Section 13-501. Definitions

The following words and phrases as used in this
  chapter, unless a different meaning is plainly required by the  context,
  shall have the following meanings:
    1.  "Retirement  system" shall mean the arrangement for the payment of
  retirement allowances, under the provisions of this chapter.
    2.  "Retirement  association"  shall  mean  the  teachers'  retirement
  association provided for in section 13-503 of this chapter.
    3.  "Retirement  board"  shall  mean  the  teachers'  retirement board
  provided for in section 13-507 of this chapter.
    4. "Medical board" shall mean the board of physicians provided for  in
  section 13-519 of this chapter.
    5. "Board of education" shall mean the board of education of the city.
    6.  "Public  school" shall mean any class, school, high school, normal
  school, training school,  vocational  school,  truant  school,  parental
  school,  and  all  schools  or  classes  conducted  under  the order and
  superintendence of the board of education, and the  schools  or  classes
  maintained  by the department of social services or by the department of
  correctional services in pursuance of the rules established by the board
  of education, or by the  commissioner  of  social  services  or  by  the
  commissioner  of  correction  for  schools or classes maintained by such
  commissioners, respectively.
    7. (a)  "Teacher"  shall  mean  the  superintendent  of  schools,  the
  associate  superintendents,  the assistant superintendents, the director
  and the assistant director of the divisions of reference  and  research,
  the  director  and  the  assistant directors of the bureau of compulsory
  education, school census and  child  welfare,  attendance  teachers  and
  specially certificated attendance officers who are first employed by the
  New  York  city board of education on or after September first, nineteen
  hundred sixty-eight,  attendance  teachers  and  specially  certificated
  attendance  officers  who  were  members  of  the New York city board of
  education retirement system and who, on or before December thirty-first,
  nineteen hundred sixty-nine, gave notice  to  said  board  of  education
  retirement  system  of  their intention to transfer to the New York city
  teachers' retirement  system,  the  director  of  attendance,  assistant
  director  of  attendance, chief attendance officer, division supervising
  attendance officers and district supervising attendance officers of  the
  bureau  of  compulsory  education,  school  census  and  child  welfare,
  supervisors of school social workers who are first employed by  the  New
  York  city  board  of  education  on  or after September first, nineteen
  hundred sixty-nine or who were members of the New  York  city  board  of
  education  retirement system and who on or before December thirty-first,
  nineteen hundred seventy, gave notice to the  said  board  of  education
  retirement  system  of  their intention to transfer to the New York city
  teachers' retirement system, the members of the board of examiners,  the
  directors   and   the  assistant  directors  of  special  branches,  the
  supervisor  and  assistant  supervisors  of  lectures,  all  principals,
  vice-principals, assistants-to-principals, heads of departments, and all
  regular  and special teachers of the public day schools of the city, and
  all employees of the board of education appointed to  regular  positions
  in  the  service  of  the  public  schools  at annual salaries and whose
  appointments were made or shall be made from eligible lists prepared  as
  the result of examinations held by the board of examiners or from hiring
  lists  established  by  the chancellor of the board of education, as the
  case may be, and all employees employed by the board of education in the
  titles of teacher aide, educational  assistant,  educational  associate,
  auxiliary  trainer,  bilingual  professional  assistant,  family worker,
  family assistant, family associate, parent program assistant,  who  file

  an  application  for  membership in the retirement association on a form
  supplied by the retirement board.
    (b)  (1)  A  member employed in a title added by the provisions of the
  amendment made by chapter nine  hundred  ninety-seven  of  the  laws  of
  nineteen  hundred  eighty-three  may  elect a service retirement benefit
  pursuant to the provisions  of  subparagraphs  two  and  three  of  this
  paragraph.
    (2)  A  member  employed  in a title specified in subparagraph one may
  elect a service retirement without having to satisfy the requirement set
  forth in paragraph one of subdivision b of section six hundred  nine  of
  the  retirement  and social security law that a minimum of five years of
  credited service be performed subsequent to joining a retirement system.
  Provided however, that nothing herein shall  be  deemed  to  affect  any
  applicable  condition of eligibility for a service retirement, including
  but not limited to, that such member has: (i) attained age sixty-two  as
  required  by  section  six  hundred  three  of the retirement and social
  security law; (ii) rendered a minimum of ten years of  credited  service
  as required by subdivision a of section six hundred two of such law; and
  (iii) purchased credit for any creditable service rendered in such title
  or titles prior to joining the New York city teachers' retirement system
  by  making  payment  to  such  system  prior  to  the  effective date of
  retirement an amount equal to three percent  of  the  employee's  salary
  earned  during the period such prior service was rendered, with interest
  at the rate of five  percent  per  annum  compounded  annually.  Further
  provided,  that  nothing  herein  shall  be  construed  to mean that any
  service shall be credited in a manner inconsistent with  the  provisions
  of  subdivision  a  of  section  six  hundred nine of the retirement and
  social security law, or, if applicable, the provisions of subdivision  e
  of such section.
    (3)  In  order  to  be  effective,  elections  made  pursuant  to  the
  provisions of this paragraph shall be in writing on a form  supplied  by
  the  New York city teachers' retirement system and duly acknowledged and
  filed with such system on  or  before  December  thirty-first,  nineteen
  hundred eighty-five.
    8.  "Present-teacher"  shall  mean  any teacher employed in the public
  schools as a teacher on  the  first  day  of  August,  nineteen  hundred
  seventeen,  or on leave of absence on such date; and any teacher serving
  on a temporary license on the first  day  of  August,  nineteen  hundred
  seventeen  who, without separation from service, became a contributor to
  the teachers' retirement  system;  and  any  teacher-clerk  or  clerical
  assistant  employed  in  the  public  day  schools as a teacher-clerk or
  clerical assistant on the second day of June, nineteen hundred nineteen,
  and whose service  as  such  teacher-clerk  or  clerical  assistant  was
  continuous  from  any  time prior to the thirtieth day of June, nineteen
  hundred seventeen to the second day of June, nineteen hundred  nineteen;
  and  any  teacher-clerk  or  clerical  assistant employed as such in the
  public day schools from any time prior to the  thirtieth  day  of  June,
  nineteen hundred seventeen and who, without separation from service, was
  appointed as a regular teacher on a per annum salary prior to the second
  day  of June, nineteen hundred nineteen and who, prior to the fourth day
  of May, nineteen hundred thirty-five, was classified upon the records of
  the retirement board as  "present-teacher";  and  any  teacher-clerk  or
  clerical assistant who was employed as such in the public day schools on
  the  second day of June, nineteen hundred nineteen and who, prior to the
  fourth day of May, nineteen hundred thirty five, was classified upon the
  records of the retirement board as "present-teacher";  and  any  teacher
  who  was employed in the public schools as a teacher on the first day of
  August, nineteen hundred seventeen who subsequently resigned and who was

  reinstated or reappointed  within  two  years  from  the  date  of  such
  resignation.
    9.  "New-entrant"  shall  mean  any  teacher appointed to serve in the
  public  schools  after  the  first  day  of  August,  nineteen   hundred
  seventeen.
    10. "Contributor" shall mean any member of the retirement association.
    11.  "Transferred-contributor"  shall mean a contributor as defined in
  section 13-523 of this chapter.
    12. "Beneficiary" shall mean any person in receipt  of  a  pension,  a
  pension-providing-for-increased-take-home-pay,  an annuity, a retirement
  allowance, or other benefit as provided in this chapter.
    13. "city-service" shall mean any service as an employee of  the  city
  or  of  any  department, bureau, board or corporation thereof, or of the
  counties within the city.
    14. "Prior-service" shall mean all city-service and  all  teaching  or
  supervisory  service  in  schools or colleges not maintained by the city
  computed to and including  the  sixteenth  day  of  September,  nineteen
  hundred seventeen, in the case of a present-teacher, and, in the case of
  a  new-entrant,  to  the  date  of  his or her appointment as a teacher,
  subject to the limitations and restrictions imposed by section 13-505 of
  this chapter.
    15. "Total-service" shall mean all  prior-service  together  with  all
  subsequent  service  as  a  teacher  or  contributor as provided in this
  chapter.
    15-a. "Member-service" shall mean credited city-service rendered while
  a contributor.
    16. "Service retirement" shall mean retirement as defined  in  section
  13-545, 13-547 or 13-549 of this chapter.
    17. "Disability retirement" shall mean any of the following:
    (a)  retirement  prior  to  July  first,  nineteen hundred seventy for
  disability, as defined in subdivision seventeen-a of this section;
    (b) retirement for ordinary  disability,  as  defined  in  subdivision
  seventeen-b of this section;
    (c)  retirement  for  accident  disability,  as defined in subdivision
  seventeen-c of this section.
    17-a. "Retirement prior to July first, nineteen  hundred  seventy  for
  disability"  shall  mean  retirement  of  a  contributor  for disability
  pursuant to section 13-550  of  this  chapter  in  any  case  where  the
  effective  date of such retirement precedes July first, nineteen hundred
  seventy.
    17-b. "Retirement for ordinary disability" shall mean retirement of  a
  contributor  for  disability pursuant to section 13-550 of this chapter,
  in any case where such retirement becomes effective  on  or  after  July
  first, nineteen hundred seventy.
    17-c.  "Retirement  for  accident  disability"  shall  mean retirement
  pursuant to section 13-551 of this chapter.
    17-d. "Disability pensioner".  Any  retired  person  whose  retirement
  constitutes disability retirement.
    18.  "Average salary" shall mean the average annual salary earnable by
  a contributor for the five years immediately preceding the date of death
  or retirement or, at the option of such contributor, it shall  mean  the
  average  annual  salary earnable during any ten consecutive years of his
  or her total service, said ten years to be selected by  the  contributor
  prior  to  the  date  of  death  or  retirement;  upon  the  death  of a
  contributor before retirement and prior to the selection of  the  period
  of  time upon which his or her average annual salary shall be based, for
  the purpose of determining the amount to be paid as  special  death  and
  retirement benefits pursuant to section 13-543 of this chapter, "average

  salary"   shall   mean  the  average  annual  salary  earnable  by  such
  contributor during the five years immediately preceding his or her death
  or the average annual salary earnable by  him  or  her  during  any  ten
  consecutive  years  of  total  service, whichever of the two averages is
  greater in amount.
    18-a. (a) For the purposes of paragraphs (b),  (c)  and  (d)  of  this
  subdivision,  the term "improved salary base contributor" shall mean any
  contributor:
    (i) who dies or retires on or after the date on which this subdivision
  takes effect; and
    (ii) whose last three years of  credited  service  after  his  or  her
  contribution  rate  fixation date (as defined in subdivision forty-seven
  of this section) were rendered in the position held by him or her on the
  date of death or retirement.
    (b) (1) Notwithstanding the provisions of subdivision eighteen of this
  section or any other provision of law to the contrary, "average  salary"
  shall  mean,  in  the  case of any improved salary base contributor, the
  annual salary earnable by such contributor during the  year  immediately
  preceding  the  date  of  death  or retirement or, at the option of such
  contributor, it shall mean the average annual salary earnable during any
  five consecutive years of his or her total service, such five  years  to
  be  selected  by  such  contributor  prior  to  the  date  of  death  or
  retirement.
    (2) In any case where an improved salary base contributor  dies  prior
  to  the  selection  of  the period of time upon which his or her average
  salary shall be based, and  such  death  occurs  prior  to  his  or  her
  retirement  or  under  such  circumstances  that  a  benefit  is payable
  pursuant to paragraph a or b of subdivision two  of  section  13-545  of
  this  chapter, then for the purpose of determining the amount to be paid
  as special death and retirement benefits pursuant to section  13-543  of
  this chapter or for the purpose of determining the amount of the benefit
  to  be  paid  pursuant to paragraph a or b of subdivision two of section
  13-545 of this chapter, as the case may be, "average salary" shall  mean
  the   annual  salary  earnable  by  such  contributor  during  the  year
  immediately preceding his or her death  or  the  average  annual  salary
  earnable  by  him  or  her  during  any  five consecutive years of total
  service, whichever of such earnable amounts is greater.
    (c) Notwithstanding any provision of paragraphs (a) and  (b)  of  this
  subdivision  to  the  contrary,  in  any  case where a contributor would
  qualify as an improved salary base contributor, except for lack  of  the
  three years of service required by subparagraph (ii) of paragraph (a) of
  this  subdivision,  and  such contributor, after his or her contribution
  rate fixation date  (as  defined  in  subdivision  forty-seven  of  this
  section),  rendered credited service for a period of three or more years
  during which period of three or more years he or she held no  more  than
  one  position,  such  contributor  shall  be deemed, for the purposes of
  paragraphs (a), (b) and (d) of  this  subdivision,  to  be  an  improved
  salary base contributor; provided, however, that wherever the expression
  "annual  salary earnable by such contributor during the year immediately
  preceding the date of death or retirement," or "annual  salary  earnable
  by  such  contributor  during  the year immediately preceding his or her
  death", appear in paragraph (b) of this  subdivision,  such  expressions
  shall  be  instead  deemed  to  mean,  with respect to a contributor who
  qualifies as an improved salary base contributor  under  this  paragraph
  (c), the annual salary earnable by such contributor during the last year
  of  the most recent period of three or more years of credited service of
  such contributor (after his or her contribution rate fixation  date,  as

  defined in subdivision forty-seven of this section), during which period
  of three or more years he or she held no more than one position.
    (d)  (1)  Subject  to  the  provisions  of  subparagraph  two  of this
  paragraph, the provisions  of  paragraphs  (a),  (b)  and  (c)  of  this
  subdivision shall not apply to any contributor:
    (i) who heretofore retired or shall hereafter retire or who heretofore
  became   or   shall  hereafter  become  a  withdrawn  contributor  or  a
  discontinued member; and
    (ii) who, after such retirement or withdrawal  or  after  his  or  her
  discontinuance  of service as a discontinued member, as the case may be,
  and after June thirtieth, nineteen  hundred  sixty-nine,  re-entered  or
  shall  re-enter  service  (whether or not with service credit and status
  prior to withdrawal or discontinuance of service, as the case  may  be);
  and
    (iii)   who  would  otherwise  qualify  as  an  improved  salary  base
  contributor at the time of death  or  retirement  occurring  after  such
  re-entry;  unless  and  until  such  contributor,  after  such re-entry,
  completes a period of not less than four  years  of  member-service  (as
  defined in subdivision fifteen-a of this section).
    (2)  In  any  case where any contributor retires as an improved salary
  base contributor or discontinues service  as  an  improved  salary  base
  discontinued  member  (as  defined  in  subdivision  eighteen-b  of this
  section) and thereafter retires without having the status of an improved
  salarybase  contributor,  the  average  salary  used  in  computing  the
  retirement allowance of such contributor with respect to such subsequent
  retirement shall in no event be less than the average salary:
    (i)  which  was  used in computing the retirement allowance awarded to
  him or her with respect to his or her prior retirement  as  an  improved
  salary  base  contributor, in the case of such a contributor who retired
  after a prior retirement; or
    (ii) which would have been  required  to  be  used  in  computing  the
  retirement  allowance  to  which he or she would have been entitled as a
  discontinued member if he or she had not re-entered service, in the case
  of such a contributor who retires after previously discontinuing service
  as a discontinued member.
    18-b  (a)  For  the  purposes  of  paragraph  (b)  and  (c)  of   this
  subdivision,  the  term "improved salary base discontinued member" shall
  mean, except as otherwise provided in paragraph (c) of this subdivision,
  any discontinued member:
    (i) who:
    (a) became such a member by discontinuing service on or after the date
  on which this subdivision takes effect and after five years of  credited
  service  immediately  preceding such termination, as required by section
  13-556 of this chapter (relating to vested retirement rights); or
    (b) became such a member after a prior discontinuance of  service  and
  re-entry  into service, by discontinuing service on or after the date on
  which this subdivision takes effect and after completion of  five  years
  of  credited  service  after  such re-entry into service and immediately
  preceding such  subsequent  termination  as  required  by  such  section
  13-556; and
    (ii)  whose  last  three years of credited service prior to his or her
  most recent discontinuance were rendered in the position held by him  or
  her on the date of such most recent discontinuance.
    (b) (1) Notwithstanding the provisions of subdivision eighteen of this
  section  or any other provision of law to the contrary, "average salary"
  shall mean, in the case of any improved salary base discontinued member,
  the annual salary earnable by such member during  the  year  immediately
  preceding  the  date of his or her discontinuance of service, or, at the

  option of such member, it shall mean the average annual salary  earnable
  during any five consecutive years of his or her total-service, said five
  years  to  be  selected by such member prior to the date on which his or
  her retirement allowance becomes payable under the provisions of section
  13-556 of this chapter (relating to vested retirement rights).
    (c)  Notwithstanding  any  provision of paragraphs (a) and (b) of this
  subdivision to the contrary, in any case  where  a  discontinued  member
  would qualify as an improved salary base discontinued member, except for
  lack  of  the  three  years  of service required by subparagraph (ii) of
  paragraph (a) of this subdivision, and such member,  after  his  or  her
  contribution  rate  fixation date (as defined in subdivision forty-seven
  of this section) rendered credited service for a period of three or more
  years during which period of three or more years he or she held no  more
  than  one  position,  such  member  shall be deemed, for the purposes of
  paragraphs (a) and (b) of this subdivision to be an improved salary base
  discontinued member; provided,  however,  that  the  expression  "annual
  salary earnable by such member during the year immediately preceding the
  date of his or her discontinuance of service" set forth in paragraph (b)
  of  this  subdivision  shall  be  deemed  to  mean,  with  respect  to a
  discontinued  member  who  qualifies  as   an   improved   salary   base
  discontinued member under this paragraph (c), the annual salary earnable
  by  such  member during the last year of the most recent period of three
  or more years of credited service of such member during which period  of
  three or more years he or she held no more than one position.
    19.  (a)  "Minimum  contribution",  except  as  otherwise  provided in
  paragraphs (b) and (c) of this subdivision, shall mean  (1)  the  amount
  realized by deducting from the salary of a contributor three per cent of
  his  or  her earnable salary; or (2) such per cent thereof, if less than
  three per cent, as shall be computed  to  be  sufficient,  with  regular
  interest,  when  paid until age sixty-five, to provide for him or her on
  retirement at that age an annuity  which,  when  added  to  his  or  her
  pension  provided for in this title, will provide a retirement allowance
  of fifty percent of his or her average salary.
    (b)  The  "minimum  contribution"  of  a  twenty-year   pension   plan
  contributor  shall  be that realized by deducting from his or her salary
  the proportion of his or her earnable salary represented by his  or  her
  effective  contribution  rate  as a twenty-year pension plan contributor
  (as such rate is defined in subdivision forty-five of this section).
    (c) The "minimum contribution" of an age-fifty-five-increased-benefits
  pension plan contributor shall be that realized by deducting from his or
  her salary the proportion of his or her earnable salary  represented  by
  his     or     her     effective     contribution     rate     as     an
  age-fifty-five-increased-benefits pension plan contributor (as such rate
  is defined in subdivision forty-six of this section).
    (d) The method of computation and  the  deductions  herein  prescribed
  shall  be appropriately modified in the case of a contributor for whom a
  rate is otherwise fixed pursuant  to  section  13-546  of  this  chapter
  (relating to pensions-providing-for-increased-take-home-pay).
    20. "Minimum accumulation" shall mean:
    (a)  Except  as  otherwise  provided in paragraphs (b) and (c) of this
  subdivision, the amount created  by  the  accumulation  of  the  minimum
  contributions, together with the regular interest thereon; and
    (b)  Subject  to  the  provisions  of  paragraphs  (c) and (d) of this
  subdivision, such term, in the case  of  any  twenty-year  pension  plan
  contributor, shall mean the remainder obtained:
    (1)  by  computing the amount which the accumulated deductions of such
  contributor would equal, as of the date of  his  or  her  completion  of
  twenty  years  of twenty-year pension plan qualifying service, if during

  the period from his or her contribution rate fixation  date  up  to  and
  including  the date of completion of such twenty years of service, he or
  she contributed to the retirement system at his or her  normal  rate  of
  contribution as such contributor; and
    (2)  by subtracting from such amount computed pursuant to subparagraph
  one    of    this    paragraph    (b),     the     amount     of     the
  reserve-for-increased-take-home-pay   to   which   such  contributor  is
  entitled for such period of twenty years of service, as such reserve was
  as of the date of completion of such period of service.
    (c) For the purposes of subparagraph one  of  paragraph  (b)  of  this
  subdivision, the accumulated deductions referred to in such subparagraph
  shall be computed as they would be:
    (i) in the absence of any outstanding loan; and
    (ii) if they were not increased by any additional contributions, and
    (iii)  if  they  were  not  reduced  by  reason of any election of the
  contributor to apply the amount of such reduction in payment of  his  or
  her contributions for old-age and survivors insurance coverage; and
    (iv)  if,  in  the  case  of  contributor  who is a participant in the
  variable annuity program, he or she had never been a participant in such
  program during the period from his or  her  contribution  rate  fixation
  date  up  to  and  including  the  date of completion of twenty years of
  twenty-year pension plan qualifying service.
    (d) (1) In the case of a twenty-year  pension  plan  contributor  who,
  prior  to  his  or  her  contribution  rate fixation date, had completed
  twenty or more years of twenty-year pension plan qualifying service, the
  minimum accumulation shall be an amount which, as of the initial date of
  retirement allowance payability with respect to such contributor, is the
  actuarial equivalent of an annuity equal  to  twelve  and  one-half  per
  centum  of  his or her annual salary earnable on his or her contribution
  rate fixation date.
    (2) In the case of a twenty-year pension plan contributor  who,  after
  having  retired  as  a  twenty-year  pension plan contributor, re-enters
  city-service, the minimum  accumulation  of  such  contributor  while  a
  twenty-year  pension  plan  contributor  shall  be  his  or  her minimum
  accumulation at the time of his or her prior retirement as a twenty-year
  pension plan contributor.
    (3) For the purpose of the computation prescribed by subparagraph  one
  of paragraph b of this subdivision, in the case of a twenty-year pension
  plan  contributor  whose  first twenty years of twenty-year pension plan
  qualifying  service  includes  transferred  service  as   described   in
  subdivision  forty-four  of  this section (relating to definitions), the
  accumulated deductions of such  contributor  attributable  to  all  such
  transferred  service  rendered  prior  to  July  first, nineteen hundred
  seventy shall be the amount obtained by adding together:
    (i) the amount which the accumulated deductions  of  such  contributor
  resulting  from  his  or  her  contributions  as  a  member of the other
  retirement system would have equalled at  the  end  of  such  period  of
  transferred  service  rendered  prior  to  July  first, nineteen hundred
  seventy, (a) in  the  absence  of  a  loan,  (b)  if  not  increased  by
  additional  contributions  and  (c)  if  not  reduced  by reason of such
  contributor's election as a member of such other  retirement  system  to
  decrease  his  or her contributions in order to apply the amount of such
  reduction in payment of  his  or  her  contributions  for  old  age  and
  survivors insurance coverage; and
    (ii)  the  reserve-for-increased-take-home-pay,  if any, which accrued
  for such period of transferred service rendered  prior  to  July  first,
  nineteen  hundred  seventy  in  favor of such contributor as a member of
  such other retirement system.

    (4) For  the  purpose  of  facilitating  the  computation  of  minimum
  accumulations, the retirement board may promulgate rules and regulations
  providing,  with  respect  to  any  twenty-year pension plan contributor
  whose first twenty years of twenty-year pension plan qualifying  service
  include  any  such  service  rendered after his or her contribution rate
  fixation date and prior to July first, nineteen  hundred  seventy,  that
  for   the  purpose  of  computing  that  part  of  his  or  her  minimum
  accumulation attributable to  the  period  of  his  or  her  twenty-year
  pension  plan  qualifying  service commencing on his or her contribution
  rate fixation date (or on the  date  of  his  or  her  last  entry  into
  city-service constituting member-service, if he or she is subject to the
  provisions  of  subparagraph  three of this paragraph (c)) and ending on
  June thirtieth, nineteen hundred seventy or on the date on which  he  or
  she  completes  twenty  years  of  twenty-year  pension  plan qualifying
  service, whichever is earlier;
    (i) his or her earnable salary during such period shall be  deemed  to
  increase annually by a constant amount; and
    (ii)  if  such  entire period includes one or more constituent periods
  (hereinafter referred to as sub-periods) for which he  or  she  did  not
  receive  service  credit,  such part of his or her minimum accumulations
  shall be the amount obtained:
    (a) by  computing,  in  accordance  with  the  method  of  computation
  mentioned  in  item  one of this paragraph four, the amount which his or
  her accumulated deductions for such entire period would equal, as of the
  last day of such period, if throughout such period,  including  in  such
  period  all  such sub-periods, he or she contributed continuously to the
  retirement system at his or her normal rate of contribution; and
    (b) by multiplying such amount computed pursuant  to  subitem  (a)  of
  this  item  (ii)  by a fraction, the numerator of which is the number of
  years of service for which he or she is credited with  respect  to  such
  entire  period,  and  the denominator of which is the number of years of
  service for which he or she would  be  credited  with  respect  to  such
  entire period if no such sub-periods were included therein.
    20-a.  "Minimum  accumulation factor" shall mean an amount equal to an
  annuity which would be, as of the date on which the retirement allowance
  of  a  twenty-year  pension  plan  contributor  begins,  the   actuarial
  equivalent of his or her minimum accumulation.
    21.  "Accumulated  deductions"  shall  mean  the  total of the amounts
  deducted from the salary of a contributor and standing to the credit  of
  his or her individual account in the annuity savings fund, together with
  the regular interest and special interest, if any, thereon.
    22.  (a) Except as otherwise provided in paragraphs (b), (c), (d), (e)
  and (g) of this subdivision, "regular interest," in the cases of persons
  who  are  members  on  the  thirtieth  day  of  June,  nineteen  hundred
  forty-seven,   shall  mean  interest  at  four  per  centum  per  annum,
  compounded annually,  and  in  the  case  of  persons  becoming  members
  thereafter,   shall  mean  interest  of  three  per  centum  per  annum,
  compounded annually to and including the thirty-first day  of  December,
  nineteen  hundred  sixty-six, and interest at four per centum per annum,
  compounded annually from and after the first day  of  January,  nineteen
  hundred  sixty-seven,  except  that  in  the  cases  of persons becoming
  members after the thirtieth day of June,  nineteen  hundred  forty-seven
  whose  service  as a teacher, contributor, or transferred-contributor is
  terminated by death, retirement,  resignation,  dismissal  or  otherwise
  prior  to  the  thirtieth day of June, nineteen hundred sixty-seven, the
  term "regular interest" shall mean interest  at  three  per  centum  per
  annum   compounded   annually,   to  and  including  the  date  of  such
  termination.

    (b) The provisions of paragraph (a)  of  this  subdivision  shall  not
  apply  to  any  actuarial valuation, determination or appraisal which is
  made pursuant to this chapter and which is used to determine the  amount
  of  any  contribution  required  to  be paid by the city or other public
  employer into the contingent reserve fund or pension reserve fund number
  two of the retirement system in nineteen hundred seventy-seven--nineteen
  hundred  seventy-eight  fiscal year of the city or any subsequent fiscal
  year thereof.
    (c) (i) Subject to the provisions of subparagraph  (ii)  of  paragraph
  (f)  of  this  subdivision,  for the purpose of any actuarial valuation,
  determination or appraisal which is made  pursuant  to  this  title  and
  which is used to determine the amount of any contribution required to be
  paid  by  the  city  (or  other obligors required to pay public employer
  contributions on account of contributors) into  the  contingent  reserve
  fund  or pension reserve fund number two of the retirement system in the
  nineteen hundred seventy-seven--nineteen  hundred  seventy-eight  fiscal
  year  of  the  city  and  in  each succeeding fiscal year thereof to and
  including the nineteen  hundred  seventy-nine--nineteen  hundred  eighty
  fiscal  year thereof, "regular interest" shall mean interest at five and
  one-half per centum per annum, compounded annually.
    (ii) Subject to the provisions of subparagraph (ii) of  paragraph  (f)
  of  this  subdivision, and except as otherwise provided in subdivision a
  of section 13-527 of this chapter and subdivision d of such section with
  respect to determination of the amount of the balance sheet liability as
  of June thirtieth, nineteen hundred eighty and balance  sheet  liability
  contributions, for the purpose of any actuarial valuation, determination
  or  appraisal  which is made pursuant to this title and which is used to
  determine the amount of any contribution required to be paid by the city
  (or other obligors required to  pay  public  employer  contributions  on
  account  of  contributors)  into  the contingent reserve fund or pension
  reserve fund number two of the retirement system in the nineteen hundred
  eighty--nineteen hundred eighty-one fiscal year of the city and in  each
  succeeding  fiscal  year  thereof  to and including the nineteen hundred
  eighty-one--nineteen hundred eighty-two fiscal  year  thereof,  "regular
  interest"  shall  mean  interest  at  the rate of seven and one-half per
  centum per annum, compounded annually.
    (iii) Subject to the provisions of subparagraph (ii) of paragraph  (f)
  of  this  subdivision, and except as otherwise provided in subdivision a
  of section 13-527 of this chapter and subdivision d of such section with
  respect to  the  determination  of  the  amount  of  the  balance  sheet
  liability  as  of  June  thirtieth,  nineteen hundred eighty and balance
  sheet  liability  contributions,  for  the  purpose  of  any   actuarial
  valuation,  determination  or  appraisal  which is made pursuant to this
  title and which is used to determine  the  amount  of  any  contribution
  required  to  be  paid  by  the  city (or other obligors required to pay
  public employer contributions  on  account  of  contributors)  into  the
  contingent  reserve  fund  or  pension  reserve  fund  number two of the
  retirement system in the nineteen hundred  eighty-two--nineteen  hundred
  eighty-three  fiscal year of the city and in each succeeding fiscal year
  thereof to and including  the  nineteen  hundred  eighty-seven--nineteen
  hundred  eighty-eight fiscal year thereof, "regular interest" shall mean
  interest at the rate of eight per centum per annum, compounded annually.
    (iv) Subject to the provisions of subparagraph (ii) of  paragraph  (f)
  of  this  subdivision, and except as otherwise provided in subdivision a
  of section 13-527 of this chapter and subdivision d of such section with
  respect to  the  determination  of  the  amount  of  the  balance  sheet
  liability  as  of  June  thirtieth,  nineteen hundred eighty and balance
  sheet  liability  contributions,  for  the  purpose  of  any   actuarial

  valuation,  determination  or  appraisal  which is made pursuant to this
  chapter and which is used to determine the amount  of  any  contribution
  required  to  be  paid  by  the  city (or other obligors required to pay
  public  employer  contributions  on  account  of  contributors) into the
  contingent reserve fund or  pension  reserve  fund  number  two  of  the
  retirement system in the nineteen hundred eighty-eight--nineteen hundred
  eighty-nine   fiscal   year   of  the  city  and  the  nineteen  hundred
  eighty-nine--nineteen  hundred  ninety  fiscal  year  thereof,  "regular
  interest"  shall  mean interest at the rate of eight and one-quarter per
  centum per annum, compounded annually.
    (d) Subject to the provisions of subparagraph (ii) of paragraph (f) of
  this subdivision, and except as otherwise provided in subdivision  a  of
  section  13-527  of  this chapter and subdivision f of such section with
  respect to determination of the amount of the balance sheet liability as
  of June thirtieth, nineteen hundred eighty and balance  sheet  liability
  contributions, for the purpose of any actuarial valuation, determination
  or appraisal which is made pursuant to this chapter and which is used to
  determine the amount of any contribution required to be paid by the city
  (or  other  obligors  required  to  pay public employer contributions on
  account of contributors) into the contingent  reserve  fund  or  pension
  reserve fund number two of the retirement system in the nineteen hundred
  ninety--nineteen  hundred  ninety-one fiscal year of the city and in any
  subsequent fiscal year thereof, "regular interest" shall  mean  interest
  at  such  rate per annum, compounded annually, as shall be prescribed by
  the legislature in section 13-638.2 of this title.
    (e) On or after May first, nineteen hundred eighty-nine and  no  later
  than  October  thirty-first  of  such  year,  the retirement board shall
  submit to the governor, the temporary president and minority  leader  of
  the  senate,  the  speaker  of  the  assembly, the majority and minority
  leaders of the assembly, the  state  superintendent  of  insurance,  the
  chairman  of  the  permanent  commission  on public employee pension and
  retirement systems, the mayor of the city, and the members of the  board
  of estimate and city council thereof, the written recommendations of the
  retirement board as to the rate of interest and effective period thereof
  which should be established by law as "regular interest" for the purpose
  specified in the paragraph (d) of this subdivision.
    (f) (i) Subject to the provisions of paragraph four of subdivision (b)
  of  section 13-527 of this chapter, nothing contained in paragraphs (b),
  (c), (d) and (e) of this subdivision shall be construed as  prescribing,
  for  the  purpose  of  crediting  interest to individual accounts in the
  annuity savings fund or to reserves-for-increased-take-home-pay  or  for
  any  other  purpose besides that specified in such paragraphs, a rate of
  regular interest other than as prescribed by the  applicable  provisions
  of paragraph (a) or paragraph (g) of this subdivision.
    (ii)  Subject  to  the  provisions  of section 13-638.2 of this title,
  nothing contained in paragraphs (c) and (d) of this subdivision shall be
  construed  as  requiring  the  original   unfunded   accrued   liability
  contribution,  as  defined  in  subdivision  c of section 13-527 of this
  chapter, and the revised unfunded  accrued  liability  contribution,  as
  defined  in  subdivision  d  of  such  section, and the nineteen hundred
  eighty unfunded accrued liability adjustment, as defined in  subdivision
  e  of  such section and the nineteen hundred eighty-two unfunded accrued
  liability adjustment, as defined in such subdivision, to  be  determined
  in  any  manner other than as prescribed by the applicable provisions of
  such subdivisions. Subject to the provisions of section 13-638.2 of this
  title, nothing contained in paragraphs (c) and (d) of  this  subdivision
  shall  be  construed as requiring any balance sheet liability or balance
  sheet liability contribution computed  pursuant  to  the  provisions  of

  subdivision  f of section 13-527 of this chapter to be determined in any
  manner other than as prescribed in such subdivision.
    (g) (i) Commencing on August first, nineteen hundred eighty-three, and
  continuing  thereafter,  "regular interest", in the cases of persons who
  were  in  member  service  on  July   thirty-first,   nineteen   hundred
  eighty-three  or  who  thereafter  entered or resumed or enter or resume
  member service, shall mean, subject to the provisions  of  subparagraphs
  (ii)  to  (ix),  inclusive,  of  this paragraph (g) and subdivision b of
  section 13-578 of the code, interest at  seven  per  centum  per  annum,
  compounded annually.
    (ii)(A)(1)  Subject to the provisions of sub-items (2) and (3) of this
  item (A), regular interest at the rate of seven per  centum  per  annum,
  compounded  annually, shall be used as the actuarial interest assumption
  for determining any actuarial equivalent benefit (other than a  variable
  annuity  program  benefit) payable to or on account of any seven percent
  member for actuarial equivalent benefit purposes.
    (2) Where an actuarial equivalent benefit is  required  by  retirement
  board  resolution  to  be  determined  for  any seven percent member for
  actuarial equivalent benefit purposes through the use  of  the  modified
  Option   1  pension  computation  formula  (as  defined  in  subdivision
  fifty-nine of section  13-501  of  the  code),  the  actuarial  interest
  assumptions  used in making such determination shall be as prescribed in
  such formula.
    (3) Where it is provided by retirement board resolution that a portion
  of an actuarial equivalent benefit shall be  determined  for  any  seven
  percent member for actuarial equivalent benefit purposes on the basis of
  gender-neutral  mortality tables, and that the remainder of such benefit
  shall be determined on the basis  of  mortality  tables  which  are  not
  gender-neutral,  regular  interest  at  the rate of seven per centum per
  annum, compounded annually, shall be  used  as  the  actuarial  interest
  assumption  for determining the portion of such benefit required by such
  resolution to be determined on the  basis  of  gender-neutral  mortality
  tables  and  such  rate  of  regular  interest  shall  not  apply to the
  determination of the remainder of such benefit.
    (B) Notwithstanding that the process of determining whether  a  member
  is  a  seven  percent member for actuarial benefit purposes may include,
  for  the  purpose  of  ascertaining  the  highest  applicable   benefit,
  alternative  hypothetical  benefit  calculations  utilizing  a  rate  of
  regular interest other than such  rate  of  seven  per  centum,  nothing
  contained  in  subparagraph  (i) of this paragraph (g) or in item (A) of
  this subparagraph (ii) shall be  construed  as  requiring  that  in  the
  determination of any actuarial equivalent benefit (other than a variable
  annuity  program  benefit) payable to or on account of any member who is
  not a seven percent member for actuarial  equivalent  benefit  purposes,
  any  rate of interest be used as the actuarial interest assumption other
  than  regular  interest,  compounded  annually,  as  prescribed  by  the
  applicable provisions of paragraph (a) of this subdivision twenty-two.
    (iii)  The  provisions  of  item  (A)  of  subparagraph  (ii)  of this
  paragraph shall not apply to any  person  who  prior  to  August  first,
  nineteen  hundred  eighty-three,  retired  as a member of the retirement
  system for  service  or  superannuation  or  for  ordinary  or  accident
  disability  and  was  such  a  retiree  immediately prior to such August
  first, provided, however, that if any such retiree,  on  or  after  July
  thirty-first,  nineteen  hundred  eighty-three,  returned  or returns to
  member service, the provisions of such item (A),  from  and  after  such
  date  of  restoration  to  member  service, shall apply to such restored
  member, provided that nothing contained in the preceding  provisions  of
  this  subparagraph shall be construed as applicable to any such restored

  member who was not or is  not  a  seven  percent  member  for  actuarial
  equivalent  benefit  purposes  at  the  time of subsequent retirement or
  subsequent discontinuance of service so as to qualify for benefits.
    (iv)  (A)  Subject  to the provisions of item (B) of this subparagraph
  (iv), the provisions of item (A) of subparagraph (ii) of this  paragraph
  shall  not apply to any Tier I or Tier II member who (1) prior to August
  first, nineteen hundred eighty-three, discontinued  service  under  such
  circumstances that such member became a discontinued member and acquired
  a  vested  right  to  receive a retirement allowance pursuant to section
  13-556 of the code (and in the case of a Tier II member, article  eleven
  of  the  retirement and social security law), and (2) was a discontinued
  member immediately prior to such August first.
    (B) If such a discontinued member,  on  or  after  July  thirty-first,
  nineteen  hundred  eighty-three,  returned or returns to member service,
  the provisions of item (A) of subparagraph (ii) of this paragraph  shall
  apply  to  him or her on and after the date of such resumption of member
  service, provided that nothing contained  in  this  item  (B)  shall  be
  construed as making the provisions of item (A) of such subparagraph (ii)
  applicable  to  any  such  member  who was not or is not a seven percent
  member  for  actuarial  equivalent  benefit  purposes  at  the  time  of
  subsequent  retirement  or subsequent discontinuance of service so as to
  qualify for benefits.
    (v) (A) Subject to the provisions of item  (B)  of  this  subparagraph
  (v),  the  provisions of item (A) of subparagraph (ii) of this paragraph
  shall not apply to any Tier III member or Tier IV member who  (1)  prior
  to  August  first,  nineteen hundred eighty-three, terminated employment
  under such circumstances that such  member  became  a  Tier  III  member
  entitled  to  a  vested benefit or a Tier IV member entitled to a vested
  benefit, and (2) had such status immediately prior to such August first.
    (B) If a member who became entitled to a vested benefit, as  described
  in  item  (A)  of  this  subparagraph (v), returned or returns to member
  service on or after July thirty-first,  nineteen  hundred  eighty-three,
  the  provisions of item (A) of such subparagraph (ii) shall apply to him
  or her on and after the date  of  such  resumption  of  member  service,
  provided that nothing contained in the preceding provisions of this item
  (B)  shall  be construed as applicable to any such member who was not or
  is not a seven percent member for actuarial equivalent benefit  purposes
  at  the  time  of  subsequent retirement or subsequent discontinuance of
  service so as to qualify for benefits.
    (vi) (A) Subject to the provisions  of  items  (B)  and  (C)  of  this
  subparagraph  (vi)  and  to the provisions of subparagraph (vii) of this
  paragraph  (g),  the  selection  of  mode  of  benefit  (as  defined  in
  subdivision  sixty of this section) which, prior to the termination date
  of eligibility  for  option  re-selection  (as  defined  in  subdivision
  sixty-four  of  this  section),  a person entitled to a recomputation of
  benefits (as defined in subdivision sixty-two of this section)  made  or
  makes in relation to the retirement allowance (or any component thereof)
  which  became or becomes payable to him or her prior to such termination
  date of eligibility for option re-selection, shall be the  selection  of
  mode  of  benefit  applicable to the recomputed retirement allowance (or
  any corresponding component thereof) to which  he  or  she  is  entitled
  under   the  best-of-three-computations  method  or  the  gender-neutral
  computations method, and, any such person entitled to a recomputation of
  benefits  pursuant  to  the  best-of-three-computations  method  or  the
  gender-neutral  computations  method  shall  not be entitled to make any
  change in such selection of mode of benefit.
    (B)(1) Notwithstanding the provisions of item (A) of this subparagraph
  (vi), a person entitled to a recomputation of benefits pursuant  to  the

  best-of-three-computations  method  shall be entitled, to the extent and
  in the manner prescribed in the succeeding sub-items of this  item  (B),
  to  change  the  original selection of mode of benefit applicable to the
  retirement  allowance  (or  component  thereof)  which became or becomes
  payable to him or her prior to the termination date of  eligibility  for
  option re-selection.
    (2)  In  any case where the original selection of mode of benefit of a
  person entitled to a recomputation of benefits  was  a  selection  of  a
  joint and survivor option (as defined in subdivision sixty-three of this
  section), no change from such original selection of a joint and survivor
  option may be made under this item (B) to any other selection of mode of
  benefit  if  the  designated  beneficiary  selected with respect to such
  joint and survivor option by such person entitled to a recomputation  is
  not alive at the time of filing of the form whereby such person entitled
  to  a  recomputation  seeks to change, pursuant to this item (B), his or
  her original selection of such joint and survivor option.
    (3) Except for a change of selection of mode of benefit prohibited  by
  sub-item two of this item (B), any original selection of mode of benefit
  may be changed pursuant to this item (B) to another selection of mode of
  benefit, provided all of the conditions set forth in sub-items four, six
  and eight of this item (B) are met.
    (4)  Subject  to  the  provisions of sub-items seven and eight of this
  item (B), a person entitled to a recomputation of benefits may, pursuant
  to this item (B), effect any such  permissible  change  of  his  or  her
  original  selection  of  mode of benefit by executing, acknowledging and
  filing with the retirement system, within the applicable period of  time
  prescribed  by  sub-item  six  of  this item, a new selection of mode of
  benefit. If the original selection of mode  of  benefit  of  the  person
  filing  such  new  selection  was  a  selection  of a joint and survivor
  option, such new selection shall be void and of no effect unless (a) the
  designated beneficiary named in such orignal selection of  a  joint  and
  survivor  option  signs  and  acknowledges,  in  the  form  for such new
  selection of mode of benefit, a consent to  such  changed  selection  of
  mode  of  benefit, and (b) such original designated beneficiary is alive
  on the date of filing of such new selection.
    (5) The retirement system shall mail to  each  person  entitled  to  a
  recomputation  of  benefits  a  letter  showing  amounts of benefits, as
  recomputed for such person under the  best-of-three-computations  method
  or  the  gender-neutral  computations method, for modes of benefit other
  than joint and survivor options, together with a statement advising such
  person that upon request, the amounts of recomputed benefits under joint
  and survivor options will be provided.
    (6) The period of time within which any  such  person  entitled  to  a
  recomputation  may  file  a new selection of mode of benefit as provided
  for in sub-items three and four of this item (B)  shall  be  sixty  days
  after  the  date  of  issuance  set  forth in such letter mailed to such
  person pursuant to sub-item five of this item; provided,  however,  that
  if, pursuant to the request of such person, a later letter setting forth
  benefits  information in relation to new selection of mode of benefit is
  mailed to such person by the retirement system, such period of time  for
  filing a new selection of mode of benefit shall be thirty days after the
  date of issuance set forth in such later letter.
    (7)  Upon the filing of a new selection of mode of benefit pursuant to
  this item (B) by any such person entitled to a recomputation,  such  new
  selection  shall be irrevocable and such person shall not be entitled to
  file any other selection  of  mode  of  benefit  with  respect  to  such
  retirement  allowance (or any component thereof) which became payable to

  him or her prior to the  termination  date  of  eligibility  for  option
  re-selection.
    (8)  No  new  selection  of  mode  of  benefit  filed  pursuant to the
  preceding sub-items of this item (B) shall be valid or  effective  as  a
  change  of  mode  of  benefit or for any other purpose unless the person
  entitled to a recomputation of benefits who files such new selection  is
  alive  on  the  date  (hereinafter referred to as the "validating date")
  three hundred sixty-five days after the  date  of  filing  of  such  new
  selection  of  mode of benefit. If such person filing such new selection
  of mode of benefit is alive on the validating date with respect to  such
  new  selection,  such  new selection shall become valid and effective on
  such validating  date;  provided,  however,  that  from  and  after  the
  effective  date  of  retirement  of  such  person  making such valid and
  effective new selection of mode of benefit (if he  or  she  retired  for
  service  or  superannuation  or  for ordinary or accident disability) or
  from and after the date on which payability of the original benefits  of
  such  person  began  (if he or she was a discontinued member or Tier III
  member entitled to a vested benefit or Tier  IV  member  entitled  to  a
  vested  benefit),  such new selection of mode of benefit shall supersede
  such original selection of mode of benefit and shall apply to and govern
  the amount of  benefits  payable  to  such  person  or  to  his  or  her
  designated beneficiary or estate.
    (C)  Nothing  contained  in  item (A) or item (B) of this subparagraph
  (vi) shall be construed as preventing any change in selection of mode of
  benefit where such change is authorized by section 13-565 of the code.
    (vii) In any case where a retiree or discontinued member or  Tier  III
  member  entitled  to  a  vested  benefit or Tier IV member entitled to a
  vested benefit referred  to  in  subparagraph  (vi)  of  this  paragraph
  returns  to  member  service  on  or  after  July thirty-first, nineteen
  hundred eighty-three, nothing contained in such  subparagraph  shall  be
  construed  as preventing such person so restored to member service, upon
  his or her subsequent retirement, from exercising any right,  which  any
  other  applicable  law grants to him or her under such circumstances, to
  make a selection of mode of benefit (as defined in subdivision sixty  of
  this section).
    (viii)  Notwithstanding  the  provisions  of  subparagraph (i) of this
  paragraph (g) prescribing a rate of regular interest of seven per centum
  per annum, compounded annually, for specified members described in  such
  subparagraph (i), the rate of regular interest which shall be applied to
  fix  the  rate  of  interest  on any loan to any such member eligible to
  borrow shall be four per centum per annum, compounded annually.
    (ix) The rate of regular interest applicable to determination  of  the
  rate  of  member  contribution of any member whose last membership began
  prior to the  date  of  enactment  (as  certified  pursuant  to  section
  forty-one of the legislative law) of this paragraph shall be the rate of
  regular  interest  which  was applicable, under the provisions of law in
  effect prior to such date of enactment, to the determination of the rate
  of member contribution of such member,  and  nothing  contained  in  the
  preceding   subparagraphs  of  this  paragraph  shall  be  construed  as
  applicable to the determination of the rate of  member  contribution  of
  any  such  member  whose  last  membership  so  began  or as changing or
  affecting the rate of member contribution of any such member.
    23. "Pension" shall mean payments for life derived from appropriations
  made by the city and from any other sources of revenue  of  the  pension
  reserve funds as provided in this chapter.
    23-a.  "Pension-providing-for-increased-take-home-pay"  shall mean the
  annual allowance for life payable in monthly installments  derived  from

  contributions  made  to  the contingent reserve fund pursuant to section
  13-546 of this chapter.
    24.  "Annuity" shall mean payments for life derived from contributions
  made by a contributor as provided in this chapter.
    25. "Retirement allowance" shall mean the pension,  plus  the  annuity
  and the pension-providing-for-increased-take-home-pay, if any.
    26.  "Pension  reserve"  shall  mean the present value computed on the
  basis of such mortality tables as shall be  adopted  by  the  retirement
  board,  with  regular  interest,  of  the  future payments to be made on
  account of any pension granted under the provisions of this chapter.
    26-a.  "Reserve-for-increased-take-home-pay"  shall  mean  an   amount
  which,  at  the  time  of death or retirement, shall be equal to the sum
  obtained by adding together the  amounts  specified  in  the  succeeding
  paragraphs of this subdivision, as follows:
    (i)   A   sum   representing  two  and  one-half  per  centum  of  the
  contributor's salary paid to him or her during the period  with  respect
  to  which  the  city  contributes,  pursuant  to subdivisions b and f of
  section       13-546       of        this        chapter,        towards
  pensions-providing-for-increased-take-home-pay,  plus  regular  interest
  and additional interest, if any, on such sum;
    (ii) A sum  representing  the  product  obtained  by  multiplying  the
  percentage  selected by the board of estimate pursuant to the provisions
  of paragraph four of subdivision c of section 13-546 of this chapter, by
  the salary of the contributor during the period with  respect  to  which
  the  city  contributes, pursuant to subdivisions d and f of such section
  13-546,  towards  pensions-providing-for-increased-take-home-pay,   plus
  regular interest and additional interest, if any, on such sum;
    (iii)  A  sum representing five per centum of the contributor's salary
  paid to him or her during the period with  respect  to  which  the  city
  contributes,  pursuant  to  paragraph four of subdivision g or paragraph
  four of subdivision i of such section 13-546 and subdivision f  of  such
  section,  towards  pensions-providing-for-increased-take-home-pay,  plus
  regular interest and additional interest, if any, on such sum;
    (iv) In the case of contributors employed by the board of education, a
  sum representing three per centum of the salary of each such contributor
  paid to him or her during the period with  respect  to  which  the  city
  contributes,  pursuant to subparagraph a of paragraph one of subdivision
  j of such section 13-546 and subdivision  f  of  such  section,  towards
  pensions-providing-for-increased-take-home-pay, plus regular interest on
  such sum;
    (v)  In the case of contributors employed by the board of education, a
  sum representing eight per centum of each contributor's salary  paid  to
  him or her during the period with respect to which the city contributes,
  pursuant  to  subparagraph (c) of paragraph one of subdivision j of such
  section  13-546   and   subdivision   f   of   such   section,   towards
  pensions-providing-for-increased-take-home-pay, plus regular interest on
  such sum;
    (vi) In the case of contributors employed by the board of education, a
  sum representing eight per centum of the salary of each such contributor
  paid  to  him  or  her  during the period with respect to which the city
  contributes, pursuant to subdivisions k and f of such section 13-546  of
  this  chapter,  towards  pensions-providing-for-increased-take-home-pay,
  plus regular interest on  such  sum;  provided,  however,  that  if  the
  reduction  in  contributions  of  such  contributors with respect to the
  months of July and August,  nineteen  hundred  seventy  is  governed  by
  paragraph  one  of  subdivision m of section 13-546 of this chapter, the
  reserve provided for in  this  paragraph  (vi)  shall  not  inlcude  any

  portion  of  the salary of each such contributor paid to him or her with
  respect to such months;
    (vii)  In  the case of contributors employed by the city university of
  New York, a sum representing three per centum of the salary of each such
  contributor paid to him or her during the period with respect to  which,
  if  an  election  by  the  mayor  requires  such contributions, the city
  contributes, pursuant to subparagraph a of paragraph one of  subdivision
  l  of  such  section  13-546  of  this chapter and subdivision f of such
  section,  towards  pensions-providing-for-increased-take-home-pay,  plus
  regular interest on such sum;
    (viii)  In the case of contributors employed by the city university of
  New York, a sum representing eight  per  centum  of  each  contributor's
  salary  paid  to  him or her during the period with respect to which the
  city contributes, pursuant to  subparagraph  (c)  of  paragraph  one  of
  subdivision  l  of such section 13-546 of this chapter and subdivision f
  of such section, towards pensions providing-for-increased-take-home-pay,
  plus regular interest on such sum, if the mayor elects  a  reduction  in
  the  contributions  of such contributors pursuant to such paragraph (c);
  provided, however, that  if  the  reduction  in  contributions  of  such
  contributors  with  respect  to  the months of July and August, nineteen
  hundred seventy is governed by paragraph one of subdivision n of section
  13-546 of this chapter, the  reserve  provided  for  in  this  paragraph
  (viii)  shall  not  include  any  portion  of  the  salary  of each such
  contributor paid to him or her with respect to such months;
    (ix) (a) In  the  case  of  contributors  employed  by  the  board  of
  education, a sum representing five per centum of the salary of each such
  contributor  paid  to him or her during the period with respect to which
  the city contributes, pursuant to paragraph  one  of  subdivision  m  of
  section  13-546  of  this  chapter  and  subdivision  f of such section,
  towards  pensions-providing-for-increased-take-home-pay,  plus   regular
  interest  on  such  sum,  if  a  bill  entitled  "An  act  to  amend the
  administrative code of the city of New York, in  relation  to  providing
  additional  rights,  privileges and benefits for contributors to the New
  York city teachers' retirement  system,  including  optional  retirement
  plans" is enacted into law, or
    (b)  In the case of contributors employed by the board of education, a
  sum representing eight per centum of the salary of each such contributor
  paid to him or her during the period with  respect  to  which  the  city
  contributes,  pursuant  to  paragraph  two  of  subdivision m of section
  13-546 of this chapter  and  subdivision  f  of  such  section,  towards
  pensions-providing-for-increased-take-home-pay, plus regular interest on
  such   sum,  in  the  event  a  bill  entitled  "An  act  to  amend  the
  administrative code of the city of New York, in  relation  to  providing
  additional  rights,  privileges and benefits for contributors to the New
  York city teachers' retirement  system,  including  optional  retirement
  plans" is not enacted into law;
    (x)  (a)  In  the case of contributors employed by the board of higher
  education, a sum representing five  per  centum  of  each  contributor's
  salary  paid  to  him or her during the period with respect to which the
  city contributes, pursuant to paragraph one of subdivision n of  section
  13-546  of  this  chapter  and  subdivision  f  of such section, towards
  pensions-providing-for-increased-take-home-pay, plus regular interest on
  such sum, if a bill entitled "An act to amend the administrative code of
  the city of New  York,  in  relation  to  providing  additional  rights,
  privileges  and benefits for contributors to the New York city teachers'
  retirement system, including optional retirement plans" is enacted  into
  law, or

    (b)  In  the  case  of  contributors  employed  by the board of higher
  education, a sum representing eight per  centum  of  each  contributor's
  salary  paid  to  him or her during the period with respect to which the
  city contributes, pursuant to paragraph two of subdivision n of  section
  13-546  of  this  chapter  and  subdivision  f  of such section, towards
  pensions-providing-for-increased-take-home-pay, plus regular interest on
  such  sum,  in  the  event  a  bill  entitled  "An  act  to  amend   the
  administrative  code  of  the city of New York, in relation to providing
  additional rights, privileges and benefits for contributors to  the  New
  York  city  teachers'  retirement  system, including optional retirement
  plans" is not enacted into law;
    (xi) In the case of contributors employed by the board of education or
  board of higher education, a sum representing five  per  centum  of  the
  salary  of  each  such  contributor paid to him or her during the period
  with respect to which the city contributes, pursuant to paragraph one of
  subdivision o of section 13-546 of this chapter  and  subdivision  f  of
  such  section,  towards  pensions-providing-for-increased-take-home-pay,
  plus regular interest on such sum.
    (xii) In the event that the mayor makes  the  election  authorized  by
  paragraph  one  of subdivision p of section 13-546 of this chapter, then
  in the case of contributors employed by the board of education or  board
  of higher education, a sum representing five per centum of the salary of
  each  such contributor paid to him or her during the period with respect
  to which the  city  contributes,  pursuant  to  paragraph  one  of  such
  subdivision   p   and   subdivision   f   of   such   section,   towards
  pensions-providing-for-increased-take-home-pay, plus regular interest on
  such sum.
    (xiii) In any case where it is prescribed in section  13-535  of  this
  chapter       that       in      the      determination      of      the
  reserve-for-increased-take-home-pay of any contributor with respect to a
  specified period heretofore or hereafter occurring, additional  interest
  shall  be  included  with  respect  to  such  period,  the definition of
  reserve-for-increased-take-home-pay set forth in  this  subdivision,  to
  the  extent  that it does not specifically provide for inclusion of such
  additional interest, shall be deemed to provide  for  the  inclusion  of
  such  additional  interest, in the amount prescribed for such period, in
  such contributor's reserve-for-increased-take-home-pay.
    27. "Annuity reserve" shall mean the present  value  computed  on  the
  basis  of  such  mortality  tables as shall be adopted by the retirement
  board, with regular interest, of the  future  payments  to  be  made  on
  account  of  any annuity or benefit granted and based on the accumulated
  deductions of the contributor.
    28. "Expense fund" shall mean the fund provided for in section  13-526
  of this chapter.
    29.  "Contingent  reserve  fund"  shall  mean the fund provided for in
  section 13-527 of this chapter.
    30. "Pension reserve fund number one" shall mean the fund provided for
  in section 13-530 of this chapter.
    31. "Pension reserve fund number two" shall mean the fund provided for
  in section 13-530 of this chapter.
    32. "Annuity savings fund" shall mean the fund provided for in section
  13-521 of this chapter.
    33. "Annuity reserve fund" shall mean the fund provided for in section
  13-522 of this chapter.
    34. "Fiscal year" shall mean the year commencing with the first day of
  July and ending with the thirtieth day of June next following.
    35. "Special interest". A distribution to the annuity savings fund, in
  addition to regular interest, which distribution (a)  for  each  of  the

  periods  as to which the provisions of section 13-535 of this chapter or
  section 13-638.2 of this title grant special interest, consists  of  the
  amount  prescribed  by  such provisions for such period and (b) for each
  such period is credited in such applicable amount to the accounts in the
  annuity  savings  fund of members who are eligible under such provisions
  for crediting of such amount for such period.
    36.    "Additional    interest".     A     distribution     to     the
  reserve-for-increased-take-home-pay,  in  addition  to regular interest,
  which distribution  (a)  for  each  of  the  periods  as  to  which  the
  provisions of section 13-535 of this chapter or section 13-638.2 of this
  title  grant  additional  interest, consists of the amount prescribed by
  such provisions for such period and (b) for each such period  is  to  be
  included       in      such      applicable      amount      in      the
  reserve-for-increased-take-home-pay of each contributor who is  eligible
  under such provisions for inclusion of such amount for such period.
    37.  "Twenty-year  pension  plan"  shall mean the rights, benefits and
  privileges granted by the provisions of section 13-547 of  this  chapter
  (relating to the twenty-year pension plan).
    38.  "Twenty-year-pension  plan  contributor" shall mean a contributor
  who has elected the benefits of section 13-547 of this chapter (relating
  to the twenty-year pension plan) pursuant to its terms and to  whom  the
  provisions of such section are applicable.
    39.  "Applicant  for retirement with a deferred payability date" shall
  mean a twenty year pension plan contributor  who,  pursuant  to  section
  13-547  of  this chapter (relating to the twenty-year pension plan), has
  filed an application for retirement designating  an  effective  date  of
  retirement  occurring  before  his  or  her  initial  date of retirement
  allowance payability (as defined  in  subdivision  forty-three  of  this
  section).
    40.  "Twenty-year  pension  plan  retiree having a deferred payability
  date" shall mean  any  twenty-year  pension  plan  contributor  who  has
  retired  pursuant  to  section  13-547  of this chapter (relating to the
  twenty-year  pension  plan)  and  whose  effective  date  of  retirement
  precedes the date on which his or her retirement allowance begins.
    41.  "Age-fifty-five-increased-benefits  pension  plan" shall mean the
  rights, benefits and privileges granted by  the  provisions  of  section
  13-548       of       this       chapter      (relating      to      the
  age-fifty-five-increased-benefits  pension  plan),  by  paragraph  f  of
  subdivision   one   of   section  13-545  (relating  to  eligibility  of
  age-fifty-five-increased-benefits pension plan contributors for  service
  retirement),  and by paragraph e of subdivision one of section 13-554 of
  this  chapter  (relating  to  service  retirement  pensions  payable  to
  age-fifty-five-increased-benefits pension plan contributors).
    42. "Age-fifty-five-increased-benefits-pension plan contributor" shall
  mean  a  contributor  (a)  who  is  entitled  to retire for service upon
  attaining age fifty-five, as provided for in paragraph f of  subdivision
  one  of  section 13-545 of this chapter and (b) who, upon retirement for
  service, is entitled to a pension as provided  for  in  paragraph  e  of
  subdivision  one  of section 13-554 of this chapter (relating to service
  retirement pensions payable to age-fifty-five-increased-benefits pension
  plan contributors).
    43. "Initial date of retirement allowance payability" shall  mean  the
  earliest  date  as  of  which  the retirement allowance of a twenty-year
  pension plan contributor may be caused by him or her to  commence  under
  the  provisions  of  section  13-547  of  this  chapter (relating to the
  twenty-year pension plan).
    44. "Twenty-year-pension  plan  qualifying  service"  shall  mean  (a)
  credited  city-service  and  (b)  any  service credited to a twenty-year

  pension plan contributor by reason of transfer  to  the  New  York  city
  teachers'  retirement system pursuant to section five hundred twenty-two
  of the education law or section forty-three of the retirement and social
  security  law  or other applicable law authorizing a transfer of service
  credit  to  such  retirement  system  from  another  publicly  supported
  retirement system.
    45.  "Effective  contribution  rate  as  a  twenty-year  pension  plan
  contributor" shall mean the normal rate  of  contribution  fixed  for  a
  twenty-year   pension   plan  contributor  pursuant  to  the  applicable
  provisions  of  section  13-547  of  this  chapter  (relating   to   the
  twenty-year pension plan) or section 13-549 of this chapter (relating to
  deferred  eligibility  of  certain  retirees, withdrawn contributors and
  discontinued  members  for  benefits  under  certain   pension   plans);
  provided, however, that in any case where such a contributor contributes
  at  a  rate of fifteen per centum or more but less than such normal rate
  pursuant to paragraph (b) of subdivision seven of section 13-521 of this
  chapter  (relating  to  contributions  of   twenty-year   pension   plan
  contributors    and   age-fifty-five-increased-benefits   pension   plan
  contributors), the term herein defined shall mean his  or  her  rate  of
  contribution pursuant to such paragraph (b).
    46.        "Effective        contribution       rate       as       an
  age-fifty-five-increased-benefits pension plan contributor"  shall  mean
  the    normal    rate    of    contribution    fixed    for    an    age
  fifty-five-increased-benefits pension plan contributor pursuant  to  the
  applicable provisions of section 13-548 of this chapter (relating to the
  age-fifty-five-increased-benefits  pension  plan)  or  section 13-549 of
  this chapter (relating to  deferred  eligibility  of  certain  retirees,
  withdrawn  contributors  and  discontinued  members  for  benefits under
  certain pension plans); provided, however, that in any case where such a
  contributor contributes at a rate of fifteen per centum or more but less
  than such normal rate pursuant to paragraph (b) of subdivision seven  of
  section 13-521 of this chapter (relating to contributions of twenty-year
  pension  plan contributors and age fifty-five-increased-benefits pension
  plan contributors), the term herein defined shall mean his or  her  rate
  of contribution pursuant to such paragraph (b).
    47.  "Contribution  rate  fixation  date"  shall  have  the  following
  meanings:
    (a) Except as otherwise provided in paragraphs (b)  and  (c)  of  this
  subdivision,  such term shall mean the date on which a contributor first
  became a contributor, whether or not he or  she  subsequently  became  a
  withdrawn  contributor, or discontinued member and thereafter re-entered
  city-service.
    (b) In any case where a withdrawn contributor heretofore re-entered or
  hereafter re-enter service as a contributor without  being  entitled  to
  service credit and status prior to withdrawal as provided for in section
  13-506  of this chapter (relating to withdrawn contributors who re-enter
  service), such term shall mean the date upon which such contributor last
  re-entered  member-service  without  such  entitlement,  after  being  a
  withdrawn contributor.
    (c)  In  any  case  where  a  contributor became a discontinued member
  pursuant  to  section  13-556  of  this  chapter  (relating  to   vested
  retirement  rights) and after becoming such a member, re-entered service
  as a contributor without being entitled to  service  credit  and  status
  prior  to  withdrawal  as  provided for in such section, such term shall
  mean the date upon which such contributor, after becoming a discontinued
  member, last re-entered member-service without such entitlement.
    (d) In any case where a contributor has or acquires credit for service
  by reason of transfer of service credit pursuant to section five hundred

  twenty-two of the education law, section forty-three of  the  retirement
  and  social  security  law  or  any  other law authorizing a transfer of
  service credit to this retirement system from another publicly supported
  retirement system, such transferred service credit shall be deemed to be
  member-service for the purposes of this subdivision.
    48. "Twenty-five-year-age-fifty-five-one-per-centum contributor" shall
  mean  a  contributor  who,  by  reason  of  elections  made  pursuant to
  paragraph e of  subdivision  one  of  section  13-545  of  this  chapter
  (relating  to  the  age  fifty-five,  twenty-five year pension plan) and
  paragraph d of  subdivision  one  of  section  13-554  of  this  chapter
  (relating  to  election of a pension of one per centum of average salary
  for each year of  credited  service)  is  entitled  upon  retirement  to
  receive the benefits provided for by such paragraphs.
    49.  "Supplementary  interest".  An  annual  allowance, in addition to
  regular interest, of interest on the mean amount for the preceding  year
  in  each  of the funds provided for in accordance with the provisions of
  this chapter (excluding, however, the expense fund and  pension  reserve
  fund  number  two  and  the  amount  in the annuity savings fund and the
  amount in the contingent reserve fund to the extent that the  amount  in
  such  latter  fund  consists  of  reserves-for-increased-take-home-pay),
  which allowance, (a) for each of the periods as to which the  provisions
  of  section  13-535  of  this  chapter or section 13-638.2 of this title
  grant supplementary interest, consists of the amount prescribed by  such
  provisions  for such period and (b) for each such period, is credited in
  such  applicable  amount  to  such  funds  (with  the  exclusions  above
  mentioned  in  this  subdivision)  at the time, in the manner and to the
  extent provided for in the provisions of such section 13-535 or  section
  13-638.2.
    50.  "Actuarial  equivalent  benefit."  Any  benefit  which  by law is
  required to be an actuarial equivalent or  by  law  is  required  to  be
  determined on the basis of an actuarial equivalent.
    51.  "Seven percent member for actuarial equivalent benefit purposes."
  (a) A member who meets all of the following conditions:
    (i) subparagraph (i) of paragraph (g)  of  subdivision  twenty-two  of
  this  section  (relating to the definition of members as to whom regular
  interest at seven per centum per annum,  compounded  annually,  applies)
  applies to such member; and
    (ii)  an  actuarial  equivalent benefit (other than a variable annuity
  program benefit) has become payable to or on account of such member; and
    (iii) it is provided by a resolution adopted by the  retirement  board
  (A)  that a mortality table which does not differentiate on the basis of
  sex shall be used to calculate such actuarial equivalent  benefit  or  a
  portion  of  such  benefit  or  (B)  that  the modified Option 1 pension
  computation formula  (as  defined  in  subdivision  fifty-nine  of  this
  section) shall be used to calculate such actuarial equivalent benefit.
    (b) Except in cases to which the modified Option 1 pension computation
  formula  applies  pursuant  to  a  resolution  adopted by the retirement
  board, nothing contained in subparagraph (iii) of paragraph (a) of  this
  subdivision  shall  be  construed  as  referring  to  or  including  any
  calculation of an actuarial equivalent benefit (or  a  portion  of  such
  benefit)  payable  to  any  person where such calculation is required by
  retirement  board  resolution  to  be  made  through  the   use   of   a
  sex-differentiated mortality table.
    52.   "Tier   I  member."  A  member  whose  benefits  (other  than  a
  supplemental retirement allowance) are prescribed by  this  chapter  and
  who is not subject to the provisions of article eleven, article fourteen
  or article fifteen of the retirement and social security law.

    53.  "Tier  II  member."  A member who is subject to the provisions of
  article eleven of the retirement and social security law.
    54.  "Tier  III  member." A member who is subject to the provisions of
  article fourteen of the retirement and social security law.
    55. "Tier IV member." A member who is subject to  article  fifteen  of
  the retirement and social security law.
    56.  "Tier III member entitled to a vested benefit." A Tier III member
  who is entitled to a deferred vested benefit  under  the  provisions  of
  section five hundred sixteen of the retirement and social security law.
    57.  "Tier  IV  member entitled to a vested benefit." A Tier IV member
  who is entitled to a deferred vested benefit  under  the  provisions  of
  section six hundred twelve of the retirement and social security law.
    58. "Variable annuity program benefit." Any benefit under the variable
  annuity  program which is payable from the variable annuity reserve fund
  or the variable pension reserve fund.
    59. "Modified Option 1 pension computation formula." (a) The method of
  computing the pension component of  an  Option  1  retirement  allowance
  payable  to  a  Tier  I  member  and  the amount of the Option 1 benefit
  payable to the beneficiary or estate  of  the  member  who  selected  or
  selects  (or  is  deemed  to  have selected) Option 1 as to such pension
  component,  which  method  of  computation  is  as  prescribed  by   the
  succeeding paragraphs of this subdivision.
    (b)  The  initial reserve for such pension component shall be computed
  through use of mortality tables which do not differentiate on the  basis
  of  sex  (hereinafter  referred to as "gender-neutral mortality tables")
  and an interest assumption consisting of regular interest of  seven  per
  centum per annum, compounded annually.
    (c)  Solely  for  the  purpose  of  use  as the minuend from which the
  payments of such pension component to  such  member  are  subtracted  in
  order to determine the amount of the Option 1 benefit payable, upon such
  member's death, to such member's beneficiary or estate by reason of such
  Option  1  selection  in relation to such pension component, the present
  value of such member's maximum pension, as it was at the  time  of  such
  member's retirement, shall be deemed to be the greatest of:
    (i)  such  present  value  determined  on  the basis of gender-neutral
  mortality tables  and  an  interest  assumption  consisting  of  regular
  interest of seven per centum per annum, compounded annually; or
    (ii)  such  present  value  determined  on  the  basis  of  the female
  mortality tables and the regular interest applicable to such  member  in
  effect immediately prior to the date of enactment (as certified pursuant
  to  section  forty-one  of  the  legislative  law)  of  this subdivision
  fifty-nine; or
    (iii) such present value determined on the basis of the male mortality
  tables and the regular interest applicable  to  such  member  in  effect
  immediately prior to the date of enactment of this subdivision.
    (d)  The pension component payable to such member shall be computed on
  the basis of gender-neutral mortality tables and an interest  assumption
  consisting of regular interest of seven per centum per annum, compounded
  annually, so that:
    (i)  the  present  value,  as  it  was  at  the  time of such member's
  retirement, of such component; plus
    (ii) the present value, as  it  was  at  the  time  of  such  member's
  retirement,  of the amount payable to such member's Option 1 beneficiary
  or estate upon the death of the member as provided for by the applicable
  provisions of paragraph (e) of this subdivision; shall be equal  to  the
  Option  1  initial  reserve  determined  for such pension component with
  respect to such member pursuant to the provisions of  paragraph  (b)  of
  this subdivision.

    (e)(i)  Where  such member dies before he or she has received payments
  on account of such pension component equal to the present value of  such
  member's  maximum  pension as computed pursuant to paragraph (c) of this
  subdivision, the Option 1 benefit payable to the beneficiary  or  estate
  of  such  deceased  member,  by  reason  of  such  Option 1 selection in
  relation to such pension component, shall be the remainder  obtained  by
  subtracting   from  such  present  value  determined  pursuant  to  such
  paragraph (c) in relation to such pension component, the total  of  such
  Option  1  payments  on account of such pension component received by or
  payable to such member for the period prior to his or her death.
    (ii) In any case where the Option 1 beneficiary's benefit referred  to
  in subparagraph (i) of this paragraph (e) is payable to such beneficiary
  in  the  form of an annuity payable in installments, or in the form of a
  lesser annuity, with provision  that  any  unexhausted  balance  of  the
  initial  reserve  for  such lesser annuity shall be paid to a designated
  beneficiary or to an estate, such annuity or  lesser  annuity  shall  be
  determined  to  be  the  greater  of  the  following  in relation to the
  beneficiary entitled to such annuity or lesser annuity:
    (A) such  annuity  or  lesser  annuity  calculated  on  the  basis  of
  gender-neutral mortality tables and an interest assumption consisting of
  regular interest of seven per centum per annum, compounded annually; or
    (B)  such  annuity  or  lesser  annuity calculated on the basis of the
  female mortality tables applicable to such an annuity or lesser  annuity
  or  lesser  annuity,  as  the  case  may  be,  and  the regular interest
  applicable to such member, as such tables and interest  were  in  effect
  immediately  prior  to  the  date of enactment (as certified pursuant to
  section forty-one of the legislative law) of this subdivision; or
    (C) such annuity or lesser annuity calculated on the basis of the male
  mortality tables applicable to such an annuity or lesser annuity, as the
  case may be, and the regular interest applicable to such member, as such
  tables and interest were in effect immediately  prior  to  the  date  of
  enactment of this subdivision.
    (iii)  Any  unexhausted  balance  of  an  initial reserve payable to a
  designated beneficiary or to an estate after payment of a lesser annuity
  as described in subparagraph (ii) of this paragraph shall be the balance
  of such reserve remaining after there is subtracted from  such  reserve,
  the total amount of such lesser annuity payments paid or payable for the
  period prior to the annuitant's death.
    (f)  In  relation  to the Option 1 benefits determined pursuant to the
  method of computation  set  forth  in  this  subdivision  by  reason  of
  discontinuance  by  a  discontinued  member,  the  phrase  "time of such
  member's retirement," as set forth in paragraphs (c)  and  (d)  of  this
  subdivision,  shall  be deemed, for the purposes of this subdivision, to
  mean the date of  commencement  of  the  retirement  allowance  of  such
  discontinued member.
    60.  "Selection  of  mode of benefit." The choice made by a member (as
  permitted by and pursuant to the  requirements  of  law  governing  such
  choice  by  such  member) as to whether the maximum amount of his or her
  retirement allowance or a component thereof shall  be  payable  or  such
  retirement  allowance  or  a component thereof shall be payable under an
  option selected by the member. The term "selection of mode  of  benefit"
  shall include a case where the maximum retirement allowance or a maximum
  component thereof becomes payable because of a member's omission, within
  the time permitted by law, to select the maximum benefit or an option.
    61.  "Best-of-three-computations  method." (a) A method (as prescribed
  by a resolution of  the  retirement  board)  under  which  a  retirement
  allowance  (or  portion  thereof)  payable to a member is required to be
  determined for such member so that:

    (i) if such retirement allowance (or portion thereof) does not include
  a variable  annuity  program  benefit,  such  retirement  allowance  (or
  portion thereof) is the greatest of:
    (A)  such  retirement allowance (or portion thereof) determined on the
  basis of gender-neutral mortality tables and  regular  interest  at  the
  rate of seven per centum per annum; or
    (B)  such  retirement allowance (or portion thereof) determined on the
  basis of female mortality tables and the regular interest applicable  to
  such member as of a time prescribed in such resolution; or
    (C)  such  retirement allowance (or portion thereof) determined on the
  basis of male mortality tables and the regular  interest  applicable  to
  such member as of a time prescribed in such resolution; and
    (ii)  if  such  retirement  allowance  (or portion thereof) includes a
  variable annuity program benefit,  then  the  part  of  such  retirement
  allowance  (or  portion thereof) other than any variable annuity program
  benefit is determined in the manner provided for by subparagraph (i)  of
  this  paragraph  and  such  variable annuity program benefit (or portion
  thereof) is the greatest of:
    (A)  such  variable  annuity  program  benefit  (or  portion  thereof)
  determined on the basis of gender-neutral mortality tables and a uniform
  rate  of  interest of four percent, as such rate of interest is provided
  for in section 13-578 of the code; or
    (ii) such  variable  annuity  program  benefit  (or  portion  thereof)
  determined on the basis of female mortality tables and such uniform rate
  of interest of four percent; or
    (iii)  such  variable  annuity  program  benefit  (or portion thereof)
  determined on the basis of male mortality tables and such  uniform  rate
  of interest of four percent.
    (b)  Where,  under  the  provisions  of  any  such  resolution  of the
  retirement board, the modified Option 1 pension computation formula  (as
  defined  in  subdivision  fifty-nine  of  this  section)  applies to any
  member, the term, "best-of-three-computations  method,"  where  used  in
  relation to such member, shall be deemed to include such modified Option
  1  pension  computation formula, to the extent that such formula governs
  the determination of the pension component (or portion thereof) of  such
  member's retirement allowance.
    61-a. "Gender-neutral computations method." A method (as prescribed by
  a resolution of the retirement board) under which a retirement allowance
  (or portion thereof) payable to a member is required to be determined in
  the following manner:
    (a) if such retirement allowance (or portion thereof) does not include
  a  variable  annuity  program  benefit,  such  retirement  allowance (or
  portion thereof) is determined on the basis of gender-neutral  mortality
  tables  and  regular interest at the rate of seven per centum per annum,
  without  reference  to  any  other  actuarial  mortality   or   interest
  assumption; or
    (b)  if  such  retirement  allowance  (or  portion thereof) includes a
  variable annuity program benefit,  then  the  part  of  such  retirement
  allowance  (or  portion thereof) other than any variable annuity program
  benefit is determined in the manner provided for  by  paragraph  (a)  of
  this  subdivision, and such variable annuity program benefit (or portion
  thereof) is determined on the basis of gender-neutral  mortality  tables
  and a uniform rate of interest of four percent (as such rate of interest
  is provided for in section 13-578 of the code), without reference to any
  other actuarial mortality or interest assumption.
    62.  "Person  entitled to a recomputation of benefits." Any person who
  meets all of the conditions stated below in this subdivision:

    (a) such person, during the period beginning on August first, nineteen
  hundred  eighty-three  and  ending  on  the  date  next  preceding   the
  termination  date  of eligibility for option re-selection (as defined in
  subdivision sixty-four of this section),  (i)  retired  or  retires  for
  service  or  superannuation  or  for ordinary or accident disability, or
  (ii) discontinued or discontinues member  service  so  as  to  become  a
  discontinued  member, or (iii) terminated or terminates employment so as
  to become a Tier III member entitled to a vested benefit or  a  Tier  IV
  member entitled to a vested benefit; and
    (b)  such  person's  retirement  allowance  (or a portion thereof), by
  reason of  such  retirement  or  discontinuance  of  member  service  or
  termination  of  employment,  is required by a resolution adopted by the
  board to be re-determined  pursuant  to  the  best-of-three-computations
  method (as defined in subdivision sixty-one of this section); and
    (c)  the  date  of  commencement of such person's benefits occurred or
  occurs the termination date of eligibility for option  re-selection  (if
  such  person,  at  the  time of retirement, discontinuance of service or
  termination of employment, was a Tier I member, Tier II member  or  Tier
  III  member);  or  (if  such  person,  at  the  time  of  retirement, or
  termination of employment, was a Tier IV member), his or  her  effective
  date  of  retirement  (or date of commencement of benefits, if he or she
  was a Tier IV member entitled to a vested benefit)  occurred  or  occurs
  prior to the termination date of eligibility for option re-selection.
    63.  "Joint  and  survivor option". (a) Any option under which, at the
  time when such option is selected, a choice is made which includes both:
    (i) a benefit payable for the lifetime of the retired or vested member
  by whom or in whose behalf such option is selected; and
    (ii)  a  benefit  (A)  which  consists  of  an  amount  equal  to   or
  constituting a percentage of such retired or vested member's benefit and
  (B)  which  is  payable  for  the  lifetime  of a designated beneficiary
  selected at the time when such option is selected.
    (b) In any case where an option described in  paragraph  (a)  of  this
  subdivision  includes  a  provision  prescribing  that if the designated
  beneficiary predeceases such retired or vested member, a maximum benefit
  shall become payable to such member, such option shall  nevertheless  be
  deemed to be a joint and survivor option.
    64.  "Termination  date  of eligibility for option re-selection" shall
  mean October first, nineteen hundred eighty-seven, provided that if  the
  executive  director of the retirement system certifies to the retirement
  board that as of such October first, or any later termination date which
  the retirement board may establish pursuant to the  provisions  of  this
  subdivision  sixty-four,  it  will  not  be administratively feasible to
  process benefits (including conversions from fixed to variable  benefits
  and  vice versa) under the best-of-three-computations method (as defined
  in subdivision sixty-one of  this  section)  and/or  the  gender-neutral
  computations  methods  (as  defined  in  subdivision sixty-one-a of this
  section) for any persons  who  are  entitled,  pursuant  to  law  and/or
  retirement board resolution, to benefits so computed then the retirement
  board, by resolution, may extend the termination date of eligibility for
  options  re-selection,  as  applicable to such persons, to a later date,
  provided  further,  however,  that  any  such  extension  or  extensions
  directed   by   the   retirement   board   upon  such  certification  or
  certifications shall not result in any such  extended  termination  date
  later  than  eighteen  months  after  October  first,  nineteen  hundred
  eighty-seven. In the event that any such  extension  is  directed  by  a
  resolution  of  the  retirement  board  adopted  prior  to  the  date of
  enactment of this  subdivision  sixty-four,  such  extension,  upon  the
  enactment  of  this  subdivision, shall be valid and effective as of the

  date of adoption of such resolution in the same manner and to  the  same
  extent as if such enactment had occurred before such date of adoption.
    * 65.  "Basic rate of contribution as a Tier I or Tier II member." (a)
  Subject to the provisions of paragraph  (b)  of  this  subdivision,  the
  "basic  rate  of contribution of a Tier I or Tier II member" in the case
  of any contributor who is such a member shall mean the  percent  of  the
  total amount of salary earnable by such contributor in a payroll period,
  which  percent,  pursuant  to  the  provisions of section 13-521 of this
  chapter and other applicable  provisions  thereof,  is  required  to  be
  deducted  as  the member contributions of such contributor, exclusive of
  any increase in such contributions resulting from an  election  by  such
  contributor  pursuant  to  section 13-525 of this chapter or subdivision
  two of section 13-554 of this chapter to effect such an increase, or any
  decrease  in  such  contributions  on  account  of   any   program   for
  increased-take-home-pay  or  pursuant  to subdivision one of section one
  hundred  thirty-eight-b  of  the  retirement  and  social  security  law
  (relating  to election to decrease member contributions by contributions
  due on account of social security coverage).
    (b) In any case  where  it  is  provided  in  this  chapter  that  the
  deduction  from salary on account of member contributions required to be
  made by a contributor who is a Tier I member or Tier II member shall not
  be in excess of fifteen per centum unless the contributor so elects, and
  such contributor makes such election, any per centum of  such  deduction
  in  excess  of fifteen per centum with respect to such contributor shall
  not be included in such contributor's basic rate of  contribution  as  a
  Tier I or Tier II member.
    * NB Expires per ch. 681/92 § 16
    * 66.  "Contributing  Tier  I  or Tier II member." With respect to any
  payroll period as to which the status of a contributor who is a  Tier  I
  member  or  Tier  II member as to required member contributions is to be
  determined, the term "contributing Tier I or Tier II member" shall  mean
  any  Tier  I  member  or  Tier II member other than any such member who,
  under the provisions of section 13-524 of this chapter, is not  required
  to  contribute  during  such  payroll period. A contributor who, being a
  Tier I member or Tier II member, is not required to contribute under the
  provisions of such section 13-524, but  who  nevertheless  continues  to
  make member contributions, shall not be deemed to be a contributing Tier
  I or Tier II member.
    * NB Expires per ch. 681/92 § 16
    * 67.  "Employer responsible for pick up." The public employer by whom
  a Tier I member or Tier II member is employed.
    * NB Expires per ch. 681/92 § 16
    * 68. "Tier I or Tier II member contributions eligible for pick up  by
  the employer." (a) With respect to any payroll period for a contributing
  Tier  I  or  Tier II member (as defined in subdivision sixty-six of this
  section), the term "Tier I or Tier II member contributions eligible  for
  pick  up  by the employer" shall mean the amount of member contributions
  which, in the absence of a pick up program  applicable  to  such  member
  pursuant  to  section 13-521.1 of this chapter (providing for pick up of
  required member contributions of certain contributing Tier I or Tier  II
  members)  would  be  required  by law to be deducted, on account of such
  member's basic rate of contribution as a Tier I or Tier  II  member  (as
  defined  in  subdivision sixty-five of this section), from the salary of
  such member for such payroll period, after  (1)  giving  effect  to  any
  reduction   in   such  contributions  required  under  any  program  for
  increased-take-home-pay or pursuant to subdivision one  of  section  one
  hundred thirty-eight-b of the retirement and social security law and (2)
  excluding  any  deductions from such salary (or redeposits, restorations

  or  payments)  on  account  of  (i)  loans  or  withdrawal   of   excess
  contributions  or  (ii) any election by any such member, pursuant to any
  applicable provision of law, to increase his or her member contributions
  above the level prescribed by his or her basic rate of contribution as a
  Tier  I  or  Tier II member or (iii) any other cause not attributable to
  the member's basic rate of contribution as a Tier I or  Tier  II  member
  after  reduction  in such rate, if any, as described in subparagraph one
  of this paragraph (a). The term "Tier I or Tier II member  contributions
  eligible  for pick up by the employer" shall also mean the contributions
  made by a member  pursuant  to  the  terms  of  an  irrevocable  payroll
  deduction  agreement  for  the  purchase  of  credit  for  prior service
  pursuant  to  subdivision  g  of  section  13-505  of  this  chapter  or
  subdivision  b-1 of section four hundred forty-six of the retirement and
  social security law.
    (b) If no deductions on account of any  contributor's  basic  rate  of
  contribution  as  a  Tier  I or Tier II member are required by law to be
  made from the salary of such contributor for any  payroll  period,  such
  contributor  shall not have, for such payroll period, any such Tier I or
  Tier II member contributions eligible  for  pick  up  by  the  employer;
  provided,  however,  that  member  contributions required pursuant to an
  irrevocable payroll  deduction  agreement  for  the  purchase  of  prior
  service  credit for such payroll period shall be eligible for pick up by
  the employer. Except as otherwise provided pursuant to the terms  of  an
  irrevocable  payroll  deduction  agreement  for  the  purchase  of prior
  service credit, the amount of Tier I or  Tier  II  member  contributions
  eligible  for  pick  up  by the employer of any Tier I member or Tier II
  member for any payroll period shall be determined solely on the basis of
  salary which would have been paid to such member for such payroll period
  by his or her public employer in  the  absence  of  a  pick  up  program
  applicable  to such member pursuant to section 13-521.1 of this chapter.
  A Tier I member or Tier II member shall not have any Tier I or  Tier  II
  member  contributions  eligible for pick up by the employer with respect
  to any payroll period for which he or she is not paid salary by  his  or
  her public employer.
    * NB  Effective until notice of ruling by Internal Revenue Service per
  ch. 627/2007 §22
    * 68. "Tier I or Tier II member contributions eligible for pick up  by
  the employer." (a) With respect to any payroll period for a contributing
  Tier  I  or  Tier II member (as defined in subdivision sixty-six of this
  section), the term "Tier I or Tier II member contributions eligible  for
  pick  up  by the employer" shall mean the amount of member contributions
  which, in the absence of a pick up program  applicable  to  such  member
  pursuant  to  section 13-521.1 of this chapter (providing for pick up of
  required member contributions of certain contributing Tier I or Tier  II
  members)  would  be  required  by law to be deducted, on account of such
  member's basic rate of contribution as a Tier I or Tier  II  member  (as
  defined  in  subdivision sixty-five of this section), from the salary of
  such member for such payroll period, after  (1)  giving  effect  to  any
  reduction   in   such  contributions  required  under  any  program  for
  increased-take-home-pay or pursuant to subdivision one  of  section  one
  hundred thirty-eight-b of the retirement and social security law and (2)
  excluding  any  deductions from such salary (or redeposits, restorations
  or  payments)  on  account  of  (i)  loans  or  withdrawal   of   excess
  contributions  or  (ii) any election by any such member, pursuant to any
  applicable provision of law, to increase his or her member contributions
  above the level prescribed by his or her basic rate of contribution as a
  Tier I or Tier II member or (iii) any other cause  not  attributable  to
  the  member's  basic  rate of contribution as a Tier I or Tier II member

  after reduction in such rate, if any, as described in  subparagraph  one
  of  this  paragraph.  The  term  "Tier I or Tier II member contributions
  eligible for pick up by the employer" shall also mean the  contributions
  made  by  a  member  pursuant  to  the  terms  of an irrevocable payroll
  deduction agreement for the purchase of  credit  for  prior  service  or
  credit  for  military  service,  provided,  however,  that contributions
  picked up for the purchase of  credit  for  military  service  shall  be
  deposited  in  the  employer contribution account in accordance with the
  provisions of subdivision four of section one thousand of the retirement
  and social security law pursuant to subdivision g of section  13-505  of
  this chapter or subdivision b-1 of section four hundred forty-six of the
  retirement and social security law.
    (b)  If  no  deductions  on account of any contributor's basic rate of
  contribution as a Tier I or Tier II member are required  by  law  to  be
  made  from  the  salary of such contributor for any payroll period, such
  contributor shall not have, for such payroll period, any such Tier I  or
  Tier  II  member  contributions  eligible  for  pick up by the employer;
  provided, however, that member contributions  required  pursuant  to  an
  irrevocable  payroll  deduction  agreement  for  the  purchase  of prior
  service credit for such payroll period shall be eligible for pick up  by
  the  employer.  Except as otherwise provided pursuant to the terms of an
  irrevocable payroll  deduction  agreement  for  the  purchase  of  prior
  service  credit,  the  amount  of Tier I or Tier II member contributions
  eligible for pick up by the employer of any Tier I  member  or  Tier  II
  member for any payroll period shall be determined solely on the basis of
  salary which would have been paid to such member for such payroll period
  by  his  or  her  public  employer  in  the absence of a pick up program
  applicable to such member pursuant to section 13-521.1 of this  chapter.
  A  Tier  I member or Tier II member shall not have any Tier I or Tier II
  member contributions eligible for pick up by the employer  with  respect
  to  any  payroll period for which he or she is not paid salary by his or
  her public employer.
    * NB Takes effect upon notice of ruling by  Internal  Revenue  Service
  per ch. 627/2007 §22
    * NB Expires per ch. 681/92 § 16
    * 69.  "Starting  date  for pick up." The first day of the first whole
  payroll period commencing after the date which is sixty days  after  the
  internal  revenue service have issued a ruling that member contributions
  picked  up  pursuant  to  section  13-525.1  of  this  chapter  are  not
  includible  as  gross  income  for  federal  income  tax  purposes until
  distributed or made available.
    * NB Expires per ch. 681/92 § 16