There is a newer version of the New York Consolidated Laws
2006 New York Code - Contributions Of The City And Their Use; Contingent Reserve Fund.
§ 13-127 Contributions of the city and their use; contingent reserve
fund. a. The contingent reserve fund shall be the fund in which shall be
accumulated the reserve necessary to pay all pensions and the
reserve-for-increased-take-home-pay, and all death benefits allowable by
the city on account of the city-service of members to whom prior-service
is not allowable as provided in this chapter.
b. (1) (a) Subject to the provisions of subparagraph (d) of this
paragraph and paragraph five of this subdivision, the city shall
contribute to the contingent reserve fund:
(i) annually an amount to be known as the normal contribution; and
(ii) in each city fiscal year during the period beginning with fiscal
year nineteen hundred seventy-seven--nineteen hundred seventy-eight and
ending on the last day of fiscal year nineteen hundred
seventy-nine--nineteen hundred eighty, one annual installment of an
additional amount which shall be known as the original unfunded accrued
liability contribution, and which shall be determined as provided for in
subparagraph (a) of paragraph three of this subdivision; and
(iii) in each city fiscal year during the period beginning with fiscal
year nineteen hundred eighty--nineteen hundred eighty-one and ending on
the last day of fiscal year two thousand fourteen--two thousand fifteen,
the annual installment, applicable to such fiscal year, of an additional
amount which shall be known as the revised unfunded accrued liability
contribution and which shall be determined as provided for in
subparagraph (b) of paragraph three of this subdivision; and
(iv) in each city fiscal year during the period beginning with fiscal
year nineteen hundred eighty-one--nineteen hundred eighty-two and ending
on the last day of fiscal year two thousand twenty--two thousand
twenty-one, the annual installment, applicable to such fiscal year, of
an additional amount which shall be known as the balance sheet liability
contribution and which shall be determined as provided for in paragraph
four of this subdivision; and
(v) in fiscal year nineteen hundred eighty--nineteen hundred
eighty-one, the amount of one year's interest, at the rate of seven and
one-half per centum per annum, on the amount of the balance sheet
liability as of June thirtieth, nineteen hundred eighty, as determined
pursuant to the provisions of paragraph four of this subdivision; and
(vi) in each city fiscal year, beginning with fiscal year nineteen
hundred eighty--nineteen hundred eighty-one and ending on the last day
of fiscal year nineteen hundred ninety-four--nineteen hundred
ninety-five, the amount required to fulfill the city's obligation, if
any, which accrued in such fiscal year, to make contributions on account
of increased-take-home-pay; and
(vii) in each city fiscal year, beginning with fiscal year nineteen
hundred eighty--nineteen hundred eighty-one and ending on the last day
of fiscal year nineteen hundred ninety-four--nineteen hundred
ninety-five, the amount required to fulfill the city's obligation, which
accrued in such fiscal year under the provisions of subdivision twenty
of section two hundred forty-three of the military law, to pay in behalf
of members qualifying for such benefit, member contributions with
respect to certain periods of the military service of such members.
(b) (i) Subject to the provisions of item (iv) of this subparagraph,
if the nineteen hundred eighty unfunded accrued liability adjustment
determined pursuant to subparagraph (c) of paragraph three of this
subdivision b 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 (a) of this paragraph and otherwise pursuant to law shall
be reduced by the amount of one annual installment of such nineteen
hundred eighty unfunded accrued liability adjustment.
(ii) Subject to the provisions of subparagraph (d) of this paragraph,
if the nineteen hundred eighty unfunded accrued liability adjustment
determined pursuant to subparagraph (c) of paragraph three of this
subdivision is a charge, the city shall contribute in each city fiscal
year, commencing with the nineteen hundred eighty--nineteen hundred
eighty-one fiscal year and ending with the two thousand nine--two
thousand ten fiscal year, in addition to the amounts required to be
contributed under the provisions of subparagraph (a) of this paragraph,
one annual installment of such nineteen hundred eighty unfunded accrued
liability adjustment.
(iii) Subject to the provisions of item (iv) of this subparagraph, 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 (a) of this
paragraph and the applicable provisions of items (i) and (ii) of this
subparagraph 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 (c) of paragraph three of this subdivision.
(iii-a) If the nineteen hundred eighty-five unfunded accrued liability
adjustment determined with respect to any obligor pursuant to the
applicable provisions of sub-items (A) to (G), inclusive, of item (vii)
of subparagraph (c) of paragraph three of this subdivision b is a
charge, the total of the amounts required to be contributed by such
obligor 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 (a) of this paragraph one and the applicable
provisions of items (i) and (ii) of this subparagraph (b) and otherwise
pursuant to law shall be increased by the amount of one annual
installment of such nineteen hundred eighty-five unfunded accrued
liability adjustment determined with respect to such obligor.
(iii-b) If the nineteen hundred eighty-five unfunded accrued liability
adjustment determined with respect to any obligor pursuant to the
applicable provisions of such sub-items (A) to (G), inclusive, is a
credit, the total of the amounts required to be contributed by such
obligor 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 (a) of this paragraph one and the applicable
provisions of items (i) and (ii) of this subparagraph (b) and otherwise
pursuant to law shall be reduced by the amount of one annual installment
of such nineteen hundred eighty-five unfunded accrued liability
adjustment with respect to such obligor.
(iv) The installments of the nineteen hundred eighty-two unfunded
accrued liability adjustment, and, if the nineteen hundred eighty
unfunded accrued liability adjustment is a credit, the installments of
such nineteen hundred eighty adjustment credit, shall be allocated among
the city and other obligors required to pay public employer
contributions on account of members, such allocation to be made in
accordance with the shares of such installments attributable to them
pursuant to the provisions of law prescribing their obligations to make
or assume responsibility for employer contributions.
(v) For the purpose of effectuating the nineteen hundred eighty-eight
unfunded accrued liability adjustment provided for in section 13-638.1
of the code, contributions to the contingent reserve fund on account of
charges shall be made by responsible obligors (as defined in paragraph
six of subdivision a of such section) or credits shall be allowed to
such obligors against contributions otherwise payable by them, 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 as provided for in
such section 13-638.1 and the provisions of subparagraph (b) of
paragraph two of this subdivision b shall be deemed to be conformably
modified for such purpose.
(c) (i) Any amount required by the provisions of items (iii), (iv),
(v), (vi) and (vii) of subparagraph (a) of this paragraph and
subparagraph (b) of this paragraph and section 13-704 of this title to
be contributed to the contingent reserve fund in the city's nineteen
hundred eighty--nineteen hundred eighty-one fiscal year or any
subsequent fiscal year shall be payable with interest on such amount at
a rate per centum per annum equal to the rate per centum per annum
required to be used for the purpose of any actuarial valuation,
determination or appraisal made to determine the amount of the normal
contribution payable to the contingent reserve fund in such fiscal year.
(ii) Any amount required to be contributed to the contingent reserve
fund in any fiscal year of the city preceding the nineteen hundred
eighty--nineteen hundred eighty-one fiscal year shall be deemed to have
been required to be paid with interest on such amount at a rate per
centum per annum equal to the rate per centum per annum required to be
used for the purpose of any actuarial valuation, determination or
appraisal made to determine the amount of the normal contribution
payable to the contingent reserve fund in such fiscal year.
(iii) It is hereby declared that the provisions of items (i) and (ii)
of this subparagraph, insofar as they relate to provisions of this
chapter or other laws requiring payment of employer contributions to the
retirement system prior to the date of enactment of the act which added
this subparagraph, express the intent of such provisions of this title
or other laws requiring such payment.
(d) The requirements of subparagraph (a) of this paragraph with
respect to contributions to the contingent reserve fund and the
requirements, if any, of subparagraph (b) of this paragraph with respect
to contributions to such fund, and the requirements of subparagraph (c)
of this paragraph with respect to payment of interest on contributions
to such fund shall be subject to the provisions of sections 13-130,
13-131 and 13-132 of this chapter.
(2) Normal contribution. (a) (i) Upon the basis of the latest
mortality and other tables herein authorized and regular interest, the
actuary shall determine as of June thirtieth, nineteen hundred eighty
and as of each succeeding June thirtieth, the amount of the total
liability for all benefits provided in this title, 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, 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.
(ii) For the purposes of subparagraphs (b) and (c) of this paragraph,
the actuary shall determine, as of June thirtieth, two thousand and as
of each succeeding June thirtieth, the total liability of the retirement
system which shall be an amount equal to the sum of (A) the total
liability for all benefits as determined pursuant to item (i) of this
subparagraph, (B) the amount, as estimated by the actuary, of the total
liability of the retirement system on account of all payments which the
retirement system may be required to make for base fiscal years
beginning on or after July first, nineteen hundred ninety-nine to the
correction officers' variable supplements fund and the correction
captains' and above variable supplements fund, and (C) 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.
(b) The normal rate of contribution shall be the rate per centum
obtained:
(i) by deducting from the amount of such total liability the sum of:
(A) (1) the amount obtained by adding together the present value of
all required future revised unfunded accrued liability contributions and
the present value of all required future payments of the nineteen
hundred eighty unfunded accrued liability adjustment, determined
pursuant to subparagraph (c) of paragraph three of this subdivision, if
such adjustment is a charge; or
(2) the remainder obtained by subtracting from the present value of
all required future revised unfunded accrued liability contributions,
the present value of all future installments of the nineteen hundred
eighty unfunded accrued liability adjustment required to be credited, if
such nineteen hundred eighty adjustment is a credit;
(3) minus (whether (1) or (2) of this sub-item (A) is applicable) the
present value of all future installments of the nineteen hundred
eighty-two unfunded accrued liability adjustment; and
(A-1) the present value of all future installments of the aggregate
nineteen hundred eighty-five unfunded accrued liability adjustment
determined pursuant to sub-item (K) of item (vii) of subparagraph (c) of
paragraph three of this subdivision b; and
(B) the present value of all required future balance sheet liability
contributions, plus, in the case of the determination of the normal
contributions payable in fiscal year nineteen hundred eighty--nineteen
hundred eighty-one, the present value, as of June thirtieth, nineteen
hundred eighty, of the payment of interest on the balance sheet
liability as required by item (v) of subparagraph (a) of paragraph one
of this subdivision; and
(C) the present value of all required future payments, pursuant to
section 13-704 of this title, of installments of losses in excess of
installments of gains on dispositions of securities within the meaning
of such section; and
(D) 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
(E) the total funds on hand, including the amount of any unpaid moneys
appropriated pursuant to section 13-133 of this chapter 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
(F) 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 this title which are not
covered by the preceding subitems of this item (i); and
(ii) by dividing the remainder by one per centum of the present value
of the prospective future salaries of all members, as computed by the
actuary on the basis of the latest mortality and service tables adopted
pursuant to section 13-121 of this subchapter, and on the basis of
regular interest. The normal rate of contribution determined by the
actuary shall not be less than zero, shall be certified by the actuary
after each such valuation and shall continue in force until the next
succeeding valuation and certification.
(c) The amount of the normal contribution due from the city to the
contingent reserve fund in each city fiscal year, commencing with the
nineteen hundred eighty--nineteen hundred eighty-one fiscal year, shall
be the amount obtained by multiplying the normal rate of contribution,
as determined by the actuary as of June thirtieth next preceding such
fiscal year, by the aggregate annual salaries of the members on such
next preceding June thirtieth, and shall be payable in such fiscal year
next following such June thirtieth, together with such regular interest
thereon which may be due, if any, as calculated by the actuary. In the
case of the normal contribution payable in the nineteen hundred
eighty--nineteen hundred eighty-one fiscal year and in any subsequent
fiscal year, the term "regular interest", as used in this subparagraph,
shall mean regular interest as defined by the applicable provisions of
subparagraph (ii) or subparagraph (iii) of paragraph (c) or paragraph
(d) of subdivision twelve of section 13-101 of this chapter.
(3) Unfunded accrued liability contributions. (a) The original
unfunded accrued liability contribution shall be an amount which, if
paid to the contingent reserve fund in forty equal annual installments,
commencing with payment of a first installment in the city's nineteen
hundred seventy-seven--nineteen hundred seventy-eight fiscal year, would
be the actuarial equivalent, on the basis of five and one-half per
centum interest and the actuarial tables in effect as of July first,
nineteen hundred seventy-seven, of the difference between the accrued
liability excluding the liability for benefits attributable to the
annuity savings fund on June thirtieth, nineteen hundred seventy-five
and the total funds on hand, excluding the amount in the annuity savings
fund, but including the amount of any unpaid moneys appropriated
pursuant to section 13-133 of this chapter. The original unfunded
accrued liability contributions shall include the payments required by
section 13-130 of this chapter.
(b) (i) The revised unfunded accrued liability contribution shall be
an amount determined as prescribed in items (ii), (iii), (iv), (v), (vi)
and (vii) of this subparagraph (b).
(ii) To the amount of the difference constituting the unfunded accrued
liability as of June thirtieth, nineteen hundred seventy-five heretofore
determined pursuant to the provisions of this paragraph as in effect on
July first, nineteen hundred seventy-seven, there shall be added
interest thereon at the rate of five and one-half per centum per annum
for the period from July first, nineteen hundred seventy-five to June
thirtieth, nineteen hundred eighty.
(iii) (A) There shall be computed, in the manner provided in sub-item
(B) 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.
(B) Such discounted value of each such installment shall be computed
as of January first of the city's second fiscal year preceding the
fiscal year in which such installment was payable or would have been
payable and on the basis of five and one-half per centum interest per
annum on the amount of such installment.
(C) There shall be computed with respect to such discounted value of
each such installment, interest thereon from January first of such
second fiscal year preceding the fiscal year in which such installment
was or would have been payable to June thirtieth, nineteen hundred
eighty at the rate of five and one-half per centum per annum.
(D) The discounted values of all of such installments with respect to
such fiscal years, computed as provided for in sub-items (A) and (B) of
this item, together with interest on each installment as provided for in
sub-item (C) of this item, shall be added together.
(iv) From the sum computed pursuant to item (ii) of this subparagraph,
the sum computed pursuant to item (iii) of this subparagraph shall be
subtracted.
(v) With respect to each city fiscal year occurring during the period
beginning on July first, nineteen hundred eighty and ending on June
thirtieth, nineteen hundred eighty-two, the revised unfunded accrued
liability contribution shall be the annual installment, applicable to
such fiscal year, of an amount which, if paid to the contingent reserve
fund in thirty-five equal annual installments, commencing with payment
of a first installment in the city's nineteen hundred eighty--nineteen
hundred eighty-one fiscal year, would be the actuarial equivalent, on
the basis of seven and one-half per centum interest per annum, of the
remainder computed pursuant to item (iv) of this subparagraph.
(vi) With respect to each city fiscal year occurring during the period
beginning on July first, nineteen hundred eighty-two and ending on June
thirtieth, nineteen hundred eighty-eight, the revised unfunded accrued
liability contribution shall be the annual installment, applicable to
such fiscal year, of an amount which, if paid to the contingent reserve
fund in thirty-three equal annual installments, commencing with payment
of a first installment in the city's nineteen hundred
eighty-two--nineteen hundred eighty-three fiscal year, would be the
actuarial equivalent, on the basis of eight per centum interest per
annum, of the present value, as of June thirtieth, nineteen hundred
eighty-two on the basis of seven and one-half per centum interest per
annum, of the installments of the unfunded accrued liability
contribution computed pursuant to item (v) of this subparagraph, which
installments are hypothetically allocated by such item (v) to designated
city fiscal years succeeding June thirtieth, nineteen hundred
eighty-two.
(vii) With respect to each city fiscal year occurring during the
period beginning on July first, nineteen hundred eighty-eight and ending
on June thirtieth, two thousand fifteen, the revised unfunded accrued
liability contribution shall be the annual installment, applicable to
such fiscal year, of an amount which, when paid to the contingent
reserve fund in twenty-seven equal annual installments, commencing with
payment of a first installment in the city's nineteen hundred
eighty-eight--nineteen hundred eighty-nine fiscal year, shall be the
actuarial equivalent, on the basis of eight and one-quarter per centum
interest per annum, of the present value, as of June thirtieth, nineteen
hundred eighty-eight on the basis of eight per centum interest per
annum, of the installments of the unfunded accrued liability
contribution computed pursuant to item (vi) of this subparagraph, which
installments are hypothetically allocated by such item (vi) to
designated city fiscal years succeeding June thirtieth, nineteen hundred
eighty-eight.
(c) (i) The nineteen hundred eighty unfunded accrued liability
adjustment shall be an amount determined as prescribed in items (ii),
(iii), (iv) and (v) of this subparagraph.
(ii) (A) Upon the basis of the actuarial tables in effect as of June
thirtieth, nineteen hundred eighty for valuation purposes and interest
at the rate of seven and one-half per centum per annum, there shall be
determined, as of June thirtieth, nineteen hundred eighty, the amount of
the total liability for all benefits provided in this chapter, 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.
(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
paragraph four of this subdivision b); and
(3) the present value, as of such June thirtieth, of all then required
future payments, pursuant to section 13-704 of this title, of
installments of losses in excess of installments of gains on
dispositions of securities within the meaning of such section; and
(4) the present value, as of such June thirtieth, of future member
contributions of members subject to article fourteen of the retirement
and social security law; and
(5) the total funds on hand as of such June thirtieth, excluding the
amount in the annuity savings fund, but including the amount of any
unpaid moneys appropriated pursuant to section 13-133 of this chapter.
(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 item
(iv) of subparagraph (b) 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 item
(iv) of subparagraph (b) of this paragraph, the former amount shall be
subtracted from the latter amount and the remainder resulting from such
subtraction shall constitute a credit.
(iv) (A) If the remainder computed pursuant to item (iii) of this
subparagraph is a charge, the nineteen hundred eighty unfunded accrued
liability adjustment shall be an amount which, if paid to the contingent
reserve fund in thirty equal annual installments, commencing with
payment of a first installment in the city's nineteen hundred
eighty--nineteen hundred eighty-one fiscal year, would be the actuarial
equivalent, on the basis of seven and one-half per centum interest per
annum, of such remainder.
(B) If the remainder computed pursuant to item (iii) of this
subparagraph is a credit, the nineteen hundred eighty unfunded accrued
liability adjustment shall be an amount which, if credited in thirty
equal annual installments (the first of which installments is to be
credited in the city's nineteen hundred eighty--nineteen hundred
eighty-one fiscal year) in reduction of the amounts which the city (and
other obligors required to pay public employer contributions on account
of members) would otherwise be required to pay to the contingent reserve
fund pursuant to items (i), (iii), (iv), (v), (vi) and (vii) of
subparagraph (a) of paragraph one of this subdivision or otherwise
pursuant to law, would be the actuarial equivalent, on the basis of
seven and one-half per centum interest per annum, of such remainder.
(v)(A) With respect to determination of the amount of contributions
payable to the contingent reserve fund in each of the city's nineteen
hundred eighty--nineteen hundred eighty-one and nineteen hundred
eighty-one--nineteen hundred eighty-two fiscal years, the annual
installment of the nineteen hundred eighty unfunded accrued liability
adjustment computed pursuant to item (iv) of this subparagraph, which
installment is applicable to such fiscal year, shall be applied as a
charge or a credit, as the case may be, in relation to such
contributions payable in such fiscal year.
(B) With respect to determination of the amount of contributions
payable to the contingent reserve fund in each city fiscal year
occurring during the period beginning on July first, nineteen hundred
eighty-two and ending on June thirtieth, nineteen hundred eighty-eight,
the nineteen hundred eighty unfunded accrued liability adjustment shall
be an amount which, if paid (if a charge) or credited (if a credit) in
twenty-eight equal annual installments, commencing with a payment or
credit, as the case may be, in the city's nineteen hundred
eighty-two--nineteen hundred eighty-three fiscal year, would be the
actuarial equivalent, on the basis of eight per centum interest per
annum, of the present value, as of June thirtieth, nineteen hundred
eighty-two on the basis of seven and one-half per centum interest per
annum, of those installments of the nineteen hundred eighty unfunded
accrued liability adjustment computed pursuant to item (iv) of this
subparagraph, 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, 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, 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.
(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 an amount which, if credited in thirty equal annual
installments (the first of which installments is to be credited in the
city's nineteen hundred eighty-two--nineteen hundred eighty-three fiscal
year) in reduction of the amounts which the city (and other obligors
required to pay public employer contribution on account of members)
would otherwise be required to pay to the contingent reserve fund
pursuant to items (i), (iii), (iv), (vi) and (vii) of subparagraph (a)
of paragraph (1) of this subdivision b or otherwise pursuant to law,
would be the actuarial equivalent, on the basis of eight per centum
interest per annum, of the excess of the amount computed pursuant to
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 city (and other
obligors required to pay public employer contribution on account of
members) would otherwise be required to pay to the contingent reserve
fund pursuant to items (i), (iii), (iv), (vi) and (vii) of subparagraph
(a) of paragraph (1) of this subdivision b or otherwise pursuant to law,
shall be the actuarial equivalent, on the basis of eight and one-quarter
per centum interest per annum, of the present value, as of June
thirtieth, nineteen hundred eighty-eight on the basis of eight per
centum interest per annum, of those installments of the nineteen hundred
eighty-two unfunded accrued liability adjustment computed pursuant to
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) With respect to any obligor required by law to make
contributions to the contingent reserve fund, the nineteen hundred
eighty-five unfunded accrued liability adjustment shall be an amount
determined for such obligor as prescribed by the applicable provisions
of the succeeding sub-items 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 cost method of ascertaining such actuarial
accrued liability.
(D) The actuary shall determine the portion of the liability (other
than liability on account of the senior colleges of the city university)
computed pursuant to sub-item (B) of this item (vii), which portion is
attributable to each obligor required by law to make contributions to
the contingent reserve fund of the retirement system.
(E) The actuary shall determine the portion of the liability (other
than liability on account of such senior colleges) computed pursuant to
sub-item (C) of this item (vii), which portion is attributable to each
such obligor.
(F) If the portion computed pursuant to sub-item (E) of this item
(vii) with respect to any such obligor is greater than the portion
computed pursuant to sub-item (D) of this item (vii) with respect to
such obligor, the nineteen hundred eighty-five unfunded accrued
liability adjustment with respect to such obligor for each city fiscal
year occurring during the period beginning on July first, nineteen
hundred eighty-five and ending on June thirtieth, nineteen hundred
eighty-eight, shall be the annual installment applicable to such fiscal
year of a charge in an amount which, if paid by such obligor to the
contingent reserve fund in thirty equal annual installments, commencing
with payment of a first installment in the city's nineteen hundred
eighty-five--nineteen hundred eighty-six fiscal year, would be the
actuarial equivalent, on the basis of eight per centum interest per
annum, of the excess of the amount of such portion computed pursuant to
sub-item (E) of this item (vii) over the amount of such portion computed
pursuant to sub-item (D) of this item (vii).
(F-1) If the portion computed pursuant to sub-item (E) of this item
(vii) with respect to any such obligor is greater than the portion
computed pursuant to sub-item (D) of this item (vii) with respect to
such obligor, the nineteen hundred eighty-five unfunded accrued
liability adjustment with respect to such obligor for each city fiscal
year occurring during the period beginning on July first, nineteen
hundred eighty-eight and ending on June thirtieth, two thousand fifteen,
shall be the annual installment applicable to such fiscal year of a
charge in an amount which, when paid by such obligor 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 the installments of unfunded accrued liability adjustment
computed pursuant to sub-item (F) of this item (vii), which installments
are hypothetically allocated by such sub-item (F) to designated city
fiscal years succeeding June thirtieth, nineteen hundred eighty-eight.
(G) If the portion computed pursuant to sub-item (D) of this item
(vii) with respect to any such obligor is greater than the portion
computed pursuant to sub-item (E) of this item (vii) with respect to
such obligor, the nineteen hundred eighty-five unfunded accrued
liability adjustment with respect to such obligor for each city fiscal
year occurring during the period beginning on July first, nineteen
hundred eighty-five and ending on June thirtieth, nineteen hundred
eighty-eight, shall be the annual installment applicable to such fiscal
year of a credit in 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 such obligor would otherwise be
required to pay to the contingent reserve fund pursuant to items (i),
(iii), (iv), (v), (vi) and (vii) of subparagraph (a) of paragraph one of
this subdivision b or otherwise pursuant to law, would be the actuarial
equivalent, on the basis of eight per centum interest per annum, of the
excess of the amount of such portion computed pursuant to sub-item (D)
of this item (vii) over the amount of such portion computed pursuant to
sub-item (E) of this item (vii).
(G-1) If the portion computed pursuant to sub-item (D) of this item
(vii) with respect to any such obligor is greater than the portion
computed pursuant to sub-item (E) of this item (vii) with respect to
such obligor, the nineteen hundred eighty-five unfunded accrued
liability adjustment with respect to such obligor for each city fiscal
year occurring during the period beginning on July first, nineteen
hundred eighty-eight and ending on June thirtieth, two thousand fifteen,
shall be a credit in 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 such obligor
would otherwise be required to pay to the contingent reserve fund
pursuant to items (i), (iii), (iv), (v), (vi) and (vii) of subparagraph
(a) of paragraph one of this subdivision b or otherwise pursuant to law,
shall be the actuarial equivalent, on the basis of eight and one-quarter
per centum interest per annum, of the present value, as of June
thirtieth, nineteen hundred eighty-eight on the basis of eight per
centum interest per annum, of those installments of the unfunded accrued
liability adjustment computed pursuant to sub-item (G) of this item
(vii), which installments are hypothetically allocated by such sub-item
(G) to designated city fiscal years succeeding June thirtieth, nineteen
hundred eighty-eight.
(H) The actuary shall determine the portion of the liability computed
pursuant to sub-item (B) of this item (vii), which portion is
attributable to the senior colleges of the city university of New York.
(I) The actuary shall determine the portion of the liability computed
pursuant to sub-item (C) of this item (vii), which portion is
attributable to such senior colleges.
(J) With respect to 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 attributable to the
senior colleges of such university shall be the annual installment
applicable to such fiscal year 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 city
and/or the state of New York would otherwise be required to pay to the
contingent reserve fund pursuant to items (i), (iii), (iv), (v), (vi)
and (vii) of subparagraph (a) of paragraph one of this subdivision b or
otherwise pursuant to law, would be the actuarial equivalent, on the
basis of eight per centum interest per annum, of the excess of the
amount of such portion computed pursuant to sub-item (H) of this item
(vii) over the amount of such portion computed pursuant to sub-item (I)
of this item (vii).
(J-1) 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 nineteen hundred
eighty-five unfunded accrued liability adjustment attributable to the
senior colleges of such university shall be the annual installment
applicable to such fiscal year of 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
city and/or the state of New York would otherwise be required to pay to
the contingent reserve fund pursuant to items (i), (iii), (iv), (v),
(vi) and (vii) of subparagraph (a) of paragraph one of this subdivision
b or otherwise pursuant to law, shall be the actuarial equivalent, on
the basis of eight and one-quarter per centum interest per annum, of the
present value, as of June thirtieth, nineteen hundred eighty-eight on
the basis of eight per centum interest per annum, of those installments
of the unfunded accrued liability adjustment computed pursuant to
sub-item (J) of this item (vii), which installments are hypothetically
allocated by such sub-item (J) to designated city fiscal years
succeeding June thirtieth, nineteen hundred eighty-eight.
(K) With respect to 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 aggregate nineteen hundred
eighty-five unfunded accrued liability adjustment shall be the annual
installment applicable to such fiscal year of an amount, which, if paid
to the contingent reserve fund in thirty equal annual installments,
commencing with payment of a first installment in the city's nineteen
hundred eighty-five--nineteen hundred eighty-six fiscal year, would be
the actuarial equivalent, on the basis of eight per centum interest per
annum, of the excess of the amount computed pursuant to sub-item (C) of
this item (vii) over the amount computed pursuant to sub-item (B) of
this item (vii).
(K-1) With respect to each city fiscal year occurring during the
period beginning on July first, nineteen hundred eighty-eight and ending
June thirtieth, two thousand fifteen, the aggregate nineteen hundred
eighty-five unfunded accrued liability adjustment 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 adjustment computed pursuant to sub-item (K) of this
item (vii), which installments are hypothetically allocated by such
sub-item (K) to designated city fiscal years succeeding June thirtieth,
nineteen hundred eighty-eight.
(4) (a) As used in this section, the following words and phrases,
unless a different meaning is plainly required by the context, shall
have the following meanings:
(i) (A) "Normal contribution for balance sheet liability purposes".
The hypothetical amount which the normal contribution payable in each
city fiscal year occurring during the period beginning on July first,
nineteen hundred seventy-four and ending on June thirtieth, nineteen
hundred eighty would have equalled if such normal contribution had been
required by law to be paid to the contingent reserve fund in the city
fiscal year in which the obligation to make such normal contribution
accrued and such normal contribution had been required by law to be
determined in the manner provided for in sub-items (B), (C) and (D) of
this item (i).
(B) Upon the basis of the mortality and other tables effective under
this chapter as of July first, nineteen hundred seventy-seven and
interest at the rate of five and one-half per centum per annum, the
actuary shall determine, as of June thirtieth next preceding each such
fiscal year for which such normal contribution is being determined
(hereinafter referred to as the "subject fiscal year") the amount of the
then total liability for all benefits provided in this chapter, 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, excluding the
then liability on account of future annual contributions, for balance
sheet liability purposes, on account of
reserves-for-increased-take-home-pay (as defined in item (iv) of this
subparagraph (a)), if any, and the then liability for benefits
attributable to the annuity savings fund.
(C) The hypothetical normal rate of contribution with respect to the
subject fiscal year shall be the rate per centum obtained:
(i) by deducting from the amount of such total liability the sum of:
(A) the present value of all then required future unfunded accrued
liability contributions for balance sheet liability purposes (as defined
in item (ii) of this subparagraph (a)); and
(B) the present value of all then required future annual
contributions, for balance sheet liability purposes, on account of
amortization of losses on dispositions of certain securities within the
meaning of section 13-704 of this title (as defined in item (iii) of
this subparagraph (a)); and
(C) the present value of future member contributions of members
subject to article fourteen of the retirement and social security law;
and
(D) the amount obtained by adding together the total funds on hand
(excluding therefrom the amount in the annuity savings fund) and the
balance sheet liability as of such June thirtieth next preceding the
subject fiscal year; and
(ii) by dividing the remainder by one per centum of the then present
value of the prospective future salaries of all members, as computed on
the basis of the mortality and service tables adopted pursuant to
section 13-121 of this chapter and in effect on July first, nineteen
hundred seventy-seven, and on the basis of interest at the rate of five
and one-half per centum per annum.
(D) The amount of the normal contribution for balance sheet liability
purposes hypothetically payable in the subject fiscal year shall be the
amount obtained (1) by multiplying such hypothetical normal contribution
rate computed with respect to the subject fiscal year by the aggregate
annual salaries of the members as of June thirtieth of the subject
fiscal year and (2) by adding to the product of such multiplication,
interest on such product at the rate of five and one-half per centum per
annum for a period of six months.
(ii) "Unfunded accrued liability contribution for balance sheet
liability purposes". (A) With respect to the city's nineteen hundred
seventy-four--nineteen hundred seventy-five fiscal year, such term shall
mean a hypothetical amount which, if paid to the contingent reserve fund
in forty equal annual installments, beginning with payment of a first
installment in the city's nineteen hundred seventy-four--nineteen
hundred seventy-five fiscal year, would be the actuarial equivalent, on
the basis of interest at the rate of five and one-half per centum per
annum, of the remainder computed in the manner prescribed by sub-items
(B) and (C) of this item (ii).
(B) Upon the basis of the actuarial tables in effect as of July first,
nineteen hundred seventy-seven for valuation purposes and interest at
the rate of five and one-half per centum per annum, there shall be
computed, as of June thirtieth, nineteen hundred seventy-four, the
amount of the total liability for all benefits provided by this title,
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.
(C) From such total liability computed pursuant to sub-item (B) of
this item (ii) there shall be subtracted the sum of:
(1) the present value, as of June thirtieth, nineteen hundred
seventy-four, of all future normal costs of the 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 then required
future payments, pursuant to section 13-704 of this title (as then in
effect), of installments of losses in excess of installments of gains on
dispositions of securities within the meaning of such section; and
(3) the sum obtained by adding together the balance sheet liability as
of such June thirtieth, (as such liability is determined pursuant to the
provisions of subparagraph (b) of this paragraph four) and the total
funds on hand as of such June thirtieth, excluding the amount in the
annuity savings fund, but including the amount of any unpaid moneys
appropriated pursuant to section 13-133 of this chapter.
(D) With respect to each of the city's fiscal years occurring during
the period from July first, nineteen hundred seventy-five to June
thirtieth, nineteen hundred eighty, such term shall mean a hypothetical
amount which, if paid to the contingent reserve fund in forty equal
annual installments, beginning with payment of a first installment in
the city's nineteen hundred seventy-five--nineteen hundred seventy-six
fiscal year, would be the actuarial equivalent, on the basis of interest
at the rate of five and one-half per centum per annum, of the remainder
computed pursuant to sub-items (E) and (F) of this item (ii).
(E) Upon the basis of the actuarial tables in effect as of July first,
nineteen hundred seventy-seven for valuation purposes and interest at
the rate of five and one-half per centum per annum, there shall be
computed, as of June thirtieth, nineteen hundred seventy-five, the
amount of the total liability for all benefits provided by this chapter,
in article eleven of the retirement and social security law and in any
other law prescribing benefits payable by the retirement system on
account of all members and beneficiaries, excluding the liability on
account of future increased-take-home-pay contributions and the
liability for benefits attributable to the annuity savings fund.
(F) From such total liability computed pursuant to sub-item (E) of
this item (ii), there shall be subtracted the sum of:
(1) the present value, as of June thirtieth, nineteen hundred
seventy-five, of all future normal costs of the 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 then required
future payments, pursuant to section 13-704 of this title, (as then in
effect) of installments of losses in excess of installments of gains on
dispositions of securities within the meaning of such section; and
(3) the sum obtained by adding together the balance sheet liability as
of such June thirtieth (as such liability is determined pursuant to the
provisions of subparagraphs (c) to (i), inclusive, of this paragraph
four) and the total funds on hand as of such June thirtieth, excluding
the amount in the annuity savings fund, but including the amount of any
unpaid moneys appropriated pursuant to section 13-133 of this chapter.
(iii) "Annual contribution, for balance sheet liability purposes, on
account of amortization of losses on dispositions of certain securities
within the meaning of section 13-704 of this title." A hypothetical
annual payment to the contingent reserve fund in each of the city's
fiscal years occurring during the period beginning on July first,
nineteen hundred seventy-four and ending on June thirtieth, nineteen
hundred eighty, of the amount of the excess of installments
(hypothetically payable in such year) of losses on prior dispositions of
securities within the meaning of section 13-704 of this title (relating
to graduated crediting of gains and amortization of losses on
dispositions of certain securities) over installments (hypothetically
creditable in such year) of gains on such prior dispositions, which
annual amount shall be determined in the manner provided in subdivision
h of section 13-704 of this title.
(iv) "Annual contribution, for balance sheet liability purposes, on
account of reserves-for-increased-take-home-pay." A hypothetical annual
payment to the contingent reserve fund in each of the city's fiscal
years occurring during the period from July first, nineteen hundred
seventy-four to June thirtieth, nineteen hundred eighty, of the amount
required to fulfill the public employer obligation, which accrued in
such year, make contributions on account of increased-take-home-pay.
(v) "Annual military law contribution for balance sheet liability
purposes." A hypothetical annual payment to the contingent reserve fund
in each of the city's fiscal years occurring during the period beginning
on July first, nineteen hundred seventy-four and ending on June
thirtieth, nineteen hundred eighty, of the amount required to fulfill
the public employer obligations, which accrued in such year under the
provisions of subdivision twenty of section two hundred forty-three of
the military law, to pay in behalf of members qualifying for such
benefit member contributions with respect to certain periods of military
service of such members.
(vi) "Deficiency contribution". The total annual amount which, under
the provisions of paragraphs one and three of this subdivision and
subdivision e of this section (as added by chapter eight hundred
twenty-one of the laws of nineteen hundred sixty-eight and amended by
chapter eight hundred seventeen of the laws of nineteen hundred
sixty-nine), as such provisions were in effect during the period from
July first, nineteen hundred seventy-two to June thirtieth, nineteen
hundred seventy-seven, the city and other public employers required to
contribute as provided for in section 13-130 of this chapter were
required to pay to the contingent reserve fund in each of the city's
nineteen hundred seventy-four--nineteen hundred seventy-five, nineteen
hundred seventy-five--nineteen hundred seventy-six and nineteen hundred
seventy-six--nineteen hundred seventy-seven fiscal years.
(vii) "Contribution on account of amortization, pursuant to section
13-704 of this title, of losses on dispositions of certain securities".
The total annual amount by which the sum of the installments of losses,
payable pursuant to section 13-704 of this title (as in effect prior to
July first, nineteen hundred eighty) in each of the city's fiscal years
occurring during the period from July first, nineteen hundred
seventy-four to June thirtieth, nineteen hundred eighty in relation to
dispositions of securities within the meaning of such section, exceeded
the sum of the installments of gains creditable in the same fiscal year
in relation to the same dispositions of securities.
(b) The balance sheet liability as of June thirtieth, nineteen hundred
seventy-four shall be the sum of six hundred seventy-two million, one
hundred eighty-seven thousand, nine hundred seventeen dollars
($672,187,917), consisting of the sum of:
(i) The discounted value, as of June thirtieth, nineteen hundred
seventy-four of the sum of two hundred seventy-seven million, six
hundred eighty-five thousand, nine hundred forty-two dollars
($277,685,942), 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 city (and other public employers
required to contribute as provided for in section 13-130 of this
chapter) in fulfillment of their 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 two hundred seventy million, three
hundred fifty thousand, eight hundred sixty-eight dollars
($270,350,868); and
(ii) the discounted value, as of June thirtieth, nineteen hundred
seventy-four, of the sum of four hundred thirty-five million, four
hundred forty thousand, four hundred twenty-two dollars ($435,440,422),
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 city (and other public employers required to
contribute as provided for in section 13-130 of this chapter) in
fulfillment of their 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 from January
first, nineteen hundred seventy-six retroactively to June thirtieth,
nineteen hundred seventy-four, and such discounted value being the sum
of four hundred one million, eight hundred thirty-seven thousand,
forty-nine dollars ($401,837,049).
(c) The balance sheet liability, as of each June thirtieth succeeding
June thirtieth, nineteen hundred seventy-four to and including June
thirtieth, nineteen hundred eighty, shall be determined as provided for
in subparagraphs (d) to (j), inclusive, of this paragraph four.
(d) To the amount of the balance sheet liability as of June thirtieth
next preceding the June thirtieth (which last-mentioned June thirtieth
is hereinafter referred to as the "subject June thirtieth") as of which
the balance sheet liability is being determined as provided for in
subparagraph (c) of this paragraph four, there shall be added one year's
interest on such amount at the rate of five and one-half per centum per
annum.
(e) With respect to the city's fiscal year ending on the subject June
thirtieth (hereinafter referred to as the "subject fiscal year") there
shall be added together the contribution components hereinafter
specified in this subparagraph (e), which components, for the purposes
of this paragraph four, are hypothetically deemed to have accrued in the
subject fiscal year and to have been payable therein, as follows:
(i) the amount of the normal contribution for balance sheet liability
purposes (as defined in item (i) of subparagraph (a) of this paragraph
four); and
(ii) the amount of the applicable installment of the unfunded accrued
liability contribution for balance sheet liability purposes (as defined
in item (ii) of subparagraph (a) of this paragraph); and
(iii) the amount of the annual contribution, for balance sheet
liability purposes, on account of amortization of losses on dispositions
of certain securities within the meaning of section 13-704 of this title
(as defined in item (iii) of subparagraph (a) of this paragraph); and
(iv) the amount of the annual contribution, for balance sheet
liability purposes, on account of reserves-for-increased-take-home-pay
(as defined in item (iv) of subparagraph (a) of this paragraph); and
(v) the amount of the annual military law contribution for balance
sheet liability purposes (as defined in item (v) of subparagraph (a) of
this paragraph).
(f) To the amount resulting from the addition prescribed by
subparagraph (e) of this paragraph four, there shall be added interest
thereon at the rate of five and one-half per centum per annum from
January first of the subject fiscal year to June thirtieth of such
fiscal year.
(g) The amount computed pursuant to subparagraph (d) of this paragraph
four in relation to the balance sheet liability as of June thirtieth
next preceding the subject June thirtieth (together with one year's
interest on such balance sheet liability) shall be added to the amount
computed pursuant to subparagraph (f) of this paragraph in relation to
the subject fiscal year.
(h) From the amount computed pursuant to subparagraph (g) of this
paragraph, there shall be subtracted the sum of:
(i) the total amount of the sums paid to the contingent reserve fund
during the subject fiscal year by the city (and other obligors required
to make public employer contributions to such fund) on account of their
obligations which accrued during the city's second fiscal year preceding
the subject fiscal year, to provide:
(A) the normal contribution payable in the subject fiscal year under
the provisions of paragraphs one and two of this subdivision b as then
in effect, and
(B) the installment of the deficiency contribution (as defined in item
(vi) of subparagraph (a) of this paragraph four) or the installment of
the original unfunded accrued liability contribution (as defined in
subparagraph (a) of paragraph three of this subdivision b), as the case
may be, payable in the subject fiscal year; and
(C) the amount of the contribution on account of amortization,
pursuant to section 13-704 of this title, of losses on dispositions of
certain securities (as defined in item (vii) of subparagraph (a) of this
paragraph four) payable in the subject fiscal year; and
(D) the amount payable in the subject fiscal year on account of
reserves-for-increased-take-home-pay; and
(E) the amount payable in the subject fiscal year in behalf of members
pursuant to subdivision twenty of section two hundred forty-three of the
military law; plus
(ii) interest on such total amount referred to in item (i) of this
subparagraph (h) at the rate of five and one-half per centum per annum
from January first of the subject fiscal year to June thirtieth thereof.
(i) The remainder resulting from the subtraction prescribed by
subparagraph (h) of this paragraph four shall be the balance sheet
liability as of June thirtieth of the subject fiscal year.
(j) The balance sheet liability as of June thirtieth, nineteen hundred
eighty shall be the amount resulting from the successive computations of
the balance sheet liability as of each June thirtieth succeeding June
thirtieth, nineteen hundred seventy-four up to and including June
thirtieth, nineteen hundred eighty, as prescribed by subparagraphs (c)
to (i), inclusive, of this paragraph four.
(k) (i) 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.
(ii) 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 item
(i) of this subparagraph (k), which installments are hypothetically
allocated by such item (i) to designated city fiscal years succeeding
June thirtieth, nineteen hundred eighty-two.
(iii) 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 item (ii) of this subparagraph (k), which installments are
hypothetically allocated by such item (ii) to designated city fiscal
years succeeding June thirtieth, nineteen hundred eighty-eight.
(5) Contributions to the contingent reserve fund payable in fiscal
years of the city beginning on or after July first, nineteen hundred
ninety by the city and other obligors required to make such
contributions shall be governed by the provisions of this section, as
modified and supplemented by section 13-638.2 of this title, and such
other laws as may be applicable.
c. Whenever the board, upon recommendation by the actuary, shall
determine that it is necessary to increase the reserves held in the
annuity reserve fund, the pension reserve fund or the pension fund, the
board may direct that the amount so needed shall be transferred thereto
from the contingent reserve fund.
d. (1) The city shall pay to the contingent reserve fund the accrued
additional employer cost of providing the rights, benefits and
privileges conferred by section 13-159 of this chapter upon members of
the uniformed force of the department of sanitation who elect such
rights, benefits and privileges pursuant to subdivision b of such
section.
(2) Such additional cost shall consist of the amount obtained (a) by
computing, as of July second, nineteen hundred sixty-seven, the total of
all sums which would have been due, up to and including such date, to
the contingent reserve fund with respect to all such members who elect
the benefits of such section, if such election by each such member had
been authorized by law as provided in subdivision b of such section on
the date of his or her appointment as a member of the uniformed force of
the department of sanitation, and such election had been made and was in
effect on the date on which such member began contributing to the
retirement system as a member of such force, and (b) by subtracting from
such total mentioned in subparagraph a of this paragraph two, the
aggregate of all amounts actually paid in and due to the contingent
reserve fund, up to and including July second, nineteen hundred
sixty-seven, with respect to all such members making such election.
(3) The sums required to be paid by the city to the contingent reserve
fund under the provisions of paragraphs one and two of this subdivision
shall be computed by the actuary and shall be paid to such fund by the
city in equal annual installments over a period of thirty-five years,
beginning with the fiscal year of the city commencing on July first,
nineteen hundred sixty-nine.
e. Upon the retirement of such a member, or upon his or her death in
the performance of duty, an amount equal to the pension reserve for the
pension payable by the city on account of his or her city-service as a
member, together with the reserve-for-increased-take-home-pay, shall be
transferred from such fund to the pension reserve fund. Contributions
shall be paid into the contingent reserve fund, in the manner and to the
extent specified by section 13-152 of this chapter, to provide
reserves-for-increased-take-home-pay.
f. (1) The city shall pay to the contingent reserve fund the accrued
additional employer cost of providing the rights, benefits and
privileges conferred by section 13-159 of this chapter upon sanitation
workers who elect such rights, benefits and privileges pursuant to
subdivision b of such section.
(2) Such additional cost shall consist of the amount obtained (a) by
computing, as of July second, nineteen hundred sixty-seven, the total of
all sums which would have been due, up to and including such date, to
the contingent reserve fund with respect to all such members who elect
the benefits of such section, if such election by each such member had
been authorized by law as provided in subdivision b of such section on
the date of his or her appointment as a sanitation worker, and such
election had been made and was in effect on the date on which such
member began contributing to the retirement system as a sanitation
worker, and (b) by subtracting from such total mentioned in subparagraph
a of this paragraph two, the aggregate of all amounts actually paid in
and due to the contingent reserve fund, up to and including July second,
nineteen hundred sixty-seven, with respect to all such members making
such election.
(3) The sums required to be paid by the city to the contingent reserve
fund under the provisions of paragraphs one and two of this subdivision
shall be computed by the actuary and shall be paid to such fund by the
city in equal annual installments over a period of thirty-five years,
beginning with the fiscal year of the city commencing on July first,
nineteen hundred sixty-nine.
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