There is a newer version of the New York Consolidated Laws
2006 New York Code - Definitions.
§ 13-214 Definitions. The following words and phrases as used in this
subchapter unless a different meaning is plainly required by the
context, shall have the following meanings:
1. "Pension fund" shall mean the police pension fund provided for in
this subchapter.
2. "Medical board" shall mean the board of physicians provided for in
section 13-223 of this subchapter.
3. "City service" shall mean service in the police force in the
department and shall include service credit acquired by transfer
pursuant to section forty-three of the retirement and social security
law or by transfer, from another pension or retirement system, of funds
actuarily determined in a manner similar to that provided by such
section of the retirement and social security law. In any case where a
member, after becoming eligible to retire for service, is appointed
police commissioner or deputy police commissioner, and in any case where
a person who retired for service as a member of the pension fund is
thereafter appointed police commissioner or deputy police commissioner,
his or her service as police commissioner or deputy police commissioner
shall constitute city service.
4. "Member" shall mean any person included in the membership of the
pension fund as provided in section 13-215 of this subchapter.
5. "Beneficiary" shall mean any person in receipt of a pension, an
annuity, a retirement allowance, a dependent benefit, a death benefit or
any other benefit provided by this subchapter.
6. "Final compensation" shall mean the average annual compensation
earnable by a member for city-service during his or her last five years
of city-service, or during any other five consecutive years of
city-service since he or she last became a member which such member
shall designate.
7. "Accumulated deductions" shall mean the sum of all the amounts,
deducted from the compensation of a member or contributed by him or her,
standing to the credit of his or her individual account in the annuity
savings fund together with regular interest and special interest, if
any, thereon.
8. * (a) Except as otherwise provided in paragraphs (b), (c), (d), (e)
and (g) of this subdivision, "regular interest", in the cases of persons
who are members on the thirtieth day of June, nineteen hundred
forty-seven, shall mean interest at four per centum per annum,
compounded annually, and in the cases of persons becoming members
thereafter, shall mean interest at three per centum per annum,
compounded annually to and including the thirtieth day of June, nineteen
hundred sixty-five, and interest at four per centum per annum,
compounded annually, from and after the first day of July, nineteen
hundred sixty-five, except that (i) as to the annuity savings fund and
reserve-for-increased-take-home-pay of persons becoming members after
June thirtieth, nineteen hundred forty-seven, the term "regular
interest", for the period from July first, nineteen hundred sixty-five
through December thirty-first, nineteen hundred sixty-seven, shall mean
three per centum per annum compounded annually, and (ii) in the cases of
persons becoming members after June thirtieth, nineteen hundred
forty-seven, whose city-service has been or shall be terminated by
death, retirement, resignation, dismissal, or otherwise on or before
June thirtieth, nineteen hundred sixty-seven, the term "regular
interest" shall mean interest at three per centum per annum, compounded
annually, to and including the date of such termination.
* NB Amended Ch. 910/85 § 25, language juxtaposed per Ch. 907/85 § 14
(b) The provisions of paragraph (a) of this subdivision shall not
apply to any actuarial valuation, determination or appraisal which is
made pursuant to this chapter and which is used to determine the amount
of any contribution required to be paid by the city or other public
employer into the contingent reserve fund of the pension fund in the
nineteen hundred seventy-seven-nineteen hundred seventy-eight fiscal
year of the city or any subsequent fiscal year thereof.
(c) (i) Subject to the provisions of subparagraph (ii) of paragraph
(f) of this subdivision, for the purpose of any actuarial valuation,
determination or appraisal which is made pursuant to this chapter and
which is used to determine the amount of any contribution required to be
paid, by the city or other public employer into the contingent reserve
fund of the pension fund in the nineteen hundred seventy-seven--nineteen
hundred seventy-eight fiscal year of the city and in each succeeding
fiscal year thereof to and including the nineteen hundred
seventy-nine--nineteen hundred eighty fiscal year thereof, "regular
interest" shall mean interest at five and one-half per centum per annum,
compounded annually.
(ii) Subject to the provisions of subparagraph (ii) of paragraph (f)
of this subdivision, and except as otherwise provided in paragraphs (1)
and (4) of subdivision b of section 13-228 of this subchapter with
respect to determination of the amount of the balance sheet liability as
of June thirtieth, nineteen hundred eighty and balance sheet liability
contributions, for the purpose of any actuarial valuation, determination
or appraisal which is made pursuant to this chapter and which is used to
determine the amount of any contribution required to be paid by the city
or other public employer into the contingent reserve fund of the pension
fund in the nineteen hundred eighty--nineteen hundred eighty-one fiscal
year of the city and in each succeeding fiscal year thereof to and
including the nineteen hundred eighty-one--nineteen hundred eighty-two
fiscal year thereof, "regular interest" shall mean interest at the rate
of seven and one-half per centum per annum, compounded annually.
(iii) Subject to the provisions of subparagraph (ii) of paragraph (f)
of this subdivision, and except as otherwise provided in paragraphs (1)
and (4) of subdivision b of section 13-228 of this subchapter with
respect to determination of the amount of the balance sheet liability as
of June thirtieth, nineteen hundred eighty and balance sheet liability
contributions, for the purpose of any actuarial valuation, determination
or appraisal which is made pursuant to this subchapter and which is used
to determine the amount of any contribution required to be paid by the
city (or other obligors required to pay public employer contributions on
account of members) into the contingent reserve fund of the pension fund
in the nineteen hundred eighty-two--nineteen hundred eighty-three fiscal
year of the city and in each succeeding fiscal year thereof to and
including the nineteen hundred eighty-seven--nineteen hundred
eighty-eight fiscal year thereof, "regular interest" shall mean interest
at the rate of eight per centum per annum, compounded annually.
(iv) Subject to the provisions of subparagraph (ii) of paragraph (f)
of this subdivision, and except as otherwise provided in paragraphs (1)
and (4) of subdivision b of section 13-228 of this subchapter with
respect to determination of the amount of the balance sheet liability as
of June thirtieth, nineteen hundred eighty and balance sheet liability
contributions, for the purpose of any actuarial valuation, determination
or appraisal which is made pursuant to this subchapter and which is used
to determine the amount of any contribution required to be paid by the
city (or other obligors required to pay public employer contributions on
account of members) into the contingent reserve fund of the pension fund
in the nineteen hundred eighty-eight--nineteen hundred eighty-nine
fiscal year of the city and the nineteen hundred eighty-nine--nineteen
hundred ninety fiscal year thereof, "regular interest" shall mean
interest at the rate of eight and one-quarter per centum per annum,
compounded annually.
(d) Subject to the provisions of subparagraph (ii) of paragraph (f) of
this subdivision, and except as otherwise provided in paragraphs (1) and
(4) of subdivision b of section 13-228 of this subchapter with respect
to determination of the amount of the balance sheet liability as of June
thirtieth, nineteen hundred eighty and balance sheet liability
contributions, for the purpose of any actuarial valuation, determination
or appraisal which is made pursuant to this subchapter and which is used
to determine the amount of any contribution required to be paid by the
city or other public employer into the contingent reserve fund of the
pension fund in the city's nineteen hundred ninety--nineteen hundred
ninety-one fiscal year and in any subsequent fiscal year thereof,
"regular interest" shall mean interest at such rate per annum,
compounded annually, as shall be prescribed by the legislature in
section 13-638.2 of this title.
* (e) 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 governor, the temporary president and minority leader of the senate,
the speaker of the assembly, the majority and minority leaders of the
assembly, the state superintendent of insurance, the chairperson of the
permanent commission on public employee pension and retirement systems,
the mayor of the city and the members of the board of estimate and city
council thereof, the written recommendations of the board as to the rate
of interest and effective period thereof which should be established by
law as "regular interest" for the purpose specified in paragraph (d) of
this subdivision.
* NB Amended Ch. 911/85 § 32, language juxtaposed per Ch. 907/85 § 14
(f) * (i) Subject to the provisions of subparagraph (c) of paragraph
two of subdivision b of section 13-228 of this subchapter, nothing
contained in paragraphs (b), (c), (d) and (e) of this subdivision shall
be construed as prescribing for the purpose of crediting interest to
individual accounts in the annuity savings fund or to
reserves-for-increased-take-home-pay or for any other purpose besides
that specified in such paragraphs, a rate of regular interest other than
as prescribed in paragraph (a) or paragraph (g) of this subdivision.
* NB Amended Ch. 910/85 § 26, language juxtaposed per Ch. 907/85 § 14
(ii) Subject to the provisions of section 13-638.2 of this title,
nothing contained in paragraphs (c) and (d) of this subdivision shall be
construed as requiring the original unfunded accrued liability
contribution, as defined in subparagraph (a) of paragraph (3) of
subdivision b of section 13-228 of this subchapter, and the revised
unfunded accrued liability contribution, as defined in subparagraph (b)
of such paragraph (3), and the nineteen hundred eighty unfunded accrued
liability adjustment, as defined in subparagraph (c) of such paragraph
(3), and the nineteen hundred eighty-two unfunded accrued liability
adjustment, as defined in subparagraph (d) of such paragraph (3) to be
determined in any manner other than as prescribed in such subparagraphs.
Subject to the provisions of section 13-638.2 of this title, nothing
contained in paragraphs (c) and (d) of this subdivision shall be
construed as requiring any balance sheet liability or balance sheet
liability contribution computed pursuant to the provisions of paragraph
(4) of subdivision b of such section 13-228 of this subchapter to be
determined in any manner other than as prescribed in such paragraph (4).
* (g) (i) Commencing on August first, nineteen hundred eighty-three,
and continuing thereafter, "regular interest", in the cases of persons
who were members on July thirty-first, nineteen hundred eighty-three or
who thereafter became or become members, shall mean, subject to the
provisions of subparagraph (ii) to (x), inclusive, of this paragraph
(g), interest at seven per centum per annum, compounded annually.
(ii) (A) (1) Subject to the provisions of sub-items (2) and (3) of
this item (A), regular interest at the rate of seven per centum per
annum, compounded annually, shall be used as the actuarial interest
assumption for determining any actuarial equivalent benefit payable to
or on account of any seven percent member for actuarial equivalent
benefit purposes.
(2) Where an actuarial equivalent benefit is required by board
resolution to be determined for any seven percent member for actuarial
equivalent benefit purposes through the use of the modified Option 1
pension computation formula (as defined in subdivision twenty-eight of
this section), the actuarial interest assumptions used in making such
determination shall be as prescribed in such formula.
(3) Where it is provided by board resolution that a portion of an
actuarial equivalent benefit shall be determined for any such seven
percent member on the basis of gender-neutral mortality tables, and that
the remainder of such benefit shall be determined on the basis of
mortality tables which are not gender-neutral, regular interest at the
rate of seven per centum per annum, compounded annually, shall be used
as the actuarial interest assumption for determining the portion of such
benefit required by such resolution to be determined on the basis of
gender-neutral mortality tables and such rate of regular interest shall
not apply to the determination of the remainder of such benefit.
(B) Notwithstanding that the process of determining whether a member
is a seven percent member for actuarial equivalent benefit purposes may
include, for the purpose of ascertaining the highest applicable benefit,
alternative hypothetical benefit calculations utilizing a rate of
regular interest other than such rate of seven per centum, nothing
contained in subparagraph (i) of this paragraph (g) or in item (A) of
this subparagraph (ii) shall be construed as requiring that in the
determination of any actuarial equivalent benefit payable to or on
account of any member who is not a seven percent member for actuarial
equivalent benefit purposes, any rate of interest be used as the
actuarial interest assumption other than regular interest, compounded
annually, as prescribed by the applicable provisions of paragraph (a) of
this subdivision.
(iii) The provisions of item (A) of subparagraph (ii) of this
paragraph (g) shall not apply to any person who, prior to August first,
nineteen hundred eighty-three, retired as a member of the pension fund
for service or superannuation or for ordinary or accident disability and
was such a retiree immediately prior to such August first, provided
however, that if any such retiree returned or returns to city-service
and, on or after July thirty-first, nineteen hundred eighty-three, was
or is restored to membership in the pension fund as required or
permitted by law, the provisions of such item (A), from and after the
date of such restoration to membership, shall apply to such restored
member with respect to determination of any actuarial equivalent benefit
which is both (A) a benefit to which he or she became or becomes
entitled upon his or her subsequent retirement or subsequent
discontinuance of service so as to qualify for benefits, and (B) a
benefit which is not a continuation, without change, of a benefit which
had previously become payable to him or her by reason of his or her
prior retirement; provided further that nothing contained in the
preceding provisions of this subparagraph shall be construed as making
the provisions of item (A) of such subparagraph (ii) applicable to any
such restored member who was not or is not a seven percent member for
actuarial equivalent benefit purposes at the time for such subsequent
retirement or subsequent discontinuance of service.
(iv) (A) Subject to the provisions of items (B) and (C) of this
subparagraph (iv), the provisions of item (A) of subparagraph (ii) of
this paragraph (g) shall not apply to any member who, (1) prior to
August first, nineteen hundred eighty-three, discontinued service under
such circumstances that such member became a discontinued member, and
(2) was such a discontinued member immediately prior to such August
first.
(B) If such a discontinued member returned or returns to city-service
and on or after July thirty-first, nineteen hundred eighty-three and
before payability of his or her retirement allowance as such member
began or begins, again becomes an active member pursuant to the
applicable provisions of section 13-256 of this subchapter, the
provisions of item (A) of such subparagraph (ii) shall apply to him or
her on and after the date of such resumption of active membership;
provided that nothing contained in the preceding provisions of this item
(B) shall be construed as making the provisions of item (A) of such
subparagraph (ii) applicable to any such member who was not or is not a
seven percent member for actuarial equivalent benefit purposes at the
time of subsequent retirement or subsequent discontinuance of service so
as to qualify for benefits.
(C) If a discontinued member referred to in item (A) of this
subparagraph (iv) returned or returns to city-service and on or after
July thirty-first, nineteen hundred eighty-three and on or after the
date on which payability of his or her retirement allowance as such
member began or begins, again became or becomes an active member
pursuant to the applicable provisions of section 13-256 of the code, the
provisions of item (A) of such subparagraph (ii), on and after the date
of such resumption of active membership, shall apply to him or her with
respect to determination of any actuarial equivalent benefit which is
both (1) a benefit to which he or she became or becomes entitled upon
his or her subsequent retirement or subsequent discontinuance of service
so as to qualify for benefits, and (2) a benefit which is not a
continuation, without change, of a benefit which had previously become
payable to him or her by reason of his or her prior discontinuance of
service; provided that nothing contained in the preceding provisions of
this item (C) shall be construed as making item (A) of such subparagraph
(ii) applicable to any such member who was not or is not a seven percent
member for actuarial equivalent benefit purposes at such time of
subsequent retirement or subsequent discontinuance of service.
(v) (A) Subject to the provisions of item (B) of this subparagraph (v)
and to the provisions of subparagraph (viii) of this paragraph (g), the
selection of mode of benefit (as defined in subdivision twenty-nine of
this section) made prior to the date of enactment (as such date is
certified pursuant to section forty-one of the legislative law) of this
paragraph (g) by a person entitled to a recomputation of benefits
pursuant to the best-of-three-computations method (as defined in
subdivision thirty-one of this section) in relation to the retirement
allowance (or any component thereof) which became payable to him or her
prior to such date of enactment shall be the selection of mode of
benefit applicable to the recomputed retirement allowance (or any
corresponding component thereof) to which he or she is entitled under
the best-of-three-computations method (as defined in subdivision thirty
of this section), and any such person entitled to a recomputation of
benefits pursuant to the best-of-three-computations method shall not be
entitled to make any change in such selection of mode of benefit.
(B)(1) Notwithstanding the provisions of item (A) of this subparagraph
(v), a person entitled to a recomputation of benefits pursuant to the
best-of-three-computations method shall be entitled, to the extent and
in the manner prescribed in the succeeding sub-items of this item (B),
to change the original selection of mode of benefit applicable to the
retirement allowance (or any component thereof) which became payable to
him or her prior to the date of enactment of this paragraph (g).
(2) In any case where the original selection of mode of benefit of a
person entitled to a recomputation of benefits pursuant to the
best-of-three-computations method was a selection of a joint and
survivor option (as defined in subdivision thirty-two of this section),
no change from such original selection of a joint and survivor option
may be made under this item (B) to any other selection of mode of
benefit if the designated beneficiary selected with respect to such
joint and survivor option by such person entitled to a recomputation is
not alive at the time of filing of the form whereby such person entitled
to a recomputation seeks to change, pursuant to this item (B), his or
her original selection of such joint and survivor option.
(3) Except for a change of selection of mode of benefit prohibited by
sub-item two of this item (B), any original selection of mode of benefit
may be changed pursuant to this item (B) to another selection of mode of
benefit, provided all of the conditions set forth in sub-items four, six
and eight of this item (B) are met.
(4) Subject to the provisions of sub-items seven and eight of this
item (B), a person entitled to a recomputation of benefits pursuant to
the best-of-three-computations method may, pursuant to this item (B),
effect any such permissible change of his or her original selection of
mode of benefit by executing, acknowledging and filing with the pension
fund, within the applicable period of time prescribed by sub-item six of
this item, a new selection of mode of benefit. If the original selection
of mode of benefit of the person filing such new selection was a
selection of a joint and survivor option, such new selection shall be
void and of no effect unless (a) the designated beneficiary named in
such original selection of a joint and survivor option signs and
acknowledges, in the form for such new selection of mode of benefit, a
consent to such changed selection of mode of benefit, and (b) such
original designated beneficiary is alive on the date of filing of such
new selection.
(5) The pension fund shall mail to each person entitled to a
recomputation of benefits pursuant to the best-of-three-computations
method a letter showing amounts of benefits, as recomputed for such
person under the best-of-three-computations method, for modes of benefit
other than joint and survivor options, together with a statement
advising such person that upon request the amounts of recomputed
benefits under joint and survivor options will be provided.
(6) The period of time within which any such person entitled to a
recomputation may file a new selection of mode of benefit as provided
for in sub-items three and four of this item (B) shall be sixty days
after the date of issuance set forth in such letter mailed to such
person pursuant to sub-item five of this item; provided, however, that
if, pursuant to the request of such person, a later letter setting forth
benefits information in relation to new selection of a mode of benefit
is mailed to such person by the pension fund, such period of time for
filing a new selection of mode of benefit shall be thirty days after the
date of issuance set forth in such later letter.
(7) Upon the filing of a new selection of mode of benefit pursuant to
this item (B) by any such person entitled to a recomputation, such new
selection shall be irrevocable and such person shall not be entitled to
file any other selection of mode of benefit with respect to such
retirement allowance (or any component thereof) which became payable to
him or her prior to the date of enactment of this paragraph (g).
(8) No new selection of mode of benefit filed pursuant to the
preceding sub-items of this item (B) shall be valid or effective as a
change of mode of benefit or for any other purpose unless the person
entitled to a recomputation of benefits pursuant to the
best-of-three-computations method who files such new selection is alive
on the date (hereinafter referred to as the "validating date") three
hundred sixty-five days after the date of filing of such new selection
of mode of benefit. If such person filing such new selection of mode of
benefit is alive on the validating date with respect to such new
selection, such new selection shall become valid and effective on such
validating date; provided, however, that from and after the effective
date of retirement of such person making such valid and effective new
selection of mode of benefit (if he or she retired for service or
superannuation or for ordinary or accident disability) or from and after
the date on which payability of the original benefits of such person
began (if he or she was a discontinued member), such new selection of
mode of benefit shall supersede such original selection of mode of
benefit and shall apply to and govern the amount of benefits payable to
such person or to his or her designated beneficiary or estate.
(vi) Subject to the provisions of subparagraph (viii) of this
paragraph (g), in any case where a member who retired before August
first, nineteen hundred eighty-three for service or superannuation or
for ordinary or accident disability returned or returns to city-service
and, on or after July thirty-first, nineteen hundred eighty-three,
re-entered or re-enters membership in the pension fund, nothing
contained in subparagraphs (i) to (iv), inclusive of this paragraph (g)
shall be construed as authorizing or permitting him or her to change any
selection of mode of benefit (as defined in subdivision twenty-nine of
this section) made by him or her with respect to any benefit which, upon
his or her subsequent retirement or discontinuance of service so as to
qualify for benefits, is payable to him or her as a continuation,
without change, of a benefit which had previously become payable to him
or her by reason of his or her prior retirement.
(vii) Subject to the provisions of subparagraph (viii) of this
paragraph (g), in any case where a discontinued member referred to in
item (A) of subparagraph (iv) of this paragraph returned or returns to
city-service and, on or after July thirty-first, nineteen hundred
eighty-three, again became or becomes an active member pursuant to
applicable provisions of law, nothing contained in subparagraphs (i) to
(iv), inclusive, of this paragraph (g) shall be construed as authorizing
or permitting him or her to change any selection of mode of benefit made
by him or her with respect to any benefit which, upon his or her
subsequent retirement or discontinuance of service so as to qualify for
benefits, is payable to him or her as a continuation, without change, of
a benefit which had previously become payable to him or her by reason of
his or her prior discontinuance of service.
(viii) Nothing contained in subparagraphs (v), (vi) and (vii) of this
paragraph (g) shall be construed as preventing:
(A) any person subject to such subparagraph (v) who, on or after July
thirty-first, nineteen hundred eighty-three, re-entered or re-enters
city-service and again became or becomes an active member; or
(B) any re-entered member referred to in such subparagraph (vi) or
subparagraph (vii);
upon his or her subsequent retirement, from exercising any right, which
any other applicable law grants to him or her under such circumstances,
to make a selection of mode of benefit (as defined in subdivision
twenty-nine of this section).
(ix) Notwithstanding the provisions of subparagraph (i) of this
paragraph (g) prescribing a rate of regular interest of seven per centum
per annum, compounded annually, for specified members described in such
subparagraph (i), the rate of regular interest which shall be applied to
fix the rate of interest on any loan to any such member eligible to
borrow shall be four per centum per annum, compounded annually.
(x) The rate of regular interest applicable to determination of the
rate of member contribution of any member whose last membership began
prior to the date of enactment (as certified pursuant to section
forty-one of the legislative law) of this paragraph (g) shall be the
rate of regular interest which was applicable, under the provisions of
law in effect prior to such date of enactment, to the determination of
the rate of member contribution of such member, and nothing contained in
the preceding subparagraphs of this paragraph (g) shall be construed as
applicable to the determination of the rate of member contribution of
any such member whose last membership so began or as changing or
affecting the rate of member contribution of any such member.
* NB Added Ch. 910/85 § 28, language juxtaposed per Ch. 907/85 § 14
9. "Pension" shall mean payments for life derived from appropriations
made by the city as provided in this subchapter.
10. "Annuity" shall mean payments for life derived from contributions
made by a member as provided in this subchapter.
11. "Dependent benefit" shall mean payments derived from contributions
made by a member as provided in section 13-253 of this subchapter.
12. "Retirement allowance" shall mean the pension plus the annuity and
the pension-providing-for-increased-take-home-pay, if any.
13. "Pension reserve" shall mean the present value of all payments to
be made on account of any pension, or benefit in lieu of any pension,
granted under the provisions of this subchapter, computed upon the basis
of such mortality tables as shall be adopted by the board with regular
interest.
14. "Annuity reserve" shall mean the present value of all payments to
be made on account of any annuity, or benefit in lieu of any annuity,
granted under the provisions of this subchapter, computed upon the basis
of such mortality tables as shall be adopted by the board with regular
interest.
15. "Fiscal year" shall mean any year commencing with the first day of
July and ending with the thirtieth day of June next following.
16. "Total service" shall mean all service of a member allowable as
provided in subdivision three of this section and section 13-218 of this
subchapter.
17. "Board" shall mean the board of trustees provided for in section
13-216 of this subchapter.
18. Pension-providing-for-increased-take-home-pay. The annual
allowance for life payable in monthly installments derived from
contributions made by the city to the contingent reserve fund pursuant
to section 13-226 of this subchapter.
19. Reserve-for-increased-take-home-pay. The amount of the reserve
provided by the city which shall be a sum consisting of the total of all
products obtained by multiplying the compensation of the member, during
each period of reduction of member contributions under section 13-226 of
this subchapter, by the percentage of reduction of his contributions
applicable under such section with respect to such period, plus regular
interest, and additional interest, if any, thereon.
20. "Special interest". A distribution to the annuity savings fund, in
addition to regular interest, which distribution (a) for each of the
periods as to which the provisions of section 13-234 of this subchapter
or section 13-638.2 of this title grant special interest, consists of
the amount prescribed by such provisions for such period and (b) for
each such period, is credited in such applicable amount to the accounts
in the annuity savings fund of members who are eligible under such
provisions for crediting of such amount for such period.
21. "Additional interest". A distribution to the
reserve-for-increased-take-home-pay in addition to regular interest,
which distribution (a) for each of the periods as to which the
provisions of section 13-234 of this subchapter or section 13-638.2 of
this title grant additional interest, consists of the amount prescribed
by such provisions for such period and (b) for each such period, is to
be included in such applicable amount in the
reserve-for-increased-take-home pay of each member who is eligible under
such provisions for inclusion of such amount for such period.
22. "Discontinued member." A member who has discontinued police
service and who has a vested right to a deferred retirement allowance
under section 13-256 of this subchapter.
23. "Police service." Service in the uniformed force of the police
department, as a member of such force, including service for which
credit is granted by section 14-112 of the code, but excluding any
service credit acquired by transfer or otherwise under any provision of
law.
24. "Supplementary interest". An annual allowance, in addition to
regular interest, of interest on the mean amount for the preceding year
in each of the funds provided for in accordance with the provisions of
this subchapter (excluding, however, the annuity savings fund and the
amount of reserve-for-increased-take-home-pay in the contingent reserve
fund), which allowance, (a) for each of the periods as to which the
provisions of section 13-234 of this subchapter or section 13-638.2 of
this title grant supplementary interest, consists of the amount
prescribed by such provisions for each period and (b) for each such
period, is credited in such applicable amount to such funds at the time,
in the manner, to the extent and subject to the exclusions prescribed by
the provisions of such section.
* 25. "Actuarial equivalent benefit". Any benefit which by law is
required to be an actuarial equivalent or by law is required to be
determined on the basis of an actuarial equivalent.
* NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
* 26. "Seven percent member for actuarial equivalent benefit
purposes". (a) A member who meets all of the following conditions:
(i) subparagraph (i) of paragraph (g) of subdivision eight of this
section (relating to the definition of members as to whom regular
interest at seven per centum per annum, compounded annually, applies)
applies to such member; and
(ii) an actuarial equivalent benefit has become payable to or on
account of such member; and
(iii) it is provided by a resolution adopted by the board (A) that a
mortality table which does not differentiate on the basis of sex shall
be used to calculate such actuarial equivalent benefit or a portion of
such benefit, or (B) that the modified Option 1 pension computation
formula (as defined in subdivision twenty-eight of this section) shall
be used to calculate such actuarial equivalent benefit.
(b) Except in cases to which the modified Option 1 pension computation
formula applies pursuant to a resolution adopted by the board, nothing
contained in subparagraph (iii) of paragraph (a) of this subdivision
twenty-six shall be construed as referring to or including any
calculation of an actuarial equivalent benefit (or portion of such
benefit) payable to any person where such calculation is required by
board resolution to be made throught the use of a sex-differentiated
mortality table.
* NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
* 27. "Tier I member". A member whose benefits (other than a
supplemental retirement allowance) are prescribed by this subchapter and
who is not subject to the provisions of article eleven, article fourteen
or article fifteen of the retirement and social security law.
* NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
* 28. "Modified Option 1 pension computation formula". (a) The method
of computing the Option 1 pension component of a retirement allowance
payable to a Tier I member and the amount of the Option 1 benefit
payable to the beneficiary or estate of such member who selected or
selects Option 1 as to such pension component, which method of
computation is as prescribed by the succeeding paragraphs of this
subdivision twenty-eight.
(b) The initial reserve for such pension component shall be computed
through use of mortality tables which do not differentiate on the basis
of sex (hereinafter referred to as "gender-neutral mortality tables")
and an interest assumption consisting of regular interest of seven per
centum per annum, compounded annually.
(c) Solely for the purpose of use as the minuend from which the
payments of such pension component to such member are subtracted in
order to determine the amount of the Option 1 benefit payable, upon such
member's death, to such member's beneficiary or estate by reason of such
Option 1 selection in relation to such pension component, the present
value of such member's maximum pension, as it was at the time of such
member's retirement, shall be deemed to be the greatest of:
(i) such present value determined on the basis of gender-neutral
mortality tables and an interest assumption consisting of regular
interest of seven per centum per annum, compounded annually; or
(ii) such present value determined on the basis of the female
mortality tables and the regular interest applicable to such member in
effect immediately prior to the date of enactment (as certified pursuant
to section forty-one of the legislative law) of this subdivision
twenty-eight; or
(iii) such present value determined on the basis of the male mortality
tables and the regular interest applicable to such member in effect
immediately prior to the date of enactment of this subdivision.
(d) The pension component payable to such member shall be computed on
the basis of gender-neutral mortality tables and an interest assumption
consisting of regular interest of seven per centum per annum, compounded
annually; so that:
(i) the present value, as it was at the time of such member's
retirement, of such component; plus
(ii) the present value, as it was at the time of such member's
retirement, of the amount payable to such member's Option 1 beneficiary
or estate upon the death of the member as provided for by the applicable
provisions of paragraph (e) of this subdivision;
shall be equal to the Option 1 initial reserve determined for such
pension component with respect to such member pursuant to the provisions
of paragraph (b) of this subdivision.
(e) Where such member dies before he or she has received payments on
account of such pension component equal to the present value of such
member's maximum pension as computed pursuant to paragraph (c) of this
subdivision, the Option 1 benefit payable to the beneficiary or estate
of such deceased member by reason of such Option 1 selection in relation
to such pension component, shall be the remainder obtained by
subtracting from such present value determined pursuant to such
paragraph (c) in relation to such pension component, the total of such
Option 1 payments on account of such pension component received by or
payable to such member for the period prior to his or her death.
(f) In relation to the Option 1 benefits determined pursuant to the
method of computation set forth in this subdivision twenty-eight by
reason of discontinuance of city-service by a discontinued member, the
phrase "time of such member's retirement", as set forth in paragraphs
(c) and (d) of this subdivision, shall be deemed, for the purpose of
this subdivision, to mean the date of commencement of the retirement
allowance of such discontinued member.
* NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
* 29. "Selection of mode of benefit". The choice made by a member (as
permitted by and pursuant to the requirements of law governing such
choice by such member) as to whether the maximum amount of his or her
retirement allowance or a component thereof shall be payable or such
retirement allowance or a component thereof shall be payable under an
option selected by the member. The term "selection of mode of benefit"
shall include a case where the maximum retirement allowance or a maximum
component thereof becomes payable because of a member's omission, within
the time permitted by law, to select the maximum benefit or an option.
* NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
* 30. "Best-of-three-computations method". (a) A method (as prescribed
by a resolution of the board) under which a retirement allowance (or
portion thereof) payable to a member is required to be determined for
such member so as to be the greatest of:
(i) such retirement allowance (or portion thereof) determined on the
basis of gender-neutral mortality tables and regular interest at the
rate of seven per centum per annum; or
(ii) such retirement allowance (or portion thereof) determined on the
basis of female mortality tables and the regular interest applicable to
such member as of a time prescribed in such resolution; or
(iii) such retirement allowance (or portion thereof) determined on the
basis of male mortality tables and the regular interest applicable to
such member as of a time prescribed in such resolution.
(b) Where, under the provisions of any such resolution of the board,
the modified Option 1 pension computation formula (as defined in
subdivision twenty-eight of this section) applies to any member, the
term "best-of-three-computations method", where used in relation to such
member, shall be deemed to include such modified Option 1 pension
computation formula, to the extent that such formula governs the
determination of the pension component (or portion thereof) of such
member's retirement allowance.
* NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
* 31. "Person entitled to a recomputation of benefits pursuant to the
best-of-three-computations method". Any person who meets all of the
conditions stated below in this subdivision thirty-one: (a) such person,
during the period beginning on August first, nineteen hundred
eighty-three and ending on the date next preceding the date of enactment
(as such date is certified pursuant to section forty-one of the
legislative law) of this subdivision thirty-one, (i) retired for service
or superannuation or for ordinary or accident disability or (ii)
discontinued service so as to become a discontinued member; and
(b) such person's retirement allowance (or a portion thereof), by
reason of such retirement or discontinuance of service is required by a
resolution adopted by the board to be redetermined pursuant to the
best-of-three-computations method (as defined in subdivision thirty of
this section); and
(c) a first payment on account of his or her retirement allowance (as
such retirement allowance was determined prior to the date of enactment
of this subdivision) was made prior to such date of enactment.
* NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
* 32. "Joint and survivor option". (a) Any option under which, at the
time when such option is selected, a choice is made which includes both:
(i) a benefit payable for the lifetime of the retired or vested member
by whom or in whose behalf such option is selected; and
(ii) a benefit (A) which consists of an amount equal to or
constituting a percentage of such retired or vested member's benefit and
(B) which is payable for the lifetime of a designated beneficiary
selected at the time when such option is selected.
(b) In any case where an option described in paragraph (a) of this
subdivision thirty-two includes a provision prescribing that if the
designated beneficiary predeceases such retired or vested member, a
maximum benefit shall become payable to such member, such option shall
nevertheless be deemed to be a joint and survivor option.
* NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
* 33. "Normal rate of contribution." The proportion of the earnable
compensation of a member which is required to be deducted from the
compensation of such member by the applicable provisions of section
13-225 of this subchapter as his or her member contributions, exclusive
of any increase in such contributions pursuant to subdivision c or
subdivision d of such section 13-225 or any decrease thereof on account
of any program for increased-take-home-pay or pursuant to subdivision
one of section one hundred thirty-eight-b of the retirement and social
security law (relating to election to decrease member contributions by
contributions due on account of social security coverage).
* NB Expires per ch. 114/89 § 16
* 34. "Member contributions eligible for pick up by the employer." (a)
With respect to any payroll period for a member (other than a member who
is not required to contribute during such payroll period because of his
or her currently effective election to discontinue member contributions
pursuant to subdivision b of section 13-225 of this subchapter), the
term "member contributions eligible for pick up by the employer" shall
mean the amount of member contributions which, in the absence of an
employer pick up program applicable to such member pursuant to section
13-225.1 of this subchapter (providing for pick up of required member
contributions), would be required by law to be deducted, on account of
such member's normal rate of contribution, from the compensation of such
member for such payroll period, after (1) giving effect to any reduction
in such contributions required under any program for
increased-take-home-pay or pursuant to subdivision one of section one
hundred thirty-eight-b of the retirement and social security law and (2)
excluding any deductions from such compensation (or redeposits,
restorations or payments) on account of (i) loans or withdrawals of
excess contributions or (ii) any election by such member to increase his
or her contributions pursuant to subdivision c or subdivision d of
section 13-225 of this subchapter or (iii) any other cause not
attributable to the member's normal rate of contribution after
reduction, if any, in such rate as described in subparagraph one of this
paragraph (a).
(b) If no deductions on account of a member's normal rate of
contribution are required by law to be made from the compensation of any
member for any payroll period, such member shall not have, for such
payroll period, any member contributions eligible for pick up by the
employer. The amount of any member's member contributions eligible for
pick up by the employer for any payroll period shall be determined
solely on the basis of compensation paid to such member for such payroll
period by his or her public employer. A member shall not have any member
contributions eligible for pick up by the employer with respect to any
payroll period for which he or she is not paid compensation by his or
her public employer.
* NB Expires per ch. 114/89 § 16
* 35. "Starting date for pick up." The first day of the first whole
payroll period commencing after the date which is three months after the
internal revenue service shall have issued a ruling that member
contributions picked up pursuant to section 13-225.1 of this subchapter
are not includible as gross income for federal income tax purposes until
distributed or made available.
* NB Expires per ch. 114/89 § 16
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