Section 13-334. Guarantee of funds

a. Regular interest, charges payable, the
  creation and maintenance of reserves in the contingent reserve fund, the
  retirement  allowance  reserve fund and the pension reserve fund and the
  maintenance of retirement allowance reserves with  respect  to  original
  plan  members,  annuity  reserves,  pension  reserves, dependent benefit
  reserves and reserves-for-increased-take-home-pay  as  provided  for  in
  this           subchapter,          maintenance          of          the
  accumulation-for-increased-take-home-pay  and   the   payment   of   all
  retirement allowances payable to or on account of original plan members,
  pensions,   pensions-providing-for-increased-take-home-pay,   annuities,
  retirement allowances payable to or on account of improved benefits plan
  members, refunds, death  benefits,  dependent  benefits  and  any  other
  benefits  granted  under  the  provisions of this subchapter, are hereby
  made obligations of the city. Except as otherwise provided  in  sections
  13-335,  13-335.1,  13-335.2 and 13-335.3 of this subchapter and section
  13-391.1 of this chapter, all income,  interest  and  dividends  derived
  from  deposits  and  investments  authorized by this subchapter shall be
  used and disposed of in the manner prescribed by subdivision b  of  this
  section;  provided,  however,  that  nothing  contained in this sentence
  shall diminish or impair the obligations of the city provided for by the
  preceding sentence of  this  subdivision  a.  Upon  the  basis  of  each
  actuarial  determination  and appraisal provided for in this subchapter,
  the commissioner shall prepare pursuant to section one hundred twelve of
  the charter 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 annually be included 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  subchapter;  subject  to  the  provisions  of
  subdivision b of this section.
    b. (1) Subject to the provisions of paragraph two of this  subdivision
  b,  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  (after  payment therefrom of the sum, if any, required to be paid
  pursuant to sections 13-335, 13-335.1, 13-335.2  and  13-335.3  of  this
  subchapter  and section 13-391.1 of this chapter) be used in such fiscal
  year for the purposes hereinafter specified in this  paragraph  one  (to
  the  extent  that such income, interest and dividends are sufficient for
  such purposes), in the order or priority herein stated, as follows:
    (A) first, to pay into the funds of the pension fund  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 13-337 of this subchapter, 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 pension fund
  sustained  during  such  fiscal  year  by  reason  of  sales  or   other

  dispositions  of  securities,  and (ii) for which net losses the pension
  fund 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  payment prescribed by
  subparagraphs (A) and (B) of this paragraph  one,  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 pension fund 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) Subject to the provisions of paragraph four of this subdivision b,
  all  income, interest and dividends which were 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 be used (after payment therefrom of the sum, if any,
  required to be paid pursuant to section 13-335 of  this  subchapter)  in
  each  such  fiscal  year  for  the  purposes  hereinafter stated in this
  paragraph three, in the order of priority herein stated, as follows:
    (A) first, to pay into the funds of the pension fund  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
  13-337 of this subchapter; and
    (B) second, to pay into the retirement allowance accumulation fund the
  amount  of  any  losses  in  excess  of  gains (i) which net losses were
  sustained by the pension fund 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 pension fund 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, 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 the same fiscal year, the payments prescribed by
  subparagraphs (A) and (B) of this paragraph three, 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.
    (4)   Notwithstanding  the  provisions  of  paragraph  three  of  this
  subdivision b or any  other  law  to  the  contrary,  any  such  income,
  interest  or dividends which were received by the pension fund in either
  such fiscal year referred to in such paragraph three 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)
  prior to use for the purposes stated in such paragraph three.

    c. (1) The comptroller shall make monthly payments,  in  twelve  equal
  installments,  with  respect to obligations which the city incurs to pay
  sums to the pension fund.
    (2)  The  equal  monthly payments in each city fiscal year 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)  The  board  of  trustees  of  the  pension  fund  may  waive  the
  requirements of  the  foregoing  provisions  of  this  subdivision  with
  respect  to  time of payment to such fund, 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.