Section 13-216. Board of trustees

a. The police pension fund 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 fund and for
  the control and disposition thereof.  The  provisions  of  sections  one
  thousand  forty-two,  one  thousand forty-three, one thousand forty-four
  and one thousand forty-five of the New York city charter  shall  not  be
  construed  to  apply to the adoption of such rules and regulations. Such
  board shall consist of:
    1. The police commissioner who shall be chairperson of the  board  and
  who shall be entitled to cast one and one-half votes.
    2.  The  comptroller of the city who shall be entitled to cast one and
  one-half votes.
    3. A representative of the mayor who shall be appointed by  the  mayor
  and who shall be entitled to cast one and one-half votes.
    4.  The  director of finance of the city who shall be entitled to cast
  one and one-half votes.
    5. The president of the patrolmen's benevolent association of the city
  of New York who shall be entitled to cast one vote.
    6. The first vice-president of the patrolmen's benevolent  association
  of the city of New York who shall be entitled to cast one vote.
    7. The second vice-president of the patrolmen's benevolent association
  of the city of New York who shall be entitled to cast one vote.
    8.  The  chairperson  of  the  board  of  trustees  of the patrolmen's
  benevolent association of the city of New York who shall be entitled  to
  cast one vote.
    9.  The president of the captains' endowment association of the police
  department of the city of  New  York  who  shall  be  entitled  to  cast
  one-half vote.
    10.  The  president of the lieutenants' benevolent association, police
  department, city of New York who shall  be  entitled  to  cast  one-half
  vote.
    11. The president of the sergeants' benevolent association of the city
  of New York who shall be entitled to cast one-half vote.
    12. The president of the detectives' endowment association of the city
  of New York who shall be entitled to cast one-half vote.
    13.  (i)  Where,  during any six month period during a fiscal year, as
  defined in subdivision three of section 13-268 of the code,  the  equity
  portion  of  the  assets  of  the  pension  fund is less than forty-five
  percent, subparagraph (ii) of this paragraph shall be  effective  during
  the succeeding fiscal year.
    (ii) Two investment representatives, one of whom shall be appointed by
  the mayor and one of whom shall be appointed by the comptroller upon the
  occurrence  of  the  condition  specified  in  subparagraph  (i) of this
  paragraph. Each such representative shall be entitled to cast  one  vote
  only in relation to determinations of the board:
    (A)  as to whether the assets of the pension fund shall be invested in
  equities or fixed income securities and the proportion of the assets  of
  the pension fund to be invested in equities and fixed income securities;
  and
    (B)  as to the identity, nature, character and amounts of the equities
  (within  the  proportion  as  determined  under   item   (A)   of   this
  subparagraph) to be acquired, held, sold, disposed of or otherwise dealt
  with by the pension fund; and
    (C)  as  to any steps necessary to effectuate any of the functions set
  forth in items (A) and (B) of this subparagraph; and
    (D) as to delegation by the board, pursuant to law, of  the  functions
  described in items (A), (B) and (C) of this subparagraph.

    b.  Subject  to the provisions of subdivision b-1 and subdivision f of
  this section, every act of the board of trustees shall be by  resolution
  which  shall be adopted only by a vote of at least seven-twelfths of the
  whole number of votes authorized to be cast by all  of  the  members  of
  such board.
    b-1.  Every act of the board of trustees in relation to the investment
  matters referred to in paragraph  thirteen  of  subdivision  a  of  this
  section  shall be by resolution which shall be adopted only by a vote of
  at least eight-fourteenths of the whole number of votes authorized to be
  cast by all of the members of  the  board  empowered  to  vote  on  such
  investment matters.
    c.  The police commissioner shall appoint an executive director of the
  police pension fund, provided, however, that if  such  designee  of  the
  police commissioner is not a member of the uniformed force of the police
  department,  the  board  of trustees shall approve such appointment. The
  executive director of the police pension fund shall perform such  duties
  as  may be conferred upon him or her by the chairperson of the board, by
  resolution passed by the board, or by law.
    d. Any member of the board, referred to  in  paragraphs  five  through
  twelve, respectively, of subdivision a of this section, shall be members
  of  the  uniformed  force  and  may authorize in writing at any time any
  other officer of the respective associations to represent him or her  on
  such  board  in the event of his or her absence or disability, provided,
  however,  that  the  by-laws  or   constitution   of   such   respective
  associations  provide  for  the  designation of a representative in such
  event.
    e. 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,  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 pension
  fund and may draw upon the assets of  the  pension  fund  to  fund  such
  budget,  subject  to the provisions of paragraphs two, three, four, five
  and six of this subdivision and subdivisions f,  g,  h  and  i  of  this
  section.  The  provisions of this section shall not be applicable to the
  payment of investment expenses pursuant to section 13-705 of this  title
  and nothing contained herein shall be construed as abolishing, limiting,
  or  modifying  any  power  of  the  board of trustees to provide for the
  payment of investment expenses pursuant to section 13-705 of this title.
    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  paragraph  one  or  two  of  this
  subdivision may be modified 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. (i) The pension fund shall be considered an  entity  separate  from
  the  city  of  New  York police department. The board of trustees of the
  pension fund shall work  closely  with  the  city  of  New  York  police
  department.
    (ii)  The provisions of chapter seventeen of the New York city charter
  shall continue to apply to the police pension fund and such  fund  shall
  constitute  an  agency  for  the  purposes of such chapter. 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 police
  pension fund shall be procured as prescribed in chapter thirteen of  the
  New  York  city 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 New York  city
  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.
    f.  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 paragraph one  or  three
  of  subdivision  e  of this section shall require the concurrence of the
  comptroller and the representative of the mayor.  This  provision  shall
  only  apply  to  this  subdivision and nothing contained herein shall be
  construed to apply to any other vote of the  board.  No  assets  of  the
  police  pension  fund  shall be drawn upon pursuant to the provisions of
  paragraph one of subdivision e of this section unless  authorized  by  a
  budget  or  budget  modification  established  by such resolution of the
  board of trustees.
    g. Employment by the police pension fund shall constitute city-service
  for the purposes of this subchapter for those employees that are members
  of the fund pursuant to section 13-215 of this subchapter; for all other
  employees, employment by the pension fund shall constitute city  service
  for  the  purposes  of  chapter  one  of  title  thirteen  of this code;
  provided, however, that nothing contained herein shall be  construed  as
  granting  membership rights in the pension fund or any retirement system
  to a contractor of such fund or such contractor's  employees.  Employees
  of  the  pension fund shall be deemed to be employees of the city of New
  York for the purposes of  chapter  thirty-five  of  the  New  York  city
  charter and title twelve of this code.
    h.  Whenever the assets of the pension fund are drawn upon pursuant to
  the provisions of paragraph one of subdivision e  of  this  section  all
  monies  so  withdrawn  shall be made a charge to be paid by the employer
  otherwise required to make contributions to the police pension  fund  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  such  employer  no later than the end of the second
  fiscal year succeeding the time period  during  which  such  assets  are
  drawn  upon.  The  actuary shall calculate such charge to be paid by the
  employer. 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 pension fund pursuant  to  the
  provisions of paragraph two of subdivision b of section 13-638.2 of this
  title.
    i. The funds withdrawn from the pension fund shall not be utilized for
  any  purpose other than the budget established by the board of trustees.
  All expenditures of the pension fund 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 pension fund shall be reported to the mayor's office

  of management and budget and the budgetary office of  the  city  of  New
  York police department.