Section 13-103. Board of trustees of retirement system

a. (1) The retirement
  system shall be administered by a board of trustees which shall, subject
  to  the  provisions  of  law,  from  time  to  time  establish rules and
  regulations for the administration and transaction of  the  business  of
  such  system and to carry out the provisions of law in relation thereto.
  The  provisions  of  sections  one  thousand  forty-two,  one   thousand
  forty-three,  one thousand forty-four and one thousand forty-five of the
  charter shall not be construed to apply to the adoption  of  such  rules
  and regulations.
    (2)  An executive director of the retirement system shall be appointed
  by the board. The executive director shall perform such duties as may be
  conferred upon him or her by the board or by  law  and  shall  have  the
  powers  of  the head of a department in respect to the retirement system
  and the officers and employees thereof.
    b. Such board of trustees shall consist of:
    1. A representative of the mayor who shall be appointed by  the  mayor
  and  who  shall  be  entitled  to cast one vote. The mayor, by a written
  authorization filed with the board, may designate one or more members of
  his or her office to act in the place of  such  representative,  in  the
  event  of  his or her absence. Such representative or designee acting in
  his or her place shall be chairperson of the board.
    2. The public advocate, who shall be entitled to cast  one  vote.  The
  public  advocate  may,  by  written  authorization filed with the board,
  designate one or more officers or employees appointed by him or  her  to
  act  in  his or her place as a member of such board, in the event of the
  absence of such public advocate.
    3. The comptroller of the city, who shall  be  entitled  to  cast  one
  vote.
    4.  The  president  of  each  borough.  Each  such  president shall be
  entitled to cast a one-fifth vote. Each such president may,  by  written
  authorization  filed with the board, designate his or her deputy borough
  president, or executive assistant to the borough president,  or  counsel
  to  the borough president to act in his or her place as a member of such
  board.
    5. (a) Three employee representatives, who shall each be  entitled  to
  cast one vote. The chief executive officer of each of the three employee
  organizations  designated  as  herein  provided  shall  be  one  of such
  representatives.
    (b) On or before July first of the year  in  which  this  subparagraph
  shall take effect, the director of labor relations of the city (or other
  officer  performing  the  same or similar functions under another title)
  shall, by instrument in writing filed in his or her office and with  the
  board,  designate  the three employee organizations which represent, for
  the purposes of collective bargaining on pension  matters,  the  largest
  number  of  employees  who  are  members  of the retirement system. Such
  designation shall  be  reviewed  annually  by  such  director  or  other
  officer,  and  if  such review discloses a change in the standing of the
  employee organizations concerned, such designation  shall  thereupon  be
  revised by him or her to specify the three such organizations having the
  leading representational status as hereinabove prescribed.
    (c)  Any  such  employee  representative may, by written authorization
  filed with the board, designate one or more persons to act in the  place
  of such member on such board in the event of the absence of such member,
  provided,  however, that the by-laws or constitution of the organization
  of  which  he  or  she  is  chief  executive  officer   authorize   such
  designation.
    (d)  Each  act  of  such  board shall be by a resolution adopted by at
  least three and three-fifths votes.  The  concurrence  of  one  employee

  representative  and  one  non-employee  representative member or members
  entitled to one vote shall be necessary for an  act  of  such  board.  A
  quorum  of such board shall consist of members entitled to cast at least
  three and three-fifths votes.
    c.  (1)  In  addition  to  the  powers  conferred upon it by any other
  provision of law, the board of trustees shall, on or before April  first
  of  each  year,  establish  a  budget,  subject  to  the  provisions  of
  paragraphs  two,  three,  four  and  five  of   this   subdivision   and
  subdivisions  d,  e,  f and g of this section, sufficient to fulfill the
  powers, duties and responsibilities set forth in this  chapter  and  any
  other  provision  of law which sets forth the benefits of members of the
  retirement system and may draw upon the assets of the retirement  system
  to  fund  such  budget.  The  provisions  of  this  section shall not be
  applicable to the payment of investment  expenses  pursuant  to  section
  13-705  of  the  code and nothing contained herein shall be construed as
  amending, modifying or affecting any power of the board of  trustees  to
  provide  for  the  payment  of  investment  expenses pursuant to section
  13-705 of the code.
    (2) If a budget has not been adopted by the commencement  of  the  new
  fiscal year, the budget for the preceding fiscal year shall be deemed to
  have  been  extended  for  the  new fiscal year until such time as a new
  budget is adopted.
    (3) Any budget in effect pursuant to paragraphs one  or  two  of  this
  subdivision c shall be modifiable during such succeeding fiscal year.
    (4)  Notwithstanding any other provision of law, the board of trustees
  shall have the power either directly or by delegation to  the  executive
  director, to obtain by employment or by contract the goods, property and
  services  necessary  to  fulfill its powers, duties and responsibilities
  within the appropriation authorized by the board of trustees pursuant to
  paragraph one of this subdivision.
    (5) The provisions of chapter seventeen of the charter shall  continue
  to  apply  to  the  retirement  system  and  the retirement system shall
  constitute an agency for the purposes of  such  chapter  seventeen.  The
  board  of  trustees shall not obtain any legal services by the retention
  of employees or by contract unless the corporation counsel shall consent
  thereto.
    (6) All contracts for goods or services entered into by the retirement
  system shall be procured  as  prescribed  in  chapter  thirteen  of  the
  charter;  provided,  however,  that where the provisions of such chapter
  thirteen  require  action  by  the  mayor  in  regard  to  a  particular
  procurement  (except  for  mayoral  action  pursuant to subdivision c of
  section three hundred thirty-four of the charter) such action shall  not
  be  taken by the mayor or such appointee of the mayor but shall be taken
  by the board of  trustees  or  the  executive  director  pursuant  to  a
  resolution adopted by the board of trustees delegating such authority to
  the executive director.
    d.   Notwithstanding   any  other  provisions  of  this  section,  any
  resolution of the board  of  trustees  which  establishes  a  budget  or
  modifies  a budget pursuant to the provisions of paragraphs one or three
  of subdivision c of this section shall require the  concurrence  of  the
  representative  of  the  mayor  or  the  comptroller.  No  assets of the
  retirement system shall be drawn upon  pursuant  to  the  provisions  of
  paragraph  one  of subdivision c unless authorized by a budget or budget
  modification established by a resolution of the board of trustees.
    e. Employment by the retirement system shall  constitute  city-service
  for  the  purposes  of  this  chapter;  provided,  however, that nothing
  continued herein shall be construed as granting membership rights in the
  retirement system to a contractor  of  the  retirement  system  or  such

  contractor's  employees.  Employees  of  the  retirement system shall be
  deemed to be employees of the city of  New  York  for  the  purposes  of
  chapter thirty-five of the charter and title twelve of the code.
    f.  Whenever  the  assets  of  the  retirement  system  are drawn upon
  pursuant to the provisions of paragraph one of  subdivision  c  of  this
  section,  all  monies  so withdrawn shall be made a charge to be paid by
  each participating employer otherwise required to make contributions  to
  the  retirement  system  no  later  than the end of the fiscal year next
  succeeding the time period during which such  assets  were  drawn  upon,
  provided,  however, that where such charge is for assets so withdrawn in
  fiscal year two thousand four--two thousand five or in any  fiscal  year
  thereafter,  such  charge  shall  be  paid  by  each  such participating
  employer no later than the end of the second fiscal year succeeding  the
  time  period during which such assets were drawn upon. The actuary shall
  calculate and allocate to each such participating employer its share  of
  such  charge  by multiplying such charge by a fraction, the numerator of
  which shall consist of the total  salaries  of  the  employees  of  each
  participating   employer   as  of  the  June  thirtieth  succeeding  the
  withdrawal of assets and the denominator of which shall consist  of  the
  total  salaries  of  members  of  the  retirement system as of such June
  thirtieth. All charges to be paid pursuant to this subdivision shall  be
  paid  at  the  regular  rate  of  interest  utilized  by  the actuary in
  determining employer contributions to the retirement system pursuant  to
  the  provisions of paragraph two of subdivision b of section 13-638.2 of
  the code.
    g. All expenditures of the retirement system shall be subject to audit
  by the comptroller, who may  make  recommendations,  including  but  not
  limited  to,  procedures  designed to improve accounting and expenditure
  control. All expenditures of the retirement system shall be reported  to
  the  mayor's office of management and budget and the budgetary office of
  all participating employers.