Section 13-133. Guarantee of funds

a. Regular interest, charges payable,
  the creation and maintenance of reserves in the contingent reserve  fund
  and  the  pension  fund and the maintenance of annuity reserves, pension
  reserves and reserves-for-increased-take-home-pay  as  provided  for  in
  this     chapter     and     the     payment     of     all    pensions,
  pensions-providing-for-increased-take-home-pay,  annuities,   retirement
  allowances, refunds, death benefits and any other benefits granted under
  the provisions of this chapter, are hereby made obligations of the city.
  All income, interest and dividends derived from deposits and investments
  authorized  by  this chapter shall be used and disposed of in the manner
  prescribed by subdivision b of this section.  Upon  the  basis  of  each
  actuarial  determination and appraisal provided for in this chapter, the
  board shall prepare and submit to the director of management and  budget
  an  itemized estimate of the amounts necessary to be appropriated by the
  city to the various funds to provide for  payment  in  full  during  the
  ensuing  fiscal year of all such obligations of the city accruing during
  the ensuing fiscal year. There shall be included annually in the  budget
  a  sum  sufficient  to  provide  for  such  obligations of the city. The
  comptroller shall pay the  sums  so  provided  into  the  various  funds
  provided for by this chapter, subject to the provisions of subdivision b
  of this section. Nothing contained in this section shall be construed as
  preventing  the  payments,  if  any,  required  to  be  made pursuant to
  sections 13-193 (relating to the  transit  police  variable  supplements
  funds),  13-193  (relating  to  the  housing police variable supplements
  funds), 13-193.2,  13-193.3,  13-193.4,  13-193.5,  13-193.7,  13-193.6,
  13-195 and 13-195.1 of this chapter.
    b.  (1) Subject to the provisions of paragraphs two, three and four of
  this subdivision,  all  income,  interest  and  dividends  derived  from
  deposits  and  investments  authorized  by  this  chapter, which income,
  interest and dividends were heretofore or are hereafter received  during
  any city fiscal year commencing on or after July first, nineteen hundred
  eighty,  shall be used (in accordance with the respective shares of such
  income, interest and  dividends  attributable  to  the  city  and  other
  obligors  required  to  pay  public  employer contribution on account of
  members) in such fiscal year for the purposes hereinafter  specified  in
  this  paragraph  (to the extent that such income, interest and dividends
  are sufficient for such purposes),  in  the  order  of  priority  herein
  stated, as follows:
    (A)  first, to pay into the funds of the retirement system the amounts
  of regular interest which are required to be paid  into  such  funds  in
  such fiscal year by reason of being required to be allowed to such funds
  pursuant to the provisions of section 13-135 of this chapter, and to pay
  into  such funds the amounts of supplementary interest, if any, required
  to be so paid in such fiscal year under  the  applicable  provisions  of
  such  section,  and  to pay into the annuity savings fund the amounts of
  special interest, if any, required to be so paid  in  such  fiscal  year
  under  the  applicable  provisions  of such section, and to pay into the
  contingent reserve fund the amounts  of  additional  interest,  if  any,
  required  to be paid in such fiscal year under the applicable provisions
  of such section;
    (B) second, to pay into the contingent reserve fund the amount of  any
  losses  in  excess  of  gains (i) which net losses the retirement system
  sustained  during  such  fiscal  year  by  reason  of  sales  or   other
  dispositions of securities, and (ii) for which net losses the retirement
  system  is  required  to be reimbursed in such fiscal year, and (iii) to
  which net losses section 13-704 of this  title,  relating  to  graduated
  crediting of gains and amortization of losses on dispositions of certain
  securities, does not apply;

    (C)  third, if the total amount of such income, interest and dividends
  received during such fiscal year  is  in  excess  of  the  total  amount
  required  to  make,  in  such  fiscal  year,  the payments prescribed by
  subparagraphs (A) and (B) of this paragraph, the amount of  such  excess
  shall  be  paid into the contingent reserve fund and shall become a part
  of the assets of such fund.
    (2)  Notwithstanding  the  provisions  of  paragraph   one   of   this
  subdivision  or any other law to the contrary, any such income, interest
  or dividends which are received by the retirement system may be used for
  the purpose specified in section  13-705  of  this  title  (relating  to
  expenses  incurred  in  the  acquisition,  management  and protection of
  investments), regardless of when received  and  prior  to  use  for  the
  purposes stated in such paragraph one.
    (3)  (A)  Notwithstanding  any  other provision of this section or any
  other law to the contrary, the term "all income, interest and  dividends
  derived from deposits and investments", as used in paragraph two of this
  subdivision  (as  such  subdivision  was  in effect prior to July first,
  nineteen hundred eighty), shall be construed, in relation to disposition
  of all income, interest and dividends received by the retirement  system
  in  each  of  the  city's nineteen hundred seventy-six--nineteen hundred
  seventy-seven  and  nineteen  hundred  seventy-seven--nineteen   hundred
  seventy-eight  obligations  fiscal  years  (as  such  fiscal  years were
  defined by paragraph one of this subdivision prior to such July  first),
  as  meaning  the  remainder  obtained  by  subtracting from such income,
  interest and dividends (as  they  were  after  deducting  therefrom  the
  amount  of  any  expenses  charged thereto pursuant to the provisions of
  section 13-705 of this title) the sum of (i)  the  amounts  of  regular,
  supplementary  and special interest required to be allowed and paid into
  the appropriate funds of the  retirement  system  in  such  fiscal  year
  pursuant  to the applicable provisions of section 13-135 of this chapter
  and (ii) the amount of any losses in  excess  of  gains  (1)  which  net
  losses  were  sustained by the retirement system during such fiscal year
  and which net  losses  were  sustained  by  reason  of  sales  or  other
  dispositions  of  securities, and (2) to which net losses the provisions
  of section 13-704 of this title do not apply.
    (B)  for  the  purposes  of  the  order  of  priority  governing   the
  disposition of such remainder in the payment fiscal year with respect to
  each such obligations fiscal year (as such disposition was prescribed by
  the provisions of this subdivision as in effect during each such payment
  fiscal  year)  the  provisions  of  subparagraphs  (A)  and  (B) of such
  paragraph two shall be deemed to have been inapplicable and the order of
  priority for such disposition shall be  first,  the  use  set  forth  in
  subparagraph  (C)  of  such  paragraph,  second,  the  use  set forth in
  subparagraph (D)  of  such  paragraph,  third,  the  use  set  forth  in
  subparagraph  (E)  of  such  paragraph  and fourth, the use set forth in
  subparagraph (F) of such paragraph, as such subparagraphs were in effect
  during such payment fiscal year.
    (4) (a) All income, interest and  dividends  which  are  derived  from
  deposits  and  investments  authorized  by  this  chapter and which were
  received    during    each    of    the    city's    nineteen    hundred
  seventy-eight--nineteen   hundred   seventy-nine  and  nineteen  hundred
  seventy-nine--nineteen  hundred  eighty  fiscal   years   shall   (after
  deducting  therefrom  any  amounts  chargeable  thereto  pursuant to the
  provisions of section 13-705 of this title) be used (in accordance  with
  the   respective   shares   of   such  income,  interest  and  dividends
  attributable to the city and  other  obligors  required  to  pay  public
  employer  contributions  on account of members) in each such fiscal year

  for the purposes hereinafter stated in this  subparagraph  (a),  in  the
  order of priority herein stated, as follows:
    (A)  first,  (i)  to  pay  into the funds of the retirement system the
  amounts of regular interest which are required  to  be  paid  into  such
  funds  in  such  fiscal year wherein such income, interest and dividends
  were received, which interest is so payable by reason of being  required
  to  be  allowed  to  such  funds  in  such  fiscal  year pursuant to the
  provisions of section 13-135 of this chapter,  (ii)  to  pay  into  such
  funds  the  amounts  of supplementary interest required to be so paid in
  such fiscal year under the applicable provisions of  such  section,  and
  (iii)  to  pay  into  the  annuity  savings  fund the amounts of special
  interest required to be so paid in such fiscal year under the applicable
  provisions of such section, and (iv) to pay into the contingent  reserve
  fund  the  amounts  of  additional  interest required to be paid in such
  fiscal year under the applicable provisions of such section;
    (B) second, to pay into the contingent reserve fund the amount of  any
  losses  in  excess  of  gains (i) which net losses were sustained by the
  retirement system during such fiscal year in which such income, interest
  and dividends were received and  which  net  losses  were  sustained  by
  reason  of sales or other dispositions of securities, and (ii) for which
  net losses the retirement system is required to be  reimbursed  in  such
  fiscal year, and (iii) to which net losses section 13-704 of this title,
  relating  to  graduated crediting of gains and amortization of losses on
  dispositions of certain securities, does not apply; and
    (C) third, to pay into the contingent reserve fund the amount, if any,
  by which,
    (i) the total of all losses  which  the  retirement  system  sustained
  during  such  fiscal  year  by  reason of sales of securities within the
  meaning of section 13-704 of this title and which the responsible public
  employer, as defined in paragraph  four  of  subdivision  a  of  section
  13-704  of  this title, would otherwise be required to amortize pursuant
  to such section, exceeds
    (ii) the total of all gains which were  realized  during  such  fiscal
  year by reason of sales of securities within the meaning of such section
  and  which would otherwise be required by such section to be credited in
  favor of the responsible public employer in installments.
    (b) If the  total  amount  of  such  income,  interest  and  dividends
  received  during  each such fiscal year referred to in subparagraph a of
  this paragraph four is in excess of the total amount required  to  make,
  in  the  same fiscal year, the payments prescribed by items (A), (B) and
  (C) of such subparagraph (a), the amount of such excess  shall  be  paid
  into  the  contingent  reserve  fund as of June thirtieth of such fiscal
  year and shall become a part of the assets of such fund as of such date.
    c. (1) (A) The comptroller shall  make  monthly  payments,  in  twelve
  equal installments, with respect to obligations which the city incurs to
  pay sums to the retirement system.
    (B)  The  New  York  city  health and hospitals corporation shall make
  monthly  payments,  in  twelve  equal  installments,  with  respect   to
  obligations which it incurs to pay sums to the retirement system.
    (C) The New York city school construction authority shall make monthly
  payments,  in  twelve  equal  installments,  with respect to obligations
  which it incurs to pay sums to the retirement system.
    (D) The New York city municipal water  finance  authority  shall  make
  monthly   payments,  in  twelve  equal  installments,  with  respect  to
  obligations, if any, which it incurs  to  pay  sums  to  the  retirement
  system.

    (E)  The  New  York  city  water board shall make monthly payments, in
  twelve equal installments, with respect to obligations, if any, which it
  incurs to pay sums to the retirement system.
    (F)  The  New  York  city  transitional  finance  authority shall make
  monthly  payments,  in  twelve  equal  installments,  with  respect   to
  obligations which it incurs to pay sums to the retirement system.
    (2) In the city's nineteen hundred eighty--nineteen hundred eighty-one
  fiscal  year  and in each city fiscal year thereafter, the equal monthly
  payments shall be in respect of obligations which accrue in such  fiscal
  year  and shall be made in such fiscal year on or before the last day of
  each month.
    (3) In the city's nineteen hundred eighty--nineteen hundred eighty-one
  fiscal year and in each city fiscal year thereafter, the New  York  city
  off-track   betting   corporation,  the  triborough  bridge  and  tunnel
  authority and the New York  city  housing  authority  shall  make  their
  respective  annual  contributions to the retirement system in respect of
  obligations  which  accrue  in  such  fiscal   year   by   paying   such
  contributions on or before January first of such fiscal year.
    (4)  The  board  of  trustees  of  the retirement system may waive the
  requirements of  the  foregoing  provisions  of  this  subdivision  with
  respect to time of payment to such system, provided that any such waiver
  of  time  of  payment  in  any  instance  shall not apply to the time of
  subsequent payments unless there shall be a subsequent waiver.