Section 2575. Retirement of employees of board of education

1. (a) The
  board of education of  a  city  school  district  of  a  city  having  a
  population of one hundred thousand or more shall have power to establish
  a retirement system for all civil employees permanently employed by said
  board  other  than  superintendents  and teachers who may now be retired
  under the provisions of other retirement laws. In any such city in which
  there is a bureau of compulsory  education,  school  census,  and  child
  welfare  established  under the provisions of this chapter, all persons,
  except for attendance teachers  and  specially  certificated  attendance
  officers who are first employed by a board of education of a city having
  a  population  of  one  million  or  more, beginning on the first day of
  September, nineteen hundred sixty-eight,  and  further  except  for  the
  director   of   attendance,  assistant  director  of  attendance,  chief
  attendance  officer,  division  supervising  attendance   officer,   and
  district  supervising  attendance  officer, supervisors of school social
  workers, who were first employed by a  board  of  education  of  a  city
  having  a  population of one million or more, beginning on the first day
  of September nineteen hundred sixty-nine, of  which  such  a  bureau  of
  compulsory education, school census, and child welfare consists shall be
  members  of  the  retirement  system  created  in  accordance  with  the
  provisions of this section, provided that any such  person  who  on  May
  fourth,  nineteen hundred twenty-six, was a member of another retirement
  system in such city may continue such membership so long as  he  or  she
  holds  an  office  or position in such bureau. Transfer of membership of
  any such persons from another retirement system to a  retirement  system
  as  herein  provided  shall be made in accordance with the provisions of
  section fifty-nine of the civil service law. The board of  education  of
  such  city  shall  adopt  appropriate  rules  and  regulations  for  the
  government, management and control of the retirement of said  employees;
  except  that  in  regard  to  the  actions  of  the governing board of a
  retirement  system  governed  by  such  rules   and   regulations,   the
  concurrence   of   one  employee  representative  and  one  non-employee
  representative shall be necessary for an act of such  board,  and  there
  shall  be  no  fewer  than  two  employee representatives of such board.
  Before they become effective such rules and regulations must be approved
  by the board of estimate, or the board of estimate and apportionment  in
  a  city  having  such  body,  and  in a city not having such body by the
  common council or such other officers or bodies as have  the  management
  and control of financial affairs similar to that exercised by such board
  of  estimate  or  board  of  estimate  and  apportionment.  The board of
  estimate or the board of estimate and apportionment  in  a  city  having
  such  body,  and  in  other cities the officers or bodies performing the
  functions similar to those of a board of estimate or a board of estimate
  and apportionment shall appropriate annually the sum  necessary  to  pay
  the  expenses  of the administration of this section, except that in the
  city of New York such appropriations shall be made pursuant  to  chapter
  six  of  the New York city charter, and also to pay such pensions to the
  employees herein described as they shall be entitled to receive annually
  under the rules and regulations prescribed by the board of education and
  approved by the  said  board  of  estimate  or  board  of  estimate  and
  apportionment or other authorities.
    (b) (1) The rules and regulations prescribed by the board of education
  and  approved  by  the  board  of  estimate or the board of estimate and
  apportionment or other authorities named herein shall  provide  for  the
  annual  payment  of a pension which shall be a per centum of the average
  annual personal compensation of  an  employee  for  the  five  years  of
  service  immediately  preceding  his  retirement,  except  as  otherwise
  provided in subparagraph two of this paragraph (b).

    (2) Such rules and regulations so prescribed and approved with respect
  to any such retirement system established in the city school district of
  a city having a population of one million or more may  provide  for  the
  annual  payment  of  a  pension  which  shall  be  a  per  centum of the
  compensation  of  an employee during any period designated in such rules
  and regulations; provided, however, that such period shall in  no  event
  be less than one year or more than five years.
    2.  In  a city having a population of one million or more and having a
  teachers'  retirement  board,  changes,   alterations,   amendments   or
  modifications   in   the  rules  and  regulations  established  for  the
  administration of this section shall be adopted as follows:
    The board of education of said city may adopt and  shall  submit  such
  changes,  alterations,  amendments or modifications, hereinafter in this
  subdivision referred to as changes, to said teachers'  retirement  board
  for  approval.  Said teachers' retirement board shall within thirty days
  after the submission to it of such changes transmit  to  said  board  of
  education  a statement in writing setting forth which of such changes it
  approves and which it disapproves, if any,  and  the  reasons  for  such
  disapproval.  If said teachers' retirement board shall approve of all of
  such changes, then such changes shall immediately become  effective  and
  in full force and operation.
    If  said  teachers' retirement board shall disapprove of all or any of
  such  changes  and  if  said  board  of  education  and  said  teachers'
  retirement  board within thirty days thereafter shall fail to agree upon
  changes in place of the changes so disapproved, then the  changes  shall
  be  submitted by said board of education within ten days after the lapse
  of said thirty days to the commissioner of education who shall have full
  power to approve, alter  or  modify  the  changes  disapproved  by  said
  teachers'  retirement  board,  and  the  action  of  the commissioner of
  education shall be final, and thereupon the  changes  approved  by  said
  teachers'  retirement  board  and  the  changes  as approved, altered or
  modified by the  commissioner  of  education  shall  immediately  become
  effective and in full force and operation.
    Should  said  teachers'  retirement board fail either to approve or to
  disapprove all or  any  of  such  changes  submitted  to  it  as  herein
  provided, then such changes not approved or not disapproved shall at the
  expiration  of the thirty days immediately following their submission to
  said teachers' retirement board be deemed to have been approved by  said
  teachers'  retirement  board  and  such changes shall immediately become
  effective and in full force and operation.
    Said teachers' retirement board  and  the  trustees  of  any  variable
  annuity  funds  created  by  said rules and regulations may negotiate an
  agreement whereby said variable annuity funds are commonly invested with
  the variable annuity funds of said teachers' retirement board.  In  such
  event,  final  authority  for  investing  such funds shall rest with the
  teachers' retirement board  for  the  period  of  such  agreement.  Such
  agreement  shall  be  for  a  period not to exceed five years but may be
  renewed.
    3.  Notwithstanding  any  provision  of  this  section  or  any  other
  provision  of  law, in a city having a population of one million or more
  the board of education is authorized to adopt a resolution amending  the
  provisions  governing  any  retirement  system  adopted  pursuant  to or
  subject to the provisions of this section to the extent necessary to put
  into  effect   a   pensions-providing-for-increased-take-home-pay   plan
  analogous  to  that  authorized  by  a  chapter  of the laws of nineteen
  hundred sixty, entitled "An act to amend the administrative code of  the
  city   of   New  York,  in  relation  to  authorizing  the  addition  of
  pensions-providing-for-increased-take-home-pay and death  benefits  with

  respect  to  the  New  York  city  employees'  retirement  system." Such
  resolution of the board of education, however,  shall  not  take  effect
  until and unless it is approved by the board of estimate of such city.
    4.  Notwithstanding  any  provision  of  this  section  or  any  other
  provision of law, in a city having a population of one million  or  more
  the  board of education is authorized to adopt a resolution amending the
  provisions governing  any  retirement  system  adopted  pursuant  to  or
  subject to the provisions of this section to the extent necessary to put
  into   effect   a   pensions-providing-for-increased-take-home-pay  plan
  analogous to that authorized by  a  chapter  of  the  laws  of  nineteen
  hundred  sixty-two, entitled "An act to amend the administrative code of
  the city of New York, in relation to authorizing pensions-providing-for-
  increased-take-home-pay and death benefits with respect to the New  York
  city  employees'  retirement  system."  Such  resolution of the board of
  education, however, shall  not  take  effect  until  and  unless  it  is
  approved by the board of estimate of such city.
    5.  Notwithstanding  any  provision  of  this  section  or  any  other
  provision of law, in a city having a population of one million  or  more
  the  board of education is authorized to adopt a resolution amending the
  provisions governing  any  retirement  system  adopted  pursuant  to  or
  subject to the provisions of this section to the extent necessary to put
  into  effect  a  pensions-providing-for-increased-take-home-pay plan for
  the  fiscal  year   nineteen   hundred   sixty-three--nineteen   hundred
  sixty-four  analogous  to  that  authorized for the fiscal year nineteen
  hundred sixty-two--nineteen hundred sixty-three by chapter seven hundred
  eighty-seven of the laws of nineteen hundred sixty-two. Such  resolution
  of  the  board  of  education,  however, shall not take effect until and
  unless it is approved by the mayor of such city.
    6.  Notwithstanding  any  provision  of  this  section  or  any  other
  provision  of law, in a city having a population of one million or more,
  the board of education is authorized to adopt a resolution amending  the
  provisions  governing  any  retirement  system  adopted  pursuant  to or
  subject to the provisions of this section to the extent necessary to put
  into effect a  pensions-providing-for-increased-take-home-pay  plan  for
  the fiscal year nineteen hundred sixty-four--nineteen hundred sixty-five
  analogous  to  that  authorized  for  the  fiscal  year nineteen hundred
  sixty-three--nineteen  hundred  sixty-four  by  chapter   five   hundred
  seventeen  of  the laws of nineteen hundred sixty-three. Such resolution
  of the board of education, however, shall  not  take  effect  until  and
  unless it is approved by the mayor of such city.
    7.  Notwithstanding  any  provision  of  this  section  or  any  other
  provision of law, in a city having a population of one million or  more,
  the  board of education is authorized to adopt a resolution amending the
  provisions governing  any  retirement  system  adopted  pursuant  to  or
  subject to the provisions of this section to the extent necessary to put
  into  effect  a  pensions-providing-for-increased-take-home-pay plan for
  the fiscal year nineteen hundred sixty-five--nineteen hundred  sixty-six
  analogous  to  that  authorized  for  the  fiscal  year nineteen hundred
  sixty-two--nineteen  hundred  sixty-three  by  chapter   seven   hundred
  eighty-nine  of  the laws of nineteen hundred sixty-two. Such resolution
  of the board of education, however, shall  not  take  effect  until  and
  unless it is approved by the mayor of such city.
    8.  Notwithstanding  any  provision  of  this  section  or  any  other
  provision of law, in a city having a population of one million or  more,
  the  board of education is authorized to adopt a resolution amending the
  provisions governing  any  retirement  system  adopted  pursuant  to  or
  subject to the provisions of this section to the extent necessary to put
  into  effect  a  pensions-providing-for-increased-take-home-pay plan for

  the fiscal year nineteen hundred sixty-six--nineteen hundred sixty-seven
  analogous to that  authorized  for  the  fiscal  year  nineteen  hundred
  sixty-two--nineteen   hundred   sixty-three  by  chapter  seven  hundred
  eighty-nine  of  the laws of nineteen hundred sixty-two. Such resolution
  of the board of education, however, shall  not  take  effect  until  and
  unless it is approved by the mayor of such city.
    9.  Notwithstanding  any  provision  of  this  section  or  any  other
  provision of law, in a city having a population of one million or  more,
  the  board of education is authorized to adopt a resolution amending the
  provisions governing  any  retirement  system  adopted  pursuant  to  or
  subject to the provisions of this section to the extent necessary to put
  into  effect  a  pensions-providing-for-increased-take-home-pay plan for
  the  fiscal   year   nineteen   hundred   sixty-seven-nineteen   hundred
  sixty-eight  analogous  to  that authorized for the fiscal year nineteen
  hundred sixty-two-nineteen hundred sixty-three by chapter seven  hundred
  eighty-nine  of  the laws of nineteen hundred sixty-two. Such resolution
  of the board of education, however, shall  not  take  effect  until  and
  unless it is approved by the mayor of such city.
    10.  Notwithstanding  any  provision  of  this  section  or  any other
  provision of law, in a city having a population of one million or  more,
  the  board of education is authorized to adopt a resolution amending the
  provisions governing  any  retirement  system  adopted  pursuant  to  or
  subject to the provisions of this section to the extent necessary to put
  into  effect  a  pension-providing-for-increased-take-home-pay  plan, in
  addition to the plan authorized by subdivision nine of this section, for
  members who are employees of the board of education  in  the  titles  of
  attendance  teacher,  attendance  officer,  attendance  teacher (Spanish
  speaking),  auxiliary  attendance  teacher,  or   auxiliary   attendance
  officer,  for  the  period September first, nineteen hundred sixty-seven
  through June thirtieth, nineteen hundred sixty-eight, analogous to  that
  authorized  for  the  fiscal  year  nineteen hundred sixty-two--nineteen
  hundred sixty-three by chapter seven hundred eighty-nine of the laws  of
  nineteen  hundred sixty-two, provided, however, that the reduced rate of
  contribution factor to be used on computing the reduction  provided  for
  in the resolution authorized by this subdivision in the contributions of
  such  members  may  be designated by the board of education as three per
  centum.   Such  resolution  may  contain  provisions  for  a  period  of
  retroactive  applicability  analogous  to  those  contained in paragraph
  thirteen of subdivision j of section B3--36.1 of the administrative code
  of the city of New York, as such section  was  added  by  chapter  seven
  hundred  eighty-seven  of  the  laws of nineteen hundred sixty-two. Such
  resolution may also provide that the amount of  the  reduction  provided
  for  in  the resolution in the contributions of any members to whom such
  resolution  applies,  attributable  to   the   period   of   retroactive
  applicability of such resolution shall be refunded by the system without
  interest.  Such resolution of the board of education, however, shall not
  take effect until and unless it is approved by the mayor of such city.
    11. Notwithstanding  any  provision  of  this  section  or  any  other
  provision  of law, in a city having a population of one million or more,
  the board of education is authorized to adopt a resolution amending  the
  provisions  governing  any  retirement  system  adopted  pursuant  to or
  subject to the provisions of this section to the extent necessary to put
  into effect a  pensions-providing-for-increased-take-home-pay  plan  for
  the   fiscal   year   nineteen   hundred  sixty-eight--nineteen  hundred
  sixty-nine analogous to that authorized for  the  fiscal  year  nineteen
  hundred sixty-two--nineteen hundred sixty-three by chapter seven hundred
  eighty-nine  of  the  laws  of  nineteen  hundred  sixty-two,  provided,
  however, that

    (1) the reduced rate of contribution factor to be  used  in  computing
  the reduction in contributions of members who are employees of the board
  of  education  in  the titles of attendance teacher, attendance officer,
  attendance teacher (spanish speaking), auxiliary attendance teacher, may
  be  designated  by  the  board  of  education  as  eight per centum, and
  provided further, however, that
    (2) the reduced rate of contribution factor to be  used  in  computing
  the  reductions of any member who is eligible for the benefits analogous
  to the career pension plan of the New York  city  employees'  retirement
  system,  if  a bill entitled "An act to amend the administrative code of
  the city of New York and the military  law,  in  relation  to  providing
  additional  rights, privileges, and benefits for members of the New York
  city employees' retirement system and establishing  an  optional  career
  pension  plan  for  certain of such members" is enacted into law, and if
  the board of education  adopts  a  resolution  amending  the  provisions
  governing  any  retirement  system adopted pursuant to or subject to the
  provisions of this section to provide a plan analogous  to  such  career
  pension  plan,  regardless of whether such member elects the benefits of
  such analogous plan, may be designated by the board of education as four
  per centum. Such resolution of the board of  education,  however,  shall
  not  take  effect  until  and unless it is approved by the mayor of such
  city.
    12. Notwithstanding any  provisions  of  this  section  or  any  other
  provision  of law, in a city having a population of one million or more,
  the board of education is authorized to adopt a resolution amending  the
  provisions  governing  any  retirement  system  adopted  pursuant  to or
  subject to the provisions of this section to the extent necessary to put
  into effect a  pensions-providing-for-increased-take-home-pay  plan  for
  the  fiscal  year  nineteen hundred sixty-nine--nineteen hundred seventy
  analogous to that  authorized  for  the  fiscal  year  nineteen  hundred
  sixty-two--nineteen   hundred   sixty-three  by  chapter  seven  hundred
  eighty-nine  of  the  laws  of  nineteen  hundred  sixty-two,  provided,
  however, that
    (1)  the  reduced-rate-of-contribution  factor to be used in computing
  the reduction in contributions of members who are employees of the board
  of education in the titles of attendance  teacher,  attendance  officer,
  attendance teacher (spanish speaking), auxiliary attendance teacher, may
  be designated by the board of education as eight percentum, and provided
  further, however, that
    (2)  the  reduced-rate-of-contribution  factor to be used in computing
  the reductions of any member who is a career pension plan member or  who
  is  eligible  to  elect to become a career pension plan member under the
  provisions governing  any  retirement  system  adopted  pursuant  to  or
  subject  to  the  provisions of this section, regardless of whether such
  member makes such election, may be designated by the board of  education
  as four percentum, and provided further, however, that
    (3)  the  reduced-rate-of-contribution  factor to be used in computing
  the reductions of any member other than a member mentioned in paragraphs
  one and two of this subdivision twelve may be designated by the board of
  education as five per centum, and provided further, however, that
    (4) such resolution of the board of education shall  not  take  effect
  until and unless it is approved by the mayor of such city.
    13.  Notwithstanding  any  provisions  of  this  section  or any other
  provision of law to the contrary, in a city having a population  of  one
  million  or  more,  the  board  of  education  is  authorized to adopt a
  resolution amending  the  provisions  governing  any  retirement  system
  adopted  pursuant to or subject to the provisions of this section to the
  extent necessary to put into effect a  pensions-providing-for-increased-

  take-home-pay    plan    for    the   fiscal   year   nineteen   hundred
  seventy--nineteen hundred seventy-one analogous to that  authorized  for
  the fiscal year nineteen hundred sixty-two--nineteen hundred sixty-three
  by  chapter  seven  hundred  eighty-nine of the laws of nineteen hundred
  sixty-two, provided, however, that
    (1) the reduced-rate-of-contribution factor to be  used  in  computing
  the  reductions of any member who is a career pension plan member or who
  is eligible to elect to become a career pension plan  member  under  the
  provisions  governing  any  retirement  system  adopted  pursuant  to or
  subject to the provisions of this section, regardless  of  whether  such
  member  makes such election, may be designated by the board of education
  as four percentum, and provided further, however, that
    (2) the reduced-rate-of-contribution factor to be  used  in  computing
  the  reductions of any member other than a member mentioned in paragraph
  one of this subdivision thirteen may  be  designated  by  the  board  of
  education as five per centum, and provided further, however, that
    (3)  such  resolution  of the board of education shall not take effect
  until and unless it is approved by the mayor of such city.
    14. (1) In the event that:
    (a) a bill entitled "An act to amend the administrative  code  of  the
  city  of  New  York  and  chapter eight hundred seventeen of the laws of
  nineteen  hundred  sixty-nine,  entitled,   'An   act   to   amend   the
  administrative  code  of  the city of New York, in relation to providing
  additional rights, privileges and benefits for members of the  New  York
  city employees' retirement system who are career pension plan members or
  fifty-five-year-increased-service-fraction   members,  and  for  certain
  beneficiaries of such system', in relation to establishing a new  career
  pension  plan  for  certain  members  of  the  New  York city employees'
  retirement system" is enacted into law; and
    (b) The  provisions  which  govern  a  retirement  system  established
  pursuant  to  this  section  with respect to the board of education of a
  city having a population of one million or more and which  were  adopted
  pursuant  or  subject to this section are amended pursuant or subject to
  this section so that such provisions include a retirement plan analogous
  to that set forth in such  bill;  no  plan  for  pensions-providing-for-
  increased-take-home-pay  shall  be  adopted for the fiscal year nineteen
  hundred seventy-one--nineteen hundred seventy-two with  respect  to  the
  members of such retirement system.
    (2)  In  the event that such bill referred to in paragraph one of this
  subdivision fourteen is not enacted into law, such  board  of  education
  referred   to   in  paragraph  one  of  this  subdivision  fourteen,  is
  authorized, notwithstanding any provision of this section or  any  other
  provision  of  law  to  the contrary, to adopt a resolution amending the
  provisions governing such retirement system adopted pursuant or  subject
  to  the  provisions  of this section to the extent necessary to put into
  effect a  pensions-providing-for-increased-take-home-pay  plan  for  the
  fiscal  year  nineteen hundred seventy-one--nineteen hundred seventy-two
  analogous to that  authorized  for  the  fiscal  year  nineteen  hundred
  sixty-two--nineteen   hundred   sixty-three  by  chapter  seven  hundred
  eighty-nine  of  the  laws  of  nineteen  hundred  sixty-two,  provided,
  however, that
    (a)  the  reduced-rate-of-contribution  factor to be used in computing
  the reduction in  contributions  of  members  under  such  plan  may  be
  designated by the board of education to be four per centum, and provided
  further, however, that
    (b)  such  resolution  of the board of education shall not take effect
  unless and until it is approved by the mayor of such city.
    15. (1) In the event that:

    (a) a bill entitled "An act to amend the administrative  code  of  the
  city  of  New  York  and  chapter eight hundred seventeen of the laws of
  nineteen  hundred  sixty-nine,  entitled,   'An   act   to   amend   the
  administrative  code  of  the city of New York, in relation to providing
  additional  rights,  privileges and benefits for members of the New York
  city employees' retirement system who are career pension plan members or
  fifty-five-year-increased-service-fraction  members,  and  for   certain
  beneficiaries  of such system', in relation to establishing a new career
  pension plan for  certain  members  of  the  New  York  city  employees'
  retirement system" is enacted into law; and
    (b)  the  provisions  which  govern  a  retirement  system established
  pursuant to this section with respect to the board  of  education  of  a
  city  having  a population of one million or more and which were adopted
  pursuant or subject to this section are amended pursuant or  subject  to
  this section so that such provisions include a retirement plan analogous
  to that set forth in such bill;
  no  plan  for  pensions-providing-for-increased-take-home-pay  shall  be
  adopted for  the  fiscal  year  nineteen  hundred  seventy-two--nineteen
  hundred  seventy-three  with  respect  to the members of such retirement
  system.
    (2) In the event that such bill referred to in paragraph one  of  this
  subdivision  fifteen  is  not  enacted into law, such board of education
  referred to in paragraph one of this subdivision fifteen, is authorized,
  notwithstanding any provision of this section or any other provision  of
  law  to  the  contrary,  to  adopt  a resolution amending the provisions
  governing such retirement system adopted  pursuant  or  subject  to  the
  provisions  of this section to the extent necessary to put into effect a
  pensions-providing-for-increased-take-home-pay plan for the fiscal  year
  nineteen  hundred  seventy-two--nineteen hundred seventy-three analogous
  to   that   authorized   for   the   fiscal   year   nineteen    hundred
  sixty-two--nineteen   hundred   sixty-three  by  chapter  seven  hundred
  eighty-nine  of  the  laws  of  nineteen  hundred  sixty-two,  provided,
  however, that
    (a)  the  reduced-rate-of-contribution  factor to be used in computing
  the reduction in  contributions  of  members  under  such  plan  may  be
  designated by the board of education to be four per centum, and provided
  further, however, that
    (b)  such  resolution  of the board of education shall not take effect
  unless and until it is approved by the mayor of such city.
    16. (a) As used in this subdivision, the following  terms  shall  mean
  and include:
    (1) "Board of education". The board of education of a city.
    (2) "City". A city having a population of one million or more.
    (3)  "Rules  and  regulations".  The  rules  and  regulations  for the
  government, management and control  of  the  retirement  system  adopted
  pursuant to this section.
    (4)  "Retirement  system".  The  board  of education retirement system
  established pursuant to the provisions of this section in a city.
    (5) (i) "Normal contribution for balance  sheet  liability  purposes".
  The  hypothetical  amount  which the normal contribution payable in each
  city fiscal year occurring during the period beginning  on  July  first,
  nineteen  hundred  seventy-four  and  ending on June thirtieth, nineteen
  hundred eighty would have equalled if such normal contribution had  been
  required  by  law  to be paid to the contingent reserve fund in the city
  fiscal year in which the obligation to  make  such  normal  contribution
  accrued  and  such  normal  contribution  had been required by law to be
  determined in the manner provided for in items (ii), (iii) and  (iv)  of
  this subparagraph.

    (ii)  Upon the basis of the mortality and other tables effective under
  the  rules  and  regulations  as  of  July   first,   nineteen   hundred
  seventy-seven  and  interest at the rate of five and one-half per centum
  per annum, the actuary  shall  determine,  as  of  June  thirtieth  next
  preceding  each  such  fiscal year for which such normal contribution is
  being determined (hereinafter referred to as the "subject fiscal  year")
  the  amount of the then total liability for all benefits provided in the
  rules and regulations, in articles eleven and fourteen of the retirement
  and social security law  and  in  any  other  law  prescribing  benefits
  payable  by  the  retirement  system  on account of all then members and
  beneficiaries, exluding the then liability on account of  future  annual
  contributions,  for  balance  sheet  liability  purposes,  on account of
  reserves-for-increased-take-home-pay (as defined in  subparagraph  eight
  of  this  paragraph),  if  any,  and  the  then  liability  for benefits
  attributable to the annuity savings fund and  to  the  variable  annuity
  savings fund.
    (iii) The hypothetical normal rate of contribution with respect to the
  subject fiscal year shall be the rate per centum obtained:
    (A) by adding together:
    (1)  the  present  value  of all then required future unfunded accrued
  liability contributions for balance sheet liability purposes (as defined
  in subparagraph six of this paragraph); and
    (2)  the  present  value  of   all   then   required   future   annual
  contributions,  for  balance  sheet  liability  purposes,  on account of
  amortization of losses on dispositions of certain securities within  the
  meaning of subdivision six of section seven of the rules and regulations
  (as defined in subparagraph seven of this paragraph); and
    (3)  the  present  value  of  future  member  contributions of members
  subject to article fourteen of the retirement and social  security  law;
  and
    (4)  the  amount  obtained  by adding together the total funds on hand
  (excluding therefrom the then amount in the annuity savings fund and  in
  the variable annuity savings fund) and the balance sheet liability as of
  such June thirtieth next preceding the subject fiscal year; and
    (B)  by  subtracting from the amount of the total liability determined
  pursuant to item (ii) of this subparagraph the sum  resulting  from  the
  addition prescribed by sub-item (A) of this item; and
    (C)   by   dividing  the  remainder  resulting  from  the  subtraction
  prescribed by sub-item (B) of this item by one per centum  of  the  then
  present  value  of  the  prospective  future salaries of all members, as
  computed on the basis  of  the  mortality  and  service  tables  adopted
  pursuant to subdivision two of section five of the rules and regulations
  and  in effect on July first, nineteen hundred seventy-seven, and on the
  basis of interest at the rate of five and one-half per centum per annum.
    (iv) The amount of the normal contribution for balance sheet liability
  purposes hypothetically payable in the subject fiscal year shall be  the
  amount obtained (1) by multiplying such hypothetical normal contribution
  rate  computed  with respect to the subject fiscal year by the aggregate
  annual salaries of the members as  of  June  thirtieth  of  the  subject
  fiscal  year  and  (2)  by adding to the product of such multiplication,
  interest on such product at the rate of five and one-half per centum per
  annum for a period of six months.
    (6)  "Unfunded  accrued  liability  contribution  for  balance   sheet
  liability  purposes".  (i)  With  respect to the city's nineteen hundred
  seventy-four--nineteen hundred seventy-five fiscal year, such term shall
  mean a hypothetical amount which, if paid to the contingent reserve fund
  in forty equal annual installments, beginning with payment  of  a  first
  installment   in  the  city's  nineteen  hundred  seventy-four--nineteen

  hundred seventy-five fiscal year, would be the actuarial equivalent,  on
  the  basis  of  interest at the rate of five and one-half per centum per
  annum, of the remainder computed in the manner prescribed by items  (ii)
  and (iii) of this subparagraph.
    (ii)  Upon  the  basis  of  the  actuarial tables in effect as of July
  first,  nineteen  hundred  seventy-seven  for  valuation  purposes   and
  interest  at  the  rate of five and one-half per centum per annum, there
  shall be computed, as of June thirtieth, nineteen hundred  seventy-four,
  the amount of the total liability for all benefits provided by the rules
  and regulations, in article eleven of the retirement and social security
  law  and in any other law prescribing benefits payable by the retirement
  system on account  of  all  members  and  beneficiaries,  excluding  the
  liability on account of future increased-take-home-pay contributions and
  the  liability for benefits attributable to the annuity savings fund and
  the variable annuity savings fund.
    (iii) From such total liability computed pursuant to item (ii) of this
  subparagraph there shall be subtracted the sum of:
    (A)  the  present  value,  as  of  June  thirtieth,  nineteen  hundred
  seventy-four,  of  all  future  normal  costs  of the retirement system,
  computed pursuant to the entry age normal  cost  method  of  determining
  such normal costs; and
    (B)  the  present  value, as of June thirtieth, of all required future
  payments, pursuant to subdivision six of section seven of the rules  and
  regulations  (as then in effect), of installments of losses in excess of
  installments of gains on dispositions of securities within  the  meaning
  of such subdivision; and
    (C) the sum obtained by adding together the balance sheet liability as
  of such June thirtieth, (as such liability is determined pursuant to the
  provisions  of  subparagraph seven of paragraph (c) of this subdivision)
  and the total funds on hand as of such  June  thirtieth,  excluding  the
  amount  in  the  annuity  savings  fund and the variable annuity savings
  fund, but  including  the  amount  of  any  unpaid  moneys  appropriated
  pursuant to section nine of the rules and regulations.
    (iv)  With respect to each of the city's fiscal years occurring during
  the period from  July  first,  nineteen  hundred  seventy-five  to  June
  thirtieth,  nineteen hundred eighty, such term shall mean a hypothetical
  amount which, if paid to the contingent  reserve  fund  in  forty  equal
  annual  installments,  beginning  with payment of a first installment in
  the city's nineteen hundred seventy-five--nineteen  hundred  seventy-six
  fiscal year, would be the actuarial equivalent, on the basis of interest
  at  the rate of five and one-half per centum per annum, of the remainder
  computed pursuant to items (v) and (vi) of this subparagraph.
    (v) Upon the basis of the actuarial tables in effect as of July first,
  nineteen hundred seventy-seven for valuation purposes  and  interest  at
  the  rate  of  five  and  one-half  per centum per annum, there shall be
  computed, as of  June  thirtieth,  nineteen  hundred  seventy-five,  the
  amount of the total liability for all benefits provided by the rules and
  regulations, in article eleven of the retirement and social security law
  and  in  any  other  law  prescribing benefits payable by the retirement
  system on account  of  all  members  and  beneficiaries,  excluding  the
  liability on account of future increased-take-home-pay contributions and
  the  liability for benefits attributable to the annuity savings fund and
  the variable annuity savings fund.
    (vi) From such total liability computed pursuant to item (v)  of  this
  subparagraph, there shall be subtracted the sum of:
    (A)  the  present  value,  as  of  June  thirtieth,  nineteen  hundred
  seventy-five, of all future  normal  costs  of  the  retirement  system,

  computed  pursuant  to  the  entry age normal cost method of determining
  such normal costs; and
    (B) the present value, as of such June thirtieth, of all then required
  future  payments,  pursuant  to  subdivision six of section seven of the
  rules and regulations (as then in effect), of installments of losses  in
  excess of installments of gains on dispositions of securities within the
  meaning of such subdivision; and
    (C) the sum obtained by adding together the balance sheet liability as
  of such June thirtieth, (as such liability is determined pursuant to the
  provisions  of  subparagraphs  eight  to  fourteen,  inclusive  of  this
  sub-item and the total  funds  on  hand,  as  of  such  June  thirtieth,
  excluding  the  amount  in  the  annuity  savings  fund and the variable
  annuity savings fund, but including the  amount  of  any  unpaid  moneys
  appropriated pursuant to section nine of the rules and regulations.
    (7)  "Annual  contribution,  for  balance sheet liability purposes, on
  account of amortization of losses on dispositions of certain  securities
  within  the meaning of subdivision six of section seven of the rules and
  regulations". A hypothetical annual payment to  the  contingent  reserve
  fund  in  each  of  the  city's  fiscal year occurring during the period
  beginning on July first, nineteen hundred  seventy-four  and  ending  on
  June  thirtieth, nineteen hundred eighty, of the amount of the excess of
  installments (payable in such year) of losses on prior  dispositions  of
  securities within the meaning of subdivision six of section seven of the
  rules  and  regulations  (related  to  graduated  crediting of gains and
  amortization of losses  on  dispositions  of  certain  securities)  over
  installments   (creditable   in  such  year)  of  gains  on  such  prior
  dispositions, which annual amount shall  be  determined  in  the  manner
  provided for in such subdivision six.
    (8)  "Annual  contribution,  for  balance sheet liability purposes, on
  account of reserves-for-increased-take-home-pay". A hypothetical  annual
  payment  to  the  contingent  reserve  fund in each of the city's fiscal
  years occurring during the period  from  July  first,  nineteen  hundred
  seventy-four  to  June thirtieth, nineteen hundred eighty, of the amount
  required to fulfill the public employer  obligation,  which  accrued  in
  such year to make contributions on account of increased-take-home-pay.
    (9)  "Annual  military  law  contribution  for balance sheet liability
  purposes". A hypothetical annual payment to the contingent reserve  fund
  in each of the city's fiscal years occurring during the period beginning
  on  July  first,  nineteen  hundred  seventy-four  and  ending  on  June
  thirtieth, nineteen hundred eighty, of the amount  required  to  fulfill
  the  public  employer  obligation,  which accrued in such year under the
  provisions of subdivision twenty of section two hundred  forty-three  of
  the  military  law,  to  pay  in  behalf  of members qualifying for such
  benefit member contributions with respect to certain periods of military
  service of such members.
    (10) "Deficiency contribution". The annual  amount  which,  under  the
  provisions  of  paragraph f of subdivision three of section eight of the
  rules and regulations, the board of education was required to pay to the
  contingent  reserve  fund  in  each  of  the  city's  nineteen   hundred
  seventy-four--nineteen    hundred    seventy-five,    nineteen   hundred
  seventy-five--nineteen  hundred   seventy-six   and   nineteen   hundred
  seventy-six--nineteen hundred seventy-seven fiscal years.
    (11) "Contribution on account of amortization, pursuant to subdivision
  six  of  section  seven  of  the  rules  and  regulations,  of losses on
  dispositions of certain securities". The total annual  amount  by  which
  the  sum  of the installments of losses, payable pursuant to subdivision
  six of section seven of the rules and regulations (as in effect prior to
  July first, nineteen hundred eighty) in each of the city's fiscal  years

  occurring   during   the   period  from  July  first,  nineteen  hundred
  seventy-four to June thirtieth, nineteen hundred eighty in  relation  to
  dispositions  of  securities within the meaning of such subdivision six,
  exceeded  the  sum  of  the installments of gains creditable in the same
  fiscal year in relation to the same disposition of securities.
    (b) (1)  Notwithstanding  any  provision  of  subdivision  fifteen  of
  section  two  of the rules and regulations or any other provision of the
  rules and regulations or any other provision of law to the contrary, for
  the purpose of any actuarial valuation, determination or appraisal which
  is made pursuant to the rules and regulations or the provisions of  this
  subdivision  sixteen  and  which  is used to determine the amount of any
  contribution required to be paid by the  board  of  education  into  the
  contingent  reserve fund or pension fund of the retirement system in the
  nineteen hundred seventy-seven--nineteen  hundred  seventy-eight  fiscal
  year  of the city or in any subsequent fiscal year of the city, "regular
  interest" shall mean interest as  defined  in  this  paragraph  and  any
  definition  of  regular interest in such rules and regulations shall not
  apply to any such actuarial valuation, determination or appraisal.
    (2) Subject to the provisions of item (ii) of subparagraph six of this
  paragraph, for the purpose of any actuarial valuation, determination  or
  appraisal  which  is  made  pursuant to the rules and regulations or the
  provisions of this subdivision and which is used to determine the amount
  of any contribution required to be paid by the board of  education  into
  the  contingent reserve fund or pension fund 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.
    (3)  (i) Subject to the provisions of item (ii) of subparagraph six of
  this paragraph and except as otherwise provided in  subparagraphs  seven
  to sixteen, inclusive, of paragraph (c) of this subdivision 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 the rules and regulations or  the
  provisions of this subdivision and which is used to determine the amount
  of  any  contribution required to be paid by the board of education into
  the contingent reserve fund 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.
    (ii) Subject to the provisions of item (ii)  of  subparagraph  six  of
  this  paragraph  and except as otherwise provided in subparagraphs seven
  to sixteen, inclusive, of paragraph (c) of this subdivision 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 the rules and regulations or the
  provisions of this subdivision and which is used to determine the amount
  of any contribution required to be paid by the board of  education  into
  the  contingent  reserve  fund  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.
    (iii)  Subject  to  the provisions of item (ii) of subparagraph six of
  this paragraph and except as otherwise provided in  subparagraphs  seven
  to sixteen, inclusive, of paragraph (c) of this subdivision 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 the rules and regulations or  the
  provisions of this subdivision and which is used to determine the amount
  of  any  contribution required to be paid by the board of education into
  the contingent reserve fund 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.
    (4) Subject to the provisions of item (ii) of subparagraph six of this
  paragraph, and except as otherwise provided in  subparagraphs  seven  to
  sixteen, inclusive, of paragraph (c) of this subdivision 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 the rules and regulations or the
  provisions of this subdivision and which is used to determine the amount
  of any contribution required to be paid by the board of  education  into
  the  contingent reserve fund or pension fund of the retirement system in
  the city's nineteen hundred ninety--nineteen hundred  ninety-one  fiscal
  year 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 the  administrative
  code of the city.
    (5)  On  or after May first, nineteen hundred eighty-nine and no later
  than October thirty-first of such  year  the  retirement  board  of  the
  retirement  system 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 mayor of the city, and the members of the 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
  subparagraph four of this paragraph.
    (6)  (i)  Subject to the provisions of item (iv) of subparagraph three
  of paragraph (c) of this subdivision, nothing contained in subparagraphs
  one, two, three, four and five of this paragraph 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 subparagraphs, a rate of regular  interest  other
  than  as  prescribed by the applicable provisions of subdivision fifteen
  of section two of the rules and regulations and subdivision seventeen of
  this section.
    (ii)  Subject  to  the  provisions  of   section   13-638.2   of   the
  administrative code of the city, nothing contained in subparagraphs two,
  three  and  four  of  this paragraph shall be construed as requiring the
  original unfunded accrued liability contribution, as defined in item (i)
  of subparagraph five of paragraph  (c)  of  this  subdivision,  and  the
  revised unfunded accrued liability contribution, as defined in item (ii)
  of  such  subparagraph, and the nineteen hundred eighty unfunded accrued

  liability adjustment, as defined in subparagraph six of  such  paragraph
  (c),  and  the  nineteen  hundred  eighty-two unfunded accrued liability
  adjustment, as defined in such subparagraph six, to be determined in any
  manner  other  than  as  prescribed by the applicable provisions of such
  items and such subparagraph six.  Subject  to  the  provisions  of  such
  section 13-638.2, nothing contained in subparagraphs two, three and four
  of  this  paragraph  shall  be  construed as requiring any balance sheet
  liability or balance sheet liability contribution computed  pursuant  to
  the   provisions  of  subparagraphs  seven  to  sixteen,  inclusive,  of
  paragraph (c) of this subdivision to be determined in any  manner  other
  than as prescribed in such subparagraphs.
    (c)  (1)  (i)  Notwithstanding the provisions of paragraphs b and f of
  subdivision three of section eight of the rules and regulations  or  any
  other  provision  of the rules and regulations or any other provision of
  law to the contrary;
    (A) the provisions of subparagraphs two, three, four and five of  this
  paragraph  (c), as in effect during the period from July first, nineteen
  hundred seventy-seven to June thirtieth, nineteen hundred eighty,  shall
  govern  the  contributions  payable  by  the  board  of education to the
  contingent reserve fund of the retirement system in the city's  nineteen
  hundred seventy-seven--nineteen hundred seventy-eight fiscal year and in
  each  city  fiscal year thereafter to and including the nineteen hundred
  seventy-nine--nineteen hundred eighty fiscal year, and no  contributions
  shall  be  payable  by  the  board of education to such fund in any such
  fiscal year other than the contributions prescribed  by  the  applicable
  provisions of such subparagraphs two, three, four and five; and
    (B)  the  applicable provisions of this paragraph, as in effect on and
  after July  first,  nineteen  hundred  eighty,  and  the  provisions  of
  sections  13-638.2,  13-695 and 13-704 of the administrative code of the
  city and any  other  applicable  laws  shall  govern  the  contributions
  payable  by the board of education to the contingent reserve fund in the
  city's nineteen hundred eighty--nineteen hundred eighty-one fiscal  year
  and  in  each city fiscal year thereafter, and no contributions shall be
  payable by the board of education to such fund in any such  fiscal  year
  other  than the contributions prescribed by the applicable provisions of
  this paragraph and such sections and laws.
    (ii) The contribution payable  by  the  board  of  education  to  such
  contingent  reserve  fund  in the nineteen hundred seventy-six--nineteen
  hundred seventy-seven  fiscal  year  of  the  city,  including,  without
  limitation,  the  contribution  required  by  paragraph f of subdivision
  three of section eight of the rules and regulations, shall  be  governed
  by  the  applicable provisions of the rules and regulations as in effect
  immediately prior to July first, nineteen hundred seventy-seven.
    (2) Subject to the provisions of law referred to in  sub-item  (B)  of
  item  (i)  of subparagraph one of this paragraph, the board of education
  shall contribute to the contingent reserve fund:
    (i) annually an amount computed pursuant to subparagraph four of  this
  paragraph, to be known as the "normal contribution"; and
    (ii)  in  each  city  fiscal year during the period beginning with the
  fiscal   year   nineteen   hundred    seventy-seven--nineteen    hundred
  seventy-eight and ending on the last day of fiscal year nineteen hundred
  seventy-nine--nineteen  hundred  eighty,  one  annual  installment of an
  additional amount computed pursuant to item (i) of subparagraph five  of
  this  paragraph,  which shall be known as the "original unfunded accrued
  liability contribution"; and
    (iii) in each city fiscal year during the period beginning with fiscal
  year nineteen hundred eighty--nineteen hundred eighty-one and ending  on
  the last day of fiscal year two thousand fourteen--two thousand fifteen,

  the annual installment, applicable to such fiscal year, of an additional
  amount  which  shall  be known as the revised unfunded accrued liability
  contribution and which shall be determined as provided for in item  (ii)
  of subparagraph five of this paragraph; and
    (iv)  in each city fiscal year during the period beginning with fiscal
  year nineteen hundred eighty-one--nineteen hundred eighty-two and ending
  on the last  day  of  fiscal  year  two  thousand  twenty--two  thousand
  twenty-one,  the  annual installment, applicable to such fiscal year, of
  an additional amount which shall be known as the balance sheet liability
  contribution  and  which  shall  be  determined  as  provided   for   in
  subparagraphs seven to sixteen, inclusive, of this paragraph; and
    (v)   in   fiscal   year  nineteen  hundred  eighty--nineteen  hundred
  eighty-one, the amount of one year's interest, at the rate of seven  and
  one-half  per  centum  per  annum,  on  the  amount of the balance sheet
  liability as of June thirtieth, nineteen hundred eighty,  as  determined
  pursuant to the provisions of subparagraphs seven to fifteen, inclusive,
  of this paragraph; and
    (vi)  in  each  city  fiscal year, beginning with fiscal year nineteen
  hundred eighty--nineteen hundred eighty-one and ending on the  last  day
  of   fiscal   year   nineteen   hundred   ninety-four--nineteen  hundred
  ninety-five,  the  amount  required  to  fulfill  the  public   employer
  obligation,  which accrued in such fiscal year, to make contributions on
  account of increased-take-home-pay; and
    (vii) in each city fiscal year, beginning with  fiscal  year  nineteen
  hundred  eighty--nineteen  hundred eighty-one and ending on the last day
  of  fiscal   year   nineteen   hundred   ninety-four--nineteen   hundred
  ninety-five,   the  amount  required  to  fulfill  the  public  employer
  obligation, which accrued in such fiscal year under  the  provisions  of
  subdivision  twenty  of  section two hundred forty-three of the military
  law, to pay in behalf of members qualifying  for  such  benefit,  member
  contributions with respect to certain periods of the military service of
  such members.
    (3)  (i)  If  the  nineteen  hundred eighty unfunded accrued liability
  adjustment determined pursuant to subparagraph six of this paragraph  is
  a  credit,  the  total  of the amounts required to be contributed to the
  contingent reserve fund in each city fiscal year,  commencing  with  the
  nineteen  hundred  eighty--nineteen  hundred  eighty-one fiscal year and
  ending with  the  two  thousand  nine--two  thousand  ten  fiscal  year,
  pursuant  to items (i), (iii), (iv), (v), (vi) and (vii) of subparagraph
  two of this paragraph shall be reduced  by  the  amount  of  one  annual
  installment  of  such nineteen hundred eighty unfunded accrued liability
  adjustment.
    (ii) (A) If the nineteen hundred  eighty  unfunded  accrued  liability
  adjustment determined pursuant to such subparagraph six is a charge, the
  board of education shall contribute in each city fiscal year, commencing
  with  the  nineteen  hundred  eighty--nineteen hundred eighty-one fiscal
  year and ending with the two  thousand  nine--two  thousand  ten  fiscal
  year,  in  addition  to the amounts required to be contributed under the
  provisions of  subparagraph  two  of  this  paragraph  (c),  one  annual
  installment  of  such nineteen hundred eighty unfunded accrued liability
  adjustment.
    (B) The total of  the  amounts  required  to  be  contributed  to  the
  contingent  reserve  fund  in  each city fiscal year commencing with the
  nineteen hundred eighty-two--nineteen hundred eighty-three  fiscal  year
  and ending with the two thousand eleven--two thousand twelve fiscal year
  pursuant  to  items (i), (iii), (iv), (vi) and (vii) of subparagraph (2)
  of this paragraph (c) and the applicable provisions of item (i) of  this
  subparagraph  (3)  and  sub-item  (A)  of  this  item (ii) and otherwise

  pursuant to law shall be reduced by the amount of one annual installment
  of the nineteen hundred eighty-two unfunded accrued liability adjustment
  determined pursuant to item (vi) of subparagraph (6) of  this  paragraph
  (c).
    (C)  The  total  of  the  amounts  required  to  be contributed to the
  contingent reserve fund in each city fiscal  year  commencing  with  the
  nineteen  hundred  eighty-five--nineteen  hundred eighty-six fiscal year
  and ending with the two thousand fourteen--two thousand  fifteen  fiscal
  year  pursuant to items (i), (iii), (iv), (vi) and (vii) of subparagraph
  (2) of this paragraph (c) and the applicable provisions of item  (i)  of
  this  subparagraph  (3) and sub-item (A) of this item (ii) and otherwise
  pursuant to law shall be reduced by the amount of one annual installment
  of  the  nineteen  hundred  eighty-five   unfunded   accrued   liability
  adjustment determined pursuant to item (vii) of subparagraph (6) of this
  paragraph (c).
    (iii) Any amount required by the provisions of items (iii), (iv), (vi)
  and  (vii)  of subparagraph two of this paragraph and subdivision six of
  section seven of the rules and regulations  to  be  contributed  to  the
  contingent  reserve fund in the city's nineteen hundred eighty--nineteen
  hundred eighty-one fiscal year or any subsequent fiscal  year  shall  be
  payable  with  interest  on  such  amount at a rate per centum per annum
  equal to the rate per centum per annum  required  to  be  used  for  the
  purpose  of  any actuarial valuation, determination or appraisal made to
  determine  the  amount  of  the  normal  contribution  payable  to   the
  contingent reserve fund in such fiscal year.
    (iv)  Any  amount required to be contributed to the contingent reserve
  fund in any fiscal year of  the  city  preceding  the  nineteen  hundred
  eighty--nineteen  hundred eighty-one fiscal year shall be deemed to have
  been required to be paid with interest on such  amount  at  a  rate  per
  centum  per  annum equal to the rate per centum per annum required to be
  used for the  purpose  of  any  actuarial  valuation,  determination  or
  appraisal  made  to  determine  the  amount  of  the normal contribution
  payable to the contingent reserve fund in such fiscal year.
    (v) It is hereby declared that the provisions of items (iii) and  (iv)
  of  this subparagraph three, insofar as they relate to provisions of the
  rules and regulations or of this subdivision  or  other  laws  requiring
  payment  of employer contributions to the retirement system prior to the
  effective  date  of  this  subparagraph,  express  the  intent  of  such
  provisions  of  the  rules  and regulations or this subdivision or other
  laws requiring such payment.
    (vi) For the purpose of effectuating the nineteen hundred eighty-eight
  unfunded accrued liability adjustment provided for in  section  13-638.1
  of the administrative code of the city of New York, contributions to the
  contingent  reserve  fund  on  account  of  charges shall be made by the
  responsible obligor (as defined in paragraph six  of  subdivision  a  of
  such  section)  or  credits  shall  be  allowed  to such obligor against
  contributions otherwise payable by such obligor, as the case may be,  to
  the  extent  and  in the manner provided for in such section. The annual
  determination of the normal  contribution  for  fiscal  years  occurring
  during the period beginning on July first, nineteen hundred eighty-eight
  and  ending  on  June  thirtieth,  nineteen  hundred  ninety-eight shall
  appropriately take account of the nineteen hundred eighty-eight unfunded
  accrued liability adjustment and the provisions of subparagraph four  of
  this  paragraph  (c) shall be deemed to be conformably modified for such
  purpose.
    (4) Normal contribution. (i) Upon the basis of  the  latest  mortality
  and  other  tables  authorized by the applicable provisions of the rules
  and regulations and regular interest, the actuary shall determine, as of

  June thirtieth, nineteen hundred eighty and as of each  succeeding  June
  thirtieth,  the  amount of the total liability for all benefits provided
  in the rules and regulations, in articles eleven  and  fourteen  of  the
  retirement  and  social  security  law  and in any other law prescribing
  benefits payable by the retirement system on account of all members  and
  beneficiaries,   excluding   the   liability   on   account   of  future
  increased-take-home-pay contributions, if any,  and  the  liability  for
  benefits  attributable  to  the annuity savings fund and to the variable
  annuity savings fund, provided, however, that in determining such  total
  liability  as  of June thirtieth, nineteen hundred ninety-five and as of
  each succeeding June  thirtieth,  the  actuary  shall  include  (A)  the
  liability on account of future increased-take-home-pay contributions, if
  any,  (B) the liability on account of future public employer obligations
  under the provisions  of  subdivision  twenty  of  section  two  hundred
  forty-three  of the military law, to pay in behalf of members qualifying
  for such benefit, member contributions with respect to  certain  periods
  of  the  military  service  of  such  members  and (C) the liability for
  benefits attributable to the annuity savings fund and  to  the  variable
  annuity  savings  fund,  and  provided  further that in determining such
  total liability as of June thirtieth, nineteen hundred  ninety-nine  and
  as  of  each  succeeding  June  thirtieth, the actuary shall include any
  other liability, as determined by the actuary, for benefits attributable
  to  the  variable  annuity  programs,  and  provided  further  that   in
  determining  such total liability as of June thirtieth, two thousand and
  as of each succeeding June thirtieth,  the  actuary  shall  include  the
  amount,  if  any, as estimated by the actuary, of the total liability of
  the retirement system on account of payments which the retirement system
  may be required to make to any other fund without a corresponding offset
  in the liabilities of the retirement system.
    (i-A) Notwithstanding any other provision of law to the contrary,  for
  the  purpose  of  calculating  the  amount  of  the  normal contribution
  annually due from the board of education to the contingent reserve  fund
  pursuant  to  item (iv) of this subparagraph in fiscal year two thousand
  five--two thousand six, and in each fiscal  year  thereafter,  both  the
  total  liability  of the retirement system, as calculated by the actuary
  in accordance with item (i) of this subparagraph, and the normal rate of
  contribution, as calculated by the actuary in accordance with items (ii)
  and (iii) of this subparagraph, shall be determined as of June thirtieth
  of the second fiscal year preceding the fiscal year in which the  normal
  contribution  is  payable, provided, however, that (A) the actuary shall
  use for such calculations  the  mortality  and  other  tables  that  are
  applicable  at  the  time  he or she performs such calculations; (B) the
  total funds on hand, as determined by the  actuary  pursuant  to  clause
  five  of  sub-item  (A)  of  item  (ii)  of  this subparagraph, shall be
  adjusted by adding to such amount the  present  value  of  all  employer
  contributions  required  to  be paid into the contingent reserve fund in
  the fiscal year next preceding the  fiscal  year  in  which  the  normal
  contribution  is  payable,  as  determined  by  the actuary; and (C) the
  present value of the prospective future  salaries  of  all  members,  as
  computed by the actuary for the purposes of sub-item (C) of item (ii) of
  this subparagraph, shall be reduced by the present value of the salaries
  expected to be paid to all members in the fiscal year next preceding the
  fiscal  year  in which the normal contribution is payable, as determined
  by the actuary.
    (ii) The normal rate of contribution shall  be  the  rate  per  centum
  obtained: (A) by adding together:
    (1)  (a)  the  amount obtained by adding together the present value of
  all required future revised unfunded accrued liability contributions and

  the present value of  all  required  future  payments  of  the  nineteen
  hundred   eighty   unfunded  accrued  liability  adjustment,  determined
  pursuant to subparagraph six of this paragraph, if such adjustment is  a
  charge; or
    (b)  the  remainder  obtained by subtracting from the present value of
  all required future revised unfunded  accrued  liability  contributions,
  the  present  value  of  all future installments of the nineteen hundred
  eighty unfunded accrued liability adjustment required to be credited, if
  such nineteen hundred eighty adjustment is a credit;
    (c) minus (whether (a) or (b) immediately preceding is applicable) the
  sum of the present value of all  future  installments  of  the  nineteen
  hundred eighty-two unfunded accrued liability adjustment and the present
  value  of  all  future  installments of the nineteen hundred eighty-five
  unfunded accrued liability adjustment; and
    (2) the present value of all required future balance  sheet  liability
  contributions,  plus,  in  the  case  of the determination of the normal
  contribution payable in fiscal year  nineteen  hundred  eighty--nineteen
  hundred  eighty-one,  the  present value, as of June thirtieth, nineteen
  hundred eighty,  of  the  payment  of  interest  on  the  balance  sheet
  liability  as required by item (v) of subparagraph two of this paragraph
  (c); and
    (3) the present value of all required  future  payments,  pursuant  to
  subdivision  six  of  section  seven  of  the  rules and regulations, of
  installments  of  losses  in  excess  of  installments   of   gains   on
  dispositions of securities within the meaning of such subdivision; and
    (4)  in  the  case  of  the  determination  of the normal contribution
  payable in each fiscal year commencing with fiscal year nineteen hundred
  ninety-five--nineteen hundred ninety-six, the present  value  of  future
  member contributions of all members; and
    (5)  the total funds on hand, including the amount of any unpaid money
  appropriated pursuant to section nine of the rules and regulations  and,
  in  the  case of the determination of the normal contribution payable in
  each  fiscal  year  commencing  with  fiscal   year   nineteen   hundred
  ninety-five--nineteen  hundred  ninety-six,  including the amount in the
  annuity savings fund and in the variable annuity savings fund; and
    (6) the present value of all  other  future  installments  of  accrued
  liability  contributions  to  the  retirement  system  required  by  the
  applicable provisions of section 13-638.2 of the administrative code  of
  the  city  of New York which are not covered by the preceding paragraphs
  of this subitem (A); and
    (B) by subtracting from the amount of the total  liability  determined
  pursuant  to  item  (i)  of this subparagraph the sum resulting from the
  addition prescribed by sub-item (A) of this item; and
    (C)  by  dividing  the  remainder  resulting   from   the   applicable
  subtraction prescribed by sub-item (B) of this item by one per centum of
  the  present value of the prospective future salaries of all members, as
  computed by the actuary on the basis of the latest mortality and service
  tables adopted pursuant to subdivision two of section five of the  rules
  and regulations, and on the basis of regular interest.
    (iii)  The normal rate of contribution determined by the actuary shall
  not be less than zero,  shall  be  certified  by  the  actuary  after  a
  valuation  and  shall  continue  in  force  until  the  next  succeeding
  valuation and certification. The actuary shall make a valuation,  as  of
  June  thirtieth  of  each  year,  of  the  assets and liabilities of the
  various funds created by the rules and regulations.
    (iv)(A) The amount of the normal contribution annually  due  from  the
  board  of  education  to the contingent reserve fund in each city fiscal
  year, commencing with  the  nineteen  hundred  eighty--nineteen  hundred

  eighty-one  fiscal  year  and  ending  with  the  two thousand four--two
  thousand five fiscal year, shall be the amount obtained  by  multiplying
  the normal rate of contribution, as determined by the actuary as of June
  thirtieth  next  preceding  such  fiscal  year,  by the aggregate annual
  salaries of the members on  such  June  thirtieth  next  preceding  such
  fiscal  year  in  which  such amount is due and shall be payable in such
  fiscal year next following  such  June  thirtieth,  together  with  such
  regular  interest thereon which may be due, if any, as calculated by the
  actuary.
    (B) The amount of the normal contribution annually due from the  board
  of  education  to  the contingent reserve fund in each city fiscal year,
  commencing with the two thousand five--two  thousand  six  fiscal  year,
  shall  be  the  amount  obtained  by  multiplying  the  normal  rate  of
  contribution, as determined  by  the  actuary  as  of  the  second  June
  thirtieth  preceding the fiscal year in which the normal contribution is
  payable, in accordance with the provisions  of  items  (i-A),  (ii)  and
  (iii)  of  this  subparagraph,  by  the aggregate amount of the salaries
  expected to be paid to the members during the fiscal year in  which  the
  normal  contribution  is payable, as determined by the actuary, and such
  normal contribution shall be payable in the second fiscal year following
  the June thirtieth as of  which  the  normal  rate  of  contribution  is
  determined,  together  with  such  regular interest thereon which may be
  due, if any, as calculated by the actuary.
    (C) In the case of the normal contribution  payable  in  the  nineteen
  hundred  eighty--nineteen  hundred  eighty-one  fiscal  year  and in any
  subsequent fiscal year, the term "regular interest,"  as  used  in  this
  item  (iv)  shall  mean  regular  interest  as defined by the applicable
  provisions of subparagraph three or subparagraph four of  paragraph  (b)
  of this subdivision.
    (5)   Unfunded  accrued  liability  contributions.--(i)  The  original
  unfunded accrued liability contribution shall be  an  amount  which,  if
  paid  to the contingent reserve fund in forty equal annual installments,
  commencing with payment of a first installment in  the  city's  nineteen
  hundred seventy-seven--nineteen hundred seventy-eight fiscal year, would
  be the actuarial equivalent, on the basis of five and one-half percentum
  interest  and  the actuarial tables in effect as of July first, nineteen
  hundred  seventy-seven,  of  the  difference  between  (A)  the  accrued
  liability  (excluding  the  liability  for  benefits attributable to the
  annuity savings fund and the variable  annuity  savings  fund)  on  June
  thirtieth,  nineteen  hundred  seventy-five  and  (B) the total funds on
  hand, excluding the amount in the annuity savings fund and the  variable
  annuity  savings  fund,  but  including  the amount of any unpaid moneys
  appropriated pursuant to section nine of the rules and  regulations.  No
  contribution or payment to the contingent reserve fund of the retirement
  system  shall be made under the provisions of paragraph f of subdivision
  three of section eight of the rules  and  regulations  in  the  nineteen
  hundred seventy-seven--nineteen hundred seventy-eight fiscal year of the
  city  or  in  any  subsequent  city  fiscal year. The provisions of such
  paragraph f shall cease to be effective on July first, nineteen  hundred
  seventy-seven.
    (ii)  (A) The revised unfunded accrued liability contribution shall be
  an amount determined as prescribed in sub-items (B), (C), (D), (E), (F),
  (G), (H), (I) and (J) of this item.
    (B) To the amount of the difference constituting the unfunded  accrued
  liability as of June thirtieth, nineteen hundred seventy-five heretofore
  determined pursuant to the provisions of this subparagraph, as in effect
  on  July  first,  nineteen  hundred  seventy-seven, there shall be added
  interest thereon at the rate of five and one-half per centum  per  annum

  for  the  period  from July first, nineteen hundred seventy-five to June
  thirtieth, nineteen hundred eighty.
    (C) There shall be computed, in the manner provided in sub-item (D) of
  this  item,  the  discounted  value  of  each of the installments of the
  unfunded accrued liability contribution which, in  the  absence  of  the
  enactment  of  chapter  nine hundred fifty-seven of the laws of nineteen
  hundred eighty-one, were payable or  would  have  been  payable  in  the
  city's  nineteen  hundred seventy-seven--nineteen hundred seventy-eight,
  nineteen hundred seventy-eight--nineteen hundred seventy-nine,  nineteen
  hundred   seventy-nine--nineteen   hundred   eighty,   nineteen  hundred
  eighty--nineteen    hundred    eighty-one    and    nineteen     hundred
  eighty-one--nineteen hundred eighty-two fiscal years.
    (D)  Such  discounted  value  of  each such installment referred to in
  sub-item (C) of this item shall be computed as of January first  of  the
  city's  second  fiscal  year  preceding  the  fiscal  year in which such
  installment was payable or would have been payable and on the  basis  of
  five  and  one-half  per centum interest per annum on the amount of such
  installment.
    (E) There shall be computed with respect to such discounted  value  of
  each  such  installment,  interest  thereon  from  January first of such
  second fiscal year preceding the fiscal year in which  such  installment
  was  or  would  have  been  payable  to June thirtieth, nineteen hundred
  eighty at the rate of five and one-half per centum per annum.
    (F) The discounted values of all of such installments with respect  to
  such  fiscal years, computed as provided for in sub-items (C) and (D) of
  this item, together with interest on each such installment  as  provided
  for in sub-item (E) of this item, shall be added together.
    (G)  From  the sum computed pursuant to sub-item (B) of this item, the
  sum computed pursuant to sub-item (F) of this item shall be subtracted.
    (H) With respect to each city fiscal year occurring during the  period
  beginning  on  July  first,  nineteen  hundred eighty and ending on June
  thirtieth, nineteen hundred eighty-two,  the  revised  unfunded  accrued
  liability  contribution  shall  be the annual installment, applicable to
  such fiscal year, of an amount which, if paid to the contingent  reserve
  fund  in  thirty-five equal annual installments, commencing with payment
  of a first installment in the city's nineteen  hundred  eighty--nineteen
  hundred  eighty-one  fiscal  year, would be the actuarial equivalent, on
  the basis of seven and one-half per centum interest per  annum,  of  the
  remainder computed pursuant to sub-item (G) of this item.
    (I)  With respect to each city fiscal year occurring during the period
  beginning on July first, nineteen hundred eighty-two and ending on  June
  thirtieth,  nineteen  hundred eighty-eight, the revised unfunded accrued
  liability contribution shall be the annual  installment,  applicable  to
  such  fiscal year, of an amount which, if paid to the contingent reserve
  fund in thirty-three equal annual installments, commencing with  payment
  of    a    first    installment   in   the   city's   nineteen   hundred
  eighty-two--nineteen hundred eighty-three  fiscal  year,  would  be  the
  actuarial  equivalent,  on  the  basis  of eight per centum interest per
  annum, of the present value, as  of  June  thirtieth,  nineteen  hundred
  eighty-two  on  the  basis of seven and one-half per centum interest per
  annum,  of  those  installments  of  the  unfunded   accrued   liability
  contribution  computed pursuant to sub-item (H) of this item (ii), which
  installments are  hypothetically  allocated  by  such  sub-item  (H)  to
  designated city fiscal years succeeding June thirtieth, nineteen hundred
  eighty-two.
    (J)  With respect to each city fiscal year occurring during the period
  beginning on July first, nineteen hundred  eighty-eight  and  ending  on
  June  thirtieth,  two  thousand  fifteen,  the  revised unfunded accrued

  liability contribution shall be the annual  installment,  applicable  to
  such  fiscal  year,  of  an  amount  which,  when paid to the contingent
  reserve fund in twenty-seven equal annual installments, commencing  with
  payment   of   a  first  installment  in  the  city's  nineteen  hundred
  eighty-eight -- nineteen hundred eighty-nine fiscal year, shall  be  the
  actuarial  equivalent,  on the basis of eight and one-quarter per centum
  interest per annum, of the present value, as of June thirtieth, nineteen
  hundred eighty-eight on the basis  of  eight  per  centum  interest  per
  annum,   of   those  installments  of  the  unfunded  accrued  liability
  contribution computed pursuant to sub-item (I) of this item (ii),  which
  installments  are  hypothetically  allocated  by  such  sub-item  (I) to
  designated city fiscal years succeeding June thirtieth, nineteen hundred
  eighty-eight.
    (6)  (i)  The  nineteen  hundred  eighty  unfunded  accrued  liability
  adjustment  shall  be  an amount determined as prescribed in items (ii),
  (iii), (iv) and (v) of this subparagraph.
    (ii) (A) Upon the basis of the actuarial tables in effect as  of  June
  thirtieth,  nineteen  hundred eighty for valuation purposes and interest
  at the rate of seven and one-half per centum per annum, there  shall  be
  determined, as of June thirtieth, nineteen hundred eighty, the amount of
  the  total  liability  for  all  benefits  provided  in  the  rules  and
  regulations, in articles eleven  and  fourteen  of  the  retirement  and
  social security law and in any other law prescribing benefits payable by
  the  retirement  system  on  account  of  all members and beneficiaries,
  excluding the liability on account  of  future  increased-take-home  pay
  contributions,  if  any,  and the liability for benefits attributable to
  the annuity savings fund and to the variable annuity savings fund.
    (B) From such total liability computed pursuant  to  sub-item  (A)  of
  this item, there shall be subtracted the sum of:
    (1)  the present value, as of June thirtieth, nineteen hundred eighty,
  of all future normal costs of the retirement system,  computed  pursuant
  to  the  entry  age normal cost method of determining such normal costs;
  and
    (2) the present value, as  of  such  June  thirtieth,  of  all  future
  installments  of the balance sheet liability contribution (as defined in
  subparagraph sixteen of this paragraph); and
    (3) the present value, as of such June thirtieth, of all then required
  future payments, pursuant to subdivision six of  section  seven  of  the
  rules   and   regulations,  of  installments  of  losses  in  excess  of
  installments of gains on dispositions of securities within  the  meaning
  of such subdivision; and
    (4)  the  present  value,  as of such June thirtieth, of future member
  contributions of members subject to article fourteen of  the  retirement
  and social security law; and
    (5)  the  total funds on hand as of such June thirtieth, excluding the
  amount in the annuity savings fund and variable  annuity  savings  fund,
  but  including  the amount of any unpaid moneys appropriated pursuant to
  section nine of the rules and regulations.
    (iii) (A) If the amount computed pursuant to sub-item (B) of item (ii)
  of this subparagraph is larger than  the  amount  computed  pursuant  to
  sub-item  (G)  of  item (ii) of subparagraph five of this paragraph, the
  latter amount shall  be  subtracted  from  the  former  amount  and  the
  remainder resulting from such subtraction shall constitute a charge.
    (B)  If  the  amount computed pursuant to sub-item (B) of item (ii) of
  this subparagraph is  smaller  than  the  amount  computed  pursuant  to
  sub-item  (G)  of  item (ii) of subparagraph five of this paragraph, the
  former amount shall  be  subtracted  from  the  latter  amount  and  the
  remainder resulting from such subtraction shall constitute a credit.

    (iv)  (A)  If  the  remainder  computed pursuant to item (iii) of this
  subparagraph is a charge, the nineteen hundred eighty  unfunded  accrued
  liability adjustment shall be an amount which, if paid to the contingent
  reserve  fund  in  thirty  equal  annual  installments,  commencing with
  payment   of   a  first  installment  in  the  city's  nineteen  hundred
  eighty--nineteen hundred eighty-one fiscal year, would be the  actuarial
  equivalent,  on  the basis of seven and one-half per centum interest per
  annum, of such remainder.
    (B)  If  the  remainder  computed  pursuant  to  item  (iii)  of  this
  subparagraph  is  a credit, the nineteen hundred eighty unfunded accrued
  liability adjustment shall be an amount which,  if  credited  in  thirty
  equal  annual  installments  (the  first  of which installments is to be
  credited  in  the  city's  nineteen  hundred  eighty--nineteen   hundred
  eighty-one  fiscal  year) in reduction of the amounts which the board of
  education would otherwise be required to pay to the  contingent  reserve
  fund  pursuant  to  items  (i),  (iii),  (iv),  (v),  (vi)  and (vii) of
  subparagraph two of this paragraph, would be the  actuarial  equivalent,
  on  the  basis  of  seven and one-half per centum interest per annum, of
  such remainder.
    (v) (A) With respect to determination of the amount  of  contributions
  payable  to  the  contingent reserve fund in each of the city's nineteen
  hundred  eighty--nineteen  hundred  eighty-one  and   nineteen   hundred
  eighty-one--nineteen   hundred   eighty-two  fiscal  years,  the  annual
  installment of the nineteen hundred eighty  unfunded  accrued  liability
  adjustment  computed  pursuant  to  item  (iv) of this subparagraph (6),
  which installment is applicable to such fiscal years, shall  be  applied
  as  a  charge  or  a  credit,  as  the  case may be, in relation to such
  contributions payable in such fiscal year.
    (B) With respect to  determination  of  the  amount  of  contributions
  payable  to  the  contingent  reserve  fund  in  each  city  fiscal year
  occurring during the period beginning on July  first,  nineteen  hundred
  eighty-two  and ending on June thirtieth, nineteen hundred eighty-eight,
  the nineteen hundred eighty unfunded accrued liability adjustment  shall
  be  an  amount which, if paid (if a charge) or credited (if a credit) in
  twenty-eight equal annual installments, commencing  with  a  payment  or
  credit,   as   the   case   may  be,  in  the  city's  nineteen  hundred
  eighty-two--nineteen hundred eighty-three  fiscal  year,  would  be  the
  actuarial  equivalent,  on  the  basis  of eight per centum interest per
  annum, of the present value, as  of  June  thirtieth,  nineteen  hundred
  eighty-two  on  the  basis of seven and one-half per centum interest per
  annum, of those installments of the  nineteen  hundred  eighty  unfunded
  accrued  liability  adjustment  computed  pursuant  to item (iv) of this
  subparagraph (6), which installments  are  hypothetically  allocated  by
  such   item  (iv)  to  designated  city  fiscal  years  succeeding  June
  thirtieth, nineteen hundred eighty-two.
    (C) With respect to  determination  of  the  amount  of  contributions
  payable  to  the  contingent  reserve  fund  in  each  city  fiscal year
  occurring during the period beginning on July  first,  nineteen  hundred
  eighty-eight  and  ending  on  June  thirtieth,  two  thousand  ten, the
  nineteen hundred eighty unfunded accrued liability adjustment  shall  be
  an  amount  which,  when paid (if a charge) or credited (if a credit) in
  twenty-two equal annual  installments,  commencing  with  a  payment  or
  credit,   as   the   case   may  be,  in  the  city's  nineteen  hundred
  eighty-eight--nineteen hundred eighty-nine fiscal  year,  shall  be  the
  actuarial  equivalent,  on the basis of eight and one-quarter per centum
  interest per annum, of the present value, as of June thirtieth, nineteen
  hundred eighty-eight on the basis  of  eight  per  centum  interest  per
  annum,  of  those  installments  of the nineteen hundred eighty unfunded

  accrued liability adjustment computed pursuant to sub-item (B)  of  this
  item  (v),  which  installments  are  hypothetically  allocated  by such
  sub-item (B) to designated city fiscal years succeeding June  thirtieth,
  nineteen hundred eighty-eight.
    (D)  With  respect  to  determination  of  the amount of contributions
  payable to the contingent reserve fund in each of such city fiscal years
  referred to in sub-item (B) or sub-item (C) of this item (v), the annual
  installment of the nineteen hundred eighty  unfunded  accrued  liability
  adjustment  computed  pursuant  to  sub-item (B) or sub-item (C) of this
  item (v), which installment is applicable to such fiscal year, shall  be
  applied  as  a charge or credit, as the case may be, in relation to such
  contributions payable in such fiscal year.
    (vi) (A) The nineteen hundred eighty-two  unfunded  accrued  liability
  adjustment shall be an amount determined as prescribed in sub-items (B),
  (C), (D) and (E) of this item (vi).
    (B)  Upon  the  basis  of  the  actuarial  tables in effect as of June
  thirtieth,  nineteen  hundred  eighty-one  for  valuation  purposes  and
  interest  at  the rate of seven and one-half per centum per annum, there
  shall be determined, as of June thirtieth, nineteen hundred  eighty-two,
  the  amount of the actuarial accrued liability of the retirement system,
  computed pursuant to the entry age normal cost  method  of  ascertaining
  such actuarial accrued liability.
    (C)  Upon  the  basis  of  the  actuarial  tables in effect as of June
  thirtieth,  nineteen  hundred  eighty-two  for  valuation  purposes  and
  interest  at  the  rate  of  eight  per centum per annum, there shall be
  determined, as of  June  thirtieth,  nineteen  hundred  eighty-two,  the
  amount  of  the  actuarial  accrued  liability of the retirement system,
  computed pursuant to the entry age normal cost  method  of  ascertaining
  such actuarial accrued liability.
    (D)  With  respect  to  determination  of  the amount of contributions
  payable to  the  contingent  reserve  fund  in  each  city  fiscal  year
  occurring  during  the  period beginning on July first, nineteen hundred
  eighty-two and ending on June thirtieth, nineteen hundred  eighty-eight,
  the  nineteen  hundred  eighty-two unfunded accrued liability adjustment
  shall be the applicable installments of an amount which, if credited  in
  thirty  equal annual installments (the first of which installments is to
  be credited in the city's nineteen hundred eighty-two--nineteen  hundred
  eighty-three fiscal year) in reduction of the amounts which the board of
  education  would  otherwise be required to pay to the contingent reserve
  fund pursuant to items (i), (iii), (iv), (vi) and (vii) of  subparagraph
  (2)  of  paragraph (c) of this subdivision sixteen or otherwise pursuant
  to law, would be the actuarial equivalent, on the  basis  of  eight  per
  centum interest per annum, of the excess of the amount computed pursuant
  to  sub-item  (B) of this item (vi) over the amount computed pursuant to
  sub-item (C) of this item (vi).
    (E) With respect to  determination  of  the  amount  of  contributions
  payable  to  the  contingent  reserve  fund  in  each  city  fiscal year
  occurring during the period beginning on July  first,  nineteen  hundred
  eighty-eight  and  ending  on  June  thirtieth, two thousand twelve, the
  nineteen hundred eighty-two unfunded accrued liability adjustment  shall
  be   an   amount  which,  when  credited  in  twenty-four  equal  annual
  installments (the first of which installments is to be credited  in  the
  city's   nineteen  hundred  eighty-eight--nineteen  hundred  eighty-nine
  fiscal year) in reduction of the amounts which the  board  of  education
  would  otherwise  be  required  to  pay  to  the contingent reserve fund
  pursuant to items (i), (iii), (iv), (vi) and (vii) of  subparagraph  (2)
  of  paragraph  (c)  of this subdivision sixteen or otherwise pursuant to
  law, shall be the actuarial  equivalent,  on  the  basis  of  eight  and

  one-quarter  per  centum interest per annum, of the present value, as of
  June thirtieth, nineteen hundred eighty-eight on the basis of eight  per
  centum interest per annum, of those installments of the nineteen hundred
  eighty-two  unfunded  accrued  liability adjustment computed pursuant to
  sub-item (d) of this item (vi), which  installments  are  hypothetically
  allocated   by  such  sub-item  (D)  to  designated  city  fiscal  years
  succeeding June thirtieth, nineteen hundred eighty-eight.
    (vii) (A) The nineteen hundred eighty-five unfunded accrued  liability
  adjustment shall be an amount determined as prescribed in sub-items (B),
  (C), (D) and (E) of this item (vii).
    (B)  Upon  the  basis  of the actuarial tables in effect for valuation
  purposes with  respect  to  determination  of  the  normal  contribution
  payable  to  the  contingent reserve fund in the city's nineteen hundred
  eighty-four--nineteen hundred eighty-five fiscal year  and  interest  at
  the  rate of eight per centum per annum, there shall be determined as of
  June  thirtieth,  nineteen  hundred  eighty-five,  the  amount  of   the
  actuarial  accrued liability of the retirement system, computed pursuant
  to the entry age normal  cost  method  of  ascertaining  such  actuarial
  accrued liability.
    (C)  Upon  the  basis  of the actuarial tables in effect for valuation
  purposes with  respect  to  determination  of  the  normal  contribution
  payable  to  the  contingent reserve fund in the city's nineteen hundred
  eighty-five--nineteen hundred eighty-six fiscal year and interest at the
  rate of eight per centum per annum, there shall  be  determined,  as  of
  June   thirtieth,  nineteen  hundred  eighty-five,  the  amount  of  the
  actuarial accrued liability of the retirement system, computed  pursuant
  to  the  entry  age  normal  costs method of ascertaining such actuarial
  accrued liability.
    (D) With respect to  determination  of  the  amount  of  contributions
  payable  to  the  contingent  reserve  fund  in  each  city  fiscal year
  occurring during the period beginning on July  first,  nineteen  hundred
  eighty-five and ending on June thirtieth, nineteen hundred eighty-eight,
  the  nineteen  hundred eighty-five unfunded accrued liability adjustment
  shall be the applicable installments of an amount which, if credited  in
  thirty  equal annual installments (the first of which installments is to
  be credited in the city's nineteen hundred eighty-five--nineteen hundred
  eighty-six fiscal year) in reduction of the amounts which the  board  of
  education  would  otherwise be required to pay to the contingent reserve
  fund pursuant to items (i), (iii), (iv), (vi) and (vii) of  subparagraph
  (2)  of  this  paragraph  (c) or otherwise pursuant to law, would be the
  actuarial equivalent, on the basis of  eight  per  centum  interest  per
  annum,  of the excess of the amount computed pursuant to sub-item (B) of
  this item (vii) over the amount computed pursuant  to  sub-item  (C)  of
  this item (vii).
    (E)  With  respect  to  determination  of  the amount of contributions
  payable to  the  contingent  reserve  fund  in  each  city  fiscal  year
  occurring  during  the  period beginning on July first, nineteen hundred
  eighty-eight and ending on June thirtieth,  two  thousand  fifteen,  the
  nineteen hundred eighty-five unfunded accrued liability adjustment shall
  be   an  amount  which,  when  credited  in  twenty-seven  equal  annual
  installments (the first of which installments is to be credited  in  the
  city's   nineteen  hundred  eighty-eight--nineteen  hundred  eighty-nine
  fiscal year) in reduction of the amounts which the  board  of  education
  would  otherwise  be  required  to  pay  to  the contingent reserve fund
  pursuant to items (i), (iii), (iv), (vi) and (vii) of  subparagraph  (2)
  of  this  paragraph  (c)  or  otherwise  pursuant  to  law, shall be the
  actuarial equivalent, on the basis of eight and one-quarter  per  centum
  interest per annum, of the present value, as of June thirtieth, nineteen

  hundred  eighty-eight  on  the  basis  of  eight per centum interest per
  annum,  of  those  installments  of  the  nineteen  hundred  eighty-five
  unfunded  accrued liability adjustment computed pursuant to sub-item (D)
  of  this  item (vii), which installments are hypothetically allocated by
  such sub-item (D) to designated fiscal years succeeding June  thirtieth,
  nineteen hundred eighty-eight.
    (7) The balance sheet liability as of June thirtieth, nineteen hundred
  seventy-four  shall be the sum of twenty-five million, eight hundred two
  thousand, nine hundred seventy-two dollars ($25,802,972), consisting  of
  the sum of:
    (i)  the  discounted  value,  as  of  June thirtieth, nineteen hundred
  seventy-four, of the  sum  of  eleven  million,  fifty  thousand,  eight
  hundred eighty-eight dollars ($11,050,888), which constituted the amount
  payable  to  the  contingent reserve fund in the city's nineteen hundred
  seventy-four--nineteen hundred seventy-five fiscal year by the board  of
  education in fulfillment of its obligations to make contributions to the
  retirement  system  payable  in such fiscal year, such discounting being
  calculated on the basis of interest at the rate of five and one-half per
  centum  per  annum  and  a  discount  period  of  six  months  extending
  retroactively  from January first, nineteen hundred seventy-five to June
  thirtieth, nineteen hundred seventy-four and such discounted value being
  the sum of ten million, seven hundred fifty-eight thousand, nine hundred
  seventy-nine dollars ($10,758,979); and
    (ii) the discounted value, as  of  June  thirtieth,  nineteen  hundred
  seventy-four, of the sum of sixteen million, three hundred two thousand,
  thirty-eight dollars ($16,302,038), which constituted the amount payable
  into  the  contingent  reserve  fund  in  the  city's  nineteen  hundred
  seventy-five--nineteen hundred seventy-six fiscal year by the  board  of
  education in fulfillment of its obligations to make contributions to the
  retirement  system  payable  in such fiscal year, such discounting being
  calculated on the basis of interest at the rate of five and one-half per
  centum per annum and a discount  period  of  eighteen  months  extending
  retroactively  from  January first, nineteen hundred seventy-six to June
  thirtieth, nineteen hundred  seventy-four,  and  such  discounted  value
  being  the  sum  of  fifteen million, forty-three thousand, nine hundred
  ninety-three dollars ($15,043,993).
    (8) The balance sheet liability as of each June  thirtieth  succeeding
  June  thirtieth,  nineteen  hundred  seventy-four  to and including June
  thirtieth, nineteen hundred eighty, shall be determined as provided  for
  in subparagraphs nine to sixteen, inclusive, of this paragraph.
    (9)  To the amount of the balance sheet liability as of June thirtieth
  next preceding the June thirtieth (which last-mentioned  June  thirtieth
  is  hereinafter referred to as the "subject June thirtieth") as of which
  the balance sheet liability is  being  determined  as  provided  for  in
  subparagraph  eight  of  this paragraph, there shall be added one year's
  interest on such amount at the rate of five and one-half per centum  per
  annum.
    (10) With respect to the city's fiscal year ending on the subject June
  thirtieth  (hereinafter  referred to as the "subject fiscal year") there
  shall  be  added  together  the  contribution   components   hereinafter
  specified  in  this  subparagraph, which components, for the purposes of
  subparagraphs eight  to  sixteen,  inclusive,  of  this  paragraph,  are
  hypothetically  deemed to have accrued in the subject fiscal year and to
  have been payable therein, as follows:
    (i) the amount of the normal contribution for balance sheet  liability
  purposes  (as  defined  in  subparagraph  five  of paragraph (a) of this
  subdivision); and

    (ii) the amount of the applicable installment of the unfunded  accrued
  liability  contribution for balance sheet liability purposes (as defined
  in subparagraph six of paragraph (a) of this subdivision); and
    (iii)  the  amount  of  the  annual  contribution,  for  balance sheet
  liability purposes, on account of amortization of losses on dispositions
  of certain securities within the meaning of subdivision six  of  section
  seven  of the rules and regulations (as defined in subparagraph seven of
  paragraph (a) of this subdivision); and
    (iv)  the  amount  of  the  annual  contribution,  for  balance  sheet
  liability  purposes,  on account of reserves-for-increased-take-home pay
  (as defined in subparagraph eight of paragraph (a) of this subdivision);
  and
    (v) the amount of the annual military  law  contribution  for  balance
  sheet  liability  purposes (as defined in subparagraph nine of paragraph
  (a) of this subdivision).
    (11)  To  the  amount  resulting  from  the  addition  prescribed   by
  subparagraph  ten  of  this paragraph (c), there shall be added interest
  thereon at the rate of five and  one-half  per  centum  per  annum  from
  January  first  of  the  subject  fiscal  year to June thirtieth of such
  fiscal year.
    (12) The  amount  computed  pursuant  to  subparagraph  nine  of  this
  paragraph  in  relation  to  the  balance  sheet  liability  as  of June
  thirtieth next preceding the subject June thirtieth (together  with  one
  year's  interest  on such balance sheet liability) shall be added to the
  amount computed pursuant  to  subparagraph  ten  of  this  paragraph  in
  relation to the subject fiscal year.
    (13)  From the amount computed pursuant to subparagraph twelve of this
  paragraph, there shall be subtracted the sum of:
    (i) The total amount of the sums paid to the contingent  reserve  fund
  during  the  subject fiscal year by the board of education on account of
  its obligations, which accrued during  the  city's  second  fiscal  year
  preceding the subject fiscal year to provide:
    (A)  the  normal contribution payable in the subject fiscal year under
  the provisions of subparagraphs two and three of this paragraph, as then
  in effect; and
    (B) the installment of the  deficiency  contribution  (as  defined  in
  subparagraph   ten   of  paragraph  (a)  of  this  subdivision)  or  the
  installment of the original unfunded accrued liability contribution  (as
  defined in item (i) of subparagraph five of this paragraph), as the case
  may be, payable in the subject fiscal year; and
    (C)  the  amount  of  the  contribution  on  account  of amortization,
  pursuant  to  subdivision  six  of  section  seven  of  the  rules   and
  regulations, of losses on dispositions of certain securities (as defined
  in  subparagraph eleven of paragraph (a) of this subdivision) payable in
  the subject fiscal year; and
    (D) the amount payable in  the  subject  fiscal  year  on  account  of
  reserves-for-increased-take-home pay; and
    (E) the amount payable in the subject fiscal year in behalf of members
  pursuant to subdivision twenty of section two hundred forty-three of the
  military law; plus
    (ii)  interest  on  such  total amount referred to in item (i) of this
  subparagraph thirteen at the rate of five and one-half  per  centum  per
  annum  from  January  first of the subject fiscal year to June thirtieth
  thereof.
    (14) The  remainder  resulting  from  the  subtraction  prescribed  by
  subparagraph  thirteen  of  this  paragraph  shall  be the balance sheet
  liability as of June thirtieth of the subject fiscal year.

    (15) The balance  sheet  liability  as  of  June  thirtieth,  nineteen
  hundred  eighty  shall  be  the  amount  resulting  from  the successive
  computations of the balance sheet liability as of  each  June  thirtieth
  succeeding  June  thirtieth,  nineteen  hundred  seventy-four  up to and
  including  June  thirtieth,  nineteen  hundred  eighty  as prescribed by
  subparagraphs eight to fourteen, inclusive, of this paragraph.
    (16) The balance sheet liability contribution payable  in  the  city's
  nineteen  hundred  eighty-one--nineteen  hundred  eighty-two fiscal year
  shall be the first annual installment of an amount which, if paid to the
  contingent reserve fund in forty equal annual  installments,  commencing
  with  payment  of  a  first  installment  in the city's nineteen hundred
  eighty-one--nineteen  hundred  eighty-two  fiscal  year,  would  be  the
  actuarial equivalent, as of June thirtieth, nineteen hundred eighty-one,
  on  the basis of seven and one-half per centum interest per annum, of an
  amount equal to the  balance  sheet  liability  as  of  June  thirtieth,
  nineteen hundred eighty.
    (16-a)  The  balance sheet liability contribution payable in each city
  fiscal year during the period beginning on July first, nineteen  hundred
  eighty-two  and  ending on June thirtieth, nineteen hundred eighty-eight
  shall be one annual installment of an  amount  which,  if  paid  to  the
  contingent  reserve  fund  in  thirty-nine  equal  annual  installments,
  commencing  with  a  first  payment  in  the  city's  nineteen   hundred
  eighty-two--nineteen  hundred  eighty-three  fiscal  year,  would be the
  actuarial equivalent, as of June thirtieth, nineteen hundred eighty-two,
  on the basis of eight per centum interest  per  annum,  of  the  present
  value, as of June thirtieth, nineteen hundred eighty-two on the basis of
  seven  and one-half per centum interest per annum, of those installments
  of  the  balance  sheet  liability  contribution  computed  pursuant  to
  subparagraph   (16)  of  this  paragraph  (c),  which  installments  are
  hypothetically allocated by such subparagraph (16)  to  designated  city
  fiscal years succeeding June thirtieth, nineteen hundred eighty-two.
    (16-b)  The  balance sheet liability contribution payable in each city
  fiscal year during the period beginning on July first, nineteen  hundred
  eighty-eight and ending on June thirtieth, two thousand twenty-one shall
  be  one  annual  installment  of  an  amount  which,  when  paid  to the
  contingent reserve  fund  in  thirty-three  equal  annual  installments,
  commencing   with  a  first  payment  in  the  city's  nineteen  hundred
  eighty-eight--nineteen hundred eighty-nine fiscal  year,  shall  be  the
  actuarial   equivalent,   as   of   June   thirtieth,  nineteen  hundred
  eighty-eight, on the basis of eight and one-quarter per centum  interest
  per  annum, of the present value, as of June thirtieth, nineteen hundred
  eighty-eight on the basis of eight per centum  interest  per  annum,  of
  those  installments of the balance sheet liability contribution computed
  pursuant  to  subparagraph  (16-a)  of   this   paragraph   (c),   which
  installments are hypothetically allocated by such subparagraph (16-a) to
  designated city fiscal years succeeding June thirtieth, nineteen hundred
  eighty-eight.
    (17) Notwithstanding any provision of the rules and regulations or any
  other  provision  of law to the contrary, whenever the retirement board,
  on the recommendation  of  the  actuary,  shall  determine  that  it  is
  necessary to increase the reserves held in the annuity reserve fund, the
  pension reserve fund or the pension fund, such board may direct that the
  amount  so  needed  shall  be  transferred  thereto  from the contingent
  reserve fund.
    (d) (1) During the period commencing on July first,  nineteen  hundred
  seventy-seven  and  ending  on  June thirtieth, nineteen hundred eighty,
  special interest at the rate of one and one-half per centum  per  annum,
  compounded  annually,  shall  be  allowed with respect to the individual

  account of each member in the annuity savings  fund  of  the  retirement
  system.
    (2)  Subject  to  the provisions of paragraph (f) of this subdivision,
  during the period commencing on July first, nineteen hundred eighty  and
  ending  on June thirtieth, nineteen hundred eighty-two, special interest
  at the rate of three and  one-half  per  centum  per  annum,  compounded
  annually,  shall  be  allowed  with respect to the individual account of
  each member in the annuity savings fund.
    (3)  (i)  Subject  to  the  provisions  of  paragraph  (f)   of   this
  subdivision,  during  the  period  commencing  on  July  first, nineteen
  hundred eighty-two and ending on  July  thirty-first,  nineteen  hundred
  eighty-three, special interest at the rate of four per centum per annum,
  compounded  annually,  shall  be  allowed with respect to the individual
  account of each member in the annuity savings fund.
    (ii) Subject to the provisions of paragraph (f) of  this  subdivision,
  during   the   period  commencing  on  August  first,  nineteen  hundred
  eighty-three and ending on June thirtieth, nineteen hundred eighty-five,
  special interest at the rate of one per  centum  per  annum,  compounded
  annually,  shall  be  allowed  with respect to the individual account of
  each member in the annuity savings fund.
    (iii) Subject to the provisions of paragraph (f) of this  subdivision,
  during the period commencing on July first, nineteen hundred eighty-five
  and  ending  on  June  thirtieth, nineteen hundred eighty-eight, special
  interest at the rate of one per centum per annum,  compounded  annually,
  shall  be  allowed with respect to the individual account of each member
  in the annuity savings fund.
    (iv) Subject to the provisions of paragraph (f) of  this  subdivision,
  during   the   period   commencing   on  July  first,  nineteen  hundred
  eighty-eight and ending on  June  thirtieth,  nineteen  hundred  ninety,
  special  interest  at  the  rate  of  one and one-quarter per centum per
  annum, compounded  annually,  shall  be  allowed  with  respect  to  the
  individual account of each member in the annuity savings fund.
    (4)  Such  special interest provided for by subparagraphs (1), (2) and
  (3) of this paragraph shall be credited to such  individual  account  of
  each  member entitled thereto in the same manner and at the same time as
  regular interest is required to be credited to such account with respect
  to the  same  period  of  time.  Such  special  interest  shall  not  be
  considered  in  determining  rates  of contributions of members. Nothing
  contained in this paragraph shall be  construed  as  applicable  to  any
  member  who  is subject to the provisions of article fourteen or article
  fifteen of the retirement and social security law.
    (e)  (1)  Subject  to  the  provisions  of  paragraph  (f)   of   this
  subdivision,  in  determining the reserve-for-increased-take-home-pay of
  each member entitled to such a reserve, additional interest at the  rate
  of  one  and  one-half per centum per annum compounded annually shall be
  included for each city fiscal year occurring during the period beginning
  on July  first,  nineteen  hundred  seventy-seven  and  ending  on  June
  thirtieth, nineteen hundred eighty.
    (2) Subject to the provisions of paragraph (f) of this subdivision, in
  determining   the  reserve-for-increased-take-home-pay  of  each  member
  entitled to such a reserve, additional interest at the rate of three and
  one-half per centum per annum compounded annually shall be included  for
  each  city  fiscal  year  occurring  during the period beginning on July
  first, nineteen hundred eighty and ending on  June  thirtieth,  nineteen
  hundred eighty-two.
    (3) (i) Subject to the provisions of paragraph (f) of this subdivision
  in  determining  the  reserve-for-increased-take-home-pay of each member
  entitled to such a reserve, additional interest at the rate of four  per

  centum  per  annum  compounded  annually shall be included for each city
  fiscal year and portion thereof occurring during the period beginning on
  July first, nineteen hundred eighty-two and ending on July thirty-first,
  nineteen hundred eighty-three.
    (ii)  Subject  to the provisions of paragraph (f) of this subdivision,
  in determining the reserve-for-increased-take-home-pay  of  each  member
  entitled  to  such a reserve, additional interest at the rate of one per
  centum per annum compounded annually shall be  included  for  each  city
  fiscal year and portion thereof occurring during the period beginning on
  August   first,   nineteen  hundred  eighty-three  and  ending  on  June
  thirtieth, nineteen hundred eighty-five.
    (iii) Subject to the provisions of paragraph (f) of this  subdivision,
  in  determining  the  reserve-for-increased-take-home-pay of each member
  entitled to such a reserve, additional interest at the rate of  one  per
  centum  per  annum  compounded  annually shall be included for each city
  fiscal year  occurring  during  the  period  beginning  on  July  first,
  nineteen  hundred  eighty-five  and  ending  on June thirtieth, nineteen
  hundred eighty-eight.
    (iv) Subject to the provisions of paragraph (f) of  this  subdivision,
  in  determining  the  reserve-for-increased-take-home-pay of each member
  entitled to such a reserve, additional interest at the rate of  one  and
  one-quarter  per  centum per annum compounded annually shall be included
  for each city fiscal year occurring during the period beginning on  July
  first,  nineteen  hundred  eighty-eight  and  ending  on June thirtieth,
  nineteen hundred ninety.
    (4) Additional interest shall not be considered in  determining  rates
  of  contribution  of  members.  Nothing  contained in this paragraph (e)
  shall be construed as applicable to any member who  is  subject  to  the
  provisions  of article fourteen or article fifteen of the retirement and
  social security law.
    (f) (1) The provisions of subparagraph (2) of paragraph  (d)  of  this
  subdivision  and  of  subparagraphs (1) and (2) of paragraph (e) of this
  subdivision, to the extent that any of such provisions grants special or
  additional interest, as the case may be, for any period  prior  to  July
  thirty-first, nineteen hundred eighty-two, shall not apply to any person
  who  was  not  a member on such July thirty-first and shall not apply to
  any person to whom, on such July  thirty-first,  a  deferred  retirement
  allowance  or  any  part  of  such  a  retirement  allowance was payable
  pursuant to the provisions  of  section  thirty-two  of  the  rules  and
  regulations.  Nothing  contained  in  paragraphs  (d)  and  (e)  of this
  subdivision  shall  be  construed  as  granting  special  or  additional
  interest,  as  the case may be, to any person with respect to any period
  wherein such person was not  a  member  entitled  to  be  credited  with
  regular  interest  for  the same period or was not a discontinued member
  entitled to be credited, as a discontinued member, with regular interest
  for the same period.
    (2) (i) The provisions of item (i) of subparagraph  (3)  of  paragraph
  (d)  of  this  subdivision  sixteen, to the extent that such item grants
  special interest for any period prior to  December  sixteenth,  nineteen
  hundred  eighty-two,  and the provisions of item (i) of subparagraph (3)
  of paragraph (e) of this subdivision,  to  the  extent  that  such  item
  grants  additional interest for any period prior to such date, shall not
  apply to any person who was not a member on  such  date  and  shall  not
  apply  to  any  person  to  whom,  on  such  date, a deferred retirement
  allowance or any  part  of  such  a  retirement  allowance  was  payable
  pursuant  to  the  provisions  of  section  thirty-two  of the rules and
  regulations.

    (ii) The provisions of item (iv) of subparagraph (3) of paragraph  (d)
  of this subdivision sixteen, to the extent that such item grants special
  interest for any period prior to the date of enactment of this item (ii)
  of  this  subparagraph  (2)  of  this  paragraph  (f)  (as  such date is
  certified,  pursuant  to  section forty-one of the legislative law), and
  the provisions of item (iv) of subparagraph (3) of paragraph (e) of this
  subdivision, to the extent that such item grants additional interest for
  any period prior to such date shall not apply to any person who was  not
  a member on such date and shall not apply to any person to whom, on such
  date,  a  deferred retirement allowance or any part of such a retirement
  allowance was payable pursuant to the provisions of  section  thirty-two
  of the rules and regulations.
    (3)  Nothing  contained  in paragraphs (d) and (e) of this subdivision
  shall be construed as granting special or additional  interest,  as  the
  case  may  be,  to  any  person  with respect to any period wherein such
  person was not a member entitled to be credited  with  regular  interest
  for  the  same  period  or  was not a discontinued member entitled to be
  credited, as a discontinued member, with regular interest for  the  same
  period.
    (g)  (1)  As  used  in this paragraph, the term "funds" shall mean the
  funds created in  accordance  with  the  provisions  of  the  rules  and
  regulations  other  than  the variable annuity funds provided for by the
  rules and regulations.
    (2) Subject to the provisions of subparagraph (4) of  this  paragraph,
  in  addition  to  regular  interest annually allowed for the period from
  July first, nineteen hundred seventy-seven to June  thirtieth,  nineteen
  hundred  eighty on the mean amount for the preceding year in each of the
  funds created in  accordance  with  the  provisions  of  the  rules  and
  regulations, there shall be annually allowed with respect to such period
  supplementary  interest  at  the rate of one and one-half per centum per
  annum on such mean amount for the preceding year in each of such  funds.
  Such  supplementary interest shall be annually credited to such funds at
  the same time and in the same manner as regular interest was credited to
  such funds with respect to such period.
    (3) Subject to the provisions of subparagraph (4) of  this  paragraph,
  in  addition  to  regular  interest annually allowed for the period from
  July first, nineteen hundred eighty to June thirtieth, nineteen  hundred
  eighty-two  on  the  mean  amount  for the preceding year in each of the
  funds created in  accordance  with  the  provisions  of  the  rules  and
  regulations, there shall be annually allowed with respect to such period
  supplementary  interest at the rate of three and one-half per centum per
  annum on such mean amount for the preceding year in each of such  funds.
  Such  supplementary interest shall be annually credited to such funds at
  the same time and in the same manner as regular interest is credited  to
  such funds with respect to such period.
    (4)  (i)  Subject  to  the  provisions  of  subparagraph  (5)  of this
  paragraph (g), in addition to regular interest annually allowed for  the
  period   from   July   first,   nineteen   hundred  eighty-two  to  July
  thirty-first, nineteen hundred eighty-three on the mean amount  for  the
  preceding  year in each of the funds provided for in accordance with the
  provisions of the rules and regulations, there shall be annually allowed
  with respect to such period supplementary interest at the rate  of  four
  per  centum per annum on such mean amount for the preceding year in each
  of such funds.  Such supplementary interest shall be  annually  credited
  to  such  funds  at  the  same  time  and  in the same manner as regular
  interest is credited to such funds with respect to such period.
    (ii) Subject to the provisions of subparagraph (5) of this  paragraph,
  in  addition  to  regular  interest annually allowed for the period from

  August first, nineteen hundred eighty-three to June thirtieth,  nineteen
  hundred eighty-five on the mean amount for the preceding year in each of
  the  funds  provided  for in accordance with the provisions of the rules
  and  regulations,  there  shall be annually allowed with respect to such
  period supplementary interest at the rate of one per centum per annum on
  such mean amount for the preceding year in  each  of  such  funds.  Such
  supplementary  interest  shall be annually credited to such funds at the
  same time and in the same manner as regular interest is credited to such
  funds with respect to such period.
    (iii) Subject to the provisions of subparagraph (5) of this  paragraph
  (g),  in  addition  to  regular interest annually allowed for the period
  from  July  first,  nineteen  hundred  eighty-five  to  June  thirtieth,
  nineteen  hundred eighty-eight on the mean amount for the preceding year
  in each of the funds provided for in accordance with the  provisions  of
  the  rules and regulations, there shall be annually allowed with respect
  to such period supplementary interest at the rate of one per centum  per
  annum  on such mean amount for the preceding year in each of such funds.
  Such supplementary interest shall be annually credited to such funds  at
  the  same time and in the same manner as regular interest is credited to
  such funds with respect to such period.
    (iv) Subject to the provisions of subparagraph (5) of  this  paragraph
  (g),  in  addition  to  regular interest annually allowed for the period
  from July  first,  nineteen  hundred  eighty-eight  to  June  thirtieth,
  nineteen  hundred  ninety  on  the mean amount for the preceding year in
  each of the funds provided for in accordance with the provisions of  the
  rules  and  regulations, there shall be annually allowed with respect to
  such period supplementary interest at the rate of  one  and  one-quarter
  per  centum per annum on such mean amount for the preceding year in each
  of such funds. Such supplementary interest shall be annually credited to
  such funds at the same time and in the same manner as  regular  interest
  is credited to such funds with respect to such period.
    (5) The provisions of subparagraphs (2), (3) and (4) of this paragraph
  shall  not  apply  to  or affect (i) the allowance of interest on or the
  crediting of interest to accounts of members or discontinued members  in
  the  annuity  saving  fund  or  (ii) the allowance of interest on or the
  crediting of interest to reserves-for-increased-take-home-pay of members
  or discontinued members or (iii) the determination of the amount of  any
  benefit payable to any member or beneficiary.
    (h-1)  The  allowance  of  special  interest,  additional interest and
  supplementary interest, if any, with respect to any fiscal year  of  the
  city  beginning on or after July first, nineteen hundred ninety shall be
  governed by  the  applicable  provisions  of  section  13-638.2  of  the
  administrative code of the city.
    (h-2)  The  provisions  of  paragraph (d) of this subdivision, as such
  paragraph applies to the contributions made by a member and the benefits
  provided thereby,  shall  apply  separately  and  independently  to  the
  tax-deferred  annuity  net contributions, if any, of such member and the
  benefits provided thereby,  except  as  otherwise  provided  by  section
  thirty-three of the rules and regulations.
    (h-3)  The  provisions  of subdivisions f and h of section 13-638.2 of
  the  administrative  code  of  the  city  (to  the  extent   that   such
  subdivisions  f  and  h  apply  to  this  retirement  system),  as  such
  subdivisions f and h apply to the contributions made by a member and the
  benefits provided thereby, shall apply separately and  independently  to
  the  tax-deferred  annuity net contributions, if any, of such member and
  the benefits provided thereby, except as otherwise specified in  section
  thirty-three of the rules and regulations.

    (i)  (1)  Notwithstanding  the provisions of section nine of the rules
  and regulations or any other provision of the rules and  regulations  or
  any  other  law  to  the  contrary,  but  subject  to  the provisions of
  subparagraphs two,  three  and  four  of  this  paragraph,  all  income,
  interest  and dividends derived from deposits and investments authorized
  by the rules and regulations, which income, interest and dividends  were
  heretofore  or  are hereafter received during any fiscal year commencing
  on or after July first, nineteen hundred eighty, shall be used  in  such
  fiscal  year for the purposes hereinafter specified in this subparagraph
  (to the extent that such income, interest and dividends  are  sufficient
  for such purposes), in the order of priority herein stated, as follows:
    (A)  first, to pay into the funds of the retirement system the amounts
  of regular interest which are required to be paid  into  such  funds  in
  such fiscal year by reason of being required to be allowed to such funds
  pursuant  to the provisions of paragraph a of subdivision two of section
  seven of the rules and regulations, and  to  pay  into  such  funds  the
  amounts  of  supplementary  interest,  if any, required to be so paid in
  such  fiscal  year  under  the  provisions  of  paragraph  (g)  of  this
  subdivision,  and  to  pay  into the annuity savings fund the amounts of
  special interest, if any, required to be so paid  in  such  fiscal  year
  under  the  provisions  of paragraph (d) of this subdivision, and to pay
  into the contingent reserve fund the amounts of additional interest,  if
  any,  required  to  be  paid in such fiscal year under the provisions of
  paragraph (e) of this subdivision;
    (B) second, to pay into the contingent reserve fund the amount of  any
  losses  in  excess  of  gains (i) which net losses the retirement system
  sustained  during  such  fiscal  year  by  reason  of  sales  or   other
  dispositions of securities, and (ii) for which net losses the retirement
  system  is  required  to be reimbursed in such fiscal year, and (iii) to
  which net losses subdivision six of  section  seven  of  the  rules  and
  regulations,  relating  to graduated crediting of gains and amortization
  of losses on dispositions of certain securities, does not apply;
    (C) third, if the total amount of such income, interest and  dividends
  received  during  such  fiscal  year  is  in  excess of the total amount
  required to make, in such fiscal year, the payments prescribed by  items
  (A)  and  (B)  of  this subparagraph, the amount of such excess shall be
  paid into the contingent reserve fund and shall become  a  part  of  the
  assets of such fund.
    (2) (A) Notwithstanding any other provision of this subdivision or any
  other  law to the contrary, the term "all income, interest and dividends
  derived from deposits and investments", as used in paragraph (f) of this
  subdivision (as such subdivision was in  effect  prior  to  July  first,
  nineteen hundred eighty), shall be construed, in relation to disposition
  of  all income, interest and dividends received by the retirement system
  in each of the  city's  nineteen  hundred  seventy-six--nineteen-hundred
  seventy-seven   and  nineteen  hundred  seventy-seven--nineteen  hundred
  seventy-eight obligations  fiscal  years  (as  such  fiscal  years  were
  defined  by  paragraph (a) of this subdivision prior to such July first)
  as meaning the remainder  obtained  by  subtracting  from  such  income,
  interest   and  dividends  the  sum  of  (i)  the  amounts  of  regular,
  supplementary and special interest required to be allowed and paid  into
  the  appropriate  funds  of  the  retirement  system in such fiscal year
  pursuant to the applicable provision of subdivision two of section seven
  of the rules and regulations and this subdivision and (ii) the amount of
  any losses in excess of gains (1) which net losses were sustained by the
  retirement system during such fiscal year  and  which  net  losses  were
  sustained  by  reason  of sales or other dispositions of securities, and

  (2) to which net losses the provisions of  subdivision  six  of  section
  seven of the rules and regulations do not apply.
    (B)   for  the  purposes  of  the  order  of  priority  governing  the
  disposition of such remainder in the payment fiscal year with respect to
  each such obligations fiscal year (as such disposition was prescribed by
  the provisions of this subdivision as in effect during each such payment
  fiscal year) the provisions of items (A) and (B) of subparagraph (i)  of
  such  paragraph  (f)  shall  be deemed to have been inapplicable and the
  order of priority for such disposition shall be first, the use set forth
  in item (C) of such subparagraph, second, the use set forth in item  (D)
  of  such  subparagraph,  third,  the  use  set forth in item (E) of such
  subparagraph and  fourth,  the  use  set  forth  in  item  (F)  of  such
  subparagraph,  as  such  items were in effect during such payment fiscal
  year.
    (3) (a) All income, interest and dividends  which  were  derived  from
  deposits  and  investments  authorized  by the rules and regulations and
  which  were  received  during  each  of  the  city's  nineteen   hundred
  seventy-eight--nineteen   hundred   seventy-nine  and  nineteen  hundred
  seventy-nine--nineteen hundred eighty fiscal years shall be used in each
  such  fiscal  year  for  the  purposes  hereinafter   stated   in   this
  subparagraph, in the order of priority herein stated, as follows:
    (A)  first,  (i)  to  pay  into the funds of the retirement system the
  amounts of regular interest which are required  to  be  paid  into  such
  funds  in  such  fiscal year wherein such income, interest and dividends
  were received, which interest is so payable by reason of being  required
  to  be  allowed  to  such  funds  in  such  fiscal  year pursuant to the
  provisions of paragraph a of subdivision two of  section  seven  of  the
  rules  and  regulations  and  (ii) to pay into such funds the amounts of
  supplementary interest required to be so paid in such fiscal year  under
  the  applicable  provisions  of  paragraph  (d) of this subdivision, and
  (iii) to pay into the  annuity  savings  fund  the  amounts  of  special
  interest required to be so paid in such fiscal year under the applicable
  provisions  of  paragraph  (d) of this subdivision, and (iv) to pay into
  the contingent reserve fund the amounts of additional interest  required
  to  be  paid  in  such  fiscal  year  under the applicable provisions of
  paragraph (e) of this subdivision;
    (B) second, to pay into the contingent reserve fund the amount of  any
  losses  in  excess  of  gains (i) which net losses were sustained by the
  retirement system during such fiscal year in which such income, interest
  and dividends were received and  which  net  losses  were  sustained  by
  reason  of sales or other dispositions of securities, and (ii) for which
  net losses the retirement system is required to be  reimbursed  in  such
  fiscal  year,  and  (iii) to which net losses subdivision six of section
  seven of the rules and regulations, relating to graduated  crediting  of
  gains  and amortization of losses on dispositions of certain securities,
  does not apply; and
    (C) third, to pay into the contingent reserve fund the amount, if any,
  by which,
    (i) the total of all losses  which  the  retirement  system  sustained
  during  such  fiscal  year  by  reason of sales of securities within the
  meaning of subdivision six of section seven of the rules and regulations
  and which the board of education would otherwise be required to amortize
  pursuant to such subdivision, exceeds
    (ii) the total of all gains which were  realized  during  such  fiscal
  year  by  reason  of  sales  of  securities  within  the meaning of such
  subdivision and which would otherwise be required by such subdivision to
  be credited in favor of the board of education in installments.

    (b) If the  total  amount  of  such  income,  interest  and  dividends
  received  during  each  such fiscal year referred to in item (a) of this
  subparagraph is in excess of the total amount required to make,  in  the
  same  fiscal year, the payments prescribed by sub-items (A), (B) and (C)
  of  such  item  (a),  the  amount  of such excess shall be paid into the
  contingent reserve fund as of June thirtieth of  such  fiscal  year  and
  shall become a part of the assets of such fund as of such date.
    (4)  Nothing  contained  in  subparagraphs  one, two and three of this
  paragraph shall be construed  as  applicable  to  income,  interest  and
  dividends resulting from deposits or investments made under the variable
  annuity program of the retirement system.
    (j)(1) The board of education or the New York city school construction
  authority  shall  make  monthly  payments, in twelve equal installments,
  with respect to the respective obligations which such board or authority
  incurs to pay sums to the retirement system.
    (2) In the city's nineteen hundred eighty--nineteen hundred eighty-one
  fiscal year and in each city fiscal year thereafter, the  equal  monthly
  payments  shall be in respect of obligations which accrue in such fiscal
  year and shall be made in such fiscal year on or before the last day  of
  each month.
    (3)  The  retirement  board  of  the  retirement  system may waive the
  requirements of the foregoing provisions of this paragraph with  respect
  to time of payment to such system, provided that any such waiver of time
  of  payment  in  any  instance shall not apply to the time of subsequent
  payments unless there shall be a subsequent waiver.
    17. (a) For the purposes of this subdivision,  the  terms  "rules  and
  regulations"  and  "retirement system" shall have the meanings set forth
  in subparagraphs three and  four,  respectively,  of  paragraph  (a)  of
  subdivision sixteen of this section.
    (b)  The  following terms, as used in this subdivision, shall have the
  following meanings, unless a different meaning is  plainly  required  by
  the context:
    (1)  "Member." Any person included in the membership of the retirement
  system as provided in section three of the rules and regulations.
    (2) "Actuarial equivalent benefit." Any benefit which pursuant to  the
  rules  and  regulations  or  by  law  is  required  to  be  an actuarial
  equivalent or pursuant to  the  rules  and  regulations  or  by  law  is
  required to be determined on the basis of an actuarial equivalent.
    (3)(i)   "Seven   percent  member  for  actuarial  equivalent  benefit
  purposes." A member who meets all of the following conditions:
    (A) paragraph (c) of this subdivision (relating to the  definition  of
  members  to  whom  regular  interest  at  seven  per  centum  per annum,
  compounded annually, applies) applies to such member; and
    (B) an actuarial equivalent benefit (other  than  a  variable  annuity
  program  benefit)  has  become payable by the retirement system to or on
  account of such member; and
    (C) 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  subparagraph  thirteen  of  this
  paragraph) shall be used to calculate such actuarial equivalent benefit.
    (ii)  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 sub-item (C) of item (i) of  this
  subparagraph  shall  be  construed  as  referring  to  or  including any
  calculation of an actuarial  equivalent  benefit  (or  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.
    (4)   "Tier   I  member."  A  member  whose  benefits  (other  than  a
  supplemental retirement allowance)  are  prescribed  by  the  rules  and
  regulations  and who is not subject to the provisions of article eleven,
  article fourteen  or  article  fifteen  of  the  retirement  and  social
  security law.
    (5)  "Tier  II  member."  A member who is subject to the provisions of
  article eleven of the retirement and social security law.
    (6) "Tier III member." A member who is subject to  the  provisions  of
  article fourteen of the retirement and social security law.
    (7)  "Tier  IV  member."  A member who is subject to the provisions of
  article fifteen of the retirement and social security law.
    (8) "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.
    (9) "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.
    (10) "Education service." Service as a paid official  or  employee  of
  the board of education of the city of New York as now constituted, or of
  any  prior  board, body or agency of which it is the successor in school
  affairs in the territory  now  comprised  within  the  city  and  school
  district  of  New  York,  or  the  New  York  city  school  construction
  authority, and allowable as provided in section four of  the  rules  and
  regulations.
    (11)   "Discontinued   member." A   fifty-five-year-increased-service-
  fraction member (as defined in subdivision thirty-one of section two  of
  the  rules  and  regulations) who has discontinued education-service and
  has a  vested  right  to  a  deferred  retirement  allowance  under  the
  provisions of section thirty-two of the rules and regulations.
    (12)  "Variable  annuity  program  benefit."  Any  benefit  under  the
  variable annuity program of the retirement system which is payable  from
  the variable annuity reserve fund or the variable pension reserve fund.
    (13)  (i)  "Modified Option 1 pension computation formula." 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  such  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 items of this subparagraph.
    (ii)  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.
    (iii)  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:
    (A)  such  present  value  determined  on  the basis of gender-neutral
  nortality tables  and  an  interest  assumption  consisting  of  regular
  interest of seven per centum per annum, compounded annually; or
    (B) 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; or
    (C)  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.
    (iv) 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:
    (A) the present value,  as  it  was  at  the  time  of  such  member's
  retirement, of such component; plus
    (B)  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 item (v) of this subparagraph;
  shall  be  equal  to  the  Option  1 initial reserve determined for such
  pension component with respect to such member pursuant to the provisions
  of item (ii) of this subparagraph.
    (v) 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  item  (iii)  of  this
  sub-paragraph, 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 item
  (iii) 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.
    (vi) In relation to the Option 1 benefits determined pursuant  to  the
  method  of  computation  set  forth  in  this  subparagraph by reason of
  discontinuance of education service by a discontinued member, the phrase
  "time of such member's retirement" as set forth in items (iii) and  (iv)
  of  this  subparagraph,  shall  be  deemed,  for  the  purposes  of this
  subparagraph, to  mean  the  date  of  commencement  of  the  retirement
  allowance of such discontinued member.
    (14)  "Selection  of mode of benefit." The choice made by a member (as
  permitted  by  and  pursuant  to  the  requirements  of  the  rules  and
  regulations  or  applicable 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 the rules and regulations or applicable law, to select  the
  maximum benefit or an option.
    (15)  "Best-of-three-computations method." (i) A method (as prescribed
  by a resolution of the retirement board of the retirement system)  under
  which a retirement allowance (or portion thereof) payable to a member is
  required to be determined for such member so that:
    (A) if such retirement allowance (or portion thereof) does not include
  a  variable  annuity  program  benefit, such retirement allowance is the
  greatest of:
    (1) 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

    (2) 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
    (3)  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
    (B)  if  such  retirement  allowance  (or  portion thereof) includes a
  variable annunity 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 sub-item (A) of this
  item and such variable annuity program benefit (or portion  thereof)  is
  the greatest of:
    (1)  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 forty-four of the rules and regulations; or
    (2)  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
    (3)  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.
    (ii) Where, under  the  provisions  of  any  such  resolution  of  the
  retirement  board, the modified Option 1 pension computation formula (as
  defined in subparagraph thirteen  of  this  paragraph)  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.
    (16) "Person entitled to a recomputation of benefits." Any person  who
  meets all of the conditions stated below in this subparagraph:
    (i) such person, during the period beginning on August first, nineteen
  hundred  eighty-three  and ending on the date next preceding the date of
  enactment  (as  such  termination  date  of   eligibility   for   option
  re-selection  (as  defined  in subparagraph nineteen of this paragraph),
  (A) retired or retires for age  or  service  or  superannuation  or  for
  ordinary  or  accident  disability,  or (B) discontinued or discontinues
  education service  so  as  to  become  a  discontinued  member,  or  (C)
  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
    (ii)  such  person's  retirement  allowance  (or  portion thereof), by
  reason of such retirement or  discontinuance  of  education  service  or
  termination  of  employment,  is required by a resolution adopted by the
  retirement   board   to   be   re-determined   pursuant   to   (A)   the
  best-of-three-computations method (as defined in subparagraph fifteen of
  this  paragraph),  or  (B)  the  gender-neutral  computations method (as
  defined in subparagraph eighteen of this paragraph); and
    (iii) a first payment (if such person,  at  the  time  of  retirement,
  discontinuance  of education service or termination of employment, was a
  Tier I member, Tier II member or Tier III member) on account of  his  or
  her  retirement  allowance  (as such retirement allowance was determined
  prior to the termination date of eligibility  for  option  re-selection)
  was  made  prior  to  such  termination  date  of eligibility for option
  re-selection; 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 prior to the
  termination date of eligibility for option re-selection.
    (17)  "Joint  and survivor option." (i) Any option under which, at the
  time when such option is selected, a choice is made which includes both:
    (A) a benefit payable for the lifetime of the retired or vested member
  by whom or in whose behalf such option is selected; and
    (B) a benefit (1) which consists of an amount equal to or constituting
  a percentage of such retired or vested member's benefit and (2) which is
  payable for the lifetime of a designated  beneficiary  selected  at  the
  time when such option is selected.
    (ii)  In  any  case  where  an  option  described  in item (i) of this
  subparagraph 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.
    (18) "Gender-neutral computations method." A method (as prescribed  by
  a  resolution  of  the  retirement board of the retirement system) under
  which a retirement allowance (or portion thereof) payable to a member is
  required to be determined in the following manner:
    (i) 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
    (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 item (i) of this
  subparagraph, 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 forty-four of  the  rules  and  regulations),
  without   reference   to  any  other  actuarial  mortality  or  interest
  assumption.
    (19) "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
  subparagraph nineteen, it  will  not  be  administratively  feasible  to
  process  benefits  (including conversion from fixed to variable benefits
  and vice versa) under the best-of-three-computations method (as  defined
  in subparagraph fifteen of this paragraph (b)) and/or the gender-neutral
  computations  method  (as  defined  in  subparagraph  eighteen  of  this
  paragraph (b)) 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 option 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  subparagraph  nineteen,  such  extension,  upon the
  enactment of this subparagraph, 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.
    (c)  Notwithstanding  any  provision of subdivision fifteen of section
  two of the rules and regulations or  any  other  law  to  the  contrary,
  commencing   on   August   first,  nineteen  hundred  eighty-three,  and
  continuing thereafter, "regular interest", in the cases of  persons  who
  were  members on July thirty-first, nineteen hundred eighty-three or who
  thereafter  became  or  become  members,  shall  mean,  subject  to  the
  provisions  of  paragraphs  (d), (e), (f), (g), (h), (i), (j), (k), (l),
  (m), (n) and (o) of this subdivision, interest at seven per  centum  per
  annum, compounded annually.
    (d)  (1) (i) Subject to the provisions of items (ii) and (iii) of this
  subparagraph, 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.
    (ii) 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  subparagraph
  thirteen of paragraph (b) of this subdivision), the  actuarial  interest
  assumptions  used in making such determination shall be as prescribed in
  such formula.
    (iii) Where it is provided by 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.
    (2) Notwithstanding that the process of determining whether  a  member
  is  a seven percent member for actuarial equivalent 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 paragraph (c) of this subdivision or in subparagraph one of
  this paragraph 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 other than regular interest, as  prescribed  by  the
  applicable provisions of subdivision fifteen of section two of the rules
  and regulations.
    (e)  The  provisions  of  subparagraph  one  of  paragraph (d) of this
  subdivision shall not apply to any person who, prior  to  August  first,
  nineteen  hundred  eighty-three,  retired  as a member of the retirement
  system for age or service or superannuation or for ordinary or  accident
  disability  and  who was such a retiree immediately prior to such August
  first; provided, however, that where any such retiree  retired  pursuant
  to  subdivision  two  of  section  ten  of  the rules and regulations or
  retired for ordinary or accident disability, and such retiree re-entered
  or re-enters education  service  and  on  or  after  July  thirty-first,
  nineteen  hundred  eighty-three, was or is restored to membership in the

  retirement system, the provisions of such  subparagraph  one,  from  and
  after  such  date  of  restoration  to  membership,  shall apply to such
  restored  member  with  respect  to  determination  of   any   actuarial
  equivalent benefit which is both (1) a benefit to which he or she became
  or  becomes entitled upon his or her subsequent retirement or subsequent
  discontinuance of service so as to  qualify  for  benefits,  and  (2)  a
  benefit  which is not a continuation, without change, of a benefit which
  had previously become payable to him or her by  reason  of  his  or  her
  prior  retirement;  provided  further  that  nothing  contained  in  the
  preceding provisions of this paragraph  shall  be  construed  as  making
  subparagraph one of such paragraph (d) applicable to any such member who
  was  not  or  is  not  a  seven  percent member for actuarial equivalent
  benefit purposes at such time of  subsequent  retirement  or  subsequent
  discontinuance of service.
    (f)  (1)  Subject  to  the  provisions  of  subparagraph  two  of this
  paragraph, the provisions of subparagraph one of paragraph (d)  of  this
  subdivision  shall  not  apply  to any Tier I or Tier II member who, (A)
  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 thirty-two of the rules and regulations (and, in the
  case  of  a  Tier II member, article eleven of the retirement and social
  security law), and (B) was such a discontinued member immediately  prior
  to such August first.
    (2)  If  such  a  discontinued member returned or returns to education
  service and on or after July thirty-first, nineteen hundred eighty-three
  and before payability of his or her retirement allowance as such  member
  began  or  begins,  again became or becomes an active member pursuant to
  the applicable provisions of such section thirty-two, the  provision  of
  subparagraph  one of such paragraph (d) shall apply to him or her on and
  after the date of such resumption of active  membership;  provided  that
  nothing contained in the preceding provisions of this subparagraph shall
  be  construed  as  making  the  provisions  of  subparagraph one of such
  paragraph (d) 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.
    (3) Subject to the provisions of subparagraph four of this  paragraph,
  the  provisions of subparagraph one of paragraph (d) of this subdivision
  shall not apply to any Tier III or Tier IV  member  who,  (i)  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 vested benefit and (ii)
  had such status immediately prior to such August first.
    (4)  If  a member who became entitled to a vested benefit as described
  in  subparagraph  three  of  this  paragraph  returned  or  returns   to
  education-service  and,  on or after July thirty-first, nineteen hundred
  eighty-three and before payability of his or her vested benefit began or
  begins, resumed or resumes status as an active member of the  retirement
  system,  the  provisions  of  subparagraph  one of paragraph (d) of this
  subdivision shall apply to him or her on and  after  the  date  of  such
  resumption of active membership, providing that nothing contained in the
  preceding  provisions  of this subparagraph shall be construed as making
  the provisions of subparagraph one of such paragraph (d)  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  of subsequent discontinuance of service so as to qualify
  for benefits.

    (g)(1) Subject to the provisions of subparagraph two of this paragraph
  and to  the  provisions  of  paragraph  (i)  of  this  subdivision,  the
  selection  of  mode  of  benefit (as defined in subparagraph fourteen of
  paragraph (b) of this subdivision) which, prior to the termination  date
  of  eligibility  for  option  re-selection  (as  defined in subparagraph
  nineteen of paragraph (b) of this subdivision), a person entitled  to  a
  recomputation  of  benefits  (as defined in subparagraph sixteen of such
  paragraph (b)) 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.
    (2)  (i)  Notwithstanding  the  provisions of subparagraph one of this
  paragraph, a person entitled to a recomputation  of  benefits  shall  be
  entitled,  to  the extent and in the manner prescribed in the succeeding
  items of this subparagraph, to change the original selection of mode  of
  benefit  applicable  to  the  retirement  allowance  (or  any  component
  thereof) which became or becomes payable to him  or  her  prior  to  the
  termination date of eligibility for option re-selection.
    (ii)  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 subparagraph seventeen of
  paragraph (b)  of  this  subdivision),  no  change  from  such  original
  selection  of  a  joint  and  survivor  option  may  be  made under this
  subparagraph 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 subparagraph, his or her original  selection
  of such joint and survivor option.
    (iii)  Except  for a change of selection of mode of benefit prohibited
  by item (ii) of this subparagraph, any original  selection  of  mode  of
  benefit  may  be  changed  pursuant  to  this  subparagraph  to  another
  selection of mode of benefit, provided all of the conditions  set  forth
  in items (iv), (vi) and (viii) of this subparagraph are met.
    (iv)  Subject  to  the  provisions  of  items (vii) and (viii) of this
  subparagraph, a person entitled to  a  recomputation  of  benefits  may,
  pursuant to this subparagraph, 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 item (vi) of this subparagraph, 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 original 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.
    (v) 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.
    (vi)  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  items  (iii)  and (iv) of this subparagraph shall be sixty days
  after the date of issuance set forth  in  such  letter  mailed  to  such
  person  pursuant  to  item  (v) of this subparagraph; provided, however,
  that if, pursuant to the request of such person, a later letter  setting
  forth  benefits  information in relation to a new selection of a 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.
    (vii) Upon the filing of a new selection of mode of  benefit  pursuant
  to  this  subparagraph  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.
    (viii) No new selection of mode  of  benefit  filed  pursuant  to  the
  preceding  items  of  this subparagraph 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 age
  or  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
  discontinued sanitation 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.
    (h) Subject to the provisions of paragraph (i) of this subdivision, in
  any  case  where  a  member  of the retirement system who retired before
  August first, nineteen hundred eighty-three pursuant to subdivision  two
  of  section ten of the rules and regulations or for ordinary or accident
  disability re-entered or re-enters  its  membership  on  or  after  July
  thirty-first,   nineteen  hundred  eighty-three,  nothing  contained  in
  paragraphs (c), (d) and (e) of this subdivision shall  be  construed  as
  authorizing  or permitting him or her to change any selection of mode of
  benefit (as defined in subparagraph fourteen of paragraph  (b)  of  this
  subdivision)  made by him or her with respect to any benefit which, upon
  his or her subsequent retirement or discontinuance of service so  as  to
  qualify  for  benefits,  is  payable  to  him  or her as a continuation,
  without change, of a benefit which had previously become payable to  him
  or her by reason of his or her prior retirement.
    (i)  Nothing  contained  in  paragraph  (g)  or  paragraph (h) of this
  subdivision shall be construed as preventing:

    (1) any person (A) who, during the period beginning on  August  first,
  nineteen  hundred eighty-three and ending on the date next preceding the
  date of enactment (as certified pursuant to  section  forty-one  of  the
  legislative  law)  of  this  paragraph  retired  or  retires pursuant to
  subdivision  two  of  section  ten  of  the rules and regulations or for
  ordinary or accident disability and (B) who is subject to such paragraph
  (g) and  (C)  who  on  or  after  July  thirty-first,  nineteen  hundred
  eighty-three, re-entered or re-enters education service and again became
  or becomes a member of the retirement system; or
    (2)  any re-entered member referred to in such paragraph (h); upon his
  or her subsequent retirement, from exercising any right, which any other
  applicable law or any provision of the rules and regulations  grants  to
  him  or  her  under  such  circumstances, to make a selection of mode of
  benefit (as defined in subparagraph fourteen of paragraph  (b)  of  this
  subdivision).
    (j)   Notwithstanding   any   provisions  of  paragraph  (c)  of  this
  subdivision prescribing a rate of regular interest of seven  per  centum
  per  annum, compounded annually, for specified members described in such
  paragraph, 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.
    (k) (1) Where any variable annuity  program  benefit  (as  defined  in
  subparagraph  twelve  of  paragraph (b) of this subdivision) which is an
  actuarial equivalent benefit (as defined in  subparagraph  two  of  such
  paragraph (b)) is payable to any person by reason of:
    (i) the retirement of a member for age or service or superannuation or
  for  ordinary  or accident disability, where such retirement occurred on
  or after  August  first,  nineteen  hundred  eighty-three  or  hereafter
  occurs; or
    (ii)  discontinuance  of  service  or  termination  of employment of a
  member, where such discontinuance or termination occurred or  occurs  on
  or  after  such  August  first under such circumstances that such member
  became or becomes (A) a discontinued member possessing a vested right to
  receive a retirement allowance pursuant to  section  thirty-two  of  the
  rules  and  regulations  (and,  in the case of a Tier II member, article
  eleven of the retirement and social security law)  or  (B)  a  Tier  III
  member  entitled  to  a vested benefit or a Tier IV member entitled to a
  vested benefit; or
    (iii) the death, on or after such August first, of a member:
  the rate of interest used to determine  such  variable  annuity  program
  benefit  shall be that prescribed by section forty-four of the rules and
  regulations.
    (2) The retirement board  may  by  resolution  direct  that  different
  computations,  based  on  different  mortality  tables, shall be used to
  determine separate  portions  of  a  variable  annuity  program  benefit
  payable as described in subparagraph one of this paragraph.
    (1)  In  any  case  where  any  provision  of this subdivision has the
  effect,  in  relation  to  any  person,  of   amending,   modifying   or
  supplementing  any provision of the rules and regulations referred to in
  subdivision f of section  thirty-three  of  the  rules  and  regulations
  (relating to the tax-deferred annuity program of the retirement system),
  such  provisions  of  the  rules  and  regulations,  for  the purpose of
  applying such subdivision f to such person, shall be deemed  to  include
  such amendment, modification or supplementation.
    (m)  Modified Option 1 pension computation formula. (1) The retirement
  board may by resolution direct that  under  such  circumstances  as  are
  designated  in such resolution, benefits under Option 1 which consist of

  or are derived from the pension component of a retirement allowance  and
  which are payable to or on account of members who:
    (i)  became  members  prior  to  the  date  of enactment (as certified
  pursuant  to  section  forty-one  of  the  legislative  law)   of   this
  subdivision; and
    (ii)  retired  or  retire  on  or after August first, nineteen hundred
  eighty-three, for age or service or superannuation or  for  ordinary  or
  accident  disability,  or on or after such August first, discontinued or
  discontinue service so as  to  become  discontinued  members;  shall  be
  determined under the modified Option 1 pension computation formula.
    (2)  If the retirement board makes a direction for use of such formula
  pursuant to the provisions of subparagraph one of this paragraph, it may
  also direct by resolution:
    (i) that any member who is subject to the modified  Option  1  pension
  computation  formula may elect, at such time and in accordance with such
  procedures as are prescribed in such resolution, that such formula shall
  not apply to such member and that the initial reserve determined for the
  purpose of providing the benefits  payable  by  reason  of  his  or  her
  selection  of  Option 1 and the pension component of his or her Option 1
  retirement allowance shall be determined on the basis of  gender-neutral
  mortality  tables  and  regular  interest of seven per centum per annum,
  compounded annually; and
    (ii) that the benefit payable, upon the death  of  the  member  making
  such  election,  to  his  or  her  beneficiary  or  estate  shall be the
  difference between such Option 1 initial reserve and the  total  of  the
  payments of such pension component received by or payable to such member
  for the period prior to his or her death; and
    (iii)  that  where any member subject to the modified Option 1 pension
  computation formula retired before the effective date of the  retirement
  board resolution adopted pursuant to subparagraph one of this paragraph,
  and  where  the  first payment on account of the retirement allowance of
  any discontinued member subject to such  formula  was  made  before  the
  effective  date of such resolution, such retiree or discontinued member,
  within such period of time after such effective date and  in  accordance
  with  such procedures as are prescibed in such resolution, may elect the
  method of Option 1 benefit determination set forth in items (i) and (ii)
  of this subparagraph.
    (3) In any case where, pursuant to  board  resolution,  a  benefit  is
  required   to   be  determined  under  the  modified  Option  1  pension
  computation formula and  the  determination  of  such  benefit  is  also
  required  by  a  board  resolution  adopted  pursuant  to  item (iii) of
  subparagraph one  of  paragraph  (d)  of  this  subdivision  to  reflect
  different computations of separate portions of such benefits the methods
  of  computation  under the modified Option 1 pension computation formula
  shall be appropriately adjusted so as to give effect to  the  provisions
  of such resolution adopted pursuant to such item (iii).
    (n)  Any reference in this subdivision to retirement for service shall
  be deemed, for the purpose of this subdivision,  to  include  retirement
  pursuant  to  the  provisions  of  subdivision two of section ten of the
  rules and regulations.
    (o) 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 subdivision shall be the rate
  of regular interest which was applicable, under the  provisions  of  the
  rules  and regulations 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 paragraphs of this subdivision 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.
    (p) (1) In any case where:
    (i)  a  conversion of a fixed benefit or portion thereof to a variable
  benefit is elected pursuant  to  section  forty-two  of  the  rules  and
  regulations; and
    (ii) pursuant to any provision of law and/or the rules and regulations
  and/or  any  resolution  of the retirement board adopted thereunder, the
  rate of regular interest and/or the mortality tables which were required
  to be used in the actuarial determination of such  fixed  benefit  being
  converted,  are  different  from  the  rate  of  regular interest and/or
  mortality tables would have been required to be used to determine a like
  variable benefit as of the same date (hereinafter  referred  to  as  the
  "calculation  date")  as  of which such fixed benefit was required to be
  determined as an actuarial equivalent; the composition of  the  variable
  portion  of  each instalment of benefit for each month of the conversion
  period shall be determined in the manner prescribed in subparagraph  two
  of this paragraph (p).
    (2)  The  amount,  in  units,  of  the  variable  portion for any such
  conversion month to which subparagraph one  of  this  paragraph  applies
  shall  be  equal to the number of units in the previous month's variable
  portion, if  any,  plus  a  number  of  units  which  is  the  actuarial
  equivalent,  as  of the calculation date, of the fixed portion converted
  each month. Such actuarial equivalent units for each such month shall be
  determined on the basis of the unit value for such month, in  accordance
  with  a  scientific formula which recognizes the difference in the rates
  of regular interest and/or mortality tables referred to in  subparagraph
  one of this paragraph.
    (3) In any case where:
    (i)  a conversion of a variable benefit is elected pursuant to section
  forty-two of the rules and regulations; and
    (ii) pursuant to any provision of law and/or the rules and regulations
  and/or any resolution of the retirement board  adopted  thereunder,  the
  rate  of regular interest and/or mortality tables which were required to
  be used in the actuarial determination of such  variable  benefit  being
  converted  are  different  from  the  rate  of  regular  interest and/or
  mortality tables which would have been required to be used to  determine
  a like fixed benefit as of the same date (hereinafter referred to as the
  "calculation date") as of which such variable benefit was required to be
  determined  as  an  actuarial  equilvalent; the composition of the fixed
  portion of each instalment of benefit for each month of  the  conversion
  period shall be determined in the manner prescribed in subparagraph four
  of this paragraph.
    (4)  The  amount of the fixed portion for any such conversion month to
  which subparagraph three of this paragraph applies shall be equal to the
  previous month's fixed portion, if any, plus a fixed amount which is the
  actuarial equivalent, as of the calculation date, of the number of units
  converted each month. Such actuarial equivalent fixed  amount  for  each
  such  month  shall be determined on the basis of the unit value for such
  month, in accordance with a  scientific  formula  which  recognizes  the
  difference  in  the  rates  of  regular interest and/or mortality tables
  referred to in subparagraph three of this paragraph.
    (q) Notwithstanding any other provision of  this  section,  an  option
  selection   made   pursuant  to  this  subdivision  and  the  rules  and
  regulations governing such  choice  previously  filed  by  a  member  or
  retired  member  may  be changed no later than thirty days following the

  date of payability of his or her retirement allowance. A retired  member
  who  has  been  retired  for  disability  may change an option selection
  previously filed no later than (1) thirty days  following  the  date  on
  which  such  member's application for disability retirement was approved
  by the retirement board or (2) thirty days following the date  on  which
  such retiree was retired for disability, whichever is later.
    18.  (a)  The following terms, as used in this subdivision, shall have
  the following meanings, unless a different meaning is  plainly  required
  by the context:
    (1) "Board of education". The board of education of a city.
    (2)  "Board  of  education  retirement system". The board of education
  retirement system established pursuant to the provisions of this section
  in a city.
    (3) "City". A city having a population of one million or more.
    (4) "Rules  and  regulations".  The  rules  and  regulations  for  the
  government,  management and control of the board of education retirement
  system adopted pursuant to the provisions of this section.
    (5) "Provisional employee".  Any  person  employed  by  the  board  of
  education  on the basis of a provisional appointment pursuant to section
  sixty-five of the civil service law.
    (6) "Education service". Service as a paid official or employee of the
  board of education or the New York city school  construction  authority,
  and  allowable  as provided in section four of the rules and regulations
  or, in the case of a tier II member  or  a  tier  IV  member,  allowable
  pursuant  to the provisions which respectively govern the service credit
  of such a member of the board of education retirement system.
    (7) "Former provisional employee". Any person permanently employed  by
  the board of education:
    (i)  who  is a transferred contributor in the New York city employees'
  retirement  system  pursuant  to  section  B3-57.0  or  13-188  of   the
  administrative code of the city of New York; and
    (ii)  who  first  acquired  membership in the New York city employees'
  retirement system as a provisional employee of the board  of  education;
  and
    (iii)  whose  last  period  of  permanent  employment  by the board of
  education was immediately preceded by his employment  by  the  board  of
  education as a provisional employee.
    (8)  "Tier  II  member". A member of a public retirement system who is
  subject to the provisions of article eleven of the retirement and social
  security law.
    (9) "Tier IV member". A member of a public retirement  system  who  is
  subject  to  the  provisions  of  article  fifteen of the retirement and
  social security law.
    (b) (1) Notwithstanding the provisions of paragraph (a) of subdivision
  one of this section or any provision of the rules and regulations or any
  other provision of law to the  contrary,  membership  in  the  board  of
  education  retirement  system  shall include any provisional employee in
  education service who elects to become a member in the manner prescribed
  by the applicable provisions of subparagraph two or  subparagraph  three
  of this paragraph.
    (2)  Any such provisional employee who is not a member of the New York
  city employees' retirement system at the time he or she elects to become
  a member of the board of education retirement system may  make  such  an
  election  of membership by filing with the board of education retirement
  system a duly executed and acknowledged application for membership.
    (3) Any such provisional employee who is a member of the New York city
  employees' retirement system at the time he or she elects  to  become  a
  member  of  the  board  of  education retirement system may make such an

  election of membership  by  filing  simultaneously  with  the  board  of
  education retirement system a duly executed and acknowledged application
  for  membership and a duly executed and acknowledged request that his or
  her  membership  and  service  credit  in  the  New York city employees'
  retirement system be transferred to the board  of  education  retirement
  system.
    (c) (1) Notwithstanding the provisions of section B3-57.0 or 13-188 of
  the  administrative code of the city of New York or any provision of the
  rules and regulations or any other provision of  law  to  the  contrary,
  membership in the board of education retirement system shall include any
  former  provisional  employee  who, while employed in education service,
  elects to become a member in the manner prescribed by  subparagraph  two
  of this paragraph.
    (2)  Any such former provisional employee may make such an election of
  membership  by  filing  simultaneously  with  the  board  of   education
  retirement  system,  within  six  months after the date of enactment (as
  certified pursuant to section forty-one of the legislative law) of  this
  subdivision, a duly executed and acknowledged application for membership
  and  a duly executed and acknowledged request that his or her membership
  and service credit in the New York city employees' retirement system  be
  transferred to the board of education retirement system.
    (d)  Any  election  of membership in the board of education retirement
  system  made  pursuant  to  paragraph  (b)  or  paragraph  (c)  of  this
  subdivision shall be irrevocable.
    (e)  (1) Upon the filing of a request for a transfer with the board of
  education retirement system as provided for  in  subparagraph  three  of
  paragraph  (b)  of this subdivision or subparagraph two of paragraph (c)
  of this subdivision, the board of education retirement system shall file
  such request for a transfer with the New York city employees' retirement
  system. Upon the filing of such request for a transfer with the New York
  city employees' retirement system, such retirement system shall  make  a
  transfer  of  reserves  and  accumulated  contributions  to the board of
  education  retirement  system  in  the  manner   required   by   section
  forty-three of the retirement and social security law.
    (2)  Nothing contained in the preceding provisions of this subdivision
  or of any other law shall be construed (i) as imposing  any  restriction
  under the third sentence of subdivision d of such section forty-three on
  the  determination  of  the salary base for benefit computation purposes
  with respect to any person  whose  membership  and  service  credit  are
  transferred  to the board of education retirement system pursuant to the
  applicable preceding provisions of this subdivision, or (ii)  as  making
  the  last  sentence  of  such  subdivision  d  applicable  to  any  such
  transferee.
    (3) Any employee of the board of education of the city of New York who
  is a member of the New York city employees' retirement system may  elect
  to  transfer  membership  to  the  New  York  city  board  of  education
  retirement system. Any election pursuant to this section shall  be  made
  no  later than the one hundred eightieth day next succeeding the date on
  which the provisions hereof become effective by filing a written  notice
  thereof  with  the  administrative  head of the New York city employees'
  retirement system, and the New York city board of  education  retirement
  system,  and,  once  made and filed, such election shall be irrevocable.
  Where an employee of the board of education becomes a member of the  New
  York city board of education retirement system pursuant to this section,
  the  New York city employees' retirement system shall make a transfer of
  reserves, contributions, and credits to  the  New  York  city  board  of
  education   retirement   system   in  the  manner  required  by  section
  forty-three of the retirement and social security law.

    (f) Notwithstanding the provisions of paragraph (a) of subdivision one
  of this section or any provision of the rules  and  regulations  or  any
  other  provision  of  law  to  the  contrary, membership in the board of
  education retirement system shall include any person employed by the New
  York  city  police  department in the title of school crossing guard who
  becomes  a  member  in  the  manner  prescribed  by  the  provisions  of
  subdivision g of section 13-638.4 of the administrative code of the city
  of New York.
    (g)(1)  For purposes of this paragraph, the terms "career pension plan
  member", "career pension plan position" and  "fifty-five-year-increased-
  service-fraction  shall  have  the  meanings  set  forth  in  paragraphs
  twenty-eight, twenty-nine and thirty-one, respectively, of  section  two
  of the rules and regulations.
    (2)  For purposes of this paragraph, the term "fractional plan member"
  shall mean a member of the board of education retirement system  holding
  a  career  pension plan position who is not a career pension plan member
  or a fifty-five-year-increased-service-fraction member, and who  is  not
  subject  to the provisions of article eleven, fourteen or fifteen of the
  retirement and social security law.
    (3) Notwithstanding  any  provision  of  this  section  or  any  other
  provision  of  law  to  the  contrary, effective October first, nineteen
  hundred ninety-three, the rules and regulations shall be  deemed  to  be
  amended  so  as  to provide that any fractional plan member in education
  service on such date, who holds a career pension plan position  on  such
  date,  shall, on such date, be deemed to have elected to become a career
  pension plan member under the same terms and conditions,  and  with  the
  same  rights,  benefits, privileges and obligations as are applicable to
  similarly situated members of the New York  city  employees'  retirement
  system,   as  provided  in  subdivision  m  of  section  13-162  of  the
  administrative code of the city of New York, as enacted by the act which
  added this paragraph.
    (h) (1)  For  the  purposes  of  this  paragraph,  including,  without
  limitation,  the use, pursuant to subparagraph two of this paragraph, of
  the provisions of paragraphs one, two and  three  of  subdivision  c  of
  section  13-162  of  the administrative code of the city of New York and
  subparagraph (a) of paragraph four of such subdivision  (as  amended  by
  the   provisions  of  the  chapter  of  the  laws  of  nineteen  hundred
  ninety-five which added this paragraph)  to  prescribe  certain  of  the
  additional  rights,  privileges,  benefits and obligations hereunder, of
  career pension plan members and increased-service-fraction members,  the
  following items of this subparagraph one shall apply:
    (i)  the  terms  "career pension plan",  "career pension plan member",
  "career pension plan position" and
  "fifty-five-year-increased-service-fraction-member"   shall   have   the
  meanings set forth in paragraphs twenty-seven, twenty-eight, twenty-nine
  and   thirty-one,   respectively,  of  section  two  of  the  rules  and
  regulations;
    (ii) the term "city-service", as used in the provisions of subdivision
  c of such section 13-162 referred to in the opening  paragraph  of  this
  paragraph one shall be deemed to mean "education-service", as defined in
  subparagraph six of paragraph (a) of this subdivision;
    (iii)  the  term  "career pension plan qualifying service", as used in
  such  provisions  of  subdivision  c  of  section  13-162,  shall   mean
  "creditable  career  pension  plan  service"  as  defined  in  paragraph
  thirty-eight of section two of the rules and regulations;
    (iv) the pension referred to in  item  (ii)  of  subparagraph  (a)  of
  paragraph  four  of such subdivision c of section 13-162 shall be deemed

  to mean the pension referred to in subdivision seven of  section  twelve
  of the rules and regulations; and
    (v)   the   provisions  of  subparagraph  (b)  of  paragraph  four  of
  subdivision c of such section 13-162 shall  be  deemed  inapplicable  to
  career pension   plan   members  and  fifty-five-year-increased-service-
  fraction are subject to the provisions of this paragraph.
    (2) Notwithstanding any provision of the rules and regulations or this
  section or any other provision of law to the  contrary,  the  rules  and
  regulations  shall  be deemed to be amended so as to provide that on and
  after the effective date of this paragraph:
    (i) each  career  pension  plan  member,  subject  to  the  succeeding
  subparagraphs  of this paragraph, shall have the same additional rights,
  privileges,  benefits  and  obligations  and  be  subject  to  the  same
  additional  terms  and conditions with respect to withdrawing his or her
  election to be a career pension plan  member  as  are  provided  for  in
  relation  to  a similarly situated career pension plan member of the New
  York city employees' retirement system by the chapter  of  the  laws  of
  nineteen hundred ninety-five which added this paragraph; and
    (ii)  each  fifty-five-year-increased-service-fraction member, subject
  to the succeeding subparagraphs of this paragraph, shall have  the  same
  additional  rights,  privileges, benefits and obligations and be subject
  to the same additional terms and conditions with respect to electing  to
  be  a  career  pension  plan member as are provided for in relation to a
  similarly situated fifty-five-year-increased-service-fraction member  of
  the  New  York  city  employees' retirement system by the chapter of the
  laws of nineteen hundred ninety-five which added this paragraph.
    (3) In any case where  a  member  effects  a  change  in  his  or  her
  retirement   plan  pursuant  to  the  preceding  subparagraphs  of  this
  paragraph, his or her normal rate of member contribution as a member  of
  such  changed plan shall be fixed pursuant to the appropriate provisions
  of  the  rules  and  regulations  with  respect  to  rates   of   member
  contribution of members of such changed plan.
    (4)  Nothing  contained in subparagraph two of this paragraph shall be
  construed as diminishing or impairing:
    (i) any right granted  to  any  career  pension  plan  member  by  the
  provisions  of  paragraph  ten of subdivision m of section 13-162 of the
  administrative code of the city of New York,  where  the  provisions  of
  such  paragraph  ten are made applicable to such member by paragraph (g)
  of this subdivision; and
    (ii) any right granted to a career pension plan member by subparagraph
  (a) of paragraph one of subdivision c of section thirty of the rules and
  regulations to withdraw from the career pension plan.
    (5) Notwithstanding any provision of the rules and regulations or this
  section or any other provision of law to the  contrary,  the  rules  and
  regulations shall be deemed to be amended so as to provide that:
    (i)  subject to the provisions of item (ii) of this subparagraph five,
  in any case where, on or after the effective date of this  paragraph,  a
  fifty-five-year-increased-service-fraction  member dies in service while
  such a member, after completing  twenty  or  more  years  of  creditable
  career pension plan service, such member shall be deemed to have died as
  a  career  pension  plan member, if status as such a career pension plan
  member at the time of his or her death would result in a benefit  larger
  than  the  benefit  which  would  be payable if such member died while a
  fifty-five-year-increased-service-fraction member; and
    (ii) in any case where a member  referred  to  in  item  (i)  of  this
  subparagraph  five  is a Tier II member at the time of his or her death,
  any change in the plan membership of such member pursuant to  such  item

  (i)  shall  not  change,  alter  or  affect the applicability of article
  eleven of the retirement and social security law to such member.
    (i) A retired member of the board of education retirement system shall
  have  the  right,  at any time after the retired member's retirement, to
  execute  and  file  a  dues  deduction  authorization  card  with   such
  retirement  system  authorizing  the deduction from the retired member's
  retirement allowance of membership dues and the  payment  thereof  to  a
  retiree  organization of which the retired member certifies he or she is
  then a member and which the retired member certifies is then  affiliated
  with  either  an  employee  organization  certified or recognized as the
  collective bargaining representative of all employees in the negotiating
  unit of which the retired  member  was  a  part  prior  to  his  or  her
  retirement   or  an  employee  organization  with  which  such  employee
  organization is then affiliated. The comptroller shall thereafter deduct
  from the retirement allowance of  such  retired  member  the  amount  of
  membership  dues  required  to be paid by such retired member, and shall
  transmit  the  sum  so  deducted  to  said  retiree  organization.  Such
  authorization  shall continue in effect until revoked in writing by such
  retired member.
    (j) Notwithstanding any other provision of  law  or  rule,  a  retired
  member  of  the  board of education retirement system of the city of New
  York shall be permitted to repay the outstanding balance of a loan taken
  pursuant to the rules and regulations of the retirement  system  at  any
  time.  Benefits  payable  after  the  repayment of the loan shall not be
  subject to any actuarial reduction imposed as a result of an outstanding
  balance.
    ** 19. Pick up of Tier I and  Tier  II  member  contributions  by  the
  employer. (a) For the purposes of this subdivision:
    (1)  The  terms  "board  of  education,"  "rules  and regulations" and
  "retirement system" shall have the meanings set forth  in  subparagraphs
  one,  three  and  four,  respectively,  of  paragraph (a) of subdivision
  sixteen of this section; and
    (2) the terms "member," "Tier I member" and  "Tier  II  member"  shall
  have  the  meanings  set  forth  in  subparagraphs  one,  four and five,
  respectively, of subparagraph  (b)  of  subdivision  seventeen  of  this
  section.
    (b)  the  following terms, as used in this subdivision, shall have the
  following meanings, unless a different meaning is  plainly  required  by
  the context:
    (1)  "Basic  rate  of contribution as a Tier I or Tier II member." (i)
  Subject to the provisions of clauses (ii) and (iii) of this subparagraph
  one, the term "basic rate of contribution as a Tier I or Tier II member"
  shall mean the proportion of the  earnable  compensation  of  a  Tier  I
  member  or Tier II member required by the provisions of subparagraph (i)
  of paragraph f of subdivision one of section  eight  of  the  rules  and
  regulations  and  any  other  applicable  provisions  of  the  rules and
  regulations or law to be deducted from the personal compensation of such
  member as his or her member contributions, exclusive of any increase  in
  such contributions resulting from an election by such member pursuant to
  law 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).
    (ii)  In  any  case  where it is provided in the rules and regulations
  that the deduction from a member's compensation  on  account  of  member
  contributions  required  to be made by a Tier I member or Tier II member

  shall not be in excess of  fifteen  per  centum  unless  the  member  so
  elects,  and  such  member  makes  such election, any per centum of such
  deduction in excess of fifteen per centum with respect  to  such  member
  shall  not  be included in such member's basic rate of contribution as a
  Tier I or Tier II member.
    (iii) In any case where a Tier I member or Tier II  member  who  is  a
  fifty-five-year-increase-service-fraction    member   (as   defined   in
  subdivision thirty-one of section two of the rules and regulations)  has
  elected or elects, pursuant to paragraph g of subdivision one of section
  eight  of  the  rules  and  regulations, to contribute to the retirement
  system at a rate one per centum less than such member's normal  rate  of
  contribution,  such  member's  basic rate of contribution as a Tier I or
  Tier II member, during any period wherein such election  is  in  effect,
  shall  be  one  per  centum  less  than  such  member's  normal  rate of
  contribution as a fifty-five-year-increased-service-fraction member.  In
  any  case  where  any such member elects pursuant to such paragraph g to
  discontinue such reduction, such election to discontinue  shall  not  be
  deemed,  for  the purposes of subparagraph four of this paragraph (b) to
  be  an  election  to  increase  member  contributions  above  the  level
  prescribed  by  the  member's  basic rate of contribution as a Tier I or
  Tier II member, and upon such discontinuance, such member's  basic  rate
  of contribution as a Tier I or Tier II member shall be his or her normal
  rate  of  contribution  as  a fifty-five-year-increased-service-fraction
  member.
    (2) "Contributing Tier I or Tier  II  member."  With  respect  to  any
  payroll  period  as  to  which  the status of 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 Tier I member or Tier II member who is not
  required  to contribute during such payroll period because of his or her
  then  currently  effective  election,  pursuant  to  subparagraph  f  of
  paragraph  one  of  section  eight  of the rules and regulations, not to
  contribute.
    (3) "Employer responsible for pick up." The public employer by which a
  Tier I member or Tier II member is employed.
    (4) "Tier I or Tier II member contributions eligible for  pick  up  by
  the employer." (i) With respect to any payroll period for a contributing
  Tier  I  or  Tier  II  member  (as  defined  in subparagraph two of this
  paragraph (b)), the amount of member contributions which, in the absence
  of a pick  up  program  applicable  to  such  member  pursuant  to  this
  subdivision, 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 subparagraph  one  of  this  paragraph),  from  the  personal
  compensation  of  such  member for such payroll period, after (A) 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
  (B)  excluding  any  deductions  from  such compensation (or redeposits,
  restorations or payments) on account  of  (1)  loans  or  withdrawal  of
  excess contributions or (2) any election by any such member, pursuant to
  any  applicable  provision of the rules and regulations, 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 (3) any
  other cause not attributable to the member's basis rate of  contribution
  as  a  Tier I or Tier II member after reduction in such rate, if any, as
  described in item (A) of this clause (i).
    (ii) If no deductions on account of any such member's  basic  rate  of
  contribution as a Tier I or Tier II member are required by the rules and

  regulations to be made from the personal compensation of such member for
  any payroll period, such member shall not have, for such payroll period,
  any  Tier  I or Tier II member contributions eligible for pick up by the
  employer.  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 personal
  compensation paid to such member for such payroll period by his  or  her
  public  employer.  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 personal compensation by his or her public employer.
    (5) "Starting date for pickup." The  first  day  of  the  first  whole
  payroll  period  commencing after the date which is sixty days after the
  internal  revenue  service  shall  have  issued  a  ruling  that  member
  contributions  picked up pursuant to this subdivision are not includible
  as gross income for federal income tax  purposes  until  distributed  or
  made available.
    (c) Notwithstanding any other provision of the law to the contrary, on
  and  after  the  starting date for pick up, the employer responsible for
  pick up shall pick up and pay into the annuity savings fund (subject  to
  the   provisions   of   subparagraph  four  of  paragraph  (f)  of  this
  subdivision) the Tier I or Tier II  member  contributions  eligible  for
  pick  up  by  the  employer  which each Tier I member and Tier II member
  would otherwise be required to make on and after such starting date.
    (c-1) Notwithstanding any other provision of law to the contrary,  the
  employer responsible for pick up shall, in the case of a member who is a
  participant  in  the  age fifty-five improved benefit retirement program
  (as defined in paragraph ten of subdivision a of  section  four  hundred
  forty-five-d of the retirement and social security law), pick up and pay
  to  the  retirement  system  all  additional  member contributions which
  otherwise  would  be  required  to  be  deducted  from   such   member's
  compensation  pursuant  to  paragraph  three  of  subdivision  d of such
  section four hundred forty-five-d, and shall effect such pick up on each
  and every payroll of such participant for each and every payroll  period
  with  respect to which such paragraph three otherwise would require such
  deductions.
    (c-2) Notwithstanding any other provision of law to the contrary,  the
  employer responsible for pick up shall, in the case of a member who is a
  participant  in  the  age  fifty-five  retirement program (as defined in
  paragraph ten of subdivision a of section four hundred  forty-five-i  of
  the  retirement  and  social  security  law),  pick  up  and  pay to the
  retirement system all additional member  contributions  which  otherwise
  would  be  required  to  be  deducted  from  such  member's compensation
  pursuant to paragraph three of subdivision d  of  section  four  hundred
  forty-five-i of the retirement and social security law, and shall effect
  such  pick up on each and every payroll of such participant for each and
  every  payroll  period  with  respect  to  which  such  paragraph  three
  otherwise would require such deductions.
    (d)  An  amount  equal  to  the amount of such picked up contributions
  shall be deducted by the employer  responsible  for  pick  up  from  the
  personal  compensation  of such member (as such compensation would be in
  the absence of a pick up program applicable to him or her hereunder) and
  shall not be paid to such member. Such deduction shall  be  effected  by
  means  of  subtraction  from such member's current personal compensation
  (as  so  defined),  or  offset  against  future  pay  increases,  or   a
  combination of such methods.
    (e) (1) * The member contributions and additional member contributions
  picked  up pursuant to this subdivision for any Tier I member or Tier II

  member shall be paid by the employer responsible for pick up in lieu  of
  an  equal  amount  of  the  member  contributions  and additional member
  contributions otherwise required to be paid by  such  member  under  the
  provisions  of  the  rules  and regulations or the retirement and social
  security law, and  shall  be  deemed  to  be  and  treated  as  employer
  contributions  pursuant to subsection h of section four hundred fourteen
  of the  United  States  internal  revenue  code,  as  amended,  for  the
  purposes,  under  federal law, for which such subsection h so classifies
  such picked up contributions. Subject to the provisions of paragraph (d)
  of this subdivision, for all other purposes, including but  not  limited
  to:
    * NB  Effective until notice of ruling by Internal Revenue Service per
  ch. 627/2007 §22
    * The member contributions and additional member contributions  picked
  up  pursuant to this subdivision for any Tier I member or Tier II member
  shall be paid by the employer responsible for pick  up  in  lieu  of  an
  equal   amount   of  the  member  contributions  and  additional  member
  contributions otherwise required to be paid by  such  member  under  the
  provisions  of  the  rules  and regulations or the retirement and social
  security law, including any member contributions required to be made for
  the purchase of credit for  previous  service  or  credit  for  military
  service  pursuant  to  subparagraph  three  of this paragraph, 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  subdivision  four  of  section one thousand of the
  retirement and social security law,  and  shall  be  deemed  to  be  and
  treated  as  employer  contributions pursuant to subsection h of section
  four hundred fourteen of the United States  internal  revenue  code,  as
  amended,  for the purposes, under federal law, for which such subsection
  h so classifies such picked up contributions. Subject to the  provisions
  of  paragraph (d) of this subdivision, for all other purposes, including
  but not limited to:
    * NB Takes effect upon notice of ruling by  Internal  Revenue  Service
  per ch. 627/2007 §22
    (i)  the  obligation of such member to pay New York state and New York
  city income and/or wages or earnings taxes and the withholding  of  such
  taxes; and
    (ii)  the  determination of the amount of such member's Tier I or Tier
  II member  contributions  eligible  for  pick  up  by  the  employer  or
  additional  member  contributions  required  to be picked up pursuant to
  paragraph c-one or c-two of this subdivision; and
    (iii) the determination of the amount of any retirement  allowance  or
  other  retirement system benefit payable to or on account of such member
  or any other retirement system  right,  benefit  or  privilege  of  such
  member;
  the   amount   of   the   member  contributions  and  additional  member
  contributions picked up pursuant to this subdivision shall be deemed  to
  be  a part of the employee personal compensation of such member and such
  member's gross personal compensation (as it would be in the absence of a
  pick up program applicable to him or her hereunder) shall not be  deemed
  to be changed by such member's participation in such program.
    (2)  Nothing contained in subparagraph one of this paragraph (e) shall
  be construed as superseding  the  provisions  of  section  four  hundred
  thirty-one  of  the  retirement  and  social security law or any similar
  provision of law which limits the salary base for  computing  retirement
  benefits payable by a public retirement system.
    * (3) Employer pick-up of contributions in respect of previous service
  or  military  service.  Notwithstanding  any other provision of law, any

  member eligible to purchase credit for previous service  with  a  public
  employer  pursuant  to  this  section or to purchase credit for military
  service pursuant to article twenty of the retirement and social security
  law,  may  elect  to  purchase any or all of such service by executing a
  periodic payroll deduction  agreement  where  and  to  the  extent  such
  elections  are permitted by the retirement system by rule or regulation.
  Such agreement shall  set  forth  the  amount  of  previous  service  or
  military  service  being  purchased,  the  estimated  total cost of such
  service credit, and the number of payroll periods in which such periodic
  payments shall be made. Such agreement shall be irrevocable,  shall  not
  be  subject to amendment or modification in any manner, and shall expire
  only  upon  completion   of   payroll   deductions   required   therein.
  Notwithstanding  the  foregoing,  any member who has entered into such a
  payroll deduction agreement and who terminates employment prior  to  the
  completion  of  the payments required therein shall be credited with any
  service as to which  such  member  shall  have  paid  the  contributions
  required under the terms of the agreement.
    * NB  Takes  effect  upon notice of ruling by Internal Revenue Service
  per ch. 627/2007 §22
    (f) (1) For the purpose of determining the retirement  system  rights,
  benefits  and  privileges  of  any Tier I member or Tier II member whose
  Tier I or Tier II member contributions  eligible  for  pick  up  by  the
  employer  are  picked  up  pursuant  to  this subdivision (including the
  procurement of  loans  by  any  such  member),  such  picked  up  member
  contributions,  subject  to  the provisions of subparagraph four of this
  paragraph (f),  shall  be  deemed  to  be  and  treated  (i)  as  member
  contributions  made by such member pursuant to law and (ii) as a part of
  such member's accumulated deductions.
    (2) For the purpose  of  determining  the  retirement  system  rights,
  benefits  and  privileges  of any member who is a participant in the age
  fifty-five improved benefit retirement program (as defined in  paragraph
  ten  of  subdivision  a  of  section  four  hundred  forty-five-d of the
  retirement and social security law), the additional member contributions
  of such participant picked up pursuant  to  paragraph  (c-one)  of  this
  subdivision shall be deemed to be and treated as a part of such member's
  additional member contributions under subdivision d of such section four
  hundred fifty-five-d.
    (2-a)  For  the  purpose  of determining the retirement system rights,
  benefits and privileges of any member who is a participant  in  the  age
  fifty-five   retirement   program   (as  defined  in  paragraph  ten  of
  subdivision a of section four hundred forty-five-i of the retirement and
  social security  law),  the  additional  member  contributions  of  such
  participant  picked  up  pursuant to paragraph c-two of this subdivision
  shall be deemed to be and treated as a part of such member's  additional
  member  contributions  under  subdivision  d  of  section  four  hundred
  forty-five-i of the retirement and social security law.
    (3) Interest on contributions picked up for any Tier I member or  Tier
  II  member  pursuant  to  this subdivision (other than additional member
  contributions picked up pursuant to paragraph c-one  or  c-two  of  this
  subdivision)  shall  accrue in favor of the member and be payable to the
  retirement system at the same rate, for the same time  periods,  in  the
  same  manner  and  under  the  same  circumstances  as interest would be
  required to accrue in  favor  of  the  member  and  be  payable  to  the
  retirement system on such contributions if they were made by such member
  in  the absence of a pick up program applicable to such member under the
  provisions of this section.
    (4) Where member contributions of any Tier I member or Tier II  member
  are  picked  up  and paid into the annuity savings fund pursuant to this

  section, such picked up contributions shall be credited  to  a  separate
  account  within  the  individual account of such member in such fund, so
  that a separate record of the amount of such picked up contributions  is
  maintained.
    (5)  For  the  purpose  of  determining  the retirement system rights,
  benefits and privileges of any Tier I member or Tier II member who is  a
  participant  in a variable annuity program of the retirement system, his
  or her picked up member contributions shall, to the extent  and  in  the
  proportions  appropriate  pursuant to his or her election to participate
  in such program, be deemed to be and treated as a part  of  his  or  her
  accumulated  deductions  and/or  credits  in  his  or her account in the
  variable annuity savings fund. A separate record shall be  kept  showing
  any  such  variable annuity savings fund account credits attributable to
  any such picked up contributions.
    (6) Nothing contained in this paragraph  (f)  shall  be  construed  as
  granting  member contributions or additional member contributions picked
  up under this subdivision any status, under federal law, other  than  as
  employer contributions, pursuant to subsection h of section four hundred
  fourteen  of  the  United  States internal revenue code, for the federal
  purposes for which such  subsection  h  so  classifies  such  picked  up
  contributions.
    (g)   No  member  whose  member  contributions  or  additional  member
  contributions are required to be picked up pursuant to this  subdivision
  shall  have  any  right  to  elect  that such pick up, with accompanying
  deduction from the personal compensation of such member as prescribed by
  paragraph (d) of this subdivision, shall not be effectuated.
    ** NB Expires per ch. 681/92 § 16
    * 20. (a) For the purposes of this subdivision, the terms  "rules  and
  regulations"  and  "retirement system" shall have the meanings set forth
  in subparagraphs three and  four,  respectively,  of  paragraph  (a)  of
  subdivision sixteen of this section.
    (b)  The  following terms, as used in this subdivision, shall have the
  following meanings, unless a different meaning is  plainly  required  by
  the context:
    (1)  "Tax-deferred  annuity program". The tax-deferred annuity program
  established pursuant to the provisions  of  section  thirty-one  hundred
  nine-A  of  this  chapter  and  section  thirty-three  of  the rules and
  regulations.
    (2) "Annuity  savings  fund".  The  annuity  savings  fund  under  the
  tax-deferred annuity program.
    (3)  "Annuity  reserve  fund".  The  annuity  reserve  fund  under the
  tax-deferred annuity program.
    (4) "Variable annuity savings fund". The variable annuity savings fund
  under the tax-deferred annuity program.
    (5) "Variable annuity reserve fund". The variable annuity reserve fund
  under the tax-deferred annuity program.
    (6) "Tax-deferred annuity account". The tax-deferred  annuity  account
  maintained  in the tax-deferred annuity program by a participant in such
  program.
    (c) (1) Notwithstanding any provision of the rules and regulations  or
  any  other  provision  of  law  to  the  contrary,  a participant in the
  tax-deferred annuity program who, pursuant to the applicable  provisions
  of  the  rules and regulations and/or the retirement and social security
  law, retires for service or disability, or who discontinues service with
  a vested right to receive a deferred retirement allowance, may elect  to
  defer  commencement  of  the  distribution  of  his  or her tax-deferred
  annuity account to the  latest  date  permitted  by  the  provisions  of
  section   403(b)   of  the  internal  revenue  code  pertaining  to  the

  commencement of distribution of tax-deferred  annuities,  by  filing  an
  election  for  such  deferral of distribution with the retirement system
  during the time period which:
    (i)  for  a  service  retiree,  commences  on  the  day  such person's
  application for service retirement is filed with the retirement  system,
  and which ends on the day prior to the effective date of retirement; or
    (ii)  for  a  disability  retiree,  commences  on  the day such person
  receives notification from the retirement system that  it  has  approved
  his  or  her  retirement for disability, and which ends on the thirtieth
  day after such receipt of notification; or
    (iii) for a member who discontinues service with  a  vested  right  to
  receive  a deferred retirement allowance, commences thirty days prior to
  the date of such discontinuance of service, and which ends  on  the  day
  such  retirement  allowance  becomes  payable pursuant to the applicable
  provisions of the rules and regulations and/or the retirement and social
  security law.
    (2) A participant in the tax-deferred annuity program who, pursuant to
  the provisions of subparagraph one of this  paragraph,  has  elected  to
  defer  commencement  of  the  distribution  of  his  or her tax-deferred
  annuity account to the latest date for distribution referred to in  such
  subparagraph one may revoke such election by filing a revocation of such
  election  with  the  retirement  system at any time prior to such latest
  date. Where a participant has made such a revocation,  the  distribution
  of  his  or her tax-deferred annuity account shall be made thereafter in
  accordance with the applicable provisions of the rules and regulations.
    (3) Where a  participant  in  the  tax-deferred  annuity  program  has
  elected,  pursuant  to  the  provisions  of  subparagraph  one  of  this
  paragraph, to defer commencement of  the  distribution  of  his  or  her
  tax-deferred  annuity  account  to  the  latest  date  for  distribution
  referred to in such subparagraph one, the application of  any  provision
  of  the  rules and regulations which requires the transfer of his or her
  tax-deferred annuity account  from  the  annuity  savings  fund  to  the
  annuity  reserve  fund  and/or from the variable annuity savings fund to
  the  variable  annuity  reserve  fund  upon  the  retirement   of   such
  participant  shall  be delayed until the commencement of distribution of
  his or her tax-deferred annuity account pursuant to such retirement and,
  upon such  commencement  of  distribution,  such  account  shall  be  so
  transferred in accordance with such provision.
    (4)  Where  a  participant  has  made  an  election  pursuant  to  the
  provisions of subparagraph one of this paragraph,  the  distribution  of
  the  entire  amount  in such participant's tax-deferred annuity account,
  including any portion of such amount to be distributed  pursuant  to  an
  option   for  the  payment  of  retirement  benefits  selected  by  such
  participant pursuant to the  rules  and  regulations  or  an  applicable
  provision  of  the  retirement and social security law, shall not extend
  beyond the maximum period permitted by the provisions of section  403(b)
  of   the  internal  revenue  code  pertaining  to  the  distribution  of
  tax-deferred annuities.
    (d)  The  rules  and  regulations  may  be  amended  pursuant  to  the
  procedures  set  forth  in  subdivision two of this section to establish
  rules and regulations governing the borrowing by a  participant  in  the
  tax-deferred  annuity program of contributions accumulated in his or her
  tax-deferred  annuity  account,  provided  that  in   establishing   and
  administering  such rules and regulations, no action shall be taken that
  would render the tax-deferred annuity program in  violation  of  section
  403(b) of the internal revenue code.
    * NB There are 2 sub 20's

    * 20.  Eligible  rollover  distributions. (a) For the purposes of this
  subdivision, the terms "rules and regulations" and  "retirement  system"
  shall  have  the  meanings  set forth in subparagraphs three and four of
  paragraph (a) of subdivision sixteen of this section.
    (b)  Notwithstanding  anything  to  the  contrary contained in section
  twenty-six of the rules and regulations, in the event  that,  under  the
  terms  of  this  section  or the rules and regulations, a person becomes
  entitled to a distribution from the retirement system which  constitutes
  an  "eligible  rollover  distribution"  within  the meaning of paragraph
  thirty-one of subsection a of section four hundred one of  the  internal
  revenue  code,  such  distributee  may  elect,  subject to any rules and
  regulations adopted pursuant to paragraph (c) of  this  subdivision,  to
  have  such  distribution,  or  a  portion  thereof,  paid directly to an
  "eligible retirement plan" within the meaning of paragraph thirty-one of
  subsection a of section four hundred one of the internal revenue code.
    (c)  The  retirement  board  is  authorized  to  adopt  such   written
  administrative  procedures  as it finds to be necessary in administering
  the  provisions  of  this  subdivision,  provided  that  they  are   not
  inconsistent with the applicable provisions of the internal revenue code
  and the rules and regulations thereunder.
    * NB There are 2 sub 20's
    21.  Certain  distributions  and  transfers  by  participants  in  the
  tax-deferred annuity program. (a) For the purposes of this subdivision:
    (1) the terms "rules and regulations" and  "retirement  system"  shall
  have the meanings set forth in subparagraphs three and four of paragraph
  (a) of subdivision sixteen of this section; and
    (2)  the  term  "tax-deferred  annuity program" shall mean the program
  authorized by section three thousand one hundred nine-A of this  chapter
  as set forth in section thirty-three of the rules and regulations of the
  retirement system.
    (b) (1) Notwithstanding any other provision of law to the contrary, in
  the  event  that  a  person  becomes entitled to a distribution from the
  tax-deferred annuity program which  constitutes  an  "eligible  rollover
  distribution" within the meaning of paragraph thirty-one of subsection a
  of  section  four  hundred  one  of  the  internal revenue code (as such
  section is made  applicable  to  the  tax-deferred  annuity  program  by
  paragraph  ten  of  subsection  b  of  section four hundred three of the
  internal revenue code), the person may elect, subject to any  rules  and
  regulations  adopted  pursuant  to paragraph (c) of this subdivision, to
  have such distribution, or  a  portion  thereof,  paid  directly  to  an
  eligible  retirement  plan within the meaning of paragraph thirty-one of
  subsection a of section four hundred one of the internal revenue code.
    (2) Nothing contained in section twenty-six or section thirty-three of
  the rules and regulations shall be construed to prohibit  a  participant
  in  the  tax-deferred annuity program from electing to transfer all or a
  portion of his or her tax-deferred annuity net contributions to  another
  annuity contract described in subsection b of section four hundred three
  of  the  internal  revenue  code  where a non-taxable trustee-to-trustee
  transfer of tax-deferred annuities  is  permitted  by  subsection  b  of
  section  four  hundred  three  of  such  code  and the applicable rules,
  regulations and rulings thereunder.
    (c)  The  retirement  board  is  authorized  to  adopt  such   written
  administrative  procedures  as it finds to be necessary in administering
  the  provisions  of  this  subdivision  provided  that  they   are   not
  inconsistent with the applicable provisions of the internal revenue code
  and the rules and regulations thereunder.
    22.  (a)  For  the  purposes of this subdivision, the terms "rules and
  regulations" and "retirement system" shall have the meanings  set  forth

  in  subparagraphs  three  and  four,  respectively,  of paragraph (a) of
  subdivision sixteen of this section, and  the  terms  "Tier  I  member",
  "Tier  II  member",  "education service" and "discontinued member" shall
  have the meanings set forth in subparagraphs four, five, ten and eleven,
  respectively, of paragraph (b) of subdivision seventeen of this section,
  and  the  term "fifty-five-year-increased-service-fraction member" shall
  have the meaning set forth in paragraph thirty-two of section two of the
  rules and regulations.
    (b) Notwithstanding any other  provision  of  law,  subdivision  a  of
  section  thirty-two  of  the rules and regulations shall be deemed to be
  amended to provide that any member of the retirement system who:
    (1) discontinues education service on or after  July  first,  nineteen
  hundred sixty-eight, other than by death, retirement or dismissal; and
    (2) is a fifty-five-year-increased-service-fraction member at the time
  of such discontinuance; and
    (3)  (i) prior to such discontinuance, completed five or more years of
  allowable service; and
    (4) does not withdraw his or her accumulated deductions in whole or in
  part; shall have  a  vested  right  to  receive  a  deferred  retirement
  allowance   as   provided   in  section  thirty-two  of  the  rules  and
  regulations.
    (c) Nothing contained in  paragraph  (b)  of  this  subdivision  shall
  change,  alter  or affect the applicability of the provisions of article
  eleven of the retirement and social security law to any Tier  II  member
  who  becomes  a  discontinued  member  pursuant  to  the  provisions  of
  paragraph (b) of this subdivision.
    (d) Notwithstanding any other provision of law, a Tier I  discontinued
  member  with  ten  or  more  years of credited service in the retirement
  system who dies before a retirement benefit becomes payable and  who  is
  otherwise  not  entitled  to  a death benefit from the retirement system
  shall be deemed to have died on the last day  that  he  or  she  was  in
  service  upon  which  his  or  her  membership was based for purposes of
  eligibility  for  the  payment  of  a  death  benefit  pursuant  to  the
  provisions  of  section  twenty  of the rules and regulations. The death
  benefit payable in such case shall be one-half of that which would  have
  been  payable  had  such  member  died  on the last day that service was
  rendered.
    23. (a) The following terms, as used in this subdivision,  shall  have
  the  following  meanings, unless a different meaning is plainly required
  by the context:
    (1) "BERS" or "retirement system". The board of  education  retirement
  system of the city of New York established pursuant to the provisions of
  this section.
    (2)  "BERS  rules  and regulations". The rules and regulations for the
  government, management and control  of  BERS  adopted  pursuant  to  the
  provisions of this section.
    (3)  "Retirement  board".  The  board  established  as the head of the
  retirement system pursuant to sections five and five-a of the BERS rules
  and regulations.
    (b)(1) In addition to the powers conferred upon it by the  BERS  rules
  and  regulations  or by any other provision of law, the retirement board
  shall, on or before  April  first  of  each  year,  establish  a  budget
  sufficient  to fulfill the powers, duties and responsibilities set forth
  in the BERS rules and regulations and any other provision of  law  which
  sets forth the benefits of members of the retirement system. Said budget
  shall  also  include  the amounts withheld for the purpose of paying the
  expenses attributable to the tax-deferred annuity  program  pursuant  to
  the  provisions  of  subdivision  b  of section thirty-three of the BERS

  rules and regulations, and the amounts deposited in the variable annuity
  expense fund pursuant to the provisions  of  subdivision  1  of  section
  thirty-six  of  the  BERS  rules  and  regulations. The retirement board
  shall,  if  necessary,  draw upon the assets of the retirement system to
  fund the portion of such budget which is not derived from subdivision  b
  of   section   thirty-three  of  the  BERS  rules  and  regulations  and
  subdivision 1 of section thirty-six of the BERS rules  and  regulations,
  provided  that  such  action  shall  be  subject  to  the  provisions of
  subparagraphs two, three, four and five of this paragraph and paragraphs
  (c), (d), (e) and (f)  of  this  subdivision.  The  provisions  of  this
  subdivision  shall  not  be  applicable  to  the  payment  of investment
  expenses pursuant to section 13-705 of the administrative  code  of  the
  city  of  New  York  and  nothing contained herein shall be construed as
  abolishing, limiting or modifying any power of the retirement  board  to
  provide  for  the  payment  of  investment  expenses pursuant to section
  13-705 of such code.
    (2) If a budget has not been adopted by the commencement  of  the  new
  fiscal year, the budget for the preceding fiscal year shall be deemed to
  have  been  extended  for  the  new fiscal year until such time as a new
  budget is adopted.
    (3) Any budget in effect pursuant to subparagraph one or two  of  this
  paragraph shall be modifiable during such succeeding fiscal year.
    (4)  Notwithstanding  any other provision of law, the retirement board
  shall have the power either directly or by delegation to  the  executive
  director of the retirement system to obtain by employment or by contract
  the  goods, property and services necessary to fulfill its powers within
  the  appropriation  authorized  by  the  retirement  board  pursuant  to
  subparagraph one of this paragraph.
    (5)  The  provisions of chapter seventeen of the New York city charter
  shall continue to apply to the  retirement  system  and  the  retirement
  system  shall  constitute  an  agency  for  the purposes of such chapter
  seventeen. The retirement board shall not obtain any legal  services  by
  the retention of employees or by contract unless the corporation counsel
  shall consent thereto.
    (6) All contracts for goods or services entered into by the retirement
  system  shall  be  procured as described for school districts in article
  five-A of the general municipal law. The retirement board shall  be  the
  governing body as described in such law.
    (7)  The  provisions  of  subparagraphs four and six of this paragraph
  shall not apply to any contract or contracts relating  to  the  variable
  annuity  funds  and  tax-deferred  annuity  program pursuant to sections
  thirty-three and thirty-six of the BERS rules and regulations.
    (c) Notwithstanding the provisions of paragraph (a) of subdivision one
  of this section or any other provision of law or any  provision  of  the
  BERS  rules  and  regulations  to  the  contrary,  any resolution of the
  retirement board  which  establishes  a  budget  or  modifies  a  budget
  pursuant to the provisions of subparagraph one or three of paragraph (b)
  of  this  subdivision  shall  require  the  concurrence  of at least one
  retirement board member who is appointed to the board  of  education  by
  the mayor of the city of New York, and as otherwise required by law. The
  provisions  of  this  paragraph  shall  apply only to resolutions of the
  retirement board which establish or modify a  budget  pursuant  to  this
  subdivision,  and nothing contained in this paragraph shall be construed
  to apply to any other vote of the retirement board.  No  assets  of  the
  retirement  system  shall  be  drawn  upon pursuant to the provisions of
  subparagraph one of paragraph (b) of this subdivision unless  authorized
  by  a  budget  or budget modification established by a resolution of the
  retirement board.

    (d) Employment by the retirement  system  shall  constitute  education
  service for the purposes of the BERS rules and regulations and any other
  provision  of  law which governs the crediting of service for members of
  the retirement system; provided, however, that nothing contained  herein
  shall  be  construed  as  granting  membership  rights in the retirement
  system to a contractor of the retirement  system  or  such  contractor's
  employees.
    (e)  Whenever  the  assets  of  the  retirement  system are drawn upon
  pursuant to the provisions of subparagraph one of paragraph (b) of  this
  subdivision,  all  monies so withdrawn shall be made a charge to be paid
  by each participating employer otherwise required to make  contributions
  to  the  retirement system no later than the end of the fiscal year next
  succeeding the time period during which such  assets  were  drawn  upon,
  provided,  however, that where such charge is for assets so withdrawn in
  fiscal year two thousand four--two thousand five or in any  fiscal  year
  thereafter,  such  charge  shall  be  paid  by  each  such participating
  employer no later than the end of the second fiscal year succeeding  the
  time  period  during  which such assets were drawn upon. The actuary for
  the  retirement  system  shall  calculate  and  allocate  to  each  such
  participating  employer  its  share  of  such charge by multiplying such
  charge by a fraction, the numerator of which shall consist of the  total
  salaries  of the employees of each participating employer as of the June
  thirtieth succeeding the withdrawal of assets  and  the  denominator  of
  which  shall  consist of the total salaries of members of the retirement
  system as of such June thirtieth. 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 the administrative code of the city of New York.
    (f) The funds withdrawn  from  the  retirement  system  shall  not  be
  utilized  for  any  purpose  other  than  the  budget established by the
  retirement board. All expenditures of the  retirement  system  shall  be
  subject  to  audit  by  the comptroller of the city of New York, who may
  make recommendations, including but not limited to, procedures  designed
  to  improve  accounting and expenditure control. All expenditures of the
  retirement system shall be reported to the mayor's office of  management
  and budget and the budgetary office of all participating employers.
    (g)  The  executive  director  of  the retirement system, who shall be
  appointed by the retirement board, shall perform such duties as  may  be
  conferred upon him or her by the chairperson of the retirement board, by
  resolution adopted by the retirement board, or by law.
    * 24. (a) The following terms, as used in this subdivision, shall have
  the  following  meanings, unless a different meaning is plainly required
  by the context:
    (1) "Board of education". The board of education of a city.
    (2) "City". A city having a population of one million or more.
    (3) "Retirement system". The  board  of  education  retirement  system
  established pursuant to the provisions of this section in a city.
    (4)  "Rules  and  regulations".  The  rules  and  regulations  for the
  government, management and control  of  the  retirement  system  adopted
  pursuant to this section.
    (5)  "Retirement board". The retirement board of the retirement system
  provided for in section five-a of the rules and regulations.
    (6) "Retirement benefits". Benefits payable to a  beneficiary  by  the
  retirement  system  which  are  subject  to  the  limitations imposed by
  section 415(b) of the Internal Revenue Code.
    (7) "Beneficiary". A person who is receiving retirement benefits  from
  the retirement system.

    (8) "Excess benefit plan". The excess benefit plan established by this
  subdivision  for  the sole purpose of paying benefits as permitted under
  section 415(m) of the Internal Revenue Code.
    (9)   "Eligible   participant".  A  beneficiary  who  is  entitled  to
  replacement benefits from the excess benefit plan for  a  plan  year  in
  accordance with paragraphs (d) and (e) of this subdivision.
    (10)  "Replacement  benefits".  The  benefits  payable  by  the excess
  benefit plan to  an  eligible  participant  as  determined  pursuant  to
  paragraph (e) of this subdivision.
    (11)  "Internal  Revenue  Code".  The Federal Internal Revenue Code of
  1986, as amended.
    (12) "Plan year". The limitation year  of  the  retirement  system  as
  provided  in  section  six  hundred  twenty of the retirement and social
  security law.
    (b) There is hereby established  an  excess  benefit  plan,  the  sole
  purpose  of which shall be to provide replacement benefits, as permitted
  by section 415(m) of the Internal Revenue Code, to  beneficiaries  whose
  annual  retirement  benefits  have  been  reduced  because such benefits
  exceed the limitations imposed by section 415(b) of the Internal Revenue
  Code. The excess benefit plan shall be administered  by  the  retirement
  board.
    (c)  There  is  hereby  established  a  fund to be known as the excess
  benefit fund which shall be maintained for the sole purpose of providing
  replacement benefits to eligible participants in the excess benefit plan
  established by this subdivision, as permitted under  section  415(m)  of
  the  Internal  Revenue  Code.  Such  fund shall consist of such employer
  contributions as shall be made thereto pursuant to paragraph (f) of this
  subdivision. Such contributions to the excess benefit fund shall be held
  separate and apart from the assets  held  by  the  other  funds  of  the
  retirement  system,  provided,  however,  that  the assets of the excess
  benefit fund may be invested with the other  retirement  system  assets,
  but  such  excess  benefit fund assets shall be accounted for separately
  from the other retirement system assets.
    (d) All  beneficiaries  of  the  retirement  system  whose  retirement
  benefits  for a plan year are being reduced because of section 415(b) of
  the Internal Revenue Code shall be eligible participants in  the  excess
  benefit  plan  for  that  plan year. Participation in the excess benefit
  plan shall be determined for each  plan  year.  No  beneficiary  of  the
  retirement system shall be an eligible participant in the excess benefit
  plan  for any plan year for which his or her retirement benefits are not
  reduced because of section 415(b) of the Internal Revenue Code.
    (e)(1) For each plan year  in  which  a  beneficiary  is  an  eligible
  participant  in the excess benefit plan, such eligible participant shall
  receive replacement benefits from the excess benefit plan equal  to  the
  difference  between the full amount of the retirement benefits otherwise
  payable to the eligible participant for that  plan  year  prior  to  any
  reduction  because  of  section 415(b) of the Internal Revenue Code, and
  the retirement benefits payable to the  eligible  participant  for  that
  plan  year  as reduced because of section 415(b) of the Internal Revenue
  Code. No replacement benefits for any plan year shall be  paid  pursuant
  to  this  paragraph  to  any beneficiary who is not receiving retirement
  benefits from the retirement system for that plan year.
    (2) Replacement benefits pursuant to this subdivision shall be paid at
  the same time and in the same manner as the  retirement  benefits  which
  are  being  replaced.  At  no  time  shall  an  eligible  participant be
  permitted directly or indirectly to defer compensation under the  excess
  benefit plan.

    (f)(1)  The required employer contributions to the excess benefit fund
  for each plan year shall be an amount, as  determined  by  the  actuary,
  which  is necessary to pay the total amount of replacement benefits that
  are payable pursuant to this subdivision to  eligible  participants  for
  that plan year.
    (2) Such required employer contributions shall be paid into the excess
  benefit  fund  from  an  allocation of the employer contribution amounts
  paid by the board of education and other public  employers  pursuant  to
  the  applicable  provisions  of  subdivision sixteen of this section and
  other  applicable  provisions  of  law.  Such  allocation  of   employer
  contribution  amounts shall be paid into the excess benefit fund at such
  times and in such amounts as determined by the actuary.
    (3) The benefit liabilities of the excess benefit plan shall be funded
  on a plan year to plan year basis, provided, however, that any  employer
  contributions  to  the  excess  benefit  fund,  including any investment
  earnings on such contributions, which are not used  to  pay  replacement
  benefits  for  the  current  plan  year shall be used to pay replacement
  benefits for future plan years.
    (g) The right  of  an  eligible  participant  to  receive  replacement
  benefits  pursuant  to  this  subdivision,  and the replacement benefits
  received pursuant to this subdivision, shall be exempt from any state or
  municipal tax, and shall  not  be  subject  to  execution,  garnishment,
  attachment  or  any other process whatsoever, and shall be unassignable,
  except as otherwise specifically provided for benefits  payable  by  the
  retirement system.
    * NB There are 2 sb 24's
    * 24.  Notwithstanding  any  provisions of the rules or regulations or
  any other provision  of  law  to  the  contrary,  in  a  city  having  a
  population  of one million or more, the board of education shall adopt a
  resolution amending  the  provisions  governing  any  retirement  system
  adopted  pursuant to or subject to the provisions of this section to the
  extent necessary to grant a retired member the right, at any time  after
  his   or   her   retirement,  to  execute  and  file  a  dues  deduction
  authorization card with the member's retirement system  authorizing  the
  payment  of  voluntary  contributions  to  the  political  committee, as
  defined in section fourteen-one hundred of the  election  law,  of  such
  member's employee organization; (or a retirees' association chartered by
  the  member's  employee  organization)  provided  such  organization  is
  certified or recognized  pursuant  to  article  fourteen  of  the  civil
  service  law  as the representative of employees in the negotiation unit
  in which such member was employed. Such authorization shall continue  in
  effect  until  revoked  in writing by such member. The comptroller shall
  determine  the  cost  of   administrative   deductions   for   voluntary
  contributions  to the political committees; and the cost incurred by the
  retirement system in administering such contributions shall be paid from
  the funds of the political committee.
    * NB There are 2 sb 24's
    25. (a) For the purposes of this subdivision,  the  terms  "rules  and
  regulations"  and  "retirement system" shall have the meanings set forth
  in subparagraphs three and  four,  respectively,  of  paragraph  (a)  of
  subdivision sixteen of this section.
    (b)  Notwithstanding  any  other provision of law to the contrary, the
  rules and regulations adopted pursuant to this section shall  be  deemed
  to be amended to provide that a member of the retirement system shall be
  deemed  to  have died as the natural and proximate result of an accident
  sustained in the performance of duty upon which his or her membership is
  based, and not as a result of willful negligence on  his  or  her  part,
  provided  that  such  member was in active service upon which his or her

  membership is based at the time that such member was ordered  to  active
  duty,  other  than  for  training  purposes, pursuant to Title 10 of the
  United States Code, with the armed forces of the United States, and such
  member  died while on such active duty on or after the effective date of
  the  chapter  of  the  laws  of  two  thousand  five  which  added  this
  subdivision while serving on such active military duty.