§ 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 financial services, 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

(i-A) all unfunded accrued liability installments as required by
section 13-638.2 of the administrative code of the city of New York or
any other provision of law; and

(i-B) any other payments to the contingent reserve fund as required by
applicable law; 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.

(vii) The board of education and all other responsible obligors (as
defined in paragraph ten of subdivision a of section 13-638.2 of the
administrative code of the city of New York) shall make all payments to
the retirement system required by applicable law in accordance with the
time of payment requirements set forth in paragraph (j) of this
subdivision. Any responsible obligor which does not make all or any
portion of such required payments to the retirement system in a timely
manner in fiscal year two thousand twelve--two thousand thirteen, or in
any fiscal year thereafter, shall be required to pay interest to the
retirement system on such overdue amounts, as determined by the actuary.
The actuary shall determine, at such time as he or she deems
appropriate, interest payments on such overdue amounts using a rate of
interest equivalent to the valuation rate of interest (as defined in
paragraph eleven of subdivision a of section 13-638.2 of the
administrative code of the city of New York). Responsible obligors shall
make such interest payments on overdue amounts to the retirement system
in the manner and at such time as the actuary deems appropriate.

(4) Normal contribution. (i) Notwithstanding the succeeding
provisions of this item or the provisions of item (i-A), (ii), (iii) or
(iv) of this subparagraph, for fiscal year two thousand eleven--two
thousand twelve, and for each fiscal year thereafter, the amount of the
normal contribution payable to the contingent reserve fund shall be
determined pursuant to the provisions of item (v) of this subparagraph.
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.

(v) (A) Notwithstanding the preceding items of this subparagraph or
any other provision of law to the contrary, the normal contribution
payable to the contingent reserve fund in fiscal year two thousand
eleven--two thousand twelve, and in each fiscal year thereafter, shall
be the entry age normal contribution, as determined by the actuary
pursuant to this item in a manner consistent with the entry age
actuarial cost method. The actuary shall determine the entry age normal
contribution for each such fiscal year as of June thirtieth of the
second fiscal year preceding the fiscal year in which such normal
contribution is payable, based on the latest mortality and other tables
applicable at the time he or she performs such calculations, and the
valuation rate of interest as provided for the retirement system in
paragraph two of subdivision b of section 13-638.2 of the administrative
code of the city of New York.

(B) In calculating the entry age normal contribution payable in any
such fiscal year pursuant to this item, the actuary, in his or her
discretion, may make certain adjustments in the calculation methodology,
provided that such adjustments are generally accepted as consistent with
the entry age actuarial cost method, and are designed, in general, to
fund, on a level basis over the working lifetimes of members from their
ages at entry, the actuarial present value of benefits to which such
members are expected to become entitled, as determined by the actuary.
Such generally accepted adjustments in the calculation methodology, in
the discretion of the actuary, may include, but are not limited to, the
calculation of the entry age normal contribution (1) on an individual
member basis by calculating the amount of the entry age normal
contribution attributable to each individual member, and then adding
together such individual member amounts, (2) on an aggregate basis for
all members or (3) on any combination of an individual member basis and
an aggregate basis which is consistent with the entry age actuarial cost
method, and the preceding provisions of this sub-item.

(C) For each such fiscal year, the actuary, in his or her discretion,
shall determine, in accordance with the provisions of sub-item (B) of
this item, the methodology for calculating the entry age normal
contribution payable for that particular fiscal year.

(D) The methodology determined by the actuary in accordance with
sub-item (C) of this item may provide for the actuary to calculate the
entry age normal contribution on an individual member basis by (1)
multiplying the entry age normal contribution rate for each individual
member, as determined by the actuary, by the salary expected to be paid
to that member during the fiscal year in which such normal contribution
is payable, and (2) calculating the sum of the individual entry age
normal contributions attributable to all such members. The actuary, in
his or her discretion, may make any adjustments to such methodology for
determining the entry age normal contribution on an individual basis
which he or she deems appropriate, and which are consistent with the
provisions of sub-item (B) of this item.

(E) In the alternative, the methodology determined by the actuary in
accordance with sub-item (C) of this item may provide for the actuary to
calculate the entry age normal contribution on an aggregate basis by
multiplying the entry age normal contribution rate for all members in
the aggregate, as determined by the actuary, by the aggregate amount of
the salaries expected to be paid to all members during the fiscal year
in which the normal contribution is payable. The actuary, in his or her
discretion, may make any adjustments to such methodology for determining
the entry age normal contribution on an aggregate basis which he or she
deems appropriate, and which are consistent with the provisions of
sub-item (B) of this item.

(F) In the alternative, the methodology determined by the actuary in
accordance with sub-item (C) of this item may provide for the
calculation of the entry age normal contribution on any other basis
which the actuary deems appropriate, and which is consistent with the
entry age actuarial cost method and the provisions of sub-item (B) of
this item.

(G) (1) Where the methodology determined by the actuary in accordance
with sub-item (C) of this item requires the determination of an entry
age normal contribution rate for each individual member in order to
calculate the entry age normal contribution for each individual member,
the actuary shall determine such rate for each such member in accordance
with the entry age actuarial cost method, and such rate, as determined
by the actuary for each such member, shall be consistent with a method
designed, in general, to fund, on a level basis over the working
lifetime of that particular member from his or her age at entry, the
actuarial present value of benefits to which such member is expected to
become entitled, as determined by the actuary.

(2) Where the methodology determined by the actuary in accordance with
sub-item (C) of this item requires the determination of an entry age
normal contribution rate for all members in the aggregate in order to
calculate the entry age normal contribution for all members in the
aggregate, the actuary shall determine such rate in accordance with the
entry age actuarial cost method, and such rate, as determined by the
actuary, shall be consistent with a method designed, in general, to
fund, on a level basis over the working lifetimes of members from their
ages at entry, the actuarial present value of benefits to which such
members are expected to become entitled, as determined by the actuary.

(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.

(2-a) Where a responsible obligor (as defined in paragraph ten of
subdivision a of section 13-638.2 of the administrative code of the city
of New York) is required to make payments to the retirement system
pursuant to applicable provisions of law in fiscal year two thousand
twelve--two thousand thirteen, and in any fiscal year thereafter, and
the provisions of this paragraph or the provisions of any other
applicable law do not otherwise specifically require such responsible
obligor to make such payments by a particular date or dates during such
fiscal year, such responsible obligor shall make such payments either
(i) in total on or before January first of such fiscal year, or (ii) in
twelve equal monthly installments, as determined by the actuary, with
each monthly installment to be paid 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
subparagraph, 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, subparagraph three or
subparagraph four 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.

(4)(i) Beginning July first, two thousand twenty-four, upon the entry
into employment of any employee eligible to elect membership in the
retirement system pursuant to subparagraphs one, two and three of this
paragraph or any other applicable provision of law, and provided such
employee is not a member in the retirement system or any other public
retirement system of the city or state of New York as of such entry date
in covered employment, such employee shall be enrolled in the retirement
system effective ninety-one days after the commencement of employment.
Notwithstanding the preceding, if such employee files with the
retirement system an application to opt out of membership within ninety
days after commencement of employment, the retirement system shall
refrain from enrolling such employee unless and until such employee
subsequently files an application for membership with the retirement
system, or is otherwise subsequently mandated to enroll by the rules and
regulations of the retirement system or any applicable law. The employer
and the applicable union for the retirement system shall jointly provide
written notice to the employee informing the employee that he or she has
the option to opt-out of the automatic enrollment program. Such notice
shall be provided to the employee on three occasions: on or before the
thirtieth day, the sixtieth day and the ninetieth day prior to automatic
enrollment in the retirement system. The automatic enrollment of
eligible employees as provided for in this subparagraph shall not be
construed to modify the right of eligible employees to join the
retirement system as of the first date of covered employment by filing
an application for membership with the retirement system. The employer
shall inform the employee in writing of the right to join the system as
well as the fact that the employee shall be enrolled in the retirement
system on the ninety-first day after commencement of employment, unless
such employee files with the retirement system an application to opt out
of membership prior to such date. Any eligible employee who elects to
opt out of membership in the retirement system within the ninety day
period shall retain the right to join such system by subsequently filing
an application for membership so long as such employee remains in
covered employment.

(ii) Every current employee who is eligible for membership in the
retirement system on July first, two thousand twenty-four, and who is
not a member in the retirement system or any other public retirement
system of the city or state of New York, shall be enrolled in the
retirement system effective October first, two thousand twenty-four,
unless such employee files with the retirement system an application to
opt out of membership before October first, two thousand twenty-four.
Such automatic enrollment in the retirement system shall not be
construed to waive any of the eligibility requirements for previous
service credit.

(iii) The automatic enrollment of eligible employees as provided for
in this subparagraph shall not be construed to modify the rights and
obligations of any employee whose participation in the retirement system
is mandated by the rules and regulations of the retirement system or any
applicable law, and such mandated members may not opt out of membership.

(iv) If an employee who is automatically enrolled in the retirement
system pursuant to the provisions of this paragraph is a member of a
union, the retirement system shall provide written notice to the union
of the employee's enrollment within thirty days of the employee's
enrollment in the retirement system.

(v) The provisions of this subparagraph shall apply to full-time
employees and part-time employees. The provisions of this subparagraph
shall not apply to provisional employees.

(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 or by the provisions of subparagraph four of paragraph (b)
of this subdivision.

(g)(1) For purposes of this paragraph, the terms "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-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 members who 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.

(e) Notwithstanding any other provision of law, or any rule or
regulation, or the provisions of any retirement board resolution to the
contrary:

(1) on or after the first business day immediately following the
effective date of this paragraph, interest shall be allowed at the rate
of seven percent per annum, compounded annually, on the tax-deferred
accounts in the annuity savings fund of participants (i) who hold a
position represented by the recognized teacher organization for
collective bargaining purposes, or (ii) who held such a position at the
time they retired or discontinued service with vested rights to a
retirement allowance and elected to defer commencement of distribution
of their tax-deferred accounts in accordance with paragraph (c) of this
subdivision; and

(2) the provisions of subparagraph one of this paragraph shall not
affect the rate of interest being charged on new loans from the
tax-deferred annuity program, and the rate of interest that was being
charged on such loans immediately prior to the effective date of this
paragraph shall be used for new loans from the tax-deferred annuity
program made on or after the effective date of this paragraph, unless
the rules and regulations governing loans from the tax-deferred annuity
program are amended pursuant to paragraph (d) of this subdivision to
establish a different rate of interest applicable to such loans; and

(3) where a participant in the tax-deferred annuity program has
elected to transfer all or a portion of the amount credited to his or
her tax-deferred account in the annuity savings fund to a tax-deferred
account in the variable annuity savings fund, the retirement system
shall effectuate such transfer as expeditiously as is administratively
feasible.

* 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 pursuant to Title 10 of the United States Code, with the armed
forces of the United States or to service in the uniformed services
pursuant to Chapter 43 of Title 38 of the United States Code, and such
member died while on such active duty or service in the uniformed
services on or after June fourteenth, two thousand five while serving on
such active military duty or in the uniformed services.

(c) 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 any requirement that applications for
accidental disability be filed within a limited time period after the
happening of such accident shall not apply to a vested member
incapacitated as a result of a qualifying World Trade Center condition
as defined in section two of the retirement and social security law.

(d)(1)(i) 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 if any condition or impairment of
health is caused by a qualifying World Trade Center condition as defined
in section two of the retirement and social security law, it shall be
presumptive evidence that it was incurred in the performance and
discharge of duty and the natural and proximate result of an accident
not caused by such member's own willful negligence, unless the contrary
be proved by competent evidence.

(ii) The New York city board of education retirement board is hereby
authorized to promulgate rules and regulations to implement the
provisions of this paragraph.

(2)(i) 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 if a member who participated in World
Trade Center rescue, recovery or cleanup operations as defined in
section two of the retirement and social security law, and subsequently
retired on a service retirement, an ordinary disability retirement, an
accidental disability retirement, a performance of duty disability
retirement, or was separated from service with a vested right to
deferred payability of a retirement allowance and subsequent to such
retirement or separation is determined by the head of the retirement
system or applicable medical board to have a qualifying World Trade
Center condition, as defined in section two of the retirement and social
security law, upon such determination by the New York city board of
education retirement board or applicable medical board, it shall be
presumed that such disability was incurred in the performance and
discharge of duty as the natural and proximate result of an accident not
caused by such member's own willful negligence, and that the member
would have been physically or mentally incapacitated for the performance
and discharge of duty of the position from which he or she retired or
vested had the condition been known and fully developed at the time of
the member's retirement or separation from service with vested rights,
unless the contrary is proven by competent evidence.

(ii) The New York city board of education retirement board shall
consider a reclassification of the member's retirement or vesting as an
accidental disability retirement effective as of the date of such
reclassification.

(iii) Such member's retirement option shall not be changed as a result
of such reclassification.

(iv) The member's former employer at the time of the member's
retirement shall have an opportunity to be heard on the member's
application for reclassification by the New York city board of education
retirement board according to procedures developed by the New York city
board of education retirement board.

(v) The New York city board of education retirement board is hereby
authorized to promulgate rules and regulations to implement the
provisions of this paragraph.

(e) 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 if a retiree or vestee who: (1) has met
the criteria of paragraph (d) of this subdivision and retired on a
service or disability retirement, would have met the criteria if not
already retired on an accidental disability, or was separated from
service with a vested right to deferred payability of a retirement
allowance; and (2) has not been retired for more than twenty-five years;
and (3) dies from a qualifying World Trade Center condition, as defined
in section two of the retirement and social security law, as determined
by the applicable head of the retirement system or applicable medical
board, then unless the contrary be proven by competent evidence, such
retiree or vestee shall be deemed to have died as a natural and
proximate result of an accident sustained in the performance of duty and
not as a result of willful negligence on his or her part. Such retiree's
or vestee's eligible beneficiary, as set forth in title twenty-one of
the rules and regulation, shall be entitled to an accidental death
benefit as provided by title twenty-one of the rules and regulations,
however, for the purposes of determining the salary base upon which the
accidental death benefit is calculated, the retiree or vestee shall be
deemed to have died on the date of his or her retirement or separation
from service with vested rights. Upon the retiree's or vestee's death,
the eligible beneficiary shall make a written application to the head of
the retirement system within the time for filing an application for an
accidental death benefit as set forth in title twenty-one of the rules
and regulations requesting conversion of such retiree's service, vested
right or disability retirement benefit to an accidental death benefit.
At the time of such conversion, the eligible beneficiary shall
relinquish all rights to the prospective benefits payable under the
service or disability retirement benefit, or vested right to such
benefit, including any post-retirement death benefits, since the
retiree's or vestee's death. If the eligible beneficiary is not the only
beneficiary receiving or entitled to receive a benefit under the service
or disability retirement benefit (including, but not limited to,
post-retirement death benefits or benefits paid or payable pursuant to
the retiree's option selection), or that will be eligible under the
vested right the accidental death benefit payments to the eligible
beneficiary will be reduced by any amounts paid or payable to any other
beneficiary.

(f) 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 if a member who: (1) has met the criteria
of paragraph (d) of this subdivision; (2) dies in active service or
after separating from service with a vested right to deferred payability
of a retirement allowance, but prior to the payability of that
retirement allowance; and (3) dies from a qualifying World Trade Center
condition, as defined in section two of the retirement and social
security law, as determined by the applicable head of the retirement
system or applicable medical board, then unless the contrary be proven
by competent evidence, such member shall be deemed to have died as a
natural and proximate result of an accident sustained in the performance
of duty and not as a result of willful negligence on his or her part.
Such member's eligible beneficiary, as set forth in title twenty-one of
the rules and regulations shall be entitled to an accidental death
benefit provided he or she makes written application to the head of the
retirement system as set forth in title twenty-one of the rules and
regulations.

* 26. (a) Notwithstanding any other provision of this article or of
any general, special or local law to the contrary, and solely for the
purpose of determining eligibility for benefits under this section,
where:

(i) a member reported in person to such member's usual place of public
employment at the direction of such member's public employer or to any
alternate worksite as directed by such public employer, on or after
March first, two thousand twenty, provided that such alternate worksite
was not such member's home or residence;

(ii) such member contracted COVID-19 within forty-five days after
reporting to work as described in subparagraph (i) of this paragraph as
confirmed by a positive laboratory test or as diagnosed before or after
such member's death by a licensed, certified, registered or authorized
physician, nurse practitioner, or physician's assistant currently in
good standing in any state or the District of Columbia, or a physician,
nurse practitioner, or physician's assistant authorized to practice in
New York by executive order during the declared COVID-19 state of
emergency; and

(iii) such member died on or before December thirty-first, two
thousand twenty-four, and COVID-19 caused or contributed to such
member's death, as documented on such member's death certificate, or as
certified by a physician, nurse practitioner, or physician's assistant
described in subparagraph (ii) of this paragraph who determines with a
reasonable degree of medical certainty that COVID-19 caused or
contributed to the member's death, such member's statutory beneficiary
shall receive an accidental death benefit, unless such statutory
beneficiary elects to receive an ordinary death benefit.

(b) Any amount payable as a result of this subdivision shall be
reduced by any amount paid by such member's retirement system to any
recipient of ordinary death benefits under this article.

(c) (i) Notwithstanding any provision of this article or of any
general, special or local law to the contrary, and solely for the
purpose of determining eligibility for benefits under this section,
where a member:

(1) retired from his or her retirement system on or after March first,
two thousand twenty, and before July first, two thousand twenty;

(2) on or after March first, two thousand twenty, reported in person
to such member's usual place of public employment at the direction of
such member's public employer or to any alternate worksite as directed
by such public employer, provided that such alternate worksite was not
such member's home or residence;

(3) contracted COVID-19 within forty-five days after any such date of
reporting to work in person, as confirmed by a positive laboratory test
or as diagnosed before or after such member's death by a licensed,
certified, registered or authorized physician, nurse practitioner, or
physician's assistant currently in good standing in any state or the
District of Columbia, or a physician, nurse practitioner, or physician's
assistant authorized to practice in New York by executive order during
the declared COVID-19 state of emergency; and

(4) such member died on or before December thirty-first, two thousand
twenty, and COVID-19 caused or contributed to such member's death, as
documented on such member's death certificate, or as certified by a
physician, nurse practitioner, or physician's assistant described in
clause three of this subparagraph who determines with a reasonable
degree of medical certainty that COVID-19 caused or contributed to the
member's death, such member's statutory beneficiary shall receive an
accidental death benefit if such statutory beneficiary elects conversion
of the member's service or disability retirement benefit into an
accidental death benefit.

(ii) Such member's statutory beneficiary, as defined under this
section, for purposes of accidental death benefits payable from such
member's retirement system under this section, may, within ninety days
of such member's retirement or September first, two thousand twenty,
whichever is later, apply to such member's retirement system to request
the conversion of such member's service or disability retirement benefit
into an accidental death benefit. For purposes of the salary base upon
which the accidental death benefit is calculated, such member shall be
deemed to have died on the date of such member's retirement. At the time
of such conversion, such statutory beneficiary shall relinquish all
rights to the prospective benefits payable under the service or
disability retirement statute, including any post-retirement death
benefits, since such member's death. If the statutory beneficiary is not
the only beneficiary receiving or entitled to receive a benefit under
the service or disability retirement statute, including, but not limited
to, a post-retirement death benefit or benefit paid or payable pursuant
to the member's option selection, the accidental death benefit payments
to the statutory beneficiary will be reduced by any amounts paid or
payable to any other statutory beneficiary.

(d) In order to be eligible for the benefit described in this
subdivision, the applicable retirement system or systems are authorized
to promulgate rules and regulations to administer this benefit
including, but not limited to, requiring a statement to be filed
confirming the member contracted COVID-19 and the dates and locations of
the member's employment.

* NB Repealed December 31, 2024