There is a newer version of the New York Consolidated Laws
2006 New York Code - Correction Officers\' Variable Supplements Fund.
§ 13-194 Correction officers' variable supplements fund. 1. As used in
this section, the following words and phrases shall have the following
meanings, unless a different meaning is plainly required by the context:
(a) "Association". The New York city correction officers' benevolent
association.
(b) "Variable supplements board". The board of trustees provided for
in subdivision three of this section.
(c) "Beneficiary". Any person who receives a retirement allowance by
reason of having retired, on or after July first, nineteen hundred
ninety-nine for service as a correction officer with immediate
payability of a retirement allowance, and with credit for (1) twenty or
more years of service, if such correction officer retires as a
participant in and pursuant to the provisions of a twenty-year uniformed
correction plan (as defined in paragraph (e) of this subdivision), or
(2) twenty-five or more years of service, if such correction officer
retires as a participant in and pursuant to the provisions of a
retirement plan other than a twenty-year uniformed correction plan,
provided, however, that nothing contained in this paragraph shall be
construed as modifying any eligibility requirement for service
retirement in any service retirement plan.
(d) "Variable supplement". Any sum authorized to be paid to a
beneficiary pursuant to the provisions of this section.
(e) "Twenty-year uniformed correction plan". A service retirement plan
in which any correction officer who has twenty or more years of service
is eligible to retire for service at any age with immediate payability
of a retirement allowance.
(f) "Correction officer". A member of the uniformed force of the New
York city department of correction who is a member of the retirement
system (as defined in subdivision one of section 13-101 of this
chapter).
(g) "Calendar year not covered by a payment guarantee". Any calendar
year beginning on or after January first, two thousand, which year
precedes the first calendar year in which a guarantee of payment of
variable supplements takes effect pursuant to the provisions of
paragraph (f) or paragraph (g) of subdivision three of this section.
(h) "Calendar year covered by a payment guarantee". The calendar year
in which a guarantee of payment of variable supplements first takes
effect pursuant to paragraph (f) or paragraph (g) of subdivision three
of this section, and any succeeding calendar year.
2. (a) There is hereby established a fund, to be known as the
correction officers' variable supplements fund. Such fund shall consist
of such monies as may be paid thereto from the retirement system
pursuant to the provisions of sections 13-195 and 13-195.1 of this
chapter and all other monies received by such fund from any other source
pursuant to law.
(b) It is hereby declared by the legislature that the correction
officers' variable supplements fund shall not be, and shall not be
construed to constitute, a pension or retirement system or fund, and
that it shall function as a means whereby payments, not constituting a
pension or retirement allowance, may be made in accordance with the
provisions of this section, to eligible beneficiaries as a supplement to
benefits received by them pursuant to this title. The legislature hereby
reserves to the state and itself the right and power to amend, modify or
repeal any or all of the provisions of this section.
3. (a) The correction officers' variable supplements fund shall be
administered by a board of trustees which shall, subject to applicable
provisions of law, from time to time establish rules and regulations for
the administration and transaction of the business of such fund and for
the control and disposition thereof.
(b) Such variable supplements board shall consist of:
(1) The representative of the mayor who is a member of the board of
trustees of the retirement system, who shall be entitled to cast one
vote. The mayor may, by instrument in writing filed in his office and
with the variable supplements board, designate one or more members of
his office to act in the place of such representative at meetings of the
board, in the event of such representative's absence therefrom.
(2) The comptroller of the city, who shall be entitled to cast one
vote. Any deputy comptroller authorized pursuant to subdivision b of
section ninety-four of the New York city charter, to act in the place of
the comptroller as a member of the board of trustees of the retirement
system, may be authorized by the comptroller, in accordance with the
provisions of such subdivision, to act in the place of the comptroller
as a member of the variable supplements board.
(2-a) The commissioner of finance, who shall be entitled to cast one
vote. Such commissioner may, by instrument in writing filed in his or
her office and with the variable supplements board, designate one or
more members of his or her office to act in his or her place at meetings
of such board, in the event of such commissioner's absence therefrom.
(3) One member of the association designated by it, who shall be
entitled to cast one and one-half votes. The member so designated shall
be an officer of the association. Such designee may at any time, by
written authorization filed with the variable supplements board,
authorize any other officer of the association to act in his place as a
member of the board in the event of such designee's absence from any
meeting thereof; provided that the bylaws or constitution of the
association provide for the designation of a representative for such
purpose.
(4) One representative of the correction captains, designated by the
recognized employee organization representing such correction captains
for collective bargaining purposes. Such representative shall be
entitled to cast one-half vote. Such representative may at any time, by
written authorization filed with the variable supplements board,
authorize any other officer of such organization to act in his place as
a member of the board in the event of such designee's absence from any
meeting thereof.
(c) Every act of the variable supplements board shall be by resolution
which shall be adopted only by a vote of at least three-fifths of the
whole number of votes authorized to be cast by all of the members of
such board.
(d) The actuary appointed by the board of the retirement system shall
be the technical advisor of the variable supplements board.
(d-1) The retirement system shall assign to the variable supplements
board such number of clerical and other assistants as may be necessary
for the performance of its functions.
(e)(1) As of October thirty-first, two thousand and as of October
thirty-first of each succeeding calendar year not covered by a payment
guarantee (as defined in paragraph (g) of subdivision one of this
section), the actuary referred to in paragraph (d) of this subdivision
shall value the assets of the variable supplements fund, subject to the
provisions of paragraph (i) of this subdivision, and make an estimate of
the total amount of variable supplements which would be payable,
pursuant to subdivision four of this section and subparagraph two of
this paragraph, to beneficiaries for such calendar year for which such
valuation and estimate are made, if such actuary determines that the
value of such assets, as of October thirty-first of such calendar year,
is equal to or greater than such total amount of variable supplements.
(2) If such actuary determines that the value of such assets, as of
October thirty-first of any such calendar year for which a valuation and
estimate are required by subparagraph one of this paragraph, is equal to
or greater than such estimated total amount of variable supplements
which would be payable for such calendar year, then the variable
supplements which, upon a favorable determination of the actuary under
this paragraph, are declared by subdivision four of this section to be
payable to beneficiaries for such calendar year or a part thereof shall
be paid by the variable supplements fund, in the applicable amounts
prescribed by such subdivision four, to beneficiaries on or about
December fifteenth of such calendar year.
(3) If such actuary determines that the value of such assets, as of
October thirty-first of any such calendar year for which a valuation and
estimate are required by subparagraph one of this paragraph, is less
than such estimated total amount of variable supplements which would be
payable for such calendar year pursuant to a favorable determination of
the actuary, then no beneficiary shall be entitled to receive any
variable supplement for such calendar year or any part thereof and no
variable supplement shall be paid to any beneficiary for such calendar
year or any part thereof.
(4) In any case where, pursuant to the provisions of subparagraphs one
and three of this paragraph, no variable supplements are payable for a
calendar year or part thereof to any beneficiary, no variable
supplements for such calendar year or part thereof shall at any time
thereafter be payable and no beneficiary shall at any time thereafter be
entitled to receive a variable supplement for such calendar year or part
thereof.
(f)(1) As of October thirty-first, two thousand and as of October
thirty-first of each succeeding calendar year up to and including the
earlier of (i) the first calendar year covered by a payment guarantee
(as defined in paragraph (h) of subdivision one of this section) or (ii)
the calendar year two thousand eighteen, the actuary referred to in
paragraph (d) of this subdivision shall value the assets of the variable
supplements fund, subject to the provisions of paragraph (i) of this
subdivision, and shall estimate the present value, as of such October
thirty-first, of all variable supplements which the variable supplements
fund, under the provisions of subdivision four of this section, would be
obligated to pay to beneficiaries with the respect to the calendar year
in which such October thirty-first occurs and all succeeding calendar
years up to and including the calendar year two thousand eighteen, if it
were assumed that such variable supplements were payable with respect to
all such calendar years occurring during the period beginning with the
calendar year in which such October thirty-first occurs and extending to
and including the calendar year two thousand eighteen.
(2) If the value of such assets as of any such October thirty-first is
equal to or greater than such estimated present value of variable
supplements as of such October thirty-first:
(i) variable supplements, as provided for in subdivision four of this
section, shall be paid to beneficiaries for the calendar year in which
such October thirty-first occurs and for each subsequent calendar year;
and
(ii) paragraph (e) of this subdivision shall be inapplicable with
respect to entitlement of beneficiaries to variable supplements for the
calendar years referred to in item (i) of this subparagraph; and
(iii) payment of all variable supplements payable for the calendar
years referred to in item (i) of this subparagraph is hereby made an
obligation of the city and the city hereby guarantees that such variable
supplements shall be paid to all beneficiaries for such calendar years.
(g) If a guarantee of payment of variable supplements, pursuant to
paragraph (f) of this subdivision does not take effect prior to the
calendar year two thousand nineteen, variable supplements, as provided
for in subdivision four of this section, shall be paid pursuant to such
subdivision four for the calendar year two thousand nineteen and each
subsequent calendar year. Such payment is hereby made an obligation of
the city and the city hereby guarantees that such variable supplements
shall be paid to all beneficiaries for such calendar years.
(h)(1) Subject to the provisions of paragraph (i) of this subdivision,
as of June thirtieth next succeeding the first calendar year covered by
a payment guarantee (as defined in paragraph (h) of subdivision one of
this section) and as of each succeeding June thirtieth, the actuary
referred to in paragraph (d) of this subdivision shall make a valuation
of the assets and liabilities of the variable supplements fund in
accordance with the requirements of the succeeding subparagraphs of this
paragraph. For the purposes of paragraph (g) of subdivision three of
section 13-195.1 of this chapter, such valuation as of any such June
thirtieth shall be the valuation for the basis fiscal year related to a
payment guarantee (as defined in paragraph (a) of subdivision three of
such section 13-195.1) in which such June thirtieth occurs.
(2) The actuary shall base such annual valuation of liabilities only
(i) upon the persons who, as of each such June thirtieth, are
beneficiaries and (ii) upon the persons who, being correction officers
in service as of such June thirtieth, may be actuarially expected to
retire thereafter as correction officers for service with the number of
years of service required to become beneficiaries (as defined in
paragraph (c) of subdivision one of this section).
(3) The liabilities determined in such valuation shall be equal to the
actuarial present value of accumulated plan benefits. The actuarial
assumptions used by the actuary in making such annual valuation of
liabilities, including assumptions as to interest rate, mortality of
beneficiaries and number of correction officers in service as of June
thirtieth who will retire as correction officers for service with the
number of years of service required to become beneficiaries (as defined
in paragraph (c) of subdivision one of this section), shall be adopted
by the variable supplements board on the recommendation of the actuary.
(i) For the purposes of the valuation of the assets of the variable
supplements fund pursuant to paragraphs (e), (f) and (h) of this
subdivision, such assets shall be valued at their fair market value as
of the applicable date with respect to which such assets are required to
be valued under the applicable provisions of such paragraphs.
(j) Whenever variable supplements are payable to beneficiaries of the
correction officers' variable supplements fund pursuant to the
provisions of this section, such payment, except as provided in
paragraphs (f) and (g) of this subdivision, shall not be an obligation
of the city and the city, except as provided for in such paragraphs (f)
and (g), shall not guarantee such payment.
4. (a) The variable supplements fund shall pay variable supplements to
beneficiaries in accordance with the succeeding paragraphs of this
subdivision.
(b) No variable supplements shall be payable to any beneficiary for
any calendar year or part thereof preceding January first, two thousand.
(c) For calendar years succeeding December thirty-first, nineteen
hundred ninety-nine, the variable supplements fund, subject to the
provisions of paragraphs (e), (f) and (g) of subdivision three of this
section, and provided any applicable conditions precedent to payability
as prescribed by such provisions are satisfied, and subject to the
provisions of paragraph (e) of this subdivision, shall pay to each
beneficiary, who retired on or after July first, nineteen hundred
ninety-nine and prior to January first, two thousand, variable
supplements payments as follows:
(1) for each calendar year following calendar year nineteen hundred
ninety-nine, but not including the calendar year of beneficiary's death,
a single annual payment to be paid on or about December fifteenth of
such year, as follows:
CALENDAR SUPPLEMENT
YEAR
2000 $ 8,500
2001 $ 9,000
2002 $ 9,500
2003 $10,000
2004 $10,500
2005 $11,000
2006 $11,500
2007 $12,000
2008 $12,000
2009 $12,000
2010 $12,000
2011 $12,000
2012 $12,000
2013 $12,000
2014 $12,000
2015 $12,000
2016 $12,000
2017 $12,000
2018 $12,000
2019 and
each calendar
year thereafter $12,000
(2) for the calendar year of the beneficiary's death (for those
beneficiaries who die on or after February first, two thousand), an
amount calculated by multiplying one-twelfth times the supplement
applicable to the year of death, as provided in the chart set forth in
subparagraph one of this paragraph, by the number of full calendar
months the beneficiary lived during that calendar year prior to the
month of his or her death.
(d) For calendar years succeeding December thirty-first, nineteen
hundred ninety-nine, the variable supplements fund, subject to the
provisions of paragraphs (e), (f) and (g) of subdivision three of this
section and provided any applicable conditions precedent to payability
under such provisions are satisfied, and subject to the provisions of
paragraph (e) of this subdivision, shall pay to each person who retired
for service on or after January first, two thousand so as to become a
beneficiary, variable supplements payments as follows:
(1) for the calendar year of retirement, an amount calculated by
multiplying one-twelfth times the supplement applicable to the year of
retirement, as provided for in the chart set forth in subparagraph one
of paragraph (c) of this subdivision, by the number of calendar months
elapsing from and including the month next following the month of
retirement to the end of such calendar year of retirement, such payment
to be made on or about December fifteenth of such year;
(2) for each calendar year following the year of retirement, but not
including the calendar year of the beneficiary's death, a single annual
payment equal to the supplement provided for with respect to each such
calendar year as set forth in the chart in subparagraph one of paragraph
(c) of this subdivision, which payment shall be made on or about
December fifteenth of such year;
(3) for the calendar year of the beneficiary's death (for those
beneficiaries who die on or after February first, two thousand), an
amount calculated by multiplying one-twelfth times the supplement
applicable to the year of death, as provided for in the chart set forth
in subparagraph one of paragraph (c) of this subdivision, by the number
of full calendar months the beneficiary lived during that calendar year
prior to the month of his or her death; and
(4) if the retirement and death of a beneficiary occur in the same
calendar year, aggregate payments under subparagraphs one and three of
this paragraph shall be made only in respect to calendar months
following the month of retirement and preceding the month of death.
(e) (1) (i) Subject to the provisions of items (ii) and (iii) of this
subparagraph, on or after January first, two thousand, where a
beneficiary is entitled to receive variable supplements payments
pursuant to paragraph (c) or (d) of this subdivision, and that
beneficiary is also entitled to receive a supplemental retirement
allowance or cost-of-living adjustment pursuant to any other provision
of law enacted on or after the effective date of the chapter which
amended this subdivision (hereinafter referred to as "other supplemental
retirement allowance"), the amount of such variable supplement payable
for a calendar year or a part of such calendar year to such beneficiary
shall be reduced by the amount of such other supplemental retirement
allowance that is payable to such beneficiary to the extent that such
other supplemental retirement allowance is attributable to the same
calendar year or part of such calendar year.
(ii) For any beneficiary referred to in paragraph (c) or (d) of this
subdivision, whose variable supplements payments are being reduced
pursuant to item (i) of this subparagraph because such other
supplemental retirement allowance is also payable to that beneficiary,
the reduction provided for in such item (i) shall cease as to such
beneficiary on the later of (A) the first day of the month next
following the month in which such beneficiary attains age sixty-two; or
(B) January first, two thousand seven.
(iii) In any case where the reduction of variable supplements payments
to a beneficiary has ceased pursuant to item (ii) of this subparagraph,
that beneficiary, for the purpose of determining his or her eligibility
for and the amount of any other supplemental retirement allowance, shall
be deemed to have retired on the date of the cessation of such reduction
specified in the applicable provisions of such item (ii).
(2) The legislature hereby declares that the variable supplements
authorized by this section and the granting and receipt thereof:
(i) shall not create or constitute membership in a pension or
retirement system and shall not create or constitute a contract with any
beneficiary or with any correction officer; and
(ii) shall not constitute a pension or retirement allowance or benefit
under the retirement system or otherwise.
(3) Except as otherwise provided in sections 13-195 and 13-195.1 of
this chapter, nothing contained in this section shall create or impose
any obligation on the part of the retirement system, or the funds or
monies thereof, or authorize such funds or monies to be appropriated or
used for any payment under this section or for any purpose thereof.
(f) Beneficiaries shall be eligible to receive variable supplements
pursuant to this section, notwithstanding any other provision of law to
the contrary.
(g) The monies or assets of the variable supplements fund shall not be
used for any purpose, other than payment of variable supplements
pursuant to the provisions of this section, except that they may be
invested as authorized by subdivision six of this section.
5. The correction officers' variable supplements fund shall have the
powers and privileges of a corporation and by its name all of its
business shall be transacted, all of its funds invested, all warrants
for money drawn and payments made, and all of its cash and securities
and other property held.
6. (a) The members of the variable supplements board shall be the
trustees of the monies received by or belonging to the correction
officers' variable supplements fund pursuant to this section and,
subject to the provisions of paragraph (b) of this subdivision, shall
have full power to invest same, subject to the terms, conditions,
limitations and restrictions imposed by law upon savings banks in the
making and disposing of investments by savings banks; and subject to
like terms, conditions, limitations and restrictions, such trustees
shall have full power to hold, purchase, sell, assign, transfer or
dispose of any of the securities or investments in which any of such
monies shall have been invested as well as of the proceeds of such
investments and of any monies belonging to such fund.
(b) The members of the variable supplements board shall have the same
investment powers and power to delegate such powers as are vested by the
code and the retirement and social security law in the members of the
board of trustees of the retirement system.
7. The variable supplements board shall publish annually in the City
Record a report for the preceding year showing the assets of the
correction officers' variable supplements fund and a statement as to the
accumulated cash and securities of such fund as certified by the
comptroller, and shall set forth in such report such other facts,
recommendations and data as the board may deem pertinent.
8. The comptroller shall be custodian of the monies and assets of the
correction officers' variable supplements fund. All such monies and
assets included in such fund or which shall hereafter accrue to such
fund shall be in his custody for the purposes of this section subject to
the direction, control and approval of such board as to disposition,
investment, management and report. All payments from such fund shall be
made by the comptroller upon a voucher signed by the secretary of the
variable supplements board.
9. Except as provided in this section, the trustees and employees
assigned to the variable supplements board are prohibited from having
any interest, directly or indirectly, in the gains or profits of any
investment of the correction officers' variable supplements fund or as
such, directly or indirectly, from receiving any pay or emolument for
their services. The trustees and such employees, directly or indirectly,
for themselves or as agents or partners of others, shall not borrow any
of its funds or deposits or in any manner use the same except to make
such current and necessary payments as are authorized by such board.
10. The superintendent of insurance may examine the affairs of the
correction officers' variable supplements fund with the same powers and
jurisdiction as are applicable in the case of an examination of a life
insurance company by the superintendent under article three of the
insurance law. The correction officers' variable supplements fund shall
be subject to assessment for expenses pursuant to the provisions of
section three hundred thirteen of the insurance law, but shall not be
subject to assessment for expenses under any of the provisions of
section three hundred thirty-two of the insurance law.
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