2023 New York Laws › RSS - Retirement and Social Security › Article 8 - New York State and Local Police and Fire Retirement System › Title 3 - Establishment, Management, Supervision and Financing › 313 - Management of Funds.

§  313.  Management  of  funds.  a.  The  funds of the police and fire
retirement system shall be managed in accordance with this section.
b. The comptroller shall be trustee of the several funds of the police
and fire  retirement  system.  Such  funds  shall  be  invested  by  the
comptroller  in  securities  in  which he or she is authorized by law to
invest the funds of the state, except that  he  or  she  may  invest  in
obligations  consisting  of  notes, bonds, debentures or equipment trust
certificates issued under an indenture, which are the direct obligations
of, or in the case of equipment trust certificates are secured by direct
obligations of, a railroad or industrial corporation, or  a  corporation
engaged  directly  and  primarily  in  the  production,  transportation,
distribution, or sale of  electricity,  or  gas,  or  the  operation  of
telephone  or telegraph systems or waterworks, or in some combination of
them; provided the obligor corporation  is  one  which  is  incorporated
under  the  laws  of  the United States, or any state thereof, or of the
District of Columbia, and said obligations shall be rated at the time of
purchase within the three  highest  classifications  established  by  at
least  two  standard  rating  services.  The  maximum  amount  that  the
comptroller may invest in such obligations shall not exceed  thirty  per
centum  of  the  assets of the New York state police and fire retirement
system's funds; and provided further that not more than two and one-half
per centum of  the  assets  of  the  New  York  state  police  and  fire
retirement  system's  funds  shall be invested in the obligations of any
one  corporation  of  the  highest  classification  and  subsidiary   or
subsidiaries thereof, that not more than two per centum of the assets of
the  New  York  state police and fire retirement system's funds shall be
invested in the obligations of any one corporation of the second highest
classification and subsidiary or subsidiaries  thereof,  that  not  more
than  one  and  one-half  per centum of the assets of the New York state
police and fire retirement system's  funds  shall  be  invested  in  the
obligations  of  any one corporation of the third highest classification
and subsidiary or subsidiaries thereof. He or  she  shall,  however,  be
subject  to  all terms, conditions, limitations and restrictions imposed
by this article and by law upon the  making  of  such  investments.  The
comptroller shall have full power:
1.  To hold, purchase, sell, assign, transfer or dispose of any of the
securities or investments, in which any of the funds of the  police  and
fire retirement system shall be invested, including the proceeds of such
investments and any monies belonging to such funds, and
2.  In his or her name as trustee, to foreclose mortgages upon default
or to take title to real property in such proceedings  in  lieu  thereof
and to lease and sell real property so acquired.
c.  The  comptroller annually shall credit to each of the funds of the
police and fire retirement system regular interest on  the  mean  amount
therein for the preceding year.
d.  The  custody of all funds of the police and fire retirement system
shall be in the charge of the head of the division of  the  treasury  of
the  department  of taxation and finance, subject to the supervision and
control of the commissioner of taxation and finance.
e. Payment of all pensions, annuities and other benefits shall be made
as provided in this article. For the purpose  of  meeting  disbursements
for  pensions,  annuities and other payments ordered by the comptroller,
the head of such division may keep on deposit an  available  fund  which
shall not exceed ten per centum of the total amount of the several funds
of  the  police  and fire retirement system. Every such deposit shall be
kept only in a bank or trust company organized under the  laws  of  this
state,  or in a national bank located in this state, which shall furnish
adequate security therefor.
f. The comptroller, however, shall have a fund in his or her immediate
possession. Such fund shall be used for the immediate payment of:
1. All pensions, annuities and other benefits, and
2.  Such  expenses  as  may  necessarily  be  incurred  in  acquiring,
servicing and foreclosing  mortgages  and  in  acquiring,  managing  and
protecting investments, and
3.  Such special expenditures for which the police and fire retirement
system will be paid by the state or a participating employer. Such  fund
shall  be  reimbursed  from time to time by the head of such division on
the warrant of the comptroller.
g. Neither the comptroller nor any person employed on the work of  the
police and fire retirement system shall:
1.  Except  as herein provided, have any interest, direct or indirect,
in the gains or profits  of  any  investment  of  the  police  and  fire
retirement system, nor, in connection therewith, directly or indirectly,
receive any pay or emolument for his or her services.
2. Except as provided in section three hundred fifty of this article:
(a)  Directly  or indirectly, for himself or herself or as an agent or
partner of others, borrow any of its funds or deposits or in any  manner
use  the  same except to make such current and necessary payments as are
authorized by the comptroller, or
(b) Become an endorser, surety or an obligor in any manner  of  monies
loaned by or borrowed of such funds.
h.  The police and fire retirement system may use a part of its funds,
not exceeding ten per centum  of  its  assets,  (1)  for  purchasing  or
leasing  of land in the city of Albany and the construction thereon of a
suitable office  building  or  buildings  for  the  transaction  of  the
business of the retirement system, (2) for purchasing or leasing of land
in  the  cities  of  Albany,  Syracuse,  Buffalo,  Binghamton, New York,
Rochester and Utica and the construction thereon of  a  suitable  office
building  or  buildings  for purposes of lease or sale to the state, (3)
for purchasing or leasing of land in the city of Albany on the north and
south sides of Washington avenue commonly known  as  the  "Campus  Site"
acquired  by  the  state  for  a  state  building  site  pursuant to the
provisions of chapter five hundred seventy-two of the laws  of  nineteen
hundred  forty-seven  and  the  construction  thereon  of  power  plants
including service connections, electric  substations  including  service
connections,   garages,  warehouses  and  restaurant  facilities  deemed
necessary for the efficient  and  economical  operation  of  the  office
building or buildings constructed on such land and (4) for purchasing or
leasing of land in the city of Albany acquired by the state for suitable
parking  facilities  for the use primarily of employees of the state and
persons having business with state departments and  state  agencies  and
the   construction   thereon   of  such  structures,  appurtenances  and
facilities deemed necessary for the efficient and  economical  operation
of  the  parking  facilities  constructed  on  such  land  and  (5)  for
purchasing or leasing  of  land  in  locations  approved  by  the  state
university  trustees  and the construction, acquisition, reconstruction,
rehabilitation  or  improvement  of  suitable  buildings  or  facilities
thereon   for  purposes  of  lease  or  sale  to  the  state  university
construction fund, such buildings or facilities to be used by the  state
university  or  by  state-operated institutions or statutory or contract
colleges under the jurisdiction  of  the  state  university  or  by  the
students,  faculty  and  staff  of  the  state university or of any such
state-operated institution or statutory or contract college,  and  their
families.
The  police  and fire retirement system from time to time may lease to
any public  agency  any  portion  of  a  building  constructed  for  the

transaction  of its business which may not be required for such purpose,
upon such terms and conditions as shall be deemed to  be  for  the  best
interest of the police and fire retirement system.
Real  property  of  the  police and fire retirement system acquired or
constructed pursuant to this subdivision shall be exempt from taxation.
i. At the close of each fiscal year, the average  rate  of  investment
earnings  of  the retirement system shall be computed by the actuary and
certified to the comptroller. This rate shall  be  determined  from  the
investment  earnings  during  the calendar year which ended three months
prior to the close of the fiscal year. For any year  that  such  average
rate  of  earnings is in excess of three per centum but not in excess of
four per centum,  the  comptroller  shall  declare  a  rate  of  special
interest,  for  members  earning  regular  interest of three per centum,
equal to the difference between such average rate of earnings and  three
per  centum, expressed to the lower one-tenth of one per centum, but not
in excess of one per centum. For any year, commencing  with  the  fiscal
year  the  first  day of which is April first, nineteen hundred seventy,
that such average rate of earnings is in excess of four per centum,  the
special  rate  of interest for members earning regular interest of three
per centum shall be equal to the difference between such average rate of
earnings and three per centum, expressed to the lower one-tenth  of  one
per centum, but not in excess of two per centum, and for members earning
regular  interest of four per centum, it shall be the difference between
such average rate of earnings and four  per  centum,  expressed  to  the
lower  one-tenth of one per centum, but not in excess of one per centum.
Special interest at such rates, shall be credited, by the comptroller at
the same time that regular  interest  is  credited,  to  the  individual
annuity  savings  accounts of persons who are members as of the close of
the fiscal year. Special interest shall not be considered in determining
rates of contribution of members. In the case of persons who last became
members on or after July  first,  nineteen  hundred  seventy-three,  the
provisions  of  this  subdivision  shall  apply only to the fiscal years
beginning April first, nineteen hundred  seventy-two  and  ending  March
thirty-first, nineteen hundred seventy-three.
j. The retirement system may invest, within the limitations authorized
for  investments in conventional mortgages, a part of its funds in first
mortgages on real property located anywhere within the boundaries of the
United States and  leased  to  the  government  of  the  United  States,
provided however, that no such investment shall be made unless the terms
of  the  mortgage  shall  provide for amortization payments in an amount
sufficient to completely amortize the loan  within  the  period  of  the
lease.