Section 13-335.1. Payments to firefighters' 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 13-335 of this subchapter shall apply to
  this section 13-335.1  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  13-335  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
  13-335.
    (ii) The cumulative distributions of transferable earnings  for  prior
  base  fiscal years (as defined in paragraph thirteen of subdivision a of
  such section 13-335) shall be computed pursuant to such  section  13-335
  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  13-335),  if any, for the
  nineteen hundred eighty-seven--nineteen hundred eighty-eight base fiscal
  year, determined pursuant to such section 13-335, 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 13-335 of this
  subchapter, as made applicable to this section 13-335.1 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. "FVSF 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  fire  department  pension  fund
  subchapter  two  with  respect to such base fiscal year on behalf of all
  members  of  the  uniformed  force  of  the  fire  department  who   are
  firefighters,  fire  marshals  (uniformed) and wipers (uniformed), as of
  the last day of such base fiscal year,  and  the  denominator  of  which
  shall  be  the  total contributions made to such fire department pension
  fund with respect to such base fiscal year on behalf of all persons  who
  are members of the uniformed force of the fire department as of the last
  day of such base fiscal year.
    7.  "FVSF unfunded accrued liability". In any case where the valuation
  of assets and liabilities of the firefighters' variable supplements fund
  by the actuary pursuant to subdivision  e  of  section  13-384  of  this
  chapter  shows  that  for  any base fiscal year, such liabilities exceed
  such assets, the term "FVSF 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. "Firefighter". A member of either this pension  fund  or  the  fire
  department  pension  fund provided for in subchapter one of this chapter
  who, at the time of retirement for service, was a  firefighter  and  was
  not  a  fire officer as defined in subdivision five of section 13-392 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 FVSF cumulative earnings factor with respect to
  such base fiscal year.
    d. If the FVSF 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 firefighters'  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 FVSF
  cumulative earnings factor for such base fiscal year referred to in such
  subdivision d or (2) the FVSF 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  FVSF unfunded accrued liability for such base

  fiscal year,  regardless  of  the  amount  and  character  of  the  FVSF
  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.