1. As used in this section, the following words and phrases shall have the following meanings, unless a different meaning is plainly required by the context:
(a) "Association". The New York city correction officers' benevolent association.
(b) "Variable supplements board". The board of trustees provided for in subdivision three of this section.
(c) "Beneficiary". Any person who receives a retirement allowance by reason of having retired, on or after July first, nineteen hundred ninety-nine for service as a correction officer with immediate payability of a retirement allowance, and with credit for (1) twenty or more years of service, if such correction officer retires as a participant in and pursuant to the provisions of a twenty-year uniformed correction plan (as defined in paragraph (e) of this subdivision), or (2) twenty-five or more years of service, if such correction officer retires as a participant in and pursuant to the provisions of a retirement plan other than a twenty-year uniformed correction plan, provided, however, that nothing contained in this paragraph shall be construed as modifying any eligibility requirement for service retirement in any service retirement plan.
(d) "Variable supplement". Any sum authorized to be paid to a beneficiary pursuant to the provisions of this section.
(e) "Twenty-year uniformed correction plan". A service retirement plan in which any correction officer who has twenty or more years of service is eligible to retire for service at any age with immediate payability of a retirement allowance.
(f) "Correction officer". A member of the uniformed force of the New York city department of correction who is a member of the retirement system (as defined in subdivision one of section 13-101 of this chapter).
(g) "Calendar year not covered by a payment guarantee". Any calendar year beginning on or after January first, two thousand, which year precedes the first calendar year in which a guarantee of payment of variable supplements takes effect pursuant to the provisions of paragraph (f) or paragraph (g) of subdivision three of this section.
(h) "Calendar year covered by a payment guarantee". The calendar year in which a guarantee of payment of variable supplements first takes effect pursuant to paragraph (f) or paragraph (g) of subdivision three of this section, and any succeeding calendar year.
2. (a) There is hereby established a fund, to be known as the correction officers' variable supplements fund. Such fund shall consist of such monies as may be paid thereto from the retirement system pursuant to the provisions of sections 13-195 and 13-195.1 of this chapter and all other monies received by such fund from any other source pursuant to law.
(b) It is hereby declared by the legislature that the correction officers' variable supplements fund shall not be, and shall not be construed to constitute, a pension or retirement system or fund, and that it shall function as a means whereby payments, not constituting a pension or retirement allowance, may be made in accordance with the provisions of this section, to eligible beneficiaries as a supplement to benefits received by them pursuant to this title. The legislature hereby reserves to the state and itself the right and power to amend, modify or repeal any or all of the provisions of this section.
3. (a) The correction officers' variable supplements fund shall be administered by a board of trustees which shall, subject to applicable provisions of law, from time to time establish rules and regulations for the administration and transaction of the business of such fund and for the control and disposition thereof.
(b) Such variable supplements board shall consist of:
(1) The representative of the mayor who is a member of the board of trustees of the retirement system, who shall be entitled to cast one vote. The mayor may, by instrument in writing filed in his office and with the variable supplements board, designate one or more members of his office to act in the place of such representative at meetings of the board, in the event of such representative's absence therefrom.
(2) The comptroller of the city, who shall be entitled to cast one vote. Any deputy comptroller authorized pursuant to subdivision b of section ninety-four of the New York city charter, to act in the place of the comptroller as a member of the board of trustees of the retirement system, may be authorized by the comptroller, in accordance with the provisions of such subdivision, to act in the place of the comptroller as a member of the variable supplements board.
(2-a) The commissioner of finance, who shall be entitled to cast one vote. Such commissioner may, by instrument in writing filed in his or her office and with the variable supplements board, designate one or more members of his or her office to act in his or her place at meetings of such board, in the event of such commissioner's absence therefrom.
(3) One member of the association designated by it, who shall be entitled to cast one and one-half votes. The member so designated shall be an officer of the association. Such designee may at any time, by written authorization filed with the variable supplements board, authorize any other officer of the association to act in his place as a member of the board in the event of such designee's absence from any meeting thereof; provided that the bylaws or constitution of the association provide for the designation of a representative for such purpose.
(4) One representative of the correction captains, designated by the recognized employee organization representing such correction captains for collective bargaining purposes. Such representative shall be entitled to cast one-half vote. Such representative may at any time, by written authorization filed with the variable supplements board, authorize any other officer of such organization to act in his place as a member of the board in the event of such designee's absence from any meeting thereof.
(c) Every act of the variable supplements board shall be by resolution which shall be adopted only by a vote of at least three-fifths of the whole number of votes authorized to be cast by all of the members of such board.
(d) [Repealed.]
(d) The actuary appointed by the board of the retirement system shall be the technical advisor of the variable supplements board.
(d-1) The retirement system shall assign to the variable supplements board such number of clerical and other assistants as may be necessary for the performance of its functions.
(e) (1) As of October thirty-first, two thousand and as of October thirty-first of each succeeding calendar year not covered by a payment guarantee (as defined in paragraph (g) of subdivision one of this section), the actuary referred to in paragraph (d) of this subdivision shall value the assets of the variable supplements fund, subject to the provisions of paragraph (i) of this subdivision, and make an estimate of the total amount of variable supplements which would be payable, pursuant to subdivision four of this section and subparagraph two of this paragraph, to beneficiaries for such calendar year for which such valuation and estimate are made, if such actuary determines that the value of such assets, as of October thirty-first of such calendar year, is equal to or greater than such total amount of variable supplements.
(2) If such actuary determines that the value of such assets, as of October thirty-first of any such calendar year for which a valuation and estimate are required by subparagraph one of this paragraph, is equal to or greater than such estimated total amount of variable supplements which would be payable for such calendar year, then the variable supplements which, upon a favorable determination of the actuary under this paragraph, are declared by subdivision four of this section to be payable to beneficiaries for such calendar year or a part thereof shall be paid by the variable supplements fund, in the applicable amounts prescribed by such subdivision four, to beneficiaries on or about December fifteenth of such calendar year.
(3) If such actuary determines that the value of such assets, as of October thirty-first of any such calendar year for which a valuation and estimate are required by subparagraph one of this paragraph, is less than such estimated total amount of variable supplements which would be payable for such calendar year pursuant to a favorable determination of the actuary, then no beneficiary shall be entitled to receive any variable supplement for such calendar year or any part thereof and no variable supplement shall be paid to any beneficiary for such calendar year or any part thereof.
(4) In any case where, pursuant to the provisions of subparagraphs one and three of this paragraph, no variable supplements are payable for a calendar year or part thereof to any beneficiary, no variable supplements for such calendar year or part thereof shall at any time thereafter be payable and no beneficiary shall at any time thereafter be entitled to receive a variable supplement for such calendar year or part thereof.
(f) (1) As of October thirty-first, two thousand and as of October thirty-first of each succeeding calendar year up to and including the earlier of (i) the first calendar year covered by a payment guarantee (as defined in paragraph (h) of subdivision one of this section) or (ii) the calendar year two thousand eighteen, the actuary referred to in paragraph (d) of this subdivision shall value the assets of the variable supplements fund, subject to the provisions of paragraph (i) of this subdivision, and shall estimate the present value, as of such October thirty-first, of all variable supplements which the variable supplements fund, under the provisions of subdivision four of this section, would be obligated to pay to beneficiaries with the respect to the calendar year in which such October thirty-first occurs and all succeeding calendar years up to and including the calendar year two thousand eighteen, if it were assumed that such variable supplements were payable with respect to all such calendar years occurring during the period beginning with the calendar year in which such October thirty-first occurs and extending to and including the calendar year two thousand eighteen.
(2) If the value of such assets as of any such October thirty-first is equal to or greater than such estimated present value of variable supplements as of such October thirty-first:
(i) variable supplements, as provided for in subdivision four of this section, shall be paid to beneficiaries for the calendar year in which such October thirty-first occurs and for each subsequent calendar year; and
(ii) paragraph (e) of this subdivision shall be inapplicable with respect to entitlement of beneficiaries to variable supplements for the calendar years referred to in item (i) of this subparagraph; and
(iii) payment of all variable supplements payable for the calendar years referred to in item (i) of this subparagraph is hereby made an obligation of the city and the city hereby guarantees that such variable supplements shall be paid to all beneficiaries for such calendar years.
(g) If a guarantee of payment of variable supplements, pursuant to paragraph (f) of this subdivision does not take effect prior to the calendar year two thousand nineteen, variable supplements, as provided for in subdivision four of this section, shall be paid pursuant to such subdivision four for the calendar year two thousand nineteen and each subsequent calendar year. Such payment is hereby made an obligation of the city and the city hereby guarantees that such variable supplements shall be paid to all beneficiaries for such calendar years.
(h) (1) Subject to the provisions of paragraph (i) of this subdivision, as of June thirtieth next succeeding the first calendar year covered by a payment guarantee (as defined in paragraph (h) of subdivision one of this section) and as of each succeeding June thirtieth, the actuary referred to in paragraph (d) of this subdivision shall make a valuation of the assets and liabilities of the variable supplements fund in accordance with the requirements of the succeeding subparagraphs of this paragraph. For the purposes of paragraph (g) of subdivision three of section 13-195.1 of this chapter, such valuation as of any such June thirtieth shall be the valuation for the basis fiscal year related to a payment guarantee (as defined in paragraph (a) of subdivision three of such section 13-195.1) in which such June thirtieth occurs.
(2) The actuary shall base such annual valuation of liabilities only (i) upon the persons who, as of each such June thirtieth, are beneficiaries and (ii) upon the persons who, being correction officers in service as of such June thirtieth, may be actuarially expected to retire thereafter as correction officers for service with the number of years of service required to become beneficiaries (as defined in paragraph (c) of subdivision one of this section).
(3) The liabilities determined in such valuation shall be equal to the actuarial present value of accumulated plan benefits. The actuarial assumptions used by the actuary in making such annual valuation of liabilities, including assumptions as to interest rate, mortality of beneficiaries and number of correction officers in service as of June thirtieth who will retire as correction officers for service with the number of years of service required to become beneficiaries (as defined in paragraph (c) of subdivision one of this section), shall be adopted by the variable supplements board on the recommendation of the actuary.
(i) For the purposes of the valuation of the assets of the variable supplements fund pursuant to paragraphs (e), (f) and (h) of this subdivision, such assets shall be valued at their fair market value as of the applicable date with respect to which such assets are required to be valued under the applicable provisions of such paragraphs.
(j) Whenever variable supplements are payable to beneficiaries of the correction officers' variable supplements fund pursuant to the provisions of this section, such payment, except as provided in paragraphs (f) and (g) of this subdivision, shall not be an obligation of the city and the city, except as provided for in such paragraphs (f) and (g), shall not guarantee such payment.
4. (a) The variable supplements fund shall pay variable supplements to beneficiaries in accordance with the succeeding paragraphs of this subdivision.
(b) No variable supplements shall be payable to any beneficiary for any calendar year or part thereof preceding January first, two thousand.
(c) For calendar years succeeding December thirty-first, nineteen hundred ninety-nine, the variable supplements fund, subject to the provisions of paragraphs (e), (f) and (g) of subdivision three of this section, and provided any applicable conditions precedent to payability as prescribed by such provisions are satisfied, and subject to the provisions of paragraph (e) of this subdivision, shall pay to each beneficiary, who retired on or after July first, nineteen hundred ninety-nine and prior to January first, two thousand, variable supplements payments as follows:
(1) for each calendar year following calendar year nineteen hundred ninety-nine, but not including the calendar year of beneficiary's death, a single annual payment to be paid on or about December fifteenth of such year, as follows:
CALENDAR YEAR | SUPPLEMENT |
2000 | $8,500 |
2001 | $9,000 |
2002 | $9,500 |
2003 | $10,000 |
2004 | $10,500 |
2005 | $11,000 |
2006 | $11,500 |
2007 | $12,000 |
2008 | $12,000 |
2009 | $12,000 |
2010 | $12,000 |
2011 | $12,000 |
2012 | $12,000 |
2013 | $12,000 |
2014 | $12,000 |
2015 | $12,000 |
2016 | $12,000 |
2017 | $12,000 |
2018 | $12,000 |
2019 and each calendar year thereafter | $12,000 |
(2) for the calendar year of the beneficiary's death (for those beneficiaries who die on or after February first, two thousand), an amount calculated by multiplying one-twelfth times the supplement applicable to the year of death, as provided in the chart set forth in subparagraph one of this paragraph, by the number of full calendar months the beneficiary lived during that calendar year prior to the month of his or her death.
(d) For calendar years succeeding December thirty-first, nineteen hundred ninety-nine, the variable supplements fund, subject to the provisions of paragraphs (e), (f) and (g) of subdivision three of this section and provided any applicable conditions precedent to payability under such provisions are satisfied, and subject to the provisions of paragraph (e) of this subdivision, shall pay to each person who retired for service on or after January first, two thousand so as to become a beneficiary, variable supplements payments as follows:
(1) for the calendar year of retirement, an amount calculated by multiplying one-twelfth times the supplement applicable to the year of retirement, as provided for in the chart set forth in subparagraph one of paragraph (c) of this subdivision, by the number of calendar months elapsing from and including the month next following the month of retirement to the end of such calendar year of retirement, such payment to be made on or about December fifteenth of such year;
(2) for each calendar year following the year of retirement, but not including the calendar year of the beneficiary's death, a single annual payment equal to the supplement provided for with respect to each such calendar year as set forth in the chart in subparagraph one of paragraph (c) of this subdivision, which payment shall be made on or about December fifteenth of such year;
(3) for the calendar year of the beneficiary's death (for those beneficiaries who die on or after February first, two thousand), an amount calculated by multiplying one-twelfth times the supplement applicable to the year of death, as provided for in the chart set forth in subparagraph one of paragraph (c) of this subdivision, by the number of full calendar months the beneficiary lived during that calendar year prior to the month of his or her death; and
(4) if the retirement and death of a beneficiary occur in the same calendar year, aggregate payments under subparagraphs one and three of this paragraph shall be made only in respect to calendar months following the month of retirement and preceding the month of death.
(e) (1) (i) Subject to the provisions of items (ii) and (iii) of this subparagraph, on or after January first, two thousand, where a beneficiary is entitled to receive variable supplements payments pursuant to paragraph (c) or (d) of this subdivision, and that beneficiary is also entitled to receive a supplemental retirement allowance or cost-of-living adjustment pursuant to any other provision of law enacted on or after the effective date of the chapter which amended this subdivision (hereinafter referred to as "other supplemental retirement allowance"), the amount of such variable supplement payable for a calendar year or a part of such calendar year to such beneficiary shall be reduced by the amount of such other supplemental retirement allowance that is payable to such beneficiary to the extent that such other supplemental retirement allowance is attributable to the same calendar year or part of such calendar year.
(ii) For any beneficiary referred to in paragraph (c) or (d) of this subdivision, whose variable supplements payments are being reduced pursuant to item (i) of this subparagraph because such other supplemental retirement allowance is also payable to that beneficiary, the reduction provided for in such item (i) shall cease as to such beneficiary on the later of (A) the first day of the month next following the month in which such beneficiary attains age sixty-two; or (B) January first, two thousand seven.
(iii) In any case where the reduction of variable supplements payments to a beneficiary has ceased pursuant to item (ii) of this subparagraph, that beneficiary, for the purpose of determining his or her eligibility for and the amount of any other supplemental retirement allowance, shall be deemed to have retired on the date of the cessation of such reduction specified in the applicable provisions of such item (ii).
(2) The legislature hereby declares that the variable supplements authorized by this section and the granting and receipt thereof:
(i) shall not create or constitute membership in a pension or retirement system and shall not create or constitute a contract with any beneficiary or with any correction officer; and
(ii) shall not constitute a pension or retirement allowance or benefit under the retirement system or otherwise.
(3) Except as otherwise provided in subdivision eleven of this section and in sections 13-195 and 13-195.1 of this chapter, nothing contained in this section shall create or impose any obligation on the part of the retirement system, or the funds or monies thereof, or authorize such funds or monies to be appropriated or used for any payment under this section or for any purpose thereof.
(f) Beneficiaries shall be eligible to receive variable supplements pursuant to this section, notwithstanding any other provision of law to the contrary.
(g) The monies or assets of the variable supplements fund shall not be used for any purpose, other than payment of variable supplements pursuant to the provisions of this section, except that they may be invested as authorized by subdivision six of this section.
5. The correction officers' variable supplements fund shall have the powers and privileges of a corporation and by its name all of its business shall be transacted, all of its funds invested, all warrants for money drawn and payments made, and all of its cash and securities and other property held.
6. (a) The members of the variable supplements board shall be the trustees of the monies received by or belonging to the correction officers' variable supplements fund pursuant to this section and, subject to the provisions of paragraph (b) of this subdivision, shall have full power to invest same, subject to the terms, conditions, limitations and restrictions imposed by law upon savings banks in the making and disposing of investments by savings banks; and subject to like terms, conditions, limitations and restrictions, such trustees shall have full power to hold, purchase, sell, assign, transfer or dispose of any of the securities or investments in which any of such monies shall have been invested as well as of the proceeds of such investments and of any monies belonging to such fund.
(b) The members of the variable supplements board shall have the same investment powers and power to delegate such powers as are vested by the code and the retirement and social security law in the members of the board of trustees of the retirement system.
7. The variable supplements board shall publish annually in the City Record a report for the preceding year showing the assets of the correction officers' variable supplements fund and a statement as to the accumulated cash and securities of such fund as certified by the comptroller, and shall set forth in such report such other facts, recommendations and data as the board may deem pertinent.
8. The comptroller shall be custodian of the monies and assets of the correction officers' variable supplements fund. All such monies and assets included in such fund or which shall hereafter accrue to such fund shall be in his custody for the purposes of this section subject to the direction, control and approval of such board as to disposition, investment, management and report. All payments from such fund shall be made by the comptroller upon a voucher signed by the secretary of the variable supplements board.
9. Except as provided in this section, the trustees and employees assigned to the variable supplements board are prohibited from having any interest, directly or indirectly, in the gains or profits of any investment of the correction officers' variable supplements fund or as such, directly or indirectly, from receiving any pay or emolument for their services. The trustees and such employees, directly or indirectly, for themselves or as agents or partners of others, shall not borrow any of its funds or deposits or in any manner use the same except to make such current and necessary payments as are authorized by such board.
10. The superintendent of insurance may examine the affairs of the correction officers' variable supplements fund with the same powers and jurisdiction as are applicable in the case of an examination of a life insurance company by the superintendent under article three of the insurance law. The correction officers' variable supplements fund shall be subject to assessment for expenses pursuant to the provisions of section three hundred thirteen of the insurance law, but shall not be subject to assessment for expenses under any of the provisions of section three hundred thirty-two of the insurance law.
11. In the event that, for any calendar year covered by a payment guarantee, the assets of the variable supplements fund are not sufficient to pay benefits under this section for such year, an amount sufficient to pay such benefits shall be appropriated from the contingent reserve fund of the retirement system and transferred to the correction officers' variable supplements fund.