There is a newer version of the New York Consolidated Laws
2006 New York Code - Allowance Of Interest.
§ 13-135 Allowance of interest. a. Such board shall annually allow
regular interest on the mean amount for the preceding year in each of
the funds provided for in accordance with the provisions of this
chapter. The amount so allowed shall be due and payable to such funds,
and shall be annually credited thereto by such board.
b. The investment earnings of the retirement system shall be
determined for the calendar year nineteen hundred sixty-four. To the
extent that such earnings are in excess of the amount allowed as regular
interest for calendar year nineteen hundred sixty-four, the board shall
declare a rate of special interest, expressed to the lower one-tenth of
one per centum, but not to exceed one per centum, to be determined by
the amount by which the investment earnings exceed the amount required
for the allowance of regular interest divided by the aggregate mean
amount for the calendar year nineteen hundred sixty-four in the annuity
savings funds of members who are allowed regular interest at three per
centum per annum for calendar year nineteen hundred sixty-four. Special
interest, as determined by multiplying said special interest rate by the
mean amount for the calendar year nineteen hundred sixty-four in the
individual annuity savings funds of persons who are allowed regular
interest at three per centum per annum for calendar year nineteen
hundred sixty-four, shall be credited as of December thirty-first,
nineteen hundred sixty-four to the individual annuity savings funds of
persons who are members, with a balance, after adjustment, as of June
thirtieth, nineteen hundred sixty-five and who are allowed regular
interest at the rate of three per centum per annum for calendar year
nineteen hundred sixty-four. For members who are allowed regular
interest at three per centum for calendar year nineteen hundred
sixty-four and who do not have a balance, after adjustment, in their
annuity savings funds as of June thirtieth, nineteen hundred sixty-five,
a payment shall be made equal to the amount of special interest which
would have been credited as of December thirty-first, nineteen hundred
sixty-four had they had a balance in their annuity savings funds as of
June thirtieth, nineteen hundred sixty-five, provided that the sum of
said special interest and any additional interest to be paid pursuant to
paragraph c hereof is ten dollars or more. Special interest shall not be
considered in determining rates of contribution of members.
c. If the full one per centum of special interest has been allowed,
then to the extent that the amount of said earnings exceeds the amount
allowed as regular interest and the amount allowed or paid as special
interest, the board shall declare a rate of additional interest,
expressed to the lower one-tenth of one per centum, but not to exceed
one per centum, to be determined by the amount by which the investment
earnings exceed the sum of the allowance of regular interest and the
allowance and payment of special interest divided by the aggregate mean
amount, for calendar year nineteen hundred sixty-four which would be the
reserve-for-increased-take-home-pay of all members to whom special
interest credited or paid pursuant to paragraph b hereof. In determining
the reserve-for-increased-take-home-pay of any member to whom special
interest is credited pursuant to paragraph b hereof additional interest,
as determined by multiplying said additional interest rate by the mean
amount for calendar year nineteen hundred sixty-four which would be said
member's reserve-for-increased-take-home-pay shall be included. However,
for members who are allowed regular interest at three per centum per
annum for calendar year nineteen hundred sixty-four and who retire or
die prior to June thirtieth, nineteen hundred sixty-five, the amount of
additional interest for calendar year nineteen hundred sixty-four shall
not be included in the retirement allowance, but shall be paid in a
single payment provided that the sum of said additional interest and any
special interest to be paid pursuant to paragraph b hereof is ten
dollars or more. Additional interest shall not be considered in
determining rates of contribution of members.
d. The investment earnings of the retirement system shall be
determined for the calendar year nineteen hundred sixty-five. To the
extent that such earnings are in excess of the amount allowed as regular
interest for calendar year nineteen hundred sixty-five, the board shall
declare a rate of special interest, expressed to the lower one-tenth of
one per centum, but not to exceed one per centum, to be determined by
the amount by which the investment earnings exceed the amount required
for the allowance of regular interest divided by the aggregate mean
amount for the calendar year nineteen hundred sixty-five in the annuity
savings funds of members who are allowed regular interest at three per
centum per annum for calendar year nineteen hundred sixty-five. Special
interest, as determined by multiplying said special interest rate by the
mean amount for the calendar year nineteen hundred sixty-five in the
individual annuity savings funds of persons who are allowed regular
interest at three per centum per annum for calendar year nineteen
hundred sixty-five, shall be credited as of December thirty-first,
nineteen hundred sixty-five to the individual annuity savings funds of
persons who are members, with a balance, after adjustment, as of June
thirtieth, nineteen hundred sixty-six and who are allowed regular
interest at the rate of three per centum per annum for calendar year
nineteen hundred sixty-five. For members who are allowed regular
interest at three per centum for calendar year nineteen hundred
sixty-five and who do not have a balance, after adjustment, in their
annuity savings funds as of June thirtieth, nineteen hundred sixty-six,
a payment shall be made equal to the amount of special interest which
would have been credited as of December thirty-first, nineteen hundred
sixty-five had they had a balance in their annuity savings funds as of
June thirtieth, nineteen hundred sixty-six, provided that the sum of
said special interest and any additional interest to be paid pursuant to
paragraph e hereof is ten dollars or more. Special interest shall not be
considered in determining rates of contribution of members.
e. If the full one per centum of special interest has been allowed,
then to the extent that the amount of said earnings exceeds the amount
allowed as regular interest and the amount allowed or paid as special
interest, the board shall declare a rate of additional interest,
expressed to the lower one-tenth of one per centum, but not to exceed
one per centum, to be determined by the amount by which the investment
earnings exceed the sum of the allowance of regular interest and the
allowance and payment of special interest divided by the aggregate mean
amount for calendar year nineteen hundred sixty-five which would be the
reserve-for-increased-take-home-pay of all members to whom special
interest is credited or paid pursuant to paragraph d hereof. In
determining the reserve-for-increased-take-home-pay of any member to
whom special interest is credited pursuant to paragraph d hereof,
additional interest as determined by multiplying said additional
interest rate by the mean amount for calendar year nineteen hundred
sixty-five which would be said member's
reserve-for-increased-take-home-pay shall be included. However, for
members who are allowed regular interest at three per centum per annum
for calendar year nineteen hundred sixty-five and who retire or die
prior to June thirtieth, nineteen hundred sixty-six, the amount of
additional interest for calendar year nineteen hundred sixty-five shall
not be included in the retirement allowance, but shall be paid in a
single payment provided that the sum of said additional interest and any
special interest to be paid pursuant to paragraph d hereof is ten
dollars or more. Additional interest shall not be considered in
determining rates of contribution of members.
f. The investment earnings of the retirement system shall be
determined for the calendar year nineteen hundred sixty-six. To the
extent that such earnings are in excess of the amount allowed as regular
interest for calendar year nineteen hundred sixty-six, the board shall
declare a rate of special interest, expressed to the lower one-tenth of
one per centum, but not to exceed one per centum, to be determined by
the amount by which the investment earnings exceed the amount required
for the allowance of regular interest divided by the aggregate mean
amount for the calendar year nineteen hundred sixty-six in the annuity
savings funds of members who are allowed regular interest at three per
centum per annum for calendar year nineteen hundred sixty-six. Special
interest, as determined by multiplying said special interest rate by the
mean amount for the calendar year nineteen hundred sixty-six in the
individual annuity savings funds of persons who are allowed regular
interest at three per centum per annum for calendar year nineteen
hundred sixty-six, shall be credited as of December thirty-first,
nineteen hundred sixty-six to the individual annuity savings funds of
persons who are members, with a balance, after adjustment, as of June
thirtieth, nineteen hundred sixty-seven and who are allowed regular
interest at the rate of three per centum per annum for calendar year
nineteen hundred sixty-six. For members who are allowed regular interest
at three per centum for calendar year nineteen hundred sixty-six and who
do not have a balance, after adjustment, in their annuity savings funds
as of June thirtieth, nineteen hundred sixty-seven, a payment shall be
made equal to the amount of special interest which would have been
credited as of December thirty-first, nineteen hundred sixty-six had
they had a balance in their annuity savings funds as of June thirtieth,
nineteen hundred sixty-seven, provided that the sum of said special
interest and any additional interest to be paid pursuant to paragraph g
hereof is ten dollars or more. Special interest shall not be considered
in determining rates of contribution of members.
g. If the full one per centum of special interest has been allowed,
then to the extent that the amount of said earnings exceeds the amount
allowed as regular interest and the amount allowed or paid as special
interest, the board shall declare a rate of additional interest,
expressed to the lower one-tenth of one per centum, but not to exceed
one per centum, to be determined by the amount by which the investment
earnings exceed the sum of the allowance of regular interest and the
allowance and payment of special interest divided by the aggregate mean
amount for calendar year nineteen hundred sixty-six which would be the
reserve-for-increased-take-home-pay of all members to whom special
interest is credited or paid pursuant to paragraph f hereof. In
determining the reserve-for-increased-take-home-pay of any member to
whom special interest is credited pursuant to paragraph f hereof,
additional interest as determined by multiplying said additional
interest rate by the mean amount for calendar year nineteen hundred
sixty-six which would be said member's
reserve-for-increased-take-home-pay shall be included. However, for
members who are allowed regular interest at three per centum per annum
for calendar year nineteen hundred sixty-six and who retire or die prior
to June thirtieth, nineteen hundred sixty-seven, the amount of
additional interest for calendar year nineteen hundred sixty-six shall
not be included in the retirement allowance, but shall be paid in a
single payment provided that the sum of said additional interest and any
special interest to be paid pursuant to paragraph f hereof is ten
dollars or more. Additional interest shall not be considered in
determining rates of contribution of members.
h. (1) Subject to the provisions of subdivision j of this section,
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.
(2) Subject to the provisions of subdivision j of this section, 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) * (a) Subject to the provisions of subdivision j of this section,
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.
* NB Amended Ch. 910/85 § 5, language juxtaposed per Ch. 907/85 § 14
* (b) Subject to the provisions of subdivision j of this section,
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.
* NB Added Ch. 910/85 § 5, language juxtaposed per Ch. 907/85 § 14
(c) Subject to the provisions of subdivision j of this section, 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.
(d) Subject to the provisions of subdivision j of this section, 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 paragraphs one, two and
three of this subdivision 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 subdivision h 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.
* NB Amended Ch. 910/85 § 5, language juxtaposed per Ch. 907/85 § 14
i. (1) Subject to the provisions of subdivision j of this section, 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 subdivision j of this section, 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) * (a) Subject to the provisions of subdivision j of this section,
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.
* NB Amended Ch. 910/85 § 6, language juxtaposed per Ch. 907/85 § 14
* (b) Subject to the provisions of subdivision j of this section, 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.
* NB Added Ch. 910/85 § 6, language juxtaposed per Ch. 907/85 § 14
(c) Subject to the provisions of subdivision j of this section, 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.
(d) Subject to the provisions of subdivision j of this section, 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 subdivision i
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.
* NB Amended Ch. 910/85 § 6, language juxtaposed per Ch. 907/85 § 14
j. (1) The provisions of:
(a) paragraph one of subdivision h of this section, to the extent that
they grant special interest with respect to transit twenty-year plan
members (as defined in subdivision sixty-one of section 13-101 of this
chapter) for the period beginning on July first, nineteen hundred
seventy-seven and ending on June thirtieth, nineteen hundred eighty; and
(b) paragraph two of such subdivision h, to the extent that such
paragraph grants special interest for any period prior to July
thirty-first, nineteen hundred eighty-one; and
(c) paragraphs one and two of subdivision i of this section, to the
extent that such paragraphs grant additional interest for any period
prior to such July thirty-first; 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 13-173 of this chapter.
(2) (a) The provisions of subparagraph (a) of paragraph three of
subdivision h of this section, to the extent that such subparagraph
grants special interest for any period prior to December sixteenth,
nineteen hundred eighty-two, and the provisions of subparagraph (a) of
paragraph three of subdivision i of this section, to the extent that
either such subparagraph 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 13-173 of this chapter.
(b) The provisions of subparagraph (d) of paragraph three of
subdivision h of this section, to the extent that such subparagraph
grants special interest for any period prior to the date of enactment of
this subparagraph (b) (as such date is certified pursuant to section
forty-one of the legislative law), and the provisions of subparagraph
(d) of paragraph three of subdivision i of this section, to the extent
that such subparagraph grants additional interest for any period prior
to such date of enactment, shall not apply to any person who was not a
member on such date of enactment and shall not apply to any person to
whom, on such date of enactment, a deferred retirement allowance or any
part of such a retirement allowance was payable pursuant to the
provisions of section 13-173 of this chapter.
(3) Nothing contained in subdivisions h and i of this section 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.
k. (1) Subject to the provisions of paragraph four of this subdivision
k, 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 provided for in accordance with the provisions of this chapter,
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.
(2) Subject to the provisions of paragraph four of this subdivision k,
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 provided for in accordance with the provisions of this chapter,
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.
(3) * (a) Subject to the provisions of paragraph (4) of this
subdivision k, 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 this chapter, 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.
* NB Amended Ch. 910/85 § 7, language juxtaposed per Ch. 907/85 § 14
* (b) Subject to the provisions of paragraph (4) of this subdivision
k, 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 this
chapter, 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.
* NB Added Ch. 910/85 § 7, language juxtaposed per Ch. 907/85 § 14
(c) Subject to the provisions of paragraph (4) of this subdivision k,
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 this
chapter, 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.
(d) Subject to the provisions of paragraph (4) of this subdivision k,
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 this chapter,
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.
(4) The provisions of paragraphs one, two and three of this
subdivision k shall not apply to or affect (a) the allowance of interest
on or the crediting of interest to accounts of members or discontinued
members in the annuity savings fund or (b) the allowance of interest on
or the crediting of interest to reserves-for-increased-take-home-pay of
members or discontinued members or (c) the determination of the amount
of any benefit payable to any member or beneficiary.
* l. On or after May first, nineteen hundred eighty-nine and not later
than October thirty-first of such year, the board shall submit to the
public officers and permanent commission referred to in paragraph (e) of
subdivision twelve of section 13-101 of this chapter the recommendations
of such board:
(1) as to whether legislation should be enacted providing for the
crediting of special interest to members after June thirtieth, nineteen
hundred ninety and if so, the recommended rate thereof and duration of
such crediting; and
(2) as to whether legislation should be enacted providing that in the
determination of reserves-for-increased-take-home-pay of members
entitled to such a reserve, additional interest shall be included for
any period after June thirtieth, nineteen hundred ninety, and if so, the
recommended rate thereof and the period as to which such interest should
be included; and
(3) as to whether legislation should be enacted providing for the
crediting of supplementary interest after June thirtieth, nineteen
hundred ninety to such funds to which subdivision k of this section is
applicable and if so, the recommended rate thereof and duration of such
crediting.
* NB Amended Ch. 911/85 § 10, language juxtaposed per Ch. 907/85 § 14
m. 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 this title.
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