1. (a) Subject to the provisions of paragraph (b) of this subdivision, for the purposes of this section, the definitions of terms set forth in paragraphs (d), (e) and (f) of subdivision one of transit police section 13-193 shall apply to this section 13-193.3 with the same force and effect as if such definitions were specifically set forth in this section.
(b) For the purpose of any determination, calculation or allocation under this section with respect to any TPSOVSF transition fiscal year (as defined in paragraph (d) of subdivision three of this section):
(i) the term "base fiscal year" used in such paragraphs (d), (e) and (f) shall be deemed to refer to a TPSOVSF transition fiscal year;
(ii) the term "transferable earnings", as used in such paragraph (f), shall be deemed to refer to a cumulative earnings factor (as defined in paragraph (i) of subdivision three of this section), whether such factor is a positive or a negative quantity.
2. For the purposes of this section, the definitions of terms set forth in paragraphs four, six, eight, nine and ten of subdivision a of section 13-232 of this title shall apply to this section 13-193.3 with the same force and effect as if such definitions were specifically set forth in this section; provided, however, that for the purpose of any determination, calculation or allocation under this section with respect to any TPSOVSF transition fiscal year (as defined in paragraph (d) of subdivision three of this section):
(a) the term "TPSOVSF transition fiscal year" shall be deemed to be substituted for the term "base fiscal year" set forth in such paragraphs;
(b) the words "retirement system" shall be deemed to be substituted for the words "pension fund" set forth in such paragraph eight and the term "tie vote" shall be deemed to refer to a circumstance where a resolution is not adopted because of the provisions of subparagraph (d) of paragraph five of subdivision b of section 13-103 of this chapter; and
(c) the board referred to in subparagraph (b) of such paragraph eight shall be deemed to mean the board of trustees of the retirement system; and
(d) the term "transferable earnings" set forth in subparagraph (b) of such paragraph eight shall be deemed to mean any TPSOVSF cumulative earnings factor (as defined in paragraph (j) of subdivision three of this section) which is a positive quantity.
3. For the purposes of this section, the following terms shall mean and include:
(c) "TPSOVSF calendar year covered by a payment guarantee". The calendar year in which a guarantee, by a guarantee obligor (as defined in paragraph (f) of subdivision one of transit police superior officers section 13-192 of this title), of payment of variable supplements first takes effect pursuant to paragraph (f) or paragraph (g) of subdivision three of such section, and any succeeding calendar year.
(d) "TPSOVSF transition fiscal year". Any fiscal year of the city which occurs during the period commencing on July first of the first TPOVSF calendar year covered by a payment guarantee (as defined in paragraph (i) of subdivision one of section 13-191 of this chapter) and ending on June thirtieth of the first TPSOVSF calendar year covered by a payment guarantee (as defined in paragraph (h) of subdivision one of section 13-192 of this chapter).
(e) "Prior TPSOVSF transition fiscal year". Any fiscal year of the city which begins on or after the July first referred to in paragraph (d) of this subdivision and which also precedes a TPSOVSF transition fiscal year.
(f) "Cumulative earnings factor as of June thirtieth next preceding the first TPSOVSF transition fiscal year".
(1) An amount, expressed as a positive or negative quantity, as the case may be, which shall be determined in accordance with the method set forth in the succeeding subparagraphs of this paragraph.
(2) (A) Subject to the provisions of item (B) of this subparagraph, the cumulative earnings differential for the base fiscal year (as defined in paragraph eleven of subdivision a of section 13-232 of this title), as made applicable by paragraph (c) of subdivision one of transit police section 13-193 to the base fiscal years defined in paragraph (a) of such subdivision one, shall be computed pursuant to such section 13-193 for the base fiscal year (as so defined by such paragraph (a)) next preceding July first of the first TPSOVSF transition fiscal year (as defined in paragraph (d) of this subdivision).
(B) In the computation of the cumulative earnings differential for such next preceding base fiscal year as provided for in item (A) of this subparagraph, computations for such next preceding base fiscal year and each preceding base fiscal year shall be made in compliance with the applicable provisions of subdivision four of transit police section 13-193.
(3) The cumulative distributions of transferable earnings for prior base fiscal years (as defined in paragraph thirteen of subdivision a of such section 13-232) shall be computed pursuant to such section 13-232 and transit police section 13-193 with respect to such base fiscal year next preceding July first of the first TPSOVSF transition fiscal year.
(4) The amount of transferable earnings (as defined in paragraph (c) of subdivision one of transit police section 13-193), if any, for such base fiscal year next preceding such July first, determined in accordance with the applicable provisions of subdivision four of such section 13-193, shall be added to the cumulative distributions of transferable earnings computed pursuant to subparagraph three of this paragraph.
(5) The sum resulting from the addition prescribed by subparagraph four of this paragraph (f) shall be subtracted from the amount computed pursuant to subparagraph two of this paragraph. The remainder resulting from the subtraction shall be the cumulative earnings factor as of June thirtieth next preceding the first TPSOVSF transition fiscal year.
(g) "Equity experience factor".
(1) An amount (expressed as a positive or negative quantity) which shall be determined for each TPSOVSF transition fiscal year (as defined in paragraph (d) of this subdivision) in accordance with the method of computation set forth in the succeeding subparagraphs of this paragraph (g).
(2) The amount of income earned by the retirement system during the TPSOVSF transition fiscal year from its investment in equities shall be computed.
(3) To each such amount of income for each such TPSOVSF transition fiscal year there shall be added the capital gains, realized and unrealized, occurring during such TPSOVSF transition fiscal year by reason of such investments.
(4) From the sums resulting from the addition prescribed by subparagraph three of this paragraph there shall be subtracted the capital losses, realized or unrealized, occurring during such TPSOVSF transition fiscal year by reason of such investment.
(5) In the event that any equity is sold during any such TPSOVSF transition fiscal year, the expense of such sale, including but not limited to broker's commissions, shall be deducted from capital gain or added to capital loss, in determining whether such sale produced a capital gain or a capital loss and the amount thereof.
(6) The remainder resulting from the subtraction prescribed by subparagraph four of this paragraph shall be adjusted so that it equals the amount which it would have been in the absence of the enactment of chapter five hundred seventy-seven of the laws of nineteen hundred ninety-two.
(7) Any adjustment required to be made pursuant to the provisions of subparagraph six of this paragraph shall be computed pursuant to a scientific method recommended to the board of trustees of the retirement system by the actuary and approved by such board; provided that if such board is unable to approve, by the required vote, any such formula recommended by the actuary, such adjustment shall be computed pursuant to a scientific formula recommended by the actuary and approved by an arbitrator designated pursuant to the procedure set forth in subparagraph (b) of paragraph eight of subdivision a of section 13-232 of this title, as made applicable to this section 13-193.3 by subdivision two thereof. For the purposes of this paragraph, the term "transferable earnings" set forth in such subparagraph (b) shall be deemed to mean a TPSOVSF transition cumulative earnings factor (as defined in paragraph (j) of this subdivision) which is a positive quantity.
(8) The equity experience factor for such TPSOVSF transition fiscal year shall be the amount remaining after the adjustment prescribed by subparagraphs six and seven of this paragraph has been made.
(h) "Hypothetical fixed income securities earnings".
(1) The aggregate of the hypothetical interest yields computed pursuant to subparagraphs two, three and four of this paragraph (h).
(2) The board of trustees of the retirement system shall compute with respect to each investment made or maintained by the retirement system in an equity during the TPSOVSF transition fiscal year (as defined in paragraph (d) of this subdivision), the amount of interest which would have been hypothetically earned during such fiscal year, under the methods of calculation prescribed in this paragraph (h), if an amount equal to such investment had instead been hypothetically invested in fixed income securities and such securities had been held by the retirement system for a period (in the TPSOVSF transition fiscal year) co-extensive with the period during which such equity was held by the retirement system in the TPSOVSF transition fiscal year.
(3) For the purposes of this section, the amount of any such investment in an equity during the TPSOVSF transition fiscal year shall be deemed to be:
(i) the market value of the equity on the first day of the TPSOVSF transition fiscal year, in the case of any such equity acquired by the retirement system prior to the commencement of such fiscal year and held by the retirement system on the first day of such fiscal year; and
(ii) the total amount paid by the retirement system to acquire the equity, including but not limited to broker's commissions and other expenses of such acquisition, in the case of any such equity which is acquired by the retirement system during the TPSOVSF transition fiscal year.
(4) For the purposes of this section, the amount of interest which would have been earned by the retirement system on such hypothetical fixed income securities during the TPSOVSF transition fiscal year shall be deemed to be the amount obtained:
(i) by multiplying the amount of the investment in such equity, determined as prescribed by subparagraph three of this paragraph (h), by the assumed rate of interest for the TPSOVSF transition fiscal year; and
(ii) by prorating the interest so computed, in any case where the investment in such equity was maintained by the retirement system for a part of the TPSOVSF transition fiscal year; and
(iii) by multiplying the amount of interest computed for the full TPSOVSF transition fiscal year pursuant to items (i) and (ii) of this subparagraph by a fraction, the numerator of which is the amount designated as the equity experience factor with respect to such TPSOVSF transition fiscal year by subparagraph eight of paragraph (g) of this subdivision three and the denominator of which is the remainder produced by the subtraction prescribed by subparagraph four of such paragraph (g) with respect to such TPSOVSF transition fiscal year; and
(iv) by adding together the products of all such multiplications performed pursuant to item (iii) of this subparagraph in relation to all such equities held by the retirement system during such fiscal year.
(i) "Cumulative earnings factor".
(1) The cumulative earnings factor for any TPSOVSF transition fiscal year (as defined in paragraph (d) of this subdivision) shall be determined as follows:
(i) If the cumulative earnings factor for the immediately preceding TPSOVSF transition fiscal year was a positive quantity, the cumulative earnings factor for the TPSOVSF transition fiscal year shall be equal to the earnings differential for the TPSOVSF transition fiscal year.
(ii) If the cumulative earnings factor for the immediately preceding TPSOVSF transition fiscal year was a negative quantity, the cumulative earnings factor for the TPSOVSF transition fiscal year shall be equal to the sum of:
(A) the earnings differential for the TPSOVSF transition fiscal year; and
(B) the cumulative earnings factor for the immediately preceding TPSOVSF transition fiscal year.
(2) In applying the provisions of this paragraph (i) for the first TPSOVSF transition fiscal year, the term defined in paragraph (f) of this subdivision as "cumulative earnings factor as of June thirtieth next preceding the first TPSOVSF transition fiscal year" shall be substituted for the term "cumulative earnings factor for the immediately preceding TPSOVSF transition fiscal year."
(j) "TPSOVSF transition cumulative earnings factor". With respect to any TPSOVSF transition fiscal year (as defined in paragraph (d) of this subdivision), the amount obtained by multiplying the allocation to the transit police variable supplements funds (as defined in paragraph (f) of subdivision one of transit police section 13-193 of this chapter, as made applicable to this section 13-193.3 by subdivision one thereof), for such TPSOVSF transition fiscal year by a fraction, the numerator of which shall be the total contributions made to the retirement system with respect to such TPSOVSF transition fiscal year on behalf of all transit police members who are transit police superior officers (as defined in subdivision eighty-four of section 13-101 of this title) as of the last day of such TPSOVSF transition fiscal year, and the denominator of which shall be the total contributions made to the retirement system with respect to such TPSOVSF transition fiscal year on behalf of all transit police members who are members of the uniformed transit police force as of the last day of such TPSOVSF transition fiscal year.
(k) "Current TPSOVSF transition fiscal year". The fiscal year of the city next succeeding a TPSOVSF transition fiscal year (as defined in paragraph (d) of this subdivision).
4. As soon as practicable after the close of each TPSOVSF transition fiscal year (as defined in paragraph (d) of subdivision three of this section), but not later than August thirty-first of the current TPSOVSF transition fiscal year (as defined in paragraph (k) of subdivision three of this section), the board shall compute the TPSOVSF transition cumulative earnings factor (as defined in paragraph (j) of subdivision three of this section) with respect to such TPSOVSF transition fiscal year.
5. If the TPSOVSF transition cumulative earnings factor for the TPSOVSF transition fiscal year is a positive quantity, the retirement system, on or before August thirty-first of the current TPSOVSF transition fiscal year, shall pay from its contingent reserve fund to the transit police superior officers' variable supplements fund a sum equal to the amount of such factor.
6. The comptroller shall furnish to the board of trustees of the retirement system such information and data as it may request for the purpose of carrying out the provisions of this section.