Section 13-214. Definitions

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.
    * NB Amended Ch. 910/85 § 25, language juxtaposed per Ch. 907/85 § 14
    (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.
    * NB Amended Ch. 911/85 § 32, language juxtaposed per Ch. 907/85 § 14
    (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.
    * NB Amended Ch. 910/85 § 26, language juxtaposed per Ch. 907/85 § 14
    (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.
    * NB Added Ch. 910/85 § 28, language juxtaposed per Ch. 907/85 § 14
    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.
    * NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
    * 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 throught the  use  of  a  sex-differentiated
  mortality table.
    * NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
    * 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.
    * NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
    * 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 subdivision.
    (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.
    * NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
    * 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.
    * NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
    * 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.
    * NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
    * 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.
    * NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
    * 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.
    * NB Added Ch. 910/85 § 27, language juxtaposed per Ch. 907/85 § 14
    * 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  or
  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).
    * NB Expires per ch. 114/89 § 16
    * 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.
    * NB Expires per ch. 114/89 § 16
    * 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.
    * NB Expires per ch. 114/89 § 16