a. (1) The retirement system shall be administered by a board of trustees which shall, subject to the provisions of law, from time to time establish rules and regulations for the administration and transaction of the business of such system and to carry out the provisions of law in relation thereto. The provisions of sections one thousand forty-two, one thousand forty-three, one thousand forty-four and one thousand forty-five of the charter shall not be construed to apply to the adoption of such rules and regulations.
(2) An executive director of the retirement system shall be appointed by the board. The executive director shall perform such duties as may be conferred upon him or her by the board or by law and shall have the powers of the head of a department in respect to the retirement system and the officers and employees thereof.
b. Such board of trustees shall consist of:
1. A representative of the mayor who shall be appointed by the mayor and who shall be entitled to cast one vote. The mayor, by a written authorization filed with the board, may designate one or more members of his or her office to act in the place of such representative, in the event of his or her absence. Such representative or designee acting in his or her place shall be chairperson of the board.
2. The public advocate, who shall be entitled to cast one vote. The public advocate may, by written authorization filed with the board, designate one or more officers or employees appointed by him or her to act in his or her place as a member of such board, in the event of the absence of such public advocate.
3. The comptroller of the city, who shall be entitled to cast one vote.
4. The president of each borough. Each such president shall be entitled to cast a one-fifth vote. Each such president may, by written authorization filed with the board, designate his or her deputy borough president, or executive assistant to the borough president, or counsel to the borough president to act in his or her place as a member of such board.
5. (a) Three employee representatives, who shall each be entitled to cast one vote. The chief executive officer of each of the three employee organizations designated as herein provided shall be one of such representatives.
(b) On or before July first of the year in which this subparagraph shall take effect, the director of labor relations of the city (or other officer performing the same or similar functions under another title) shall, by instrument in writing filed in his or her office and with the board, designate the three employee organizations which represent, for the purposes of collective bargaining on pension matters, the largest number of employees who are members of the retirement system. Such designation shall be reviewed annually by such director or other officer, and if such review discloses a change in the standing of the employee organizations concerned, such designation shall thereupon be revised by him or her to specify the three such organizations having the leading representational status as hereinabove prescribed.
(c) Any such employee representative may, by written authorization filed with the board, designate one or more persons to act in the place of such member on such board in the event of the absence of such member, provided, however, that the by-laws or constitution of the organization of which he or she is chief executive officer authorize such designation.
(d) Each act of such board shall be by a resolution adopted by at least three and three-fifths votes. The concurrence of one employee representative and one non-employee representative member or members entitled to one vote shall be necessary for an act of such board. A quorum of such board shall consist of members entitled to cast at least three and three-fifths votes.
c. (1) In addition to the powers conferred upon it by any other provision of law, the board of trustees shall, on or before April first of each year, establish a budget, subject to the provisions of paragraphs two, three, four and five of this subdivision and subdivisions d, e, f and g of this section, sufficient to fulfill the powers, duties and responsibilities set forth in this chapter and any other provision of law which sets forth the benefits of members of the retirement system and may draw upon the assets of the retirement system to fund such budget. The provisions of this section shall not be applicable to the payment of investment expenses pursuant to section 13-705 of the code and nothing contained herein shall be construed as amending, modifying or affecting any power of the board of trustees to provide for the payment of investment expenses pursuant to section 13-705 of the code.
(2) If a budget has not been adopted by the commencement of the new fiscal year, the budget for the preceding fiscal year shall be deemed to have been extended for the new fiscal year until such time as a new budget is adopted.
(3) Any budget in effect pursuant to paragraphs one or two of this subdivision c shall be modifiable during such succeeding fiscal year.
(4) Notwithstanding any other provision of law, the board of trustees shall have the power either directly or by delegation to the executive director, to obtain by employment or by contract the goods, property and services necessary to fulfill its powers, duties and responsibilities within the appropriation authorized by the board of trustees pursuant to paragraph one of this subdivision.
(5) The provisions of chapter seventeen of the charter shall continue to apply to the retirement system and the retirement system shall constitute an agency for the purposes of such chapter seventeen. The board of trustees shall not obtain any legal services by the retention of employees or by contract unless the corporation counsel shall consent thereto.
(6) All contracts for goods or services entered into by the retirement system shall be procured as prescribed in chapter thirteen of the charter; provided, however, that where the provisions of such chapter thirteen require action by the mayor in regard to a particular procurement (except for mayoral action pursuant to subdivision c of section three hundred thirty-four of the charter) such action shall not be taken by the mayor or such appointee of the mayor but shall be taken by the board of trustees or the executive director pursuant to a resolution adopted by the board of trustees delegating such authority to the executive director.
d. Notwithstanding any other provisions of this section, any resolution of the board of trustees which establishes a budget or modifies a budget pursuant to the provisions of paragraphs one or three of subdivision c of this section shall require the concurrence of the representative of the mayor or the comptroller. No assets of the retirement system shall be drawn upon pursuant to the provisions of paragraph one of subdivision c unless authorized by a budget or budget modification established by a resolution of the board of trustees.
e. Employment by the retirement system shall constitute city-service for the purposes of this chapter; provided, however, that nothing continued herein shall be construed as granting membership rights in the retirement system to a contractor of the retirement system or such contractor's employees. Employees of the retirement system shall be deemed to be employees of the city of New York for the purposes of chapter thirty-five of the charter and title twelve of the code.
f. Whenever the assets of the retirement system are drawn upon pursuant to the provisions of paragraph one of subdivision c of this section, all monies so withdrawn shall be made a charge to be paid by each participating employer otherwise required to make contributions to the retirement system no later than the end of the fiscal year next succeeding the time period during which such assets were drawn upon, provided, however, that where such charge is for assets so withdrawn in fiscal year two thousand four-two thousand five or in any fiscal year thereafter, such charge shall be paid by each such participating employer no later than the end of the second fiscal year succeeding the time period during which such assets were drawn upon. The actuary shall calculate and allocate to each such participating employer its share of such charge by multiplying such charge by a fraction, the numerator of which shall consist of the total salaries of the employees of each participating employer as of the June thirtieth succeeding the withdrawal of assets and the denominator of which shall consist of the total salaries of members of the retirement system as of such June thirtieth. All charges to be paid pursuant to this subdivision shall be paid at the regular rate of interest utilized by the actuary in determining employer contributions to the retirement system pursuant to the provisions of paragraph two of subdivision b of section 13-638.2 of the code.
g. All expenditures of the retirement system shall be subject to audit by the comptroller, who may make recommendations, including but not limited to, procedures designed to improve accounting and expenditure control. All expenditures of the retirement system shall be reported to the mayor's office of management and budget and the budgetary office of all participating employers.