Section 13-232.1. Payments to police officer's variable supplements fund for base fiscal years commencing on or after July first, nineteen hundred eighty-eight

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.