n  (1) any person (A) who, during the period beginning on August first,\nnineteen hundred eighty-three and ending on the date next preceding the\ndate of enactment (as certified pursuant to section forty-one of the\nlegislative law) of this paragraph retired or retires pursuant to\nsubdivision two of section ten of the rules and regulations or for\nordinary or accident disability and (B) who is subject to such paragraph\n(g) and (C) who on or after July thirty-first, nineteen hundred\neighty-three, re-entered or re-enters education service and again became\nor becomes a member of the retirement system; or\n  (2) any re-entered member referred to in such paragraph (h); upon his\nor her subsequent retirement, from exercising any right, which any other\napplicable law or any provision of the rules and regulations grants to\nhim or her under such circumstances, to make a selection of mode of\nbenefit (as defined in subparagraph fourteen of paragraph (b) of this\nsubdivision).\n  (j) Notwithstanding any provisions of paragraph (c) of this\nsubdivision prescribing a rate of regular interest of seven per centum\nper annum, compounded annually, for specified members described in such\nparagraph, the rate of regular interest which shall be applied to fix\nthe rate of interest on any loan to any such member eligible to borrow\nshall be four per centum per annum, compounded annually.\n  (k) (1) Where any variable annuity program benefit (as defined in\nsubparagraph twelve of paragraph (b) of this subdivision) which is an\nactuarial equivalent benefit (as defined in subparagraph two of such\nparagraph (b)) is payable to any person by reason of:\n  (i) the retirement of a member for age or service or superannuation or\nfor ordinary or accident disability, where such retirement occurred on\nor after August first, nineteen hundred eighty-three or hereafter\noccurs; or\n  (ii) discontinuance of service or termination of employment of a\nmember, where such discontinuance or termination occurred or occurs on\nor after such August first under such circumstances that such member\nbecame or becomes (A) a discontinued member possessing a vested right to\nreceive a retirement allowance pursuant to section thirty-two of the\nrules and regulations (and, in the case of a Tier II member, article\neleven of the retirement and social security law) or (B) a Tier III\nmember entitled to a vested benefit or a Tier IV member entitled to a\nvested benefit; or\n  (iii) the death, on or after such August first, of a member:\nthe rate of interest used to determine such variable annuity program\nbenefit shall be that prescribed by section forty-four of the rules and\nregulations.\n  (2) The retirement board may by resolution direct that different\ncomputations, based on different mortality tables, shall be used to\ndetermine separate portions of a variable annuity program benefit\npayable as described in subparagraph one of this paragraph.\n  (1) In any case where any provision of this subdivision has the\neffect, in relation to any person, of amending, modifying or\nsupplementing any provision of the rules and regulations referred to in\nsubdivision f of section thirty-three of the rules and regulations\n(relating to the tax-deferred annuity program of the retirement system),\nsuch provisions of the rules and regulations, for the purpose of\napplying such subdivision f to such person, shall be deemed to include\nsuch amendment, modification or supplementation.\n  (m) Modified Option 1 pension computation formula. (1) The retirement\nboard may by resolution direct that under such circumstances as are\ndesignated in such resolution, benefits under Option 1 which consist of\nor are derived from the pension component of a retirement allowance and\nwhich are payable to or on account of members who:\n  (i) became members prior to the date of enactment (as certified\npursuant to section forty-one of the legislative law) of this\nsubdivision; and\n  (ii) retired or retire on or after August first, nineteen hundred\neighty-three, for age or service or superannuation or for ordinary or\naccident disability, or on or after such August first, discontinued or\ndiscontinue service so as to become discontinued members; shall be\ndetermined under the modified Option 1 pension computation formula.\n  (2) If the retirement board makes a direction for use of such formula\npursuant to the provisions of subparagraph one of this paragraph, it may\nalso direct by resolution:\n  (i) that any member who is subject to the modified Option 1 pension\ncomputation formula may elect, at such time and in accordance with such\nprocedures as are prescribed in such resolution, that such formula shall\nnot apply to such member and that the initial reserve determined for the\npurpose of providing the benefits payable by reason of his or her\nselection of Option 1 and the pension component of his or her Option 1\nretirement allowance shall be determined on the basis of gender-neutral\nmortality tables and regular interest of seven per centum per annum,\ncompounded annually; and\n  (ii) that the benefit payable, upon the death of the member making\nsuch election, to his or her beneficiary or estate shall be the\ndifference between such Option 1 initial reserve and the total of the\npayments of such pension component received by or payable to such member\nfor the period prior to his or her death; and\n  (iii) that where any member subject to the modified Option 1 pension\ncomputation formula retired before the effective date of the retirement\nboard resolution adopted pursuant to subparagraph one of this paragraph,\nand where the first payment on account of the retirement allowance of\nany discontinued member subject to such formula was made before the\neffective date of such resolution, such retiree or discontinued member,\nwithin such period of time after such effective date and in accordance\nwith such procedures as are prescibed in such resolution, may elect the\nmethod of Option 1 benefit determination set forth in items (i) and (ii)\nof this subparagraph.\n  (3) In any case where, pursuant to board resolution, a benefit is\nrequired to be determined under the modified Option 1 pension\ncomputation formula and the determination of such benefit is also\nrequired by a board resolution adopted pursuant to item (iii) of\nsubparagraph one of paragraph (d) of this subdivision to reflect\ndifferent computations of separate portions of such benefits the methods\nof computation under the modified Option 1 pension computation formula\nshall be appropriately adjusted so as to give effect to the provisions\nof such resolution adopted pursuant to such item (iii).\n  (n) Any reference in this subdivision to retirement for service shall\nbe deemed, for the purpose of this subdivision, to include retirement\npursuant to the provisions of subdivision two of section ten of the\nrules and regulations.\n  (o) The rate of regular interest applicable to determination of the\nrate of member contribution of any member whose last membership began\nprior to the date of enactment (as certified pursuant to section\nforty-one of the legislative law) of this subdivision shall be the rate\nof regular interest which was applicable, under the provisions of the\nrules and regulations in effect prior to such date of enactment, to the\ndetermination of the rate of member contribution of such member, and\nnothing contained in the preceding paragraphs of this subdivision shall\nbe construed as applicable to the determination of the rate of member\ncontribution of any such member whose last membership so began or as\nchanging or affecting the rate of member contribution of any such\nmember.\n  (p) (1) In any case where:\n  (i) a conversion of a fixed benefit or portion thereof to a variable\nbenefit is elected pursuant to section forty-two of the rules and\nregulations; and\n  (ii) pursuant to any provision of law and/or the rules and regulations\nand/or any resolution of the retirement board adopted thereunder, the\nrate of regular interest and/or the mortality tables which were required\nto be used in the actuarial determination of such fixed benefit being\nconverted, are different from the rate of regular interest and/or\nmortality tables would have been required to be used to determine a like\nvariable benefit as of the same date (hereinafter referred to as the\n"calculation date") as of which such fixed benefit was required to be\ndetermined as an actuarial equivalent; the composition of the variable\nportion of each instalment of benefit for each month of the conversion\nperiod shall be determined in the manner prescribed in subparagraph two\nof this paragraph (p).\n  (2) The amount, in units, of the variable portion for any such\nconversion month to which subparagraph one of this paragraph applies\nshall be equal to the number of units in the previous month's variable\nportion, if any, plus a number of units which is the actuarial\nequivalent, as of the calculation date, of the fixed portion converted\neach month. Such actuarial equivalent units for each such month shall be\ndetermined on the basis of the unit value for such month, in accordance\nwith a scientific formula which recognizes the difference in the rates\nof regular interest and/or mortality tables referred to in subparagraph\none of this paragraph.\n  (3) In any case where:\n  (i) a conversion of a variable benefit is elected pursuant to section\nforty-two of the rules and regulations; and\n  (ii) pursuant to any provision of law and/or the rules and regulations\nand/or any resolution of the retirement board adopted thereunder, the\nrate of regular interest and/or mortality tables which were required to\nbe used in the actuarial determination of such variable benefit being\nconverted are different from the rate of regular interest and/or\nmortality tables which would have been required to be used to determine\na like fixed benefit as of the same date (hereinafter referred to as the\n"calculation date") as of which such variable benefit was required to be\ndetermined as an actuarial equilvalent; the composition of the fixed\nportion of each instalment of benefit for each month of the conversion\nperiod shall be determined in the manner prescribed in subparagraph four\nof this paragraph.\n  (4) The amount of the fixed portion for any such conversion month to\nwhich subparagraph three of this paragraph applies shall be equal to the\nprevious month's fixed portion, if any, plus a fixed amount which is the\nactuarial equivalent, as of the calculation date, of the number of units\nconverted each month. Such actuarial equivalent fixed amount for each\nsuch month shall be determined on the basis of the unit value for such\nmonth, in accordance with a scientific formula which recognizes the\ndifference in the rates of regular interest and/or mortality tables\nreferred to in subparagraph three of this paragraph.\n  (q) Notwithstanding any other provision of this section, an option\nselection made pursuant to this subdivision and the rules and\nregulations governing such choice previously filed by a member or\nretired member may be changed no later than thirty days following the\ndate of payability of his or her retirement allowance. A retired member\nwho has been retired for disability may change an option selection\npreviously filed no later than (1) thirty days following the date on\nwhich such member's application for disability retirement was approved\nby the retirement board or (2) thirty days following the date on which\nsuch retiree was retired for disability, whichever is later.\n  18. (a) The following terms, as used in this subdivision, shall have\nthe following meanings, unless a different meaning is plainly required\nby the context:\n  (1) "Board of education". The board of education of a city.\n  (2) "Board of education retirement system". The board of education\nretirement system established pursuant to the provisions of this section\nin a city.\n  (3) "City". A city having a population of one million or more.\n  (4) "Rules and regulations". The rules and regulations for the\ngovernment, management and control of the board of education retirement\nsystem adopted pursuant to the provisions of this section.\n  (5) "Provisional employee". Any person employed by the board of\neducation on the basis of a provisional appointment pursuant to section\nsixty-five of the civil service law.\n  (6) "Education service". Service as a paid official or employee of the\nboard of education or the New York city school construction authority,\nand allowable as provided in section four of the rules and regulations\nor, in the case of a tier II member or a tier IV member, allowable\npursuant to the provisions which respectively govern the service credit\nof such a member of the board of education retirement system.\n  (7) "Former provisional employee". Any person permanently employed by\nthe board of education:\n  (i) who is a transferred contributor in the New York city employees'\nretirement system pursuant to section B3-57.0 or 13-188 of the\nadministrative code of the city of New York; and\n  (ii) who first acquired membership in the New York city employees'\nretirement system as a provisional employee of the board of education;\nand\n  (iii) whose last period of permanent employment by the board of\neducation was immediately preceded by his employment by the board of\neducation as a provisional employee.\n  (8) "Tier II member". A member of a public retirement system who is\nsubject to the provisions of article eleven of the retirement and social\nsecurity law.\n  (9) "Tier IV member". A member of a public retirement system who is\nsubject to the provisions of article fifteen of the retirement and\nsocial security law.\n  (b) (1) Notwithstanding the provisions of paragraph (a) of subdivision\none of this section or any provision of the rules and regulations or any\nother provision of law to the contrary, membership in the board of\neducation retirement system shall include any provisional employee in\neducation service who elects to become a member in the manner prescribed\nby the applicable provisions of subparagraph two, subparagraph three or\nsubparagraph four of this paragraph.\n  (2) Any such provisional employee who is not a member of the New York\ncity employees' retirement system at the time he or she elects to become\na member of the board of education retirement system may make such an\nelection of membership by filing with the board of education retirement\nsystem a duly executed and acknowledged application for membership.\n  (3) Any such provisional employee who is a member of the New York city\nemployees' retirement system at the time he or she elects to become a\nmember of the board of education retirement system may make such an\nelection of membership by filing simultaneously with the board of\neducation retirement system a duly executed and acknowledged application\nfor membership and a duly executed and acknowledged request that his or\nher membership and service credit in the New York city employees'\nretirement system be transferred to the board of education retirement\nsystem.\n  (4)(i) Beginning July first, two thousand twenty-four, upon the entry\ninto employment of any employee eligible to elect membership in the\nretirement system pursuant to subparagraphs one, two and three of this\nparagraph or any other applicable provision of law, and provided such\nemployee is not a member in the retirement system or any other public\nretirement system of the city or state of New York as of such entry date\nin covered employment, such employee shall be enrolled in the retirement\nsystem effective ninety-one days after the commencement of employment.\nNotwithstanding the preceding, if such employee files with the\nretirement system an application to opt out of membership within ninety\ndays after commencement of employment, the retirement system shall\nrefrain from enrolling such employee unless and until such employee\nsubsequently files an application for membership with the retirement\nsystem, or is otherwise subsequently mandated to enroll by the rules and\nregulations of the retirement system or any applicable law. The employer\nand the applicable union for the retirement system shall jointly provide\nwritten notice to the employee informing the employee that he or she has\nthe option to opt-out of the automatic enrollment program. Such notice\nshall be provided to the employee on three occasions: on or before the\nthirtieth day, the sixtieth day and the ninetieth day prior to automatic\nenrollment in the retirement system. The automatic enrollment of\neligible employees as provided for in this subparagraph shall not be\nconstrued to modify the right of eligible employees to join the\nretirement system as of the first date of covered employment by filing\nan application for membership with the retirement system. The employer\nshall inform the employee in writing of the right to join the system as\nwell as the fact that the employee shall be enrolled in the retirement\nsystem on the ninety-first day after commencement of employment, unless\nsuch employee files with the retirement system an application to opt out\nof membership prior to such date. Any eligible employee who elects to\nopt out of membership in the retirement system within the ninety day\nperiod shall retain the right to join such system by subsequently filing\nan application for membership so long as such employee remains in\ncovered employment.\n  (ii) Every current employee who is eligible for membership in the\nretirement system on July first, two thousand twenty-four, and who is\nnot a member in the retirement system or any other public retirement\nsystem of the city or state of New York, shall be enrolled in the\nretirement system effective October first, two thousand twenty-four,\nunless such employee files with the retirement system an application to\nopt out of membership before October first, two thousand twenty-four.\nSuch automatic enrollment in the retirement system shall not be\nconstrued to waive any of the eligibility requirements for previous\nservice credit.\n  (iii) The automatic enrollment of eligible employees as provided for\nin this subparagraph shall not be construed to modify the rights and\nobligations of any employee whose participation in the retirement system\nis mandated by the rules and regulations of the retirement system or any\napplicable law, and such mandated members may not opt out of membership.\n  (iv) If an employee who is automatically enrolled in the retirement\nsystem pursuant to the provisions of this paragraph is a member of a\nunion, the retirement system shall provide written notice to the union\nof the employee's enrollment within thirty days of the employee's\nenrollment in the retirement system.\n  (v) The provisions of this subparagraph shall apply to full-time\nemployees and part-time employees. The provisions of this subparagraph\nshall not apply to provisional employees.\n  (c) (1) Notwithstanding the provisions of section B3-57.0 or 13-188 of\nthe administrative code of the city of New York or any provision of the\nrules and regulations or any other provision of law to the contrary,\nmembership in the board of education retirement system shall include any\nformer provisional employee who, while employed in education service,\nelects to become a member in the manner prescribed by subparagraph two\nof this paragraph.\n  (2) Any such former provisional employee may make such an election of\nmembership by filing simultaneously with the board of education\nretirement system, within six months after the date of enactment (as\ncertified pursuant to section forty-one of the legislative law) of this\nsubdivision, a duly executed and acknowledged application for membership\nand a duly executed and acknowledged request that his or her membership\nand service credit in the New York city employees' retirement system be\ntransferred to the board of education retirement system.\n  (d) Any election of membership in the board of education retirement\nsystem made pursuant to paragraph (b) or paragraph (c) of this\nsubdivision shall be irrevocable.\n  (e) (1) Upon the filing of a request for a transfer with the board of\neducation retirement system as provided for in subparagraph three of\nparagraph (b) of this subdivision or subparagraph two of paragraph (c)\nof this subdivision, the board of education retirement system shall file\nsuch request for a transfer with the New York city employees' retirement\nsystem. Upon the filing of such request for a transfer with the New York\ncity employees' retirement system, such retirement system shall make a\ntransfer of reserves and accumulated contributions to the board of\neducation retirement system in the manner required by section\nforty-three of the retirement and social security law.\n  (2) Nothing contained in the preceding provisions of this subdivision\nor of any other law shall be construed (i) as imposing any restriction\nunder the third sentence of subdivision d of such section forty-three on\nthe determination of the salary base for benefit computation purposes\nwith respect to any person whose membership and service credit are\ntransferred to the board of education retirement system pursuant to the\napplicable preceding provisions of this subdivision, or (ii) as making\nthe last sentence of such subdivision d applicable to any such\ntransferee.\n  (3) Any employee of the board of education of the city of New York who\nis a member of the New York city employees' retirement system may elect\nto transfer membership to the New York city board of education\nretirement system. Any election pursuant to this section shall be made\nno later than the one hundred eightieth day next succeeding the date on\nwhich the provisions hereof become effective by filing a written notice\nthereof with the administrative head of the New York city employees'\nretirement system, and the New York city board of education retirement\nsystem, and, once made and filed, such election shall be irrevocable.\nWhere an employee of the board of education becomes a member of the New\nYork city board of education retirement system pursuant to this section,\nthe New York city employees' retirement system shall make a transfer of\nreserves, contributions, and credits to the New York city board of\neducation retirement system in the manner required by section\nforty-three of the retirement and social security law.\n  (f) Notwithstanding the provisions of paragraph (a) of subdivision one\nof this section or any provision of the rules and regulations or any\nother provision of law to the contrary, membership in the board of\neducation retirement system shall include any person employed by the New\nYork city police department in the title of school crossing guard who\nbecomes a member in the manner prescribed by the provisions of\nsubdivision g of section 13-638.4 of the administrative code of the city\nof New York or by the provisions of subparagraph four of paragraph (b)\nof this subdivision.\n  (g)(1) For purposes of this paragraph, the terms "career pension plan\nmember", "career pension plan position" and "fifty-five-year-increased-\nservice-fraction member" shall have the meanings set forth in paragraphs\ntwenty-eight, twenty-nine and thirty-one, respectively, of section two\nof the rules and regulations.\n  (2) For purposes of this paragraph, the term "fractional plan member"\nshall mean a member of the board of education retirement system holding\na career pension plan position who is not a career pension plan member\nor a fifty-five-year-increased-service-fraction member, and who is not\nsubject to the provisions of article eleven, fourteen or fifteen of the\nretirement and social security law.\n  (3) Notwithstanding any provision of this section or any other\nprovision of law to the contrary, effective October first, nineteen\nhundred ninety-three, the rules and regulations shall be deemed to be\namended so as to provide that any fractional plan member in education\nservice on such date, who holds a career pension plan position on such\ndate, shall, on such date, be deemed to have elected to become a career\npension plan member under the same terms and conditions, and with the\nsame rights, benefits, privileges and obligations as are applicable to\nsimilarly situated members of the New York city employees' retirement\nsystem, as provided in subdivision m of section 13-162 of the\nadministrative code of the city of New York, as enacted by the act which\nadded this paragraph.\n  (h) (1) For the purposes of this paragraph, including, without\nlimitation, the use, pursuant to subparagraph two of this paragraph, of\nthe provisions of paragraphs one, two and three of subdivision c of\nsection 13-162 of the administrative code of the city of New York and\nsubparagraph (a) of paragraph four of such subdivision (as amended by\nthe provisions of the chapter of the laws of nineteen hundred\nninety-five which added this paragraph) to prescribe certain of the\nadditional rights, privileges, benefits and obligations hereunder, of\ncareer pension plan members and increased-service-fraction members, the\nfollowing items of this subparagraph one shall apply:\n  (i) the terms "career pension plan", "career pension plan member",\n"career pension plan position" and\n"fifty-five-year-increased-service-fraction-member" shall have the\nmeanings set forth in paragraphs twenty-seven, twenty-eight, twenty-nine\nand thirty-one, respectively, of section two of the rules and\nregulations;\n  (ii) the term "city-service", as used in the provisions of subdivision\nc of such section 13-162 referred to in the opening paragraph of this\nparagraph one shall be deemed to mean "education-service", as defined in\nsubparagraph six of paragraph (a) of this subdivision;\n  (iii) the term "career pension plan qualifying service", as used in\nsuch provisions of subdivision c of section 13-162, shall mean\n"creditable career pension plan service" as defined in paragraph\nthirty-eight of section two of the rules and regulations;\n  (iv) the pension referred to in item (ii) of subparagraph (a) of\nparagraph four of such subdivision c of section 13-162 shall be deemed\nto mean the pension referred to in subdivision seven of section twelve\nof the rules and regulations; and\n  (v) the provisions of subparagraph (b) of paragraph four of\nsubdivision c of such section 13-162 shall be deemed inapplicable to\ncareer pension plan members and\nfifty-five-year-increased-service-fraction members who are subject to\nthe provisions of this paragraph.\n  (2) Notwithstanding any provision of the rules and regulations or this\nsection or any other provision of law to the contrary, the rules and\nregulations shall be deemed to be amended so as to provide that on and\nafter the effective date of this paragraph:\n  (i) each career pension plan member, subject to the succeeding\nsubparagraphs of this paragraph, shall have the same additional rights,\nprivileges, benefits and obligations and be subject to the same\nadditional terms and conditions with respect to withdrawing his or her\nelection to be a career pension plan member as are provided for in\nrelation to a similarly situated career pension plan member of the New\nYork city employees' retirement system by the chapter of the laws of\nnineteen hundred ninety-five which added this paragraph; and\n  (ii) each fifty-five-year-increased-service-fraction member, subject\nto the succeeding subparagraphs of this paragraph, shall have the same\nadditional rights, privileges, benefits and obligations and be subject\nto the same additional terms and conditions with respect to electing to\nbe a career pension plan member as are provided for in relation to a\nsimilarly situated fifty-five-year-increased-service-fraction member of\nthe New York city employees' retirement system by the chapter of the\nlaws of nineteen hundred ninety-five which added this paragraph.\n  (3) In any case where a member effects a change in his or her\nretirement plan pursuant to the preceding subparagraphs of this\nparagraph, his or her normal rate of member contribution as a member of\nsuch changed plan shall be fixed pursuant to the appropriate provisions\nof the rules and regulations with respect to rates of member\ncontribution of members of such changed plan.\n  (4) Nothing contained in subparagraph two of this paragraph shall be\nconstrued as diminishing or impairing:\n  (i) any right granted to any career pension plan member by the\nprovisions of paragraph ten of subdivision m of section 13-162 of the\nadministrative code of the city of New York, where the provisions of\nsuch paragraph ten are made applicable to such member by paragraph (g)\nof this subdivision; and\n  (ii) any right granted to a career pension plan member by subparagraph\n(a) of paragraph one of subdivision c of section thirty of the rules and\nregulations to withdraw from the career pension plan.\n  (5) Notwithstanding any provision of the rules and regulations or this\nsection or any other provision of law to the contrary, the rules and\nregulations shall be deemed to be amended so as to provide that:\n  (i) subject to the provisions of item (ii) of this subparagraph five,\nin any case where, on or after the effective date of this paragraph, a\nfifty-five-year-increased-service-fraction member dies in service while\nsuch a member, after completing twenty or more years of creditable\ncareer pension plan service, such member shall be deemed to have died as\na career pension plan member, if status as such a career pension plan\nmember at the time of his or her death would result in a benefit larger\nthan the benefit which would be payable if such member died while a\nfifty-five-year-increased-service-fraction member; and\n  (ii) in any case where a member referred to in item (i) of this\nsubparagraph five is a Tier II member at the time of his or her death,\nany change in the plan membership of such member pursuant to such item\n(i) shall not change, alter or affect the applicability of article\neleven of the retirement and social security law to such member.\n  (i) A retired member of the board of education retirement system shall\nhave the right, at any time after the retired member's retirement, to\nexecute and file a dues deduction authorization card with such\nretirement system authorizing the deduction from the retired member's\nretirement allowance of membership dues and the payment thereof to a\nretiree organization of which the retired member certifies he or she is\nthen a member and which the retired member certifies is then affiliated\nwith either an employee organization certified or recognized as the\ncollective bargaining representative of all employees in the negotiating\nunit of which the retired member was a part prior to his or her\nretirement or an employee organization with which such employee\norganization is then affiliated. The comptroller shall thereafter deduct\nfrom the retirement allowance of such retired member the amount of\nmembership dues required to be paid by such retired member, and shall\ntransmit the sum so deducted to said retiree organization. Such\nauthorization shall continue in effect until revoked in writing by such\nretired member.\n  (j) Notwithstanding any other provision of law or rule, a retired\nmember of the board of education retirement system of the city of New\nYork shall be permitted to repay the outstanding balance of a loan taken\npursuant to the rules and regulations of the retirement system at any\ntime. Benefits payable after the repayment of the loan shall not be\nsubject to any actuarial reduction imposed as a result of an outstanding\nbalance.\n  ** 19. Pick up of Tier I and Tier II member contributions by the\nemployer. (a) For the purposes of this subdivision:\n  (1) The terms "board of education," "rules and regulations" and\n"retirement system" shall have the meanings set forth in subparagraphs\none, three and four, respectively, of paragraph (a) of subdivision\nsixteen of this section; and\n  (2) the terms "member," "Tier I member" and "Tier II member" shall\nhave the meanings set forth in subparagraphs one, four and five,\nrespectively, of subparagraph (b) of subdivision seventeen of this\nsection.\n  (b) the following terms, as used in this subdivision, shall have the\nfollowing meanings, unless a different meaning is plainly required by\nthe context:\n  (1) "Basic rate of contribution as a Tier I or Tier II member." (i)\nSubject to the provisions of clauses (ii) and (iii) of this subparagraph\none, the term "basic rate of contribution as a Tier I or Tier II member"\nshall mean the proportion of the earnable compensation of a Tier I\nmember or Tier II member required by the provisions of subparagraph (i)\nof paragraph f of subdivision one of section eight of the rules and\nregulations and any other applicable provisions of the rules and\nregulations or law to be deducted from the personal compensation of such\nmember as his or her member contributions, exclusive of any increase in\nsuch contributions resulting from an election by such member pursuant to\nlaw to effect such an increase, or any decrease in such contributions on\naccount of any program for increased-take-home-pay or pursuant to\nsubdivision one of section one hundred thirty-eight-b of the retirement\nand social security law (relating to election to decrease member\ncontributions by contributions due on account of social security\ncoverage).\n  (ii) In any case where it is provided in the rules and regulations\nthat the deduction from a member's compensation on account of member\ncontributions required to be made by a Tier I member or Tier II member\nshall not be in excess of fifteen per centum unless the member so\nelects, and such member makes such election, any per centum of such\ndeduction in excess of fifteen per centum with respect to such member\nshall not be included in such member's basic rate of contribution as a\nTier I or Tier II member.\n  (iii) In any case where a Tier I member or Tier II member who is a\nfifty-five-year-increase-service-fraction member (as defined in\nsubdivision thirty-one of section two of the rules and regulations) has\nelected or elects, pursuant to paragraph g of subdivision one of section\neight of the rules and regulations, to contribute to the retirement\nsystem at a rate one per centum less than such member's normal rate of\ncontribution, such member's basic rate of contribution as a Tier I or\nTier II member, during any period wherein such election is in effect,\nshall be one per centum less than such member's normal rate of\ncontribution as a fifty-five-year-increased-service-fraction member. In\nany case where any such member elects pursuant to such paragraph g to\ndiscontinue such reduction, such election to discontinue shall not be\ndeemed, for the purposes of subparagraph four of this paragraph (b) to\nbe an election to increase member contributions above the level\nprescribed by the member's basic rate of contribution as a Tier I or\nTier II member, and upon such discontinuance, such member's basic rate\nof contribution as a Tier I or Tier II member shall be his or her normal\nrate of contribution as a fifty-five-year-increased-service-fraction\nmember.\n  (2) "Contributing Tier I or Tier II member." With respect to any\npayroll period as to which the status of a Tier I member or Tier II\nmember as to required member contributions is to be determined, the term\n"contributing Tier I or Tier II member" shall mean any Tier I member or\nTier II member other than any Tier I member or Tier II member who is not\nrequired to contribute during such payroll period because of his or her\nthen currently effective election, pursuant to subparagraph f of\nparagraph one of section eight of the rules and regulations, not to\ncontribute.\n  (3) "Employer responsible for pick up." The public employer by which a\nTier I member or Tier II member is employed.\n  (4) "Tier I or Tier II member contributions eligible for pick up by\nthe employer." (i) With respect to any payroll period for a contributing\nTier I or Tier II member (as defined in subparagraph two of this\nparagraph (b)), the amount of member contributions which, in the absence\nof a pick up program applicable to such member pursuant to this\nsubdivision, would be required by law to be deducted, on account of such\nmember's basic rate of contribution as a Tier I or Tier II member (as\ndefined in subparagraph one of this paragraph), from the personal\ncompensation of such member for such payroll period, after (A) giving\neffect to any reduction in such contributions required under any program\nfor increased-take-home-pay or pursuant to subdivision one of section\none hundred thirty-eight-b of the retirement and social security law and\n(B) excluding any deductions from such compensation (or redeposits,\nrestorations or payments) on account of (1) loans or withdrawal of\nexcess contributions or (2) any election by any such member, pursuant to\nany applicable provision of the rules and regulations, to increase his\nor her member contributions above the level prescribed by his or her\nbasic rate of contribution as a Tier I or Tier II member or (3) any\nother cause not attributable to the member's basis rate of contribution\nas a Tier I or Tier II member after reduction in such rate, if any, as\ndescribed in item (A) of this clause (i).\n  (ii) If no deductions on account of any such member's basic rate of\ncontribution as a Tier I or Tier II member are required by the rules and\nregulations to be made from the personal compensation of such member for\nany payroll period, such member shall not have, for such payroll period,\nany Tier I or Tier II member contributions eligible for pick up by the\nemployer. The amount of Tier I or Tier II member contributions eligible\nfor pick up by the employer of any Tier I member or Tier II member for\nany payroll period shall be determined solely on the basis of personal\ncompensation paid to such member for such payroll period by his or her\npublic employer. A Tier I member or Tier II member shall not have any\nTier I or Tier II member contributions eligible for pick up by the\nemployer with respect to any payroll period for which he or she is not\npaid personal compensation by his or her public employer.\n  (5) "Starting date for pickup." The first day of the first whole\npayroll period commencing after the date which is sixty days after the\ninternal revenue service shall have issued a ruling that member\ncontributions picked up pursuant to this subdivision are not includible\nas gross income for federal income tax purposes until distributed or\nmade available.\n  (c) Notwithstanding any other provision of the law to the contrary, on\nand after the starting date for pick up, the employer responsible for\npick up shall pick up and pay into the annuity savings fund (subject to\nthe provisions of subparagraph four of paragraph (f) of this\nsubdivision) the Tier I or Tier II member contributions eligible for\npick up by the employer which each Tier I member and Tier II member\nwould otherwise be required to make on and after such starting date.\n  (c-1) Notwithstanding any other provision of law to the contrary, the\nemployer responsible for pick up shall, in the case of a member who is a\nparticipant in the age fifty-five improved benefit retirement program\n(as defined in paragraph ten of subdivision a of section four hundred\nforty-five-d of the retirement and social security law), pick up and pay\nto the retirement system all additional member contributions which\notherwise would be required to be deducted from such member's\ncompensation pursuant to paragraph three of subdivision d of such\nsection four hundred forty-five-d, and shall effect such pick up on each\nand every payroll of such participant for each and every payroll period\nwith respect to which such paragraph three otherwise would require such\ndeductions.\n  (c-2) Notwithstanding any other provision of law to the contrary, the\nemployer responsible for pick up shall, in the case of a member who is a\nparticipant in the age fifty-five retirement program (as defined in\nparagraph ten of subdivision a of section four hundred forty-five-i of\nthe retirement and social security law), pick up and pay to the\nretirement system all additional member contributions which otherwise\nwould be required to be deducted from such member's compensation\npursuant to paragraph three of subdivision d of section four hundred\nforty-five-i of the retirement and social security law, and shall effect\nsuch pick up on each and every payroll of such participant for each and\nevery payroll period with respect to which such paragraph three\notherwise would require such deductions.\n  (d) An amount equal to the amount of such picked up contributions\nshall be deducted by the employer responsible for pick up from the\npersonal compensation of such member (as such compensation would be in\nthe absence of a pick up program applicable to him or her hereunder) and\nshall not be paid to such member. Such deduction shall be effected by\nmeans of subtraction from such member's current personal compensation\n(as so defined), or offset against future pay increases, or a\ncombination of such methods.\n  (e) (1) * The member contributions and additional member contributions\npicked up pursuant to this subdivision for any Tier I member or Tier II\nmember shall be paid by the employer responsible for pick up in lieu of\nan equal amount of the member contributions and additional member\ncontributions otherwise required to be paid by such member under the\nprovisions of the rules and regulations or the retirement and social\nsecurity law, and shall be deemed to be and treated as employer\ncontributions pursuant to subsection h of section four hundred fourteen\nof the United States internal revenue code, as amended, for the\npurposes, under federal law, for which such subsection h so classifies\nsuch picked up contributions. Subject to the provisions of paragraph (d)\nof this subdivision, for all other purposes, including but not limited\nto:\n  * NB Effective until notice of ruling by Internal Revenue Service per\nch. 627/2007 §22\n  * The member contributions and additional member contributions picked\nup pursuant to this subdivision for any Tier I member or Tier II member\nshall be paid by the employer responsible for pick up in lieu of an\nequal amount of the member contributions and additional member\ncontributions otherwise required to be paid by such member under the\nprovisions of the rules and regulations or the retirement and social\nsecurity law, including any member contributions required to be made for\nthe purchase of credit for previous service or credit for military\nservice pursuant to subparagraph three of this paragraph, provided,\nhowever, that contributions picked up for the purchase of credit for\nmilitary service shall be deposited in the employer contribution account\nin accordance with subdivision four of section one thousand of the\nretirement and social security law, and shall be deemed to be and\ntreated as employer contributions pursuant to subsection h of section\nfour hundred fourteen of the United States internal revenue code, as\namended, for the purposes, under federal law, for which such subsection\nh so classifies such picked up contributions. Subject to the provisions\nof paragraph (d) of this subdivision, for all other purposes, including\nbut not limited to:\n  * NB Takes effect upon notice of ruling by Internal Revenue Service\nper ch. 627/2007 §22\n  (i) the obligation of such member to pay New York state and New York\ncity income and/or wages or earnings taxes and the withholding of such\ntaxes; and\n  (ii) the determination of the amount of such member's Tier I or Tier\nII member contributions eligible for pick up by the employer or\nadditional member contributions required to be picked up pursuant to\nparagraph c-one or c-two of this subdivision; and\n  (iii) the determination of the amount of any retirement allowance or\nother retirement system benefit payable to or on account of such member\nor any other retirement system right, benefit or privilege of such\nmember;\nthe amount of the member contributions and additional member\ncontributions picked up pursuant to this subdivision shall be deemed to\nbe a part of the employee personal compensation of such member and such\nmember's gross personal compensation (as it would be in the absence of a\npick up program applicable to him or her hereunder) shall not be deemed\nto be changed by such member's participation in such program.\n  (2) Nothing contained in subparagraph one of this paragraph (e) shall\nbe construed as superseding the provisions of section four hundred\nthirty-one of the retirement and social security law or any similar\nprovision of law which limits the salary base for computing retirement\nbenefits payable by a public retirement system.\n  * (3) Employer pick-up of contributions in respect of previous service\nor military service. Notwithstanding any other provision of law, any\nmember eligible to purchase credit for previous service with a public\nemployer pursuant to this section or to purchase credit for military\nservice pursuant to article twenty of the retirement and social security\nlaw, may elect to purchase any or all of such service by executing a\nperiodic payroll deduction agreement where and to the extent such\nelections are permitted by the retirement system by rule or regulation.\nSuch agreement shall set forth the amount of previous service or\nmilitary service being purchased, the estimated total cost of such\nservice credit, and the number of payroll periods in which such periodic\npayments shall be made. Such agreement shall be irrevocable, shall not\nbe subject to amendment or modification in any manner, and shall expire\nonly upon completion of payroll deductions required therein.\nNotwithstanding the foregoing, any member who has entered into such a\npayroll deduction agreement and who terminates employment prior to the\ncompletion of the payments required therein shall be credited with any\nservice as to which such member shall have paid the contributions\nrequired under the terms of the agreement.\n  * NB Takes effect upon notice of ruling by Internal Revenue Service\nper ch. 627/2007 §22\n  (f) (1) For the purpose of determining the retirement system rights,\nbenefits and privileges of any Tier I member or Tier II member whose\nTier I or Tier II member contributions eligible for pick up by the\nemployer are picked up pursuant to this subdivision (including the\nprocurement of loans by any such member), such picked up member\ncontributions, subject to the provisions of subparagraph four of this\nparagraph (f), shall be deemed to be and treated (i) as member\ncontributions made by such member pursuant to law and (ii) as a part of\nsuch member's accumulated deductions.\n  (2) For the purpose of determining the retirement system rights,\nbenefits and privileges of any member who is a participant in the age\nfifty-five improved benefit retirement program (as defined in paragraph\nten of subdivision a of section four hundred forty-five-d of the\nretirement and social security law), the additional member contributions\nof such participant picked up pursuant to paragraph (c-one) of this\nsubdivision shall be deemed to be and treated as a part of such member's\nadditional member contributions under subdivision d of such section four\nhundred fifty-five-d.\n  (2-a) For the purpose of determining the retirement system rights,\nbenefits and privileges of any member who is a participant in the age\nfifty-five retirement program (as defined in paragraph ten of\nsubdivision a of section four hundred forty-five-i of the retirement and\nsocial security law), the additional member contributions of such\nparticipant picked up pursuant to paragraph c-two of this subdivision\nshall be deemed to be and treated as a part of such member's additional\nmember contributions under subdivision d of section four hundred\nforty-five-i of the retirement and social security law.\n  (3) Interest on contributions picked up for any Tier I member or Tier\nII member pursuant to this subdivision (other than additional member\ncontributions picked up pursuant to paragraph c-one or c-two of this\nsubdivision) shall accrue in favor of the member and be payable to the\nretirement system at the same rate, for the same time periods, in the\nsame manner and under the same circumstances as interest would be\nrequired to accrue in favor of the member and be payable to the\nretirement system on such contributions if they were made by such member\nin the absence of a pick up program applicable to such member under the\nprovisions of this section.\n  (4) Where member contributions of any Tier I member or Tier II member\nare picked up and paid into the annuity savings fund pursuant to this\nsection, such picked up contributions shall be credited to a separate\naccount within the individual account of such member in such fund, so\nthat a separate record of the amount of such picked up contributions is\nmaintained.\n  (5) For the purpose of determining the retirement system rights,\nbenefits and privileges of any Tier I member or Tier II member who is a\nparticipant in a variable annuity program of the retirement system, his\nor her picked up member contributions shall, to the extent and in the\nproportions appropriate pursuant to his or her election to participate\nin such program, be deemed to be and treated as a part of his or her\naccumulated deductions and/or credits in his or her account in the\nvariable annuity savings fund. A separate record shall be kept showing\nany such variable annuity savings fund account credits attributable to\nany such picked up contributions.\n  (6) Nothing contained in this paragraph (f) shall be construed as\ngranting member contributions or additional member contributions picked\nup under this subdivision any status, under federal law, other than as\nemployer contributions, pursuant to subsection h of section four hundred\nfourteen of the United States internal revenue code, for the federal\npurposes for which such subsection h so classifies such picked up\ncontributions.\n  (g) No member whose member contributions or additional member\ncontributions are required to be picked up pursuant to this subdivision\nshall have any right to elect that such pick up, with accompanying\ndeduction from the personal compensation of such member as prescribed by\nparagraph (d) of this subdivision, shall not be effectuated.\n  ** NB Expires per ch. 681/92 § 16\n  * 20. (a) For the purposes of this subdivision, the terms "rules and\nregulations" and "retirement system" shall have the meanings set forth\nin subparagraphs three and four, respectively, of paragraph (a) of\nsubdivision sixteen of this section.\n  (b) The following terms, as used in this subdivision, shall have the\nfollowing meanings, unless a different meaning is plainly required by\nthe context:\n  (1) "Tax-deferred annuity program". The tax-deferred annuity program\nestablished pursuant to the provisions of section thirty-one hundred\nnine-A of this chapter and section thirty-three of the rules and\nregulations.\n  (2) "Annuity savings fund". The annuity savings fund under the\ntax-deferred annuity program.\n  (3) "Annuity reserve fund". The annuity reserve fund under the\ntax-deferred annuity program.\n  (4) "Variable annuity savings fund". The variable annuity savings fund\nunder the tax-deferred annuity program.\n  (5) "Variable annuity reserve fund". The variable annuity reserve fund\nunder the tax-deferred annuity program.\n  (6) "Tax-deferred annuity account". The tax-deferred annuity account\nmaintained in the tax-deferred annuity program by a participant in such\nprogram.\n  (c) (1) Notwithstanding any provision of the rules and regulations or\nany other provision of law to the contrary, a participant in the\ntax-deferred annuity program who, pursuant to the applicable provisions\nof the rules and regulations and/or the retirement and social security\nlaw, retires for service or disability, or who discontinues service with\na vested right to receive a deferred retirement allowance, may elect to\ndefer commencement of the distribution of his or her tax-deferred\nannuity account to the latest date permitted by the provisions of\nsection 403(b) of the internal revenue code pertaining to the\ncommencement of distribution of tax-deferred annuities, by filing an\nelection for such deferral of distribution with the retirement system\nduring the time period which:\n  (i) for a service retiree, commences on the day such person's\napplication for service retirement is filed with the retirement system,\nand which ends on the day prior to the effective date of retirement; or\n  (ii) for a disability retiree, commences on the day such person\nreceives notification from the retirement system that it has approved\nhis or her retirement for disability, and which ends on the thirtieth\nday after such receipt of notification; or\n  (iii) for a member who discontinues service with a vested right to\nreceive a deferred retirement allowance, commences thirty days prior to\nthe date of such discontinuance of service, and which ends on the day\nsuch retirement allowance becomes payable pursuant to the applicable\nprovisions of the rules and regulations and/or the retirement and social\nsecurity law.\n  (2) A participant in the tax-deferred annuity program who, pursuant to\nthe provisions of subparagraph one of this paragraph, has elected to\ndefer commencement of the distribution of his or her tax-deferred\nannuity account to the latest date for distribution referred to in such\nsubparagraph one may revoke such election by filing a revocation of such\nelection with the retirement system at any time prior to such latest\ndate. Where a participant has made such a revocation, the distribution\nof his or her tax-deferred annuity account shall be made thereafter in\naccordance with the applicable provisions of the rules and regulations.\n  (3) Where a participant in the tax-deferred annuity program has\nelected, pursuant to the provisions of subparagraph one of this\nparagraph, to defer commencement of the distribution of his or her\ntax-deferred annuity account to the latest date for distribution\nreferred to in such subparagraph one, the application of any provision\nof the rules and regulations which requires the transfer of his or her\ntax-deferred annuity account from the annuity savings fund to the\nannuity reserve fund and/or from the variable annuity savings fund to\nthe variable annuity reserve fund upon the retirement of such\nparticipant shall be delayed until the commencement of distribution of\nhis or her tax-deferred annuity account pursuant to such retirement and,\nupon such commencement of distribution, such account shall be so\ntransferred in accordance with such provision.\n  (4) Where a participant has made an election pursuant to the\nprovisions of subparagraph one of this paragraph, the distribution of\nthe entire amount in such participant's tax-deferred annuity account,\nincluding any portion of such amount to be distributed pursuant to an\noption for the payment of retirement benefits selected by such\nparticipant pursuant to the rules and regulations or an applicable\nprovision of the retirement and social security law, shall not extend\nbeyond the maximum period permitted by the provisions of section 403(b)\nof the internal revenue code pertaining to the distribution of\ntax-deferred annuities.\n  (d) The rules and regulations may be amended pursuant to the\nprocedures set forth in subdivision two of this section to establish\nrules and regulations governing the borrowing by a participant in the\ntax-deferred annuity program of contributions accumulated in his or her\ntax-deferred annuity account, provided that in establishing and\nadministering such rules and regulations, no action shall be taken that\nwould render the tax-deferred annuity program in violation of section\n403(b) of the internal revenue code.\n  (e) Notwithstanding any other provision of law, or any rule or\nregulation, or the provisions of any retirement board resolution to the\ncontrary:\n  (1) on or after the first business day immediately following the\neffective date of this paragraph, interest shall be allowed at the rate\nof seven percent per annum, compounded annually, on the tax-deferred\naccounts in the annuity savings fund of participants (i) who hold a\nposition represented by the recognized teacher organization for\ncollective bargaining purposes, or (ii) who held such a position at the\ntime they retired or discontinued service with vested rights to a\nretirement allowance and elected to defer commencement of distribution\nof their tax-deferred accounts in accordance with paragraph (c) of this\nsubdivision; and\n  (2) the provisions of subparagraph one of this paragraph shall not\naffect the rate of interest being charged on new loans from the\ntax-deferred annuity program, and the rate of interest that was being\ncharged on such loans immediately prior to the effective date of this\nparagraph shall be used for new loans from the tax-deferred annuity\nprogram made on or after the effective date of this paragraph, unless\nthe rules and regulations governing loans from the tax-deferred annuity\nprogram are amended pursuant to paragraph (d) of this subdivision to\nestablish a different rate of interest applicable to such loans; and\n  (3) where a participant in the tax-deferred annuity program has\nelected to transfer all or a portion of the amount credited to his or\nher tax-deferred account in the annuity savings fund to a tax-deferred\naccount in the variable annuity savings fund, the retirement system\nshall effectuate such transfer as expeditiously as is administratively\nfeasible.\n  * NB There are 2 sub 20's\n  * 20. Eligible rollover distributions. (a) For the purposes of this\nsubdivision, the terms "rules and regulations" and "retirement system"\nshall have the meanings set forth in subparagraphs three and four of\nparagraph (a) of subdivision sixteen of this section.\n  (b) Notwithstanding anything to the contrary contained in section\ntwenty-six of the rules and regulations, in the event that, under the\nterms of this section or the rules and regulations, a person becomes\nentitled to a distribution from the retirement system which constitutes\nan "eligible rollover distribution" within the meaning of paragraph\nthirty-one of subsection a of section four hundred one of the internal\nrevenue code, such distributee may elect, subject to any rules and\nregulations adopted pursuant to paragraph (c) of this subdivision, to\nhave such distribution, or a portion thereof, paid directly to an\n"eligible retirement plan" within the meaning of paragraph thirty-one of\nsubsection a of section four hundred one of the internal revenue code.\n  (c) The retirement board is authorized to adopt such written\nadministrative procedures as it finds to be necessary in administering\nthe provisions of this subdivision, provided that they are not\ninconsistent with the applicable provisions of the internal revenue code\nand the rules and regulations thereunder.\n  * NB There are 2 sub 20's\n  21. Certain distributions and transfers by participants in the\ntax-deferred annuity program. (a) For the purposes of this subdivision:\n  (1) the terms "rules and regulations" and "retirement system" shall\nhave the meanings set forth in subparagraphs three and four of paragraph\n(a) of subdivision sixteen of this section; and\n  (2) the term "tax-deferred annuity program" shall mean the program\nauthorized by section three thousand one hundred nine-A of this chapter\nas set forth in section thirty-three of the rules and regulations of the\nretirement system.\n  (b) (1) Notwithstanding any other provision of law to the contrary, in\nthe event that a person becomes entitled to a distribution from the\ntax-deferred annuity program which constitutes an "eligible rollover\ndistribution" within the meaning of paragraph thirty-one of subsection a\nof section four hundred one of the internal revenue code (as such\nsection is made applicable to the tax-deferred annuity program by\nparagraph ten of subsection b of section four hundred three of the\ninternal revenue code), the person may elect, subject to any rules and\nregulations adopted pursuant to paragraph (c) of this subdivision, to\nhave such distribution, or a portion thereof, paid directly to an\neligible retirement plan within the meaning of paragraph thirty-one of\nsubsection a of section four hundred one of the internal revenue code.\n  (2) Nothing contained in section twenty-six or section thirty-three of\nthe rules and regulations shall be construed to prohibit a participant\nin the tax-deferred annuity program from electing to transfer all or a\nportion of his or her tax-deferred annuity net contributions to another\nannuity contract described in subsection b of section four hundred three\nof the internal revenue code where a non-taxable trustee-to-trustee\ntransfer of tax-deferred annuities is permitted by subsection b of\nsection four hundred three of such code and the applicable rules,\nregulations and rulings thereunder.\n  (c) The retirement board is authorized to adopt such written\nadministrative procedures as it finds to be necessary in administering\nthe provisions of this subdivision provided that they are not\ninconsistent with the applicable provisions of the internal revenue code\nand the rules and regulations thereunder.\n  22. (a) For the purposes of this subdivision, the terms "rules and\nregulations" and "retirement system" shall have the meanings set forth\nin subparagraphs three and four, respectively, of paragraph (a) of\nsubdivision sixteen of this section, and the terms "Tier I member",\n"Tier II member", "education service" and "discontinued member" shall\nhave the meanings set forth in subparagraphs four, five, ten and eleven,\nrespectively, of paragraph (b) of subdivision seventeen of this section,\nand the term "fifty-five-year-increased-service-fraction member" shall\nhave the meaning set forth in paragraph thirty-two of section two of the\nrules and regulations.\n  (b) Notwithstanding any other provision of law, subdivision a of\nsection thirty-two of the rules and regulations shall be deemed to be\namended to provide that any member of the retirement system who:\n  (1) discontinues education service on or after July first, nineteen\nhundred sixty-eight, other than by death, retirement or dismissal; and\n  (2) is a fifty-five-year-increased-service-fraction member at the time\nof such discontinuance; and\n  (3) (i) prior to such discontinuance, completed five or more years of\nallowable service; and\n  (4) does not withdraw his or her accumulated deductions in whole or in\npart; shall have a vested right to receive a deferred retirement\nallowance as provided in section thirty-two of the rules and\nregulations.\n  (c) Nothing contained in paragraph (b) of this subdivision shall\nchange, alter or affect the applicability of the provisions of article\neleven of the retirement and social security law to any Tier II member\nwho becomes a discontinued member pursuant to the provisions of\nparagraph (b) of this subdivision.\n  (d) Notwithstanding any other provision of law, a Tier I discontinued\nmember with ten or more years of credited service in the retirement\nsystem who dies before a retirement benefit becomes payable and who is\notherwise not entitled to a death benefit from the retirement system\nshall be deemed to have died on the last day that he or she was in\nservice upon which his or her membership was based for purposes of\neligibility for the payment of a death benefit pursuant to the\nprovisions of section twenty of the rules and regulations. The death\nbenefit payable in such case shall be one-half of that which would have\nbeen payable had such member died on the last day that service was\nrendered.\n  23. (a) The following terms, as used in this subdivision, shall have\nthe following meanings, unless a different meaning is plainly required\nby the context:\n  (1) "BERS" or "retirement system". The board of education retirement\nsystem of the city of New York established pursuant to the provisions of\nthis section.\n  (2) "BERS rules and regulations". The rules and regulations for the\ngovernment, management and control of BERS adopted pursuant to the\nprovisions of this section.\n  (3) "Retirement board". The board established as the head of the\nretirement system pursuant to sections five and five-a of the BERS rules\nand regulations.\n  (b)(1) In addition to the powers conferred upon it by the BERS rules\nand regulations or by any other provision of law, the retirement board\nshall, on or before April first of each year, establish a budget\nsufficient to fulfill the powers, duties and responsibilities set forth\nin the BERS rules and regulations and any other provision of law which\nsets forth the benefits of members of the retirement system. Said budget\nshall also include the amounts withheld for the purpose of paying the\nexpenses attributable to the tax-deferred annuity program pursuant to\nthe provisions of subdivision b of section thirty-three of the BERS\nrules and regulations, and the amounts deposited in the variable annuity\nexpense fund pursuant to the provisions of subdivision 1 of section\nthirty-six of the BERS rules and regulations. The retirement board\nshall, if necessary, draw upon the assets of the retirement system to\nfund the portion of such budget which is not derived from subdivision b\nof section thirty-three of the BERS rules and regulations and\nsubdivision 1 of section thirty-six of the BERS rules and regulations,\nprovided that such action shall be subject to the provisions of\nsubparagraphs two, three, four and five of this paragraph and paragraphs\n(c), (d), (e) and (f) of this subdivision. The provisions of this\nsubdivision shall not be applicable to the payment of investment\nexpenses pursuant to section 13-705 of the administrative code of the\ncity of New York and nothing contained herein shall be construed as\nabolishing, limiting or modifying any power of the retirement board to\nprovide for the payment of investment expenses pursuant to section\n13-705 of such code.\n  (2) If a budget has not been adopted by the commencement of the new\nfiscal year, the budget for the preceding fiscal year shall be deemed to\nhave been extended for the new fiscal year until such time as a new\nbudget is adopted.\n  (3) Any budget in effect pursuant to subparagraph one or two of this\nparagraph shall be modifiable during such succeeding fiscal year.\n  (4) Notwithstanding any other provision of law, the retirement board\nshall have the power either directly or by delegation to the executive\ndirector of the retirement system to obtain by employment or by contract\nthe goods, property and services necessary to fulfill its powers within\nthe appropriation authorized by the retirement board pursuant to\nsubparagraph one of this paragraph.\n  (5) The provisions of chapter seventeen of the New York city charter\nshall continue to apply to the retirement system and the retirement\nsystem shall constitute an agency for the purposes of such chapter\nseventeen. The retirement board shall not obtain any legal services by\nthe retention of employees or by contract unless the corporation counsel\nshall consent thereto.\n  (6) All contracts for goods or services entered into by the retirement\nsystem shall be procured as described for school districts in article\nfive-A of the general municipal law. The retirement board shall be the\ngoverning body as described in such law.\n  (7) The provisions of subparagraphs four and six of this paragraph\nshall not apply to any contract or contracts relating to the variable\nannuity funds and tax-deferred annuity program pursuant to sections\nthirty-three and thirty-six of the BERS rules and regulations.\n  (c) Notwithstanding the provisions of paragraph (a) of subdivision one\nof this section or any other provision of law or any provision of the\nBERS rules and regulations to the contrary, any resolution of the\nretirement board which establishes a budget or modifies a budget\npursuant to the provisions of subparagraph one or three of paragraph (b)\nof this subdivision shall require the concurrence of at least one\nretirement board member who is appointed to the board of education by\nthe mayor of the city of New York, and as otherwise required by law. The\nprovisions of this paragraph shall apply only to resolutions of the\nretirement board which establish or modify a budget pursuant to this\nsubdivision, and nothing contained in this paragraph shall be construed\nto apply to any other vote of the retirement board. No assets of the\nretirement system shall be drawn upon pursuant to the provisions of\nsubparagraph one of paragraph (b) of this subdivision unless authorized\nby a budget or budget modification established by a resolution of the\nretirement board.\n  (d) Employment by the retirement system shall constitute education\nservice for the purposes of the BERS rules and regulations and any other\nprovision of law which governs the crediting of service for members of\nthe retirement system; provided, however, that nothing contained herein\nshall be construed as granting membership rights in the retirement\nsystem to a contractor of the retirement system or such contractor's\nemployees.\n  (e) Whenever the assets of the retirement system are drawn upon\npursuant to the provisions of subparagraph one of paragraph (b) of this\nsubdivision, all monies so withdrawn shall be made a charge to be paid\nby each participating employer otherwise required to make contributions\nto the retirement system no later than the end of the fiscal year next\nsucceeding the time period during which such assets were drawn upon,\nprovided, however, that where such charge is for assets so withdrawn in\nfiscal year two thousand four--two thousand five or in any fiscal year\nthereafter, such charge shall be paid by each such participating\nemployer no later than the end of the second fiscal year succeeding the\ntime period during which such assets were drawn upon. The actuary for\nthe retirement system shall calculate and allocate to each such\nparticipating employer its share of such charge by multiplying such\ncharge by a fraction, the numerator of which shall consist of the total\nsalaries of the employees of each participating employer as of the June\nthirtieth succeeding the withdrawal of assets and the denominator of\nwhich shall consist of the total salaries of members of the retirement\nsystem as of such June thirtieth. All charges to be paid pursuant to\nthis subdivision shall be paid at the regular rate of interest utilized\nby the actuary in determining employer contributions to the retirement\nsystem pursuant to the provisions of paragraph two of subdivision b of\nsection 13-638.2 of the administrative code of the city of New York.\n  (f) The funds withdrawn from the retirement system shall not be\nutilized for any purpose other than the budget established by the\nretirement board. All expenditures of the retirement system shall be\nsubject to audit by the comptroller of the city of New York, who may\nmake recommendations, including but not limited to, procedures designed\nto improve accounting and expenditure control. All expenditures of the\nretirement system shall be reported to the mayor's office of management\nand budget and the budgetary office of all participating employers.\n  (g) The executive director of the retirement system, who shall be\nappointed by the retirement board, shall perform such duties as may be\nconferred upon him or her by the chairperson of the retirement board, by\nresolution adopted by the retirement board, or by law.\n  * 24. (a) The following terms, as used in this subdivision, shall have\nthe following meanings, unless a different meaning is plainly required\nby the context:\n  (1) "Board of education". The board of education of a city.\n  (2) "City". A city having a population of one million or more.\n  (3) "Retirement system". The board of education retirement system\nestablished pursuant to the provisions of this section in a city.\n  (4) "Rules and regulations". The rules and regulations for the\ngovernment, management and control of the retirement system adopted\npursuant to this section.\n  (5) "Retirement board". The retirement board of the retirement system\nprovided for in section five-a of the rules and regulations.\n  (6) "Retirement benefits". Benefits payable to a beneficiary by the\nretirement system which are subject to the limitations imposed by\nsection 415(b) of the Internal Revenue Code.\n  (7) "Beneficiary". A person who is receiving retirement benefits from\nthe retirement system.\n  (8) "Excess benefit plan". The excess benefit plan established by this\nsubdivision for the sole purpose of paying benefits as permitted under\nsection 415(m) of the Internal Revenue Code.\n  (9) "Eligible participant". A beneficiary who is entitled to\nreplacement benefits from the excess benefit plan for a plan year in\naccordance with paragraphs (d) and (e) of this subdivision.\n  (10) "Replacement benefits". The benefits payable by the excess\nbenefit plan to an eligible participant as determined pursuant to\nparagraph (e) of this subdivision.\n  (11) "Internal Revenue Code". The Federal Internal Revenue Code of\n1986, as amended.\n  (12) "Plan year". The limitation year of the retirement system as\nprovided in section six hundred twenty of the retirement and social\nsecurity law.\n  (b) There is hereby established an excess benefit plan, the sole\npurpose of which shall be to provide replacement benefits, as permitted\nby section 415(m) of the Internal Revenue Code, to beneficiaries whose\nannual retirement benefits have been reduced because such benefits\nexceed the limitations imposed by section 415(b) of the Internal Revenue\nCode. The excess benefit plan shall be administered by the retirement\nboard.\n  (c) There is hereby established a fund to be known as the excess\nbenefit fund which shall be maintained for the sole purpose of providing\nreplacement benefits to eligible participants in the excess benefit plan\nestablished by this subdivision, as permitted under section 415(m) of\nthe Internal Revenue Code. Such fund shall consist of such employer\ncontributions as shall be made thereto pursuant to paragraph (f) of this\nsubdivision. Such contributions to the excess benefit fund shall be held\nseparate and apart from the assets held by the other funds of the\nretirement system, provided, however, that the assets of the excess\nbenefit fund may be invested with the other retirement system assets,\nbut such excess benefit fund assets shall be accounted for separately\nfrom the other retirement system assets.\n  (d) All beneficiaries of the retirement system whose retirement\nbenefits for a plan year are being reduced because of section 415(b) of\nthe Internal Revenue Code shall be eligible participants in the excess\nbenefit plan for that plan year. Participation in the excess benefit\nplan shall be determined for each plan year. No beneficiary of the\nretirement system shall be an eligible participant in the excess benefit\nplan for any plan year for which his or her retirement benefits are not\nreduced because of section 415(b) of the Internal Revenue Code.\n  (e)(1) For each plan year in which a beneficiary is an eligible\nparticipant in the excess benefit plan, such eligible participant shall\nreceive replacement benefits from the excess benefit plan equal to the\ndifference between the full amount of the retirement benefits otherwise\npayable to the eligible participant for that plan year prior to any\nreduction because of section 415(b) of the Internal Revenue Code, and\nthe retirement benefits payable to the eligible participant for that\nplan year as reduced because of section 415(b) of the Internal Revenue\nCode. No replacement benefits for any plan year shall be paid pursuant\nto this paragraph to any beneficiary who is not receiving retirement\nbenefits from the retirement system for that plan year.\n  (2) Replacement benefits pursuant to this subdivision shall be paid at\nthe same time and in the same manner as the retirement benefits which\nare being replaced. At no time shall an eligible participant be\npermitted directly or indirectly to defer compensation under the excess\nbenefit plan.\n  (f)(1) The required employer contributions to the excess benefit fund\nfor each plan year shall be an amount, as determined by the actuary,\nwhich is necessary to pay the total amount of replacement benefits that\nare payable pursuant to this subdivision to eligible participants for\nthat plan year.\n  (2) Such required employer contributions shall be paid into the excess\nbenefit fund from an allocation of the employer contribution amounts\npaid by the board of education and other public employers pursuant to\nthe applicable provisions of subdivision sixteen of this section and\nother applicable provisions of law. Such allocation of employer\ncontribution amounts shall be paid into the excess benefit fund at such\ntimes and in such amounts as determined by the actuary.\n  (3) The benefit liabilities of the excess benefit plan shall be funded\non a plan year to plan year basis, provided, however, that any employer\ncontributions to the excess benefit fund, including any investment\nearnings on such contributions, which are not used to pay replacement\nbenefits for the current plan year shall be used to pay replacement\nbenefits for future plan years.\n  (g) The right of an eligible participant to receive replacement\nbenefits pursuant to this subdivision, and the replacement benefits\nreceived pursuant to this subdivision, shall be exempt from any state or\nmunicipal tax, and shall not be subject to execution, garnishment,\nattachment or any other process whatsoever, and shall be unassignable,\nexcept as otherwise specifically provided for benefits payable by the\nretirement system.\n  * NB There are 2 sb 24's\n  * 24. Notwithstanding any provisions of the rules or regulations or\nany other provision of law to the contrary, in a city having a\npopulation of one million or more, the board of education shall adopt a\nresolution amending the provisions governing any retirement system\nadopted pursuant to or subject to the provisions of this section to the\nextent necessary to grant a retired member the right, at any time after\nhis or her retirement, to execute and file a dues deduction\nauthorization card with the member's retirement system authorizing the\npayment of voluntary contributions to the political committee, as\ndefined in section fourteen-one hundred of the election law, of such\nmember's employee organization; (or a retirees' association chartered by\nthe member's employee organization) provided such organization is\ncertified or recognized pursuant to article fourteen of the civil\nservice law as the representative of employees in the negotiation unit\nin which such member was employed. Such authorization shall continue in\neffect until revoked in writing by such member. The comptroller shall\ndetermine the cost of administrative deductions for voluntary\ncontributions to the political committees; and the cost incurred by the\nretirement system in administering such contributions shall be paid from\nthe funds of the political committee.\n  * NB There are 2 sb 24's\n  25. (a) For the purposes of this subdivision, the terms "rules and\nregulations" and "retirement system" shall have the meanings set forth\nin subparagraphs three and four, respectively, of paragraph (a) of\nsubdivision sixteen of this section.\n  (b) Notwithstanding any other provision of law to the contrary, the\nrules and regulations adopted pursuant to this section shall be deemed\nto be amended to provide that a member of the retirement system shall be\ndeemed to have died as the natural and proximate result of an accident\nsustained in the performance of duty upon which his or her membership is\nbased, and not as a result of willful negligence on his or her part,\nprovided that such member was in active service upon which his or her\nmembership is based at the time that such member was ordered to active\nduty pursuant to Title 10 of the United States Code, with the armed\nforces of the United States or to service in the uniformed services\npursuant to Chapter 43 of Title 38 of the United States Code, and such\nmember died while on such active duty or service in the uniformed\nservices on or after June fourteenth, two thousand five while serving on\nsuch active military duty or in the uniformed services.\n  (c) Notwithstanding any other provision of law to the contrary, the\nrules and regulations adopted pursuant to this section shall be deemed\nto be amended to provide that any requirement that applications for\naccidental disability be filed within a limited time period after the\nhappening of such accident shall not apply to a vested member\nincapacitated as a result of a qualifying World Trade Center condition\nas defined in section two of the retirement and social security law.\n  (d)(1)(i) Notwithstanding any other provision of law to the contrary,\nthe rules and regulations adopted pursuant to this section shall be\ndeemed to be amended to provide that if any condition or impairment of\nhealth is caused by a qualifying World Trade Center condition as defined\nin section two of the retirement and social security law, it shall be\npresumptive evidence that it was incurred in the performance and\ndischarge of duty and the natural and proximate result of an accident\nnot caused by such member's own willful negligence, unless the contrary\nbe proved by competent evidence.\n  (ii) The New York city board of education retirement board is hereby\nauthorized to promulgate rules and regulations to implement the\nprovisions of this paragraph.\n  (2)(i) Notwithstanding any other provision of law to the contrary, the\nrules and regulations adopted pursuant to this section shall be deemed\nto be amended to provide that if a member who participated in World\nTrade Center rescue, recovery or cleanup operations as defined in\nsection two of the retirement and social security law, and subsequently\nretired on a service retirement, an ordinary disability retirement, an\naccidental disability retirement, a performance of duty disability\nretirement, or was separated from service with a vested right to\ndeferred payability of a retirement allowance and subsequent to such\nretirement or separation is determined by the head of the retirement\nsystem or applicable medical board to have a qualifying World Trade\nCenter condition, as defined in section two of the retirement and social\nsecurity law, upon such determination by the New York city board of\neducation retirement board or applicable medical board, it shall be\npresumed that such disability was incurred in the performance and\ndischarge of duty as the natural and proximate result of an accident not\ncaused by such member's own willful negligence, and that the member\nwould have been physically or mentally incapacitated for the performance\nand discharge of duty of the position from which he or she retired or\nvested had the condition been known and fully developed at the time of\nthe member's retirement or separation from service with vested rights,\nunless the contrary is proven by competent evidence.\n  (ii) The New York city board of education retirement board shall\nconsider a reclassification of the member's retirement or vesting as an\naccidental disability retirement effective as of the date of such\nreclassification.\n  (iii) Such member's retirement option shall not be changed as a result\nof such reclassification.\n  (iv) The member's former employer at the time of the member's\nretirement shall have an opportunity to be heard on the member's\napplication for reclassification by the New York city board of education\nretirement board according to procedures developed by the New York city\nboard of education retirement board.\n  (v) The New York city board of education retirement board is hereby\nauthorized to promulgate rules and regulations to implement the\nprovisions of this paragraph.\n  (e) Notwithstanding any other provision of law to the contrary, the\nrules and regulations adopted pursuant to this section shall be deemed\nto be amended to provide that if a retiree or vestee who: (1) has met\nthe criteria of paragraph (d) of this subdivision and retired on a\nservice or disability retirement, would have met the criteria if not\nalready retired on an accidental disability, or was separated from\nservice with a vested right to deferred payability of a retirement\nallowance; and (2) has not been retired for more than twenty-five years;\nand (3) dies from a qualifying World Trade Center condition, as defined\nin section two of the retirement and social security law, as determined\nby the applicable head of the retirement system or applicable medical\nboard, then unless the contrary be proven by competent evidence, such\nretiree or vestee shall be deemed to have died as a natural and\nproximate result of an accident sustained in the performance of duty and\nnot as a result of willful negligence on his or her part. Such retiree's\nor vestee's eligible beneficiary, as set forth in title twenty-one of\nthe rules and regulation, shall be entitled to an accidental death\nbenefit as provided by title twenty-one of the rules and regulations,\nhowever, for the purposes of determining the salary base upon which the\naccidental death benefit is calculated, the retiree or vestee shall be\ndeemed to have died on the date of his or her retirement or separation\nfrom service with vested rights. Upon the retiree's or vestee's death,\nthe eligible beneficiary shall make a written application to the head of\nthe retirement system within the time for filing an application for an\naccidental death benefit as set forth in title twenty-one of the rules\nand regulations requesting conversion of such retiree's service, vested\nright or disability retirement benefit to an accidental death benefit.\nAt the time of such conversion, the eligible beneficiary shall\nrelinquish all rights to the prospective benefits payable under the\nservice or disability retirement benefit, or vested right to such\nbenefit, including any post-retirement death benefits, since the\nretiree's or vestee's death. If the eligible beneficiary is not the only\nbeneficiary receiving or entitled to receive a benefit under the service\nor disability retirement benefit (including, but not limited to,\npost-retirement death benefits or benefits paid or payable pursuant to\nthe retiree's option selection), or that will be eligible under the\nvested right the accidental death benefit payments to the eligible\nbeneficiary will be reduced by any amounts paid or payable to any other\nbeneficiary.\n  (f) Notwithstanding any other provision of law to the contrary, the\nrules and regulations adopted pursuant to this section shall be deemed\nto be amended to provide that if a member who: (1) has met the criteria\nof paragraph (d) of this subdivision; (2) dies in active service or\nafter separating from service with a vested right to deferred payability\nof a retirement allowance, but prior to the payability of that\nretirement allowance; and (3) dies from a qualifying World Trade Center\ncondition, as defined in section two of the retirement and social\nsecurity law, as determined by the applicable head of the retirement\nsystem or applicable medical board, then unless the contrary be proven\nby competent evidence, such member shall be deemed to have died as a\nnatural and proximate result of an accident sustained in the performance\nof duty and not as a result of willful negligence on his or her part.\nSuch member's eligible beneficiary, as set forth in title twenty-one of\nthe rules and regulations shall be entitled to an accidental death\nbenefit provided he or she makes written application to the head of the\nretirement system as set forth in title twenty-one of the rules and\nregulations.\n