LBD06265-01-1
S. 2861 2
PROVISIONS OF SECTION 13-198 OF THIS CHAPTER AND ALL OTHER MONIES
RECEIVED BY SUCH FUND FROM ANY OTHER SOURCE PURSUANT TO LAW.
(B) IT IS HEREBY DECLARED BY THE LEGISLATURE THAT THE SANITATION VARI-
ABLE SUPPLEMENTS FUND SHALL NOT BE, AND SHALL NOT BE CONSTRUED TO
CONSTITUTE, A PENSION OR RETIREMENT SYSTEM OR FUND, AND THAT IT SHALL
FUNCTION AS A MEANS WHEREBY PAYMENTS, NOT CONSTITUTING A PENSION OR
RETIREMENT ALLOWANCE, MAY BE MADE AT THE DISCRETION OF THE VARIABLE
SUPPLEMENTS BOARD, IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION, TO
ELIGIBLE BENEFICIARIES, AS A SUPPLEMENT TO BENEFITS RECEIVED BY THEM
PURSUANT TO THIS TITLE. THE LEGISLATURE HEREBY RESERVES TO THE STATE AND
ITSELF THE RIGHT AND POWER TO AMEND, MODIFY OR REPEAL ANY OR ALL OF THE
PROVISIONS OF THIS SECTION.
3. (A) THE SANITATION VARIABLE SUPPLEMENTS FUND SHALL BE ADMINISTERED
BY A BOARD OF TRUSTEES WHICH SHALL, SUBJECT TO APPLICABLE PROVISIONS OF
LAW, FROM TIME TO TIME ESTABLISH RULES AND REGULATIONS FOR THE ADMINIS-
TRATION AND TRANSACTION OF THE BUSINESS OF SUCH FUND AND FOR THE CONTROL
AND DISPOSITION THEREOF.
(B) SUCH VARIABLE SUPPLEMENTS BOARD SHALL CONSIST OF:
(1) THE REPRESENTATIVE OF THE MAYOR WHO IS A MEMBER OF THE BOARD OF
TRUSTEES OF THE RETIREMENT SYSTEM, WHO SHALL BE ENTITLED TO CAST ONE
VOTE. THE MAYOR MAY, BY INSTRUMENT IN WRITING FILED IN HIS OR HER OFFICE
WITH THE VARIABLE SUPPLEMENTS BOARD, DESIGNATE ONE OR MORE MEMBERS OF
HIS OR HER OFFICE TO ACT IN THE PLACE OF SUCH REPRESENTATIVE AT MEETINGS
OF THE BOARD, IN THE EVENT OF SUCH REPRESENTATIVE'S ABSENCE THEREFROM.
(2) THE COMPTROLLER OF THE CITY, WHO SHALL BE ENTITLED TO CAST ONE
VOTE. ANY DEPUTY COMPTROLLER AUTHORIZED, PURSUANT TO SUBDIVISION B OF
SECTION NINETY-FOUR OF THE NEW YORK CITY CHARTER, TO ACT IN THE PLACE OF
THE COMPTROLLER AS A MEMBER OF THE BOARD OF TRUSTEES OF THE RETIREMENT
SYSTEM, MAY BE AUTHORIZED BY THE COMPTROLLER, IN ACCORDANCE WITH THE
PROVISIONS OF SUCH SUBDIVISION, TO ACT IN THE PLACE OF THE COMPTROLLER
AS A MEMBER OF THE VARIABLE SUPPLEMENTS BOARD.
(3) ONE MEMBER OF THE UNIFORMED SANITATIONMEN'S ASSOCIATION AND ONE
MEMBER OF THE SANITATION OFFICERS' ASSOCIATION DESIGNATED BY THEM, WHO
SHALL BE ENTITLED TO CAST ONE VOTE. THE MEMBERS SO DESIGNATED SHALL BE
OFFICERS OF THE ASSOCIATIONS. EACH SUCH DESIGNEE MAY AT ANY TIME, BY
WRITTEN AUTHORIZATION FILED WITH THE VARIABLE SUPPLEMENTS BOARD, AUTHOR-
IZE ANY OTHER OFFICER OF THE ASSOCIATION TO ACT IN HIS OR HER PLACE AS A
MEMBER OF THE BOARD IN THE EVENT OF SUCH DESIGNEE'S ABSENCE FROM ANY
MEETING THEREOF; PROVIDED THAT THE BYLAWS OR CONSTITUTION OF THE ASSOCI-
ATION PROVIDE FOR THE DESIGNATION OF A REPRESENTATIVE FOR SUCH PURPOSES.
(C) EVERY ACT OF THE VARIABLE SUPPLEMENTS BOARD SHALL BE BY A RESOL-
UTION ADOPTED BY THE VOTES OF NOT LESS THAN THREE MEMBERS OF SUCH BOARD,
EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH (D) OF THIS SUBDIVISION.
(D)(1) IN THE EVENT THAT THE VOTES OF AT LEAST THREE MEMBERS OF SUCH
BOARD ARE NOT CAST IN FAVOR OF ANY RESOLUTION PROPOSED, SUCH DISPUTE
SHALL BE PROMPTLY REFERRED TO THE ARBITRATOR DESIGNATED FOR THE PURPOSE
OF RESOLVING SUCH DISPUTES, IN THE COLLECTIVE BARGAINING AGREEMENT THEN
IN EFFECT, BETWEEN THE CITY OF NEW YORK AND THE ASSOCIATIONS. SUCH ARBI-
TRATOR SHALL DETERMINE SUCH DISPUTE AS EXPEDITIOUSLY AS POSSIBLE AND HIS
OR HER DETERMINATION SHALL BE ADOPTED BY THE BOARD.
(2) IF THE ARBITRATOR DESIGNATED IN SUCH AGREEMENT IS UNWILLING OR
UNABLE TO SERVE, OR IF THERE BE NO SUCH AGREEMENT THEN IN EFFECT, AND
THE VOTES OF AT LEAST THREE MEMBERS OF THE VARIABLE SUPPLEMENTS BOARD
ARE NOT CAST IN FAVOR OF A RESOLUTION DESIGNATING ANOTHER ARBITRATOR, AN
ARBITRATOR SHALL BE APPOINTED BY THE SUPREME COURT, ON APPLICATION OF
ANY MEMBER OF SUCH BOARD. THE DETERMINATION OF THE ARBITRATOR MADE
S. 2861 3
PURSUANT TO THE PROVISIONS OF THIS SUBPARAGRAPH SHALL BE ADOPTED BY THE
BOARD.
(3) THE COST OF ANY ARBITRATION PURSUANT TO THE FOREGOING PROVISIONS
OF THIS PARAGRAPH SHALL BE PAID BY THE SANITATION VARIABLE SUPPLEMENTS
FUND.
(E) THE ACTUARY APPOINTED BY THE BOARD OF THE RETIREMENT SYSTEM SHALL
BE THE TECHNICAL ADVISOR OF THE VARIABLE SUPPLEMENTS BOARD.
(F) THE RETIREMENT SYSTEM SHALL ASSIGN TO THE VARIABLE SUPPLEMENTS
BOARD SUCH NUMBER OF CLERICAL AND OTHER ASSISTANTS AS MAY BE NECESSARY
FOR THE PERFORMANCE OF ITS FUNCTIONS.
4. (A) THE VARIABLE SUPPLEMENTS BOARD MAY IN ITS DISCRETION AUTHORIZE
PAYMENTS FROM THE SANITATION VARIABLE SUPPLEMENTS FUND TO BENEFICIARIES
PURSUANT TO THE PROVISIONS OF THIS SECTION. SUBJECT TO THE PROVISIONS OF
PARAGRAPH (B) OF THIS SUBDIVISION, SUCH PAYMENTS MAY BE MADE IN SUCH
FORM, IN SUCH AMOUNT AND IN SUCH CASES AS THE VARIABLE SUPPLEMENTS BOARD
MAY IN ITS DISCRETION DETERMINE; PROVIDED, HOWEVER, THAT THE BOARD, IN
SO EXERCISING ITS DISCRETION, SHALL GIVE CONSIDERATION TO EQUITY, FAIR-
NESS AND PRINCIPLES OF PRUDENT MANAGEMENT.
(B) (1) NO BENEFICIARY SHALL HAVE A RIGHT TO RECEIVE VARIABLE SUPPLE-
MENTS EXCEPT TO THE EXTENT, IN THE MANNER AND FOR THE PERIOD AUTHORIZED
BY THE VARIABLE SUPPLEMENTS BOARD IN THE EXERCISE OF ITS DISCRETION
PURSUANT TO THIS SECTION AND ANY SUCH SUPPLEMENTS GRANTED MAY AT ANY
TIME BE DISCONTINUED BY THE VARIABLE SUPPLEMENTS BOARD IN THE EXERCISE
OF SUCH DISCRETION.
(2) THE LEGISLATURE HEREBY DECLARES THAT THE VARIABLE SUPPLEMENTS
AUTHORIZED BY THIS SECTION AND THE GRANTING AND RECEIPT THEREOF:
(I) SHALL NOT CREATE OR CONSTITUTE MEMBERSHIP IN A PENSION OR RETIRE-
MENT SYSTEM AND SHALL NOT CREATE OR CONSTITUTE A CONTRACT WITH ANY BENE-
FICIARY OR WITH ANY SANITATION MEMBER; AND
(II) SHALL NOT CONSTITUTE A PENSION OR RETIREMENT ALLOWANCE OR BENEFIT
UNDER THE RETIREMENT SYSTEM OR OTHERWISE.
(3) EXCEPT AS OTHERWISE PROVIDED IN SECTION 13-198 OF THIS CHAPTER,
NOTHING CONTAINED IN THIS SECTION SHALL CREATE OR IMPOSE ANY OBLIGATION
ON THE PART OF THE RETIREMENT SYSTEM, OR THE FUNDS OR MONIES THEREOF, OR
AUTHORIZE SUCH FUNDS OR MONIES TO BE APPROPRIATED OR USED FOR ANY
PAYMENT UNDER THIS SECTION OR FOR ANY PURPOSE THEREOF.
(C) BENEFICIARIES SHALL BE ELIGIBLE TO RECEIVE VARIABLE SUPPLEMENTS
PURSUANT TO THIS SECTION, NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO
THE CONTRARY.
(D) (1) THE VARIABLE SUPPLEMENTS BOARD SHALL NOT GRANT ANY VARIABLE
SUPPLEMENT PURSUANT TO THIS SECTION UNLESS THE SANITATION VARIABLE
SUPPLEMENTS FUND, AT THE TIME OF THE MAKING OF SUCH GRANT, HAS IN ITS
POSSESSION MONIES OR ASSETS WHICH ARE SUFFICIENT TO PROVIDE SUCH SUPPLE-
MENT AND WHICH HAVE NOT BEEN ENCUMBERED BY ANY OTHER GRANT OF ANY SUCH
SUPPLEMENT.
(2) UPON THE MAKING OF ANY SUCH GRANT, THE MONIES OR ASSETS ENCUMBERED
THEREBY SHALL BE SET ASIDE AND SHALL NOT BE USED FOR ANY OTHER PURPOSE,
EXCEPT THAT THEY MAY BE INVESTED AS AUTHORIZED BY SUBDIVISION SIX OF
THIS SECTION.
5. THE SANITATION VARIABLE SUPPLEMENTS FUND SHALL HAVE THE POWERS AND
PRIVILEGES OF A CORPORATION AND BY ITS NAME ALL OF ITS BUSINESS SHALL BE
TRANSACTED, ALL OF ITS FUNDS INVESTED, ALL WARRANTS FOR MONEY DRAWN AND
PAYMENTS MADE, AND ALL OF ITS CASH AND SECURITIES AND OTHER PROPERTY
HELD.
6. THE MEMBERS OF THE VARIABLE SUPPLEMENTS BOARD SHALL BE THE TRUSTEES
OF THE MONIES RECEIVED BY OR BELONGING TO THE SANITATION VARIABLE
S. 2861 4
SUPPLEMENTS FUND PURSUANT TO THIS SECTION AND SHALL HAVE FULL POWER TO
INVEST SAME, SUBJECT TO THE TERMS, CONDITIONS, LIMITATIONS AND
RESTRICTIONS IMPOSED BY THE LAW UPON SAVINGS BANKS IN THE MAKING AND
DISPOSING OF INVESTMENTS BY SAVINGS BANKS; AND SUBJECT TO LIKE TERMS,
CONDITIONS, LIMITATIONS AND RESTRICTIONS, SUCH TRUSTEES SHALL HAVE FULL
POWER TO HOLD, PURCHASE, SELL, ASSIGN, TRANSFER OR DISPOSE OF ANY OF THE
SECURITIES OR INVESTMENTS IN WHICH ANY OF SUCH MONIES SHALL HAVE BEEN
INVESTED AS WELL AS THE PROCEEDS OF SUCH INVESTMENTS AND OF ANY MONIES
BELONGING TO SUCH FUND.
7. THE VARIABLE SUPPLEMENTS BOARD SHALL PUBLISH ANNUALLY IN THE CITY
RECORD A REPORT FOR THE PRECEDING YEAR SHOWING THE ASSETS OF THE SANITA-
TION VARIABLE SUPPLEMENTS FUND AND A STATEMENT AS TO THE ACCUMULATED
CASH AND SECURITIES OF SUCH FUND AS CERTIFIED BY THE COMPTROLLER, AND
SHALL SET FORTH IN SUCH REPORT SUCH OTHER FACTS, RECOMMENDATIONS AND
DATA AS THE BOARD MAY DEEM PERTINENT.
8. THE COMPTROLLER SHALL BE CUSTODIAN OF THE MONIES AND ASSETS OF THE
SANITATION VARIABLE SUPPLEMENTS FUND. ALL SUCH MONIES AND ASSETS
INCLUDED IN SUCH FUND OR WHICH SHALL HEREAFTER ACCRUE TO SUCH FUND SHALL
BE IN HIS OR HER CUSTODY FOR THE PURPOSES OF THIS SECTION SUBJECT TO THE
DIRECTION, CONTROL AND APPROVAL OF SUCH BOARD AS TO DISPOSITION, INVEST-
MENT, MANAGEMENT AND REPORT. ALL PAYMENTS FROM SUCH FUND SHALL BE MADE
BY THE COMPTROLLER UPON A VOUCHER SIGNED BY THE SECRETARY OF THE VARI-
ABLE SUPPLEMENTS BOARD.
9. EXCEPT AS PROVIDED IN THIS SECTION, THE TRUSTEES AND EMPLOYEES
ASSIGNED TO THE VARIABLE SUPPLEMENTS BOARD ARE PROHIBITED FROM HAVING
ANY INTEREST, DIRECTLY OR INDIRECTLY, IN THE GAINS OR PROFITS OF ANY
INVESTMENT OF THE SANITATION VARIABLE SUPPLEMENTS FUND OR AS SUCH,
DIRECTLY OR INDIRECTLY, FROM RECEIVING ANY PAY OR EMOLUMENT FOR THEIR
SERVICES. THE TRUSTEES AND SUCH EMPLOYEES, DIRECTLY OR INDIRECTLY, FOR
THEMSELVES OR AS AGENTS OR PARTNERS OF OTHERS, SHALL NOT BORROW ANY OF
ITS FUNDS OR DEPOSITS OR IN ANY MANNER USE THE SAME EXCEPT TO MAKE SUCH
CURRENT AND NECESSARY PAYMENTS AS ARE AUTHORIZED BY SUCH BOARD.
10. (A) THE SANITATION VARIABLE SUPPLEMENTS FUND SHALL NOT MAKE ANY
PAYMENTS TO BENEFICIARIES UNLESS A PLAN SETTING FORTH THE BASIS AND
AMOUNTS OF SUCH PAYMENTS AND THE QUALIFICATIONS FOR RECEIPT THEREOF IS
FIRST FILED WITH THE SUPERINTENDENT OF FINANCIAL SERVICES AND APPROVED
BY HIM OR HER AS CONSISTENT WITH THE PROVISIONS OF THIS SECTION.
(B) THE SUPERINTENDENT OF FINANCIAL SERVICES MAY EXAMINE THE AFFAIRS
OF THE SANITATION VARIABLE SUPPLEMENTS FUND WITH THE SAME POWERS AND
JURISDICTION AS ARE APPLICABLE IN THE CASE OF AN EXAMINATION OF A LIFE
INSURANCE COMPANY BY SUCH SUPERINTENDENT UNDER ARTICLE THREE OF THE
INSURANCE LAW.
§ 3. Subdivision a of section 13-133 of the administrative code of the
city of New York, as amended by chapter 255 of the laws of 2000, is
amended to read as follows:
a. Regular interest, charges payable, the creation and maintenance of
reserves in the contingent reserve fund and the pension fund and the
maintenance of annuity reserves, pension reserves and reserves-for-in-
creased-take-home-pay as provided for in this chapter and the payment of
all pensions, pensions-providing-for-increased-take-home-pay, annuities,
retirement allowances, refunds, death benefits and any other benefits
granted under the provisions of this chapter, are hereby made obli-
gations of the city. All income, interest and dividends derived from
deposits and investments authorized by this chapter shall be used and
disposed of in the manner prescribed by subdivision b of this section.
Upon the basis of each actuarial determination and appraisal provided
S. 2861 5
for in this chapter, the board shall prepare and submit to the director
of management and budget an itemized estimate of the amounts necessary
to be appropriated by the city to the various funds to provide for
payment in full during the ensuing fiscal year of all such obligations
of the city accruing during the ensuing fiscal year. There shall be
included annually in the budget a sum sufficient to provide for such
obligations of the city. The comptroller shall pay the sums so provided
into the various funds provided for by this chapter, subject to the
provisions of subdivision b of this section. Nothing contained in this
section shall be construed as preventing the payments, if any, required
to be made pursuant to sections 13-193 (relating to the transit police
variable supplements funds), 13-193 (relating to the housing police
variable supplements funds), 13-193.2, 13-193.3, 13-193.4, 13-193.5,
13-193.7, 13-193.6, 13-195 [and], 13-195.1 AND 13-198 of this chapter.
§ 4. The administrative code of the city of New York is amended by
adding a new section 13-198 to read as follows:
§ 13-198 PAYMENTS TO SANITATION VARIABLE SUPPLEMENTS FUND. 1. AS USED
IN THIS SECTION, THE FOLLOWING TERMS SHALL MEAN AND INCLUDE:
(A) "BASE FISCAL YEAR". ANY FISCAL YEAR OF THE CITY BEGINNING ON OR
AFTER JULY FIRST, TWO THOUSAND TWENTY WITH RESPECT TO WHICH FISCAL YEAR
A DETERMINATION IS REQUIRED TO BE MADE AS TO WHETHER THE RETIREMENT
SYSTEM IS REQUIRED TO MAKE A PAYMENT, PURSUANT TO THE PROVISIONS OF THIS
SECTION, TO THE SANITATION VARIABLE SUPPLEMENTS FUND.
(B) "CURRENT FISCAL YEAR". THE FISCAL YEAR OF THE CITY NEXT SUCCEEDING
THE BASE FISCAL YEAR.
(C) "TRANSFERABLE EARNINGS". THE TOTAL AMOUNT OBTAINED IN A BASE
FISCAL YEAR WITH RESPECT TO THE NEW YORK CITY EMPLOYEES' RETIREMENT
SYSTEM BY FOLLOWING THE PROCEDURE DESCRIBED IN PARAGRAPH TWELVE OF
SUBDIVISION A OF SECTION 13-232 OF THIS TITLE.
(D) "AMOUNT OF ASSETS OF THE RETIREMENT SYSTEM". WITH RESPECT TO ANY
BASE FISCAL YEAR, THE AGGREGATE AMOUNT OF ALL ASSETS OF THE RETIREMENT
SYSTEM ON JUNE THIRTIETH OF SUCH FISCAL YEAR.
(E) "AMOUNT OF SANITATION ASSETS". THE AMOUNT OBTAINED BY MULTIPLYING
THE TOTAL ASSETS OF THE RETIREMENT SYSTEM AS OF JUNE THIRTIETH OF SUCH
BASE FISCAL YEAR BY (I) THE TOTAL SALARIES OF SANITATION MEMBERS OF THE
RETIREMENT SYSTEM AS OF SUCH JUNE THIRTIETH AND DIVIDING THE PRODUCT BY
(II) THE TOTAL SALARIES OF MEMBERS OF THE RETIREMENT SYSTEM AS OF SUCH
JUNE THIRTIETH.
(F) "ALLOCATION TO THE SANITATION VARIABLE SUPPLEMENTS FUND". WITH
RESPECT TO ANY BASE FISCAL YEAR, THE AMOUNT OBTAINED:
(I) BY MULTIPLYING THE TRANSFERABLE EARNINGS, IF ANY, WITH RESPECT TO
SUCH BASE FISCAL YEAR BY THE AMOUNT OF SANITATION ASSETS WITH RESPECT TO
SUCH BASE FISCAL YEAR; AND
(II) BY DIVIDING THE AMOUNT COMPUTED PURSUANT TO SUBPARAGRAPH (I) OF
THIS PARAGRAPH BY THE AMOUNT OF ASSETS OF THE RETIREMENT SYSTEM WITH
RESPECT TO SUCH BASE FISCAL YEAR.
2. AS SOON AS PRACTICABLE AFTER THE CLOSE OF EACH BASE FISCAL YEAR,
BUT NOT LATER THAN AUGUST THIRTY-FIRST OF THE CURRENT FISCAL YEAR, THE
BOARD OF THE RETIREMENT SYSTEM SHALL DETERMINE, IN THE MANNER PROVIDED
IN PARAGRAPH (F) OF SUBDIVISION ONE OF THIS SECTION, WHETHER THERE IS AN
ALLOCATION TO THE SANITATION VARIABLE SUPPLEMENTS FUND WITH RESPECT TO
SUCH BASE FISCAL YEAR, AND PAY SUCH ALLOCATION FROM THE CONTINGENT
RESERVE FUND TO THE SANITATION VARIABLE SUPPLEMENTS FUND.
§ 5. This act shall take effect immediately.