2006 New York Code - Guarantee Of Funds.

 
    § 13-533 Guarantee of funds. a. Regular interest, charges payable, the
  creation  and maintenance of reserves in the contingent reserve fund and
  the   maintenance   of   annuity   reserves,   pension   reserves    and
  reserves-for-increased-take-home-pay as provided for in this chapter and
  the            payment            of            all            pensions,
  pensions-providing-for-increased-take-home-pay,  annuities,   retirement
  allowances,  refunds,  death  benefits,  and  any other benefits granted
  under the provisions of this chapter, are hereby made obligations of the
  city. All income, interest, and  dividends  derived  from  deposits  and
  investments  authorized by this chapter shall be used and disposed of in
  the manner prescribed by subdivision b of this section. Upon  the  basis
  of  each  actuarial  determination  and  appraisal  provided for in this
  chapter, the retirement board pursuant to section one hundred twelve  of
  the  charter  shall prepare and submit to the director of management and
  budget an itemized estimate of the amounts necessary to be  appropriated
  by  the  city  to  the  various  funds  to  complete the payment of such
  obligations accruing during the ensuing  fiscal  year.  There  shall  be
  included  annually  in  the  budget a sum sufficient to provide for such
  obligations of the city. The comptroller shall pay the sum  so  provided
  into  the  various  funds  provided  for by this chapter, subject to the
  provisions of subdivision b of this section.
    b. (1) Subject to the provisions of paragraphs two,  three,  four  and
  five  of  this  subdivision  and subdivision k of section 13-582 of this
  title, all income, interest and  dividends  derived  from  deposits  and
  investments  authorized  by  this  chapter,  which  income, interest and
  dividends were heretofore or are  hereafter  received  during  any  city
  fiscal  year commencing on or after July first, nineteen hundred eighty,
  shall be used (in accordance with the respective shares of such  income,
  interest  and  dividends  attributable  to  the  city and other obligors
  required  to  pay  public   employer   contributions   on   account   of
  contributors) in such fiscal year for the purposes hereinafter specified
  in  this  paragraph  two  (to  the extent that such income, interest and
  dividends are sufficient for such purposes), in the  order  of  priority
  herein stated, as follows:
    (A)  first, to pay into the funds of the retirement system the amounts
  of regular interest which are required to be paid  into  such  funds  in
  such fiscal year by reason of being required to be allowed to such funds
  pursuant to the provisions of section 13-535 of this chapter, and to pay
  into  such funds the amounts of supplementary interest, if any, required
  to be so paid in such fiscal year under  the  applicable  provisions  of
  such  section,  and  to pay into the annuity savings fund the amounts of
  special interest, if any, required to be so paid  in  such  fiscal  year
  under  the  applicable  provisions  of such section, and to pay into the
  contingent reserve fund the amounts  of  additional  interest,  if  any,
  required  to be paid in such fiscal year under the applicable provisions
  of such section;
    (B) second, to pay into the contingent reserve fund the amount of  any
  losses  in  excess  of  gains (i) which net losses the retirement system
  sustained  during  such  fiscal  year  by  reason  of  sales  or   other
  dispositions of securities, and (ii) for which net losses the retirement
  system  is  required  to  be reimbursed in such fiscal year and (iii) to
  which net losses section 13-704 of this  title,  relating  to  graduated
  crediting of gains and amortization of losses on dispositions of certain
  securities, does not apply;
    (C)  third, if the total amount of such income, interest and dividends
  received during such fiscal year  is  in  excess  of  the  total  amount
  required  to  make,  in  such  fiscal  year,  the payments prescribed by
  subparagraphs (A) and (B) of this paragraph, the amount of  such  excess


  shall  be  paid into the contingent reserve fund and shall become a part
  of the assets of such fund.
    (2)   Notwithstanding   the   provisions  of  paragraph  one  of  this
  subdivision or any other law to the contrary, any such income,  interest
  or dividends which are received by the retirement system may be used for
  the  purpose  specified  in  section  13-705  of this title (relating to
  expenses incurred in  the  acquisition,  management  and  protection  of
  investments),  regardless  of  when  received  and  prior to use for the
  purposes stated in such paragraph one.
    (3) (A) Notwithstanding any other provision of  this  section  or  any
  other  law to the contrary, the term "all income, interest and dividends
  derived from deposits and investments", as used in paragraph two of this
  subdivision (as such subdivision was in  effect  prior  to  July  first,
  nineteen hundred eighty), shall be construed, in relation to disposition
  of  all income, interest and dividends received by the retirement system
  in each of the city's  nineteen  hundred  seventy-six--nineteen  hundred
  seventy-seven   and  nineteen  hundred  seventy-seven--nineteen  hundred
  seventy-eight obligations  fiscal  years  (as  such  fiscal  years  were
  defined  by  paragraph one of this subdivision prior to such July first)
  as meaning the remainder  obtained  by  subtracting  from  such  income,
  interest  and  dividends  (as  they  were  after deducting therefrom the
  amount of any expenses charged thereto pursuant  to  the  provisions  of
  section  13-705  of  this  title) the sum of (i) the amounts of regular,
  supplementary and special interest required to be allowed and paid  into
  the  appropriate  funds  of  the  retirement  system in such fiscal year
  pursuant to the applicable provisions of section 13-535 of this  chapter
  and  (ii)  the  amount  of  any  losses in excess of gains (1) which net
  losses were sustained by the retirement system during such  fiscal  year
  and  which  net  losses  were  sustained  by  reason  of  sales or other
  dispositions of securities, and (2) to which net losses  the  provisions
  of section 13-704 of this title do not apply.
    (B) For the purpose of the order of priority governing the disposition
  of  such  remainder in the payment fiscal year with respect to each such
  obligations fiscal year (as  such  disposition  was  prescribed  by  the
  provisions  of  this  subdivision  as in effect during each such payment
  fiscal year) the  provisions  of  subparagraphs  (A)  and  (B)  of  such
  paragraph two shall be deemed to have been inapplicable and the order of
  priority  for  such  disposition  shall  be  first, the use set forth in
  subpargraph (C)  of  such  paragraph,  second,  the  use  set  forth  in
  subparagraph  (D)  of  such  paragraph,  third,  the  use  set  forth in
  subparagraph (E) of such paragraph and fourth,  the  use  set  forth  in
  subparagraph (F) of such paragraph, as such subparagraphs were in effect
  during such payment fiscal year.
    (4)  (a)  All  income,  interest and dividends which were derived from
  deposits and investments authorized  by  this  chapter  and  which  were
  received    during    each    of    the    city's    nineteen    hundred
  seventy-eight--nineteen  hundred  seventy-nine  and   nineteen   hundred
  seventy-nine--nineteen   hundred   eighty   fiscal  years  shall  (after
  deducting therefrom any  amounts  chargeable  thereto  pursuant  to  the
  provisions  of section 13-705 of this title) be used (in accordance with
  the  respective  shares  of  such   income,   interest   and   dividends
  attributable  to  the  city  and other obligators required to pay public
  employer contributions on account of contributors in  each  such  fiscal
  year  for  the  purposes hereinafter stated in this subparagraph (A), in
  the order of priority herein stated, as follows:
    (a) first, (i) to pay into the funds  of  the  retirement  system  the
  amounts  of  regular  interest  which  are required to be paid into such
  funds in such fiscal year wherein such income,  interest  and  dividends


  were  received, which interest is so payable by reason of being required
  to be allowed to  such  funds  in  such  fiscal  year  pursuant  to  the
  provisions  of section 13-535 of this chapter, and (ii) to pay into such
  funds  the  amounts  of supplementary interest required to be so paid in
  such fiscal year under the applicable provisions of  such  section,  and
  (iii)  to  pay  into  the  annuity  savings  fund the amounts of special
  interest required to be so paid in such fiscal year under the applicable
  provisions of such sections, and (iv) to pay into the contingent reserve
  fund the amounts of additional interest required  to  be  paid  in  such
  fiscal year under the applicable provisions of such section;
    (b)  second, to pay into the contingent reserve fund the amount of any
  losses in excess of gains (i) which net losses  were  sustained  by  the
  retirement system during such fiscal year in which such income, interest
  and  dividends  were  received  and  which  net losses were sustained by
  reason of sales or other dispositions of securities, and (ii) for  which
  net  losses  the  retirement system is required to be reimbursed in such
  fiscal year, and (iii) to which net losses section 13-704 of this title,
  relating to graduated crediting of gains and amortization of  losses  on
  dispostions of certain securities, does not apply; and
    (c)  third, to pay into the contigent reserve fund the amount, if any,
  by which, (i) the total losses which  the  retirement  system  sustained
  during  such  fiscal  year  by  reason of sales of securities within the
  meaning  of  such  section  13-704  and  which  the  responsible  public
  employer,  as defined in paragraph four of subdivision a of such section
  13-704, would  otherwise  be  required  to  amortize  pursuant  to  such
  section, exceeds
    (ii)  the  total  of  all gains which were realized during such fiscal
  year by reason of sales of securities within the meaning of such section
  and which would otherwise be required by such section to be credited  in
  favor of the responsible public employer in installments.
    (B)  If  the  total  amount  of  such  income,  interest and dividends
  received during each such fiscal year referred to in subparagraph (A) of
  this paragraph four is in excess of the total amount required  to  make,
  in  the  same fiscal year, the payments prescribed by items (a), (b) and
  (c) of such subparagraph (A), the amount of such excess  shall  be  paid
  into  the  contingent  reserve  fund as of June thirtieth of such fiscal
  year and shall become a part of the assets of such fund as of such date.
    (5) Nothing contained in the preceding paragraphs of this  subdivision
  shall  be  construed  as  applicable  to  income, interest and dividends
  resulting from deposits or investments made under the  variable  annuity
  program of the retirement system.
    (c)  (1)  The comptroller shall make monthly payments, in twelve equal
  installments, with respect to obligations which the city incurs  to  pay
  sums to the retirement system.
    (2) In the city's nineteen hundred eighty--nineteen hundred eighty-one
  fiscal  year  and in each city fiscal year thereafter, the equal monthly
  payments shall be in respect of obligations which accrue in such  fiscal
  year  and shall be made in such fiscal year on or before the last day of
  each month.
    (3) The retirement board  of  the  retirement  system  may  waive  the
  requirements  of  the  foregoing  provisions  of  this  subdivision with
  respect to time of payment to such system, provided that any such waiver
  of time of payment in any instance  shall  not  apply  to  the  time  of
  subsequent payments unless there shall be a subsequent waiver.