§ 519. Expense fund. The expense fund shall be the fund from which
the expense of the administration of the retirement system shall be paid
exclusive of amounts payable as retirement allowances and as other
benefits provided herein. Contributions shall be made to the expense
fund as follows:

1. The retirement board shall determine the amount required to defray
the expenses allocated to those functions which directly or indirectly
affect the system's investment operations. This amount so determined
shall be collected from net investment income which shall include but
not be limited to interest, dividends, and realized gains and losses.

2. The retirement board shall determine annually the amount required
to defray the remaining estimated expenses in the ensuing fiscal year
and shall certify such amount to the commissioner of education who shall
apportion to each employer a proportionate part thereof as provided
under subdivision two of section five hundred twenty-one. Each employer
shall make payment for the amount so apportioned to him in the same way
as he shall make other payments provided for by this article.