Section 13-281. Payment of supplemental benefits

a.  (1)  The variable
  supplements  fund  shall  pay  variable  supplements  to  pension   fund
  beneficiaries  in  accordance  with  the  provisions  of  the succeeding
  paragraphs of this subdivision a.
    (2) For calendar  years  succeeding  December  thirty-first,  nineteen
  hundred  ninety-two,  the  variable  supplements  fund,  subject  to the
  provisions of subparagraphs (i) and (ii) of paragraph one of subdivision
  b of this section, shall  pay  to  each  pension  fund  beneficiary  who
  retired  prior to July first, nineteen hundred eighty-eight, and to each
  person who, having  been  in  service  as  a  member  of  pension  fund,
  subchapter two on June thirtieth, nineteen hundred eighty-eight, retired
  for  service prior to January first, nineteen hundred ninety-three so as
  to become a pension fund beneficiary, variable supplements  payments  as
  follows:
    (i)  for  each  calendar year following calendar year nineteen hundred
  ninety-two, but not including the calendar  year  of  the  beneficiary's
  death, a single annual payment to be paid on or about December fifteenth
  of such year, as follows:
 
                   CALENDAR YEAR               SUPPLEMENT
                       1993                      $ 5,000
                       1994                      $ 5,500
                       1995                      $ 6,000
                       1996                      $ 6,500
                       1997                      $ 7,000
                       1998                      $ 7,500
                       1999                      $ 8,000
                       2000                      $ 8,500
                       2001                      $ 9,000
                       2002                      $ 9,500
                       2003                      $10,000
                       2004                      $10,500
                       2005                      $11,000
                       2006                      $11,500
                       2007 and
                       each calendar
                       year thereafter           $12,000
 
    (ii)  for  the  calendar  year  of  the beneficiary's death (for those
  pension fund beneficiaries who die on or after February first,  nineteen
  hundred  ninety-three),  an amount calculated by multiplying one-twelfth
  times the supplement applicable to the year of death, as provided in the
  chart set forth in subparagraph (i) of this paragraph two, by the number
  of full calendar months the beneficiary lived during that calendar  year
  prior to the month of his or her death.
    (3)  For  calendar  years  succeeding  December thirty-first, nineteen
  hundred ninety-two,  the  variable  supplements  fund,  subject  to  the
  provisions of subparagraphs (i) and (ii) of paragraph one of subdivision
  b  of  this section, shall pay to each person who, as of June thirtieth,
  nineteen hundred eighty-eight, was in service as  a  member  of  pension
  fund,  subchapter  two  and  who retired for service on or after January
  first, nineteen hundred ninety-three, so as to  become  a  pension  fund
  beneficiary, variable supplements payments as follows:
    (i)  for  the  calendar  year  of  retirement, an amount calculated by
  multiplying one-twelfth times the supplement applicable to the  year  of
  retirement,  as  provided for in the chart set forth in subparagraph (i)
  of paragraph two of this subdivision a, by the number of calendar months
  elapsing from and including  the  month  next  following  the  month  of

  retirement  to the end of such calendar year of retirement, such payment
  to be made on or about December fifteenth of such year;
    (ii)  for each calendar year following the year of retirement, but not
  including the calendar year of the beneficiary's death, a single  annual
  payment  equal  to the supplement provided for with respect to each such
  calendar year as set forth in the chart  in  subparagraph  (i)  of  such
  paragraph  two,  which  payment  shall  be  made  on  or  about December
  fifteenth of such year;
    (iii) for the calendar year of  the  beneficiary's  death  (for  those
  beneficiaries  who  die  on  or  after  February first, nineteen hundred
  ninety-three), an amount calculated by multiplying one-twelfth times the
  supplement applicable to the year of death, as provided for in the chart
  set forth in subparagraph (i) of such paragraph two, by  the  number  of
  full  calendar  months  the  beneficiary lived during that calendar year
  prior to the month of his or her death; and
    (iv) if the retirement and death of a beneficiary occur  in  the  same
  calendar  year,  aggregate  payments  under  subparagraphs (i) and (iii)
  above shall be made only in respect to  calendar  months  following  the
  month of retirement and preceding the month of death.
    (4)  The  variable  supplements  fund,  subject  to  the provisions of
  subparagraphs (i) and (iii) of paragraph one of subdivision  b  of  this
  section,  shall  pay  to  each  person who became or becomes a member of
  pension fund, subchapter two on or after July  first,  nineteen  hundred
  eighty-eight, and who retires for service so as to become a pension fund
  beneficiary, variable supplements payments as follows:
    (i)  (A)  subject  to  the  provisions  of  subparagraph  (iv) of this
  paragraph, for the calendar year of retirement,  where  such  retirement
  occurs before January first, two thousand eight, an amount calculated by
  multiplying  one-twelfth times the sum of twenty-five hundred dollars by
  the number of calendar months elapsing from and including the month next
  following the month of retirement to the end of such  calendar  year  of
  retirement,  such  payment  to be made on or about December fifteenth of
  such year;
    (B) subject to the provisions of subparagraph (iv) of this  paragraph,
  for  the calendar year of retirement, where such retirement occurs on or
  after January  first,  two  thousand  eight,  an  amount  calculated  by
  multiplying  one-twelfth times the sum of twelve thousand dollars by the
  number of calendar months elapsing from and  including  the  month  next
  following  the  month  of retirement to the end of such calendar year of
  retirement, such payment to be made on or about  December  fifteenth  of
  such year;
    (ii)  subject  to  the  provisions  of  subparagraph  (ii-a)  of  this
  paragraph, for each calendar year following the year of retirement,  but
  not  including  the  calendar  year of the beneficiary's death, a single
  annual payment to be paid on or about December fifteenth of  such  year,
  as follows:
 
  CALENDAR YEAR OF
  ANNIVERSARY OF
  RETIREMENT (references
  hereinafter to "anniversary
  year" mean calendar year
  of anniversary)               SUPPLEMENT
  First anniversary            The sum of (1) a lower-based component
  year                         equal to one-twelfth of the base sum of
                               $2,500 multiplied by the number of whole
                               calendar months from and including the
                               first month of such calendar year to and

                               including the month in which the
                               anniversary of the date of retirement
                               occurs, and (2) a higher-based component
                               equal to one-twelfth of the base sum of
                               $3,000 multiplied by the number of months
                               remaining in such calendar year
  Second anniversary           The sum of a lower-based component and a
  year and each succeeding     higher-based component computed pursuant
  anniversary year to and      to the formula, above, for the first
  including the nineteenth     anniversary year, except that for each
  anniversary year             such anniversary year succeeding the
                               first, the lower-based component shall
                               be computed on a base sum $500 higher
                               than the base sum required to be used in
                               computing the lower-based component for
                               the next preceding anniversary year and
                               the higher-based component shall be
                               computed on a base sum $500 higher than
                               the base sum required to be used in
                               computing the higher-based component for
                               such next preceding anniversary year
 
  Twentieth anniversary        $12,000
  year and each succeeding
  anniversary year
 
    (ii-a)  for  each  calendar  year  which occurs both after the year of
  retirement and after December thirty-first, two thousand seven (but  not
  including the calendar year of the beneficiary's death), notwithstanding
  any  provision  of  subparagraph  (ii) of this paragraph which otherwise
  would be applicable, a single annual payment of twelve thousand dollars,
  which payment (A) shall be in lieu of any other amount  which  otherwise
  would  be  payable  under  subparagraph  (ii) of this paragraph for such
  calendar year and (B) shall be made on or about  December  fifteenth  of
  such year;
    (iii) (A) for the calendar year of the beneficiary's death, where such
  death  occurs  both  after  the  year of retirement and prior to January
  first, two thousand eight, an amount calculated in accordance  with  the
  formula  which  would apply to the year of death under subparagraph (ii)
  of this paragraph if such death had not occurred, but  prorated  on  the
  basis of the number of full calendar months the beneficiary lived during
  the year of death prior to the month of his or her death;
    (B) for the calendar year of the beneficiary's death, where such death
  occurs  both  after  the year of retirement and in the calendar year two
  thousand eight  or  thereafter,  an  amount  calculated  by  multiplying
  one-twelfth  of  twelve  thousand  dollars  by  the number of months the
  beneficiary lived during the year of death prior to the month of his  or
  her death; and
    (iv)  if  the  retirement and death of a beneficiary occur in the same
  calendar year, aggregate payments under subparagraphs (i) and  (iii)  of
  this  paragraph  shall  be  made  only  in  respect  to  calendar months
  following the month of retirement and preceding the month of death.
    b. (1) (i) Subject to the provisions of subparagraphs (ii), (iii)  and
  (iv)  of this paragraph one, on or after January first, nineteen hundred
  ninety-three, where a pension fund beneficiary is  entitled  to  receive
  variable supplements payments pursuant to subdivision a of this section,
  and  that  beneficiary  is  also  entitled  to  receive  a  supplemental
  retirement allowance or cost-of-living adjustment pursuant to any  other

  provision  of  law  enacted  on or after January first, nineteen hundred
  ninety-three (hereinafter referred to as "other supplemental  retirement
  allowance"),  the  amount  of  such  variable  supplement  payable for a
  calendar  year or a part of such calendar year to such beneficiary shall
  be reduced by the amount of such other supplemental retirement allowance
  that is payable to such  beneficiary  to  the  extent  that  such  other
  supplemental  retirement  allowance is attributable to the same calendar
  year or part of such calendar year.
    (ii) For any pension fund beneficiary referred to in paragraph two  or
  paragraph  three  of  subdivision  a  of  this  section,  whose variable
  supplements payments are being reduced pursuant to subparagraph  (i)  of
  this  paragraph one because such other supplemental retirement allowance
  is also payable to that beneficiary, the reduction provided for in  such
  subparagraph  (i) shall cease as to such beneficiary on the later of (A)
  the first day of the month  next  following  the  month  in  which  such
  beneficiary  attains  age  sixty-two; or (B) January first, two thousand
  seven.
    (iii) For any pension fund beneficiary referred to in  paragraph  four
  of  subdivision  a  of this section, whose variable supplements payments
  are being reduced pursuant to subparagraph (i)  of  this  paragraph  one
  because  such other supplemental retirement allowance is also payable to
  that beneficiary, the reduction provided for in  such  subparagraph  (i)
  shall  cease as to such beneficiary on the later of (A) the first day of
  the month next following the month in which such beneficiary attains age
  sixty-two; or (B) the earlier of (1) the first day  of  the  month  next
  following   the  month  in  which  the  nineteenth  anniversary  of  the
  retirement of such beneficiary occurs or (2) January first, two thousand
  eight.
    (iv) In any case where the reduction of variable supplements  payments
  to  a  pension fund beneficiary has ceased pursuant to subparagraph (ii)
  or subparagraph (iii) of this paragraph one, that beneficiary,  for  the
  purpose  of determining his or her eligibility for and the amount of any
  other supplemental retirement allowance, shall be deemed to have retired
  on the date  of  the  cessation  of  such  reduction  specified  in  the
  applicable provisions of such subparagraph (ii) or subparagraph (iii).
    (v)  The  payments  of  all  variable  supplements payable pursuant to
  subdivision a of this section are hereby made obligations of  the  city,
  and  the  city  hereby guarantees that such supplements shall be paid to
  all eligible pension fund beneficiaries.
    (2) The legislature hereby  declares  that  the  variable  supplements
  authorized by this subchapter and the granting and receipt thereof:
    (i)  shall  not  create  or  constitute  membership  in  a  pension or
  retirement system and shall not create or constitute a contract with any
  pension fund beneficiary or with any member of pension fund,  subchapter
  one or pension fund, subchapter two; and
    (ii) shall not constitute a pension or retirement allowance or benefit
  under  pension  fund,  subchapter one or pension fund, subchapter two or
  otherwise.
    (3) Except as otherwise provided  in  sections  13-232,  13-232.2  and
  13-232.3  of  this  chapter,  nothing contained in this subchapter shall
  create or impose any obligation on the part of pension fund,  subchapter
  one  or  pension fund, subchapter two or the funds or monies thereof, or
  authorize such funds or monies  to  be  appropriated  or  used  for  any
  payment under this subchapter or for any purpose thereof.
    c.  Pension  fund  beneficiaries shall be eligible to receive variable
  supplements pursuant  to  this  subchapter,  notwithstanding  any  other
  provision of law to the contrary.

    d.  The monies or assets of the variable supplements fund shall not be
  used for  any  purpose,  other  than  payment  of  variable  supplements
  pursuant  to  the provisions of this subchapter, except that they may be
  invested as authorized by section 13-283 of this subchapter.
    e.  In addition to the payments set forth in paragraphs three and four
  of subdivision a of this section, there shall be paid  to  each  pension
  fund beneficiary, on or about the December fifteenth next succeeding his
  or  her  date of retirement, an amount equal to the variable supplements
  payments, subject to the provisions of subparagraphs  (i)  and  (ii)  of
  paragraph  one  of  subdivision  b of this section, that he or she would
  have received, had he or she retired on the date of his or her  earliest
  eligibility  for service retirement, in the period measured from (1) the
  later of (i) such earliest eligibility date and (ii)  January  1,  2002,
  and (2) his or her date of retirement.