The following words and phrases as used in this subchapter unless a different meaning is plainly required by the context, shall have the following meanings:
1. "Pension fund" shall mean the police pension fund provided for in this subchapter.
2. "Medical board" shall mean the board of physicians provided for in section 13-223 of this subchapter.
3. "City service" shall mean service in the police force in the department and shall include service credit acquired by transfer pursuant to section forty-three of the retirement and social security law or by transfer, from another pension or retirement system, of funds actuarily determined in a manner similar to that provided by such section of the retirement and social security law. In any case where a member, after becoming eligible to retire for service, is appointed police commissioner or deputy police commissioner, and in any case where a person who retired for service as a member of the pension fund is thereafter appointed police commissioner or deputy police commissioner, his or her service as police commissioner or deputy police commissioner shall constitute city service.
4. "Member" shall mean any person included in the membership of the pension fund as provided in section 13-215 of this subchapter.
5. "Beneficiary" shall mean any person in receipt of a pension, an annuity, a retirement allowance, a dependent benefit, a death benefit or any other benefit provided by this subchapter.
6. "Final compensation" shall mean the average annual compensation earnable by a member for city-service during his or her last five years of city-service, or during any other five consecutive years of city-service since he or she last became a member which such member shall designate.
7. "Accumulated deductions" shall mean the sum of all the amounts, deducted from the compensation of a member or contributed by him or her, standing to the credit of his or her individual account in the annuity savings fund together with regular interest and special interest, if any, thereon.
8. (a) Except as otherwise provided in paragraphs (b), (c), (d), (e) and (g) of this subdivision, "regular interest", in the cases of persons who are members on the thirtieth day of June, nineteen hundred forty-seven, shall mean interest at four per centum per annum, compounded annually, and in the cases of persons becoming members thereafter, shall mean interest at three per centum per annum, compounded annually to and including the thirtieth day of June, nineteen hundred sixty-five, and interest at four per centum per annum, compounded annually, from and after the first day of July, nineteen hundred sixty-five, except that (i) as to the annuity savings fund and reserve-for-increased-take-home-pay of persons becoming members after June thirtieth, nineteen hundred forty-seven, the term "regular interest", for the period from July first, nineteen hundred sixty-five through December thirty-first, nineteen hundred sixty-seven, shall mean three per centum per annum compounded annually, and (ii) in the cases of persons becoming members after June thirtieth, nineteen hundred forty-seven, whose city-service has been or shall be terminated by death, retirement, resignation, dismissal, or otherwise on or before June thirtieth, nineteen hundred sixty-seven, the term "regular interest" shall mean interest at three per centum per annum, compounded annually, to and including the date of such termination.
(b) The provisions of paragraph (a) of this subdivision shall not apply to any actuarial valuation, determination or appraisal which is made pursuant to this chapter and which is used to determine the amount of any contribution required to be paid by the city or other public employer into the contingent reserve fund of the pension fund in the nineteen hundred seventy-seven-nineteen hundred seventy-eight fiscal year of the city or any subsequent fiscal year thereof.
(c) (i) Subject to the provisions of subparagraph (ii) of paragraph (f) of this subdivision, for the purpose of any actuarial valuation, determination or appraisal which is made pursuant to this chapter and which is used to determine the amount of any contribution required to be paid, by the city or other public employer into the contingent reserve fund of the pension fund in the nineteen hundred seventy-seven-nineteen hundred seventy-eight fiscal year of the city and in each succeeding fiscal year thereof to and including the nineteen hundred seventy-nine-nineteen hundred eighty fiscal year thereof, "regular interest" shall mean interest at five and one-half per centum per annum, compounded annually.
(ii) Subject to the provisions of subparagraph (ii) of paragraph (f) of this subdivision, and except as otherwise provided in paragraphs (1) and (4) of subdivision b of section 13-228 of this subchapter with respect to determination of the amount of the balance sheet liability as of June thirtieth, nineteen hundred eighty and balance sheet liability contributions, for the purpose of any actuarial valuation, determination or appraisal which is made pursuant to this chapter and which is used to determine the amount of any contribution required to be paid by the city or other public employer into the contingent reserve fund of the pension fund in the nineteen hundred eighty-nineteen hundred eighty-one fiscal year of the city and in each succeeding fiscal year thereof to and including the nineteen hundred eighty-one-nineteen hundred eighty-two fiscal year thereof, "regular interest" shall mean interest at the rate of seven and one-half per centum per annum, compounded annually.
(iii) Subject to the provisions of subparagraph (ii) of paragraph (f) of this subdivision, and except as otherwise provided in paragraphs (1)and (4) of subdivision b of section 13-228 of this subchapter with respect to determination of the amount of the balance sheet liability as of June thirtieth, nineteen hundred eighty and balance sheet liability contributions, for the purpose of any actuarial valuation, determination or appraisal which is made pursuant to this subchapter and which is used to determine the amount of any contribution required to be paid by the city (or other obligors required to pay public employer contributions on account of members) into the contingent reserve fund of the pension fund in the nineteen hundred eighty-two-nineteen hundred eighty-three fiscal year of the city and in each succeeding fiscal year thereof to and including the nineteen hundred eighty-seven-nineteen hundred eighty-eight fiscal year thereof, "regular interest" shall mean interest at the rate of eight per centum per annum, compounded annually.
(iv) Subject to the provisions of subparagraph (ii) of paragraph (f) of this subdivision, and except as otherwise provided in paragraphs (1) and (4) of subdivision b of section 13-228 of this subchapter with respect to determination of the amount of the balance sheet liability as of June thirtieth, nineteen hundred eighty and balance sheet liability contributions, for the purpose of any actuarial valuation, determination or appraisal which is made pursuant to this subchapter and which is used to determine the amount of any contribution required to be paid by the city (or other obligors required to pay public employer contributions on account of members) into the contingent reserve fund of the pension fund in the nineteen hundred eighty-eight-nineteen hundred eighty-nine fiscal year of the city and the nineteen hundred eighty-nine-nineteen hundred ninety fiscal year thereof, "regular interest" shall mean interest at the rate of eight and one-quarter per centum per annum, compounded annually.
(d) Subject to the provisions of subparagraph (ii) of paragraph (f) of this subdivision, and except as otherwise provided in paragraphs (1) and (4) of subdivision b of section 13-228 of this subchapter with respect to determination of the amount of the balance sheet liability as of June thirtieth, nineteen hundred eighty and balance sheet liability contributions, for the purpose of any actuarial valuation, determination or appraisal which is made pursuant to this subchapter and which is used to determine the amount of any contribution required to be paid by the city or other public employer into the contingent reserve fund of the pension fund in the city's nineteen hundred ninety-nineteen hundred ninety-one fiscal year and in any subsequent fiscal year thereof, "regular interest" shall mean interest at such rate per annum, compounded annually, as shall be prescribed by the legislature in section 13-638.2 of this title.
(e) On or after May first, nineteen hundred eighty-nine and not later than October thirty-first of such year, the board shall submit to the governor, the temporary president and minority leader of the senate, the speaker of the assembly, the majority and minority leaders of the assembly, the state superintendent of insurance, the chairperson of the permanent commission on public employee pension and retirement systems, the mayor of the city and the members of the board of estimate and city council thereof, the written recommendations of the board as to the rate of interest and effective period thereof which should be established by law as "regular interest" for the purpose specified in paragraph (d) of this subdivision.
(f) (i) Subject to the provisions of subparagraph (c) of paragraph two of subdivision b of section 13-228 of this subchapter, nothing contained in paragraphs (b), (c), (d) and (e) of this subdivision shall be construed as prescribing for the purpose of crediting interest to individual accounts in the annuity savings fund or to reserves-for-increased-take-home-pay or for any other purpose besides that specified in such paragraphs, a rate of regular interest other than as prescribed in paragraph (a) or paragraph (g) of this subdivision.
(ii) Subject to the provisions of section 13-638.2 of this title, nothing contained in paragraphs (c) and (d) of this subdivision shall be construed as requiring the original unfunded accrued liability contribution, as defined in subparagraph (a) of paragraph (3) of subdivision b of section 13-228 of this subchapter, and the revised unfunded accrued liability contribution, as defined in subparagraph (b) of such paragraph (3), and the nineteen hundred eighty unfunded accrued liability adjustment, as defined in subparagraph (c) of such paragraph (3), and the nineteen hundred eighty-two unfunded accrued liability adjustment, as defined in subparagraph (d) of such paragraph (3) to be determined in any manner other than as prescribed in such subparagraphs. Subject to the provisions of section 13-638.2 of this title, nothing contained in paragraphs (c) and (d) of this subdivision shall be construed as requiring any balance sheet liability or balance sheet liability contribution computed pursuant to the provisions of paragraph (4) of subdivision b of such section 13-228 of this subchapter to be determined in any manner other than as prescribed in such paragraph (4).
(g) (i) Commencing on August first, nineteen hundred eighty-three, and continuing thereafter, "regular interest", in the cases of persons who were members on July thirty-first, nineteen hundred eighty-three or who thereafter became or become members, shall mean, subject to the provisions of subparagraph (ii) to (x), inclusive, of this paragraph (g), interest at seven per centum per annum, compounded annually.
(ii) (A) (1) Subject to the provisions of sub-items (2) and (3) of this item (A), regular interest at the rate of seven per centum per annum, compounded annually, shall be used as the actuarial interest assumption for determining any actuarial equivalent benefit payable to or on account of any seven percent member for actuarial equivalent benefit purposes.
(2) Where an actuarial equivalent benefit is required by board resolution to be determined for any seven percent member for actuarial equivalent benefit purposes through the use of the modified Option 1 pension computation formula (as defined in subdivision twenty-eight of this section), the actuarial interest assumptions used in making such determination shall be as prescribed in such formula.
(3) Where it is provided by board resolution that a portion of an actuarial equivalent benefit shall be determined for any such seven percent member on the basis of gender-neutral mortality tables, and that the remainder of such benefit shall be determined on the basis of mortality tables which are not gender-neutral, regular interest at the rate of seven per centum per annum, compounded annually, shall be used as the actuarial interest assumption for determining the portion of such benefit required by such resolution to be determined on the basis of gender-neutral mortality tables and such rate of regular interest shall not apply to the determination of the remainder of such benefit.
(B) Notwithstanding that the process of determining whether a member is a seven percent member for actuarial equivalent benefit purposes may include, for the purpose of ascertaining the highest applicable benefit, alternative hypothetical benefit calculations utilizing a rate of regular interest other than such rate of seven per centum, nothing contained in subparagraph (i) of this paragraph (g) or in item (A) of this subparagraph (ii) shall be construed as requiring that in the determination of any actuarial equivalent benefit payable to or on account of any member who is not a seven percent member for actuarial equivalent benefit purposes, any rate of interest be used as the actuarial interest assumption other than regular interest, compounded annually, as prescribed by the applicable provisions of paragraph (a) of this subdivision.
(iii) The provisions of item (A) of subparagraph (ii) of this paragraph (g) shall not apply to any person who, prior to August first, nineteen hundred eighty-three, retired as a member of the pension fund for service or superannuation or for ordinary or accident disability and was such a retiree immediately prior to such August first, provided however, that if any such retiree returned or returns to city-service and, on or after July thirty-first, nineteen hundred eighty-three, was or is restored to membership in the pension fund as required or permitted by law, the provisions of such item (A), from and after the date of such restoration to membership, shall apply to such restored member with respect to determination of any actuarial equivalent benefit which is both (A) a benefit to which he or she became or becomes entitled upon his or her subsequent retirement or subsequent discontinuance of service so as to qualify for benefits, and (B) a benefit which is not a continuation, without change, of a benefit which had previously become payable to him or her by reason of his or her prior retirement; provided further that nothing contained in the preceding provisions of this subparagraph shall be construed as making the provisions of item (A) of such subparagraph (ii) applicable to any such restored member who was not or is not a seven percent member for actuarial equivalent benefit purposes at the time for such subsequent retirement or subsequent discontinuance of service.
(iv) (A) Subject to the provisions of items (B) and (C) of this subparagraph (iv), the provisions of item (A) of subparagraph (ii) of this paragraph (g) shall not apply to any member who, (1) prior to August first, nineteen hundred eighty-three, discontinued service under such circumstances that such member became a discontinued member, and (2) was such a discontinued member immediately prior to such August first.
(B) If such a discontinued member returned or returns to city-service and on or after July thirty-first, nineteen hundred eighty-three and before payability of his or her retirement allowance as such member began or begins, again becomes an active member pursuant to the applicable provisions of section 13-256 of this subchapter, the provisions of item (A) of such subparagraph (ii) shall apply to him or her on and after the date of such resumption of active membership; provided that nothing contained in the preceding provisions of this item (B) shall be construed as making the provisions of item (A) of such subparagraph (ii) applicable to any such member who was not or is not a seven percent member for actuarial equivalent benefit purposes at the time of subsequent retirement or subsequent discontinuance of service so as to qualify for benefits.
(C) If a discontinued member referred to in item (A) of this subparagraph (iv) returned or returns to city-service and on or after July thirty-first, nineteen hundred eighty-three and on or after the date on which payability of his or her retirement allowance as such member began or begins, again became or becomes an active member pursuant to the applicable provisions of section 13-256 of the code, the provisions of item (A) of such subparagraph (ii), on and after the date of such resumption of active membership, shall apply to him or her with respect to determination of any actuarial equivalent benefit which is both (1) a benefit to which he or she became or becomes entitled upon his or her subsequent retirement or subsequent discontinuance of service so as to qualify for benefits, and (2) a benefit which is not a continuation, without change, of a benefit which had previously become payable to him or her by reason of his or her prior discontinuance of service; provided that nothing contained in the preceding provisions of this item (C) shall be construed as making item (A) of such subparagraph (ii) applicable to any such member who was not or is not a seven percent member for actuarial equivalent benefit purposes at such time of subsequent retirement or subsequent discontinuance of service.
(v) (A) Subject to the provisions of item (B) of this subparagraph (v) and to the provisions of subparagraph (viii) of this paragraph (g), the selection of mode of benefit (as defined in subdivision twenty-nine of this section) made prior to the date of enactment (as such date is certified pursuant to section forty-one of the legislative law) of this paragraph (g) by a person entitled to a recomputation of benefits pursuant to the best-of-three-computations method (as defined in subdivision thirty-one of this section) in relation to the retirement allowance (or any component thereof) which became payable to him or her prior to such date of enactment shall be the selection of mode of benefit applicable to the recomputed retirement allowance (or any corresponding component thereof) to which he or she is entitled under the best-of-three-computations method (as defined in subdivision thirty of this section), and any such person entitled to a recomputation of benefits pursuant to the best-of-three-computations method shall not be entitled to make any change in such selection of mode of benefit.
(B) (1) Notwithstanding the provisions of item (A) of this subparagraph (v), a person entitled to a recomputation of benefits pursuant to the best-of-three-computations method shall be entitled, to the extent and in the manner prescribed in the succeeding sub-items of this item (B), to change the original selection of mode of benefit applicable to the retirement allowance (or any component thereof) which became payable to him or her prior to the date of enactment of this paragraph (g).
(2) In any case where the original selection of mode of benefit of a person entitled to a recomputation of benefits pursuant to the best-of-three-computations method was a selection of a joint and survivor option (as defined in subdivision thirty-two of this section), no change from such original selection of a joint and survivor option may be made under this item (B) to any other selection of mode of benefit if the designated beneficiary selected with respect to such joint and survivor option by such person entitled to a recomputation is not alive at the time of filing of the form whereby such person entitled to a recomputation seeks to change, pursuant to this item (B), his or her original selection of such joint and survivor option.
(3) Except for a change of selection of mode of benefit prohibited by sub-item two of this item (B), any original selection of mode of benefit may be changed pursuant to this item (B) to another selection of mode of benefit, provided all of the conditions set forth in sub-items four, six and eight of this item (B) are met.
(4) Subject to the provisions of sub-items seven and eight of this item (B), a person entitled to a recomputation of benefits pursuant to the best-of-three-computations method may, pursuant to this item (B), effect any such permissible change of his or her original selection of mode of benefit by executing, acknowledging and filing with the pension fund, within the applicable period of time prescribed by sub-item six of this item, a new selection of mode of benefit. If the original selection of mode of benefit of the person filing such new selection was a selection of a joint and survivor option, such new selection shall be void and of no effect unless (a) the designated beneficiary named in such original selection of a joint and survivor option signs and acknowledges, in the form for such new selection of mode of benefit, a consent to such changed selection of mode of benefit, and (b) such original designated beneficiary is alive on the date of filing of such new selection.
(5) The pension fund shall mail to each person entitled to a recomputation of benefits pursuant to the best-of-three-computations method a letter showing amounts of benefits, as recomputed for such person under the best-of-three-computations method, for modes of benefit other than joint and survivor options, together with a statement advising such person that upon request the amounts of recomputed benefits under joint and survivor options will be provided.
(6) The period of time within which any such person entitled to a recomputation may file a new selection of mode of benefit as provided for in sub-items three and four of this item (B) shall be sixty days after the date of issuance set forth in such letter mailed to such person pursuant to sub-item five of this item; provided, however, that if, pursuant to the request of such person, a later letter setting forth benefits information in relation to new selection of a mode of benefit is mailed to such person by the pension fund, such period of time for filing a new selection of mode of benefit shall be thirty days after the date of issuance set forth in such later letter.
(7) Upon the filing of a new selection of mode of benefit pursuant to this item (B) by any such person entitled to a recomputation, such new selection shall be irrevocable and such person shall not be entitled to file any other selection of mode of benefit with respect to such retirement allowance (or any component thereof) which became payable to him or her prior to the date of enactment of this paragraph (g).
(8) No new selection of mode of benefit filed pursuant to the preceding sub-items of this item (B) shall be valid or effective as a change of mode of benefit or for any other purpose unless the person entitled to a recomputation of benefits pursuant to the best-of-three-computations method who files such new selection is alive on the date (hereinafter referred to as the "validating date") three hundred sixty-five days after the date of filing of such new selection of mode of benefit. If such person filing such new selection of mode of benefit is alive on the validating date with respect to such new selection, such new selection shall become valid and effective on such validating date; provided, however, that from and after the effective date of retirement of such person making such valid and effective new selection of mode of benefit (if he or she retired for service or superannuation or for ordinary or accident disability) or from and after the date on which payability of the original benefits of such person began (if he or she was a discontinued member), such new selection of mode of benefit shall supersede such original selection of mode of benefit and shall apply to and govern the amount of benefits payable to such person or to his or her designated beneficiary or estate.
(vi) Subject to the provisions of subparagraph (viii) of this paragraph (g), in any case where a member who retired before August first, nineteen hundred eighty-three for service or superannuation or for ordinary or accident disability returned or returns to city-service and, on or after July thirty-first, nineteen hundred eighty-three, re-entered or re-enters membership in the pension fund, nothing contained in subparagraphs (i) to (iv), inclusive of this paragraph (g) shall be construed as authorizing or permitting him or her to change any selection of mode of benefit (as defined in subdivision twenty-nine of this section) made by him or her with respect to any benefit which, upon his or her subsequent retirement or discontinuance of service so as to qualify for benefits, is payable to him or her as a continuation, without change, of a benefit which had previously become payable to him or her by reason of his or her prior retirement.
(vii) Subject to the provisions of subparagraph (viii) of this paragraph (g), in any case where a discontinued member referred to in item (A) of subparagraph (iv) of this paragraph returned or returns to city-service and, on or after July thirty-first, nineteen hundred eighty-three, again became or becomes an active member pursuant to applicable provisions of law, nothing contained in subparagraphs (i) to (iv), inclusive, of this paragraph (g) shall be construed as authorizing or permitting him or her to change any selection of mode of benefit made by him or her with respect to any benefit which, upon his or her subsequent retirement or discontinuance of service so as to qualify for benefits, is payable to him or her as a continuation, without change, of a benefit which had previously become payable to him or her by reason of his or her prior discontinuance of service.
(viii) Nothing contained in subparagraphs (v), (vi) and (vii) of this paragraph (g) shall be construed as preventing:
(A) any person subject to such subparagraph (v) who, on or after July thirty-first, nineteen hundred eighty-three, re-entered or re-enters city-service and again became or becomes an active member; or
(B) any re-entered member referred to in such subparagraph (vi) or subparagraph (vii); upon his or her subsequent retirement, from exercising any right, which any other applicable law grants to him or her under such circumstances, to make a selection of mode of benefit (as defined in subdivision twenty-nine of this section).
(ix) Notwithstanding the provisions of subparagraph (i) of this paragraph (g) prescribing a rate of regular interest of seven per centum per annum, compounded annually, for specified members described in such subparagraph (i), the rate of regular interest which shall be applied to fix the rate of interest on any loan to any such member eligible to borrow shall be four per centum per annum, compounded annually.
(x) The rate of regular interest applicable to determination of the rate of member contribution of any member whose last membership began prior to the date of enactment (as certified pursuant to section forty-one of the legislative law) of this paragraph (g) shall be the rate of regular interest which was applicable, under the provisions of law in effect prior to such date of enactment, to the determination of the rate of member contribution of such member, and nothing contained in the preceding subparagraphs of this paragraph (g) shall be construed as applicable to the determination of the rate of member contribution of any such member whose last membership so began or as changing or affecting the rate of member contribution of any such member.
9. "Pension" shall mean payments for life derived from appropriations made by the city as provided in this subchapter.
10. "Annuity" shall mean payments for life derived from contributions made by a member as provided in this subchapter.
11. "Dependent benefit" shall mean payments derived from contributions made by a member as provided in section 13-253 of this subchapter.
12. "Retirement allowance" shall mean the pension plus the annuity and the pension-providing-for-increased-take-home-pay, if any.
13. "Pension reserve" shall mean the present value of all payments to be made on account of any pension, or benefit in lieu of any pension, granted under the provisions of this subchapter, computed upon the basis of such mortality tables as shall be adopted by the board with regular interest.
14. "Annuity reserve" shall mean the present value of all payments to be made on account of any annuity, or benefit in lieu of any annuity, granted under the provisions of this subchapter, computed upon the basis of such mortality tables as shall be adopted by the board with regular interest.
15. "Fiscal year" shall mean any year commencing with the first day of July and ending with the thirtieth day of June next following.
16. "Total service" shall mean all service of a member allowable as provided in subdivision three of this section and section 13-218 of this subchapter.
17. "Board" shall mean the board of trustees provided for in section 13-216 of this subchapter.
18. Pension-providing-for-increased-take-home-pay. The annual allowance for life payable in monthly installments derived from contributions made by the city to the contingent reserve fund pursuant to section 13-226 of this subchapter.
19. Reserve-for-increased-take-home-pay. The amount of the reserve provided by the city which shall be a sum consisting of the total of all products obtained by multiplying the compensation of the member, during each period of reduction of member contributions under section 13-226 of this subchapter, by the percentage of reduction of his contributions applicable under such section with respect to such period, plus regular interest, and additional interest, if any, thereon.
20. "Special interest". A distribution to the annuity savings fund, in addition to regular interest, which distribution (a) for each of the periods as to which the provisions of section 13-234 of this subchapter or section 13-638.2 of this title grant special interest, consists of the amount prescribed by such provisions for such period and (b) for each such period, is credited in such applicable amount to the accounts in the annuity savings fund of members who are eligible under such provisions for crediting of such amount for such period.
21. "Additional interest". A distribution to the reserve-for-increased-take-home-pay in addition to regular interest, which distribution (a) for each of the periods as to which the provisions of section 13-234 of this subchapter or section 13-638.2 of this title grant additional interest, consists of the amount prescribed by such provisions for such period and (b) for each such period, is to be included in such applicable amount in the reserve-for-increased-take-home-pay of each member who is eligible under such provisions for inclusion of such amount for such period.
22. "Discontinued member." A member who has discontinued police service and who has a vested right to a deferred retirement allowance under section 13-256 of this subchapter.
23. "Police service." Service in the uniformed force of the police department, as a member of such force, including service for which credit is granted by section 14-112 of the code, but excluding any service credit acquired by transfer or otherwise under any provision of law.
24. "Supplementary interest". An annual allowance, in addition to regular interest, of interest on the mean amount for the preceding year in each of the funds provided for in accordance with the provisions of this subchapter (excluding, however, the annuity savings fund and the amount of reserve-for-increased-take-home-pay in the contingent reserve fund), which allowance, (a) for each of the periods as to which the provisions of section 13-234 of this subchapter or section 13-638.2 of this title grant supplementary interest, consists of the amount prescribed by such provisions for each period and (b) for each such period, is credited in such applicable amount to such funds at the time, in the manner, to the extent and subject to the exclusions prescribed by the provisions of such section.
25. "Actuarial equivalent benefit". Any benefit which by law is required to be an actuarial equivalent or by law is required to be determined on the basis of an actuarial equivalent.
26. "Seven percent member for actuarial equivalent benefit purposes".
(a) A member who meets all of the following conditions:
(i) subparagraph (i) of paragraph (g) of subdivision eight of this section (relating to the definition of members as to whom regular interest at seven per centum per annum, compounded annually, applies) applies to such member; and
(ii) an actuarial equivalent benefit has become payable to or on account of such member; and
(iii) it is provided by a resolution adopted by the board (A) that a mortality table which does not differentiate on the basis of sex shall be used to calculate such actuarial equivalent benefit or a portion of such benefit, or (B) that the modified Option 1 pension computation formula (as defined in subdivision twenty-eight of this section) shall be used to calculate such actuarial equivalent benefit.
(b) Except in cases to which the modified Option 1 pension computation formula applies pursuant to a resolution adopted by the board, nothing contained in subparagraph (iii) of paragraph (a) of this subdivision twenty-six shall be construed as referring to or including any calculation of an actuarial equivalent benefit (or portion of such benefit) payable to any person where such calculation is required by board resolution to be made through the use of a sex-differentiated mortality table.
27. "Tier I member". A member whose benefits (other than a supplemental retirement allowance) are prescribed by this subchapter and who is not subject to the provisions of article eleven, article fourteen or article fifteen of the retirement and social security law.
28. "Modified Option 1 pension computation formula".
(a) The method of computing the Option 1 pension component of a retirement allowance payable to a Tier I member and the amount of the Option 1 benefit payable to the beneficiary or estate of such member who selected or selects Option 1 as to such pension component, which method of computation is as prescribed by the succeeding paragraphs of this subdivision twenty-eight.
(b) The initial reserve for such pension component shall be computed through use of mortality tables which do not differentiate on the basis of sex (hereinafter referred to as "gender-neutral mortality tables") and an interest assumption consisting of regular interest of seven per centum per annum, compounded annually.
(c) Solely for the purpose of use as the minuend from which the payments of such pension component to such member are subtracted in order to determine the amount of the Option 1 benefit payable, upon such member's death, to such member's beneficiary or estate by reason of such Option 1 selection in relation to such pension component, the present value of such member's maximum pension, as it was at the time of such member's retirement, shall be deemed to be the greatest of:
(i) such present value determined on the basis of gender-neutral mortality tables and an interest assumption consisting of regular interest of seven per centum per annum, compounded annually; or
(ii) such present value determined on the basis of the female mortality tables and the regular interest applicable to such member in effect immediately prior to the date of enactment (as certified pursuant to section forty-one of the legislative law) of this subdivision twenty-eight; or
(iii) such present value determined on the basis of the male mortality tables and the regular interest applicable to such member in effect immediately prior to the date of enactment of this sub- division.
(d) The pension component payable to such member shall be computed on the basis of gender-neutral mortality tables and an interest assumption consisting of regular interest of seven per centum per annum, compounded annually; so that:
(i) the present value, as it was at the time of such member's retirement, of such component; plus
(ii) the present value, as it was at the time of such member's retirement, of the amount payable to such member's Option 1 beneficiary or estate upon the death of the member as provided for by the applicable provisions of paragraph (e) of this subdivision; shall be equal to the Option 1 initial reserve determined for such pension component with respect to such member pursuant to the provisions of paragraph (b) of this subdivision.
(e) Where such member dies before he or she has received payments on account of such pension component equal to the present value of such member's maximum pension as computed pursuant to paragraph (c) of this subdivision, the Option 1 benefit payable to the beneficiary or estate of such deceased member by reason of such Option 1 selection in relation to such pension component, shall be the remainder obtained by subtracting from such present value determined pursuant to such paragraph (c) in relation to such pension component, the total of such Option 1 payments on account of such pension component received by or payable to such member for the period prior to his or her death.
(f) In relation to the Option 1 benefits determined pursuant to the method of computation set forth in this subdivision twenty-eight by reason of discontinuance of city-service by a discontinued member, the phrase "time of such member's retirement", as set forth in paragraphs (c) and (d) of this subdivision, shall be deemed, for the purpose of this subdivision, to mean the date of commencement of the retirement allowance of such discontinued member.
29. "Selection of mode of benefit". The choice made by a member (as permitted by and pursuant to the requirements of law governing such choice by such member) as to whether the maximum amount of his or her retirement allowance or a component thereof shall be payable or such retirement allowance or a component thereof shall be payable under an option selected by the member. The term "selection of mode of benefit" shall include a case where the maximum retirement allowance or a maximum component thereof becomes payable because of a member's omission, within the time permitted by law, to select the maximum benefit or an option.
30. "Best-of-three-computations method".
(a) A method (as prescribed by a resolution of the board) under which a retirement allowance (or portion thereof) payable to a member is required to be determined for such member so as to be the greatest of:
(i) such retirement allowance (or portion thereof) determined on the basis of gender-neutral mortality tables and regular interest at the rate of seven per centum per annum; or
(ii) such retirement allowance (or portion thereof) determined on the basis of female mortality tables and the regular interest applicable to such member as of a time prescribed in such resolution; or
(iii) such retirement allowance (or portion thereof) determined on the basis of male mortality tables and the regular interest applicable to such member as of a time prescribed in such resolution.
(b) Where, under the provisions of any such resolution of the board, the modified Option 1 pension computation formula (as defined in subdivision twenty-eight of this section) applies to any member, the term "best-of-three-computations method", where used in relation to such member, shall be deemed to include such modified Option 1 pension computation formula, to the extent that such formula governs the determination of the pension component (or portion thereof) of such member's retirement allowance.
31. "Person entitled to a recomputation of benefits pursuant to the best-of-three-computations method". Any person who meets all of the conditions stated below in this subdivision thirty-one:
(a) such person, during the period beginning on August first, nineteen hundred eighty-three and ending on the date next preceding the date of enactment (as such date is certified pursuant to section forty-one of the legislative law) of this subdivision thirty-one, (i) retired for service or superannuation or for ordinary or accident disability or (ii) discontinued service so as to become a discontinued member; and
(b) such person's retirement allowance (or a portion thereof), by reason of such retirement or discontinuance of service is required by a resolution adopted by the board to be redetermined pursuant to the best-of-three-computations method (as defined in subdivision thirty of this section); and
(c) a first payment on account of his or her retirement allowance (as such retirement allowance was determined prior to the date of enactment of this subdivision) was made prior to such date of enactment.
32. "Joint and survivor option".
(a) Any option under which, at the time when such option is selected, a choice is made which includes both:
(i) a benefit payable for the lifetime of the retired or vested member by whom or in whose behalf such option is selected; and
(ii) a benefit (A) which consists of an amount equal to or constituting a percentage of such retired or vested member's benefit and (B) which is payable for the lifetime of a designated beneficiary selected at the time when such option is selected.
(b) In any case where an option described in paragraph (a) of this subdivision thirty-two includes a provision prescribing that if the designated beneficiary predeceases such retired or vested member, a maximum benefit shall become payable to such member, such option shall nevertheless be deemed to be a joint and survivor option.
33. "Normal rate of contribution." The proportion of the earnable compensation of a member which is required to be deducted from the compensation of such member by the applicable provisions of section 13-225 of this subchapter as his or her member contributions, exclusive of any increase in such contributions pursuant to subdivision c of subdivision d of such section 13-225 or any decrease thereof on account of any program for increased-take-home-pay or pursuant to subdivision one of section one hundred thirty-eight-b of the retirement and social security law (relating to election to decrease member contributions by contributions due on account of social security coverage).
34. "Member contributions eligible for pick up by the employer."
(a) with respect to any payroll period for a member (other than a member who is not required to contribute during such payroll period because of his or her currently effective election to discontinue member contributions pursuant to subdivision b of section 13-225 of this subchapter), the term "member contributions eligible for pick up by the employer" shall mean the amount of member contributions which, in the absence of an employer pick up program applicable to such member pursuant to section 13-225.1 of this subchapter (providing for pick up of required member contributions), would be required by law to be deducted, on account of such member's normal rate of contribution, from the compensation of such member for such payroll period, after (1) giving effect to any reduction in such contributions required under any program for increased-take-home-pay or pursuant to subdivision one of section one hundred thirty-eight-b of the retirement and social security law and (2) excluding any deductions from such compensation (or redeposits, restorations or payments) on account of (i) loans or withdrawals of excess contributions or (ii) any election by such member to increase his or her contributions pursuant to subdivision c or subdivision d of section 13-225 of this subchapter or (iii) any other cause not attributable to the member's normal rate of contribution after reduction, if any, in such rate as described in subparagraph one of this paragraph (a).
(b) If no deductions on account of a member's normal rate of contribution are required by law to be made from the compensation of any member for any payroll period, such member shall not have, for such payroll period, any member contributions eligible for pick up by the employer. The amount of any member's member contributions eligible for pick up by the employer for any payroll period shall be determined solely on the basis of compensation paid to such member for such payroll period by his or her public employer. A member shall not have any member contributions eligible for pick up by the employer with respect to any payroll period for which he or she is not paid compensation by his or her public employer.
35. "Starting date for pick up." The first day of the first whole payroll period commencing after the date which is three months after the internal revenue service shall have issued a ruling that member contributions picked up pursuant to section 13-225.1 of this subchapter are not includible as gross income for federal income tax purposes until distributed or made available.