Section 13-705. Acquisition, management and protection of investments of retirement system funds

a.  As  used  in  this  section,  the   term  "retirement  system"  shall mean any of the following: the New York city
  employees' retirement system, the New  York  city  teachers'  retirement
  system,  the  New  York  city  board of education retirement system, the
  police pension fund maintained pursuant to subchapter two of chapter two
  of this title and the fire department pension fund  maintained  pursuant
  to subchapter two of chapter three of this title.
    b.  Notwithstanding  any  other provision of law to the contrary, such
  expenses as may necessarily  be  incurred  by  a  retirement  system  in
  acquiring,  managing and protecting investments of its funds may be paid
  from  any  income,  interest  or  dividends  derived  from  deposits  or
  investments of such funds.
    c. (1) The provisions of this section shall not be applicable:
    (i)  to  the  acquisition,  management or protection of investments of
  variable annuity funds of the New York city teachers' retirement  system
  or of variable annuity funds of any other retirement system which may at
  any time have a variable annuity program; or
    (ii)  to  contracts  for  services  in  relation  to  the acquisition,
  management or protection of investments of any  variable  annuity  funds
  referred to in subparagraph (ii) of this paragraph one.
    (2)  Nothing contained in this section shall be construed as amending,
  modifying or affecting section 13-570 of this title.
    d. In each city fiscal year, beginning with investment  expenses  paid
  during  the  nineteen hundred ninety-eight--nineteen hundred ninety-nine
  fiscal year, whenever the income, interest  or  dividends  derived  from
  deposits  or  investments  of  the funds of a retirement system are used
  pursuant to subdivision b of this section to pay the  expenses  incurred
  by   such   retirement  system  in  acquiring,  managing  or  protecting
  investments of its funds, the monies so paid shall be made a  charge  to
  be  paid  by  each  participating  employer  otherwise  required to make
  contributions to such retirement system no later than  the  end  of  the
  fiscal  year  next  succeeding  the fiscal year during which such monies
  were drawn upon, provided, however, that where such charge is  for  such
  investment  expenses  paid  during  fiscal  year  two thousand four--two
  thousand five or during any subsequent fiscal year, such charge shall be
  paid by each such participating employer no later than the  end  of  the
  second  fiscal  year succeeding the fiscal year during which such monies
  were drawn upon. In the event that such retirement system has more  than
  one  participating employer, the actuary shall calculate and allocate to
  each such participating employer its share of such charge.  All  charges
  to  be  paid  pursuant  to this subdivision shall be paid at the regular
  rate of  interest  utilized  by  the  actuary  in  determining  employer
  contributions  to  the  retirement  system pursuant to the provisions of
  paragraph two of subdivision b of section 13-638.2 of this title.