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a. For the purposes of this section, the following terms shall mean and include:
1. "Base fiscal year". Any fiscal year of the city beginning on or after July first, nineteen hundred sixty-nine, with respect to which fiscal year a computation of earnings differential, based on equity investments made or held by the pension fund during such fiscal year, is being made pursuant to this section.
2. "Current fiscal year". The fiscal year of the city next succeeding the base fiscal year.
3. "Prior base fiscal year". Any fiscal year of the city which begins on or after July first, nineteen hundred sixty-nine and which precedes the base fiscal year.
4. "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 base fiscal year differs from the interest comparison factor with respect to the base fiscal year. If such equity experience factor is greater than such interest comparison factor, the difference between the two shall be expressed as a positive quantity. If such interest comparison factor is greater than such equity experience factor, the difference between the two shall be expressed as a negative quantity.
5. (a) "Equity experience factor". An amount (expressed as a positive or negative quantity) equal to (i) the income earned by the pension fund during the base fiscal year from its investments in equities, plus (ii) the capital gains, realized or unrealized, occurring during such fiscal year by reason of such investments, less (iii) the capital losses, realized or unrealized, occurring during such fiscal year by reason of such investments.
(b) In the event that any equity is sold during the base 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. "Income." Any yield of equities, including but not limited to dividends, other than capital gains.
7. "Hypothetical fixed income securities earnings."
(a) The aggregate of the hypothetical interest yields computed pursuant to subparagraphs (b), (c) and (d) of this paragraph seven.
(b) The board shall compute with respect to each investment made or maintained by the pension fund in an equity during the base fiscal year, the amount of interest which would have been hypothetically earned during such fiscal year, under the methods of calculation prescribed in this subparagraph seven, if an amount equal to such investment had instead been hypothetically invested in fixed income securities and such securities had been held by such fund for a period (in the base fiscal year) co-extensive with the period during which such equity was held by such fund in the base fiscal year.
(c) For the purposes of this section, the amount of any such investment in an equity during the base fiscal year shall be deemed to be:
(i) the market value of the equity on the first day of the base fiscal year, in the case of any such equity acquired by the pension fund prior to the commencement of such fiscal year and held by such fund on the first day of such fiscal year; and
(ii) the total amount paid by such fund 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 such fund during the base fiscal year.
(d) For the purposes of this section, the amount of interest which would have been earned by the pension fund on such hypothetical fixed income securities during the base 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 (c) of this paragraph seven, by the assumed rate of interest for the base fiscal year; and
(ii) by prorating the interest so computed, in any case where the investment in such equity was maintained by the pension fund for a part of the base fiscal year.
8. "Assumed rate of interest".
(a) In relation to any base fiscal year, a hypothetical rate of interest, fixed as hereinafter in this paragraph eight prescribed, which shall be used for the purpose of the computing, pursuant to paragraph seven of this subdivision a, amounts of interest which would have been hypothetically earned on hypothetical investments of the pension fund in fixed income securities during such fiscal year.
(b) The board shall fix the assumed rate of interest with respect to each base fiscal year. In the event of a tie vote with respect to the fixation of such rate, it shall be fixed by an arbitrator designated by the board. If there is a tie vote as to the designation of such an arbitrator, such rate shall be fixed by an arbitrator appointed by the supreme court, on the application of any member of the board. The cost of any arbitration pursuant to the foregoing provisions of this subparagraph (b) shall be paid from transferable earnings.
9. "Six per cent interest offset". In relation to any base fiscal year, the excess, if any, of the hypothetical fixed income securities earnings with respect to such year, over the amount which such earnings would be if they have been computed on the basis of an interest rate of six per cent, rather than on the basis of the assumed rate of interest; provided, however, that there shall be no six per cent interest offset with respect to any base fiscal year unless the hypothetical fixed income securities earnings with respect to such fiscal year exceeds the equity experience factor with respect to such fiscal year; and provided further that no six per cent interest offset with respect to any base fiscal year shall in any event exceed the amount obtained by subtracting the equity experience factor with respect to such fiscal year from the hypothetical fixed income securities earnings with respect to such fiscal year.
10. "Interest comparison factor". In relation to any base fiscal year, the amount obtained by subtracting the six per cent interest offset, if any, with respect to such fiscal year, from the hypothetical fixed income securities earnings with respect to such fiscal year.
11. "Cumulative earnings differential for the base fiscal year". In relation to a base fiscal year, the amount (expressed as a positive or negative quantity) obtained by adding to the earnings differential for such base fiscal year, the total of all earnings differentials for all prior base fiscal years.
12. "Transferable earnings". In relation to a base fiscal year, the total amount required by the provisions of subdivision c of this section to be distributed, with respect to such base fiscal year, in the manner provided by subdivision d of this section.
13. "Cumulative distributions of transferable earnings for prior base fiscal years". In relation to a base fiscal year, the total of all payments of transferable earnings made or required to be made by the pension fund to the police officer's variable supplements fund and the superior police officers' variable supplements fund with respect to all prior base fiscal years pursuant to subdivisions c and d of this section.
14. "Police officer's variable supplements fund". The police officer's variable supplements fund established by subchapter three of this chapter.
15. "Police superior officers' variable supplements fund". The police superior officers' variable supplements fund established by subchapter four of this chapter.
16. "Superior police officers". Members of the uniformed force of the police department who (a) hold the position of sergeant or any position of higher rank in such force, or (b) are detectives.
b. As soon as practicable after the close of each base fiscal year, but not later than August thirty-first of the current fiscal year, the board shall compute:
(1) the earnings differential with respect to such base fiscal year, and the interest offset, if any, with respect to such fiscal year;
(2) the total contributions made to the police pension fund, subchapter two, with respect to such base fiscal year on behalf of all members of the uniformed force of the police department who are police officers, as of the last day of such base fiscal year; and
(3) the total contributions made to the police pension fund, subchapter two, with respect to such base fiscal year on behalf of all members of the uniformed force of the police department who are superior police officers, as of such last day.
c. If the cumulative earnings differential for the base fiscal year is a positive quantity and exceeds the cumulative distributions of transferable earnings for prior base fiscal years, a sum equal to the amount of such excess shall be distributed by the pension fund in the manner provided by subdivision d of this section.
d. (1) If there be transferable earnings with respect to the base fiscal year, computed as hereinabove provided, such transferable earnings shall be divided into a police officer's variable supplements fund share and a superior police officers' variable supplements fund share in the ratio that the total contributions made to the police pension fund, subchapter two, with respect to such base fiscal year on behalf of police officers bears to the total contributions made to the police pension fund, subchapter two, with respect to such base fiscal year on behalf of superior police officers, as computed for such base fiscal year pursuant to the provisions of paragraphs two and three of subdivision b of this section.
(2) On or before August thirty-first of the current fiscal year, the pension fund shall pay from the contingent reserve fund to the police officer's variable supplements fund and the superior police officers' variable supplements fund their respective shares of such transferable earnings with respect to the base fiscal year, as such shares are computed pursuant to paragraph one of this subdivision d.
e. The comptroller shall furnish to the board such information and data as it may request for the purpose of carrying out the provisions of this section.
f. The police officer's variable supplements fund and the police superior officers' variable supplements fund shall not have any rights under this section to any payments by the pension fund to such variable supplements funds derived from or based upon the investment earnings of the pension fund in any fiscal year of the city commencing on or after July first, nineteen hundred eighty-eight. Any and all rights of the police officer's variable supplements fund to payments from the pension fund derived from or based upon the investment earnings of the pension fund in any fiscal year of the city commencing on or after such July first shall be governed solely by the provisions of section 13-232.1 of this subchapter. Any and all rights of the police superior officers' variable supplements fund to payments from the pension fund derived from or based upon the investment earnings of the pension fund in any fiscal year of the city included in the period commencing on such July first and ending on June thirtieth, nineteen hundred ninety-two shall be governed solely by the provisions of section 13-232.2 of this subchapter. Any and all rights of the police superior officers' variable supplements fund to payments from the pension fund derived from or based upon the investment earnings of the pension fund in any fiscal year of the city commencing on or after July first, nineteen hundred ninety-two shall be governed solely by the provision of section 13-232.3 of this subchapter.
a. For the purposes of this section, the definitions of terms set forth in paragraphs two, five, six, seven, eight and fourteen of subdivision a of section 13-232 of this subchapter shall apply to this section 13-232.1 with the same force and effect as if such definitions were specifically set forth in this section.
b. For the purposes of this section, the following terms shall mean and include:
1. "Base fiscal year". Any fiscal year of the city beginning on or after July first, nineteen hundred eighty-eight.
2. "Prior base fiscal year". Any fiscal year of the city which begins on or after July first, nineteen hundred eighty-eight and which precedes the base fiscal year.
3. "Cumulative earnings factor as of June thirtieth, nineteen hundred eighty-eight".
(a) 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 subparagraph (b) of this paragraph three.
(b) (i) The cumulative earnings differential for the base fiscal year (as defined in paragraph eleven of subdivision a of section 13-232 of this subchapter), as applicable to the nineteen hundred eighty-seven-nineteen hundred eighty-eight base fiscal year (as so defined) shall be computed pursuant to the provisions of such section 13-232.
(ii) 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 with respect to such nineteen hundred eighty-seven-nineteen hundred eighty-eight base fiscal year.
(iii) The amount of transferable earnings (as defined in paragraph twelve of subdivision a of such section 13-232), if any, for the nineteen hundred eighty-seven-nineteen hundred eighty-eight base fiscal year, determined pursuant to such section 13-232, shall be added to the cumulative distributions of transferable earnings computed pursuant to item (ii) of this subparagraph (b).
(iv) The sum resulting from the addition prescribed by item (iii) of this subparagraph (b) shall be subtracted from the amount computed pursuant to item (i) of this subparagraph. The remainder resulting from the subtraction shall be the cumulative earnings factor as of June thirtieth, nineteen hundred eighty-eight.
4. "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 base fiscal year differs from the hypothetical fixed income securities earnings with respect to the base 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.
5. "Cumulative earnings factor".
(a) The cumulative earnings factor for any base fiscal year shall be determined as follows:
(i) If the cumulative earnings factor for the immediately preceding base fiscal year was a positive quantity, the cumulative earnings factor for the base fiscal year shall be equal to the earnings differential for the base fiscal year.
(ii) If the cumulative earnings factor for the immediately preceding base fiscal year was a negative quantity, the cumulative earnings factor for the base fiscal year shall be equal to the sum of:
(A) the earnings differential for the base fiscal year; and
(B) the cumulative earnings factor for the immediately preceding base fiscal year, increased with interest at a rate equal to the assumed rate of interest fixed with respect to such base fiscal year pursuant to the provisions of paragraph eight of subdivision a of section 13-232 of this subchapter, as made applicable to this section 13-232.1 by subdivision a hereof.
(b) In applying the provisions of this paragraph five for the base fiscal year nineteen hundred eighty-eight-nineteen hundred eighty-nine, the term defined in paragraph three of this subdivision b as "cumulative earnings factor as of June thirtieth, nineteen hundred eighty-eight" shall be substituted for the term "cumulative earnings factor for the immediately preceding base fiscal year".
6. "POVSF cumulative earnings factor". With respect to any base fiscal year, the amount obtained by multiplying the cumulative earnings factor for such base fiscal year by a fraction, the numerator of which shall be the total contributions made to the police pension fund, subchapter two, with respect to such base fiscal year on behalf of all members of the uniformed force of the police department who are police officers, as of the last day of such base fiscal year, and the denominator of which shall be the total contributions made to such police pension fund with respect to such base fiscal year on behalf of all persons who are members of the uniformed force of the police department as of the last day of such base fiscal year.
7. "POVSF unfunded accrued liability". In any case where the valuation of assets and liabilities of the police officer's variable supplements fund by the actuary pursuant to subdivision e of section 13-270 of this chapter shows that for any base fiscal year, such liabilities exceed such assets, the term "POVSF unfunded accrued liability" shall mean the amount of the excess of such liabilities over the amount of such assets for such base fiscal year.
8. "Police officer". A member of either this pension fund or the police pension fund provided for in subchapter one of this chapter who, at the time of retirement for service, was not a police superior officer as defined in subdivision four of section 13-278 of this chapter.
c. As soon as practicable after the close of each base fiscal year, but not later than December thirty-first of the current fiscal year, the board shall compute the POVSF cumulative earnings factor with respect to such base fiscal year.
d. If the POVSF cumulative earnings factor for such base fiscal year is a positive quantity, the pension fund, on or before December thirty-first of the current fiscal year, shall pay from its contingent reserve fund to the police officer's variable supplements fund, as the payment due for such base fiscal year under this section, an amount determined pursuant to the provisions of subdivision e of this section.
e. The amount payable for such base fiscal year as provided for in subdivision d of this section shall be the lesser of (1) the POVSF cumulative earnings factor for such base fiscal year referred to in such subdivision d or (2) the liability POVSF unfunded accrued liability for such base fiscal year.
f. No amount shall be due from or payable by the pension fund to such variable supplements fund under this section for any base fiscal year which shall exceed the POVSF unfunded accrued liability for such base fiscal year, regardless of the amount and character of the POVSF cumulative earnings factor for such base fiscal year.
g. The comptroller shall furnish to the board such information and data as it may request for the purpose of carrying out the provisions of this section.
a. For the purposes of this section, the definitions of terms set forth in paragraphs two, four, six, eight, nine and ten of subdivision a of section 13-232 of this subchapter shall apply to this section 13-232.2 with the same force and effect as if such definitions were specifically set forth in this section.
b. For the purposes of this section, the following terms shall mean and include:
1. "Base fiscal year". Any fiscal year of the city included in the period beginning on July first, nineteen hundred eighty-eight and ending on June thirtieth, nineteen hundred ninety-two.
2. "Prior base fiscal year". Any fiscal year of the city which begins on or after July first, nineteen hundred eighty-eight and which precedes the base fiscal year.
3. "Cumulative earnings factor as of June thirtieth, nineteen hundred eighty-eight".
(a) 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 subparagraph (b) of this paragraph three.
(b) (i) The cumulative earnings differential for the base fiscal year (as defined in paragraph eleven of subdivision a of section 13-232 of this subchapter), as applicable to the nineteen hundred eighty-seven-nineteen hundred eighty-eight base fiscal year (as so defined) shall be computed pursuant to the provisions of such section 13-232.
(ii) 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 with respect to such nineteen hundred eighty-seven-nineteen hundred eighty-eight base fiscal year.
(iii) The amount of transferable earnings (as defined in paragraph twelve of subdivision a of such section 13-232), if any, for the nineteen hundred eighty-seven-nineteen hundred eighty-eight base fiscal year, determined pursuant to such section 13-232, shall be added to the cumulative distributions of transferable earnings computed pursuant to item (ii) of this subparagraph (b).
(iv) The sum resulting from the addition prescribed by item (iii) of this subparagraph (b) shall be subtracted from the amount computed pursuant to item (i) of this subparagraph.
(v) The remainder resulting from the subtraction shall be the cumulative earnings factor as of June thirtieth, nineteen hundred eighty-eight.
4. "Equity experience factor".
(a) An amount (expressed as a positive or negative quantity) which shall be determined for each base fiscal year in accordance with the method of computation set forth in the succeeding subparagraphs of this paragraph four.
(b) The amount of income earned by the pension fund during the base fiscal year from its investment in equities shall be computed.
(c) To each such amount of income for a base fiscal year there shall be added the capital gains, realized and unrealized, occurring during such base fiscal year by reason of such investments.
(d) From the sum resulting from the addition prescribed by subparagraph (c) of this paragraph there shall be subtracted the capital losses, realized or unrealized, occurring during such base fiscal year by reason of such investment.
(e) In the event that any equity is sold during the base 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.
(f) (i) With respect to base fiscal years occurring during the period beginning on July first, nineteen hundred eighty-eight and ending on June thirtieth, nineteen hundred ninety, the remainder resulting from the subtraction prescribed by subparagraph (d) 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 two hundred forty-seven of the laws of nineteen hundred eighty-eight and chapter five hundred eighty-one of the laws of nineteen hundred eighty-nine.
(ii) With respect to each base fiscal year included in the period beginning on July first, nineteen hundred ninety and ending on June thirtieth, nineteen hundred ninety-two, the remainder resulting from the subtraction prescribed by subparagraph (d) 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 two hundred forty-seven of the laws of nineteen hundred eighty-eight.
(iii) For the purpose of determining the entitlement, with respect to any base fiscal year included in the period beginning on July first, nineteen hundred ninety and ending on June thirtieth, nineteen hundred ninety-two, of the police superior officers' variable supplements fund to receive payment of any sum from the pension fund pursuant to this section, the cumulative earnings factor for such base fiscal year shall be calculated in the same manner as if (A) that part of this subparagraph, which part, prior to July twenty-sixth, nineteen hundred ninety-one, referred to chapter five hundred eighty-one of the laws of nineteen hundred eighty-nine, had never been enacted and (B) items (ii) and (iii) of this subparagraph, as such items were in effect prior to July twenty-sixth, nineteen hundred ninety-one, had never been enacted.
(g) Any adjustment required to be made pursuant to the provisions of subparagraph (f) of this paragraph shall be computed pursuant to a scientific method recommended to the board by the actuary and approved by the board; provided that if the board is unable to approve, by the required majority 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 subchapter.
(h) The equity experience factor for such base fiscal year shall be the amount remaining after the adjustment prescribed by subparagraphs (f) and (g) of this paragraph has been made.
5. "Hypothetical fixed income securities earnings".
(a) The aggregate of the hypothetical interest yields computed pursuant to subparagraphs (b), (c) and (d) of this paragraph five.
(b) The board shall compute with respect to each investment made or maintained by the pension fund in an equity during the base fiscal year, the amount of interest which would have been hypothetically earned during such fiscal year, under the methods of calculation prescribed in this paragraph five, if an amount equal to such investment had instead been hypothetically invested in fixed income securities and such securities had been held by such fund for a period (in the base fiscal year) co-extensive with the period during which such equity was held by such fund in the base fiscal year.
(c) For the purposes of this section, the amount of any such investment in an equity during the base fiscal year shall be deemed to be:
(i) the market value of the equity on the first day of the base fiscal year, in the case of any such equity acquired by the pension fund prior to the commencement of such fiscal year and held by such fund on the first day of such fiscal year; and
(ii) the total amount paid by such fund 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 such fund during the base fiscal year.
(d) For the purposes of this section, the amount of interest which would have been earned by the pension fund on such hypothetical fixed income securities during the base 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 (c) of this paragraph five, by the assumed rate of interest for the base fiscal year; and
(ii) by prorating the interest so computed, in any case where the investment in such equity was maintained by the pension fund for a part of the base fiscal year; and
(iii) by multiplying the amount of interest computed for the full base 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 base fiscal year by subparagraph (h) of paragraph four of this subdivision b and the denominator of which is the remainder produced by the subtraction prescribed by subparagraph (d) of such paragraph four with respect to such base 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 pension fund during such fiscal year.
6. "Cumulative earnings factor".
(a) The cumulative earnings factor for any base fiscal year shall be determined as follows:
(i) If the cumulative earnings factor for the immediately preceding base fiscal year was a positive quantity, the cumulative earnings factor for the base fiscal year shall be equal to the earnings differential for the base fiscal year.
(ii) If the cumulative earnings factor for the immediately preceding base fiscal year was a negative quantity, the cumulative earnings factor for the base fiscal year shall be equal to the sum of:
(A) the earnings differential for the base fiscal year; and
(B) the cumulative earnings factor for the immediately preceding base fiscal year.
(b) In applying the provisions of this subdivision six for the base fiscal year nineteen hundred eighty-eight-nineteen hundred eighty-nine, the term defined in paragraph three of this subdivision b as "cumulative earnings factor as of June thirtieth, nineteen hundred eighty-eight" shall be substituted for the term "cumulative earnings factor for the immediately preceding base fiscal year".
7. "PSOVSF cumulative earnings factor". With respect to any base fiscal year, the amount obtained by multiplying the cumulative earnings factor for such base fiscal year by a fraction, the numerator of which shall be the total contributions made to the pension fund with respect to such base fiscal year on behalf of all members of the uniformed force of the police department who are police superior officers, as of the last day of such base fiscal year, and the denominator of which shall be the total contributions made to the pension fund with respect to such base fiscal year on behalf of all persons who are members of the uniformed force of the police department as of the last day of such base fiscal year.
8. "Police superior officers". Members of the uniformed force of the police department who (a) hold the position of sergeant or any position of higher rank in such force, or (b) are detectives.
9. "Police superior officers' variable supplements fund". The police superior officers' variable supplements fund established by subchapter four of this chapter.
c. As soon as practicable after the close of each base fiscal year, but not later than August thirty-first of the current fiscal year, the board shall compute the PSOVSF cumulative earnings factor with respect to such base fiscal year.
d. If the PSOVSF cumulative earnings factor for the base fiscal year is a positive quantity, the pension fund, on or before August thirty-first of the current fiscal year, shall pay from its contingent reserve fund to the police superior officers' variable supplements fund a sum equal to the amount of such factor.
e. The comptroller shall furnish to the board such information and data as it may request for the purpose of carrying out the provisions of this section.
a. For the purposes of this section, the definitions of terms set forth in paragraphs two, five, six, seven, eight and fifteen of subdivision a of section 13-232 of this subchapter shall apply to this section 13-232.3 with the same force and effect as if such definitions were specifically set forth in this section.
b. For the purposes of this section, the following terms shall mean and include:
(1) "Base fiscal year". Any fiscal year of the city beginning on or after July first, nineteen hundred ninety-two.
(2) "Prior base fiscal year". Any fiscal year of the city which begins on or after July first, nineteen hundred ninety-two and which precedes the base fiscal year.
(3) "Cumulative earnings factor as of June thirtieth, nineteen hundred ninety-two". An amount, expressed as a positive or negative quantity, as the case may be, which shall be equal to the cumulative earnings factor for the nineteen hundred ninety-one – nineteen hundred ninety-two base fiscal year computed pursuant to section 13-232.2 of this subchapter.
(4) "Earnings differential". The amount (expressed as a positive and negative quantity) by which the equity experience factor (expressed as a positive or negative quantity) with respect to the base fiscal year differs from the hypothetical fixed income securities earnings with respect to the base fiscal year. If such equity experience factor is greater then 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 then such equity experience factor, the difference between the two shall be expressed as a negative quantity.
(5) "Cumulative earnings factor".
(a) The cumulative earnings factor for any base fiscal year shall be determined as follows:
(i) If the cumulative earnings factor for the immediately preceding base fiscal year was a positive quantity, the cumulative earnings factor for the base fiscal year shall be equal to the earnings differential for the base fiscal year.
(ii) If the cumulative earnings factor for the immediately preceding base fiscal year was a negative quantity, the cumulative earnings factor for the base fiscal year shall be equal to the sum of:
(A) the earnings differential for the base fiscal year; and
(B) the cumulative earnings factor for the immediately preceding base fiscal year, increased with interest at a rate equal to the assumed rate of interest fixed with respect to such base fiscal year pursuant to the provisions of paragraph eight of subdivision a of section 13-232 of this subchapter, as made applicable to this section 13-232.3 by subdivision a hereof.
(b) In applying the provisions of this paragraph five for the base fiscal year nineteen hundred ninety-two – nineteen hundred ninety-three, the term defined in paragraph three of this subdivision b as "cumulative earnings factor as of June thirtieth, nineteen hundred ninety-two" shall be substituted for the term "cumulative earnings factor the the immediately preceding base fiscal year".
(6) "PSOVSF cumulative earnings factor". With respect to any base fiscal year, the amount obtained by multiplying the cumulative earnings factor for such base fiscal year by a fraction, the numerator of which shall be the total contributions made to the pension fund with respect to such base fiscal year on behalf of all members of the uniformed force of the police department who are police superior officers, as of the last day of such base fiscal year, and the denominator of which shall be the total contributions made to the pension fund with respect to such base fiscal year on behalf of all persons who are members of the uniformed force of the police department as of the last day of such base fiscal year.
(7) "PSOVSF unfunded accrued liability". In any case where the valuation of assets and liabilities off the police superior officers' variable supplements fund by the actuary pursuant to subdivision e of section 13-280 of this chapter shows that for any base fiscal year, such liabilities exceed such assets, the term "PSOVSF unfunded accrued liability" shall mean the amount of the excess of such liabilities over the amount of such assets for such base fiscal year.
(8) "Police superior officers". Members of the uniformed force of the police department who (a) hold the position of sergeant or any position of higher rank in such force, or (b) are detectives.
c. As soon as practicable after the close of each base fiscal year, but not later than December thirty-first of the current fiscal year, the board shall compute the PSOVSF cumulative earnings factor with respect to such base fiscal year.
d. If the PSOVSF cumulative earnings factor for such base fiscal year is a positive quantity, the pension fund, on or before December thirty-first of the current fiscal year, shall pay from its contingent reserve fund to the police superior officers' variable supplements fund, as the payment due for such base fiscal year under this section, an amount determined pursuant to the provisions of subdivision e of this section.
e. The amount payable for such base fiscal year as provided for in subdivision d of this section shall be the lesser of (1) the PSOVSF cumulative earnings factor for such base fiscal year referred to in such subdivision d or (2) the PSOVSF unfunded accrued liability for such base fiscal year.
f. No amount shall be due from or payable by the pension fund to such variable supplements fund under this section for any base fiscal year which shall exceed the PSOVSF unfunded accrued liability for such base fiscal year, regardless of the amount and character of the PSOVSF cumulative earnings factor for such base fiscal year.
g. The comptroller shall furnish to the board such information and data as it may request for the purpose of carrying out the provisions of this section.
a. The members of the board shall be the trustees of the several funds provided for by this subchapter, and shall have full power to invest the 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 the funds provided for by this subchapter shall have been invested as well as of the proceeds of such investments and of any moneys belonging to such funds.
b. Notwithstanding the provisions of subdivision two of section one hundred seventy-seven of the retirement and social security law, or any other provision of law to the contrary, the amounts which may be invested by the pension fund in securities pursuant to the provisions of paragraphs (a), (b), (c), (d), (e) and (f) of subdivision twenty-six of section two hundred thirty-five of the banking law, shall be subject to the following maximum limits, in lieu of any such limits imposed by any other provision of law:
(1) Not more than fifty per cent of the assets of the pension fund shall be invested in such securities; and
(2) Not more than five per cent of such assets shall be invested in the securities of any one corporation and its subsidiaries; and
(3) Not more than two per cent of the total issued and outstanding equity securities of any one corporation shall be owned by the pension fund.
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