2023 New York Laws › EDN - Education › Title 2 - School District Organization › Article 52 - City School Districts of Cities With One Hundred Twenty-Five Thousand Inhabitants or More › 2575 - Retirement of Employees of Board of Education.

§ 2575. Retirement  of  employees  of  board  of education. 1. (a) The
board of education of  a  city  school  district  of  a  city  having  a
population of one hundred thousand or more shall have power to establish
a retirement system for all civil employees permanently employed by said
board  other  than  superintendents  and teachers who may now be retired
under the provisions of other retirement laws. In any such city in which
there is a bureau of compulsory  education,  school  census,  and  child
welfare  established  under the provisions of this chapter, all persons,
except for attendance teachers  and  specially  certificated  attendance
officers who are first employed by a board of education of a city having
a  population  of  one  million  or  more, beginning on the first day of
September, nineteen hundred sixty-eight,  and  further  except  for  the
director   of   attendance,  assistant  director  of  attendance,  chief
attendance  officer,  division  supervising  attendance   officer,   and
district  supervising  attendance  officer, supervisors of school social
workers, who were first employed by a  board  of  education  of  a  city
having  a  population of one million or more, beginning on the first day
of September nineteen hundred sixty-nine, of  which  such  a  bureau  of
compulsory education, school census, and child welfare consists shall be
members  of  the  retirement  system  created  in  accordance  with  the
provisions of this section, provided that any such  person  who  on  May
fourth,  nineteen hundred twenty-six, was a member of another retirement
system in such city may continue such membership so long as  he  or  she
holds  an  office  or position in such bureau. Transfer of membership of
any such persons from another retirement system to a  retirement  system
as  herein  provided  shall be made in accordance with the provisions of
section fifty-nine of the civil service law. The board of  education  of
such  city  shall  adopt  appropriate  rules  and  regulations  for  the
government, management and control of the retirement of said  employees;
except  that  in  regard  to  the  actions  of  the governing board of a
retirement  system  governed  by  such  rules   and   regulations,   the
concurrence   of   one  employee  representative  and  one  non-employee
representative shall be necessary for an act of such  board,  and  there
shall  be  no  fewer  than  two  employee representatives of such board.
Before they become effective such rules and regulations must be approved
by the board of estimate, or the board of estimate and apportionment  in
a  city  having  such  body,  and  in a city not having such body by the
common council or such other officers or bodies as have  the  management
and control of financial affairs similar to that exercised by such board
of  estimate  or  board  of  estimate  and  apportionment.  The board of
estimate or the board of estimate and apportionment  in  a  city  having
such  body,  and  in  other cities the officers or bodies performing the
functions similar to those of a board of estimate or a board of estimate
and apportionment shall appropriate annually the sum  necessary  to  pay
the  expenses  of the administration of this section, except that in the
city of New York such appropriations shall be made pursuant  to  chapter
six  of  the New York city charter, and also to pay such pensions to the
employees herein described as they shall be entitled to receive annually
under the rules and regulations prescribed by the board of education and
approved by the  said  board  of  estimate  or  board  of  estimate  and
apportionment or other authorities.
(b) (1) The rules and regulations prescribed by the board of education
and  approved  by  the  board  of  estimate or the board of estimate and
apportionment or other authorities named herein shall  provide  for  the
annual  payment  of a pension which shall be a per centum of the average
annual personal compensation of  an  employee  for  the  five  years  of
service  immediately  preceding  his  retirement,  except  as  otherwise
provided in subparagraph two of this paragraph (b).
(2) Such rules and regulations so prescribed and approved with respect
to any such retirement system established in the city school district of
a city having a population of one million or more may  provide  for  the
annual  payment  of  a  pension  which  shall  be  a  per  centum of the
compensation  of  an employee during any period designated in such rules
and regulations; provided, however, that such period shall in  no  event
be less than one year or more than five years.
2.  In  a city having a population of one million or more and having a
teachers'  retirement  board,  changes,   alterations,   amendments   or
modifications   in   the  rules  and  regulations  established  for  the
administration of this section shall be adopted as follows:
The board of education of said city may adopt and  shall  submit  such
changes,  alterations,  amendments or modifications, hereinafter in this
subdivision referred to as changes, to said teachers'  retirement  board
for  approval.  Said teachers' retirement board shall within thirty days
after the submission to it of such changes transmit  to  said  board  of
education  a statement in writing setting forth which of such changes it
approves and which it disapproves, if any,  and  the  reasons  for  such
disapproval.  If said teachers' retirement board shall approve of all of
such changes, then such changes shall immediately become  effective  and
in full force and operation.
If  said  teachers' retirement board shall disapprove of all or any of
such  changes  and  if  said  board  of  education  and  said  teachers'
retirement  board within thirty days thereafter shall fail to agree upon
changes in place of the changes so disapproved, then the  changes  shall
be  submitted by said board of education within ten days after the lapse
of said thirty days to the commissioner of education who shall have full
power to approve, alter  or  modify  the  changes  disapproved  by  said
teachers'  retirement  board,  and  the  action  of  the commissioner of
education shall be final, and thereupon the  changes  approved  by  said
teachers'  retirement  board  and  the  changes  as approved, altered or
modified by the  commissioner  of  education  shall  immediately  become
effective and in full force and operation.
Should  said  teachers'  retirement board fail either to approve or to
disapprove all or  any  of  such  changes  submitted  to  it  as  herein
provided, then such changes not approved or not disapproved shall at the
expiration  of the thirty days immediately following their submission to
said teachers' retirement board be deemed to have been approved by  said
teachers'  retirement  board  and  such changes shall immediately become
effective and in full force and operation.
Said teachers' retirement board  and  the  trustees  of  any  variable
annuity  funds  created  by  said rules and regulations may negotiate an
agreement whereby said variable annuity funds are commonly invested with
the variable annuity funds of said teachers' retirement board.  In  such
event,  final  authority  for  investing  such funds shall rest with the
teachers' retirement board  for  the  period  of  such  agreement.  Such
agreement  shall  be  for  a  period not to exceed five years but may be
renewed.
3.  Notwithstanding  any  provision  of  this  section  or  any  other
provision  of  law, in a city having a population of one million or more
the board of education is authorized to adopt a resolution amending  the
provisions  governing  any  retirement  system  adopted  pursuant  to or
subject to the provisions of this section to the extent necessary to put
into  effect   a   pensions-providing-for-increased-take-home-pay   plan
analogous  to  that  authorized  by  a  chapter  of the laws of nineteen
hundred sixty, entitled "An act to amend the administrative code of  the
city   of   New  York,  in  relation  to  authorizing  the  addition  of
pensions-providing-for-increased-take-home-pay and death  benefits  with

respect  to  the  New  York  city  employees'  retirement  system." Such
resolution of the board of education, however,  shall  not  take  effect
until and unless it is approved by the board of estimate of such city.
4.  Notwithstanding  any  provision  of  this  section  or  any  other
provision of law, in a city having a population of one million  or  more
the  board of education is authorized to adopt a resolution amending the
provisions governing  any  retirement  system  adopted  pursuant  to  or
subject to the provisions of this section to the extent necessary to put
into   effect   a   pensions-providing-for-increased-take-home-pay  plan
analogous to that authorized by  a  chapter  of  the  laws  of  nineteen
hundred  sixty-two, entitled "An act to amend the administrative code of
the city of New York, in relation to authorizing pensions-providing-for-
increased-take-home-pay and death benefits with respect to the New  York
city  employees'  retirement  system."  Such  resolution of the board of
education, however, shall  not  take  effect  until  and  unless  it  is
approved by the board of estimate of such city.
5.  Notwithstanding  any  provision  of  this  section  or  any  other
provision of law, in a city having a population of one million  or  more
the  board of education is authorized to adopt a resolution amending the
provisions governing  any  retirement  system  adopted  pursuant  to  or
subject to the provisions of this section to the extent necessary to put
into  effect  a  pensions-providing-for-increased-take-home-pay plan for
the  fiscal  year   nineteen   hundred   sixty-three--nineteen   hundred
sixty-four  analogous  to  that  authorized for the fiscal year nineteen
hundred sixty-two--nineteen hundred sixty-three by chapter seven hundred
eighty-seven of the laws of nineteen hundred sixty-two. Such  resolution
of  the  board  of  education,  however, shall not take effect until and
unless it is approved by the mayor of such city.
6.  Notwithstanding  any  provision  of  this  section  or  any  other
provision  of law, in a city having a population of one million or more,
the board of education is authorized to adopt a resolution amending  the
provisions  governing  any  retirement  system  adopted  pursuant  to or
subject to the provisions of this section to the extent necessary to put
into effect a  pensions-providing-for-increased-take-home-pay  plan  for
the fiscal year nineteen hundred sixty-four--nineteen hundred sixty-five
analogous  to  that  authorized  for  the  fiscal  year nineteen hundred
sixty-three--nineteen  hundred  sixty-four  by  chapter   five   hundred
seventeen  of  the laws of nineteen hundred sixty-three. Such resolution
of the board of education, however, shall  not  take  effect  until  and
unless it is approved by the mayor of such city.
7.  Notwithstanding  any  provision  of  this  section  or  any  other
provision of law, in a city having a population of one million or  more,
the  board of education is authorized to adopt a resolution amending the
provisions governing  any  retirement  system  adopted  pursuant  to  or
subject to the provisions of this section to the extent necessary to put
into  effect  a  pensions-providing-for-increased-take-home-pay plan for
the fiscal year nineteen hundred sixty-five--nineteen hundred  sixty-six
analogous  to  that  authorized  for  the  fiscal  year nineteen hundred
sixty-two--nineteen  hundred  sixty-three  by  chapter   seven   hundred
eighty-nine  of  the laws of nineteen hundred sixty-two. Such resolution
of the board of education, however, shall  not  take  effect  until  and
unless it is approved by the mayor of such city.
8.  Notwithstanding  any  provision  of  this  section  or  any  other
provision of law, in a city having a population of one million or  more,
the  board of education is authorized to adopt a resolution amending the
provisions governing  any  retirement  system  adopted  pursuant  to  or
subject to the provisions of this section to the extent necessary to put
into  effect  a  pensions-providing-for-increased-take-home-pay plan for

the fiscal year nineteen hundred sixty-six--nineteen hundred sixty-seven
analogous to that  authorized  for  the  fiscal  year  nineteen  hundred
sixty-two--nineteen   hundred   sixty-three  by  chapter  seven  hundred
eighty-nine  of  the laws of nineteen hundred sixty-two. Such resolution
of the board of education, however, shall  not  take  effect  until  and
unless it is approved by the mayor of such city.
9.  Notwithstanding  any  provision  of  this  section  or  any  other
provision of law, in a city having a population of one million or  more,
the  board of education is authorized to adopt a resolution amending the
provisions governing  any  retirement  system  adopted  pursuant  to  or
subject to the provisions of this section to the extent necessary to put
into  effect  a  pensions-providing-for-increased-take-home-pay plan for
the  fiscal   year   nineteen   hundred   sixty-seven-nineteen   hundred
sixty-eight  analogous  to  that authorized for the fiscal year nineteen
hundred sixty-two-nineteen hundred sixty-three by chapter seven  hundred
eighty-nine  of  the laws of nineteen hundred sixty-two. Such resolution
of the board of education, however, shall  not  take  effect  until  and
unless it is approved by the mayor of such city.
10.  Notwithstanding  any  provision  of  this  section  or  any other
provision of law, in a city having a population of one million or  more,
the  board of education is authorized to adopt a resolution amending the
provisions governing  any  retirement  system  adopted  pursuant  to  or
subject to the provisions of this section to the extent necessary to put
into  effect  a  pension-providing-for-increased-take-home-pay  plan, in
addition to the plan authorized by subdivision nine of this section, for
members who are employees of the board of education  in  the  titles  of
attendance  teacher,  attendance  officer,  attendance  teacher (Spanish
speaking),  auxiliary  attendance  teacher,  or   auxiliary   attendance
officer,  for  the  period September first, nineteen hundred sixty-seven
through June thirtieth, nineteen hundred sixty-eight, analogous to  that
authorized  for  the  fiscal  year  nineteen hundred sixty-two--nineteen
hundred sixty-three by chapter seven hundred eighty-nine of the laws  of
nineteen  hundred sixty-two, provided, however, that the reduced rate of
contribution factor to be used on computing the reduction  provided  for
in the resolution authorized by this subdivision in the contributions of
such  members  may  be designated by the board of education as three per
centum.   Such  resolution  may  contain  provisions  for  a  period  of
retroactive  applicability  analogous  to  those  contained in paragraph
thirteen of subdivision j of section B3--36.1 of the administrative code
of the city of New York, as such section  was  added  by  chapter  seven
hundred  eighty-seven  of  the  laws of nineteen hundred sixty-two. Such
resolution may also provide that the amount of  the  reduction  provided
for  in  the resolution in the contributions of any members to whom such
resolution  applies,  attributable  to   the   period   of   retroactive
applicability of such resolution shall be refunded by the system without
interest.  Such resolution of the board of education, however, shall not
take effect until and unless it is approved by the mayor of such city.
11. Notwithstanding  any  provision  of  this  section  or  any  other
provision  of law, in a city having a population of one million or more,
the board of education is authorized to adopt a resolution amending  the
provisions  governing  any  retirement  system  adopted  pursuant  to or
subject to the provisions of this section to the extent necessary to put
into effect a  pensions-providing-for-increased-take-home-pay  plan  for
the   fiscal   year   nineteen   hundred  sixty-eight--nineteen  hundred
sixty-nine analogous to that authorized for  the  fiscal  year  nineteen
hundred sixty-two--nineteen hundred sixty-three by chapter seven hundred
eighty-nine  of  the  laws  of  nineteen  hundred  sixty-two,  provided,
however, that
(1) the reduced rate of contribution factor to be  used  in  computing
the reduction in contributions of members who are employees of the board
of  education  in  the titles of attendance teacher, attendance officer,
attendance teacher (spanish speaking), auxiliary attendance teacher, may
be  designated  by  the  board  of  education  as  eight per centum, and
provided further, however, that
(2) the reduced rate of contribution factor to be  used  in  computing
the  reductions of any member who is eligible for the benefits analogous
to the career pension plan of the New York  city  employees'  retirement
system,  if  a bill entitled "An act to amend the administrative code of
the city of New York and the military  law,  in  relation  to  providing
additional  rights, privileges, and benefits for members of the New York
city employees' retirement system and establishing  an  optional  career
pension  plan  for  certain of such members" is enacted into law, and if
the board of education  adopts  a  resolution  amending  the  provisions
governing  any  retirement  system adopted pursuant to or subject to the
provisions of this section to provide a plan analogous  to  such  career
pension  plan,  regardless of whether such member elects the benefits of
such analogous plan, may be designated by the board of education as four
per centum. Such resolution of the board of  education,  however,  shall
not  take  effect  until  and unless it is approved by the mayor of such
city.
12. Notwithstanding any  provisions  of  this  section  or  any  other
provision  of law, in a city having a population of one million or more,
the board of education is authorized to adopt a resolution amending  the
provisions  governing  any  retirement  system  adopted  pursuant  to or
subject to the provisions of this section to the extent necessary to put
into effect a  pensions-providing-for-increased-take-home-pay  plan  for
the  fiscal  year  nineteen hundred sixty-nine--nineteen hundred seventy
analogous to that  authorized  for  the  fiscal  year  nineteen  hundred
sixty-two--nineteen   hundred   sixty-three  by  chapter  seven  hundred
eighty-nine  of  the  laws  of  nineteen  hundred  sixty-two,  provided,
however, that
(1)  the  reduced-rate-of-contribution  factor to be used in computing
the reduction in contributions of members who are employees of the board
of education in the titles of attendance  teacher,  attendance  officer,
attendance teacher (spanish speaking), auxiliary attendance teacher, may
be designated by the board of education as eight percentum, and provided
further, however, that
(2)  the  reduced-rate-of-contribution  factor to be used in computing
the reductions of any member who is a career pension plan member or  who
is  eligible  to  elect to become a career pension plan member under the
provisions governing  any  retirement  system  adopted  pursuant  to  or
subject  to  the  provisions of this section, regardless of whether such
member makes such election, may be designated by the board of  education
as four percentum, and provided further, however, that
(3)  the  reduced-rate-of-contribution  factor to be used in computing
the reductions of any member other than a member mentioned in paragraphs
one and two of this subdivision twelve may be designated by the board of
education as five per centum, and provided further, however, that
(4) such resolution of the board of education shall  not  take  effect
until and unless it is approved by the mayor of such city.
13.  Notwithstanding  any  provisions  of  this  section  or any other
provision of law to the contrary, in a city having a population  of  one
million  or  more,  the  board  of  education  is  authorized to adopt a
resolution amending  the  provisions  governing  any  retirement  system
adopted  pursuant to or subject to the provisions of this section to the
extent necessary to put into effect a  pensions-providing-for-increased-

take-home-pay    plan    for    the   fiscal   year   nineteen   hundred
seventy--nineteen hundred seventy-one analogous to that  authorized  for
the fiscal year nineteen hundred sixty-two--nineteen hundred sixty-three
by  chapter  seven  hundred  eighty-nine of the laws of nineteen hundred
sixty-two, provided, however, that
(1) the reduced-rate-of-contribution factor to be  used  in  computing
the  reductions of any member who is a career pension plan member or who
is eligible to elect to become a career pension plan  member  under  the
provisions  governing  any  retirement  system  adopted  pursuant  to or
subject to the provisions of this section, regardless  of  whether  such
member  makes such election, may be designated by the board of education
as four percentum, and provided further, however, that
(2) the reduced-rate-of-contribution factor to be  used  in  computing
the  reductions of any member other than a member mentioned in paragraph
one of this subdivision thirteen may  be  designated  by  the  board  of
education as five per centum, and provided further, however, that
(3)  such  resolution  of the board of education shall not take effect
until and unless it is approved by the mayor of such city.
14. (1) In the event that:
(a) a bill entitled "An act to amend the administrative  code  of  the
city  of  New  York  and  chapter eight hundred seventeen of the laws of
nineteen  hundred  sixty-nine,  entitled,   'An   act   to   amend   the
administrative  code  of  the city of New York, in relation to providing
additional rights, privileges and benefits for members of the  New  York
city employees' retirement system who are career pension plan members or
fifty-five-year-increased-service-fraction   members,  and  for  certain
beneficiaries of such system', in relation to establishing a new  career
pension  plan  for  certain  members  of  the  New  York city employees'
retirement system" is enacted into law; and
(b) The  provisions  which  govern  a  retirement  system  established
pursuant  to  this  section  with respect to the board of education of a
city having a population of one million or more and which  were  adopted
pursuant  or  subject to this section are amended pursuant or subject to
this section so that such provisions include a retirement plan analogous
to that set forth in such  bill;  no  plan  for  pensions-providing-for-
increased-take-home-pay  shall  be  adopted for the fiscal year nineteen
hundred seventy-one--nineteen hundred seventy-two with  respect  to  the
members of such retirement system.
(2)  In  the event that such bill referred to in paragraph one of this
subdivision fourteen is not enacted into law, such  board  of  education
referred   to   in  paragraph  one  of  this  subdivision  fourteen,  is
authorized, notwithstanding any provision of this section or  any  other
provision  of  law  to  the contrary, to adopt a resolution amending the
provisions governing such retirement system adopted pursuant or  subject
to  the  provisions  of this section to the extent necessary to put into
effect a  pensions-providing-for-increased-take-home-pay  plan  for  the
fiscal  year  nineteen hundred seventy-one--nineteen hundred seventy-two
analogous to that  authorized  for  the  fiscal  year  nineteen  hundred
sixty-two--nineteen   hundred   sixty-three  by  chapter  seven  hundred
eighty-nine  of  the  laws  of  nineteen  hundred  sixty-two,  provided,
however, that
(a)  the  reduced-rate-of-contribution  factor to be used in computing
the reduction in  contributions  of  members  under  such  plan  may  be
designated by the board of education to be four per centum, and provided
further, however, that
(b)  such  resolution  of the board of education shall not take effect
unless and until it is approved by the mayor of such city.
15. (1) In the event that:
(a) a bill entitled "An act to amend the administrative  code  of  the
city  of  New  York  and  chapter eight hundred seventeen of the laws of
nineteen  hundred  sixty-nine,  entitled,   'An   act   to   amend   the
administrative  code  of  the city of New York, in relation to providing
additional  rights,  privileges and benefits for members of the New York
city employees' retirement system who are career pension plan members or
fifty-five-year-increased-service-fraction  members,  and  for   certain
beneficiaries  of such system', in relation to establishing a new career
pension plan for  certain  members  of  the  New  York  city  employees'
retirement system" is enacted into law; and
(b)  the  provisions  which  govern  a  retirement  system established
pursuant to this section with respect to the board  of  education  of  a
city  having  a population of one million or more and which were adopted
pursuant or subject to this section are amended pursuant or  subject  to
this section so that such provisions include a retirement plan analogous
to that set forth in such bill;
no  plan  for  pensions-providing-for-increased-take-home-pay  shall  be
adopted for  the  fiscal  year  nineteen  hundred  seventy-two--nineteen
hundred  seventy-three  with  respect  to the members of such retirement
system.
(2) In the event that such bill referred to in paragraph one  of  this
subdivision  fifteen  is  not  enacted into law, such board of education
referred to in paragraph one of this subdivision fifteen, is authorized,
notwithstanding any provision of this section or any other provision  of
law  to  the  contrary,  to  adopt  a resolution amending the provisions
governing such retirement system adopted  pursuant  or  subject  to  the
provisions  of this section to the extent necessary to put into effect a
pensions-providing-for-increased-take-home-pay plan for the fiscal  year
nineteen  hundred  seventy-two--nineteen hundred seventy-three analogous
to   that   authorized   for   the   fiscal   year   nineteen    hundred
sixty-two--nineteen   hundred   sixty-three  by  chapter  seven  hundred
eighty-nine  of  the  laws  of  nineteen  hundred  sixty-two,  provided,
however, that
(a)  the  reduced-rate-of-contribution  factor to be used in computing
the reduction in  contributions  of  members  under  such  plan  may  be
designated by the board of education to be four per centum, and provided
further, however, that
(b)  such  resolution  of the board of education shall not take effect
unless and until it is approved by the mayor of such city.
16. (a) As used in this subdivision, the following  terms  shall  mean
and include:
(1) "Board of education". The board of education of a city.
(2) "City". A city having a population of one million or more.
(3)  "Rules  and  regulations".  The  rules  and  regulations  for the
government, management and control  of  the  retirement  system  adopted
pursuant to this section.
(4)  "Retirement  system".  The  board  of education retirement system
established pursuant to the provisions of this section in a city.
(5) (i) "Normal contribution for balance  sheet  liability  purposes".
The  hypothetical  amount  which the normal contribution payable in each
city fiscal year occurring during the period beginning  on  July  first,
nineteen  hundred  seventy-four  and  ending on June thirtieth, nineteen
hundred eighty would have equalled if such normal contribution had  been
required  by  law  to be paid to the contingent reserve fund in the city
fiscal year in which the obligation to  make  such  normal  contribution
accrued  and  such  normal  contribution  had been required by law to be
determined in the manner provided for in items (ii), (iii) and  (iv)  of
this subparagraph.
(ii)  Upon the basis of the mortality and other tables effective under
the  rules  and  regulations  as  of  July   first,   nineteen   hundred
seventy-seven  and  interest at the rate of five and one-half per centum
per annum, the actuary  shall  determine,  as  of  June  thirtieth  next
preceding  each  such  fiscal year for which such normal contribution is
being determined (hereinafter referred to as the "subject fiscal  year")
the  amount of the then total liability for all benefits provided in the
rules and regulations, in articles eleven and fourteen of the retirement
and social security law  and  in  any  other  law  prescribing  benefits
payable  by  the  retirement  system  on account of all then members and
beneficiaries, exluding the then liability on account of  future  annual
contributions,  for  balance  sheet  liability  purposes,  on account of
reserves-for-increased-take-home-pay (as defined in  subparagraph  eight
of  this  paragraph),  if  any,  and  the  then  liability  for benefits
attributable to the annuity savings fund and  to  the  variable  annuity
savings fund.
(iii) The hypothetical normal rate of contribution with respect to the
subject fiscal year shall be the rate per centum obtained:
(A) by adding together:
(1)  the  present  value  of all then required future unfunded accrued
liability contributions for balance sheet liability purposes (as defined
in subparagraph six of this paragraph); and
(2)  the  present  value  of   all   then   required   future   annual
contributions,  for  balance  sheet  liability  purposes,  on account of
amortization of losses on dispositions of certain securities within  the
meaning of subdivision six of section seven of the rules and regulations
(as defined in subparagraph seven of this paragraph); and
(3)  the  present  value  of  future  member  contributions of members
subject to article fourteen of the retirement and social  security  law;
and
(4)  the  amount  obtained  by adding together the total funds on hand
(excluding therefrom the then amount in the annuity savings fund and  in
the variable annuity savings fund) and the balance sheet liability as of
such June thirtieth next preceding the subject fiscal year; and
(B)  by  subtracting from the amount of the total liability determined
pursuant to item (ii) of this subparagraph the sum  resulting  from  the
addition prescribed by sub-item (A) of this item; and
(C)   by   dividing  the  remainder  resulting  from  the  subtraction
prescribed by sub-item (B) of this item by one per centum  of  the  then
present  value  of  the  prospective  future salaries of all members, as
computed on the basis  of  the  mortality  and  service  tables  adopted
pursuant to subdivision two of section five of the rules and regulations
and  in effect on July first, nineteen hundred seventy-seven, and on the
basis of interest at the rate of five and one-half per centum per annum.
(iv) The amount of the normal contribution for balance sheet liability
purposes hypothetically payable in the subject fiscal year shall be  the
amount obtained (1) by multiplying such hypothetical normal contribution
rate  computed  with respect to the subject fiscal year by the aggregate
annual salaries of the members as  of  June  thirtieth  of  the  subject
fiscal  year  and  (2)  by adding to the product of such multiplication,
interest on such product at the rate of five and one-half per centum per
annum for a period of six months.
(6)  "Unfunded  accrued  liability  contribution  for  balance   sheet
liability  purposes".  (i)  With  respect to the city's nineteen hundred
seventy-four--nineteen hundred seventy-five fiscal year, such term shall
mean a hypothetical amount which, if paid to the contingent reserve fund
in forty equal annual installments, beginning with payment  of  a  first
installment   in  the  city's  nineteen  hundred  seventy-four--nineteen

hundred seventy-five fiscal year, would be the actuarial equivalent,  on
the  basis  of  interest at the rate of five and one-half per centum per
annum, of the remainder computed in the manner prescribed by items  (ii)
and (iii) of this subparagraph.
(ii)  Upon  the  basis  of  the  actuarial tables in effect as of July
first,  nineteen  hundred  seventy-seven  for  valuation  purposes   and
interest  at  the  rate of five and one-half per centum per annum, there
shall be computed, as of June thirtieth, nineteen hundred  seventy-four,
the amount of the total liability for all benefits provided by the rules
and regulations, in article eleven of the retirement and social security
law  and in any other law prescribing benefits payable by the retirement
system on account  of  all  members  and  beneficiaries,  excluding  the
liability on account of future increased-take-home-pay contributions and
the  liability for benefits attributable to the annuity savings fund and
the variable annuity savings fund.
(iii) From such total liability computed pursuant to item (ii) of this
subparagraph there shall be subtracted the sum of:
(A)  the  present  value,  as  of  June  thirtieth,  nineteen  hundred
seventy-four,  of  all  future  normal  costs  of the retirement system,
computed pursuant to the entry age normal  cost  method  of  determining
such normal costs; and
(B)  the  present  value, as of June thirtieth, of all required future
payments, pursuant to subdivision six of section seven of the rules  and
regulations  (as then in effect), of installments of losses in excess of
installments of gains on dispositions of securities within  the  meaning
of such subdivision; and
(C) the sum obtained by adding together the balance sheet liability as
of such June thirtieth, (as such liability is determined pursuant to the
provisions  of  subparagraph seven of paragraph (c) of this subdivision)
and the total funds on hand as of such  June  thirtieth,  excluding  the
amount  in  the  annuity  savings  fund and the variable annuity savings
fund, but  including  the  amount  of  any  unpaid  moneys  appropriated
pursuant to section nine of the rules and regulations.
(iv)  With respect to each of the city's fiscal years occurring during
the period from  July  first,  nineteen  hundred  seventy-five  to  June
thirtieth,  nineteen hundred eighty, such term shall mean a hypothetical
amount which, if paid to the contingent  reserve  fund  in  forty  equal
annual  installments,  beginning  with payment of a first installment in
the city's nineteen hundred seventy-five--nineteen  hundred  seventy-six
fiscal year, would be the actuarial equivalent, on the basis of interest
at  the rate of five and one-half per centum per annum, of the remainder
computed pursuant to items (v) and (vi) of this subparagraph.
(v) Upon the basis of the actuarial tables in effect as of July first,
nineteen hundred seventy-seven for valuation purposes  and  interest  at
the  rate  of  five  and  one-half  per centum per annum, there shall be
computed, as of  June  thirtieth,  nineteen  hundred  seventy-five,  the
amount of the total liability for all benefits provided by the rules and
regulations, in article eleven of the retirement and social security law
and  in  any  other  law  prescribing benefits payable by the retirement
system on account  of  all  members  and  beneficiaries,  excluding  the
liability on account of future increased-take-home-pay contributions and
the  liability for benefits attributable to the annuity savings fund and
the variable annuity savings fund.
(vi) From such total liability computed pursuant to item (v)  of  this
subparagraph, there shall be subtracted the sum of:
(A)  the  present  value,  as  of  June  thirtieth,  nineteen  hundred
seventy-five, of all future  normal  costs  of  the  retirement  system,

computed  pursuant  to  the  entry age normal cost method of determining
such normal costs; and
(B) the present value, as of such June thirtieth, of all then required
future  payments,  pursuant  to  subdivision six of section seven of the
rules and regulations (as then in effect), of installments of losses  in
excess of installments of gains on dispositions of securities within the
meaning of such subdivision; and
(C) the sum obtained by adding together the balance sheet liability as
of such June thirtieth, (as such liability is determined pursuant to the
provisions  of  subparagraphs  eight  to  fourteen,  inclusive  of  this
sub-item and the total  funds  on  hand,  as  of  such  June  thirtieth,
excluding  the  amount  in  the  annuity  savings  fund and the variable
annuity savings fund, but including the  amount  of  any  unpaid  moneys
appropriated pursuant to section nine of the rules and regulations.
(7)  "Annual  contribution,  for  balance sheet liability purposes, on
account of amortization of losses on dispositions of certain  securities
within  the meaning of subdivision six of section seven of the rules and
regulations". A hypothetical annual payment to  the  contingent  reserve
fund  in  each  of  the  city's  fiscal year occurring during the period
beginning on July first, nineteen hundred  seventy-four  and  ending  on
June  thirtieth, nineteen hundred eighty, of the amount of the excess of
installments (payable in such year) of losses on prior  dispositions  of
securities within the meaning of subdivision six of section seven of the
rules  and  regulations  (related  to  graduated  crediting of gains and
amortization of losses  on  dispositions  of  certain  securities)  over
installments   (creditable   in  such  year)  of  gains  on  such  prior
dispositions, which annual amount shall  be  determined  in  the  manner
provided for in such subdivision six.
(8)  "Annual  contribution,  for  balance sheet liability purposes, on
account of reserves-for-increased-take-home-pay". A hypothetical  annual
payment  to  the  contingent  reserve  fund in each of the city's fiscal
years occurring during the period  from  July  first,  nineteen  hundred
seventy-four  to  June thirtieth, nineteen hundred eighty, of the amount
required to fulfill the public employer  obligation,  which  accrued  in
such year to make contributions on account of increased-take-home-pay.
(9)  "Annual  military  law  contribution  for balance sheet liability
purposes". A hypothetical annual payment to the contingent reserve  fund
in each of the city's fiscal years occurring during the period beginning
on  July  first,  nineteen  hundred  seventy-four  and  ending  on  June
thirtieth, nineteen hundred eighty, of the amount  required  to  fulfill
the  public  employer  obligation,  which accrued in such year under the
provisions of subdivision twenty of section two hundred  forty-three  of
the  military  law,  to  pay  in  behalf  of members qualifying for such
benefit member contributions with respect to certain periods of military
service of such members.
(10) "Deficiency contribution". The annual  amount  which,  under  the
provisions  of  paragraph f of subdivision three of section eight of the
rules and regulations, the board of education was required to pay to the
contingent  reserve  fund  in  each  of  the  city's  nineteen   hundred
seventy-four--nineteen    hundred    seventy-five,    nineteen   hundred
seventy-five--nineteen  hundred   seventy-six   and   nineteen   hundred
seventy-six--nineteen hundred seventy-seven fiscal years.
(11) "Contribution on account of amortization, pursuant to subdivision
six  of  section  seven  of  the  rules  and  regulations,  of losses on
dispositions of certain securities". The total annual  amount  by  which
the  sum  of the installments of losses, payable pursuant to subdivision
six of section seven of the rules and regulations (as in effect prior to
July first, nineteen hundred eighty) in each of the city's fiscal  years

occurring   during   the   period  from  July  first,  nineteen  hundred
seventy-four to June thirtieth, nineteen hundred eighty in  relation  to
dispositions  of  securities within the meaning of such subdivision six,
exceeded  the  sum  of  the installments of gains creditable in the same
fiscal year in relation to the same disposition of securities.
(b) (1)  Notwithstanding  any  provision  of  subdivision  fifteen  of
section  two  of the rules and regulations or any other provision of the
rules and regulations or any other provision of law to the contrary, for
the purpose of any actuarial valuation, determination or appraisal which
is made pursuant to the rules and regulations or the provisions of  this
subdivision  sixteen  and  which  is used to determine the amount of any
contribution required to be paid by the  board  of  education  into  the
contingent  reserve fund or pension fund of the retirement system in the
nineteen hundred seventy-seven--nineteen  hundred  seventy-eight  fiscal
year  of the city or in any subsequent fiscal year of the city, "regular
interest" shall mean interest as  defined  in  this  paragraph  and  any
definition  of  regular interest in such rules and regulations shall not
apply to any such actuarial valuation, determination or appraisal.
(2) Subject to the provisions of item (ii) of subparagraph six of this
paragraph, for the purpose of any actuarial valuation, determination  or
appraisal  which  is  made  pursuant to the rules and regulations or the
provisions of this subdivision and which is used to determine the amount
of any contribution required to be paid by the board of  education  into
the  contingent reserve fund or pension fund of the retirement system in
the  nineteen  hundred  seventy-seven--nineteen  hundred   seventy-eight
fiscal  year  of  the city and in each succeeding fiscal year thereof to
and including the nineteen hundred seventy-nine--nineteen hundred eighty
fiscal year thereof, "regular interest" shall mean interest at five  and
one-half per centum per annum, compounded annually.
(3)  (i) Subject to the provisions of item (ii) of subparagraph six of
this paragraph and except as otherwise provided in  subparagraphs  seven
to sixteen, inclusive, of paragraph (c) of this subdivision with respect
to determination of the amount of the balance sheet liability as of June
thirtieth,   nineteen   hundred   eighty  and  balance  sheet  liability
contributions, for the purpose of any actuarial valuation, determination
or appraisal which is made pursuant to the rules and regulations or  the
provisions of this subdivision and which is used to determine the amount
of  any  contribution required to be paid by the board of education into
the contingent reserve fund of the retirement  system  in  the  nineteen
hundred  eighty--nineteen hundred eighty-one fiscal year of the city and
in each succeeding fiscal year thereof to  and  including  the  nineteen
hundred  eighty-one--nineteen  hundred  eighty-two  fiscal year thereof,
"regular interest" shall mean interest at the rate of seven and one-half
per centum per annum, compounded annually.
(ii) Subject to the provisions of item (ii)  of  subparagraph  six  of
this  paragraph  and except as otherwise provided in subparagraphs seven
to sixteen, inclusive, of paragraph (c) of this subdivision with respect
to determination of the amount of the balance sheet liability as of June
thirtieth,  nineteen  hundred  eighty  and   balance   sheet   liability
contributions, for the purpose of any actuarial valuation, determination
or  appraisal which is made pursuant to the rules and regulations or the
provisions of this subdivision and which is used to determine the amount
of any contribution required to be paid by the board of  education  into
the  contingent  reserve  fund  of the retirement system in the nineteen
hundred eighty-two--nineteen hundred eighty-three  fiscal  year  of  the
city  and  in  each  succeeding fiscal year thereof to and including the
nineteen hundred eighty-seven--nineteen hundred eighty-eight fiscal year

thereof, "regular interest" shall mean interest at the rate of eight per
centum per annum, compounded annually.
(iii)  Subject  to  the provisions of item (ii) of subparagraph six of
this paragraph and except as otherwise provided in  subparagraphs  seven
to sixteen, inclusive, of paragraph (c) of this subdivision with respect
to determination of the amount of the balance sheet liability as of June
thirtieth,   nineteen   hundred   eighty  and  balance  sheet  liability
contributions, for the purpose of any actuarial valuation, determination
or appraisal which is made pursuant to the rules and regulations or  the
provisions of this subdivision and which is used to determine the amount
of  any  contribution required to be paid by the board of education into
the contingent reserve fund of the retirement  system  in  the  nineteen
hundred  eighty-eight--nineteen  hundred  eighty-nine fiscal year of the
city and  the  nineteen  hundred  eighty-nine--nineteen  hundred  ninety
fiscal  year thereof, "regular interest" shall mean interest at the rate
of eight and one-quarter per centum per annum, compounded annually.
(4) Subject to the provisions of item (ii) of subparagraph six of this
paragraph, and except as otherwise provided in  subparagraphs  seven  to
sixteen, inclusive, of paragraph (c) of this subdivision with respect to
determination  of  the  amount of the balance sheet liability as of June
thirtieth,  nineteen  hundred  eighty  and   balance   sheet   liability
contributions, for the purpose of any actuarial valuation, determination
or  appraisal which is made pursuant to the rules and regulations or the
provisions of this subdivision and which is used to determine the amount
of any contribution required to be paid by the board of  education  into
the  contingent reserve fund or pension fund of the retirement system in
the city's nineteen hundred ninety--nineteen hundred  ninety-one  fiscal
year and in any subsequent fiscal year thereof, "regular interest" shall
mean  interest  at such rate per annum, compounded annually, as shall be
prescribed by the legislature in section 13-638.2 of the  administrative
code of the city.
(5)  On  or after May first, nineteen hundred eighty-nine and no later
than October thirty-first of such  year  the  retirement  board  of  the
retirement  system shall submit to the governor, the temporary president
and minority leader of the senate, the  speaker  of  the  assembly,  the
majority  and minority leaders of the assembly, the state superintendent
of financial services, the mayor of the city, and  the  members  of  the
city  council  thereof,  the  written  recommendations of the retirement
board as to the rate of interest  and  effective  period  thereof  which
should  be  established  by  law  as  "regular interest" for the purpose
specified in subparagraph four of this paragraph.
(6) (i) Subject to the provisions of item (iv) of  subparagraph  three
of paragraph (c) of this subdivision, nothing contained in subparagraphs
one,  two,  three, four and five of this paragraph shall be construed as
prescribing,  for  the  purpose  of  crediting  interest  to  individual
accounts      in      the     annuity     savings     fund     or     to
reserves-for-increased-take-home-pay or for any  other  purpose  besides
that  specified  in such subparagraphs, a rate of regular interest other
than as prescribed by the applicable provisions of  subdivision  fifteen
of section two of the rules and regulations and subdivision seventeen of
this section.
(ii)   Subject   to   the   provisions  of  section  13-638.2  of  the
administrative code of the city, nothing contained in subparagraphs two,
three and four of this paragraph shall be  construed  as  requiring  the
original unfunded accrued liability contribution, as defined in item (i)
of  subparagraph  five  of  paragraph  (c)  of this subdivision, and the
revised unfunded accrued liability contribution, as defined in item (ii)
of such subparagraph, and the nineteen hundred eighty  unfunded  accrued

liability  adjustment,  as defined in subparagraph six of such paragraph
(c), and the nineteen  hundred  eighty-two  unfunded  accrued  liability
adjustment, as defined in such subparagraph six, to be determined in any
manner  other  than  as  prescribed by the applicable provisions of such
items and such subparagraph six.  Subject  to  the  provisions  of  such
section 13-638.2, nothing contained in subparagraphs two, three and four
of  this  paragraph  shall  be  construed as requiring any balance sheet
liability or balance sheet liability contribution computed  pursuant  to
the   provisions  of  subparagraphs  seven  to  sixteen,  inclusive,  of
paragraph (c) of this subdivision to be determined in any  manner  other
than as prescribed in such subparagraphs.
(c)  (1)  (i)  Notwithstanding the provisions of paragraphs b and f of
subdivision three of section eight of the rules and regulations  or  any
other  provision  of the rules and regulations or any other provision of
law to the contrary;
(A) the provisions of subparagraphs two, three, four and five of  this
paragraph  (c), as in effect during the period from July first, nineteen
hundred seventy-seven to June thirtieth, nineteen hundred eighty,  shall
govern  the  contributions  payable  by  the  board  of education to the
contingent reserve fund of the retirement system in the city's  nineteen
hundred seventy-seven--nineteen hundred seventy-eight fiscal year and in
each  city  fiscal year thereafter to and including the nineteen hundred
seventy-nine--nineteen hundred eighty fiscal year, and no  contributions
shall  be  payable  by  the  board of education to such fund in any such
fiscal year other than the contributions prescribed  by  the  applicable
provisions of such subparagraphs two, three, four and five; and
(B)  the  applicable provisions of this paragraph, as in effect on and
after July  first,  nineteen  hundred  eighty,  and  the  provisions  of
sections  13-638.2,  13-695 and 13-704 of the administrative code of the
city and any  other  applicable  laws  shall  govern  the  contributions
payable  by the board of education to the contingent reserve fund in the
city's nineteen hundred eighty--nineteen hundred eighty-one fiscal  year
and  in  each city fiscal year thereafter, and no contributions shall be
payable by the board of education to such fund in any such  fiscal  year
other  than the contributions prescribed by the applicable provisions of
this paragraph and such sections and laws.
(ii) The contribution payable  by  the  board  of  education  to  such
contingent  reserve  fund  in the nineteen hundred seventy-six--nineteen
hundred seventy-seven  fiscal  year  of  the  city,  including,  without
limitation,  the  contribution  required  by  paragraph f of subdivision
three of section eight of the rules and regulations, shall  be  governed
by  the  applicable provisions of the rules and regulations as in effect
immediately prior to July first, nineteen hundred seventy-seven.
(2) Subject to the provisions of law referred to in  sub-item  (B)  of
item  (i)  of subparagraph one of this paragraph, the board of education
shall contribute to the contingent reserve fund:
(i) annually an amount computed pursuant to subparagraph four of  this
paragraph, to be known as the "normal contribution"; and
(i-A)  all  unfunded  accrued  liability  installments  as required by
section 13-638.2 of the administrative code of the city of New  York  or
any other provision of law; and
(i-B) any other payments to the contingent reserve fund as required by
applicable law; and
(ii)  in  each  city  fiscal year during the period beginning with the
fiscal   year   nineteen   hundred    seventy-seven--nineteen    hundred
seventy-eight and ending on the last day of fiscal year nineteen hundred
seventy-nine--nineteen  hundred  eighty,  one  annual  installment of an
additional amount computed pursuant to item (i) of subparagraph five  of

this  paragraph,  which shall be known as the "original unfunded accrued
liability contribution"; and
(iii) in each city fiscal year during the period beginning with fiscal
year  nineteen hundred eighty--nineteen hundred eighty-one and ending on
the last day of fiscal year two thousand fourteen--two thousand fifteen,
the annual installment, applicable to such fiscal year, of an additional
amount which shall be known as the revised  unfunded  accrued  liability
contribution  and which shall be determined as provided for in item (ii)
of subparagraph five of this paragraph; and
(iv) in each city fiscal year during the period beginning with  fiscal
year nineteen hundred eighty-one--nineteen hundred eighty-two and ending
on  the  last  day  of  fiscal  year  two  thousand twenty--two thousand
twenty-one, the annual installment, applicable to such fiscal  year,  of
an additional amount which shall be known as the balance sheet liability
contribution   and   which  shall  be  determined  as  provided  for  in
subparagraphs seven to sixteen, inclusive, of this paragraph; and
(v)  in  fiscal  year  nineteen   hundred   eighty--nineteen   hundred
eighty-one,  the amount of one year's interest, at the rate of seven and
one-half per centum per annum,  on  the  amount  of  the  balance  sheet
liability  as  of June thirtieth, nineteen hundred eighty, as determined
pursuant to the provisions of subparagraphs seven to fifteen, inclusive,
of this paragraph; and
(vi) in each city fiscal year, beginning  with  fiscal  year  nineteen
hundred  eighty--nineteen  hundred eighty-one and ending on the last day
of  fiscal   year   nineteen   hundred   ninety-four--nineteen   hundred
ninety-five,   the  amount  required  to  fulfill  the  public  employer
obligation, which accrued in such fiscal year, to make contributions  on
account of increased-take-home-pay; and
(vii)  in  each  city fiscal year, beginning with fiscal year nineteen
hundred eighty--nineteen hundred eighty-one and ending on the  last  day
of   fiscal   year   nineteen   hundred   ninety-four--nineteen  hundred
ninety-five,  the  amount  required  to  fulfill  the  public   employer
obligation,  which  accrued  in such fiscal year under the provisions of
subdivision twenty of section two hundred forty-three  of  the  military
law,  to  pay  in  behalf of members qualifying for such benefit, member
contributions with respect to certain periods of the military service of
such members.
(3) (i) If the nineteen  hundred  eighty  unfunded  accrued  liability
adjustment  determined pursuant to subparagraph six of this paragraph is
a credit, the total of the amounts required to  be  contributed  to  the
contingent  reserve  fund  in each city fiscal year, commencing with the
nineteen hundred eighty--nineteen hundred  eighty-one  fiscal  year  and
ending  with  the  two  thousand  nine--two  thousand  ten  fiscal year,
pursuant to items (i), (iii), (iv), (v), (vi) and (vii) of  subparagraph
two  of  this  paragraph  shall  be  reduced by the amount of one annual
installment of such nineteen hundred eighty unfunded  accrued  liability
adjustment.
(ii)  (A)  If  the  nineteen hundred eighty unfunded accrued liability
adjustment determined pursuant to such subparagraph six is a charge, the
board of education shall contribute in each city fiscal year, commencing
with the nineteen hundred  eighty--nineteen  hundred  eighty-one  fiscal
year  and  ending  with  the  two thousand nine--two thousand ten fiscal
year, in addition to the amounts required to be  contributed  under  the
provisions  of  subparagraph  two  of  this  paragraph  (c),  one annual
installment of such nineteen hundred eighty unfunded  accrued  liability
adjustment.
(B)  The  total  of  the  amounts  required  to  be contributed to the
contingent reserve fund in each city fiscal  year  commencing  with  the

nineteen  hundred  eighty-two--nineteen hundred eighty-three fiscal year
and ending with the two thousand eleven--two thousand twelve fiscal year
pursuant to items (i), (iii), (iv), (vi) and (vii) of  subparagraph  (2)
of  this paragraph (c) and the applicable provisions of item (i) of this
subparagraph (3) and sub-item  (A)  of  this  item  (ii)  and  otherwise
pursuant to law shall be reduced by the amount of one annual installment
of the nineteen hundred eighty-two unfunded accrued liability adjustment
determined  pursuant  to item (vi) of subparagraph (6) of this paragraph
(c).
(C) The total of  the  amounts  required  to  be  contributed  to  the
contingent  reserve  fund  in  each city fiscal year commencing with the
nineteen hundred eighty-five--nineteen hundred  eighty-six  fiscal  year
and  ending  with the two thousand fourteen--two thousand fifteen fiscal
year pursuant to items (i), (iii), (iv), (vi) and (vii) of  subparagraph
(2)  of  this paragraph (c) and the applicable provisions of item (i) of
this subparagraph (3) and sub-item (A) of this item (ii)  and  otherwise
pursuant to law shall be reduced by the amount of one annual installment
of   the   nineteen   hundred  eighty-five  unfunded  accrued  liability
adjustment determined pursuant to item (vii) of subparagraph (6) of this
paragraph (c).
(iii) Any amount required by the provisions of items (iii), (iv), (vi)
and (vii) of subparagraph two of this paragraph and subdivision  six  of
section  seven  of  the  rules  and regulations to be contributed to the
contingent reserve fund in the city's nineteen hundred  eighty--nineteen
hundred  eighty-one  fiscal  year or any subsequent fiscal year shall be
payable with interest on such amount at a  rate  per  centum  per  annum
equal  to  the  rate  per  centum  per annum required to be used for the
purpose of any actuarial valuation, determination or appraisal  made  to
determine   the  amount  of  the  normal  contribution  payable  to  the
contingent reserve fund in such fiscal year.
(iv) Any amount required to be contributed to the  contingent  reserve
fund  in  any  fiscal  year  of  the city preceding the nineteen hundred
eighty--nineteen hundred eighty-one fiscal year shall be deemed to  have
been  required  to  be  paid  with interest on such amount at a rate per
centum per annum equal to the rate per centum per annum required  to  be
used  for  the  purpose  of  any  actuarial  valuation, determination or
appraisal made to  determine  the  amount  of  the  normal  contribution
payable to the contingent reserve fund in such fiscal year.
(v)  It is hereby declared that the provisions of items (iii) and (iv)
of this subparagraph three, insofar as they relate to provisions of  the
rules  and  regulations  or  of this subdivision or other laws requiring
payment of employer contributions to the retirement system prior to  the
effective  date  of  this  subparagraph,  express  the  intent  of  such
provisions of the rules and regulations or  this  subdivision  or  other
laws requiring such payment.
(vi) For the purpose of effectuating the nineteen hundred eighty-eight
unfunded  accrued  liability adjustment provided for in section 13-638.1
of the administrative code of the city of New York, contributions to the
contingent reserve fund on account of  charges  shall  be  made  by  the
responsible  obligor  (as  defined  in paragraph six of subdivision a of
such section) or credits  shall  be  allowed  to  such  obligor  against
contributions  otherwise payable by such obligor, as the case may be, to
the extent and in the manner provided for in such  section.  The  annual
determination  of  the  normal  contribution  for fiscal years occurring
during the period beginning on July first, nineteen hundred eighty-eight
and ending  on  June  thirtieth,  nineteen  hundred  ninety-eight  shall
appropriately take account of the nineteen hundred eighty-eight unfunded
accrued  liability adjustment and the provisions of subparagraph four of

this paragraph (c) shall be deemed to be conformably modified  for  such
purpose.
(vii)  The  board  of education and all other responsible obligors (as
defined in paragraph ten of subdivision a of  section  13-638.2  of  the
administrative  code of the city of New York) shall make all payments to
the retirement system required by applicable law in accordance with  the
time  of  payment  requirements  set  forth  in  paragraph  (j)  of this
subdivision. Any responsible obligor which does  not  make  all  or  any
portion  of  such required payments to the retirement system in a timely
manner in fiscal year two thousand twelve--two thousand thirteen, or  in
any  fiscal  year  thereafter,  shall be required to pay interest to the
retirement system on such overdue amounts, as determined by the actuary.
The  actuary  shall  determine,  at  such  time  as  he  or  she   deems
appropriate,  interest  payments on such overdue amounts using a rate of
interest equivalent to the valuation rate of  interest  (as  defined  in
paragraph   eleven   of   subdivision  a  of  section  13-638.2  of  the
administrative code of the city of New York). Responsible obligors shall
make such interest payments on overdue amounts to the retirement  system
in the manner and at such time as the actuary deems appropriate.
(4)   Normal   contribution.
(i)  Notwithstanding  the  succeeding
provisions of this item or the provisions of item (i-A), (ii), (iii)  or
(iv)  of  this  subparagraph,  for  fiscal year two thousand eleven--two
thousand twelve, and for each fiscal year thereafter, the amount of  the
normal  contribution  payable  to  the  contingent reserve fund shall be
determined pursuant to the provisions of item (v) of this  subparagraph.
Upon  the  basis  of the latest mortality and other tables authorized by
the applicable provisions of  the  rules  and  regulations  and  regular
interest,  the  actuary  shall determine, as of June thirtieth, nineteen
hundred eighty and as of each succeeding June thirtieth, the  amount  of
the  total  liability  for  all  benefits  provided  in  the  rules  and
regulations, in articles eleven  and  fourteen  of  the  retirement  and
social security law and in any other law prescribing benefits payable by
the  retirement  system  on  account  of  all members and beneficiaries,
excluding the liability on  account  of  future  increased-take-home-pay
contributions,  if  any,  and the liability for benefits attributable to
the annuity savings fund and  to  the  variable  annuity  savings  fund,
provided,  however,  that in determining such total liability as of June
thirtieth, nineteen hundred ninety-five and as of each  succeeding  June
thirtieth,  the  actuary  shall  include (A) the liability on account of
future increased-take-home-pay contributions, if any, (B) the  liability
on account of future public employer obligations under the provisions of
subdivision  twenty  of  section two hundred forty-three of the military
law, to pay in behalf of members qualifying  for  such  benefit,  member
contributions with respect to certain periods of the military service of
such  members  and  (C)  the  liability for benefits attributable to the
annuity savings fund and to  the  variable  annuity  savings  fund,  and
provided  further  that  in  determining such total liability as of June
thirtieth, nineteen hundred ninety-nine and as of each  succeeding  June
thirtieth,  the actuary shall include any other liability, as determined
by the actuary,  for  benefits  attributable  to  the  variable  annuity
programs,  and provided further that in determining such total liability
as of June thirtieth, two  thousand  and  as  of  each  succeeding  June
thirtieth, the actuary shall include the amount, if any, as estimated by
the  actuary, of the total liability of the retirement system on account
of payments which the retirement system may be required to make  to  any
other  fund  without  a  corresponding  offset in the liabilities of the
retirement system.
(i-A) Notwithstanding any other provision of law to the contrary,  for
the  purpose  of  calculating  the  amount  of  the  normal contribution
annually due from the board of education to the contingent reserve  fund
pursuant  to  item (iv) of this subparagraph in fiscal year two thousand
five--two  thousand  six,  and  in each fiscal year thereafter, both the
total liability of the retirement system, as calculated by  the  actuary
in accordance with item (i) of this subparagraph, and the normal rate of
contribution, as calculated by the actuary in accordance with items (ii)
and (iii) of this subparagraph, shall be determined as of June thirtieth
of  the second fiscal year preceding the fiscal year in which the normal
contribution is payable, provided, however, that (A) the  actuary  shall
use  for  such  calculations  the  mortality  and  other tables that are
applicable at the time he or she performs  such  calculations;  (B)  the
total  funds  on  hand,  as determined by the actuary pursuant to clause
five of sub-item (A)  of  item  (ii)  of  this  subparagraph,  shall  be
adjusted  by  adding  to  such  amount the present value of all employer
contributions required to be paid into the contingent  reserve  fund  in
the  fiscal  year  next  preceding  the  fiscal year in which the normal
contribution is payable, as determined  by  the  actuary;  and  (C)  the
present  value  of  the  prospective  future salaries of all members, as
computed by the actuary for the purposes of sub-item (C) of item (ii) of
this subparagraph, shall be reduced by the present value of the salaries
expected to be paid to all members in the fiscal year next preceding the
fiscal year in which the normal contribution is payable,  as  determined
by the actuary.
(ii)  The  normal  rate  of  contribution shall be the rate per centum
obtained:
(A) by adding together:
(1) (a) the amount obtained by adding together the  present  value  of
all required future revised unfunded accrued liability contributions and
the  present  value  of  all  required  future  payments of the nineteen
hundred  eighty  unfunded  accrued  liability   adjustment,   determined
pursuant  to subparagraph six of this paragraph, if such adjustment is a
charge; or
(b) the remainder obtained by subtracting from the  present  value  of
all  required  future  revised unfunded accrued liability contributions,
the present value of all future installments  of  the  nineteen  hundred
eighty unfunded accrued liability adjustment required to be credited, if
such nineteen hundred eighty adjustment is a credit;
(c) minus (whether (a) or (b) immediately preceding is applicable) the
sum  of  the  present  value  of all future installments of the nineteen
hundred eighty-two unfunded accrued liability adjustment and the present
value of all future installments of  the  nineteen  hundred  eighty-five
unfunded accrued liability adjustment; and
(2)  the  present value of all required future balance sheet liability
contributions, plus, in the case of  the  determination  of  the  normal
contribution  payable  in  fiscal year nineteen hundred eighty--nineteen
hundred eighty-one, the present value, as of  June  thirtieth,  nineteen
hundred  eighty,  of  the  payment  of  interest  on  the  balance sheet
liability as required by item (v) of subparagraph two of this  paragraph
(c); and
(3)  the  present  value  of all required future payments, pursuant to
subdivision six of section  seven  of  the  rules  and  regulations,  of
installments   of   losses   in  excess  of  installments  of  gains  on
dispositions of securities within the meaning of such subdivision; and
(4) in the case  of  the  determination  of  the  normal  contribution
payable in each fiscal year commencing with fiscal year nineteen hundred

ninety-five--nineteen  hundred  ninety-six,  the present value of future
member contributions of all members; and
(5)  the total funds on hand, including the amount of any unpaid money
appropriated pursuant to section nine of the rules and regulations  and,
in  the  case of the determination of the normal contribution payable in
each  fiscal  year  commencing  with  fiscal   year   nineteen   hundred
ninety-five--nineteen  hundred  ninety-six,  including the amount in the
annuity savings fund and in the variable annuity savings fund; and
(6) the present value of all  other  future  installments  of  accrued
liability  contributions  to  the  retirement  system  required  by  the
applicable provisions of section 13-638.2 of the administrative code  of
the  city  of New York which are not covered by the preceding paragraphs
of this subitem (A); and
(B) by subtracting from the amount of the total  liability  determined
pursuant  to  item  (i)  of this subparagraph the sum resulting from the
addition prescribed by sub-item (A) of this item; and
(C)  by  dividing  the  remainder  resulting   from   the   applicable
subtraction prescribed by sub-item (B) of this item by one per centum of
the  present value of the prospective future salaries of all members, as
computed by the actuary on the basis of the latest mortality and service
tables adopted pursuant to subdivision two of section five of the  rules
and regulations, and on the basis of regular interest.
(iii)  The normal rate of contribution determined by the actuary shall
not be less than zero,  shall  be  certified  by  the  actuary  after  a
valuation  and  shall  continue  in  force  until  the  next  succeeding
valuation and certification. The actuary shall make a valuation,  as  of
June  thirtieth  of  each  year,  of  the  assets and liabilities of the
various funds created by the rules and regulations.
(iv)(A) The amount of the normal contribution annually  due  from  the
board  of  education  to the contingent reserve fund in each city fiscal
year, commencing with  the  nineteen  hundred  eighty--nineteen  hundred
eighty-one  fiscal  year  and  ending  with  the  two thousand four--two
thousand five fiscal year, shall be the amount obtained  by  multiplying
the normal rate of contribution, as determined by the actuary as of June
thirtieth  next  preceding  such  fiscal  year,  by the aggregate annual
salaries of the members on  such  June  thirtieth  next  preceding  such
fiscal  year  in  which  such amount is due and shall be payable in such
fiscal year next following  such  June  thirtieth,  together  with  such
regular  interest thereon which may be due, if any, as calculated by the
actuary.
(B) The amount of the normal contribution annually due from the  board
of  education  to  the contingent reserve fund in each city fiscal year,
commencing with the two thousand five--two  thousand  six  fiscal  year,
shall  be  the  amount  obtained  by  multiplying  the  normal  rate  of
contribution, as determined  by  the  actuary  as  of  the  second  June
thirtieth  preceding the fiscal year in which the normal contribution is
payable, in accordance with the provisions  of  items  (i-A),  (ii)  and
(iii)  of  this  subparagraph,  by  the aggregate amount of the salaries
expected to be paid to the members during the fiscal year in  which  the
normal  contribution  is payable, as determined by the actuary, and such
normal contribution shall be payable in the second fiscal year following
the June thirtieth as of  which  the  normal  rate  of  contribution  is
determined,  together  with  such  regular interest thereon which may be
due, if any, as calculated by the actuary.
(C) In the case of the normal contribution  payable  in  the  nineteen
hundred  eighty--nineteen  hundred  eighty-one  fiscal  year  and in any
subsequent fiscal year, the term "regular interest,"  as  used  in  this
item  (iv)  shall  mean  regular  interest  as defined by the applicable

provisions of subparagraph three or subparagraph four of  paragraph  (b)
of this subdivision.
(v)  (A)  Notwithstanding  the preceding items of this subparagraph or
any other provision of law to  the  contrary,  the  normal  contribution
payable  to  the  contingent  reserve  fund  in fiscal year two thousand
eleven--two thousand twelve, and in each fiscal year  thereafter,  shall
be  the  entry  age  normal  contribution,  as determined by the actuary
pursuant to this  item  in  a  manner  consistent  with  the  entry  age
actuarial cost method.  The actuary shall determine the entry age normal
contribution  for  each  such  fiscal  year  as of June thirtieth of the
second fiscal year preceding  the  fiscal  year  in  which  such  normal
contribution  is payable, based on the latest mortality and other tables
applicable at the time he or she performs  such  calculations,  and  the
valuation  rate  of  interest  as  provided for the retirement system in
paragraph two of subdivision b of section 13-638.2 of the administrative
code of the city of New York.
(B) In calculating the entry age normal contribution  payable  in  any
such  fiscal  year  pursuant  to  this  item, the actuary, in his or her
discretion, may make certain adjustments in the calculation methodology,
provided that such adjustments are generally accepted as consistent with
the entry age actuarial cost method, and are designed,  in  general,  to
fund,  on a level basis over the working lifetimes of members from their
ages at entry, the actuarial present value of  benefits  to  which  such
members  are  expected to become entitled, as determined by the actuary.
Such generally accepted adjustments in the calculation  methodology,  in
the  discretion of the actuary, may include, but are not limited to, the
calculation of the entry age normal contribution (1)  on  an  individual
member  basis  by  calculating  the  amount  of  the  entry  age  normal
contribution attributable to each individual  member,  and  then  adding
together  such  individual member amounts, (2) on an aggregate basis for
all members or (3) on any combination of an individual member basis  and
an aggregate basis which is consistent with the entry age actuarial cost
method, and the preceding provisions of this sub-item.
(C)  For each such fiscal year, the actuary, in his or her discretion,
shall determine, in accordance with the provisions of  sub-item  (B)  of
this  item,  the  methodology  for  calculating  the  entry  age  normal
contribution payable for that particular fiscal year.
(D) The methodology determined  by  the  actuary  in  accordance  with
sub-item  (C)  of this item may provide for the actuary to calculate the
entry age normal contribution on  an  individual  member  basis  by  (1)
multiplying  the  entry age normal contribution rate for each individual
member, as determined by the actuary, by the salary expected to be  paid
to  that member during the fiscal year in which such normal contribution
is payable, and (2) calculating the sum  of  the  individual  entry  age
normal  contributions  attributable to all such members. The actuary, in
his or her discretion, may make any adjustments to such methodology  for
determining  the  entry  age  normal contribution on an individual basis
which he or she deems appropriate, and which  are  consistent  with  the
provisions of sub-item (B) of this item.
(E)  In  the alternative, the methodology determined by the actuary in
accordance with sub-item (C) of this item may provide for the actuary to
calculate the entry age normal contribution on  an  aggregate  basis  by
multiplying  the  entry  age normal contribution rate for all members in
the aggregate, as determined by the actuary, by the aggregate amount  of
the  salaries  expected to be paid to all members during the fiscal year
in which the normal contribution is payable. The actuary, in his or  her
discretion, may make any adjustments to such methodology for determining
the  entry age normal contribution on an aggregate basis which he or she

deems appropriate, and which  are  consistent  with  the  provisions  of
sub-item (B) of this item.
(F)  In  the alternative, the methodology determined by the actuary in
accordance  with  sub-item  (C)  of  this  item  may  provide  for   the
calculation  of  the  entry  age  normal contribution on any other basis
which the actuary deems appropriate, and which is  consistent  with  the
entry  age  actuarial  cost method and the provisions of sub-item (B) of
this item.
(G) (1) Where the methodology determined by the actuary in  accordance
with  sub-item  (C)  of this item requires the determination of an entry
age normal contribution rate for each  individual  member  in  order  to
calculate  the entry age normal contribution for each individual member,
the actuary shall determine such rate for each such member in accordance
with the entry age actuarial cost method, and such rate,  as  determined
by  the  actuary for each such member, shall be consistent with a method
designed, in general, to  fund,  on  a  level  basis  over  the  working
lifetime  of  that  particular  member from his or her age at entry, the
actuarial present value of benefits to which such member is expected  to
become entitled, as determined by the actuary.
(2) Where the methodology determined by the actuary in accordance with
sub-item  (C)  of  this  item requires the determination of an entry age
normal contribution rate for all members in the aggregate  in  order  to
calculate  the  entry  age  normal  contribution  for all members in the
aggregate, the actuary shall determine such rate in accordance with  the
entry  age  actuarial  cost  method, and such rate, as determined by the
actuary, shall be consistent with a  method  designed,  in  general,  to
fund,  on a level basis over the working lifetimes of members from their
ages at entry, the actuarial present value of  benefits  to  which  such
members are expected to become entitled, as determined by the actuary.
(5)   Unfunded  accrued  liability  contributions.--(i)  The  original
unfunded accrued liability contribution shall be  an  amount  which,  if
paid  to the contingent reserve fund in forty equal annual installments,
commencing with payment of a first installment in  the  city's  nineteen
hundred seventy-seven--nineteen hundred seventy-eight fiscal year, would
be the actuarial equivalent, on the basis of five and one-half percentum
interest  and  the actuarial tables in effect as of July first, nineteen
hundred  seventy-seven,  of  the  difference  between  (A)  the  accrued
liability  (excluding  the  liability  for  benefits attributable to the
annuity savings fund and the variable  annuity  savings  fund)  on  June
thirtieth,  nineteen  hundred  seventy-five  and  (B) the total funds on
hand, excluding the amount in the annuity savings fund and the  variable
annuity  savings  fund,  but  including  the amount of any unpaid moneys
appropriated pursuant to section nine of the rules and  regulations.  No
contribution or payment to the contingent reserve fund of the retirement
system  shall be made under the provisions of paragraph f of subdivision
three of section eight of the rules  and  regulations  in  the  nineteen
hundred seventy-seven--nineteen hundred seventy-eight fiscal year of the
city  or  in  any  subsequent  city  fiscal year. The provisions of such
paragraph f shall cease to be effective on July first, nineteen  hundred
seventy-seven.
(ii)  (A) The revised unfunded accrued liability contribution shall be
an amount determined as prescribed in sub-items (B), (C), (D), (E), (F),
(G), (H), (I) and (J) of this item.
(B) To the amount of the difference constituting the unfunded  accrued
liability as of June thirtieth, nineteen hundred seventy-five heretofore
determined pursuant to the provisions of this subparagraph, as in effect
on  July  first,  nineteen  hundred  seventy-seven, there shall be added
interest thereon at the rate of five and one-half per centum  per  annum

for  the  period  from July first, nineteen hundred seventy-five to June
thirtieth, nineteen hundred eighty.
(C) There shall be computed, in the manner provided in sub-item (D) of
this  item,  the  discounted  value  of  each of the installments of the
unfunded accrued liability contribution which, in  the  absence  of  the
enactment  of  chapter  nine hundred fifty-seven of the laws of nineteen
hundred eighty-one, were payable or  would  have  been  payable  in  the
city's  nineteen  hundred seventy-seven--nineteen hundred seventy-eight,
nineteen hundred seventy-eight--nineteen hundred seventy-nine,  nineteen
hundred   seventy-nine--nineteen   hundred   eighty,   nineteen  hundred
eighty--nineteen    hundred    eighty-one    and    nineteen     hundred
eighty-one--nineteen hundred eighty-two fiscal years.
(D)  Such  discounted  value  of  each such installment referred to in
sub-item (C) of this item shall be computed as of January first  of  the
city's  second  fiscal  year  preceding  the  fiscal  year in which such
installment was payable or would have been payable and on the  basis  of
five  and  one-half  per centum interest per annum on the amount of such
installment.
(E) There shall be computed with respect to such discounted  value  of
each  such  installment,  interest  thereon  from  January first of such
second fiscal year preceding the fiscal year in which  such  installment
was  or  would  have  been  payable  to June thirtieth, nineteen hundred
eighty at the rate of five and one-half per centum per annum.
(F) The discounted values of all of such installments with respect  to
such  fiscal years, computed as provided for in sub-items (C) and (D) of
this item, together with interest on each such installment  as  provided
for in sub-item (E) of this item, shall be added together.
(G)  From  the sum computed pursuant to sub-item (B) of this item, the
sum computed pursuant to sub-item (F) of this item shall be subtracted.
(H) With respect to each city fiscal year occurring during the  period
beginning  on  July  first,  nineteen  hundred eighty and ending on June
thirtieth, nineteen hundred eighty-two,  the  revised  unfunded  accrued
liability  contribution  shall  be the annual installment, applicable to
such fiscal year, of an amount which, if paid to the contingent  reserve
fund  in  thirty-five equal annual installments, commencing with payment
of a first installment in the city's nineteen  hundred  eighty--nineteen
hundred  eighty-one  fiscal  year, would be the actuarial equivalent, on
the basis of seven and one-half per centum interest per  annum,  of  the
remainder computed pursuant to sub-item (G) of this item.
(I)  With respect to each city fiscal year occurring during the period
beginning on July first, nineteen hundred eighty-two and ending on  June
thirtieth,  nineteen  hundred eighty-eight, the revised unfunded accrued
liability contribution shall be the annual  installment,  applicable  to
such  fiscal year, of an amount which, if paid to the contingent reserve
fund in thirty-three equal annual installments, commencing with  payment
of    a    first    installment   in   the   city's   nineteen   hundred
eighty-two--nineteen hundred eighty-three  fiscal  year,  would  be  the
actuarial  equivalent,  on  the  basis  of eight per centum interest per
annum, of the present value, as  of  June  thirtieth,  nineteen  hundred
eighty-two  on  the  basis of seven and one-half per centum interest per
annum,  of  those  installments  of  the  unfunded   accrued   liability
contribution  computed pursuant to sub-item (H) of this item (ii), which
installments are  hypothetically  allocated  by  such  sub-item  (H)  to
designated city fiscal years succeeding June thirtieth, nineteen hundred
eighty-two.
(J)  With respect to each city fiscal year occurring during the period
beginning on July first, nineteen hundred  eighty-eight  and  ending  on
June  thirtieth,  two  thousand  fifteen,  the  revised unfunded accrued

liability contribution shall be the annual  installment,  applicable  to
such  fiscal  year,  of  an  amount  which,  when paid to the contingent
reserve fund in twenty-seven equal annual installments, commencing  with
payment   of   a  first  installment  in  the  city's  nineteen  hundred
eighty-eight--nineteen hundred eighty-nine fiscal  year,  shall  be  the
actuarial  equivalent,  on the basis of eight and one-quarter per centum
interest per annum, of the present value, as of June thirtieth, nineteen
hundred eighty-eight on the basis  of  eight  per  centum  interest  per
annum,   of   those  installments  of  the  unfunded  accrued  liability
contribution computed pursuant to sub-item (I) of this item (ii),  which
installments  are  hypothetically  allocated  by  such  sub-item  (I) to
designated city fiscal years succeeding June thirtieth, nineteen hundred
eighty-eight.
(6)  (i)  The  nineteen  hundred  eighty  unfunded  accrued  liability
adjustment  shall  be  an amount determined as prescribed in items (ii),
(iii), (iv) and (v) of this subparagraph.
(ii) (A) Upon the basis of the actuarial tables in effect as  of  June
thirtieth,  nineteen  hundred eighty for valuation purposes and interest
at the rate of seven and one-half per centum per annum, there  shall  be
determined, as of June thirtieth, nineteen hundred eighty, the amount of
the  total  liability  for  all  benefits  provided  in  the  rules  and
regulations, in articles eleven  and  fourteen  of  the  retirement  and
social security law and in any other law prescribing benefits payable by
the  retirement  system  on  account  of  all members and beneficiaries,
excluding the liability on account  of  future  increased-take-home  pay
contributions,  if  any,  and the liability for benefits attributable to
the annuity savings fund and to the variable annuity savings fund.
(B) From such total liability computed pursuant  to  sub-item  (A)  of
this item, there shall be subtracted the sum of:
(1)  the present value, as of June thirtieth, nineteen hundred eighty,
of all future normal costs of the retirement system,  computed  pursuant
to  the  entry  age normal cost method of determining such normal costs;
and
(2) the present value, as  of  such  June  thirtieth,  of  all  future
installments  of the balance sheet liability contribution (as defined in
subparagraph sixteen of this paragraph); and
(3) the present value, as of such June thirtieth, of all then required
future payments, pursuant to subdivision six of  section  seven  of  the
rules   and   regulations,  of  installments  of  losses  in  excess  of
installments of gains on dispositions of securities within  the  meaning
of such subdivision; and
(4)  the  present  value,  as of such June thirtieth, of future member
contributions of members subject to article fourteen of  the  retirement
and social security law; and
(5)  the  total funds on hand as of such June thirtieth, excluding the
amount in the annuity savings fund and variable  annuity  savings  fund,
but  including  the amount of any unpaid moneys appropriated pursuant to
section nine of the rules and regulations.
(iii) (A) If the amount computed pursuant to sub-item (B) of item (ii)
of this subparagraph is larger than  the  amount  computed  pursuant  to
sub-item  (G)  of  item (ii) of subparagraph five of this paragraph, the
latter amount shall  be  subtracted  from  the  former  amount  and  the
remainder resulting from such subtraction shall constitute a charge.
(B)  If  the  amount computed pursuant to sub-item (B) of item (ii) of
this subparagraph is  smaller  than  the  amount  computed  pursuant  to
sub-item  (G)  of  item (ii) of subparagraph five of this paragraph, the
former amount shall  be  subtracted  from  the  latter  amount  and  the
remainder resulting from such subtraction shall constitute a credit.
(iv)  (A)  If  the  remainder  computed pursuant to item (iii) of this
subparagraph is a charge, the nineteen hundred eighty  unfunded  accrued
liability adjustment shall be an amount which, if paid to the contingent
reserve  fund  in  thirty  equal  annual  installments,  commencing with
payment   of   a  first  installment  in  the  city's  nineteen  hundred
eighty--nineteen hundred eighty-one fiscal year, would be the  actuarial
equivalent,  on  the basis of seven and one-half per centum interest per
annum, of such remainder.
(B)  If  the  remainder  computed  pursuant  to  item  (iii)  of  this
subparagraph  is  a credit, the nineteen hundred eighty unfunded accrued
liability adjustment shall be an amount which,  if  credited  in  thirty
equal  annual  installments  (the  first  of which installments is to be
credited  in  the  city's  nineteen  hundred  eighty--nineteen   hundred
eighty-one  fiscal  year) in reduction of the amounts which the board of
education would otherwise be required to pay to the  contingent  reserve
fund  pursuant  to  items  (i),  (iii),  (iv),  (v),  (vi)  and (vii) of
subparagraph two of this paragraph, would be the  actuarial  equivalent,
on  the  basis  of  seven and one-half per centum interest per annum, of
such remainder.
(v) (A) With respect to determination of the amount  of  contributions
payable  to  the  contingent reserve fund in each of the city's nineteen
hundred  eighty--nineteen  hundred  eighty-one  and   nineteen   hundred
eighty-one--nineteen   hundred   eighty-two  fiscal  years,  the  annual
installment of the nineteen hundred eighty  unfunded  accrued  liability
adjustment  computed  pursuant  to  item  (iv) of this subparagraph (6),
which installment is applicable to such fiscal years, shall  be  applied
as  a  charge  or  a  credit,  as  the  case may be, in relation to such
contributions payable in such fiscal year.
(B) With respect to  determination  of  the  amount  of  contributions
payable  to  the  contingent  reserve  fund  in  each  city  fiscal year
occurring during the period beginning on July  first,  nineteen  hundred
eighty-two  and ending on June thirtieth, nineteen hundred eighty-eight,
the nineteen hundred eighty unfunded accrued liability adjustment  shall
be  an  amount which, if paid (if a charge) or credited (if a credit) in
twenty-eight equal annual installments, commencing  with  a  payment  or
credit,   as   the   case   may  be,  in  the  city's  nineteen  hundred
eighty-two--nineteen hundred eighty-three  fiscal  year,  would  be  the
actuarial  equivalent,  on  the  basis  of eight per centum interest per
annum, of the present value, as  of  June  thirtieth,  nineteen  hundred
eighty-two  on  the  basis of seven and one-half per centum interest per
annum, of those installments of the  nineteen  hundred  eighty  unfunded
accrued  liability  adjustment  computed  pursuant  to item (iv) of this
subparagraph (6), which installments  are  hypothetically  allocated  by
such   item  (iv)  to  designated  city  fiscal  years  succeeding  June
thirtieth, nineteen hundred eighty-two.
(C) With respect to  determination  of  the  amount  of  contributions
payable  to  the  contingent  reserve  fund  in  each  city  fiscal year
occurring during the period beginning on July  first,  nineteen  hundred
eighty-eight  and  ending  on  June  thirtieth,  two  thousand  ten, the
nineteen hundred eighty unfunded accrued liability adjustment  shall  be
an  amount  which,  when paid (if a charge) or credited (if a credit) in
twenty-two equal annual  installments,  commencing  with  a  payment  or
credit,   as   the   case   may  be,  in  the  city's  nineteen  hundred
eighty-eight--nineteen hundred eighty-nine fiscal  year,  shall  be  the
actuarial  equivalent,  on the basis of eight and one-quarter per centum
interest per annum, of the present value, as of June thirtieth, nineteen
hundred eighty-eight on the basis  of  eight  per  centum  interest  per
annum,  of  those  installments  of the nineteen hundred eighty unfunded

accrued liability adjustment computed pursuant to sub-item (B)  of  this
item  (v),  which  installments  are  hypothetically  allocated  by such
sub-item (B) to designated city fiscal years succeeding June  thirtieth,
nineteen hundred eighty-eight.
(D)  With  respect  to  determination  of  the amount of contributions
payable to the contingent reserve fund in each of such city fiscal years
referred to in sub-item (B) or sub-item (C) of this item (v), the annual
installment of the nineteen hundred eighty  unfunded  accrued  liability
adjustment  computed  pursuant  to  sub-item (B) or sub-item (C) of this
item (v), which installment is applicable to such fiscal year, shall  be
applied  as  a charge or credit, as the case may be, in relation to such
contributions payable in such fiscal year.
(vi) (A) The nineteen hundred eighty-two  unfunded  accrued  liability
adjustment shall be an amount determined as prescribed in sub-items (B),
(C), (D) and (E) of this item (vi).
(B)  Upon  the  basis  of  the  actuarial  tables in effect as of June
thirtieth,  nineteen  hundred  eighty-one  for  valuation  purposes  and
interest  at  the rate of seven and one-half per centum per annum, there
shall be determined, as of June thirtieth, nineteen hundred  eighty-two,
the  amount of the actuarial accrued liability of the retirement system,
computed pursuant to the entry age normal cost  method  of  ascertaining
such actuarial accrued liability.
(C)  Upon  the  basis  of  the  actuarial  tables in effect as of June
thirtieth,  nineteen  hundred  eighty-two  for  valuation  purposes  and
interest  at  the  rate  of  eight  per centum per annum, there shall be
determined, as of  June  thirtieth,  nineteen  hundred  eighty-two,  the
amount  of  the  actuarial  accrued  liability of the retirement system,
computed pursuant to the entry age normal cost  method  of  ascertaining
such actuarial accrued liability.
(D)  With  respect  to  determination  of  the amount of contributions
payable to  the  contingent  reserve  fund  in  each  city  fiscal  year
occurring  during  the  period beginning on July first, nineteen hundred
eighty-two and ending on June thirtieth, nineteen hundred  eighty-eight,
the  nineteen  hundred  eighty-two unfunded accrued liability adjustment
shall be the applicable installments of an amount which, if credited  in
thirty  equal annual installments (the first of which installments is to
be credited in the city's nineteen hundred eighty-two--nineteen  hundred
eighty-three fiscal year) in reduction of the amounts which the board of
education  would  otherwise be required to pay to the contingent reserve
fund pursuant to items (i), (iii), (iv), (vi) and (vii) of  subparagraph
(2)  of  paragraph (c) of this subdivision sixteen or otherwise pursuant
to law, would be the actuarial equivalent, on the  basis  of  eight  per
centum interest per annum, of the excess of the amount computed pursuant
to  sub-item  (B) of this item (vi) over the amount computed pursuant to
sub-item (C) of this item (vi).
(E) With respect to  determination  of  the  amount  of  contributions
payable  to  the  contingent  reserve  fund  in  each  city  fiscal year
occurring during the period beginning on July  first,  nineteen  hundred
eighty-eight  and  ending  on  June  thirtieth, two thousand twelve, the
nineteen hundred eighty-two unfunded accrued liability adjustment  shall
be   an   amount  which,  when  credited  in  twenty-four  equal  annual
installments (the first of which installments is to be credited  in  the
city's   nineteen  hundred  eighty-eight--nineteen  hundred  eighty-nine
fiscal year) in reduction of the amounts which the  board  of  education
would  otherwise  be  required  to  pay  to  the contingent reserve fund
pursuant to items (i), (iii), (iv), (vi) and (vii) of  subparagraph  (2)
of  paragraph  (c)  of this subdivision sixteen or otherwise pursuant to
law, shall be the actuarial  equivalent,  on  the  basis  of  eight  and

one-quarter  per  centum interest per annum, of the present value, as of
June thirtieth, nineteen hundred eighty-eight on the basis of eight  per
centum interest per annum, of those installments of the nineteen hundred
eighty-two  unfunded  accrued  liability adjustment computed pursuant to
sub-item (d) of this item (vi), which  installments  are  hypothetically
allocated   by  such  sub-item  (D)  to  designated  city  fiscal  years
succeeding June thirtieth, nineteen hundred eighty-eight.
(vii) (A) The nineteen hundred eighty-five unfunded accrued  liability
adjustment shall be an amount determined as prescribed in sub-items (B),
(C), (D) and (E) of this item (vii).
(B)  Upon  the  basis  of the actuarial tables in effect for valuation
purposes with  respect  to  determination  of  the  normal  contribution
payable  to  the  contingent reserve fund in the city's nineteen hundred
eighty-four--nineteen hundred eighty-five fiscal year  and  interest  at
the  rate of eight per centum per annum, there shall be determined as of
June  thirtieth,  nineteen  hundred  eighty-five,  the  amount  of   the
actuarial  accrued liability of the retirement system, computed pursuant
to the entry age normal  cost  method  of  ascertaining  such  actuarial
accrued liability.
(C)  Upon  the  basis  of the actuarial tables in effect for valuation
purposes with  respect  to  determination  of  the  normal  contribution
payable  to  the  contingent reserve fund in the city's nineteen hundred
eighty-five--nineteen hundred eighty-six fiscal year and interest at the
rate of eight per centum per annum, there shall  be  determined,  as  of
June   thirtieth,  nineteen  hundred  eighty-five,  the  amount  of  the
actuarial accrued liability of the retirement system, computed  pursuant
to  the  entry  age  normal  costs method of ascertaining such actuarial
accrued liability.
(D) With respect to  determination  of  the  amount  of  contributions
payable  to  the  contingent  reserve  fund  in  each  city  fiscal year
occurring during the period beginning on July  first,  nineteen  hundred
eighty-five and ending on June thirtieth, nineteen hundred eighty-eight,
the  nineteen  hundred eighty-five unfunded accrued liability adjustment
shall be the applicable installments of an amount which, if credited  in
thirty  equal annual installments (the first of which installments is to
be credited in the city's nineteen hundred eighty-five--nineteen hundred
eighty-six fiscal year) in reduction of the amounts which the  board  of
education  would  otherwise be required to pay to the contingent reserve
fund pursuant to items (i), (iii), (iv), (vi) and (vii) of  subparagraph
(2)  of  this  paragraph  (c) or otherwise pursuant to law, would be the
actuarial equivalent, on the basis of  eight  per  centum  interest  per
annum,  of the excess of the amount computed pursuant to sub-item (B) of
this item (vii) over the amount computed pursuant  to  sub-item  (C)  of
this item (vii).
(E)  With  respect  to  determination  of  the amount of contributions
payable to  the  contingent  reserve  fund  in  each  city  fiscal  year
occurring  during  the  period beginning on July first, nineteen hundred
eighty-eight and ending on June thirtieth,  two  thousand  fifteen,  the
nineteen hundred eighty-five unfunded accrued liability adjustment shall
be   an  amount  which,  when  credited  in  twenty-seven  equal  annual
installments (the first of which installments is to be credited  in  the
city's   nineteen  hundred  eighty-eight--nineteen  hundred  eighty-nine
fiscal year) in reduction of the amounts which the  board  of  education
would  otherwise  be  required  to  pay  to  the contingent reserve fund
pursuant to items (i), (iii), (iv), (vi) and (vii) of  subparagraph  (2)
of  this  paragraph  (c)  or  otherwise  pursuant  to  law, shall be the
actuarial equivalent, on the basis of eight and one-quarter  per  centum
interest per annum, of the present value, as of June thirtieth, nineteen

hundred  eighty-eight  on  the  basis  of  eight per centum interest per
annum,  of  those  installments  of  the  nineteen  hundred  eighty-five
unfunded  accrued liability adjustment computed pursuant to sub-item (D)
of  this  item (vii), which installments are hypothetically allocated by
such sub-item (D) to designated fiscal years succeeding June  thirtieth,
nineteen hundred eighty-eight.
(7) The balance sheet liability as of June thirtieth, nineteen hundred
seventy-four  shall be the sum of twenty-five million, eight hundred two
thousand, nine hundred seventy-two dollars ($25,802,972), consisting  of
the sum of:
(i)  the  discounted  value,  as  of  June thirtieth, nineteen hundred
seventy-four, of the  sum  of  eleven  million,  fifty  thousand,  eight
hundred eighty-eight dollars ($11,050,888), which constituted the amount
payable  to  the  contingent reserve fund in the city's nineteen hundred
seventy-four--nineteen hundred seventy-five fiscal year by the board  of
education in fulfillment of its obligations to make contributions to the
retirement  system  payable  in such fiscal year, such discounting being
calculated on the basis of interest at the rate of five and one-half per
centum  per  annum  and  a  discount  period  of  six  months  extending
retroactively  from January first, nineteen hundred seventy-five to June
thirtieth, nineteen hundred seventy-four and such discounted value being
the sum of ten million, seven hundred fifty-eight thousand, nine hundred
seventy-nine dollars ($10,758,979); and
(ii) the discounted value, as  of  June  thirtieth,  nineteen  hundred
seventy-four, of the sum of sixteen million, three hundred two thousand,
thirty-eight dollars ($16,302,038), which constituted the amount payable
into  the  contingent  reserve  fund  in  the  city's  nineteen  hundred
seventy-five--nineteen hundred seventy-six fiscal year by the  board  of
education in fulfillment of its obligations to make contributions to the
retirement  system  payable  in such fiscal year, such discounting being
calculated on the basis of interest at the rate of five and one-half per
centum per annum and a discount  period  of  eighteen  months  extending
retroactively  from  January first, nineteen hundred seventy-six to June
thirtieth, nineteen hundred  seventy-four,  and  such  discounted  value
being  the  sum  of  fifteen million, forty-three thousand, nine hundred
ninety-three dollars ($15,043,993).
(8) The balance sheet liability as of each June  thirtieth  succeeding
June  thirtieth,  nineteen  hundred  seventy-four  to and including June
thirtieth, nineteen hundred eighty, shall be determined as provided  for
in subparagraphs nine to sixteen, inclusive, of this paragraph.
(9)  To the amount of the balance sheet liability as of June thirtieth
next preceding the June thirtieth (which last-mentioned  June  thirtieth
is  hereinafter referred to as the "subject June thirtieth") as of which
the balance sheet liability is  being  determined  as  provided  for  in
subparagraph  eight  of  this paragraph, there shall be added one year's
interest on such amount at the rate of five and one-half per centum  per
annum.
(10) With respect to the city's fiscal year ending on the subject June
thirtieth  (hereinafter  referred to as the "subject fiscal year") there
shall  be  added  together  the  contribution   components   hereinafter
specified  in  this  subparagraph, which components, for the purposes of
subparagraphs eight  to  sixteen,  inclusive,  of  this  paragraph,  are
hypothetically  deemed to have accrued in the subject fiscal year and to
have been payable therein, as follows:
(i) the amount of the normal contribution for balance sheet  liability
purposes  (as  defined  in  subparagraph  five  of paragraph (a) of this
subdivision); and
(ii) the amount of the applicable installment of the unfunded  accrued
liability  contribution for balance sheet liability purposes (as defined
in subparagraph six of paragraph (a) of this subdivision); and
(iii)  the  amount  of  the  annual  contribution,  for  balance sheet
liability purposes, on account of amortization of losses on dispositions
of certain securities within the meaning of subdivision six  of  section
seven  of the rules and regulations (as defined in subparagraph seven of
paragraph (a) of this subdivision); and
(iv)  the  amount  of  the  annual  contribution,  for  balance  sheet
liability  purposes,  on account of reserves-for-increased-take-home pay
(as defined in subparagraph eight of paragraph (a) of this subdivision);
and
(v) the amount of the annual military  law  contribution  for  balance
sheet  liability  purposes (as defined in subparagraph nine of paragraph
(a) of this subdivision).
(11)  To  the  amount  resulting  from  the  addition  prescribed   by
subparagraph  ten  of  this paragraph (c), there shall be added interest
thereon at the rate of five and  one-half  per  centum  per  annum  from
January  first  of  the  subject  fiscal  year to June thirtieth of such
fiscal year.
(12) The  amount  computed  pursuant  to  subparagraph  nine  of  this
paragraph  in  relation  to  the  balance  sheet  liability  as  of June
thirtieth next preceding the subject June thirtieth (together  with  one
year's  interest  on such balance sheet liability) shall be added to the
amount computed pursuant  to  subparagraph  ten  of  this  paragraph  in
relation to the subject fiscal year.
(13)  From the amount computed pursuant to subparagraph twelve of this
paragraph, there shall be subtracted the sum of:
(i) The total amount of the sums paid to the contingent  reserve  fund
during  the  subject fiscal year by the board of education on account of
its obligations, which accrued during  the  city's  second  fiscal  year
preceding the subject fiscal year to provide:
(A)  the  normal contribution payable in the subject fiscal year under
the provisions of subparagraphs two and three of this paragraph, as then
in effect; and
(B) the installment of the  deficiency  contribution  (as  defined  in
subparagraph   ten   of  paragraph  (a)  of  this  subdivision)  or  the
installment of the original unfunded accrued liability contribution  (as
defined in item (i) of subparagraph five of this paragraph), as the case
may be, payable in the subject fiscal year; and
(C)  the  amount  of  the  contribution  on  account  of amortization,
pursuant  to  subdivision  six  of  section  seven  of  the  rules   and
regulations, of losses on dispositions of certain securities (as defined
in  subparagraph eleven of paragraph (a) of this subdivision) payable in
the subject fiscal year; and
(D) the amount payable in  the  subject  fiscal  year  on  account  of
reserves-for-increased-take-home pay; and
(E) the amount payable in the subject fiscal year in behalf of members
pursuant to subdivision twenty of section two hundred forty-three of the
military law; plus
(ii)  interest  on  such  total amount referred to in item (i) of this
subparagraph thirteen at the rate of five and one-half  per  centum  per
annum  from  January  first of the subject fiscal year to June thirtieth
thereof.
(14) The  remainder  resulting  from  the  subtraction  prescribed  by
subparagraph  thirteen  of  this  paragraph  shall  be the balance sheet
liability as of June thirtieth of the subject fiscal year.
(15) The balance  sheet  liability  as  of  June  thirtieth,  nineteen
hundred  eighty  shall  be  the  amount  resulting  from  the successive
computations of the balance sheet liability as of  each  June  thirtieth
succeeding  June  thirtieth,  nineteen  hundred  seventy-four  up to and
including  June  thirtieth,  nineteen  hundred  eighty  as prescribed by
subparagraphs eight to fourteen, inclusive, of this paragraph.
(16) The balance sheet liability contribution payable  in  the  city's
nineteen  hundred  eighty-one--nineteen  hundred  eighty-two fiscal year
shall be the first annual installment of an amount which, if paid to the
contingent reserve fund in forty equal annual  installments,  commencing
with  payment  of  a  first  installment  in the city's nineteen hundred
eighty-one--nineteen  hundred  eighty-two  fiscal  year,  would  be  the
actuarial equivalent, as of June thirtieth, nineteen hundred eighty-one,
on  the basis of seven and one-half per centum interest per annum, of an
amount equal to the  balance  sheet  liability  as  of  June  thirtieth,
nineteen hundred eighty.
(16-a)  The  balance sheet liability contribution payable in each city
fiscal year during the period beginning on July first, nineteen  hundred
eighty-two  and  ending on June thirtieth, nineteen hundred eighty-eight
shall be one annual installment of an  amount  which,  if  paid  to  the
contingent  reserve  fund  in  thirty-nine  equal  annual  installments,
commencing  with  a  first  payment  in  the  city's  nineteen   hundred
eighty-two--nineteen  hundred  eighty-three  fiscal  year,  would be the
actuarial equivalent, as of June thirtieth, nineteen hundred eighty-two,
on the basis of eight per centum interest  per  annum,  of  the  present
value, as of June thirtieth, nineteen hundred eighty-two on the basis of
seven  and one-half per centum interest per annum, of those installments
of  the  balance  sheet  liability  contribution  computed  pursuant  to
subparagraph   (16)  of  this  paragraph  (c),  which  installments  are
hypothetically allocated by such subparagraph (16)  to  designated  city
fiscal years succeeding June thirtieth, nineteen hundred eighty-two.
(16-b)  The  balance sheet liability contribution payable in each city
fiscal year during the period beginning on July first, nineteen  hundred
eighty-eight and ending on June thirtieth, two thousand twenty-one shall
be  one  annual  installment  of  an  amount  which,  when  paid  to the
contingent reserve  fund  in  thirty-three  equal  annual  installments,
commencing   with  a  first  payment  in  the  city's  nineteen  hundred
eighty-eight--nineteen hundred eighty-nine fiscal  year,  shall  be  the
actuarial   equivalent,   as   of   June   thirtieth,  nineteen  hundred
eighty-eight, on the basis of eight and one-quarter per centum  interest
per  annum, of the present value, as of June thirtieth, nineteen hundred
eighty-eight on the basis of eight per centum  interest  per  annum,  of
those  installments of the balance sheet liability contribution computed
pursuant  to  subparagraph  (16-a)  of   this   paragraph   (c),   which
installments are hypothetically allocated by such subparagraph (16-a) to
designated city fiscal years succeeding June thirtieth, nineteen hundred
eighty-eight.
(17) Notwithstanding any provision of the rules and regulations or any
other  provision  of law to the contrary, whenever the retirement board,
on the recommendation  of  the  actuary,  shall  determine  that  it  is
necessary to increase the reserves held in the annuity reserve fund, the
pension reserve fund or the pension fund, such board may direct that the
amount  so  needed  shall  be  transferred  thereto  from the contingent
reserve fund.
(d) (1) During the period commencing on July first,  nineteen  hundred
seventy-seven  and  ending  on  June thirtieth, nineteen hundred eighty,
special interest at the rate of one and one-half per centum  per  annum,
compounded  annually,  shall  be  allowed with respect to the individual

account of each member in the annuity savings  fund  of  the  retirement
system.
(2)  Subject  to  the provisions of paragraph (f) of this subdivision,
during the period commencing on July first, nineteen hundred eighty  and
ending  on June thirtieth, nineteen hundred eighty-two, special interest
at the rate of three and  one-half  per  centum  per  annum,  compounded
annually,  shall  be  allowed  with respect to the individual account of
each member in the annuity savings fund.
(3)  (i)  Subject  to  the  provisions  of  paragraph  (f)   of   this
subdivision,  during  the  period  commencing  on  July  first, nineteen
hundred eighty-two and ending on  July  thirty-first,  nineteen  hundred
eighty-three, special interest at the rate of four per centum per annum,
compounded  annually,  shall  be  allowed with respect to the individual
account of each member in the annuity savings fund.
(ii) Subject to the provisions of paragraph (f) of  this  subdivision,
during   the   period  commencing  on  August  first,  nineteen  hundred
eighty-three and ending on June thirtieth, nineteen hundred eighty-five,
special interest at the rate of one per  centum  per  annum,  compounded
annually,  shall  be  allowed  with respect to the individual account of
each member in the annuity savings fund.
(iii) Subject to the provisions of paragraph (f) of this  subdivision,
during the period commencing on July first, nineteen hundred eighty-five
and  ending  on  June  thirtieth, nineteen hundred eighty-eight, special
interest at the rate of one per centum per annum,  compounded  annually,
shall  be  allowed with respect to the individual account of each member
in the annuity savings fund.
(iv) Subject to the provisions of paragraph (f) of  this  subdivision,
during   the   period   commencing   on  July  first,  nineteen  hundred
eighty-eight and ending on  June  thirtieth,  nineteen  hundred  ninety,
special  interest  at  the  rate  of  one and one-quarter per centum per
annum, compounded  annually,  shall  be  allowed  with  respect  to  the
individual account of each member in the annuity savings fund.
(4)  Such  special interest provided for by subparagraphs (1), (2) and
(3) of this paragraph shall be credited to such  individual  account  of
each  member entitled thereto in the same manner and at the same time as
regular interest is required to be credited to such account with respect
to the  same  period  of  time.  Such  special  interest  shall  not  be
considered  in  determining  rates  of contributions of members. Nothing
contained in this paragraph shall be  construed  as  applicable  to  any
member  who  is subject to the provisions of article fourteen or article
fifteen of the retirement and social security law.
(e)  (1)  Subject  to  the  provisions  of  paragraph  (f)   of   this
subdivision,  in  determining the reserve-for-increased-take-home-pay of
each member entitled to such a reserve, additional interest at the  rate
of  one  and  one-half per centum per annum compounded annually shall be
included for each city fiscal year occurring during the period beginning
on July  first,  nineteen  hundred  seventy-seven  and  ending  on  June
thirtieth, nineteen hundred eighty.
(2) Subject to the provisions of paragraph (f) of this subdivision, in
determining   the  reserve-for-increased-take-home-pay  of  each  member
entitled to such a reserve, additional interest at the rate of three and
one-half per centum per annum compounded annually shall be included  for
each  city  fiscal  year  occurring  during the period beginning on July
first, nineteen hundred eighty and ending on  June  thirtieth,  nineteen
hundred eighty-two.
(3) (i) Subject to the provisions of paragraph (f) of this subdivision
in  determining  the  reserve-for-increased-take-home-pay of each member
entitled to such a reserve, additional interest at the rate of four  per

centum  per  annum  compounded  annually shall be included for each city
fiscal year and portion thereof occurring during the period beginning on
July first, nineteen hundred eighty-two and ending on July thirty-first,
nineteen hundred eighty-three.
(ii)  Subject  to the provisions of paragraph (f) of this subdivision,
in determining the reserve-for-increased-take-home-pay  of  each  member
entitled  to  such a reserve, additional interest at the rate of one per
centum per annum compounded annually shall be  included  for  each  city
fiscal year and portion thereof occurring during the period beginning on
August   first,   nineteen  hundred  eighty-three  and  ending  on  June
thirtieth, nineteen hundred eighty-five.
(iii) Subject to the provisions of paragraph (f) of this  subdivision,
in  determining  the  reserve-for-increased-take-home-pay of each member
entitled to such a reserve, additional interest at the rate of  one  per
centum  per  annum  compounded  annually shall be included for each city
fiscal year  occurring  during  the  period  beginning  on  July  first,
nineteen  hundred  eighty-five  and  ending  on June thirtieth, nineteen
hundred eighty-eight.
(iv) Subject to the provisions of paragraph (f) of  this  subdivision,
in  determining  the  reserve-for-increased-take-home-pay of each member
entitled to such a reserve, additional interest at the rate of  one  and
one-quarter  per  centum per annum compounded annually shall be included
for each city fiscal year occurring during the period beginning on  July
first,  nineteen  hundred  eighty-eight  and  ending  on June thirtieth,
nineteen hundred ninety.
(4) Additional interest shall not be considered in  determining  rates
of  contribution  of  members.  Nothing  contained in this paragraph (e)
shall be construed as applicable to any member who  is  subject  to  the
provisions  of article fourteen or article fifteen of the retirement and
social security law.
(f) (1) The provisions of subparagraph (2) of paragraph  (d)  of  this
subdivision  and  of  subparagraphs (1) and (2) of paragraph (e) of this
subdivision, to the extent that any of such provisions grants special or
additional interest, as the case may be, for any period  prior  to  July
thirty-first, nineteen hundred eighty-two, shall not apply to any person
who  was  not  a member on such July thirty-first and shall not apply to
any person to whom, on such July  thirty-first,  a  deferred  retirement
allowance  or  any  part  of  such  a  retirement  allowance was payable
pursuant to the provisions  of  section  thirty-two  of  the  rules  and
regulations.  Nothing  contained  in  paragraphs  (d)  and  (e)  of this
subdivision  shall  be  construed  as  granting  special  or  additional
interest,  as  the case may be, to any person with respect to any period
wherein such person was not  a  member  entitled  to  be  credited  with
regular  interest  for  the same period or was not a discontinued member
entitled to be credited, as a discontinued member, with regular interest
for the same period.
(2) (i) The provisions of item (i) of subparagraph  (3)  of  paragraph
(d)  of  this  subdivision  sixteen, to the extent that such item grants
special interest for any period prior to  December  sixteenth,  nineteen
hundred  eighty-two,  and the provisions of item (i) of subparagraph (3)
of paragraph (e) of this subdivision,  to  the  extent  that  such  item
grants  additional interest for any period prior to such date, shall not
apply to any person who was not a member on  such  date  and  shall  not
apply  to  any  person  to  whom,  on  such  date, a deferred retirement
allowance or any  part  of  such  a  retirement  allowance  was  payable
pursuant  to  the  provisions  of  section  thirty-two  of the rules and
regulations.
(ii) The provisions of item (iv) of subparagraph (3) of paragraph  (d)
of this subdivision sixteen, to the extent that such item grants special
interest for any period prior to the date of enactment of this item (ii)
of  this  subparagraph  (2)  of  this  paragraph  (f)  (as  such date is
certified,  pursuant  to  section forty-one of the legislative law), and
the provisions of item (iv) of subparagraph (3) of paragraph (e) of this
subdivision, to the extent that such item grants additional interest for
any period prior to such date shall not apply to any person who was  not
a member on such date and shall not apply to any person to whom, on such
date,  a  deferred retirement allowance or any part of such a retirement
allowance was payable pursuant to the provisions of  section  thirty-two
of the rules and regulations.
(3)  Nothing  contained  in paragraphs (d) and (e) of this subdivision
shall be construed as granting special or additional  interest,  as  the
case  may  be,  to  any  person  with respect to any period wherein such
person was not a member entitled to be credited  with  regular  interest
for  the  same  period  or  was not a discontinued member entitled to be
credited, as a discontinued member, with regular interest for  the  same
period.
(g)  (1)  As  used  in this paragraph, the term "funds" shall mean the
funds created in  accordance  with  the  provisions  of  the  rules  and
regulations  other  than  the variable annuity funds provided for by the
rules and regulations.
(2) Subject to the provisions of subparagraph (4) of  this  paragraph,
in  addition  to  regular  interest annually allowed for the period from
July first, nineteen hundred seventy-seven to June  thirtieth,  nineteen
hundred  eighty on the mean amount for the preceding year in each of the
funds created in  accordance  with  the  provisions  of  the  rules  and
regulations, there shall be annually allowed with respect to such period
supplementary  interest  at  the rate of one and one-half per centum per
annum on such mean amount for the preceding year in each of such  funds.
Such  supplementary interest shall be annually credited to such funds at
the same time and in the same manner as regular interest was credited to
such funds with respect to such period.
(3) Subject to the provisions of subparagraph (4) of  this  paragraph,
in  addition  to  regular  interest annually allowed for the period from
July first, nineteen hundred eighty to June thirtieth, nineteen  hundred
eighty-two  on  the  mean  amount  for the preceding year in each of the
funds created in  accordance  with  the  provisions  of  the  rules  and
regulations, there shall be annually allowed with respect to such period
supplementary  interest at the rate of three and one-half per centum per
annum on such mean amount for the preceding year in each of such  funds.
Such  supplementary interest shall be annually credited to such funds at
the same time and in the same manner as regular interest is credited  to
such funds with respect to such period.
(4)  (i)  Subject  to  the  provisions  of  subparagraph  (5)  of this
paragraph (g), in addition to regular interest annually allowed for  the
period   from   July   first,   nineteen   hundred  eighty-two  to  July
thirty-first, nineteen hundred eighty-three on the mean amount  for  the
preceding  year in each of the funds provided for in accordance with the
provisions of the rules and regulations, there shall be annually allowed
with respect to such period supplementary interest at the rate  of  four
per  centum per annum on such mean amount for the preceding year in each
of such funds.  Such supplementary interest shall be  annually  credited
to  such  funds  at  the  same  time  and  in the same manner as regular
interest is credited to such funds with respect to such period.
(ii) Subject to the provisions of subparagraph (5) of this  paragraph,
in  addition  to  regular  interest annually allowed for the period from

August first, nineteen hundred eighty-three to June thirtieth,  nineteen
hundred eighty-five on the mean amount for the preceding year in each of
the  funds  provided  for in accordance with the provisions of the rules
and  regulations,  there  shall be annually allowed with respect to such
period supplementary interest at the rate of one per centum per annum on
such mean amount for the preceding year in  each  of  such  funds.  Such
supplementary  interest  shall be annually credited to such funds at the
same time and in the same manner as regular interest is credited to such
funds with respect to such period.
(iii) Subject to the provisions of subparagraph (5) of this  paragraph
(g),  in  addition  to  regular interest annually allowed for the period
from  July  first,  nineteen  hundred  eighty-five  to  June  thirtieth,
nineteen  hundred eighty-eight on the mean amount for the preceding year
in each of the funds provided for in accordance with the  provisions  of
the  rules and regulations, there shall be annually allowed with respect
to such period supplementary interest at the rate of one per centum  per
annum  on such mean amount for the preceding year in each of such funds.
Such supplementary interest shall be annually credited to such funds  at
the  same time and in the same manner as regular interest is credited to
such funds with respect to such period.
(iv) Subject to the provisions of subparagraph (5) of  this  paragraph
(g),  in  addition  to  regular interest annually allowed for the period
from July  first,  nineteen  hundred  eighty-eight  to  June  thirtieth,
nineteen  hundred  ninety  on  the mean amount for the preceding year in
each of the funds provided for in accordance with the provisions of  the
rules  and  regulations, there shall be annually allowed with respect to
such period supplementary interest at the rate of  one  and  one-quarter
per  centum per annum on such mean amount for the preceding year in each
of such funds. Such supplementary interest shall be annually credited to
such funds at the same time and in the same manner as  regular  interest
is credited to such funds with respect to such period.
(5) The provisions of subparagraphs (2), (3) and (4) of this paragraph
shall  not  apply  to  or affect (i) the allowance of interest on or the
crediting of interest to accounts of members or discontinued members  in
the  annuity  saving  fund  or  (ii) the allowance of interest on or the
crediting of interest to reserves-for-increased-take-home-pay of members
or discontinued members or (iii) the determination of the amount of  any
benefit payable to any member or beneficiary.
(h-1)  The  allowance  of  special  interest,  additional interest and
supplementary interest, if any, with respect to any fiscal year  of  the
city  beginning on or after July first, nineteen hundred ninety shall be
governed by  the  applicable  provisions  of  section  13-638.2  of  the
administrative code of the city.
(h-2)  The  provisions  of  paragraph (d) of this subdivision, as such
paragraph applies to the contributions made by a member and the benefits
provided thereby,  shall  apply  separately  and  independently  to  the
tax-deferred  annuity  net contributions, if any, of such member and the
benefits provided thereby,  except  as  otherwise  provided  by  section
thirty-three of the rules and regulations.
(h-3)  The  provisions  of subdivisions f and h of section 13-638.2 of
the  administrative  code  of  the  city  (to  the  extent   that   such
subdivisions  f  and  h  apply  to  this  retirement  system),  as  such
subdivisions f and h apply to the contributions made by a member and the
benefits provided thereby, shall apply separately and  independently  to
the  tax-deferred  annuity net contributions, if any, of such member and
the benefits provided thereby, except as otherwise specified in  section
thirty-three of the rules and regulations.
(i)  (1)  Notwithstanding  the provisions of section nine of the rules
and regulations or any other provision of the rules and  regulations  or
any  other  law  to  the  contrary,  but  subject  to  the provisions of
subparagraphs two,  three  and  four  of  this  paragraph,  all  income,
interest  and dividends derived from deposits and investments authorized
by the rules and regulations, which income, interest and dividends  were
heretofore  or  are hereafter received during any fiscal year commencing
on or after July first, nineteen hundred eighty, shall be used  in  such
fiscal  year for the purposes hereinafter specified in this subparagraph
(to the extent that such income, interest and dividends  are  sufficient
for such purposes), in the order of priority herein stated, as follows:
(A)  first, to pay into the funds of the retirement system the amounts
of regular interest which are required to be paid  into  such  funds  in
such fiscal year by reason of being required to be allowed to such funds
pursuant  to the provisions of paragraph a of subdivision two of section
seven of the rules and regulations, and  to  pay  into  such  funds  the
amounts  of  supplementary  interest,  if any, required to be so paid in
such  fiscal  year  under  the  provisions  of  paragraph  (g)  of  this
subdivision,  and  to  pay  into the annuity savings fund the amounts of
special interest, if any, required to be so paid  in  such  fiscal  year
under  the  provisions  of paragraph (d) of this subdivision, and to pay
into the contingent reserve fund the amounts of additional interest,  if
any,  required  to  be  paid in such fiscal year under the provisions of
paragraph (e) of this subdivision;
(B) second, to pay into the contingent reserve fund the amount of  any
losses  in  excess  of  gains (i) which net losses the retirement system
sustained  during  such  fiscal  year  by  reason  of  sales  or   other
dispositions of securities, and (ii) for which net losses the retirement
system  is  required  to be reimbursed in such fiscal year, and (iii) to
which net losses subdivision six of  section  seven  of  the  rules  and
regulations,  relating  to graduated crediting of gains and amortization
of losses on dispositions of certain securities, does not apply;
(C) third, if the total amount of such income, interest and  dividends
received  during  such  fiscal  year  is  in  excess of the total amount
required to make, in such fiscal year, the payments prescribed by  items
(A)  and  (B)  of  this subparagraph, the amount of such excess shall be
paid into the contingent reserve fund and shall become  a  part  of  the
assets of such fund.
(2) (A) Notwithstanding any other provision of this subdivision or any
other  law to the contrary, the term "all income, interest and dividends
derived from deposits and investments", as used in paragraph (f) of this
subdivision (as such subdivision was in  effect  prior  to  July  first,
nineteen hundred eighty), shall be construed, in relation to disposition
of  all income, interest and dividends received by the retirement system
in each of the  city's  nineteen  hundred  seventy-six--nineteen-hundred
seventy-seven   and  nineteen  hundred  seventy-seven--nineteen  hundred
seventy-eight obligations  fiscal  years  (as  such  fiscal  years  were
defined  by  paragraph (a) of this subdivision prior to such July first)
as meaning the remainder  obtained  by  subtracting  from  such  income,
interest   and  dividends  the  sum  of  (i)  the  amounts  of  regular,
supplementary and special interest required to be allowed and paid  into
the  appropriate  funds  of  the  retirement  system in such fiscal year
pursuant to the applicable provision of subdivision two of section seven
of the rules and regulations and this subdivision and (ii) the amount of
any losses in excess of gains (1) which net losses were sustained by the
retirement system during such fiscal year  and  which  net  losses  were
sustained  by  reason  of sales or other dispositions of securities, and

(2) to which net losses the provisions of  subdivision  six  of  section
seven of the rules and regulations do not apply.
(B)   for  the  purposes  of  the  order  of  priority  governing  the
disposition of such remainder in the payment fiscal year with respect to
each such obligations fiscal year (as such disposition was prescribed by
the provisions of this subdivision as in effect during each such payment
fiscal year) the provisions of items (A) and (B) of subparagraph (i)  of
such  paragraph  (f)  shall  be deemed to have been inapplicable and the
order of priority for such disposition shall be first, the use set forth
in item (C) of such subparagraph, second, the use set forth in item  (D)
of  such  subparagraph,  third,  the  use  set forth in item (E) of such
subparagraph and  fourth,  the  use  set  forth  in  item  (F)  of  such
subparagraph,  as  such  items were in effect during such payment fiscal
year.
(3) (a) All income, interest and dividends  which  were  derived  from
deposits  and  investments  authorized  by the rules and regulations and
which  were  received  during  each  of  the  city's  nineteen   hundred
seventy-eight--nineteen   hundred   seventy-nine  and  nineteen  hundred
seventy-nine--nineteen hundred eighty fiscal years shall be used in each
such  fiscal  year  for  the  purposes  hereinafter   stated   in   this
subparagraph, in the order of priority herein stated, as follows:
(A)  first,  (i)  to  pay  into the funds of the retirement system the
amounts of regular interest which are required  to  be  paid  into  such
funds  in  such  fiscal year wherein such income, interest and dividends
were received, which interest is so payable by reason of being  required
to  be  allowed  to  such  funds  in  such  fiscal  year pursuant to the
provisions of paragraph a of subdivision two of  section  seven  of  the
rules  and  regulations  and  (ii) to pay into such funds the amounts of
supplementary interest required to be so paid in such fiscal year  under
the  applicable  provisions  of  paragraph  (d) of this subdivision, and
(iii) to pay into the  annuity  savings  fund  the  amounts  of  special
interest required to be so paid in such fiscal year under the applicable
provisions  of  paragraph  (d) of this subdivision, and (iv) to pay into
the contingent reserve fund the amounts of additional interest  required
to  be  paid  in  such  fiscal  year  under the applicable provisions of
paragraph (e) of this subdivision;
(B) second, to pay into the contingent reserve fund the amount of  any
losses  in  excess  of  gains (i) which net losses were sustained by the
retirement system during such fiscal year in which such income, interest
and dividends were received and  which  net  losses  were  sustained  by
reason  of sales or other dispositions of securities, and (ii) for which
net losses the retirement system is required to be  reimbursed  in  such
fiscal  year,  and  (iii) to which net losses subdivision six of section
seven of the rules and regulations, relating to graduated  crediting  of
gains  and amortization of losses on dispositions of certain securities,
does not apply; and
(C) third, to pay into the contingent reserve fund the amount, if any,
by which,
(i) the total of all losses  which  the  retirement  system  sustained
during  such  fiscal  year  by  reason of sales of securities within the
meaning of subdivision six of section seven of the rules and regulations
and which the board of education would otherwise be required to amortize
pursuant to such subdivision, exceeds
(ii) the total of all gains which were  realized  during  such  fiscal
year  by  reason  of  sales  of  securities  within  the meaning of such
subdivision and which would otherwise be required by such subdivision to
be credited in favor of the board of education in installments.
(b) If the  total  amount  of  such  income,  interest  and  dividends
received  during  each  such fiscal year referred to in item (a) of this
subparagraph is in excess of the total amount required to make,  in  the
same  fiscal year, the payments prescribed by sub-items (A), (B) and (C)
of  such  item  (a),  the  amount  of such excess shall be paid into the
contingent reserve fund as of June thirtieth of  such  fiscal  year  and
shall become a part of the assets of such fund as of such date.
(4)  Nothing  contained  in  subparagraphs  one, two and three of this
paragraph shall be construed  as  applicable  to  income,  interest  and
dividends resulting from deposits or investments made under the variable
annuity program of the retirement system.
(j)(1) The board of education or the New York city school construction
authority  shall  make  monthly  payments, in twelve equal installments,
with respect to the respective obligations which such board or authority
incurs to pay sums to the retirement system.
(2) In the city's nineteen hundred eighty--nineteen hundred eighty-one
fiscal year and in each city fiscal year thereafter, the  equal  monthly
payments  shall be in respect of obligations which accrue in such fiscal
year and shall be made in such fiscal year on or before the last day  of
each month.
(2-a)  Where  a  responsible  obligor  (as defined in paragraph ten of
subdivision a of section 13-638.2 of the administrative code of the city
of New York) is required to  make  payments  to  the  retirement  system
pursuant  to  applicable  provisions  of law in fiscal year two thousand
twelve--two thousand thirteen, and in any fiscal  year  thereafter,  and
the  provisions  of  this  paragraph  or  the  provisions  of  any other
applicable law do not otherwise specifically  require  such  responsible
obligor  to make such payments by a particular date or dates during such
fiscal year, such responsible obligor shall make  such  payments  either
(i)  in total on or before January first of such fiscal year, or (ii) in
twelve equal monthly installments, as determined by  the  actuary,  with
each  monthly  installment  to be paid on or before the last day of each
month.
(3) The retirement board  of  the  retirement  system  may  waive  the
requirements  of the foregoing provisions of this paragraph with respect
to time of payment to such system, provided that any such waiver of time
of payment in any instance shall not apply to  the  time  of  subsequent
payments unless there shall be a subsequent waiver.
17.  (a)  For  the  purposes of this subdivision, the terms "rules and
regulations" and "retirement system" shall have the meanings  set  forth
in  subparagraphs  three  and  four,  respectively,  of paragraph (a) of
subdivision sixteen of this section.
(b) The following terms, as used in this subdivision, shall  have  the
following  meanings,  unless  a different meaning is plainly required by
the context:
(1) "Member." Any person included in the membership of the  retirement
system as provided in section three of the rules and regulations.
(2)  "Actuarial equivalent benefit." Any benefit which pursuant to the
rules and  regulations  or  by  law  is  required  to  be  an  actuarial
equivalent  or  pursuant  to  the  rules  and  regulations  or by law is
required to be determined on the basis of an actuarial equivalent.
(3)(i)  "Seven  percent  member  for  actuarial   equivalent   benefit
purposes." A member who meets all of the following conditions:
(A)  paragraph  (c) of this subdivision (relating to the definition of
members to  whom  regular  interest  at  seven  per  centum  per  annum,
compounded annually, applies) applies to such member; and
(B)  an  actuarial  equivalent  benefit (other than a variable annuity
program benefit) has become payable by the retirement system  to  or  on
account of such member; and
(C) it is provided by a resolution adopted by the retirement board (A)
that  a mortality table which does not differentiate on the basis of sex
shall be used to  calculate  such  actuarial  equivalent  benefit  or  a
portion  of  such  benefit,  or  (B)  that the modified Option 1 pension
computation  formula  (as  defined  in  subparagraph  thirteen  of  this
paragraph) shall be used to calculate such actuarial equivalent benefit.
(ii)   Except  in  cases  to  which  the  modified  Option  1  pension
computation formula applies pursuant to  a  resolution  adopted  by  the
retirement  board, nothing contained in sub-item (C) of item (i) of this
subparagraph shall  be  construed  as  referring  to  or  including  any
calculation  of  an  actuarial  equivalent  benefit  (or portion of such
benefit) payable to any person where such  calculation  is  required  by
retirement   board   resolution   to  be  made  through  the  use  of  a
sex-differentiated mortality table.
(4)  "Tier  I  member."  A  member  whose  benefits  (other   than   a
supplemental  retirement  allowance)  are  prescribed  by  the rules and
regulations and who is not subject to the provisions of article  eleven,
article  fourteen  or  article  fifteen  of  the  retirement  and social
security law.
(5) "Tier II member." A member who is subject  to  the  provisions  of
article eleven of the retirement and social security law.
(6)  "Tier  III  member." A member who is subject to the provisions of
article fourteen of the retirement and social security law.
(7) "Tier IV member." A member who is subject  to  the  provisions  of
article fifteen of the retirement and social security law.
(8)  "Tier III member entitled to a vested benefit." A Tier III member
who is entitled to a deferred vested benefit  under  the  provisions  of
section five hundred sixteen of the retirement and social security law.
(9)  "Tier  IV  member entitled to a vested benefit." A Tier IV member
who is entitled to a deferred vested benefit  under  the  provisions  of
section six hundred twelve of the retirement and social security law.
(10)  "Education  service."  Service as a paid official or employee of
the board of education of the city of New York as now constituted, or of
any prior board, body or agency of which it is the successor  in  school
affairs  in  the  territory  now  comprised  within  the city and school
district  of  New  York,  or  the  New  York  city  school  construction
authority,  and  allowable  as provided in section four of the rules and
regulations.
(11)   "Discontinued   member." A   fifty-five-year-increased-service-
fraction  member (as defined in subdivision thirty-one of section two of
the rules and regulations) who has  discontinued  education-service  and
has  a  vested  right  to  a  deferred  retirement  allowance  under the
provisions of section thirty-two of the rules and regulations.
(12)  "Variable  annuity  program  benefit."  Any  benefit  under  the
variable  annuity program of the retirement system which is payable from
the variable annuity reserve fund or the variable pension reserve fund.
(13) (i) "Modified Option 1 pension computation formula."  The  method
of  computing  the pension component of an Option 1 retirement allowance
payable to a Tier I member and  the  amount  of  the  Option  1  benefit
payable  to  the  beneficiary  or  estate of such member who selected or
selects (or is deemed to have selected) Option  1  as  to  such  pension
component,   which  method  of  computation  is  as  prescribed  by  the
succeeding items of this subparagraph.
(ii) The initial reserve for such pension component shall be  computed
through  use of mortality tables which do not differentiate on the basis

of sex (hereinafter referred to as  "gender-neutral  mortality  tables")
and  an  interest assumption consisting of regular interest of seven per
centum per annum, compounded annually.
(iii)  Solely  for  the  purpose  of use as the minuend from which the
payments of such pension component to  such  member  are  subtracted  in
order to determine the amount of the Option 1 benefit payable, upon such
member's death, to such member's beneficiary or estate by reason of such
Option  1  selection  in relation to such pension component, the present
value of such member's maximum pension, as it was at the  time  of  such
member's retirement, shall be deemed to be the greatest of:
(A)  such  present  value  determined  on  the basis of gender-neutral
nortality tables  and  an  interest  assumption  consisting  of  regular
interest of seven per centum per annum, compounded annually; or
(B) such present value determined on the basis of the female mortality
tables  and  the  regular  interest  applicable to such member in effect
immediately prior to the date of enactment  (as  certified  pursuant  to
section forty-one of the legislative law) of this subdivision; or
(C)  such  present value determined on the basis of the male mortality
tables and the regular interest applicable  to  such  member  in  effect
immediately prior to the date of enactment of this subdivision.
(iv) The pension component payable to such member shall be computed on
the  basis of gender-neutral mortality tables and an interest assumption
consisting of regular interest of seven per centum per annum, compounded
annually, so that:
(A) the present value,  as  it  was  at  the  time  of  such  member's
retirement, of such component; plus
(B)  the  present  value,  as  it  was  at  the  time of such member's
retirement, of the amount payable to such member's Option 1  beneficiary
or estate upon the death of the member as provided for by the applicable
provisions of item (v) of this subparagraph;
shall  be  equal  to  the  Option  1 initial reserve determined for such
pension component with respect to such member pursuant to the provisions
of item (ii) of this subparagraph.
(v) Where such member dies before he or she has received  payments  on
account  of  such  pension  component equal to the present value of such
member's maximum pension as computed pursuant  to  item  (iii)  of  this
subparagraph,  the Option 1 benefit payable to the beneficiary or estate
of such deceased member,  by  reason  of  such  Option  1  selection  in
relation  to  such pension component, shall be the remainder obtained by
subtracting from such present value determined  pursuant  to  such  item
(iii)  in relation to such pension component, the total of such Option 1
payments on account of such pension component received by or payable  to
such member for the period prior to his or her death.
(vi)  In  relation to the Option 1 benefits determined pursuant to the
method of computation set  forth  in  this  subparagraph  by  reason  of
discontinuance of education service by a discontinued member, the phrase
"time  of such member's retirement" as set forth in items (iii) and (iv)
of this  subparagraph,  shall  be  deemed,  for  the  purposes  of  this
subparagraph,  to  mean  the  date  of  commencement  of  the retirement
allowance of such discontinued member.
(14) "Selection of mode of benefit." The choice made by a  member  (as
permitted  by  and  pursuant  to  the  requirements  of  the  rules  and
regulations or applicable law governing such choice by such  member)  as
to  whether  the  maximum amount of his or her retirement allowance or a
component thereof shall be payable or such  retirement  allowance  or  a
component  thereof  shall  be  payable  under  an option selected by the
member. The term "selection of mode of benefit"  shall  include  a  case
where  the  maximum  retirement allowance or a maximum component thereof

becomes  payable  because  of  a  member's  omission,  within  the  time
permitted  by the rules and regulations or applicable law, to select the
maximum benefit or an option.
(15)  "Best-of-three-computations method." (i) A method (as prescribed
by a resolution of the retirement board of the retirement system)  under
which a retirement allowance (or portion thereof) payable to a member is
required to be determined for such member so that:
(A) if such retirement allowance (or portion thereof) does not include
a  variable  annuity  program  benefit, such retirement allowance is the
greatest of:
(1) such retirement allowance (or portion thereof) determined  on  the
basis  of  gender-neutral  mortality  tables and regular interest at the
rate of seven per centum per annum; or
(2) such retirement allowance (or portion thereof) determined  on  the
basis  of female mortality tables and the regular interest applicable to
such member as of a time prescribed in such resolution; or
(3) such retirement allowance (or portion thereof) determined  on  the
basis  of  male  mortality tables and the regular interest applicable to
such member as of a time prescribed in such resolution; and
(B) if such retirement  allowance  (or  portion  thereof)  includes  a
variable  annunity  program  benefit,  then  the part of such retirement
allowance (or portion thereof) other than any variable  annuity  program
benefit is determined in the manner provided for by sub-item (A) of this
item  and  such variable annuity program benefit (or portion thereof) is
the greatest of:
(1)  such  variable  annuity  program  benefit  (or  portion  thereof)
determined on the basis of gender-neutral mortality tables and a uniform
rate  of  interest of four percent, as such rate of interest is provided
for in section forty-four of the rules and regulations; or
(2)  such  variable  annuity  program  benefit  (or  portion  thereof)
determined on the basis of female mortality tables and such uniform rate
of interest of four percent; or
(3)  such  variable  annuity  program  benefit  (or  portion  thereof)
determined on the basis of male mortality tables and such  uniform  rate
of interest of four percent.
(ii)  Where,  under  the  provisions  of  any  such  resolution of the
retirement board, the modified Option 1 pension computation formula  (as
defined  in  subparagraph  thirteen  of  this  paragraph) applies to any
member, the term, "best-of-three-computations  method,"  where  used  in
relation to such member, shall be deemed to include such modified Option
1  pension  computation formula, to the extent that such formula governs
the determination of the pension component (or portion thereof) of  such
member's retirement allowance.
(16)  "Person entitled to a recomputation of benefits." Any person who
meets all of the conditions stated below in this subparagraph:
(i) such person, during the period beginning on August first, nineteen
hundred eighty-three and ending on the date next preceding the  date  of
enactment   (as   such   termination  date  of  eligibility  for  option
re-selection (as defined in subparagraph nineteen  of  this  paragraph),
(A)  retired  or  retires  for  age  or service or superannuation or for
ordinary or accident disability, or  (B)  discontinued  or  discontinues
education  service  so  as  to  become  a  discontinued  member,  or (C)
terminated or terminates employment so as to become a  Tier  III  member
entitled  to  a  vested benefit or a Tier IV member entitled to a vested
benefit; and
(ii) such person's  retirement  allowance  (or  portion  thereof),  by
reason  of  such  retirement  or  discontinuance of education service or
termination of employment, is required by a resolution  adopted  by  the

retirement   board   to   be   re-determined   pursuant   to   (A)   the
best-of-three-computations method (as defined in subparagraph fifteen of
this paragraph), or  (B)  the  gender-neutral  computations  method  (as
defined in subparagraph eighteen of this paragraph); and
(iii)  a  first  payment  (if  such person, at the time of retirement,
discontinuance of education service or termination of employment, was  a
Tier  I  member, Tier II member or Tier III member) on account of his or
her retirement allowance (as such retirement  allowance  was  determined
prior  to  the  termination date of eligibility for option re-selection)
was made prior to  such  termination  date  of  eligibility  for  option
re-selection;  or  (if  such  person,  at  the  time  of  retirement, or
termination of employment, was a Tier IV member), his or  her  effective
date  of  retirement  (or date of commencement of benefits, if he or she
was a Tier IV member entitled to a vested benefit) occurred prior to the
termination date of eligibility for option re-selection.
(17) "Joint and survivor option." (i) Any option under which,  at  the
time when such option is selected, a choice is made which includes both:
(A) a benefit payable for the lifetime of the retired or vested member
by whom or in whose behalf such option is selected; and
(B) a benefit (1) which consists of an amount equal to or constituting
a percentage of such retired or vested member's benefit and (2) which is
payable  for  the  lifetime  of a designated beneficiary selected at the
time when such option is selected.
(ii) In any case where  an  option  described  in  item  (i)  of  this
subparagraph  includes  a  provision  prescribing that if the designated
beneficiary predeceases such retired or vested member, a maximum benefit
shall become payable to such member, such option shall  nevertheless  be
deemed to be a joint and survivor option.
(18)  "Gender-neutral computations method." A method (as prescribed by
a resolution of the retirement board of  the  retirement  system)  under
which a retirement allowance (or portion thereof) payable to a member is
required to be determined in the following manner:
(i) if such retirement allowance (or portion thereof) does not include
a  variable  annuity  program  benefit,  such  retirement  allowance (or
portion thereof) is determined on the basis of gender-neutral  mortality
tables  and  regular interest at the rate of seven per centum per annum,
without  reference  to  any  other  actuarial  mortality   or   interest
assumption; or
(ii)  if  such  retirement  allowance  (or portion thereof) includes a
variable annuity program benefit,  then  the  part  of  such  retirement
allowance  (or  portion thereof) other than any variable annuity program
benefit is determined in the manner provided for by  item  (i)  of  this
subparagraph,  and  such  variable  annuity  program benefit (or portion
thereof) is determined on the basis of gender-neutral  mortality  tables
and a uniform rate of interest of four percent (as such rate of interest
is  provided  for  in  section forty-four of the rules and regulations),
without  reference  to  any  other  actuarial  mortality   or   interest
assumption.
(19)  "Termination  date of eligibility for option re-selection" shall
mean October first, nineteen hundred eighty-seven, provided that if  the
executive  director of the retirement system certifies to the retirement
board that as of such October first, or any later termination date which
the retirement board may establish pursuant to the  provisions  of  this
subparagraph  nineteen,  it  will  not  be  administratively feasible to
process benefits (including conversion from fixed to  variable  benefits
and  vice versa) under the best-of-three-computations method (as defined
in subparagraph fifteen of this paragraph (b)) and/or the gender-neutral
computations  method  (as  defined  in  subparagraph  eighteen  of  this

paragraph  (b)) for any persons who are entitled, pursuant to law and/or
retirement  board  resolution,  to  benefits  so  computed,   then   the
retirement  board,  by  resolution,  may  extend the termination date of
eligibility for option re-selection, as applicable to such persons, to a
later  date,  provided  further,  however,  that  any  such extension or
extensions directed by the retirement board upon such  certification  or
certifications  shall  not  result in any such extended termination date
later  than  eighteen  months  after  October  first,  nineteen  hundred
eighty-seven.  In  the  event  that  any such extension is directed by a
resolution of  the  retirement  board  adopted  prior  to  the  date  of
enactment  of  this  subparagraph  nineteen,  such  extension,  upon the
enactment of this subparagraph, shall be valid and effective as  of  the
date  of  adoption of such resolution in the same manner and to the same
extent as if such enactment had occurred before such date of adoption.
(c) Notwithstanding any provision of subdivision  fifteen  of  section
two  of  the  rules  and  regulations  or any other law to the contrary,
commencing  on  August  first,  nineteen   hundred   eighty-three,   and
continuing  thereafter,  "regular interest", in the cases of persons who
were members on July thirty-first, nineteen hundred eighty-three or  who
thereafter  became  or  become  members,  shall  mean,  subject  to  the
provisions of paragraphs (d), (e), (f), (g), (h), (i),  (j),  (k),  (l),
(m),  (n)  and (o) of this subdivision, interest at seven per centum per
annum, compounded annually.
(d) (1) (i) Subject to the provisions of items (ii) and (iii) of  this
subparagraph,  regular  interest  at  the  rate  of seven per centum per
annum, compounded annually, shall be  used  as  the  actuarial  interest
assumption  for determining any actuarial equivalent benefit (other than
a variable annuity program benefit) payable to  or  on  account  of  any
seven percent member for actuarial equivalent benefit purposes.
(ii)  Where  an actuarial equivalent benefit is required by retirement
board resolution to be determined  for  any  seven  percent  member  for
actuarial  equivalent  benefit  purposes through the use of the modified
Option  1  pension  computation  formula  (as  defined  in  subparagraph
thirteen  of  paragraph (b) of this subdivision), the actuarial interest
assumptions used in making such determination shall be as prescribed  in
such formula.
(iii)  Where  it  is provided by board resolution that a portion of an
actuarial equivalent benefit shall be determined for any  seven  percent
member  for  actuarial  equivalent  benefit  purposes  on  the  basis of
gender-neutral mortality tables, and that the remainder of such  benefit
shall  be  determined  on  the  basis  of mortality tables which are not
gender-neutral, regular interest at the rate of  seven  per  centum  per
annum,  compounded  annually,  shall  be  used as the actuarial interest
assumption for determining the portion of such benefit required by  such
resolution  to  be  determined  on the basis of gender-neutral mortality
tables and such  rate  of  regular  interest  shall  not  apply  to  the
determination of the remainder of such benefit.
(2)  Notwithstanding  that the process of determining whether a member
is a seven percent member for actuarial equivalent benefit purposes  may
include, for the purpose of ascertaining the highest applicable benefit,
alternative  hypothetical  benefit  calculations  utilizing  a  rate  of
regular interest other than such  rate  of  seven  per  centum,  nothing
contained in paragraph (c) of this subdivision or in subparagraph one of
this paragraph shall be construed as requiring that in the determination
of  any  actuarial  equivalent  benefit  (other  than a variable annuity
program benefit) payable to or on account of any member  who  is  not  a
seven percent member for actuarial equivalent benefit purposes, any rate
of  interest  be  used other than regular interest, as prescribed by the

applicable provisions of subdivision fifteen of section two of the rules
and regulations.
(e)  The  provisions  of  subparagraph  one  of  paragraph (d) of this
subdivision shall not apply to any person who, prior  to  August  first,
nineteen  hundred  eighty-three,  retired  as a member of the retirement
system for age or service or superannuation or for ordinary or  accident
disability  and  who was such a retiree immediately prior to such August
first; provided, however, that where any such retiree  retired  pursuant
to  subdivision  two  of  section  ten  of  the rules and regulations or
retired for ordinary or accident disability, and such retiree re-entered
or re-enters education  service  and  on  or  after  July  thirty-first,
nineteen  hundred  eighty-three, was or is restored to membership in the
retirement system, the provisions of such  subparagraph  one,  from  and
after  such  date  of  restoration  to  membership,  shall apply to such
restored  member  with  respect  to  determination  of   any   actuarial
equivalent benefit which is both (1) a benefit to which he or she became
or  becomes entitled upon his or her subsequent retirement or subsequent
discontinuance of service so as to  qualify  for  benefits,  and  (2)  a
benefit  which is not a continuation, without change, of a benefit which
had previously become payable to him or her by  reason  of  his  or  her
prior  retirement;  provided  further  that  nothing  contained  in  the
preceding provisions of this paragraph  shall  be  construed  as  making
subparagraph one of such paragraph (d) applicable to any such member who
was  not  or  is  not  a  seven  percent member for actuarial equivalent
benefit purposes at such time of  subsequent  retirement  or  subsequent
discontinuance of service.
(f)  (1)  Subject  to  the  provisions  of  subparagraph  two  of this
paragraph, the provisions of subparagraph one of paragraph (d)  of  this
subdivision  shall  not  apply  to any Tier I or Tier II member who, (A)
prior  to  August  first,  nineteen  hundred  eighty-three  discontinued
service  under such circumstances that such member became a discontinued
member and acquired a vested right to  receive  a  retirement  allowance
pursuant to section thirty-two of the rules and regulations (and, in the
case  of  a  Tier II member, article eleven of the retirement and social
security law), and (B) was such a discontinued member immediately  prior
to such August first.
(2)  If  such  a  discontinued member returned or returns to education
service and on or after July thirty-first, nineteen hundred eighty-three
and before payability of his or her retirement allowance as such  member
began  or  begins,  again became or becomes an active member pursuant to
the applicable provisions of such section thirty-two, the  provision  of
subparagraph  one of such paragraph (d) shall apply to him or her on and
after the date of such resumption of active  membership;  provided  that
nothing contained in the preceding provisions of this subparagraph shall
be  construed  as  making  the  provisions  of  subparagraph one of such
paragraph (d) applicable to any such member who was  not  or  is  not  a
seven  percent  member  for actuarial equivalent benefit purposes at the
time of subsequent retirement or subsequent discontinuance of service so
as to qualify for benefits.
(3) Subject to the provisions of subparagraph four of this  paragraph,
the  provisions of subparagraph one of paragraph (d) of this subdivision
shall not apply to any Tier III or Tier IV  member  who,  (i)  prior  to
August first, nineteen hundred eighty-three, terminated employment under
such circumstances that such member became a Tier III member entitled to
a vested benefit or a Tier IV member entitled to vested benefit and (ii)
had such status immediately prior to such August first.
(4)  If  a member who became entitled to a vested benefit as described
in  subparagraph  three  of  this  paragraph  returned  or  returns   to

education-service  and,  on or after July thirty-first, nineteen hundred
eighty-three and before payability of his or her vested benefit began or
begins, resumed or resumes status as an active member of the  retirement
system,  the  provisions  of  subparagraph  one of paragraph (d) of this
subdivision shall apply to him or her on and  after  the  date  of  such
resumption of active membership, providing that nothing contained in the
preceding  provisions  of this subparagraph shall be construed as making
the provisions of subparagraph one of such paragraph (d)  applicable  to
any  such  member  who  was  not  or  is  not a seven percent member for
actuarial  equivalent  benefit  purposes  at  the  time  of   subsequent
retirement  or  of subsequent discontinuance of service so as to qualify
for benefits.
(g)(1) Subject to the provisions of subparagraph two of this paragraph
and to  the  provisions  of  paragraph  (i)  of  this  subdivision,  the
selection  of  mode  of  benefit (as defined in subparagraph fourteen of
paragraph (b) of this subdivision) which, prior to the termination  date
of  eligibility  for  option  re-selection  (as  defined in subparagraph
nineteen of paragraph (b) of this subdivision), a person entitled  to  a
recomputation  of  benefits  (as defined in subparagraph sixteen of such
paragraph (b)) made or makes in relation to the retirement allowance (or
any component thereof) which became or becomes payable  to  him  or  her
prior  to  such termination date of eligibility for option re-selection,
shall be the selection of mode of benefit applicable to  the  recomputed
retirement  allowance  (or any corresponding component thereof) to which
he or she is entitled under the best-of-three-computations method or the
gender-neutral computations method, and any such person  entitled  to  a
recomputation  of  benefits  pursuant  to the best-of-three-computations
method or the gender-neutral computations method shall not  be  entitled
to make any change in such selection of mode of benefit.
(2)  (i)  Notwithstanding  the  provisions of subparagraph one of this
paragraph, a person entitled to a recomputation  of  benefits  shall  be
entitled,  to  the extent and in the manner prescribed in the succeeding
items of this subparagraph, to change the original selection of mode  of
benefit  applicable  to  the  retirement  allowance  (or  any  component
thereof) which became or becomes payable to him  or  her  prior  to  the
termination date of eligibility for option re-selection.
(ii)  In any case where the original selection of mode of benefit of a
person entitled to a recomputation of benefits  was  a  selection  of  a
joint  and  survivor  option  (as  defined  in subparagraph seventeen of
paragraph (b)  of  this  subdivision),  no  change  from  such  original
selection  of  a  joint  and  survivor  option  may  be  made under this
subparagraph to any other selection of mode of benefit if the designated
beneficiary selected with respect to such joint and survivor  option  by
such  person  entitled  to  a  recomputation is not alive at the time of
filing of the form whereby such person entitled to a recomputation seeks
to change, pursuant to this subparagraph, his or her original  selection
of such joint and survivor option.
(iii)  Except  for a change of selection of mode of benefit prohibited
by item (ii) of this subparagraph, any original  selection  of  mode  of
benefit  may  be  changed  pursuant  to  this  subparagraph  to  another
selection of mode of benefit, provided all of the conditions  set  forth
in items (iv), (vi) and (viii) of this subparagraph are met.
(iv)  Subject  to  the  provisions  of  items (vii) and (viii) of this
subparagraph, a person entitled to  a  recomputation  of  benefits  may,
pursuant to this subparagraph, effect any such permissible change of his
or her original selection of mode of benefit by executing, acknowledging
and  filing  with the retirement system, within the applicable period of
time prescribed by item (vi) of this subparagraph, a  new  selection  of

mode  of  benefit.  If  the original selection of mode of benefit of the
person filing such new selection was a selection of a joint and survivor
option, such new selection shall be void and of no effect unless (a) the
designated  beneficiary  named in such original selection of a joint and
survivor option signs  and  acknowledges,  in  the  form  for  such  new
selection  of  mode  of  benefit, a consent to such changed selection of
mode of benefit, and (b) such original designated beneficiary  is  alive
on the date of filing of such new selection.
(v)  The  retirement  system  shall  mail to each person entitled to a
recomputation of benefits a  letter  showing  amounts  of  benefits,  as
recomputed  for  such person under the best-of-three-computations method
or the gender-neutral computations method, for modes  of  benefit  other
than joint and survivor options, together with a statement advising such
person that upon request, the amounts of recomputed benefits under joint
and survivor options will be provided.
(vi)  The  period  of  time within which any such person entitled to a
recomputation may file a new selection of mode of  benefit  as  provided
for  in  items  (iii)  and (iv) of this subparagraph shall be sixty days
after the date of issuance set forth  in  such  letter  mailed  to  such
person  pursuant  to  item  (v) of this subparagraph; provided, however,
that if, pursuant to the request of such person, a later letter  setting
forth  benefits  information in relation to a new selection of a mode of
benefit is mailed to such person by the retirement system,  such  period
of  time  for  filing a new selection of mode of benefit shall be thirty
days after the date of issuance set forth in such later letter.
(vii) Upon the filing of a new selection of mode of  benefit  pursuant
to  this  subparagraph  by  any such person entitled to a recomputation,
such new selection shall be irrevocable and such  person  shall  not  be
entitled  to file any other selection of mode of benefit with respect to
such retirement  allowance  (or  any  component  thereof)  which  became
payable  to  him or her prior to the termination date of eligibility for
option re-selection.
(viii) No new selection of mode  of  benefit  filed  pursuant  to  the
preceding  items  of  this subparagraph shall be valid or effective as a
change of mode of benefit or for any other  purpose  unless  the  person
entitled  to a recomputation of benefits who files such new selection is
alive on the date (hereinafter referred to  as  the  "validating  date")
three  hundred  sixty-five  days  after  the  date of filing of such new
selection of mode of benefit. If such person filing such  new  selection
of  mode of benefit is alive on the validating date with respect to such
new selection, such new selection shall become valid  and  effective  on
such  validating  date;  provided,  however,  that  from  and  after the
effective date of retirement  of  such  person  making  such  valid  and
effective new selection of mode of benefit (if he or she retired for age
or  service or superannuation or for ordinary or accident disability) or
from and after the date on which payability of the original benefits  of
such   person  began  (if  he  or  she  was  a  discontinued  member  or
discontinued sanitation member or Tier III member entitled to  a  vested
benefit  or  Tier  IV  member  entitled  to  a vested benefit), such new
selection of mode of benefit shall supersede such original selection  of
mode  of  benefit  and  shall apply to and govern the amount of benefits
payable to such person or  to  his  or  her  designated  beneficiary  or
estate.
(h) Subject to the provisions of paragraph (i) of this subdivision, in
any  case  where  a  member  of the retirement system who retired before
August first, nineteen hundred eighty-three pursuant to subdivision  two
of  section ten of the rules and regulations or for ordinary or accident
disability re-entered or re-enters  its  membership  on  or  after  July

thirty-first,   nineteen  hundred  eighty-three,  nothing  contained  in
paragraphs (c), (d) and (e) of this subdivision shall  be  construed  as
authorizing  or permitting him or her to change any selection of mode of
benefit  (as  defined  in subparagraph fourteen of paragraph (b) of this
subdivision) made by him or her with respect to any benefit which,  upon
his  or  her subsequent retirement or discontinuance of service so as to
qualify for benefits, is payable  to  him  or  her  as  a  continuation,
without  change, of a benefit which had previously become payable to him
or her by reason of his or her prior retirement.
(i) Nothing contained in  paragraph  (g)  or  paragraph  (h)  of  this
subdivision shall be construed as preventing:
(1)  any  person (A) who, during the period beginning on August first,
nineteen hundred eighty-three and ending on the date next preceding  the
date  of  enactment  (as  certified pursuant to section forty-one of the
legislative law) of  this  paragraph  retired  or  retires  pursuant  to
subdivision  two  of  section  ten  of  the rules and regulations or for
ordinary or accident disability and (B) who is subject to such paragraph
(g) and  (C)  who  on  or  after  July  thirty-first,  nineteen  hundred
eighty-three, re-entered or re-enters education service and again became
or becomes a member of the retirement system; or
(2)  any re-entered member referred to in such paragraph (h); upon his
or her subsequent retirement, from exercising any right, which any other
applicable law or any provision of the rules and regulations  grants  to
him  or  her  under  such  circumstances, to make a selection of mode of
benefit (as defined in subparagraph fourteen of paragraph  (b)  of  this
subdivision).
(j)   Notwithstanding   any   provisions  of  paragraph  (c)  of  this
subdivision prescribing a rate of regular interest of seven  per  centum
per  annum, compounded annually, for specified members described in such
paragraph, the rate of regular interest which shall be  applied  to  fix
the  rate  of interest on any loan to any such member eligible to borrow
shall be four per centum per annum, compounded annually.
(k) (1) Where any variable annuity  program  benefit  (as  defined  in
subparagraph  twelve  of  paragraph (b) of this subdivision) which is an
actuarial equivalent benefit (as defined in  subparagraph  two  of  such
paragraph (b)) is payable to any person by reason of:
(i) the retirement of a member for age or service or superannuation or
for  ordinary  or accident disability, where such retirement occurred on
or after  August  first,  nineteen  hundred  eighty-three  or  hereafter
occurs; or
(ii)  discontinuance  of  service  or  termination  of employment of a
member, where such discontinuance or termination occurred or  occurs  on
or  after  such  August  first under such circumstances that such member
became or becomes (A) a discontinued member possessing a vested right to
receive a retirement allowance pursuant to  section  thirty-two  of  the
rules  and  regulations  (and,  in the case of a Tier II member, article
eleven of the retirement and social security law)  or  (B)  a  Tier  III
member  entitled  to  a vested benefit or a Tier IV member entitled to a
vested benefit; or
(iii) the death, on or after such August first, of a member:
the rate of interest used to determine  such  variable  annuity  program
benefit  shall be that prescribed by section forty-four of the rules and
regulations.
(2) The retirement board  may  by  resolution  direct  that  different
computations,  based  on  different  mortality  tables, shall be used to
determine separate  portions  of  a  variable  annuity  program  benefit
payable as described in subparagraph one of this paragraph.
(1)  In  any  case  where  any  provision  of this subdivision has the
effect,  in  relation  to  any  person,  of   amending,   modifying   or
supplementing  any provision of the rules and regulations referred to in
subdivision f of section  thirty-three  of  the  rules  and  regulations
(relating to the tax-deferred annuity program of the retirement system),
such  provisions  of  the  rules  and  regulations,  for  the purpose of
applying such subdivision f to such person, shall be deemed  to  include
such amendment, modification or supplementation.
(m)  Modified Option 1 pension computation formula. (1) The retirement
board may by resolution direct that  under  such  circumstances  as  are
designated  in such resolution, benefits under Option 1 which consist of
or are derived from the pension component of a retirement allowance  and
which are payable to or on account of members who:
(i)  became  members  prior  to  the  date  of enactment (as certified
pursuant  to  section  forty-one  of  the  legislative  law)   of   this
subdivision; and
(ii)  retired  or  retire  on  or after August first, nineteen hundred
eighty-three, for age or service or superannuation or  for  ordinary  or
accident  disability,  or on or after such August first, discontinued or
discontinue service so as  to  become  discontinued  members;  shall  be
determined under the modified Option 1 pension computation formula.
(2)  If the retirement board makes a direction for use of such formula
pursuant to the provisions of subparagraph one of this paragraph, it may
also direct by resolution:
(i) that any member who is subject to the modified  Option  1  pension
computation  formula may elect, at such time and in accordance with such
procedures as are prescribed in such resolution, that such formula shall
not apply to such member and that the initial reserve determined for the
purpose of providing the benefits  payable  by  reason  of  his  or  her
selection  of  Option 1 and the pension component of his or her Option 1
retirement allowance shall be determined on the basis of  gender-neutral
mortality  tables  and  regular  interest of seven per centum per annum,
compounded annually; and
(ii) that the benefit payable, upon the death  of  the  member  making
such  election,  to  his  or  her  beneficiary  or  estate  shall be the
difference between such Option 1 initial reserve and the  total  of  the
payments of such pension component received by or payable to such member
for the period prior to his or her death; and
(iii)  that  where any member subject to the modified Option 1 pension
computation formula retired before the effective date of the  retirement
board resolution adopted pursuant to subparagraph one of this paragraph,
and  where  the  first payment on account of the retirement allowance of
any discontinued member subject to such  formula  was  made  before  the
effective  date of such resolution, such retiree or discontinued member,
within such period of time after such effective date and  in  accordance
with  such procedures as are prescibed in such resolution, may elect the
method of Option 1 benefit determination set forth in items (i) and (ii)
of this subparagraph.
(3) In any case where, pursuant to  board  resolution,  a  benefit  is
required   to   be  determined  under  the  modified  Option  1  pension
computation formula and  the  determination  of  such  benefit  is  also
required  by  a  board  resolution  adopted  pursuant  to  item (iii) of
subparagraph one  of  paragraph  (d)  of  this  subdivision  to  reflect
different computations of separate portions of such benefits the methods
of  computation  under the modified Option 1 pension computation formula
shall be appropriately adjusted so as to give effect to  the  provisions
of such resolution adopted pursuant to such item (iii).
(n)  Any reference in this subdivision to retirement for service shall
be deemed, for the purpose of this subdivision,  to  include  retirement
pursuant  to  the  provisions  of  subdivision two of section ten of the
rules and regulations.
(o)  The  rate  of regular interest applicable to determination of the
rate of member contribution of any member whose  last  membership  began
prior  to  the  date  of  enactment  (as  certified  pursuant to section
forty-one of the legislative law) of this subdivision shall be the  rate
of  regular  interest  which was applicable, under the provisions of the
rules and regulations in effect prior to such date of enactment, to  the
determination  of  the  rate  of member contribution of such member, and
nothing contained in the preceding paragraphs of this subdivision  shall
be  construed  as  applicable to the determination of the rate of member
contribution of any such member whose last membership  so  began  or  as
changing  or  affecting  the  rate  of  member  contribution of any such
member.
(p) (1) In any case where:
(i) a conversion of a fixed benefit or portion thereof to  a  variable
benefit  is  elected  pursuant  to  section  forty-two  of the rules and
regulations; and
(ii) pursuant to any provision of law and/or the rules and regulations
and/or any resolution of the retirement board  adopted  thereunder,  the
rate of regular interest and/or the mortality tables which were required
to  be  used  in the actuarial determination of such fixed benefit being
converted, are different  from  the  rate  of  regular  interest  and/or
mortality tables would have been required to be used to determine a like
variable  benefit  as  of  the same date (hereinafter referred to as the
"calculation date") as of which such fixed benefit was  required  to  be
determined  as  an actuarial equivalent; the composition of the variable
portion of each instalment of benefit for each month of  the  conversion
period  shall be determined in the manner prescribed in subparagraph two
of this paragraph (p).
(2) The amount, in  units,  of  the  variable  portion  for  any  such
conversion  month  to  which  subparagraph one of this paragraph applies
shall be equal to the number of units in the previous  month's  variable
portion,  if  any,  plus  a  number  of  units  which  is  the actuarial
equivalent, as of the calculation date, of the fixed  portion  converted
each month. Such actuarial equivalent units for each such month shall be
determined  on the basis of the unit value for such month, in accordance
with a scientific formula which recognizes the difference in  the  rates
of  regular interest and/or mortality tables referred to in subparagraph
one of this paragraph.
(3) In any case where:
(i) a conversion of a variable benefit is elected pursuant to  section
forty-two of the rules and regulations; and
(ii) pursuant to any provision of law and/or the rules and regulations
and/or  any  resolution  of the retirement board adopted thereunder, the
rate of regular interest and/or mortality tables which were required  to
be  used  in  the actuarial determination of such variable benefit being
converted are  different  from  the  rate  of  regular  interest  and/or
mortality  tables which would have been required to be used to determine
a like fixed benefit as of the same date (hereinafter referred to as the
"calculation date") as of which such variable benefit was required to be
determined as an actuarial equilvalent; the  composition  of  the  fixed
portion  of  each instalment of benefit for each month of the conversion
period shall be determined in the manner prescribed in subparagraph four
of this paragraph.
(4) The amount of the fixed portion for any such conversion  month  to
which subparagraph three of this paragraph applies shall be equal to the
previous month's fixed portion, if any, plus a fixed amount which is the
actuarial equivalent, as of the calculation date, of the number of units
converted  each  month.  Such actuarial equivalent fixed amount for each
such month shall be determined on the basis of the unit value  for  such
month,  in  accordance  with  a  scientific formula which recognizes the
difference in the rates of  regular  interest  and/or  mortality  tables
referred to in subparagraph three of this paragraph.
(q)  Notwithstanding  any  other  provision of this section, an option
selection  made  pursuant  to  this  subdivision  and  the   rules   and
regulations  governing  such  choice  previously  filed  by  a member or
retired member may be changed no later than thirty  days  following  the
date  of payability of his or her retirement allowance. A retired member
who has been retired for  disability  may  change  an  option  selection
previously  filed  no  later  than (1) thirty days following the date on
which such member's application for disability retirement  was  approved
by  the  retirement board or (2) thirty days following the date on which
such retiree was retired for disability, whichever is later.
18. (a) The following terms, as used in this subdivision,  shall  have
the  following  meanings, unless a different meaning is plainly required
by the context:
(1) "Board of education". The board of education of a city.
(2) "Board of education retirement system".  The  board  of  education
retirement system established pursuant to the provisions of this section
in a city.
(3) "City". A city having a population of one million or more.
(4)  "Rules  and  regulations".  The  rules  and  regulations  for the
government, management and control of the board of education  retirement
system adopted pursuant to the provisions of this section.
(5)  "Provisional  employee".  Any  person  employed  by  the board of
education on the basis of a provisional appointment pursuant to  section
sixty-five of the civil service law.
(6) "Education service". Service as a paid official or employee of the
board  of  education or the New York city school construction authority,
and allowable as provided in section four of the rules  and  regulations
or,  in  the  case  of  a  tier II member or a tier IV member, allowable
pursuant to the provisions which respectively govern the service  credit
of such a member of the board of education retirement system.
(7)  "Former provisional employee". Any person permanently employed by
the board of education:
(i) who is a transferred contributor in the New York  city  employees'
retirement   system  pursuant  to  section  B3-57.0  or  13-188  of  the
administrative code of the city of New York; and
(ii) who first acquired membership in the  New  York  city  employees'
retirement  system  as a provisional employee of the board of education;
and
(iii) whose last period  of  permanent  employment  by  the  board  of
education  was  immediately  preceded  by his employment by the board of
education as a provisional employee.
(8) "Tier II member". A member of a public retirement  system  who  is
subject to the provisions of article eleven of the retirement and social
security law.
(9)  "Tier  IV  member". A member of a public retirement system who is
subject to the provisions of  article  fifteen  of  the  retirement  and
social security law.
* (b)   (1)   Notwithstanding  the  provisions  of  paragraph  (a)  of
subdivision one of this section  or  any  provision  of  the  rules  and

regulations or any other provision of law to the contrary, membership in
the  board  of education retirement system shall include any provisional
employee in education service who elects  to  become  a  member  in  the
manner  prescribed  by  the applicable provisions of subparagraph two or
subparagraph three of this paragraph.
(2) Any such provisional employee who is not a member of the New  York
city employees' retirement system at the time he or she elects to become
a  member  of  the board of education retirement system may make such an
election of membership by filing with the board of education  retirement
system a duly executed and acknowledged application for membership.
(3) Any such provisional employee who is a member of the New York city
employees'  retirement  system  at the time he or she elects to become a
member of the board of education retirement  system  may  make  such  an
election  of  membership  by  filing  simultaneously  with  the board of
education retirement system a duly executed and acknowledged application
for membership and a duly executed and acknowledged request that his  or
her  membership  and  service  credit  in  the  New York city employees'
retirement system be transferred to the board  of  education  retirement
system.
* NB Effective until July 1, 2024
* (b)   (1)   Notwithstanding  the  provisions  of  paragraph  (a)  of
subdivision one of this section  or  any  provision  of  the  rules  and
regulations or any other provision of law to the contrary, membership in
the  board  of education retirement system shall include any provisional
employee in education service who elects  to  become  a  member  in  the
manner  prescribed  by  the  applicable  provisions of subparagraph two,
subparagraph three or subparagraph four of this paragraph.
(2) Any such provisional employee who is not a member of the New  York
city employees' retirement system at the time he or she elects to become
a  member  of  the board of education retirement system may make such an
election of membership by filing with the board of education  retirement
system a duly executed and acknowledged application for membership.
(3) Any such provisional employee who is a member of the New York city
employees'  retirement  system  at the time he or she elects to become a
member of the board of education retirement  system  may  make  such  an
election  of  membership  by  filing  simultaneously  with  the board of
education retirement system a duly executed and acknowledged application
for membership and a duly executed and acknowledged request that his  or
her  membership  and  service  credit  in  the  New York city employees'
retirement system be transferred to the board  of  education  retirement
system.
(4)(i)  Beginning July first, two thousand twenty-four, upon the entry
into employment of any employee eligible  to  elect  membership  in  the
retirement  system  pursuant to subparagraphs one, two and three of this
paragraph or any other applicable provision of law,  and  provided  such
employee  is  not  a member in the retirement system or any other public
retirement system of the city or state of New York as of such entry date
in covered employment, such employee shall be enrolled in the retirement
system effective ninety-one days after the commencement  of  employment.
Notwithstanding   the   preceding,  if  such  employee  files  with  the
retirement system an application to opt out of membership within  ninety
days  after  commencement  of  employment,  the  retirement system shall
refrain from enrolling such employee  unless  and  until  such  employee
subsequently  files  an  application  for membership with the retirement
system, or is otherwise subsequently mandated to enroll by the rules and
regulations of the retirement system or any applicable law. The employer
and the applicable union for the retirement system shall jointly provide
written notice to the employee informing the employee that he or she has

the option to opt-out of the automatic enrollment program.  Such  notice
shall  be  provided to the employee on three occasions: on or before the
thirtieth day, the sixtieth day and the ninetieth day prior to automatic
enrollment  in  the  retirement  system.  The  automatic  enrollment  of
eligible employees as provided for in this  subparagraph  shall  not  be
construed  to  modify  the  right  of  eligible  employees  to  join the
retirement system as of the first date of covered employment  by  filing
an  application  for membership with the retirement system. The employer
shall inform the employee in writing of the right to join the system  as
well  as  the fact that the employee shall be enrolled in the retirement
system on the ninety-first day after commencement of employment,  unless
such employee files with the retirement system an application to opt out
of  membership  prior  to such date. Any eligible employee who elects to
opt out of membership in the retirement system  within  the  ninety  day
period shall retain the right to join such system by subsequently filing
an  application  for  membership  so  long  as  such employee remains in
covered employment.
(ii) Every current employee who is  eligible  for  membership  in  the
retirement  system  on  July first, two thousand twenty-four, and who is
not a member in the retirement system or  any  other  public  retirement
system  of  the  city  or  state  of  New York, shall be enrolled in the
retirement system effective October  first,  two  thousand  twenty-four,
unless  such employee files with the retirement system an application to
opt out of membership before October first,  two  thousand  twenty-four.
Such  automatic  enrollment  in  the  retirement  system  shall  not  be
construed to waive any of  the  eligibility  requirements  for  previous
service credit.
(iii)  The  automatic enrollment of eligible employees as provided for
in this subparagraph shall not be construed to  modify  the  rights  and
obligations of any employee whose participation in the retirement system
is mandated by the rules and regulations of the retirement system or any
applicable law, and such mandated members may not opt out of membership.
(iv)  If  an  employee who is automatically enrolled in the retirement
system pursuant to the provisions of this paragraph is  a  member  of  a
union,  the  retirement system shall provide written notice to the union
of the employee's  enrollment  within  thirty  days  of  the  employee's
enrollment in the retirement system.
(v)  The  provisions  of  this  subparagraph  shall apply to full-time
employees and part-time employees. The provisions of  this  subparagraph
shall not apply to provisional employees.
* NB Effective July 1, 2024
(c) (1) Notwithstanding the provisions of section B3-57.0 or 13-188 of
the  administrative code of the city of New York or any provision of the
rules and regulations or any other provision of  law  to  the  contrary,
membership in the board of education retirement system shall include any
former  provisional  employee  who, while employed in education service,
elects to become a member in the manner prescribed by  subparagraph  two
of this paragraph.
(2)  Any such former provisional employee may make such an election of
membership  by  filing  simultaneously  with  the  board  of   education
retirement  system,  within  six  months after the date of enactment (as
certified pursuant to section forty-one of the legislative law) of  this
subdivision, a duly executed and acknowledged application for membership
and  a duly executed and acknowledged request that his or her membership
and service credit in the New York city employees' retirement system  be
transferred to the board of education retirement system.
(d)  Any  election  of membership in the board of education retirement
system  made  pursuant  to  paragraph  (b)  or  paragraph  (c)  of  this
subdivision shall be irrevocable.
(e)  (1) Upon the filing of a request for a transfer with the board of
education retirement system as provided for  in  subparagraph  three  of
paragraph  (b)  of this subdivision or subparagraph two of paragraph (c)
of this subdivision, the board of education retirement system shall file
such request for a transfer with the New York city employees' retirement
system. Upon the filing of such request for a transfer with the New York
city employees' retirement system, such retirement system shall  make  a
transfer  of  reserves  and  accumulated  contributions  to the board of
education  retirement  system  in  the  manner   required   by   section
forty-three of the retirement and social security law.
(2)  Nothing contained in the preceding provisions of this subdivision
or of any other law shall be construed (i) as imposing  any  restriction
under the third sentence of subdivision d of such section forty-three on
the  determination  of  the salary base for benefit computation purposes
with respect to any person  whose  membership  and  service  credit  are
transferred  to the board of education retirement system pursuant to the
applicable preceding provisions of this subdivision, or (ii)  as  making
the  last  sentence  of  such  subdivision  d  applicable  to  any  such
transferee.
(3) Any employee of the board of education of the city of New York who
is a member of the New York city employees' retirement system may  elect
to  transfer  membership  to  the  New  York  city  board  of  education
retirement system. Any election pursuant to this section shall  be  made
no  later than the one hundred eightieth day next succeeding the date on
which the provisions hereof become effective by filing a written  notice
thereof  with  the  administrative  head of the New York city employees'
retirement system, and the New York city board of  education  retirement
system,  and,  once  made and filed, such election shall be irrevocable.
Where an employee of the board of education becomes a member of the  New
York city board of education retirement system pursuant to this section,
the  New York city employees' retirement system shall make a transfer of
reserves, contributions, and credits to  the  New  York  city  board  of
education   retirement   system   in  the  manner  required  by  section
forty-three of the retirement and social security law.
* (f) Notwithstanding the provisions of paragraph (a)  of  subdivision
one of this section or any provision of the rules and regulations or any
other  provision  of  law  to  the  contrary, membership in the board of
education retirement system shall include any person employed by the New
York city police department in the title of school  crossing  guard  who
becomes  a  member  in  the  manner  prescribed  by  the  provisions  of
subdivision g of section 13-638.4 of the administrative code of the city
of New York.
* NB Effective until July 1, 2024
* (f) Notwithstanding the provisions of paragraph (a)  of  subdivision
one of this section or any provision of the rules and regulations or any
other  provision  of  law  to  the  contrary, membership in the board of
education retirement system shall include any person employed by the New
York city police department in the title of school  crossing  guard  who
becomes  a  member  in  the  manner  prescribed  by  the  provisions  of
subdivision g of section 13-638.4 of the administrative code of the city
of New York or by the provisions of subparagraph four of  paragraph  (b)
of this subdivision.
* NB Effective July 1, 2024
(g)(1)  For purposes of this paragraph, the terms "career pension plan
member", "career pension plan position" and  "fifty-five-year-increased-

service-fraction member" shall have the meanings set forth in paragraphs
twenty-eight,  twenty-nine  and thirty-one, respectively, of section two
of the rules and regulations.
(2)  For purposes of this paragraph, the term "fractional plan member"
shall mean a member of the board of education retirement system  holding
a  career  pension plan position who is not a career pension plan member
or a fifty-five-year-increased-service-fraction member, and who  is  not
subject  to the provisions of article eleven, fourteen or fifteen of the
retirement and social security law.
(3) Notwithstanding  any  provision  of  this  section  or  any  other
provision  of  law  to  the  contrary, effective October first, nineteen
hundred ninety-three, the rules and regulations shall be  deemed  to  be
amended  so  as  to provide that any fractional plan member in education
service on such date, who holds a career pension plan position  on  such
date,  shall, on such date, be deemed to have elected to become a career
pension plan member under the same terms and conditions,  and  with  the
same  rights,  benefits, privileges and obligations as are applicable to
similarly situated members of the New York  city  employees'  retirement
system,   as  provided  in  subdivision  m  of  section  13-162  of  the
administrative code of the city of New York, as enacted by the act which
added this paragraph.
(h) (1)  For  the  purposes  of  this  paragraph,  including,  without
limitation,  the use, pursuant to subparagraph two of this paragraph, of
the provisions of paragraphs one, two and  three  of  subdivision  c  of
section  13-162  of  the administrative code of the city of New York and
subparagraph (a) of paragraph four of such subdivision  (as  amended  by
the   provisions  of  the  chapter  of  the  laws  of  nineteen  hundred
ninety-five which added this paragraph)  to  prescribe  certain  of  the
additional  rights,  privileges,  benefits and obligations hereunder, of
career pension plan members and increased-service-fraction members,  the
following items of this subparagraph one shall apply:
(i)  the  terms  "career pension plan",  "career pension plan member",
"career pension plan position" and
"fifty-five-year-increased-service-fraction-member"   shall   have   the
meanings set forth in paragraphs twenty-seven, twenty-eight, twenty-nine
and   thirty-one,   respectively,  of  section  two  of  the  rules  and
regulations;
(ii) the term "city-service", as used in the provisions of subdivision
c of such section 13-162 referred to in the opening  paragraph  of  this
paragraph one shall be deemed to mean "education-service", as defined in
subparagraph six of paragraph (a) of this subdivision;
(iii)  the  term  "career pension plan qualifying service", as used in
such  provisions  of  subdivision  c  of  section  13-162,  shall   mean
"creditable  career  pension  plan  service"  as  defined  in  paragraph
thirty-eight of section two of the rules and regulations;
(iv) the pension referred to in  item  (ii)  of  subparagraph  (a)  of
paragraph  four  of such subdivision c of section 13-162 shall be deemed
to mean the pension referred to in subdivision seven of  section  twelve
of the rules and regulations; and
(v)   the   provisions  of  subparagraph  (b)  of  paragraph  four  of
subdivision c of such section 13-162 shall  be  deemed  inapplicable  to
career pension               plan               members              and
fifty-five-year-increased-service-fraction members who  are  subject  to
the provisions of this paragraph.
(2) Notwithstanding any provision of the rules and regulations or this
section  or  any  other  provision of law to the contrary, the rules and
regulations shall be deemed to be amended so as to provide that  on  and
after the effective date of this paragraph:
(i)  each  career  pension  plan  member,  subject  to  the succeeding
subparagraphs of this paragraph, shall have the same additional  rights,
privileges,  benefits  and  obligations  and  be  subject  to  the  same
additional terms and conditions with respect to withdrawing his  or  her
election  to  be  a  career  pension  plan member as are provided for in
relation to a similarly situated career pension plan member of  the  New
York  city  employees'  retirement  system by the chapter of the laws of
nineteen hundred ninety-five which added this paragraph; and
(ii) each fifty-five-year-increased-service-fraction  member,  subject
to  the  succeeding subparagraphs of this paragraph, shall have the same
additional rights, privileges, benefits and obligations and  be  subject
to  the same additional terms and conditions with respect to electing to
be a career pension plan member as are provided for  in  relation  to  a
similarly  situated fifty-five-year-increased-service-fraction member of
the New York city employees' retirement system by  the  chapter  of  the
laws of nineteen hundred ninety-five which added this paragraph.
(3)  In  any  case  where  a  member  effects  a  change in his or her
retirement  plan  pursuant  to  the  preceding  subparagraphs  of   this
paragraph,  his or her normal rate of member contribution as a member of
such changed plan shall be fixed pursuant to the appropriate  provisions
of   the   rules  and  regulations  with  respect  to  rates  of  member
contribution of members of such changed plan.
(4) Nothing contained in subparagraph two of this paragraph  shall  be
construed as diminishing or impairing:
(i)  any  right  granted  to  any  career  pension  plan member by the
provisions of paragraph ten of subdivision m of section  13-162  of  the
administrative  code  of  the  city of New York, where the provisions of
such paragraph ten are made applicable to such member by  paragraph  (g)
of this subdivision; and
(ii) any right granted to a career pension plan member by subparagraph
(a) of paragraph one of subdivision c of section thirty of the rules and
regulations to withdraw from the career pension plan.
(5) Notwithstanding any provision of the rules and regulations or this
section  or  any  other  provision of law to the contrary, the rules and
regulations shall be deemed to be amended so as to provide that:
(i) subject to the provisions of item (ii) of this subparagraph  five,
in  any  case where, on or after the effective date of this paragraph, a
fifty-five-year-increased-service-fraction member dies in service  while
such  a  member,  after  completing  twenty  or more years of creditable
career pension plan service, such member shall be deemed to have died as
a career pension plan member, if status as such a  career  pension  plan
member  at the time of his or her death would result in a benefit larger
than the benefit which would be payable if  such  member  died  while  a
fifty-five-year-increased-service-fraction member; and
(ii)  in  any  case  where  a  member  referred to in item (i) of this
subparagraph five is a Tier II member at the time of his or  her  death,
any  change  in the plan membership of such member pursuant to such item
(i) shall not change, alter  or  affect  the  applicability  of  article
eleven of the retirement and social security law to such member.
(i) A retired member of the board of education retirement system shall
have  the  right,  at any time after the retired member's retirement, to
execute  and  file  a  dues  deduction  authorization  card  with   such
retirement  system  authorizing  the deduction from the retired member's
retirement allowance of membership dues and the  payment  thereof  to  a
retiree  organization of which the retired member certifies he or she is
then a member and which the retired member certifies is then  affiliated
with  either  an  employee  organization  certified or recognized as the
collective bargaining representative of all employees in the negotiating

unit of which the retired  member  was  a  part  prior  to  his  or  her
retirement   or  an  employee  organization  with  which  such  employee
organization is then affiliated. The comptroller shall thereafter deduct
from  the  retirement  allowance  of  such  retired member the amount of
membership dues required to be paid by such retired  member,  and  shall
transmit  the  sum  so  deducted  to  said  retiree  organization.  Such
authorization shall continue in effect until revoked in writing by  such
retired member.
(j)  Notwithstanding  any  other  provision  of law or rule, a retired
member of the board of education retirement system of the  city  of  New
York shall be permitted to repay the outstanding balance of a loan taken
pursuant  to  the  rules and regulations of the retirement system at any
time. Benefits payable after the repayment of  the  loan  shall  not  be
subject to any actuarial reduction imposed as a result of an outstanding
balance.
** 19.  Pick  up  of  Tier  I  and Tier II member contributions by the
employer. (a) For the purposes of this subdivision:
(1) The terms  "board  of  education,"  "rules  and  regulations"  and
"retirement  system"  shall have the meanings set forth in subparagraphs
one, three and four,  respectively,  of  paragraph  (a)  of  subdivision
sixteen of this section; and
(2)  the  terms  "member,"  "Tier I member" and "Tier II member" shall
have the meanings  set  forth  in  subparagraphs  one,  four  and  five,
respectively,  of  subparagraph  (b)  of  subdivision  seventeen of this
section.
(b) the following terms, as used in this subdivision, shall  have  the
following  meanings,  unless  a different meaning is plainly required by
the context:
(1) "Basic rate of contribution as a Tier I or Tier  II  member."  (i)
Subject to the provisions of clauses (ii) and (iii) of this subparagraph
one, the term "basic rate of contribution as a Tier I or Tier II member"
shall  mean  the  proportion  of  the  earnable compensation of a Tier I
member or Tier II member required by the provisions of subparagraph  (i)
of  paragraph  f  of  subdivision  one of section eight of the rules and
regulations and  any  other  applicable  provisions  of  the  rules  and
regulations or law to be deducted from the personal compensation of such
member  as his or her member contributions, exclusive of any increase in
such contributions resulting from an election by such member pursuant to
law to effect such an increase, or any decrease in such contributions on
account of  any  program  for  increased-take-home-pay  or  pursuant  to
subdivision  one of section one hundred thirty-eight-b of the retirement
and social  security  law  (relating  to  election  to  decrease  member
contributions  by  contributions  due  on  account  of  social  security
coverage).
(ii) In any case where it is provided in  the  rules  and  regulations
that  the  deduction  from  a member's compensation on account of member
contributions required to be made by a Tier I member or Tier  II  member
shall  not  be  in  excess  of  fifteen  per centum unless the member so
elects, and such member makes such election,  any  per  centum  of  such
deduction  in  excess  of fifteen per centum with respect to such member
shall not be included in such member's basic rate of contribution  as  a
Tier I or Tier II member.
(iii)  In  any  case  where a Tier I member or Tier II member who is a
fifty-five-year-increase-service-fraction   member   (as   defined    in
subdivision  thirty-one of section two of the rules and regulations) has
elected or elects, pursuant to paragraph g of subdivision one of section
eight of the rules and regulations,  to  contribute  to  the  retirement
system  at  a rate one per centum less than such member's normal rate of

contribution, such member's basic rate of contribution as a  Tier  I  or
Tier  II  member,  during any period wherein such election is in effect,
shall be  one  per  centum  less  than  such  member's  normal  rate  of
contribution  as a fifty-five-year-increased-service-fraction member. In
any case where any such member elects pursuant to such  paragraph  g  to
discontinue  such  reduction,  such election to discontinue shall not be
deemed, for the purposes of subparagraph four of this paragraph  (b)  to
be  an  election  to  increase  member  contributions  above  the  level
prescribed by the member's basic rate of contribution as  a  Tier  I  or
Tier  II  member, and upon such discontinuance, such member's basic rate
of contribution as a Tier I or Tier II member shall be his or her normal
rate of  contribution  as  a  fifty-five-year-increased-service-fraction
member.
(2)  "Contributing  Tier  I  or  Tier  II member." With respect to any
payroll period as to which the status of a Tier  I  member  or  Tier  II
member as to required member contributions is to be determined, the term
"contributing  Tier I or Tier II member" shall mean any Tier I member or
Tier II member other than any Tier I member or Tier II member who is not
required to contribute during such payroll period because of his or  her
then  currently  effective  election,  pursuant  to  subparagraph  f  of
paragraph one of section eight of the  rules  and  regulations,  not  to
contribute.
(3) "Employer responsible for pick up." The public employer by which a
Tier I member or Tier II member is employed.
(4)  "Tier  I  or Tier II member contributions eligible for pick up by
the employer." (i) With respect to any payroll period for a contributing
Tier I or Tier II  member  (as  defined  in  subparagraph  two  of  this
paragraph (b)), the amount of member contributions which, in the absence
of  a  pick  up  program  applicable  to  such  member  pursuant to this
subdivision, would be required by law to be deducted, on account of such
member's basic rate of contribution as a Tier I or Tier  II  member  (as
defined  in  subparagraph  one  of  this  paragraph),  from the personal
compensation of such member for such payroll period,  after  (A)  giving
effect to any reduction in such contributions required under any program
for  increased-take-home-pay  or  pursuant to subdivision one of section
one hundred thirty-eight-b of the retirement and social security law and
(B) excluding any deductions  from  such  compensation  (or  redeposits,
restorations  or  payments)  on  account  of  (1) loans or withdrawal of
excess contributions or (2) any election by any such member, pursuant to
any applicable provision of the rules and regulations, to  increase  his
or  her  member  contributions  above the level prescribed by his or her
basic rate of contribution as a Tier I or Tier  II  member  or  (3)  any
other  cause not attributable to the member's basis rate of contribution
as a Tier I or Tier II member after reduction in such rate, if  any,  as
described in item (A) of this clause (i).
(ii)  If  no  deductions on account of any such member's basic rate of
contribution as a Tier I or Tier II member are required by the rules and
regulations to be made from the personal compensation of such member for
any payroll period, such member shall not have, for such payroll period,
any Tier I or Tier II member contributions eligible for pick up  by  the
employer.  The amount of Tier I or Tier II member contributions eligible
for pick up by the employer of any Tier I member or Tier II  member  for
any  payroll  period shall be determined solely on the basis of personal
compensation paid to such member for such payroll period by his  or  her
public  employer.  A  Tier I member or Tier II member shall not have any
Tier I or Tier II member contributions  eligible  for  pick  up  by  the
employer  with  respect to any payroll period for which he or she is not
paid personal compensation by his or her public employer.
(5) "Starting date for pickup." The  first  day  of  the  first  whole
payroll  period  commencing after the date which is sixty days after the
internal  revenue  service  shall  have  issued  a  ruling  that  member
contributions  picked up pursuant to this subdivision are not includible
as  gross  income  for  federal income tax purposes until distributed or
made available.
(c) Notwithstanding any other provision of the law to the contrary, on
and after the starting date for pick up, the  employer  responsible  for
pick  up shall pick up and pay into the annuity savings fund (subject to
the  provisions  of  subparagraph  four  of  paragraph   (f)   of   this
subdivision)  the  Tier  I  or Tier II member contributions eligible for
pick up by the employer which each Tier I  member  and  Tier  II  member
would otherwise be required to make on and after such starting date.
(c-1)  Notwithstanding any other provision of law to the contrary, the
employer responsible for pick up shall, in the case of a member who is a
participant in the age fifty-five improved  benefit  retirement  program
(as  defined  in  paragraph ten of subdivision a of section four hundred
forty-five-d of the retirement and social security law), pick up and pay
to the retirement  system  all  additional  member  contributions  which
otherwise   would   be  required  to  be  deducted  from  such  member's
compensation pursuant to  paragraph  three  of  subdivision  d  of  such
section four hundred forty-five-d, and shall effect such pick up on each
and  every payroll of such participant for each and every payroll period
with respect to which such paragraph three otherwise would require  such
deductions.
(c-2)  Notwithstanding any other provision of law to the contrary, the
employer responsible for pick up shall, in the case of a member who is a
participant in the age fifty-five  retirement  program  (as  defined  in
paragraph  ten  of subdivision a of section four hundred forty-five-i of
the retirement and  social  security  law),  pick  up  and  pay  to  the
retirement  system  all  additional member contributions which otherwise
would be  required  to  be  deducted  from  such  member's  compensation
pursuant  to  paragraph  three  of subdivision d of section four hundred
forty-five-i of the retirement and social security law, and shall effect
such pick up on each and every payroll of such participant for each  and
every  payroll  period  with  respect  to  which  such  paragraph  three
otherwise would require such deductions.
(d) An amount equal to the amount  of  such  picked  up  contributions
shall  be  deducted  by  the  employer  responsible for pick up from the
personal compensation of such member (as such compensation would  be  in
the absence of a pick up program applicable to him or her hereunder) and
shall  not  be  paid to such member. Such deduction shall be effected by
means of subtraction from such member's  current  personal  compensation
(as   so  defined),  or  offset  against  future  pay  increases,  or  a
combination of such methods.
(e) (1) * The member contributions and additional member contributions
picked up pursuant to this subdivision for any Tier I member or Tier  II
member  shall be paid by the employer responsible for pick up in lieu of
an equal amount  of  the  member  contributions  and  additional  member
contributions  otherwise  required  to  be paid by such member under the
provisions of the rules and regulations or  the  retirement  and  social
security  law,  and  shall  be  deemed  to  be  and  treated as employer
contributions pursuant to subsection h of section four hundred  fourteen
of  the  United  States  internal  revenue  code,  as  amended,  for the
purposes, under federal law, for which such subsection h  so  classifies
such picked up contributions. Subject to the provisions of paragraph (d)
of  this  subdivision, for all other purposes, including but not limited
to:
* NB Effective until notice of ruling by Internal Revenue Service  per
ch. 627/2007 §22
* The  member contributions and additional member contributions picked
up pursuant to this subdivision for any Tier I member or Tier II  member
shall  be  paid  by  the  employer responsible for pick up in lieu of an
equal  amount  of  the  member  contributions  and   additional   member
contributions  otherwise  required  to  be paid by such member under the
provisions of the rules and regulations or  the  retirement  and  social
security law, including any member contributions required to be made for
the  purchase  of  credit  for  previous  service or credit for military
service pursuant to subparagraph  three  of  this  paragraph,  provided,
however,  that  contributions  picked  up for the purchase of credit for
military service shall be deposited in the employer contribution account
in accordance with subdivision four  of  section  one  thousand  of  the
retirement  and  social  security  law,  and  shall  be deemed to be and
treated as employer contributions pursuant to subsection  h  of  section
four  hundred  fourteen  of  the United States internal revenue code, as
amended, for the purposes, under federal law, for which such  subsection
h  so classifies such picked up contributions. Subject to the provisions
of paragraph (d) of this subdivision, for all other purposes,  including
but not limited to:
* NB  Takes  effect  upon notice of ruling by Internal Revenue Service
per ch. 627/2007 §22
(i) the obligation of such member to pay New York state and  New  York
city  income  and/or wages or earnings taxes and the withholding of such
taxes; and
(ii) the determination of the amount of such member's Tier I  or  Tier
II  member  contributions  eligible  for  pick  up  by  the  employer or
additional member contributions required to be  picked  up  pursuant  to
paragraph c-one or c-two of this subdivision; and
(iii)  the  determination of the amount of any retirement allowance or
other retirement system benefit payable to or on account of such  member
or  any  other  retirement  system  right,  benefit or privilege of such
member;
the  amount  of  the  member   contributions   and   additional   member
contributions  picked up pursuant to this subdivision shall be deemed to
be a part of the employee personal compensation of such member and  such
member's gross personal compensation (as it would be in the absence of a
pick  up program applicable to him or her hereunder) shall not be deemed
to be changed by such member's participation in such program.
(2) Nothing contained in subparagraph one of this paragraph (e)  shall
be  construed  as  superseding  the  provisions  of section four hundred
thirty-one of the retirement and social  security  law  or  any  similar
provision  of  law which limits the salary base for computing retirement
benefits payable by a public retirement system.
* (3) Employer pick-up of contributions in respect of previous service
or military service. Notwithstanding any other  provision  of  law,  any
member  eligible  to  purchase credit for previous service with a public
employer pursuant to this section or to  purchase  credit  for  military
service pursuant to article twenty of the retirement and social security
law,  may  elect  to  purchase any or all of such service by executing a
periodic payroll deduction  agreement  where  and  to  the  extent  such
elections  are permitted by the retirement system by rule or regulation.
Such agreement shall  set  forth  the  amount  of  previous  service  or
military  service  being  purchased,  the  estimated  total cost of such
service credit, and the number of payroll periods in which such periodic
payments shall be made. Such agreement shall be irrevocable,  shall  not
be  subject to amendment or modification in any manner, and shall expire

only  upon  completion   of   payroll   deductions   required   therein.
Notwithstanding  the  foregoing,  any member who has entered into such a
payroll deduction agreement and who terminates employment prior  to  the
completion  of  the payments required therein shall be credited with any
service as to which  such  member  shall  have  paid  the  contributions
required under the terms of the agreement.
* NB  Takes  effect  upon notice of ruling by Internal Revenue Service
per ch. 627/2007 §22
(f) (1) For the purpose of determining the retirement  system  rights,
benefits  and  privileges  of  any Tier I member or Tier II member whose
Tier I or Tier II member contributions  eligible  for  pick  up  by  the
employer  are  picked  up  pursuant  to  this subdivision (including the
procurement of  loans  by  any  such  member),  such  picked  up  member
contributions,  subject  to  the provisions of subparagraph four of this
paragraph (f),  shall  be  deemed  to  be  and  treated  (i)  as  member
contributions  made by such member pursuant to law and (ii) as a part of
such member's accumulated deductions.
(2) For the purpose  of  determining  the  retirement  system  rights,
benefits  and  privileges  of any member who is a participant in the age
fifty-five improved benefit retirement program (as defined in  paragraph
ten  of  subdivision  a  of  section  four  hundred  forty-five-d of the
retirement and social security law), the additional member contributions
of such participant picked up pursuant  to  paragraph  (c-one)  of  this
subdivision shall be deemed to be and treated as a part of such member's
additional member contributions under subdivision d of such section four
hundred fifty-five-d.
(2-a)  For  the  purpose  of determining the retirement system rights,
benefits and privileges of any member who is a participant  in  the  age
fifty-five   retirement   program   (as  defined  in  paragraph  ten  of
subdivision a of section four hundred forty-five-i of the retirement and
social security  law),  the  additional  member  contributions  of  such
participant  picked  up  pursuant to paragraph c-two of this subdivision
shall be deemed to be and treated as a part of such member's  additional
member  contributions  under  subdivision  d  of  section  four  hundred
forty-five-i of the retirement and social security law.
(3) Interest on contributions picked up for any Tier I member or  Tier
II  member  pursuant  to  this subdivision (other than additional member
contributions picked up pursuant to paragraph c-one  or  c-two  of  this
subdivision)  shall  accrue in favor of the member and be payable to the
retirement system at the same rate, for the same time  periods,  in  the
same  manner  and  under  the  same  circumstances  as interest would be
required to accrue in  favor  of  the  member  and  be  payable  to  the
retirement system on such contributions if they were made by such member
in  the absence of a pick up program applicable to such member under the
provisions of this section.
(4) Where member contributions of any Tier I member or Tier II  member
are  picked  up  and paid into the annuity savings fund pursuant to this
section, such picked up contributions shall be credited  to  a  separate
account  within  the  individual account of such member in such fund, so
that a separate record of the amount of such picked up contributions  is
maintained.
(5)  For  the  purpose  of  determining  the retirement system rights,
benefits and privileges of any Tier I member or Tier II member who is  a
participant  in a variable annuity program of the retirement system, his
or her picked up member contributions shall, to the extent  and  in  the
proportions  appropriate  pursuant to his or her election to participate
in such program, be deemed to be and treated as a part  of  his  or  her
accumulated  deductions  and/or  credits  in  his  or her account in the

variable annuity savings fund. A separate record shall be  kept  showing
any  such  variable annuity savings fund account credits attributable to
any such picked up contributions.
(6)  Nothing  contained  in  this  paragraph (f) shall be construed as
granting member contributions or additional member contributions  picked
up  under  this subdivision any status, under federal law, other than as
employer contributions, pursuant to subsection h of section four hundred
fourteen of the United States internal revenue  code,  for  the  federal
purposes  for  which  such  subsection  h  so  classifies such picked up
contributions.
(g)  No  member  whose  member  contributions  or  additional   member
contributions  are required to be picked up pursuant to this subdivision
shall have any right to elect  that  such  pick  up,  with  accompanying
deduction from the personal compensation of such member as prescribed by
paragraph (d) of this subdivision, shall not be effectuated.
** NB Expires per ch. 681/92 § 16
* 20.  (a)  For the purposes of this subdivision, the terms "rules and
regulations" and "retirement system" shall have the meanings  set  forth
in  subparagraphs  three  and  four,  respectively,  of paragraph (a) of
subdivision sixteen of this section.
(b) The following terms, as used in this subdivision, shall  have  the
following  meanings,  unless  a different meaning is plainly required by
the context:
(1) "Tax-deferred annuity program". The tax-deferred  annuity  program
established  pursuant  to  the  provisions of section thirty-one hundred
nine-A of this  chapter  and  section  thirty-three  of  the  rules  and
regulations.
(2)  "Annuity  savings  fund".  The  annuity  savings  fund  under the
tax-deferred annuity program.
(3) "Annuity  reserve  fund".  The  annuity  reserve  fund  under  the
tax-deferred annuity program.
(4) "Variable annuity savings fund". The variable annuity savings fund
under the tax-deferred annuity program.
(5) "Variable annuity reserve fund". The variable annuity reserve fund
under the tax-deferred annuity program.
(6)  "Tax-deferred  annuity account". The tax-deferred annuity account
maintained in the tax-deferred annuity program by a participant in  such
program.
(c)  (1) Notwithstanding any provision of the rules and regulations or
any other provision of  law  to  the  contrary,  a  participant  in  the
tax-deferred  annuity program who, pursuant to the applicable provisions
of the rules and regulations and/or the retirement and  social  security
law, retires for service or disability, or who discontinues service with
a  vested right to receive a deferred retirement allowance, may elect to
defer commencement of  the  distribution  of  his  or  her  tax-deferred
annuity  account  to  the  latest  date  permitted  by the provisions of
section  403(b)  of  the  internal  revenue  code  pertaining   to   the
commencement  of  distribution  of  tax-deferred annuities, by filing an
election for such deferral of distribution with  the  retirement  system
during the time period which:
(i)  for  a  service  retiree,  commences  on  the  day  such person's
application for service retirement is filed with the retirement  system,
and which ends on the day prior to the effective date of retirement; or
(ii)  for  a  disability  retiree,  commences  on  the day such person
receives notification from the retirement system that  it  has  approved
his  or  her  retirement for disability, and which ends on the thirtieth
day after such receipt of notification; or
(iii) for a member who discontinues service with  a  vested  right  to
receive  a deferred retirement allowance, commences thirty days prior to
the date of such discontinuance of service, and which ends  on  the  day
such  retirement  allowance  becomes  payable pursuant to the applicable
provisions of the rules and regulations and/or the retirement and social
security law.
(2) A participant in the tax-deferred annuity program who, pursuant to
the  provisions  of  subparagraph  one of this paragraph, has elected to
defer commencement of  the  distribution  of  his  or  her  tax-deferred
annuity  account to the latest date for distribution referred to in such
subparagraph one may revoke such election by filing a revocation of such
election with the retirement system at any time  prior  to  such  latest
date.  Where  a participant has made such a revocation, the distribution
of his or her tax-deferred annuity account shall be made  thereafter  in
accordance with the applicable provisions of the rules and regulations.
(3)  Where  a  participant  in  the  tax-deferred  annuity program has
elected,  pursuant  to  the  provisions  of  subparagraph  one  of  this
paragraph,  to  defer  commencement  of  the  distribution of his or her
tax-deferred  annuity  account  to  the  latest  date  for  distribution
referred  to  in such subparagraph one, the application of any provision
of the rules and regulations which requires the transfer of his  or  her
tax-deferred  annuity  account  from  the  annuity  savings  fund to the
annuity reserve fund and/or from the variable annuity  savings  fund  to
the   variable   annuity  reserve  fund  upon  the  retirement  of  such
participant shall be delayed until the commencement of  distribution  of
his or her tax-deferred annuity account pursuant to such retirement and,
upon  such  commencement  of  distribution,  such  account  shall  be so
transferred in accordance with such provision.
(4)  Where  a  participant  has  made  an  election  pursuant  to  the
provisions  of  subparagraph  one of this paragraph, the distribution of
the entire amount in such participant's  tax-deferred  annuity  account,
including  any  portion  of such amount to be distributed pursuant to an
option  for  the  payment  of  retirement  benefits  selected  by   such
participant  pursuant  to  the  rules  and  regulations or an applicable
provision of the retirement and social security law,  shall  not  extend
beyond  the maximum period permitted by the provisions of section 403(b)
of  the  internal  revenue  code  pertaining  to  the  distribution   of
tax-deferred annuities.
(d)  The  rules  and  regulations  may  be  amended  pursuant  to  the
procedures set forth in subdivision two of  this  section  to  establish
rules  and  regulations  governing the borrowing by a participant in the
tax-deferred annuity program of contributions accumulated in his or  her
tax-deferred   annuity   account,  provided  that  in  establishing  and
administering such rules and regulations, no action shall be taken  that
would  render  the  tax-deferred annuity program in violation of section
403(b) of the internal revenue code.
(e) Notwithstanding any  other  provision  of  law,  or  any  rule  or
regulation,  or the provisions of any retirement board resolution to the
contrary:
(1) on or after the  first  business  day  immediately  following  the
effective  date of this paragraph, interest shall be allowed at the rate
of seven percent per annum, compounded  annually,  on  the  tax-deferred
accounts  in  the  annuity  savings  fund of participants (i) who hold a
position  represented  by  the  recognized  teacher   organization   for
collective  bargaining purposes, or (ii) who held such a position at the
time they retired or  discontinued  service  with  vested  rights  to  a
retirement  allowance  and elected to defer commencement of distribution

of their tax-deferred accounts in accordance with paragraph (c) of  this
subdivision; and
(2)  the  provisions  of  subparagraph one of this paragraph shall not
affect the rate  of  interest  being  charged  on  new  loans  from  the
tax-deferred  annuity  program,  and the rate of interest that was being
charged on such loans immediately prior to the effective  date  of  this
paragraph  shall  be  used  for  new loans from the tax-deferred annuity
program made on or after the effective date of  this  paragraph,  unless
the  rules and regulations governing loans from the tax-deferred annuity
program are amended pursuant to paragraph (d)  of  this  subdivision  to
establish a different rate of interest applicable to such loans; and
(3)  where  a  participant  in  the  tax-deferred  annuity program has
elected to transfer all or a portion of the amount credited  to  his  or
her  tax-deferred  account in the annuity savings fund to a tax-deferred
account in the variable annuity  savings  fund,  the  retirement  system
shall  effectuate  such transfer as expeditiously as is administratively
feasible.
* NB There are 2 sub 20's
* 20. Eligible rollover distributions. (a) For the  purposes  of  this
subdivision,  the  terms "rules and regulations" and "retirement system"
shall have the meanings set forth in subparagraphs  three  and  four  of
paragraph (a) of subdivision sixteen of this section.
(b)  Notwithstanding  anything  to  the  contrary contained in section
twenty-six of the rules and regulations, in the event  that,  under  the
terms  of  this  section  or the rules and regulations, a person becomes
entitled to a distribution from the retirement system which  constitutes
an  "eligible  rollover  distribution"  within  the meaning of paragraph
thirty-one of subsection a of section four hundred one of  the  internal
revenue  code,  such  distributee  may  elect,  subject to any rules and
regulations adopted pursuant to paragraph (c) of  this  subdivision,  to
have  such  distribution,  or  a  portion  thereof,  paid directly to an
"eligible retirement plan" within the meaning of paragraph thirty-one of
subsection a of section four hundred one of the internal revenue code.
(c)  The  retirement  board  is  authorized  to  adopt  such   written
administrative  procedures  as it finds to be necessary in administering
the  provisions  of  this  subdivision,  provided  that  they  are   not
inconsistent with the applicable provisions of the internal revenue code
and the rules and regulations thereunder.
* NB There are 2 sub 20's
21.  Certain  distributions  and  transfers  by  participants  in  the
tax-deferred annuity program. (a) For the purposes of this subdivision:
(1) the terms "rules and regulations" and  "retirement  system"  shall
have the meanings set forth in subparagraphs three and four of paragraph
(a) of subdivision sixteen of this section; and
(2)  the  term  "tax-deferred  annuity program" shall mean the program
authorized by section three thousand one hundred nine-A of this  chapter
as set forth in section thirty-three of the rules and regulations of the
retirement system.
(b) (1) Notwithstanding any other provision of law to the contrary, in
the  event  that  a  person  becomes entitled to a distribution from the
tax-deferred annuity program which  constitutes  an  "eligible  rollover
distribution" within the meaning of paragraph thirty-one of subsection a
of  section  four  hundred  one  of  the  internal revenue code (as such
section is made  applicable  to  the  tax-deferred  annuity  program  by
paragraph  ten  of  subsection  b  of  section four hundred three of the
internal revenue code), the person may elect, subject to any  rules  and
regulations  adopted  pursuant  to paragraph (c) of this subdivision, to
have such distribution, or  a  portion  thereof,  paid  directly  to  an

eligible  retirement  plan within the meaning of paragraph thirty-one of
subsection a of section four hundred one of the internal revenue code.
(2) Nothing contained in section twenty-six or section thirty-three of
the  rules  and regulations shall be construed to prohibit a participant
in the tax-deferred annuity program from electing to transfer all  or  a
portion  of his or her tax-deferred annuity net contributions to another
annuity contract described in subsection b of section four hundred three
of the internal revenue  code  where  a  non-taxable  trustee-to-trustee
transfer  of  tax-deferred  annuities  is  permitted  by subsection b of
section four hundred three  of  such  code  and  the  applicable  rules,
regulations and rulings thereunder.
(c)   The  retirement  board  is  authorized  to  adopt  such  written
administrative procedures as it finds to be necessary  in  administering
the   provisions   of  this  subdivision  provided  that  they  are  not
inconsistent with the applicable provisions of the internal revenue code
and the rules and regulations thereunder.
22. (a) For the purposes of this subdivision,  the  terms  "rules  and
regulations"  and  "retirement system" shall have the meanings set forth
in subparagraphs three and  four,  respectively,  of  paragraph  (a)  of
subdivision  sixteen  of  this  section,  and the terms "Tier I member",
"Tier II member", "education service" and  "discontinued  member"  shall
have the meanings set forth in subparagraphs four, five, ten and eleven,
respectively, of paragraph (b) of subdivision seventeen of this section,
and  the  term "fifty-five-year-increased-service-fraction member" shall
have the meaning set forth in paragraph thirty-two of section two of the
rules and regulations.
(b) Notwithstanding any other  provision  of  law,  subdivision  a  of
section  thirty-two  of  the rules and regulations shall be deemed to be
amended to provide that any member of the retirement system who:
(1) discontinues education service on or after  July  first,  nineteen
hundred sixty-eight, other than by death, retirement or dismissal; and
(2) is a fifty-five-year-increased-service-fraction member at the time
of such discontinuance; and
(3)  (i) prior to such discontinuance, completed five or more years of
allowable service; and
(4) does not withdraw his or her accumulated deductions in whole or in
part; shall have  a  vested  right  to  receive  a  deferred  retirement
allowance   as   provided   in  section  thirty-two  of  the  rules  and
regulations.
(c) Nothing contained in  paragraph  (b)  of  this  subdivision  shall
change,  alter  or affect the applicability of the provisions of article
eleven of the retirement and social security law to any Tier  II  member
who  becomes  a  discontinued  member  pursuant  to  the  provisions  of
paragraph (b) of this subdivision.
(d) Notwithstanding any other provision of law, a Tier I  discontinued
member  with  ten  or  more  years of credited service in the retirement
system who dies before a retirement benefit becomes payable and  who  is
otherwise  not  entitled  to  a death benefit from the retirement system
shall be deemed to have died on the last day  that  he  or  she  was  in
service  upon  which  his  or  her  membership was based for purposes of
eligibility  for  the  payment  of  a  death  benefit  pursuant  to  the
provisions  of  section  twenty  of the rules and regulations. The death
benefit payable in such case shall be one-half of that which would  have
been  payable  had  such  member  died  on the last day that service was
rendered.
23. (a) The following terms, as used in this subdivision,  shall  have
the  following  meanings, unless a different meaning is plainly required
by the context:
(1) "BERS" or "retirement system". The board of  education  retirement
system of the city of New York established pursuant to the provisions of
this section.
(2)  "BERS  rules  and regulations". The rules and regulations for the
government, management and control  of  BERS  adopted  pursuant  to  the
provisions of this section.
(3)  "Retirement  board".  The  board  established  as the head of the
retirement system pursuant to sections five and five-a of the BERS rules
and regulations.
(b)(1) In addition to the powers conferred upon it by the  BERS  rules
and  regulations  or by any other provision of law, the retirement board
shall, on or before  April  first  of  each  year,  establish  a  budget
sufficient  to fulfill the powers, duties and responsibilities set forth
in the BERS rules and regulations and any other provision of  law  which
sets forth the benefits of members of the retirement system. Said budget
shall  also  include  the amounts withheld for the purpose of paying the
expenses attributable to the tax-deferred annuity  program  pursuant  to
the  provisions  of  subdivision  b  of section thirty-three of the BERS
rules and regulations, and the amounts deposited in the variable annuity
expense fund pursuant to the provisions  of  subdivision  1  of  section
thirty-six  of  the  BERS  rules  and  regulations. The retirement board
shall, if necessary, draw upon the assets of the  retirement  system  to
fund  the portion of such budget which is not derived from subdivision b
of  section  thirty-three  of  the  BERS  rules  and   regulations   and
subdivision  1  of section thirty-six of the BERS rules and regulations,
provided that  such  action  shall  be  subject  to  the  provisions  of
subparagraphs two, three, four and five of this paragraph and paragraphs
(c),  (d),  (e)  and  (f)  of  this  subdivision. The provisions of this
subdivision shall  not  be  applicable  to  the  payment  of  investment
expenses  pursuant  to  section 13-705 of the administrative code of the
city of New York and nothing contained  herein  shall  be  construed  as
abolishing,  limiting  or modifying any power of the retirement board to
provide for the payment  of  investment  expenses  pursuant  to  section
13-705 of such code.
(2)  If  a  budget has not been adopted by the commencement of the new
fiscal year, the budget for the preceding fiscal year shall be deemed to
have been extended for the new fiscal year until  such  time  as  a  new
budget is adopted.
(3)  Any  budget in effect pursuant to subparagraph one or two of this
paragraph shall be modifiable during such succeeding fiscal year.
(4) Notwithstanding any other provision of law, the  retirement  board
shall  have  the power either directly or by delegation to the executive
director of the retirement system to obtain by employment or by contract
the goods, property and services necessary to fulfill its powers  within
the  appropriation  authorized  by  the  retirement  board  pursuant  to
subparagraph one of this paragraph.
(5) The provisions of chapter seventeen of the New York  city  charter
shall  continue  to  apply  to  the retirement system and the retirement
system shall constitute an agency  for  the  purposes  of  such  chapter
seventeen.  The  retirement board shall not obtain any legal services by
the retention of employees or by contract unless the corporation counsel
shall consent thereto.
(6) All contracts for goods or services entered into by the retirement
system shall be procured as described for school  districts  in  article
five-A  of  the general municipal law. The retirement board shall be the
governing body as described in such law.
(7) The provisions of subparagraphs four and  six  of  this  paragraph
shall  not  apply  to any contract or contracts relating to the variable

annuity funds and tax-deferred  annuity  program  pursuant  to  sections
thirty-three and thirty-six of the BERS rules and regulations.
(c) Notwithstanding the provisions of paragraph (a) of subdivision one
of  this  section  or any other provision of law or any provision of the
BERS rules and regulations  to  the  contrary,  any  resolution  of  the
retirement  board  which  establishes  a  budget  or  modifies  a budget
pursuant to the provisions of subparagraph one or three of paragraph (b)
of this subdivision shall  require  the  concurrence  of  at  least  one
retirement  board  member  who is appointed to the board of education by
the mayor of the city of New York, and as otherwise required by law. The
provisions of this paragraph shall apply  only  to  resolutions  of  the
retirement  board  which  establish  or modify a budget pursuant to this
subdivision, and nothing contained in this paragraph shall be  construed
to  apply  to  any  other vote of the retirement board. No assets of the
retirement system shall be drawn upon  pursuant  to  the  provisions  of
subparagraph  one of paragraph (b) of this subdivision unless authorized
by a budget or budget modification established by a  resolution  of  the
retirement board.
(d)  Employment  by  the  retirement system shall constitute education
service for the purposes of the BERS rules and regulations and any other
provision of law which governs the crediting of service for  members  of
the  retirement system; provided, however, that nothing contained herein
shall be construed as  granting  membership  rights  in  the  retirement
system  to  a  contractor  of the retirement system or such contractor's
employees.
(e) Whenever the assets  of  the  retirement  system  are  drawn  upon
pursuant  to the provisions of subparagraph one of paragraph (b) of this
subdivision, all monies so withdrawn shall be made a charge to  be  paid
by  each participating employer otherwise required to make contributions
to the retirement system no later than the end of the fiscal  year  next
succeeding  the  time  period  during which such assets were drawn upon,
provided, however, that where such charge is for assets so withdrawn  in
fiscal  year  two thousand four--two thousand five or in any fiscal year
thereafter, such  charge  shall  be  paid  by  each  such  participating
employer  no later than the end of the second fiscal year succeeding the
time period during which such assets were drawn upon.  The  actuary  for
the  retirement  system  shall  calculate  and  allocate  to  each  such
participating employer its share of  such  charge  by  multiplying  such
charge  by a fraction, the numerator of which shall consist of the total
salaries of the employees of each participating employer as of the  June
thirtieth  succeeding  the  withdrawal  of assets and the denominator of
which shall consist of the total salaries of members of  the  retirement
system  as  of  such  June thirtieth. All charges to be paid pursuant to
this subdivision shall be paid at the regular rate of interest  utilized
by  the  actuary in determining employer contributions to the retirement
system pursuant to the provisions of paragraph two of subdivision  b  of
section 13-638.2 of the administrative code of the city of New York.
(f)  The  funds  withdrawn  from  the  retirement  system shall not be
utilized for any purpose  other  than  the  budget  established  by  the
retirement  board.  All  expenditures  of the retirement system shall be
subject to audit by the comptroller of the city of  New  York,  who  may
make  recommendations, including but not limited to, procedures designed
to improve accounting and expenditure control. All expenditures  of  the
retirement  system shall be reported to the mayor's office of management
and budget and the budgetary office of all participating employers.
(g) The executive director of the  retirement  system,  who  shall  be
appointed  by  the retirement board, shall perform such duties as may be

conferred upon him or her by the chairperson of the retirement board, by
resolution adopted by the retirement board, or by law.
* 24. (a) The following terms, as used in this subdivision, shall have
the  following  meanings, unless a different meaning is plainly required
by the context:
(1) "Board of education". The board of education of a city.
(2) "City". A city having a population of one million or more.
(3) "Retirement system". The  board  of  education  retirement  system
established pursuant to the provisions of this section in a city.
(4)  "Rules  and  regulations".  The  rules  and  regulations  for the
government, management and control  of  the  retirement  system  adopted
pursuant to this section.
(5)  "Retirement board". The retirement board of the retirement system
provided for in section five-a of the rules and regulations.
(6) "Retirement benefits". Benefits payable to a  beneficiary  by  the
retirement  system  which  are  subject  to  the  limitations imposed by
section 415(b) of the Internal Revenue Code.
(7) "Beneficiary". A person who is receiving retirement benefits  from
the retirement system.
(8) "Excess benefit plan". The excess benefit plan established by this
subdivision  for  the sole purpose of paying benefits as permitted under
section 415(m) of the Internal Revenue Code.
(9)  "Eligible  participant".  A  beneficiary  who  is   entitled   to
replacement  benefits  from  the  excess benefit plan for a plan year in
accordance with paragraphs (d) and (e) of this subdivision.
(10) "Replacement  benefits".  The  benefits  payable  by  the  excess
benefit  plan  to  an  eligible  participant  as  determined pursuant to
paragraph (e) of this subdivision.
(11) "Internal Revenue Code". The Federal  Internal  Revenue  Code  of
1986, as amended.
(12)  "Plan  year".  The  limitation  year of the retirement system as
provided in section six hundred twenty  of  the  retirement  and  social
security law.
(b)  There  is  hereby  established  an  excess benefit plan, the sole
purpose of which shall be to provide replacement benefits, as  permitted
by  section  415(m) of the Internal Revenue Code, to beneficiaries whose
annual retirement benefits  have  been  reduced  because  such  benefits
exceed the limitations imposed by section 415(b) of the Internal Revenue
Code.  The  excess  benefit plan shall be administered by the retirement
board.
(c) There is hereby established a fund  to  be  known  as  the  excess
benefit fund which shall be maintained for the sole purpose of providing
replacement benefits to eligible participants in the excess benefit plan
established  by  this  subdivision, as permitted under section 415(m) of
the Internal Revenue Code. Such fund  shall  consist  of  such  employer
contributions as shall be made thereto pursuant to paragraph (f) of this
subdivision. Such contributions to the excess benefit fund shall be held
separate  and  apart  from  the  assets  held  by the other funds of the
retirement system, provided, however, that  the  assets  of  the  excess
benefit  fund  may  be invested with the other retirement system assets,
but such excess benefit fund assets shall be  accounted  for  separately
from the other retirement system assets.
(d)  All  beneficiaries  of  the  retirement  system  whose retirement
benefits for a plan year are being reduced because of section 415(b)  of
the  Internal  Revenue Code shall be eligible participants in the excess
benefit plan for that plan year. Participation  in  the  excess  benefit
plan  shall  be  determined  for  each  plan year. No beneficiary of the
retirement system shall be an eligible participant in the excess benefit

plan for any plan year for which his or her retirement benefits are  not
reduced because of section 415(b) of the Internal Revenue Code.
(e)(1)  For  each  plan  year  in  which  a beneficiary is an eligible
participant in the excess benefit plan, such eligible participant  shall
receive  replacement  benefits from the excess benefit plan equal to the
difference between the full amount of the retirement benefits  otherwise
payable  to  the  eligible  participant  for that plan year prior to any
reduction because of section 415(b) of the Internal  Revenue  Code,  and
the  retirement  benefits  payable  to the eligible participant for that
plan year as reduced because of section 415(b) of the  Internal  Revenue
Code.  No  replacement benefits for any plan year shall be paid pursuant
to this paragraph to any beneficiary who  is  not  receiving  retirement
benefits from the retirement system for that plan year.
(2) Replacement benefits pursuant to this subdivision shall be paid at
the  same  time  and in the same manner as the retirement benefits which
are being  replaced.  At  no  time  shall  an  eligible  participant  be
permitted  directly or indirectly to defer compensation under the excess
benefit plan.
(f)(1) The required employer contributions to the excess benefit  fund
for  each  plan  year  shall be an amount, as determined by the actuary,
which is necessary to pay the total amount of replacement benefits  that
are  payable  pursuant  to this subdivision to eligible participants for
that plan year.
(2) Such required employer contributions shall be paid into the excess
benefit fund from an allocation of  the  employer  contribution  amounts
paid  by  the  board of education and other public employers pursuant to
the applicable provisions of subdivision sixteen  of  this  section  and
other   applicable  provisions  of  law.  Such  allocation  of  employer
contribution amounts shall be paid into the excess benefit fund at  such
times and in such amounts as determined by the actuary.
(3) The benefit liabilities of the excess benefit plan shall be funded
on  a plan year to plan year basis, provided, however, that any employer
contributions to the  excess  benefit  fund,  including  any  investment
earnings  on  such  contributions, which are not used to pay replacement
benefits for the current plan year shall  be  used  to  pay  replacement
benefits for future plan years.
(g)  The  right  of  an  eligible  participant  to receive replacement
benefits pursuant to this  subdivision,  and  the  replacement  benefits
received pursuant to this subdivision, shall be exempt from any state or
municipal  tax,  and  shall  not  be  subject to execution, garnishment,
attachment or any other process whatsoever, and shall  be  unassignable,
except  as  otherwise  specifically provided for benefits payable by the
retirement system.
* NB There are 2 sb 24's
* 24. Notwithstanding any provisions of the rules  or  regulations  or
any  other  provision  of  law  to  the  contrary,  in  a  city having a
population of one million or more, the board of education shall adopt  a
resolution  amending  the  provisions  governing  any  retirement system
adopted pursuant to or subject to the provisions of this section to  the
extent  necessary to grant a retired member the right, at any time after
his  or  her  retirement,  to  execute  and  file   a   dues   deduction
authorization  card  with the member's retirement system authorizing the
payment of  voluntary  contributions  to  the  political  committee,  as
defined  in  section  fourteen-one  hundred of the election law, of such
member's employee organization; (or a retirees' association chartered by
the  member's  employee  organization)  provided  such  organization  is
certified  or  recognized  pursuant  to  article  fourteen  of the civil
service law as the representative of employees in the  negotiation  unit

in  which such member was employed. Such authorization shall continue in
effect until revoked in writing by such member.  The  comptroller  shall
determine   the   cost   of   administrative  deductions  for  voluntary
contributions  to the political committees; and the cost incurred by the
retirement system in administering such contributions shall be paid from
the funds of the political committee.
* NB There are 2 sb 24's
25. (a) For the purposes of this subdivision,  the  terms  "rules  and
regulations"  and  "retirement system" shall have the meanings set forth
in subparagraphs three and  four,  respectively,  of  paragraph  (a)  of
subdivision sixteen of this section.
(b)  Notwithstanding  any  other provision of law to the contrary, the
rules and regulations adopted pursuant to this section shall  be  deemed
to be amended to provide that a member of the retirement system shall be
deemed  to  have died as the natural and proximate result of an accident
sustained in the performance of duty upon which his or her membership is
based, and not as a result of willful negligence on  his  or  her  part,
provided  that  such  member was in active service upon which his or her
membership is based at the time that such member was ordered  to  active
duty  pursuant  to  Title  10  of the United States Code, with the armed
forces of the United States or to  service  in  the  uniformed  services
pursuant  to  Chapter 43 of Title 38 of the United States Code, and such
member died while on such  active  duty  or  service  in  the  uniformed
services on or after June fourteenth, two thousand five while serving on
such active military duty or in the uniformed services.
(c)  Notwithstanding  any  other provision of law to the contrary, the
rules and regulations adopted pursuant to this section shall  be  deemed
to  be  amended  to  provide  that any requirement that applications for
accidental disability be filed within a limited time  period  after  the
happening   of  such  accident  shall  not  apply  to  a  vested  member
incapacitated as a result of a qualifying World Trade  Center  condition
as defined in section two of the retirement and social security law.
(d)(1)(i)  Notwithstanding any other provision of law to the contrary,
the rules and regulations adopted pursuant  to  this  section  shall  be
deemed  to  be amended to provide that if any condition or impairment of
health is caused by a qualifying World Trade Center condition as defined
in section two of the retirement and social security law,  it  shall  be
presumptive  evidence  that  it  was  incurred  in  the  performance and
discharge of duty and the natural and proximate result  of  an  accident
not  caused by such member's own willful negligence, unless the contrary
be proved by competent evidence.
(ii) The New York city board of education retirement board  is  hereby
authorized   to  promulgate  rules  and  regulations  to  implement  the
provisions of this paragraph.
(2)(i) Notwithstanding any other provision of law to the contrary, the
rules and regulations adopted pursuant to this section shall  be  deemed
to  be  amended  to  provide  that if a member who participated in World
Trade Center rescue,  recovery  or  cleanup  operations  as  defined  in
section  two of the retirement and social security law, and subsequently
retired on a service retirement, an ordinary disability  retirement,  an
accidental  disability  retirement,  a  performance  of  duty disability
retirement, or was  separated  from  service  with  a  vested  right  to
deferred  payability  of  a  retirement allowance and subsequent to such
retirement or separation is determined by the  head  of  the  retirement
system  or  applicable  medical  board  to have a qualifying World Trade
Center condition, as defined in section two of the retirement and social
security law, upon such determination by the  New  York  city  board  of
education  retirement  board  or  applicable  medical board, it shall be

presumed that such  disability  was  incurred  in  the  performance  and
discharge of duty as the natural and proximate result of an accident not
caused  by  such  member's  own  willful negligence, and that the member
would have been physically or mentally incapacitated for the performance
and  discharge  of  duty of the position from which he or she retired or
vested had the condition been known and fully developed at the  time  of
the  member's  retirement or separation from service with vested rights,
unless the contrary is proven by competent evidence.
(ii) The New York city  board  of  education  retirement  board  shall
consider  a reclassification of the member's retirement or vesting as an
accidental disability retirement  effective  as  of  the  date  of  such
reclassification.
(iii) Such member's retirement option shall not be changed as a result
of such reclassification.
(iv)  The  member's  former  employer  at  the  time  of  the member's
retirement shall have  an  opportunity  to  be  heard  on  the  member's
application for reclassification by the New York city board of education
retirement  board according to procedures developed by the New York city
board of education retirement board.
(v) The New York city board of education retirement  board  is  hereby
authorized   to  promulgate  rules  and  regulations  to  implement  the
provisions of this paragraph.
(e) Notwithstanding any other provision of law to  the  contrary,  the
rules  and  regulations adopted pursuant to this section shall be deemed
to be amended to provide that if a retiree or vestee who:  (1)  has  met
the  criteria  of  paragraph  (d)  of  this subdivision and retired on a
service or disability retirement, would have met  the  criteria  if  not
already  retired  on  an  accidental  disability,  or was separated from
service with a vested right  to  deferred  payability  of  a  retirement
allowance; and (2) has not been retired for more than twenty-five years;
and  (3) dies from a qualifying World Trade Center condition, as defined
in section two of the retirement and social security law, as  determined
by  the  applicable  head of the retirement system or applicable medical
board, then unless the contrary be proven by  competent  evidence,  such
retiree  or  vestee  shall  be  deemed  to  have  died  as a natural and
proximate result of an accident sustained in the performance of duty and
not as a result of willful negligence on his or her part. Such retiree's
or vestee's eligible beneficiary, as set forth in  title  twenty-one  of
the  rules  and  regulation,  shall  be  entitled to an accidental death
benefit as provided by title twenty-one of the  rules  and  regulations,
however,  for the purposes of determining the salary base upon which the
accidental death benefit is calculated, the retiree or vestee  shall  be
deemed  to  have died on the date of his or her retirement or separation
from service with vested rights. Upon the retiree's or  vestee's  death,
the eligible beneficiary shall make a written application to the head of
the  retirement  system within the time for filing an application for an
accidental death benefit as set forth in title twenty-one of  the  rules
and  regulations requesting conversion of such retiree's service, vested
right or disability retirement benefit to an accidental  death  benefit.
At   the  time  of  such  conversion,  the  eligible  beneficiary  shall
relinquish all rights to the  prospective  benefits  payable  under  the
service  or  disability  retirement  benefit,  or  vested  right to such
benefit,  including  any  post-retirement  death  benefits,  since   the
retiree's or vestee's death. If the eligible beneficiary is not the only
beneficiary receiving or entitled to receive a benefit under the service
or  disability  retirement  benefit  (including,  but  not  limited  to,
post-retirement death benefits or benefits paid or payable  pursuant  to
the  retiree's  option  selection),  or  that will be eligible under the

vested right the accidental  death  benefit  payments  to  the  eligible
beneficiary  will be reduced by any amounts paid or payable to any other
beneficiary.
(f)  Notwithstanding  any  other provision of law to the contrary, the
rules and regulations adopted pursuant to this section shall  be  deemed
to  be amended to provide that if a member who: (1) has met the criteria
of paragraph (d) of this subdivision; (2)  dies  in  active  service  or
after separating from service with a vested right to deferred payability
of  a  retirement  allowance,  but  prior  to  the  payability  of  that
retirement allowance; and (3) dies from a qualifying World Trade  Center
condition,  as  defined  in  section  two  of  the retirement and social
security law, as determined by the applicable  head  of  the  retirement
system  or  applicable medical board, then unless the contrary be proven
by competent evidence, such member shall be deemed to  have  died  as  a
natural and proximate result of an accident sustained in the performance
of  duty  and  not as a result of willful negligence on his or her part.
Such member's eligible beneficiary, as set forth in title twenty-one  of
the  rules  and  regulations  shall  be  entitled to an accidental death
benefit provided he or she makes written application to the head of  the
retirement  system  as  set  forth  in title twenty-one of the rules and
regulations.
* 26. (a) Notwithstanding any other provision of this  article  or  of
any  general,  special  or local law to the contrary, and solely for the
purpose of determining eligibility  for  benefits  under  this  section,
where:
(i) a member reported in person to such member's usual place of public
employment  at  the direction of such member's public employer or to any
alternate worksite as directed by such  public  employer,  on  or  after
March  first, two thousand twenty, provided that such alternate worksite
was not such member's home or residence;
(ii) such member contracted  COVID-19  within  forty-five  days  after
reporting  to work as described in subparagraph (i) of this paragraph as
confirmed by a positive laboratory test or as diagnosed before or  after
such  member's  death by a licensed, certified, registered or authorized
physician, nurse practitioner, or  physician's  assistant  currently  in
good  standing in any state or the District of Columbia, or a physician,
nurse practitioner, or physician's assistant authorized to  practice  in
New  York  by  executive  order  during  the  declared COVID-19 state of
emergency; and
(iii) such  member  died  on  or  before  December  thirty-first,  two
thousand  twenty-four,  and  COVID-19  caused  or  contributed  to  such
member's death, as documented on such member's death certificate, or  as
certified  by  a physician, nurse practitioner, or physician's assistant
described in subparagraph (ii) of this paragraph who determines  with  a
reasonable   degree   of  medical  certainty  that  COVID-19  caused  or
contributed to the member's death, such member's  statutory  beneficiary
shall  receive  an  accidental  death  benefit,  unless  such  statutory
beneficiary elects to receive an ordinary death benefit.
(b) Any amount payable as  a  result  of  this  subdivision  shall  be
reduced  by  any  amount  paid by such member's retirement system to any
recipient of ordinary death benefits under this article.
(c) (i) Notwithstanding any  provision  of  this  article  or  of  any
general,  special  or  local  law  to  the  contrary, and solely for the
purpose of determining eligibility  for  benefits  under  this  section,
where a member:
(1) retired from his or her retirement system on or after March first,
two thousand twenty, and before July first, two thousand twenty;
(2)  on  or after March first, two thousand twenty, reported in person
to such member's usual place of public employment at  the  direction  of
such  member's  public employer or to any alternate worksite as directed
by such public employer, provided that such alternate worksite  was  not
such member's home or residence;
(3)  contracted COVID-19 within forty-five days after any such date of
reporting to work in person, as confirmed by a positive laboratory  test
or  as  diagnosed  before  or  after  such member's death by a licensed,
certified, registered or authorized physician,  nurse  practitioner,  or
physician's  assistant  currently  in  good standing in any state or the
District of Columbia, or a physician, nurse practitioner, or physician's
assistant authorized to practice in New York by executive  order  during
the declared COVID-19 state of emergency; and
(4)  such member died on or before December thirty-first, two thousand
twenty, and COVID-19 caused or contributed to such  member's  death,  as
documented  on  such  member's  death  certificate, or as certified by a
physician, nurse practitioner, or  physician's  assistant  described  in
clause  three  of  this  subparagraph  who  determines with a reasonable
degree of medical certainty that COVID-19 caused or contributed  to  the
member's  death,  such  member's  statutory beneficiary shall receive an
accidental death benefit if such statutory beneficiary elects conversion
of the  member's  service  or  disability  retirement  benefit  into  an
accidental death benefit.
(ii)  Such  member's  statutory  beneficiary,  as  defined  under this
section, for purposes of accidental death  benefits  payable  from  such
member's  retirement  system under this section, may, within ninety days
of such member's retirement or September  first,  two  thousand  twenty,
whichever  is later, apply to such member's retirement system to request
the conversion of such member's service or disability retirement benefit
into an accidental death benefit. For purposes of the salary  base  upon
which  the  accidental death benefit is calculated, such member shall be
deemed to have died on the date of such member's retirement. At the time
of such conversion, such  statutory  beneficiary  shall  relinquish  all
rights  to  the  prospective  benefits  payable  under  the  service  or
disability  retirement  statute,  including  any  post-retirement  death
benefits, since such member's death. If the statutory beneficiary is not
the  only  beneficiary  receiving or entitled to receive a benefit under
the service or disability retirement statute, including, but not limited
to, a post-retirement death benefit or benefit paid or payable  pursuant
to  the member's option selection, the accidental death benefit payments
to the statutory beneficiary will be reduced  by  any  amounts  paid  or
payable to any other statutory beneficiary.
(d)  In  order  to  be  eligible  for  the  benefit  described in this
subdivision, the applicable retirement system or systems are  authorized
to   promulgate   rules  and  regulations  to  administer  this  benefit
including, but not  limited  to,  requiring  a  statement  to  be  filed
confirming the member contracted COVID-19 and the dates and locations of
the member's employment.
* NB Repealed December 31, 2024