Section 13-335.2. Payments to fire officers' variable supplements fund for base fiscal years included in the period commencing on July first, nineteen hundred eighty-eight and ending on June thirtieth, nineteen hundred ninety-two

a.  For  the  purposes  of  this  section,   the  definitions of terms set forth in paragraphs two, four, six, eight, nine
  and  ten  of  subdivision  a  of section 13-335 of this subchapter shall
  apply to this section 13-335.2 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 included in the
  period beginning on July first, nineteen hundred eighty-eight and ending
  on June thirtieth, nineteen hundred ninety-two.
    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.
    (v)  The  remainder  resulting  from  the  subtraction  shall  be  the
  cumulative earnings  factor  as  of  June  thirtieth,  nineteen  hundred
  eighty-eight.
    4.  "Equity experience factor." (a) An amount (expressed as a positive
  or negative quantity) which shall be determined  for  each  base  fiscal
  year  in  accordance  with  the  method  of computation set forth in the
  succeeding subparagraphs of this paragraph four.
    (b) The amount of income earned by the pension fund  during  the  base
  fiscal year from its investment in equities shall be computed.
    (c)  To  each such amount of income for a base fiscal year there shall
  be added the capital gains, realized and  unrealized,  occurring  during
  such base fiscal year of reason of such investments.
    (d)   From   the   sum  resulting  from  the  addition  prescribed  by
  subparagraph (c) of this paragraph there shall be subtracted the capital
  losses, realized or unrealized, occurring during such base  fiscal  year
  by reason of such investment.
    (e)  In the event that any equity is sold during the base fiscal year,
  the expense  of  such  sale,  including  but  not  limited  to  broker's

  commissions,  shall  be  deducted  from capital gain or added to capital
  loss, in determining whether such sale produced  a  capital  gain  or  a
  capital loss and the amount thereof.
    (f)  (i) With respect to base fiscal years occurring during the period
  beginning on July first, nineteen hundred  eighty-eight  and  ending  on
  June  thirtieth,  nineteen  hundred ninety, the remainder resulting from
  the subtraction prescribed by subparagraph (d) of this  paragraph  shall
  be adjusted so that it equals the amount which it would have been in the
  absence  of  the  enactment of chapters five hundred eighty-one and five
  hundred eighty-three of the laws of nineteen hundred eighty-nine.
    (ii) With respect to each base fiscal  year  included  in  the  period
  beginning  on  July  first,  nineteen  hundred ninety and ending on June
  thirtieth, nineteen hundred ninety-two, the remainder resulting from the
  subtraction prescribed by subparagraph (d) of this  paragraph  shall  be
  adjusted  so  that  it equals the amount which it would have been in the
  absence of the enactment of chapter five  hundred  eighty-three  of  the
  laws of nineteen hundred eighty-nine.
    (iii) For the purpose of determining the entitlement, with  respect to
  any  base  fiscal  year  included in the period beginning on July first,
  nineteen hundred ninety and ending on June thirtieth,  nineteen  hundred
  ninety-two,  of  the fire officers' variable supplements fund to receive
  payment of any sum from the pension fund pursuant to this  section,  the
  cumulative earnings factor for such base fiscal year shall be calculated
  in the same manner as if (A) that part of this subparagraph, which part,
  prior  to  July  twenty-sixth,  nineteen hundred ninety-one, referred to
  chapter  five  hundred  eighty-one  of  the  laws  of  nineteen  hundred
  eighty-nine,   had  never  been  enacted  and  (B)  item  (ii)  of  this
  subparagraph  and  this  item  (iii),  as  such  items  were  in  effect
  immediately prior to such July twenty-sixth, had never been enacted.
    (g)  Any  adjustment required to be made pursuant to the provisions of
  subparagraph (f) of this paragraph  shall  be  computed  pursuant  to  a
  scientific  method  recommended to the board by the actuary and approved
  by the board; provided that if the board is unable to  approve,  by  the
  required  majority  vote,  any  such formula recommended by the actuary,
  such adjustment shall be  computed  pursuant  to  a  scientific  formula
  recommended  by  the  actuary  and  approved by an arbitrator designated
  pursuant to the procedure set forth in  subparagraph  (b)  of  paragraph
  eight of subdivision a of section 13-335 of this subchapter.
    (h)  The  equity  experience factor for such base fiscal year shall be
  the amount remaining after the adjustment  prescribed  by  subparagraphs
  (f) and (g) of this paragraph has been made.
    5.  "Hypothetical fixed income securities earnings". (a) The aggregate
  of the hypothetical interest yields computed pursuant  to  subparagraphs
  (b), (c) and (d) of this paragraph five.
    (b)  The  board  shall compute with respect to each investment made or
  maintained by the pension fund in an equity during the base fiscal year,
  the amount of interest which would    have  been  hypothetically  earned
  during  such fiscal year, under the methods of calculation prescribed in
  this paragraph five, if an amount equal to such investment  had  instead
  been  hypothetically  invested  in  fixed  income  securities  and  such
  securities had been held by such fund for a period (in the  base  fiscal
  year)  co-extensive with the period during which such equity was held by
  such fund in the base fiscal year.
    (c) For  the  purposes  of  this  section,  the  amount  of  any  such
  investment  in  an equity during the base fiscal year shall be deemed to
  be:
    (i) the market value of the equity on the first day of the base fiscal
  year, in the case of any such equity acquired by the pension fund  prior

  to  the  commencement  of  such fiscal year and held by such fund on the
  first day of such fiscal year; and
    (ii)  the  total  amount  paid  by  such  fund  to acquire the equity,
  including but not limited to broker's commissions and other expenses  of
  such  acquisition,  in  the case of any such equity which is acquired by
  such fund during the base fiscal year.
    (d) For the purposes of this section, the  amount  of  interest  which
  would  have  been  earned by the pension fund on such hypothetical fixed
  income securities during the base fiscal year shall be deemed to be  the
  amount obtained:
    (i)  by  multiplying  the  amount  of  the  investment in such equity,
  determined as prescribed by subparagraph (c) of this paragraph five,  by
  the assumed rate of interest for the base fiscal year; and
    (ii)  by  prorating  the  interest  so computed, in any case where the
  investment in such equity was maintained by the pension fund for a  part
  of the base fiscal year; and
    (iii) by multiplying the amount of interest computed for the full base
  fiscal  year  pursuant  to  items (i) and (ii) of this subparagraph by a
  fraction, the numerator of which is the amount designated as the  equity
  experience  factor with respect to such base fiscal year by subparagraph
  (h) of paragraph four of this subdivision b and the denominator of which
  is the remainder produced by the subtraction prescribed by  subparagraph
  (d) of such paragraph four with respect to such base fiscal year; and
    (iv)  by  adding  together  the  products  of all such multiplications
  performed pursuant to item (iii) of this subparagraph in relation to all
  such equities held by the pension fund during such fiscal year.
    6. "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.
    (b) In applying the provisions of this  paragraph  six  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".
    7. "FOVSF 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 pension fund with  respect  to  such
  base  fiscal year on behalf of all members of the uniformed force of the
  fire department who are fire officers, as of the last day of  such  base
  fiscal   year,   and  the  denominator  of  which  shall  be  the  total
  contributions made to the 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.
    8.  "Fire officers". (a) All members of the  uniformed  force  of  the
  fire department holding the rank of lieutenant or any position of higher
  rank  in such force, and (b) all pilots, marine engineers (uniformed) or

  assistant marine engineers (uniformed) who are members of the  New  York
  fire department pension fund subchapter two.
    9.  "Fire  officers'  variable  supplements  fund". The fire officers'
  variable  supplements  funds  established  by  subchapter  six  of  this
  chapter.
    c.  As  soon  as practicable after the close of each base fiscal year,
  but not later than August thirty-first of the current fiscal  year,  the
  board shall compute the FOVSF cumulative earnings factor with respect to
  such base fiscal year.
    d. If the FOVSF cumulative earnings factor for the base fiscal year is
  a  positive quantity, the pension fund, on or before August thirty-first
  of the current fiscal year, shall pay from its contingent  reserve  fund
  to  the  fire  officers'  variable  supplements  fund a sum equal to the
  amount of such factor.
    e. 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.