1. (a) Subject to the provisions of paragraph (b) of this subdivision, the definitions of terms set forth in paragraphs (d), (e) and (f) of subdivision one of housing police section 13-193 shall apply to this section 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 HPOVSF basis fiscal year related to a payment guarantee (as defined in paragraph (c) of subdivision three of this section):
(i) the term "HPOVSF basis fiscal year related to a payment guarantee" shall be deemed to be substituted for the term "base fiscal year" used in paragraphs (d), (e) and (f) of subdivision one of housing police section 13-193 of this chapter;
(ii) the term "transferable earnings", as used in paragraph (f) of subdivision one of housing police section 13-193 of this chapter, shall be deemed to refer to a cumulative earnings factor (as defined in paragraph (g) 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 set forth in paragraphs five, six, seven and eight of subdivision a of section 13-232 of this title shall apply to this section 13-193.4 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 HPOVSF basis fiscal year related to a payment guarantee (as defined in paragraph (c) of subdivision three of this section):
(a) the term "HPOVSF basis fiscal year related to a payment guarantee" shall be deemed to be substituted for the term "base fiscal year" set forth in paragraphs five, six, seven and eight of subdivision a of section 13-232 of this title;
(b) the words "retirement system" shall be deemed to be substituted for the words "pension fund" or "fund" set forth in subparagraph (a) of paragraph five and in paragraphs seven and eight of subdivision a of section 13-232 of this chapter;
(c) the board referred to in subparagraph b of paragraph eight of subdivision a of section 13-232 of this chapter shall be deemed to mean the board of trustees of the retirement system 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
(d) the term "transferable earnings" set forth in subparagraph (b) of paragraph eight of subdivision a of section 13-232 of this chapter shall be deemed to mean any HPOVSF cumulative earnings factor (as defined in paragraph (h) 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) "HPOVSF basis fiscal year related to a payment guarantee". Any fiscal year of the city commencing on or after July first of the first HPOVSF calendar year covered by a payment guarantee (as defined in paragraph (j) of this subdivision).
(d) "Prior HPOVSF basis fiscal year related to a payment guarantee". Any fiscal year of the city which begins on or after the July first referred to in paragraph (c) of this subdivision and which also precedes a HPOVSF basis fiscal year related to a payment guarantee.
(e) "Earnings differential". The amount (expressed as a positive or negative quantity) by which the equity experience factor (expressed as a positive or negative quantity) with respect to the HPOVSF basis fiscal year related to a payment guarantee (as defined in paragraph (c) of this subdivision) differs from the hypothetical fixed income securities earnings with respect to such HPOVSF basis fiscal year. If such equity experience factor is greater than such hypothetical fixed income securities earnings, the difference between the two shall be expressed as a positive quantity. If such hypothetical fixed income securities earnings are greater than such equity experience factor, the difference between the two shall be expressed as a negative quantity.
(f) "Cumulative earnings factor as of June thirtieth in the first HPOVSF calendar year covered by a payment guarantee".
(i) 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.
(ii) (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 housing 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 calendar year covered by a payment guarantee (as defined in paragraph (j) 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 housing police section 13-193.
(iii) The cumulative distributions of transferable earnings for prior base fiscal years (as defined in paragraph thirteen of subdivision a of section 13-232 of this title) shall be computed pursuant to such section 13-232 and housing police section 13-193 with respect to such base fiscal year next preceding July first of the first HPOVSF calendar year covered by a payment guarantee.
(iv) The amount of transferable earnings (as defined in paragraph (c) of subdivision one of housing 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 transferrable earnings computed pursuant to subparagraph (iii) of this paragraph.
(v) The sum resulting from the addition prescribed by subparagraph (iv) of this paragraph shall be subtracted from the amount computed pursuant to subparagraph (ii) of this paragraph. The remainder resulting from the subtraction shall be the cumulative earnings factor as of June thirtieth in the first HPOVSF calendar year covered by a payment guarantee.
(g) "Cumulative earnings factor".
(i) The cumulative earnings factor for any HPOVSF basis fiscal year related to a payment guarantee (as defined in paragraph (c) of this subdivision) shall be determined as follows:
(A) If the cumulative earnings factor for the immediately preceding HPOVSF basis fiscal year related to a payment guarantee was a positive quantity, the cumulative earnings factor for the HPOVSF basis fiscal year related to a payment guarantee shall be equal to the earnings differential for such HPOVSF basis fiscal year related to a payment guarantee.
(B) If the cumulative earnings factor for the immediately preceding HPOVSF basis fiscal year related to a payment guarantee was a negative quantity, the cumulative earnings factor for the HPOVSF basis fiscal year related to a payment guarantee shall be equal to the sum of:
(1) the earnings differential for the HPOVSF basis fiscal year related to a payment guarantee; and
(2) the cumulative earnings factor for the immediately preceding HPOVSF basis fiscal year related to payment guarantee, increased with interest at a rate equal to the assumed rate of interest (as defined in paragraph eight of subdivision a of section 13-232 of this title, as made applicable to this section by subdivision two of this section) fixed with respect to such HPOVSF basis fiscal year related to a payment guarantee for which a cumulative earnings factor is being determined pursuant to this paragraph.
(ii) In applying the provisions of this paragraph for the first HPOVSF basis fiscal year related to a payment guarantee (as defined in paragraph (c) of this subdivision), the term defined in paragraph (f) of this subdivision as "cumulative earnings factor as of June thirtieth in the first HPOVSF calendar year covered by a payment guarantee" shall be substituted for the term "cumulative earnings factor for the immediately preceding HPOVSF basis fiscal year related to a payment guarantee".
(h) "HPOVSF cumulative earnings factor". With respect to any HPOVSF basis fiscal year related to a payment guarantee (as defined in paragraph (c) of this subdivision), the amount obtained by multiplying the allocation to the housing police variable supplements funds (as defined in paragraph (f) of subdivision one of housing police section 13-193, as made applicable to this section by subdivision one of this section), for such HPOVSF basis fiscal year related to a payment guarantee by a fraction, the numerator of which shall be the total contributions made to the retirement system with respect to such HPOVSF basis fiscal year related to a payment guarantee on behalf of all housing police members who are housing police officers (as defined in subparagraph two of paragraph (f) of subdivision one of housing police officers section 13-191), as of the last day of such HPOVSF basis fiscal year and the denominator of which shall be the total contributions made to the retirement system with respect to such HPOVSF basis fiscal year related to a payment guarantee on behalf of all housing police members who are members of the housing police service as of the last day of such HPOVSF basis fiscal year.
(i) "HPOVSF unfunded accrued liability". In any case where the valuation of assets and liabilities of the housing police officer's variable supplements fund by the actuary pursuant to paragraph (g) of subdivision three of housing police officers section 13-191 shows that for any HPOVSF basis fiscal year related to a payment guarantee, such liabilities exceed such assets, the term "HPOVSF unfunded accrued liability" shall mean the amount of the excess of such liabilities over the amount of such assets for such HPOVSF basis fiscal year.
(j) "HPOVSF calendar year covered by a payment guarantee". The calendar year nineteen hundred ninety-four and any succeeding calendar year.
(k) "Current HPOVSF fiscal year related to a payment guarantee". The fiscal year of the city next succeeding a HPOVSF basis fiscal year related to a payment guarantee (as defined in paragraph (c) of this subdivision).
4. As soon as practicable after the close of each HPOVSF basis fiscal year related to a payment guarantee (as defined in paragraph (c) of subdivision three of this section), but not later than December thirty-first of the current HPOVSF fiscal year related to a payment guarantee (as defined in paragraph (k) of subdivision three of this section), the board of trustees of the retirement system shall compute the HPOVSF cumulative earnings factor (as defined in paragraph (h) of subdivision three of this section) with respect to such HPOVSF basis fiscal year.
5. If the HPOVSF cumulative earnings factor for such HPOVSF basis fiscal year is a positive quantity, the retirement system, on or before December thirty-first of the current HPOVSF fiscal year related to a payment guarantee, shall pay from its contingent reserve fund to the housing police officer's variable supplements fund, as the payment due for such HPOVSF basis fiscal year under this section, an amount determined pursuant to the provisions of subdivision six of this section.
6. The amount payable for such HPOVSF basis fiscal year as provided for in subdivision five of this section shall be the lesser of (a) the HPOVSF cumulative earnings factor for such HPOVSF basis fiscal year referred to in such subdivision five or (b) the HPOVSF unfunded accrued liability (as defined in paragraph (i) of subdivision three of this section) for such HPOVSF basis fiscal year.
7. No amount shall be due from or payable by the retirement system to such variable supplements fund under this section for any HPOVSF basis fiscal year related to a payment guarantee which shall exceed the HPOVSF unfunded accrued liability for such HPOVSF basis fiscal year, regardless of the amount and character of the HPOVSF cumulative earnings factor for such HPOVSF basis fiscal year.
8. 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.