senate Bill S2145

2013-2014 Legislative Session

Relates to the rate of regular interest used in the actuarial valuation of liabilities for the purpose of calculating contributions to retirement systems

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

do you support this bill?

Actions

view actions (1)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 11, 2013 referred to cities

S2145 - Bill Details

See Assembly Version of this Bill:
A2296
Current Committee:
Law Section:
New York City Administrative Code
Laws Affected:
Amd NYC Ad Cd, generally; amd ยง2575, Ed L

S2145 - Bill Texts

view summary

Relates to the rate of regular interest used in the actuarial valuation of liabilities for the purpose of calculating contributions to retirement systems; the making of contributions to such retirement systems; and the crediting of special interest and additional interest to members of such retirement systems.

view sponsor memo
BILL NUMBER:S2145

TITLE OF BILL:
An act
to amend the administrative code of city of New York, in
relation to the rate of regular interest used in the actuarial
valuation of liabilities for the purpose of calculating
contributions to the New York city employees' retirement
system, the New York city teachers' retirement system, the
police pension fund, subchapter two, the fire department
pension fund, subchapter two and the board of education
retirement system of such city by public employers and
other obligors required to make employer contributions to
such retirement systems, the establishment of the entry age
actuarial cost method of determining employer contributions
to such retirement systems, the making of contributions to
such retirement systems by such public employers and such
other obligors, and the crediting of special interest and
additional interest to members of such retirement systems,
and the allowance of interest on the funds of such retirement
systems; and to amend the education law, in relation to
employer contributions to the board of education retirement
system of such city

SUMMARY OF PROVISIONS:
This bill would establish at 7% per annum the
statutory rate of interest used by the New York City Employees'
Retirement System, Teachers' Retirement System, Board of Education
Retirement System, Police Pension Fund and Fire Department Pension
Fund (City retirement systems) in valuing retirement system
liabilities for the purpose of calculating employer contributions to
those systems, The proposed 7% valuation rate, which would be
applicable to employer contributions due for fiscal years 2011-12
through 2015-16, would replace the current 8% valuation rate which is
scheduled to expire on June 30, 2012. Only tier 1 and tier 2 members
may participate in the increased-take-home-pay (ITHP) program. Under
the bill, tier 1 and tier 2 members of the City retirement systems
would continue to have their member contribution and ITHP accounts
credited with interest at the current rate of 8 % per annum through
fiscal year 2015-16.

The bill also would provide for the calculation of employer
contributions to the City retirement systems in accordance with the
entry age actuarial cost method, beginning with the calculation of
contributions payable to the systems in fiscal year 2011-12. The
proposed method would replace the frozen initial liability method
currently used to calculate employer contributions.

Under the proposed funding method, the benefits to which individual
members are expected to become entitled would be funded, in general,
on a level basis over their expected working lifetimes through annual
employer contributions known as employer entry age normal

contributions, which would be calculated using relatively constant
entry age employer contribution rates applicable to individual
members. The Actuary for the City retirement systems, in addition to
calculating the employer entry age normal contributions each year as
of the second June thirtieth
preceding the fiscal year in which employer contributions are payable,
also would calculate and specifically identify unfunded accrued
liabilities for each retirement system as of each such June
thirtieth. The initial unfunded accrued liability for each retirement
system, calculated as of June 30, 2010, would be amortized over a
period of 22 fiscal years following its establishment, with the first
of 21 annual installments becoming payable in fiscal year 2011-12.
Subsequent unfunded accrued liabilities would be amortized over the
number of years specified
by statute, depending upon the nature of each such unfunded
accrued liability.

Most employers participating in the City retirement systems are
covered by current statutory provisions which specify the timing of
their contribution payments to the retirement system within
the.fiscal year. For example, the City is required to pay its
contributions for the fiscal year in 12 equal monthly installments.
The bill would require any participating employer which is not
covered by a time of payment provision to make its employer
contribution payments, beginning with payments due in fiscal year
2012-13, either (1) in total by January first of the fiscal year, or
(2) in 12 monthly installments, with each monthly installment to be
paid by the last day of each month. The bill also would require
participating employers to pay interest on overdue employer
contribution payments beginning with fiscal year 2012-13.

As will be discussed more fully below, the bill would provide a method
of funding variable supplements benefits payable by the City's police
and uniformed correction variable supplements funds to eligible
beneficiaries where such payments are statutorily guaranteed by the
City under current law, and the assets of the variable supplements
fund are insufficient to make such payments to all eligible
beneficiaries in any calendar year.

REASONS FOR SUPPORT: The boards of trustees of the
New York City
Employees' Retirement System, Teachers' Retirement System, Board of
Education Retirement System and Police Pension Fund have adopted
resolutions recommending enactment of the funding provisions set
forth in this bill, and the board of trustees of the New York City
Fire Department Pension Fund is expected to adopt a similar
resolution. In general, the Actuary for the retirement systems has
recommended such funding provisions based upon his evaluation of the
experience of the retirement systems and their financial situation,
and experience studies of the systems prepared by firms of actuarial
consultants in 2006 and 2011. Specifically, the Actuary recommends a
valuation interest rate of 7-1; through June 30, 2016 as reasonable

and justified based upon (1) the recent actual investment
performances of the retirement systems; (2) a study of the long-term
performance of the United States capital markets; (3) likely
expectations for future investment performance of the assets; and (4)
the relationships among economic assumptions used for actuarial
valuation purposes.

The Actuary intends the recommended 7% valuation rate for each of the
systems to be net of investment expenses paid by the retirement
systems from their investment earnings. Under current law, the
valuation rate is not net of investment expenses because
participating employers are required to repay such investment
expenses during the second fiscal year
after the fiscal year in which retirement system assets were drawn
upon. The bill would eliminate that specific repayment requirement.

The proposed entry age actuarial cost method of determining employer
contributions to the retirement systems has certain advantages over
the current frozen initial liability method. Under the current
method, the Actuary calculates separately for each retirement system
an employer normal contribution each year as of the second June
thirtieth preceding the fiscal year in which the normal contribution
is payable. That normal contribution calculation provides for the
total actuarial present value of future employer contributions to be
funded over the remaining working lifetimes of members. Additional
unfunded liabilities that may arise each year are not specifically
identified and amortized over a pre-determined number of years, but
rather are generally included as part of the calculation of the
normal contribution. This causes the normal contribution rate, and
hence the normal contribution, to fluctuate each year, depending on
the investment return on retirement system assets, the addition of
newly enacted benefits and certain other factors.

Under the Proposed entry age actuarial cost method, employer
contributions would tend to fluctuate less than under the current
method. This is because the entry age normal contributions for each
fiscal year would be calculated under the proposed method using
relatively constant employer rates of contribution applicable to
individual members which are necessary to fund their expected
benefits on a level basis over their expected working lifetimes.
Additional unfunded accrued liabilities would be specifically
identified and amortized over appropriate periods as provided by
statute.

The bill would cancel any remaining installments of unfunded accrued
liability calculated under current law, and would provide for the
calculation, as of June 34, 2010, of an initial unfunded accrued
liability under the proposed method that would be amortized over a
period of 22 fiscal years following its establishment, with the first
of 21 annual installments becoming payable in fiscal year 2011-12.
The 21 annual installments would be developed using the increasing
dollar payment method so that each installment after the first would

be increased by 3 over the immediately preceding installment. The
Actuary believes it is appropriate to use a slightly longer
amortization period for the initial unfunded accrued liability
calculated under the proposed method, in light of the significant
actuarial losses incurred by the retirement systems over the last 10
years, including those attributable to poor investment performance.

Unfunded accrued liabilities established in subsequent years would be
amortized in equal installments over periods which vary according to
the basis of such liabilities. Unfunded accrued liabilities
attributable to the following causes would be amortized over the
following periods; (1) benefit changes would be amortized over the
remaining working lifetimes of affected members, unless the
amortization period is otherwise established by statute, (2) changes
in the valuation rate of interest, actuarial tables and actuarial
methods would be amortized over 20 fiscal years and (3) actuarial
gains and losses would be amortized over 15 fiscal years.

Overall, the proposed entry age actuarial cost method and the proposed
amortization of the initial unfunded accrued liabilities develop
employer
contributions that reasonably follow the objective of
intergenerational equity whereby the retirement benefits of plan
participants are financed over the time period during which those
participants provide services to the citizens and taxpayers they
serve. Moreover, the Actuary has stated that the proposed entry age
actuarial cost method is used by more public employee retirement
systems in the United States than any other funding method.

Finally, as noted above, the bill would remedy.a problem in the
mechanism for funding the City police and uniformed correction
variable supplements funds. The Police Officer's Variable Supplements
Fund (POVSF) and the Police Superior Officers' Variable Supplements
Fund (PSOVSF) provide annual non-pension payments to eligible
beneficiaries of those funds which are statutorily guaranteed by the
City. As the result of poor investment returns on equity investments
of the main Police Pension Fund over the past decade, there have been
no transfers of assets from the main fund to the variable supplements
funds in accordance with the existing statutory mechanism for a
number of years. The Actuary has estimated that the POVSF currently
has sufficient assets to pay benefits for a few more years. The
PSOVSF, however, may no longer have sufficient assets to cover the
annual payments to eligible retirees due in December 2012. Absent
sufficient funds, the benefits due from the PSOVSF that are not
covered by existing PSOVSF assets would require funding directly from
the City of New York.

This bill would provide for the transfer of assets from the main
Police Pension Fund to the POVSF and the PSOVSF in any year in which
the assets of such variable supplements fund are insufficient to pay
variable supplements benefits. This approach is consistent with the
financing mechanics currently employed by the Actuary whereby

portions of the employer contributions to the main Police Pension
Fund each year represent amounts that are expected, at some point, to
be transferred to the related variable supplements funds.

The Correction Officers' Variable Supplements Fund (COVSF) has not
made variable supplements payments to eligible beneficiaries in
recent years because its assets are insufficient, and such payments
are not yet guaranteed by the City. The Actuary has stated that the
COVSF may not be obligated to pay benefits until current law requires
the City to guarantee such benefits in 2019. The bill, however, in a
manner similar to the approach proposed for the Police Pension Fund
and its variable supplements funds, would provide for the transfer of
assets from NYCERS to the COVSF in any year in which the City
guarantees the payment of variable supplements benefits, and the
assets of the COVSF are insufficient to pay such benefits.

This bill would implement a sound, well-conceived plan for funding the
retirement systems through fiscal year 2015-16.

Accordingly, the Mayor urges the earliest possible favorable
consideration of this proposal by the Legislature.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 2145                                                  A. 2296

                       2013-2014 Regular Sessions

                      S E N A T E - A S S E M B L Y

                            January 11, 2013
                               ___________

IN  SENATE -- Introduced by Sen. GOLDEN -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Cities

IN ASSEMBLY -- Introduced by M. of A. ABBATE -- read once  and  referred
  to the Committee on Governmental Employees

AN ACT to amend the administrative code of city of New York, in relation
  to  the  rate  of  regular interest used in the actuarial valuation of
  liabilities for the purpose of calculating contributions  to  the  New
  York  city  employees'  retirement system, the New York city teachers'
  retirement system, the police pension fund, subchapter two,  the  fire
  department  pension  fund,  subchapter  two and the board of education
  retirement system of such city by public employers and other  obligors
  required  to  make  employer contributions to such retirement systems,
  the establishment of the entry age actuarial cost method of  determin-
  ing  employer  contributions to such retirement systems, the making of
  contributions to such retirement systems by such public employers  and
  such  other  obligors, and the crediting of special interest and addi-
  tional interest to members of such retirement systems, and the  allow-
  ance of interest on the funds of such retirement systems; and to amend
  the  education law, in relation to employer contributions to the board
  of education retirement system of such city

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subparagraph (a) of paragraph 1 of subdivision b of section
13-127  of the administrative code of the city of New York is amended by
adding two new items (i-a) and (i-b) to read as follows:
  (I-A) ALL UNFUNDED  ACCRUED  LIABILITY  INSTALLMENTS  AS  REQUIRED  BY
SECTION 13-638.2 OF THIS TITLE OR ANY OTHER PROVISION OF LAW; AND
  (I-B) ANY OTHER PAYMENTS TO THE CONTINGENT RESERVE FUND AS REQUIRED BY
APPLICABLE LAW; AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06653-01-3

S. 2145                             2                            A. 2296

  S  2.  Subparagraph  (c)  of  paragraph  1 of subdivision b of section
13-127 of the administrative code of the city of New York is amended  by
adding a new item (iv) to read as follows:
  (IV)  THE CITY AND ALL OTHER RESPONSIBLE OBLIGORS (AS DEFINED IN PARA-
GRAPH TEN OF SUBDIVISION A OF SECTION 13-638.2 OF THIS TITLE) SHALL MAKE
ALL PAYMENTS TO THE RETIREMENT SYSTEM  REQUIRED  BY  APPLICABLE  LAW  IN
ACCORDANCE  WITH  THE TIME OF PAYMENT REQUIREMENTS SET FORTH IN SUBDIVI-
SION C OF SECTION 13-133 OF THIS CHAPTER.  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 THIS TITLE).  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.
  S 3. Item (i) of subparagraph (a) of paragraph 2 of subdivision  b  of
section  13-127  of  the administrative code of the city of New York, as
amended by chapter 85 of the  laws  of  2000,  is  amended  to  read  as
follows:
  (i)  NOTWITHSTANDING THE SUCCEEDING PROVISIONS OF THIS SUBPARAGRAPH OR
THE PROVISIONS OF SUBPARAGRAPH (A-ONE), (B) OR (C)  OF  THIS  PARAGRAPH,
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 SUBPARAGRAPH (D) OF THIS PARAGRAPH. Upon the basis of the
latest mortality and other tables herein authorized and  regular  inter-
est,  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 this title,  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, provided, howev-
er, that in determining such total liability as of June thirtieth, nine-
teen 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.
  S 4. Paragraph 2 of subdivision b of section 13-127 of the administra-
tive  code  of  the city of New York is amended by adding a new subpara-
graph (d) to read as follows:
  (D) (I) NOTWITHSTANDING THE PRECEDING SUBPARAGRAPHS OF THIS  PARAGRAPH
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 SUBPARAGRAPH IN A MANNER CONSISTENT WITH THE ENTRY AGE

S. 2145                             3                            A. 2296

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 THIS TITLE.
  (II) IN CALCULATING THE ENTRY AGE NORMAL CONTRIBUTION PAYABLE  IN  ANY
SUCH  FISCAL  YEAR PURSUANT TO THIS SUBPARAGRAPH, THE ACTUARY, IN HIS OR
HER DISCRETION, MAY MAKE CERTAIN ADJUSTMENTS IN THE CALCULATION  METHOD-
OLOGY, PROVIDED THAT SUCH ADJUSTMENTS ARE GENERALLY ACCEPTED AS CONSIST-
ENT  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 METHOD-
OLOGY, IN THE DISCRETION OF THE ACTUARY, MAY INCLUDE, BUT ARE NOT LIMIT-
ED TO, THE CALCULATION OF THE ENTRY AGE NORMAL CONTRIBUTION  (A)  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, (B) ON AN AGGREGATE
BASIS FOR ALL MEMBERS OR (C) 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 ITEM.
  (III)  FOR  EACH  SUCH  FISCAL  YEAR,  THE  ACTUARY,  IN  HIS  OR  HER
DISCRETION,  SHALL  DETERMINE, IN ACCORDANCE WITH THE PROVISIONS OF ITEM
(II) OF THIS SUBPARAGRAPH, THE METHODOLOGY FOR CALCULATING THE ENTRY AGE
NORMAL CONTRIBUTION PAYABLE FOR THAT PARTICULAR FISCAL YEAR.
  (IV) THE METHODOLOGY DETERMINED BY THE ACTUARY IN ACCORDANCE WITH ITEM
(III) OF THIS SUBPARAGRAPH MAY PROVIDE FOR THE ACTUARY TO CALCULATE  THE
ENTRY  AGE  NORMAL  CONTRIBUTION  ON  AN  INDIVIDUAL MEMBER BASIS BY (A)
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  (B)  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 ITEM (II) OF THIS SUBPARAGRAPH.
  (V) IN THE ALTERNATIVE, THE METHODOLOGY DETERMINED BY THE  ACTUARY  IN
ACCORDANCE  WITH  ITEM  (III)  OF  THIS SUBPARAGRAPH 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 ITEM (II) OF THIS SUBPARAGRAPH.
  (VI) IN THE ALTERNATIVE, THE METHODOLOGY DETERMINED BY THE ACTUARY  IN
ACCORDANCE  WITH  ITEM  (III)  OF  THIS SUBPARAGRAPH 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

S. 2145                             4                            A. 2296

ENTRY AGE ACTUARIAL COST METHOD AND THE PROVISIONS OF ITEM (II) OF  THIS
SUBPARAGRAPH.
  (VII)  (A)  WHERE THE METHODOLOGY DETERMINED BY THE ACTUARY IN ACCORD-
ANCE WITH ITEM (III) OF THIS SUBPARAGRAPH 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  WORK-
ING 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.
  (B) WHERE THE METHODOLOGY DETERMINED BY THE ACTUARY IN ACCORDANCE WITH
ITEM (III) OF THIS SUBPARAGRAPH 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.
  S 5. Paragraph 1 of subdivision c of section 13-133 of the administra-
tive code of the city of New York is amended by adding  a  new  subpara-
graph (G) to read as follows:
  (G) WHERE A RESPONSIBLE OBLIGOR (AS DEFINED IN PARAGRAPH TEN OF SUBDI-
VISION A OF SECTION 13-638.2 OF THIS TITLE) 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 SUBDIVISION 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.
  S 6. Subparagraph 3 of paragraph  (e)  of  subdivision  4  of  section
13-194 of the administrative code of the city of New York, as amended by
chapter 255 of the laws of 2000, is amended to read as follows:
  (3) Except as otherwise provided in SUBDIVISION ELEVEN OF THIS SECTION
AND  IN  sections 13-195 and 13-195.1 of this chapter, nothing contained
in this section shall create or impose any obligation on the part of the
retirement system, or the funds or monies  thereof,  or  authorize  such
funds  or  monies  to be appropriated or used for any payment under this
section or for any purpose thereof.
  S 7. Section 13-194 of the administrative code of the city of New York
is amended by adding a new subdivision 11 to read as follows:
  11. IN THE EVENT THAT, FOR ANY CALENDAR  YEAR  COVERED  BY  A  PAYMENT
GUARANTEE,  THE  ASSETS  OF THE VARIABLE SUPPLEMENTS FUND ARE NOT SUFFI-
CIENT TO PAY BENEFITS UNDER THIS SECTION FOR SUCH YEAR, AN AMOUNT SUFFI-
CIENT TO PAY SUCH BENEFITS SHALL BE  APPROPRIATED  FROM  THE  CONTINGENT
RESERVE  FUND OF THE RETIREMENT SYSTEM AND TRANSFERRED TO THE CORRECTION
OFFICERS' VARIABLE SUPPLEMENTS FUND.

S. 2145                             5                            A. 2296

  S 8. Subparagraph (a) of paragraph  1  of  subdivision  b  of  section
13-228  of the administrative code of the city of New York is amended by
adding two new items (i-a) and (i-b) to read as follows:
  (I-A)  ALL  UNFUNDED  ACCRUED  LIABILITY  INSTALLMENTS  AS REQUIRED BY
SECTION 13-638.2 OF THIS TITLE OR ANY OTHER PROVISION OF LAW; AND
  (I-B) ANY OTHER PAYMENTS TO THE CONTINGENT RESERVE FUND AS REQUIRED BY
APPLICABLE LAW; AND
  S 9. Subparagraph (c) of paragraph  1  of  subdivision  b  of  section
13-228  of the administrative code of the city of New York is amended by
adding a new item (iv) to read as follows:
  (IV) THE CITY SHALL MAKE ALL PAYMENTS TO THE PENSION FUND REQUIRED  BY
APPLICABLE  LAW  IN ACCORDANCE WITH THE TIME OF PAYMENT REQUIREMENTS SET
FORTH IN SUBDIVISION C OF SECTION 13-231  OF  THIS  CHAPTER.  COMMENCING
WITH PAYMENTS DUE IN FISCAL YEAR TWO THOUSAND TWELVE--TWO THOUSAND THIR-
TEEN,  IN  ANY  FISCAL  YEAR  IN WHICH THE CITY DOES NOT MAKE ALL OR ANY
PORTION OF SUCH REQUIRED PAYMENTS  TO  THE  PENSION  FUND  IN  A  TIMELY
MANNER,  THE  CITY SHALL BE REQUIRED TO PAY INTEREST TO THE PENSION FUND
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 SUBDI-
VISION A OF SECTION 13-638.2 OF THIS TITLE). THE CITY  SHALL  MAKE  SUCH
INTEREST  PAYMENTS  ON OVERDUE AMOUNTS TO THE PENSION FUND IN THE MANNER
AND AT SUCH TIME AS THE ACTUARY DEEMS APPROPRIATE.
  S 10. Item (i) of subparagraph (a) of paragraph 2 of subdivision b  of
section  13-228  of  the administrative code of the city of New York, as
amended by chapter 598 of the laws  of  1996,  is  amended  to  read  as
follows:
  (i)  NOTWITHSTANDING THE SUCCEEDING PROVISIONS OF THIS SUBPARAGRAPH OR
THE PROVISIONS OF SUBPARAGRAPH (A-ONE), (B), (C) OR (D)  OF  THIS  PARA-
GRAPH, FOR FISCAL YEAR TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE, AND FOR
EACH FISCAL YEAR THEREAFTER, THE AMOUNT OF THE NORMAL CONTRIBUTION PAYA-
BLE  TO  THE CONTINGENT RESERVE FUND SHALL BE DETERMINED PURSUANT TO THE
PROVISIONS OF SUBPARAGRAPH (E) OF THIS PARAGRAPH. Upon the basis of  the
latest  mortality  and other tables herein authorized and regular inter-
est, 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 this subchapter, in article elev-
en of the retirement and social security law, article fourteen  of  such
law  (if  and when applicable) and in any other law prescribing benefits
payable by the pension fund 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, provided, however, that  in  determining  such
total  liability for all benefits 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.
  S 11. Paragraph 2 of subdivision b of section 13-228 of  the  adminis-
trative code of the city of New York is amended by adding a new subpara-
graph (e) to read as follows:

S. 2145                             6                            A. 2296

  (E)  (I) NOTWITHSTANDING THE PRECEDING SUBPARAGRAPHS OF THIS PARAGRAPH
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 SUBPARAGRAPH 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 PENSION FUND IN PARAGRAPH
TWO OF SUBDIVISION B OF SECTION 13-638.2 OF THIS TITLE.
  (II) IN CALCULATING THE ENTRY AGE NORMAL CONTRIBUTION PAYABLE  IN  ANY
SUCH  FISCAL  YEAR PURSUANT TO THIS SUBPARAGRAPH, THE ACTUARY, IN HIS OR
HER DISCRETION, MAY MAKE CERTAIN ADJUSTMENTS IN THE CALCULATION  METHOD-
OLOGY, PROVIDED THAT SUCH ADJUSTMENTS ARE GENERALLY ACCEPTED AS CONSIST-
ENT  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 METHOD-
OLOGY, IN THE DISCRETION OF THE ACTUARY, MAY INCLUDE, BUT ARE NOT LIMIT-
ED TO, THE CALCULATION OF THE ENTRY AGE NORMAL CONTRIBUTION  (A)  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, (B) ON AN AGGREGATE
BASIS FOR ALL MEMBERS OR (C) 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 ITEM.
  (III)  FOR  EACH  SUCH  FISCAL  YEAR,  THE  ACTUARY,  IN  HIS  OR  HER
DISCRETION,  SHALL  DETERMINE, IN ACCORDANCE WITH THE PROVISIONS OF ITEM
(II) OF THIS SUBPARAGRAPH, THE METHODOLOGY FOR CALCULATING THE ENTRY AGE
NORMAL CONTRIBUTION PAYABLE FOR THAT PARTICULAR FISCAL YEAR.
  (IV) THE METHODOLOGY DETERMINED BY THE ACTUARY IN ACCORDANCE WITH ITEM
(III) OF THIS SUBPARAGRAPH MAY PROVIDE FOR THE ACTUARY TO CALCULATE  THE
ENTRY  AGE  NORMAL  CONTRIBUTION  ON  AN  INDIVIDUAL MEMBER BASIS BY (A)
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  (B)  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 ITEM (II) OF THIS SUBPARAGRAPH.
  (V) IN THE ALTERNATIVE, THE METHODOLOGY DETERMINED BY THE  ACTUARY  IN
ACCORDANCE  WITH  ITEM  (III)  OF  THIS SUBPARAGRAPH 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

S. 2145                             7                            A. 2296

WHICH  HE  OR  SHE  DEEMS APPROPRIATE, AND WHICH ARE CONSISTENT WITH THE
PROVISIONS OF ITEM (II) OF THIS SUBPARAGRAPH.
  (VI)  IN THE ALTERNATIVE, THE METHODOLOGY DETERMINED BY THE ACTUARY IN
ACCORDANCE WITH ITEM (III) OF THIS  SUBPARAGRAPH  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 ITEM (II) OF THIS
SUBPARAGRAPH.
  (VII) (A) WHERE THE METHODOLOGY DETERMINED BY THE ACTUARY  IN  ACCORD-
ANCE  WITH ITEM (III) OF THIS SUBPARAGRAPH 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 WORK-
ING 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.
  (B) WHERE THE METHODOLOGY DETERMINED BY THE ACTUARY IN ACCORDANCE WITH
ITEM  (III)  OF THIS SUBPARAGRAPH 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.
  S  12.  Paragraph 3 of subdivision b of section 13-271 of the adminis-
trative code of the city of New York, as amended by chapter 247  of  the
laws of 1988, is amended to read as follows:
  (3)  Except as otherwise provided in SUBDIVISION F OF THIS SECTION AND
IN sections 13-232 and 13-232.1 of this chapter,  nothing  contained  in
this  subchapter  shall  create  or impose any obligation on the part of
pension fund, subchapter one or pension  fund,  subchapter  two  or  the
funds  or monies thereof, or authorize such funds or monies to be appro-
priated or used for any payment under this subchapter or for any purpose
thereof.
  S 13. Section 13-271 of the administrative code of  the  city  of  New
York is amended by adding a new subdivision f to read as follows:
  F.  IN  THE EVENT THAT THE ASSETS OF THE VARIABLE SUPPLEMENTS FUND ARE
NOT SUFFICIENT TO PAY BENEFITS UNDER THIS SECTION FOR ANY CALENDAR YEAR,
AN AMOUNT SUFFICIENT TO PAY SUCH BENEFITS SHALL BE APPROPRIATED FROM THE
CONTINGENT RESERVE FUND OF PENSION FUND, SUBCHAPTER TWO AND  TRANSFERRED
TO THE POLICE OFFICERS' VARIABLE SUPPLEMENTS FUND.
  S  14.  Paragraph 3 of subdivision b of section 13-281 of the adminis-
trative code of the city of New York, as amended by chapter 479  of  the
laws of 1993, is amended to read as follows:
  (3)  Except as otherwise provided in SUBDIVISION F OF THIS SECTION AND
IN sections 13-232, 13-232.2  and  13-232.3  of  this  chapter,  nothing
contained  in  this  subchapter shall create or impose any obligation on
the part of pension fund, subchapter one or pension fund, subchapter two
or the funds or monies thereof, or authorize such funds or monies to  be
appropriated  or  used  for any payment under this subchapter or for any
purpose thereof.

S. 2145                             8                            A. 2296

  S 15. Section 13-281 of the administrative code of  the  city  of  New
York is amended by adding a new subdivision f to read as follows:
  F.  IN  THE EVENT THAT THE ASSETS OF THE VARIABLE SUPPLEMENTS FUND ARE
NOT SUFFICIENT TO PAY BENEFITS UNDER THIS SECTION FOR ANY CALENDAR YEAR,
AN AMOUNT SUFFICIENT TO PAY SUCH BENEFITS SHALL BE APPROPRIATED FROM THE
CONTINGENT RESERVE FUND OF PENSION FUND, SUBCHAPTER TWO AND  TRANSFERRED
TO THE POLICE SUPERIOR OFFICERS' VARIABLE SUPPLEMENTS FUND.
  S  16.  Subparagraph  (a)  of  paragraph 1 of subdivision b of section
13-331 of the administrative code of the city of New York is amended  by
adding two new items (i-a) and (i-b) to read as follows:
  (I-A)  ALL  UNFUNDED  ACCRUED  LIABILITY  INSTALLMENTS  AS REQUIRED BY
SECTION 13-638.2 OF THIS TITLE OR ANY OTHER PROVISION OF LAW; AND
  (I-B) ANY OTHER PAYMENTS TO THE CONTINGENT RESERVE FUND AS REQUIRED BY
APPLICABLE LAW; AND
  S 17. Subparagraph (c) of paragraph 1  of  subdivision  b  of  section
13-331  of the administrative code of the city of New York is amended by
adding a new item (iv) to read as follows:
  (IV) THE CITY SHALL MAKE ALL PAYMENTS TO THE PENSION FUND REQUIRED  BY
APPLICABLE  LAW  IN ACCORDANCE WITH THE TIME OF PAYMENT REQUIREMENTS SET
FORTH IN SUBDIVISION C OF SECTION 13-334  OF  THIS  CHAPTER.  COMMENCING
WITH PAYMENTS DUE IN FISCAL YEAR TWO THOUSAND TWELVE--TWO THOUSAND THIR-
TEEN,  IN  ANY  FISCAL  YEAR  IN WHICH THE CITY DOES NOT MAKE ALL OR ANY
PORTION OF SUCH REQUIRED PAYMENTS  TO  THE  PENSION  FUND  IN  A  TIMELY
MANNER,  THE  CITY SHALL BE REQUIRED TO PAY INTEREST TO THE PENSION FUND
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 SUBDI-
VISION A OF SECTION 13-638.2 OF THIS TITLE). THE CITY  SHALL  MAKE  SUCH
INTEREST  PAYMENTS  ON OVERDUE AMOUNTS TO THE PENSION FUND IN THE MANNER
AND AT SUCH TIME AS THE ACTUARY DEEMS APPROPRIATE.
  S 18. Item (i) of subparagraph (a) of paragraph 2 of subdivision b  of
section  13-331  of  the administrative code of the city of New York, as
amended by chapter 249 of the laws  of  1996,  is  amended  to  read  as
follows:
  (i)  NOTWITHSTANDING THE SUCCEEDING PROVISIONS OF THIS SUBPARAGRAPH OR
THE PROVISIONS OF SUBPARAGRAPH (A-ONE), (B), (C) OR (D)  OF  THIS  PARA-
GRAPH, FOR FISCAL YEAR TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE, AND FOR
EACH FISCAL YEAR THEREAFTER, THE AMOUNT OF THE NORMAL CONTRIBUTION PAYA-
BLE  TO  THE CONTINGENT RESERVE FUND SHALL BE DETERMINED PURSUANT TO THE
PROVISIONS OF SUBPARAGRAPH (E) OF THIS PARAGRAPH. Upon the basis of  the
latest  mortality  and other tables herein authorized and regular inter-
est, 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 this subchapter, in article elev-
en of the retirement and social  security  law  and  in  any  other  law
prescribing  benefits  payable  by  the  pension fund, 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,  provided,  however,
that  in  determining  such  total liability for all benefits 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

S. 2145                             9                            A. 2296

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.
  S  19.  Paragraph 2 of subdivision b of section 13-331 of the adminis-
trative code of the city of New York is amended by adding a new subpara-
graph (e) to read as follows:
  (E) (I) NOTWITHSTANDING THE PRECEDING SUBPARAGRAPHS OF THIS  PARAGRAPH
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 SUBPARAGRAPH 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 PENSION FUND IN PARAGRAPH
TWO OF SUBDIVISION B OF SECTION 13-638.2 OF THIS TITLE.
  (II)  IN  CALCULATING THE ENTRY AGE NORMAL CONTRIBUTION PAYABLE IN ANY
SUCH FISCAL YEAR PURSUANT TO THIS SUBPARAGRAPH, THE ACTUARY, IN  HIS  OR
HER  DISCRETION, MAY MAKE CERTAIN ADJUSTMENTS IN THE CALCULATION METHOD-
OLOGY, PROVIDED THAT SUCH ADJUSTMENTS ARE GENERALLY ACCEPTED AS CONSIST-
ENT 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  METHOD-
OLOGY, IN THE DISCRETION OF THE ACTUARY, MAY INCLUDE, BUT ARE NOT LIMIT-
ED  TO,  THE  CALCULATION OF THE ENTRY AGE NORMAL CONTRIBUTION (A) 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,  (B)  ON  AN  AGGREGATE
BASIS  FOR ALL MEMBERS OR (C) 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 ITEM.
  (III)  FOR  EACH  SUCH  FISCAL  YEAR,  THE  ACTUARY,  IN  HIS  OR  HER
DISCRETION, SHALL DETERMINE, IN ACCORDANCE WITH THE PROVISIONS  OF  ITEM
(II) OF THIS SUBPARAGRAPH, THE METHODOLOGY FOR CALCULATING THE ENTRY AGE
NORMAL CONTRIBUTION PAYABLE FOR THAT PARTICULAR FISCAL YEAR.
  (IV) THE METHODOLOGY DETERMINED BY THE ACTUARY IN ACCORDANCE WITH ITEM
(III)  OF THIS SUBPARAGRAPH MAY PROVIDE FOR THE ACTUARY TO CALCULATE THE
ENTRY AGE NORMAL CONTRIBUTION ON  AN  INDIVIDUAL  MEMBER  BASIS  BY  (A)
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 (B) 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 ITEM (II) OF THIS SUBPARAGRAPH.
  (V)  IN  THE ALTERNATIVE, THE METHODOLOGY DETERMINED BY THE ACTUARY IN
ACCORDANCE WITH ITEM (III) OF THIS  SUBPARAGRAPH  MAY  PROVIDE  FOR  THE
ACTUARY  TO  CALCULATE THE ENTRY AGE NORMAL CONTRIBUTION ON AN AGGREGATE

S. 2145                            10                            A. 2296

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 ITEM (II) OF THIS SUBPARAGRAPH.
  (VI) IN THE ALTERNATIVE, THE METHODOLOGY DETERMINED BY THE ACTUARY  IN
ACCORDANCE  WITH  ITEM  (III)  OF  THIS SUBPARAGRAPH 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 ITEM (II) OF  THIS
SUBPARAGRAPH.
  (VII)  (A)  WHERE THE METHODOLOGY DETERMINED BY THE ACTUARY IN ACCORD-
ANCE WITH ITEM (III) OF THIS SUBPARAGRAPH 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  WORK-
ING 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.
  (B) WHERE THE METHODOLOGY DETERMINED BY THE ACTUARY IN ACCORDANCE WITH
ITEM (III) OF THIS SUBPARAGRAPH 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.
  S 20. Paragraph 1 of subdivision a of section 13-527 of  the  adminis-
trative  code  of  the  city  of  New  York is amended by adding two new
subparagraphs (a-1) and (a-2) to read as follows:
  (A-1) ALL UNFUNDED  ACCRUED  LIABILITY  INSTALLMENTS  AS  REQUIRED  BY
SECTION 13-638.2 OF THIS TITLE OR ANY OTHER PROVISION OF LAW; AND
  (A-2) ANY OTHER PAYMENTS TO THE CONTINGENT RESERVE FUND AS REQUIRED BY
APPLICABLE LAW; AND
  S  21.  Paragraph 3 of subdivision a of section 13-527 of the adminis-
trative code of the city of New York is amended by adding a new subpara-
graph (iv) to read as follows:
  (IV) THE CITY AND ALL OTHER RESPONSIBLE OBLIGORS (AS DEFINED IN  PARA-
GRAPH TEN OF SUBDIVISION A OF SECTION 13-638.2 OF THIS TITLE) SHALL MAKE
ALL  PAYMENTS  TO  THE  RETIREMENT  SYSTEM REQUIRED BY APPLICABLE LAW IN
ACCORDANCE WITH THE TIME OF PAYMENT REQUIREMENTS SET FORTH  IN  SUBDIVI-
SION  (C)  OF  SECTION  13-533 OF THIS CHAPTER.  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

S. 2145                            11                            A. 2296

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 THIS TITLE).  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.
  S 22. Paragraph 1 of subdivision b of section 13-527 of  the  adminis-
trative  code  of  the city of New York, as amended by chapter 85 of the
laws of 2000, is amended to read as follows:
  (1) NOTWITHSTANDING THE SUCCEEDING PROVISIONS OF THIS PARAGRAPH OR THE
PROVISIONS OF PARAGRAPH ONE-A, TWO, THREE OR FOUR OF  THIS  SUBDIVISION,
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 PARAGRAPH FIVE OF THIS SUBDIVISION. Upon the basis of the
latest mortality and other tables herein authorized and  regular  inter-
est,  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 this chapter, 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  contributors  and beneficiaries, excluding the liability on account
of future increased-take-home-pay contributions, if any, and the liabil-
ity 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  reserve-for-increased-take-home-pay
contributions, if any, (b) the liability on account of future city obli-
gations  under  the  provisions  of  subdivision  twenty  of section two
hundred forty-three of the military law, to pay in behalf  of  contribu-
tors  qualifying  for such benefit, member contributions with respect to
certain periods of the military service of such  contributors,  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.
  S  23.  Subdivision  b of section 13-527 of the administrative code of
the city of New York is amended by adding a new paragraph 5 to  read  as
follows:
  (5)  (A)  NOTWITHSTANDING THE PRECEDING PARAGRAPHS OF THIS SUBDIVISION
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 PARAGRAPH 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

S. 2145                            12                            A. 2296

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 THIS TITLE.
  (B)  IN  CALCULATING  THE ENTRY AGE NORMAL CONTRIBUTION PAYABLE IN ANY
SUCH FISCAL YEAR PURSUANT TO THIS PARAGRAPH, 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 (I) ON AN INDIVIDUAL
MEMBER BASIS BY CALCULATING THE AMOUNT OF THE ENTRY AGE NORMAL  CONTRIB-
UTION  ATTRIBUTABLE  TO EACH INDIVIDUAL MEMBER, AND THEN ADDING TOGETHER
SUCH INDIVIDUAL MEMBER AMOUNTS, (II)  ON  AN  AGGREGATE  BASIS  FOR  ALL
MEMBERS OR (III) 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 SUBPARAGRAPH.
  (C) FOR EACH SUCH FISCAL YEAR, THE ACTUARY, IN HIS OR HER  DISCRETION,
SHALL  DETERMINE,  IN ACCORDANCE WITH THE PROVISIONS OF SUBPARAGRAPH (B)
OF THIS PARAGRAPH, 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
SUBPARAGRAPH (C) OF THIS PARAGRAPH MAY PROVIDE FOR THE ACTUARY TO CALCU-
LATE THE ENTRY AGE NORMAL CONTRIBUTION ON AN INDIVIDUAL MEMBER BASIS  BY
(I) MULTIPLYING THE ENTRY AGE NORMAL CONTRIBUTION RATE FOR EACH INDIVID-
UAL  MEMBER,  AS DETERMINED BY THE ACTUARY, BY THE SALARY EXPECTED TO BE
PAID TO THAT MEMBER DURING THE FISCAL YEAR IN WHICH SUCH NORMAL CONTRIB-
UTION IS PAYABLE, AND (II) 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 SUBPARAGRAPH (B) OF THIS PARAGRAPH.
  (E) IN THE ALTERNATIVE, THE METHODOLOGY DETERMINED BY THE  ACTUARY  IN
ACCORDANCE  WITH  SUBPARAGRAPH (C) OF THIS PARAGRAPH 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 SUBPARAGRAPH (B) OF THIS PARAGRAPH.
  (F) IN THE ALTERNATIVE, THE METHODOLOGY DETERMINED BY THE  ACTUARY  IN
ACCORDANCE  WITH  SUBPARAGRAPH (C) OF THIS PARAGRAPH 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  SUBPARAGRAPH  (B)
OF THIS PARAGRAPH.
  (G)  (I) WHERE THE METHODOLOGY DETERMINED BY THE ACTUARY IN ACCORDANCE
WITH SUBPARAGRAPH (C) OF THIS PARAGRAPH REQUIRES THE DETERMINATION OF AN

S. 2145                            13                            A. 2296

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  WORK-
ING 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.
  (II) WHERE THE METHODOLOGY DETERMINED BY  THE  ACTUARY  IN  ACCORDANCE
WITH SUBPARAGRAPH (C) OF THIS PARAGRAPH 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.
  S  24. Subdivision (c) of section 13-533 of the administrative code of
the city of New York is amended by adding a new paragraph 2-a to read as
follows:
  (2-A) WHERE A RESPONSIBLE OBLIGOR (AS  DEFINED  IN  PARAGRAPH  TEN  OF
SUBDIVISION  A  OF  SECTION  13-638.2 OF THIS TITLE) 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  SUBDIVISION  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  (A) IN TOTAL ON OR BEFORE JANUARY FIRST OF
SUCH FISCAL YEAR, OR (B) IN TWELVE EQUAL MONTHLY INSTALLMENTS, AS DETER-
MINED BY THE ACTUARY, WITH EACH MONTHLY INSTALLMENT TO  BE  PAID  ON  OR
BEFORE THE LAST DAY OF EACH MONTH.
  S 25. Paragraph 2 of subdivision b of section 13-638.2 of the adminis-
trative  code of city of New York, as amended by chapter 180 of the laws
of 2011, is amended to read as follows:
  (2) With respect to each retirement  system,  such  rate  of  interest
shall be as hereinafter set forth in this paragraph:

                                                First day and
                                                last day of
                   Rate of interest             fiscal year or
                   per centum per               series of fiscal
Retirement         annum, compounded            years for which
System             annually                     rate is effective
________________________________________________________________________
NYCERS             [8] 7%                       July 1, [2004] 2011 to
                                                June 30, [2012] 2016
NYCTRS             [8] 7%                       July 1, [2004] 2011 to
                                                June 30, [2012] 2016
PPF                [8] 7%                       July 1, [2004] 2011 to
                                                June 30, [2012] 2016
FPF                [8] 7%                       July 1, [2004] 2011 to
                                                June 30, [2012] 2016
BERS               [8] 7%                       July 1, [2004] 2011 to

S. 2145                            14                            A. 2296

                                                June 30, [2012] 2016

S  26.  Paragraph 2 of subdivision f of section 13-638.2 of the adminis-
trative code of the city of New York, as amended by chapter 180  of  the
laws of 2011, is amended to read as follows:
  (2)  Such  special  interest shall be allowed at the rates and for the
periods set forth below in this paragraph:

                                                First day and
                                                last day of
                   Rate of interest             fiscal year or
                   per centum per               series of fiscal
Retirement         annum, compounded            years for which
System             annually                     rate is effective
________________________________________________________________________
NYCERS              1 1/4%                      July 1, [2004] 2011 to
                                                June 30, [2012] 2016
NYCTRS              1 1/4%                      July 1, [2004] 2011 to
                                                June 30, [2012] 2016
PPF                 1 1/4%                      July 1, [2004] 2011 to
                                                June 30, [2012] 2016
FPF                 1 1/4%                      July 1, [2004] 2011 to
                                                June 30, [2012] 2016
BERS                1 1/4%                      July 1, [2004] 2011 to
                                                June 30, [2012] 2016

  S 27. Paragraph 2 of subdivision g of section 13-638.2 of the adminis-
trative code of the city of New York, as amended by chapter 180  of  the
laws of 2011, is amended to read as follows:
  (2)  Such  additional  interest shall be included at the rates and for
the periods set forth below in this paragraph:

                                                First day and
                                                last day of
                   Rate of interest             fiscal year or
                   per centum per               series of fiscal
Retirement         annum, compounded            years for which
System             annually                     rate is effective
________________________________________________________________________
NYCERS              1 1/4%                      July 1, [2004] 2011 to
                                                June 30, [2012] 2016
NYCTRS              1 1/4%                      July 1, [2004] 2011 to
                                                June 30, [2012] 2016
PPF                 1 1/4%                      July 1, [2004] 2011 to
                                                June 30, [2012] 2016
FPF                 1 1/4%                      July 1, [2004] 2011 to
                                                June 30, [2012] 2016
BERS                1 1/4%                      July 1, [2004] 2011 to
                                                June 30, [2012] 2016

  S 28. Paragraph 2 of subdivision i of section 13-638.2 of the adminis-
trative code of the city of New York, as amended by chapter 180  of  the
laws of 2011, is amended to read as follows:
  (2)  Such supplementary interest shall be allowed at the rates and for
the periods set forth below in this paragraph:

S. 2145                            15                            A. 2296

                                                First day and
                                                last day of
                   Rate of interest             fiscal year or
                   per centum per               series of fiscal
Retirement         annum, compounded            years for which
System             annually                     rate is effective
________________________________________________________________________
NYCERS             [1] 0%                       July 1, [2004] 2011 to
                                                June 30, [2012] 2016
NYCTRS             [1] 0%                       July 1, [2004] 2011 to
                                                June 30, [2012] 2016
PPF                [1] 0%                       July 1, [2004] 2011 to
                                                June 30, [2012] 2016
FPF                [1] 0%                       July 1, [2004] 2011 to
                                                June 30, [2012] 2016
BERS               [1] 0%                       July 1, [2004] 2011 to
                                                June 30, [2012] 2016

  S  29.  Subparagraph  (i)  of  paragraph 1 of subdivision k of section
13-638.2 of the administrative code of the city of New York, as added by
chapter 85 of the laws of 2000, is amended to read as follows:
  (i) Subject to the provisions of subparagraphs (iii) and (iv) of  this
paragraph,  in  any  case  where  the  valuation  rate of interest for a
retirement system is changed by law for any period beginning on or after
July first, two thousand four, or where  the  board  of  trustees  of  a
retirement  system,  for  any  period  beginning on or after July first,
nineteen hundred ninety-nine, adopts changed actuarial  tables  used  in
valuing  the  liabilities  of such retirement system, or where a signif-
icant change in an actuarial valuation method (as defined  in  paragraph
sixteen  of subdivision a of this section) is made for any period begin-
ning on or after July first, nineteen hundred ninety-nine in relation to
a retirement system, the actuary thereof shall  calculate,  as  of  June
thirtieth next preceding the first day of the fiscal year for which such
changed  rate  or  changed  tables or significant change in an actuarial
valuation method first becomes or became effective, an unfunded  accrued
liability  adjustment applicable to each responsible obligor in relation
to such retirement system, PROVIDED, HOWEVER, THAT NO  UNFUNDED  ACCRUED
LIABILITY ADJUSTMENT SHALL BE ESTABLISHED UNDER THIS SUBDIVISION FOR ANY
RETIREMENT  SYSTEM  WITH  RESPECT TO ANY CHANGE IN THE VALUATION RATE OF
INTEREST, CHANGE IN ACTUARIAL TABLES OR SIGNIFICANT CHANGE IN AN ACTUAR-
IAL VALUATION METHOD WHERE SUCH  CHANGED  VALUATION  RATE  OF  INTEREST,
ACTUARIAL  TABLES  OR ACTUARIAL VALUATION METHOD APPLIES TO SUCH RETIRE-
MENT SYSTEM WITH RESPECT TO ANY ACTUARIAL  VALUATION  PERFORMED  BY  THE
ACTUARY  AS OF JUNE THIRTIETH, TWO THOUSAND TEN OR AS OF ANY DATE THERE-
AFTER.
  S 30. Section 13-638.2 of the administrative code of the city  of  New
York is amended by adding a new subdivision k-1 to read as follows:
  K-1.  ALL  INSTALLMENTS  OF  CONTRIBUTION  RESULTING FROM ANY UNFUNDED
ACCRUED LIABILITY ESTABLISHED FOR ANY RETIREMENT  SYSTEM  PRIOR  TO  THE
ESTABLISHMENT  OF  THE  UNFUNDED ACCRUED LIABILITY AS OF JUNE THIRTIETH,
TWO THOUSAND TEN FOR THE RETIREMENT SYSTEMS PURSUANT TO  THE  PROVISIONS
OF PARAGRAPH ONE OF SUBDIVISION K-2 OF THIS SECTION WHICH ARE PAYABLE TO
ANY  RETIREMENT  SYSTEM  ON OR AFTER JULY FIRST, TWO THOUSAND ELEVEN ARE
HEREBY CANCELED AND SHALL NOT BE DUE AND PAYABLE ON OR AFTER  SUCH  JULY
FIRST.

S. 2145                            16                            A. 2296

  S  31.  Section 13-638.2 of the administrative code of the city of New
York is amended by adding a new subdivision k-2 to read as follows:
  K-2.  (1)  (I)  THE  ACTUARY  FOR  EACH  OF THE RETIREMENT SYSTEMS (AS
DEFINED IN PARAGRAPH ONE OF SUBDIVISION A OF  THIS  SECTION),  UPON  THE
BASIS OF THE LATEST MORTALITY AND OTHER TABLES APPLICABLE AT THE TIME HE
OR SHE PERFORMS THE CALCULATIONS, AND THE VALUATION RATE OF INTEREST (AS
DEFINED  IN  PARAGRAPH  ELEVEN  OF SUBDIVISION A OF THIS SECTION), SHALL
CALCULATE SEPARATELY FOR EACH OF THE  RETIREMENT  SYSTEMS,  AS  OF  JUNE
THIRTIETH, TWO THOUSAND TEN AND AS OF EACH SUCCEEDING JUNE THIRTIETH, AN
UNFUNDED ACCRUED LIABILITY FOR EACH OF THE RETIREMENT SYSTEMS IN ACCORD-
ANCE WITH THE SUCCEEDING SUBPARAGRAPHS OF THIS PARAGRAPH.
  (II) THE ACTUARY SHALL CALCULATE, AS OF THE APPLICABLE JUNE THIRTIETH,
AN  AMOUNT  EQUAL TO THE SUM OF (A) THE TOTAL ACTUARIAL PRESENT VALUE OF
ALL BENEFITS PAYABLE BY THE RETIREMENT  SYSTEM  PURSUANT  TO  APPLICABLE
LAW,  AS DETERMINED BY THE ACTUARY, AND (B) THE LIABILITY OF THE RETIRE-
MENT SYSTEM, AS DETERMINED BY THE ACTUARY, FOR AMOUNTS WHICH THE RETIRE-
MENT SYSTEM MAY BE REQUIRED BY APPLICABLE LAW TO PAY TO ANY  OTHER  FUND
ON  ACCOUNT  OF RELATED BENEFITS FINANCED THROUGH THE RETIREMENT SYSTEM,
WITHOUT A CORRESPONDING OFFSET IN  THE  LIABILITIES  OF  THE  RETIREMENT
SYSTEM.
  (III)  THE  UNFUNDED  ACCRUED LIABILITY OF THE RETIREMENT SYSTEM AS OF
THE APPLICABLE JUNE THIRTIETH SHALL BE THE AMOUNT OBTAINED BY  DEDUCTING
FROM  THE  AMOUNT  OF  SUCH  TOTAL LIABILITY OF THE RETIREMENT SYSTEM ON
ACCOUNT OF BENEFITS, AS DETERMINED BY THE ACTUARY PURSUANT  TO  SUBPARA-
GRAPH (II) OF THIS PARAGRAPH, THE SUM OF:
  (A)  THE  ACTUARIAL  PRESENT  VALUE  OF ENTRY AGE NORMAL CONTRIBUTIONS
PAYABLE TO THE RETIREMENT SYSTEM, AS DETERMINED BY THE ACTUARY AS OF THE
APPLICABLE JUNE THIRTIETH IN A MANNER  CONSISTENT  WITH  THE  ENTRY  AGE
ACTUARIAL  COST  METHOD, AND WITH THE APPLICABLE METHODOLOGIES SET FORTH
FOR NYCERS IN SUBPARAGRAPH (D) OF PARAGRAPH  TWO  OF  SUBDIVISION  B  OF
SECTION  13-127  OF THIS TITLE, FOR THE PPF IN SUBPARAGRAPH (E) OF PARA-
GRAPH TWO OF SUBDIVISION B OF SECTION 13-228 OF THIS TITLE, FOR THE  FPF
IN  SUBPARAGRAPH (E) OF PARAGRAPH TWO OF SUBDIVISION B OF SECTION 13-331
OF THIS TITLE, FOR THE NYCTRS IN PARAGRAPH  FIVE  OF  SUBDIVISION  B  OF
SECTION  13-527  OF  THIS  TITLE OR FOR BERS IN ITEM (V) OF SUBPARAGRAPH
FOUR OF PARAGRAPH (C) OF  SUBDIVISION  SIXTEEN  OF  SECTION  TWENTY-FIVE
HUNDRED SEVENTY-FIVE OF THE EDUCATION LAW;
  (B) THE PRESENT VALUE OF FUTURE MEMBER CONTRIBUTIONS OF ALL MEMBERS OF
THE RETIREMENT SYSTEM, AS DETERMINED BY THE ACTUARY AS OF THE APPLICABLE
JUNE THIRTIETH;
  (C) THE TOTAL FUNDS ON HAND OF THE RETIREMENT SYSTEM, AS DETERMINED BY
THE ACTUARY AS OF THE APPLICABLE JUNE THIRTIETH; AND
  (D)  THE  PRESENT  VALUE  OF  FUTURE  INSTALLMENTS OF UNFUNDED ACCRUED
LIABILITY CONTRIBUTIONS TO THE RETIREMENT SYSTEM.
  (IV) THE ACTUARY, IN DETERMINING THE UNFUNDED ACCRUED LIABILITY PURSU-
ANT TO THIS PARAGRAPH, MAY MAKE ANY ADJUSTMENTS WHICH HE  OR  SHE  DEEMS
APPROPRIATE  DUE TO THE CALCULATION OF THE UNFUNDED ACCRUED LIABILITY AS
OF THE SECOND JUNE THIRTIETH PRECEDING THE  FISCAL  YEAR  IN  WHICH  THE
FIRST  INSTALLMENT OF SUCH UNFUNDED ACCRUED LIABILITY BECOMES PAYABLE OR
CREDITABLE.
  (2) (I) THE UNFUNDED ACCRUED LIABILITY CALCULATED BY THE ACTUARY AS OF
JUNE THIRTIETH, TWO THOUSAND TEN FOR EACH RETIREMENT SYSTEM PURSUANT  TO
PARAGRAPH  ONE  OF THIS SUBDIVISION SHALL BE KNOWN AS THE "2010 UAL" OR,
WITH RESPECT TO NYCERS AS THE "NYCERS 2010 UAL", WITH RESPECT TO  NYCTRS
AS THE "NYCTRS 2010 UAL", WITH RESPECT TO THE PPF AS THE "PPF 2010 UAL",

S. 2145                            17                            A. 2296

WITH  RESPECT  TO THE FPF AS THE "FPF 2010 UAL" AND WITH RESPECT TO BERS
AS THE "BERS 2010 UAL".
  (II)  THE  2010  UAL  FOR EACH RETIREMENT SYSTEM SHALL BE AMORTIZED IN
TWENTY-ONE ANNUAL INSTALLMENTS, AS DETERMINED BY  THE  ACTUARY,  PAYABLE
OVER  A PERIOD OF TWENTY-TWO FISCAL YEARS FOLLOWING ITS ESTABLISHMENT AS
OF JUNE THIRTIETH, TWO THOUSAND TEN, WITH PAYMENTS COMMENCING  WITH  THE
TWO  THOUSAND  ELEVEN--TWO  THOUSAND TWELVE FISCAL YEAR. THE ACTUARY FOR
EACH OF THE RETIREMENT SYSTEMS SHALL DETERMINE THE SCHEDULE OF  CONTRIB-
UTION  INSTALLMENTS SO THAT EACH INSTALLMENT AFTER THE FIRST SHALL EQUAL
ONE HUNDRED THREE PER CENTUM OF THE NEXT PRECEDING INSTALLMENT.
  (3) (I) THE UNFUNDED ACCRUED LIABILITY CALCULATED  PURSUANT  TO  PARA-
GRAPH  ONE  OF THIS SUBDIVISION BY THE ACTUARY AS OF JUNE THIRTIETH, TWO
THOUSAND ELEVEN, AND AS OF EACH  SUCCEEDING  JUNE  THIRTIETH,  SHALL  BE
KNOWN  AS  A "POST-2010 UAL ADJUSTMENT". WITH RESPECT TO EACH RETIREMENT
SYSTEM, SUCH UNFUNDED ACCRUED LIABILITY  SHALL  BE  KNOWN  BY  THE  NAME
CONSISTING  OF THE APPLICABLE ABBREVIATION FOR THE RETIREMENT SYSTEM, AS
DEFINED IN PARAGRAPH THREE, FOUR, FIVE, SIX OR SEVEN OF SUBDIVISION A OF
THIS SECTION, FOLLOWED BY THE CALENDAR YEAR AS  OF  WHICH  THE  UNFUNDED
ACCRUED  LIABILITY  WAS  ESTABLISHED,  FOLLOWED BY THE TERM "UAL ADJUST-
MENT".
  (II) EACH POST-2010 UAL ADJUSTMENT FOR EACH RETIREMENT SYSTEM SHALL BE
AMORTIZED IN EQUAL INSTALLMENTS PAYABLE OR CREDITABLE, AS DETERMINED  BY
THE ACTUARY, AS FOLLOWS:
  (A)  THAT  PORTION OF A POST-2010 UAL ADJUSTMENT WHICH IS ATTRIBUTABLE
TO ACTUARIAL GAINS OR LOSSES, AS DETERMINED BY  THE  ACTUARY,  SHALL  BE
AMORTIZED IN FOURTEEN ANNUAL INSTALLMENTS, AS DETERMINED BY THE ACTUARY,
PAYABLE  OR  CREDITABLE  OVER A PERIOD OF FIFTEEN FISCAL YEARS FOLLOWING
THE JUNE THIRTIETH AS OF WHICH THE UNFUNDED ACCRUED LIABILITY WAS ESTAB-
LISHED, WITH PAYMENTS OR CREDITS COMMENCING WITH THE SECOND FISCAL  YEAR
SUCCEEDING THE JUNE THIRTIETH AS OF WHICH THE UNFUNDED ACCRUED LIABILITY
WAS  ESTABLISHED, PROVIDED, HOWEVER, THAT THE PORTION OF A POST-2010 UAL
ADJUSTMENT WHICH IS ATTRIBUTABLE TO ACTUARIAL GAINS AND LOSSES SHALL  BE
AN  AMOUNT  EQUAL  TO  THE TOTAL AMOUNT OF SUCH POST-2010 UAL ADJUSTMENT
MINUS AN AMOUNT EQUAL TO THE SUM OF THE PORTIONS OF SUCH  POST-2010  UAL
ADJUSTMENT,  IF  ANY, WHICH ARE ATTRIBUTABLE TO (1) CHANGES IN THE VALU-
ATION RATE OF INTEREST, CHANGES IN ACTUARIAL TABLES AND CHANGES IN ACTU-
ARIAL METHODS, AS DETERMINED BY THE ACTUARY PURSUANT TO ITEM (B) OF THIS
SUBPARAGRAPH, AND (2) RECENTLY ENACTED CHANGES IN  BENEFITS  WHICH  WERE
NOT INCORPORATED IN THE UNFUNDED ACCRUED LIABILITY ESTABLISHED AS OF THE
PRECEDING  JUNE THIRTIETH, AS DETERMINED BY THE ACTUARY PURSUANT TO ITEM
(C) OF THIS SUBPARAGRAPH;
  (B) THAT PORTION OF A POST-2010 UAL ADJUSTMENT WHICH  IS  ATTRIBUTABLE
TO  CHANGES  IN  THE  VALUATION  RATE  OF INTEREST, CHANGES IN ACTUARIAL
TABLES OR CHANGES IN ACTUARIAL METHODS, AS DETERMINED  BY  THE  ACTUARY,
SHALL BE AMORTIZED IN NINETEEN ANNUAL INSTALLMENTS, AS DETERMINED BY THE
ACTUARY,  PAYABLE  OR  CREDITABLE  OVER  A PERIOD OF TWENTY FISCAL YEARS
FOLLOWING THE JUNE THIRTIETH AS OF WHICH THE UNFUNDED ACCRUED  LIABILITY
WAS  ESTABLISHED,  WITH  PAYMENTS  OR CREDITS COMMENCING WITH THE SECOND
FISCAL YEAR SUCCEEDING THE JUNE  THIRTIETH  AS  OF  WHICH  THE  UNFUNDED
ACCRUED LIABILITY WAS ESTABLISHED; OR
  (C)  THAT  PORTION OF A POST-2010 UAL ADJUSTMENT WHICH IS ATTRIBUTABLE
TO RECENTLY ENACTED CHANGES IN BENEFITS WHICH WERE NOT  INCORPORATED  IN
THE  UNFUNDED  ACCRUED  LIABILITY  ESTABLISHED  AS OF THE PRECEDING JUNE
THIRTIETH, AS DETERMINED BY THE ACTUARY, SHALL, UNLESS  AN  AMORTIZATION
PERIOD OF A DIFFERENT LENGTH IS SPECIFIED BY THE LAW ENACTING SUCH BENE-
FIT  CHANGES,  BE  PAYABLE  OR  CREDITABLE IN ANNUAL INSTALLMENTS OVER A

S. 2145                            18                            A. 2296

PERIOD OF FISCAL YEARS COMPARABLE IN LENGTH TO THE NUMBER OF YEARS WHICH
IS ONE LESS THAN THE NUMBER OF YEARS OF THE REMAINING WORKING  LIFETIMES
OF MEMBERS COVERED BY THE BENEFIT CHANGES, AS DETERMINED BY THE ACTUARY,
WITH  THE  PAYMENT OR CREDIT OF SUCH ANNUAL INSTALLMENTS COMMENCING WITH
THE SECOND FISCAL YEAR SUCCEEDING THE JUNE THIRTIETH  AS  OF  WHICH  THE
UNFUNDED  ACCRUED  LIABILITY  WAS  ESTABLISHED,  PROVIDED, HOWEVER, THAT
WHERE THE LENGTH OF THE AMORTIZATION PERIOD FOR THE BENEFIT  CHANGES  IS
NOT  SPECIFIED  IN THE LAW ENACTING THE BENEFIT CHANGES, THE ACTUARY, IN
HIS OR HER DISCRETION, AND IN LIEU OF  AMORTIZING  THE  PORTION  OF  THE
UNFUNDED  ACCRUED  LIABILITY  ATTRIBUTABLE TO THE BENEFIT CHANGES OVER A
PERIOD OF FISCAL YEARS COMPARABLE IN LENGTH TO THE NUMBER OF YEARS WHICH
IS ONE LESS THAN THE NUMBER OF YEARS OF THE REMAINING WORKING  LIFETIMES
OF  MEMBERS  COVERED  BY THE BENEFIT CHANGES, MAY SELECT AN AMORTIZATION
PERIOD THAT IS REASONABLY CONSISTENT WITH PAST PRACTICE  FOR  AMORTIZING
UNFUNDED  ACCRUED LIABILITY ATTRIBUTABLE TO THE PARTICULAR TYPE OF BENE-
FIT CHANGES.
  (4) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE  CONTRARY,  WITH
RESPECT  TO  ANY  INSTALLMENT  OF  AN  UNFUNDED  ACCRUED LIABILITY OR AN
UNFUNDED ACCRUED LIABILITY ADJUSTMENT, IN THE EVENT THAT SUCH RETIREMENT
SYSTEM HAS MORE THAN ONE  RESPONSIBLE  OBLIGOR,  THE  ACTUARY  FOR  THAT
RETIREMENT  SYSTEM  SHALL  DETERMINE  AND  SHALL  ALLOCATE  TO EACH SUCH
RESPONSIBLE OBLIGOR ITS SHARE OF THAT INSTALLMENT, AS DETERMINED  TO  BE
APPROPRIATE  BY  THE  ACTUARY.  EACH RESPONSIBLE OBLIGOR'S SHARE OF EACH
SUCH INSTALLMENT SHALL BE EITHER A CHARGE OR A CREDIT  WITH  RESPECT  TO
SUCH RESPONSIBLE OBLIGOR FOR THE APPLICABLE FISCAL YEAR.
  (5) FOR EACH FISCAL YEAR, COMMENCING WITH THE TWO THOUSAND ELEVEN--TWO
THOUSAND TWELVE FISCAL YEAR, THE ACTUARY SHALL DETERMINE WHETHER THE SUM
OF  THE  CHARGES  AND CREDITS APPLICABLE TO EACH RESPONSIBLE OBLIGOR FOR
SUCH FISCAL YEAR WITH RESPECT TO THE APPLICABLE RETIREMENT SYSTEM  SHALL
CONSTITUTE  A TOTAL CHARGE OR A TOTAL CREDIT. WHERE SUCH AMOUNT FOR SUCH
RESPONSIBLE OBLIGOR FOR SUCH FISCAL YEAR WITH RESPECT TO SUCH RETIREMENT
SYSTEM IS A TOTAL CHARGE, THE RESPONSIBLE OBLIGOR SHALL  PAY  AN  AMOUNT
EQUAL  TO SUCH TOTAL CHARGE TO THE RETIREMENT SYSTEM IN A TIMELY MANNER,
AS REQUIRED BY PARAGRAPH SIX OF THIS SUBDIVISION. WHERE SUCH AMOUNT  FOR
SUCH  RESPONSIBLE  OBLIGOR  FOR  SUCH  FISCAL  YEAR WITH RESPECT TO SUCH
RETIREMENT SYSTEM IS A TOTAL CREDIT, THE  AMOUNT  OF  EMPLOYER  CONTRIB-
UTIONS  OTHERWISE PAYABLE BY SUCH RESPONSIBLE OBLIGOR TO SUCH RETIREMENT
SYSTEM FOR SUCH FISCAL YEAR PURSUANT TO APPLICABLE PROVISIONS OF LAW, AS
DETERMINED BY THE ACTUARY, SHALL BE REDUCED BY THE AMOUNT OF SUCH  TOTAL
CREDIT,  PROVIDED,  HOWEVER, THAT SUCH TOTAL AMOUNT OF EMPLOYER CONTRIB-
UTIONS OTHERWISE PAYABLE BY SUCH RESPONSIBLE OBLIGOR TO SUCH  RETIREMENT
SYSTEM  FOR SUCH FISCAL YEAR SHALL NOT BE REDUCED BELOW AN AMOUNT EQUIV-
ALENT TO THE AMOUNT PAYABLE BY SUCH RESPONSIBLE OBLIGOR FOR SUCH  FISCAL
YEAR  FOR  ADMINISTRATIVE  EXPENSES,  AS  DETERMINED  BY  THE ACTUARY IN
ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION F  OF  SECTION  13-103  OF
THIS TITLE FOR NYCERS, SUBDIVISION H OF SECTION 13-216 OF THIS TITLE FOR
THE PPF, SUBDIVISION D OF SECTION 13-518 OF THIS TITLE FOR THE NYCTRS OR
PARAGRAPH (E) OF SUBDIVISION TWENTY-THREE OF SECTION TWENTY-FIVE HUNDRED
SEVENTY-FIVE  OF  THE  EDUCATION  LAW FOR BERS, AND SHALL NOT BE REDUCED
BELOW ZERO FOR THE FPF, PROVIDED FURTHER, THAT WHERE A TOTAL CREDIT  FOR
A  RESPONSIBLE  OBLIGOR  WITH  RESPECT  TO  A RETIREMENT SYSTEM HAS BEEN
OFFSET AGAINST EMPLOYER CONTRIBUTIONS OTHERWISE PAYABLE BY SUCH  OBLIGOR
TO  SUCH  RETIREMENT  SYSTEM  FOR SUCH FISCAL YEAR BY THE MAXIMUM AMOUNT
PERMISSIBLE PURSUANT TO THE PRECEDING PROVISIONS OF THIS PARAGRAPH,  AND
ALL OR A PORTION OF SUCH CREDIT REMAINS AFTER SUCH OFFSET, THE REMAINING
CREDIT  SHALL  BE  CARRIED FORWARD, TOGETHER WITH INTEREST CALCULATED ON

S. 2145                            19                            A. 2296

SUCH AMOUNT AT THE VALUATION RATE OF INTEREST,  AS  A  CREDIT  FOR  SUCH
OBLIGOR FOR THE FOLLOWING FISCAL YEAR, AS DETERMINED BY THE ACTUARY.
  (6) ALL RESPONSIBLE OBLIGORS SHALL MAKE ALL UNFUNDED ACCRUED LIABILITY
PAYMENTS  TO  A RETIREMENT SYSTEM REQUIRED PURSUANT TO THE PROVISIONS OF
THIS SUBDIVISION IN ACCORDANCE WITH THE TIME OF PAYMENT REQUIREMENTS SET
FORTH IN SUBDIVISION C OF SECTION  13-133  OF  THIS  TITLE  FOR  NYCERS,
SUBDIVISION C OF SECTION 13-231 OF THIS TITLE FOR THE PPF, SUBDIVISION C
OF  SECTION 13-334 OF THIS TITLE FOR THE FPF, SUBDIVISION (C) OF SECTION
13-533 OF THIS TITLE FOR THE NYCTRS  OR  PARAGRAPH  (J)  OF  SUBDIVISION
SIXTEEN OF SECTION TWENTY-FIVE HUNDRED SEVENTY-FIVE OF THE EDUCATION LAW
FOR BERS.
  S  32.  Subdivision  d of section 13-705 of the administrative code of
the city of New York, as amended by chapter 152 of the laws of 2006,  is
amended to read as follows:
  d.  In  each city fiscal year, beginning with investment expenses paid
during the nineteen hundred ninety-eight--nineteen  hundred  ninety-nine
fiscal  year,  whenever  the  income, interest or dividends derived from
deposits or investments of the funds of a  retirement  system  are  used
pursuant  to  subdivision b of this section to pay the expenses incurred
by such retirement system in acquiring, managing or  protecting  invest-
ments of its funds, the monies so paid shall be made a charge to be paid
by  each participating employer otherwise required to make contributions
to such retirement system no later than the end of the fiscal year  next
succeeding  the  fiscal  year  during which such monies were drawn upon,
provided, however,  that  where  such  charge  is  for  such  investment
expenses paid during fiscal year two thousand four--two thousand five or
during  any  subsequent  fiscal  year, such charge shall be paid by each
such participating employer no later than the end of the  second  fiscal
year  succeeding  the  fiscal  year  during which such monies were drawn
upon, PROVIDED FURTHER THAT THE PROVISIONS OF THIS SUBDIVISION SHALL NOT
APPLY TO INVESTMENT EXPENSES PAID  DURING  THE  TWO  THOUSAND  NINE--TWO
THOUSAND  TEN  FISCAL  YEAR OR DURING ANY SUBSEQUENT FISCAL YEAR. In the
event that such  retirement  system  has  more  than  one  participating
employer,  the actuary shall calculate and allocate to each such partic-
ipating employer its share of such charge. All charges to be paid pursu-
ant 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  subdi-
vision b of section 13-638.2 of this title.
  S  33.  Subparagraph  2  of paragraph (c) of subdivision 16 of section
2575 of the education law is amended by adding two new items  (i-A)  and
(i-B) to read as follows:
  (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
  S  34.  Subparagraph  3  of paragraph (c) of subdivision 16 of section
2575 of the education law is amended by adding a new item (vii) to  read
as follows:
  (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 SUBDIVI-
SION.  ANY RESPONSIBLE OBLIGOR WHICH DOES NOT MAKE ALL OR ANY PORTION OF

S. 2145                            20                            A. 2296

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 ACTU-
ARY SHALL DETERMINE, AT SUCH TIME AS HE OR SHE DEEMS APPROPRIATE, INTER-
EST 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.
  S 35. Item (i) of subparagraph 4 of paragraph (c) of subdivision 16 of
section  2575 of the education law, as amended by chapter 85 of the laws
of 2000, is amended to read as follows:
  (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  actu-
ary  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 determin-
ing 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 contrib-
utions, 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  deter-
mining such total liability as of June thirtieth, nineteen hundred nine-
ty-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.
  S 36. Subparagraph 4 of paragraph (c) of  subdivision  16  of  section
2575 of the education law is amended by adding a new item (v) to read as
follows:
  (V)  (A)  NOTWITHSTANDING  THE PRECEDING ITEMS OF THIS SUBPARAGRAPH OR
ANY OTHER PROVISION OF LAW TO  THE  CONTRARY,  THE  NORMAL  CONTRIBUTION

S. 2145                            21                            A. 2296

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 ACTUARI-
AL  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  CONTRIB-
UTION  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 CONTRIB-
UTION 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 PAYA-
BLE, 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  DETER-
MINING 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.

S. 2145                            22                            A. 2296

  (F) IN THE ALTERNATIVE, THE METHODOLOGY DETERMINED BY THE  ACTUARY  IN
ACCORDANCE  WITH  SUB-ITEM  (C)  OF THIS ITEM MAY PROVIDE FOR THE CALCU-
LATION 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 LIFE-
TIME OF THAT PARTICULAR MEMBER FROM HIS OR HER AGE AT ENTRY, THE ACTUAR-
IAL 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.
  S 37. Paragraph (j) of subdivision 16 of section 2575 of the education
law is amended by adding a new subparagraph 2-a to read as follows:
  (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 APPLICA-
BLE 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.
  S  38.  This  act shall take effect immediately and shall be deemed to
have been in full force and effect on and after July 1,  2011.  Notwith-
standing  any other provision of law, for the purposes of calculating an
actuarial reserve pursuant to the provisions of section  13-557  of  the
administrative  code  of  the  city  of  New York, the valuation rate of
interest and mortality tables in  effect  on  June  30,  1988  shall  be
utilized by the actuary.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:  BACKGROUND: In
reports  dated February 10, 2012, the Actuary presented proposed changes
in actuarial assumptions and methods for determining  employer  contrib-
utions  for  Fiscal Years beginning on and after July 1, 2011 (i.e., the
"Silver Books") to each of the Boards of Trustees of the following  five
actuarially-funded New York City Retirement Systems ("NYCRS"):
  * New York City Employees' Retirement System ("NYCERS")
  * New York City Teachers' Retirement System ("TRS")
  * New York City Board of Education Retirement System ("BERS")

S. 2145                            23                            A. 2296

  * New York City Police Pension Fund ("POLICE")
  * New York City Fire Department Pension Fund ("FIRE")
  These  Silver  Books were developed by the Actuary after reviewing the
two most recent actuarial experience studies required by  the  New  York
City  Charter  and  prepared  by The Segal Company in their Report dated
November 2006 and The Hay Group in their Report dated December 2011.
  The principal components of the Actuary's proposed changes in actuari-
al assumptions and methods used to develop employer contributions to the
NYCRS are to:
  * Reduce the Actuarial Interest Rate ("AIR") assumption from 8.0%  per
annum (gross of expenses) to 7.0% per annum (net of expenses).
  *  Retain  the current economic actuarial assumptions for the Consumer
Price Inflation of 2.5% per year and the General Wage  Increase  ("GWI")
of 3.0% per year.
  *  Update  demographic  actuarial assumptions to reflect the Actuary's
best estimate of future experience.
  * Replace the current Actuarial Cost Method ("ACM") (i.e., the  Frozen
Initial  Liability ("FIL") ACM) with the Entry Age Actuarial Cost Method
("EAACM") and establish certain amortization methods and periods  to  be
used  for  financing the Unfunded Actuarial Accrued Liabilities ("UAAL")
developed under this new ACM.
  * Retain the current six-year phase-in period for  Unexpected  Invest-
ment  Returns  ("UIR") for investment gains and losses for the Actuarial
Asset Valuation Method ("AAVM") for Fiscal Year 2012 and beyond.  Use  a
Market Value Restart as of June 30, 2011 and set the June 30, 2010 Actu-
arial  Asset  Value  ("AAV")  equal to the June 30, 2011 Market Value of
Assets ("MVA") discounted by  the  AIR  assumption  (adjusted  for  cash
flow).
  Certain of the proposals developed by the Actuary (e.g., probabilities
of  decrement  from active service, probabilities of death after retire-
ment) require adoption by the Board of Trustees of each of the NYCRS.
  Other proposed changes in actuarial assumptions  and  methods  require
passage  of  enabling  legislation by the New York State Legislature and
enactment by the Governor.
  The provisions of this amended proposed legislation, together with the
adoption of actuarial tables by the Boards of Trustees of the NYCRS  and
application  of  the  revised  AAVM, represent the packages of actuarial
assumptions and methods proposed by the Actuary for financing the NYCRS.
  PROVISIONS OF PROPOSED LEGISLATION: This  proposed  legislation  would
amend  Administrative  Code  of  the  City of New York ("ACNY") Sections
13-127, 13-133, 13-194, 13-228, 13-271, 13-281, 13-331, 13-527,  13-533,
13-638.2  and  13-705  and  Education  Law  Section  2575  by  including
provisions that impact the development of employer contributions to  the
NYCRS.
  Specifically, for each of the NYCRS, this amended proposed legislation
would:
  *  Reduce  the  AIR  assumption  to  be  used  for developing employer
contributions from 8.0% per annum (gross of expenses) to 7.0% per  annum
(net of expenses).
  *  Continue  through  Fiscal  Year  2016 the use of the 8.25% per year
crediting rate on Annuity Savings Fund ("ASF") and  Increased-Take-Home-
Pay ("ITHP") Reserves for Tier I and Tier II members.
  * Replace the current ACM (i.e., the FIL ACM) with the EAACM.
  *  Amortize  over  a 22-year period the Initial UAAL established under
the EAACM with 21 annual  payments  beginning  Fiscal  Year  2012  using

S. 2145                            24                            A. 2296

Increasing Dollar Payments ("IDP"), where the increase in payments would
be 3.0% per year, consistent with the proposed GWI assumption.
  Amortize  over  a  20-year period (19 annual payments) additional UAAL
attributable to future actuarial assumption and/or method changes,  over
a 15-year period (14 annual payments) any actuarial gains and losses and
over  an  approximation  of  the  remaining  working  lifetimes of those
impacted (unless the amortization period is established by statute)  any
benefit changes, using Level Dollar Payments ("LDP").
  The  Actuary  would  be  provided with the authority to establish UAAL
and/or amortization schedules consistent with the EAACM, where such UAAL
and/or amortization schedules are appropriate but not provided in legis-
lation.
  * Retain the One-Year Lag Methodology ("OYLM").
  * Retain the repayment of Administrative Expenses, with  interest,  in
the second fiscal year after occurrence.
  Provide  for  the  transfer  of  assets  directly  from  NYCERS to the
Correction Officers' Variable Supplements Fund ("COVSF")  in  the  event
that  assets  of the COVSF are insufficient to meet any legally-required
benefit payments.
  * Provide for the transfer of  assets  directly  from  POLICE  to  the
Police  Officers'  Variable Supplements Fund ("POVSF") and to the Police
Superior Officers' Variable Supplements Fund  ("PSOVSF")  in  the  event
that  assets  of  the  POVSF  or the PSOVSF are insufficient to meet any
legally-required benefit payments.
  * Although recommended by the Actuary, due to  concerns  expressed  by
certain  FIRE  Trustees, not provide for the transfer of assets directly
from FIRE to the Firefighters' Variable Supplements Fund  ("FFVSF")  and
to  the  Fire Officers' Variable Supplements Fund ("FOVSF") in the event
that assets of the FFVSF or the  FOVSF  are  insufficient  to  meet  any
legally-required benefit payments.
  *  Provide  for the payment of interest on employer contributions made
after the due dates determined and communicated by the  Actuary  to  the
Boards of Trustees.
  ACTUARIAL  PRESENT  VALUES  OF  BENEFITS:  Enactment  of  this amended
proposed legislation, together  with  the  other  changes  in  actuarial
assumptions  and methods adopted by the Boards of Trustees of the NYCRS,
would result in an increase in the Actuarial Present  Value  ("APV")  of
Benefits  ("APVB")  (inclusive  of  the APVB of the Variable Supplements
Funds ("VSFs")) of the NYCRS of approximately $36.0 billion as  of  June
30, 2010, as shown in the following Table I:

                                 TABLE I

           Comparison of Actuarial Present Values of Benefits
                    Before and After Proposed Changes
                  in Actuarial Assumptions and Methods
                           as of June 30, 2010

                              ($ Billions)

                 Actuarial Present Values of Benefits{1}

Retirement     Before         After          Difference{4}
System         Changes{2}     Changes{3}

S. 2145                            25                            A. 2296

NYCERS         $ 64.7         $ 78.0         $ 13.3
TRS              58.3           68.2            9.9
BERS              3.7            4.6             .9
POLICE           42.3           50.7            8.4
FIRE             17.0           20.5            3.5
Total          $186.0         $222.0         $ 36.0

  {1} Amounts include APVB of the VSFs.
  {2}  Equals  APVB as of June 30, 2010 based on preliminary census data
used for the June 30, 2010 (Lag) actuarial  valuations,  on  preliminary
calculations  using  actuarial  software  being  replaced and on current
actuarial assumptions and methods.
  {3} Equals APVB as of June 30, 2010 based on final  census  data  used
for  the June 30, 2010 (Lag) actuarial valuations, on final calculations
using new actuarial software and on proposed actuarial  assumptions  and
methods.
  {4} Equals After Changes minus Before Changes.
  ANNUAL  EMPLOYER CONTRIBUTIONS: Under the EAACM, the Actuarial Present
Value ("APV") of Projected Benefits ("APVB") of each individual included
in the actuarial valuation is allocated on a level basis over the  earn-
ings  (or  service) of the individual between entry age and assumed exit
age(s).
  The portion of this APV allocated to a valuation year is  referred  to
as  the Normal Contribution. The portion of this APV not provided for at
a valuation date by the APV of Future Normal Contributions is the  Actu-
arial Accrued Liability ("AAL"). The excess, if any, of the AAL over the
AAV is the UAAL.
  Under  this  method,  actuarial  gains (losses), as they occur, reduce
(increase)  the  UAAL  and  are  explicitly  identified  and  amortized.
Increases  (decreases)  in obligations due to benefit changes, actuarial
assumption and/or method changes  are  also  explicitly  identified  and
amortized.
  The  initial UAAL as of June 30, 2010 would be amortized over 22 years
with 21 annual payments beginning Fiscal Year 2012  increasing  by  3.0%
per  year,  recognizing the impact of employer contributions made during
Fiscal Year 2011 under the OYLM.
  Furthermore, the Actuary proposes revising the AAVM  as  of  June  30,
2010  for  each  of  the  NYCRS. The new method would retain the current
six-year phase-in period for Unexpected Investment Returns  ("UIR")  for
the  AAVM of 15%, 15%, 15%, 15%, 20% and 20% for investment gains/losses
for Fiscal Year 2012 and beyond. However, the AAV as of  June  30,  2011
would  be set equal to the MVA as of that date and the June 30, 2010 AAV
would be set equal to the June 30,  2011  MVA,  discounted  by  the  AIR
assumption and adjusted for cash flow.
  The  One-Year  Lag  Methodology  and  the  repayment of Administrative
Expenses with interest, in the  second  fiscal  year  after  occurrence,
would be retained.
  EMPLOYER  CONTRIBUTIONS  -  FISCAL  YEAR  2012: The following Table II
presents the combined impact of all of the proposed changes in actuarial
assumptions and methods on the Fiscal Year 2012  employer  contributions
to the NYCRS.
  Specifically,  Table  II  shows  a  comparison  between: (1) estimated
Fiscal Year 2012 employer contributions based upon the actuarial assump-
tions and methods currently in effect ("Before Changes") and  (2)  final
Fiscal Year 2012 employer contributions computed in accordance with this

S. 2145                            26                            A. 2296

proposed legislation and all of the other proposed actuarial assumptions
and methods ("After Changes").

                                TABLE II

    Comparison of Fiscal Year 2012 Employer Contributions Calculated
       using Current Actuarial Assumptions and Methods with Those
       Calculated using Proposed Actuarial Assumptions and Methods

                              ($ Billions)

Retirement     Before         After          Difference{3}
System         Changes{1}     Changes{2}
NYCERS         $ 2.59         $ 3.02         $ .43
TRS              2.62           2.67           .05
BERS              .17            .21           .04
POLICE           2.20           2.39           .19
FIRE              .95            .98           .03
Total          $ 8.53         $ 9.27         $ .74

  {1} Equals estimated employer contributions for Fiscal Year 2012 based
on  preliminary  census  data used for the June 30, 2010 (Lag) actuarial
valuations, on preliminary calculations using actuarial  software  being
replaced and on current actuarial assumptions and methods.
  {2}  Equals final employer contributions for Fiscal Year 2012 based on
final census data used for the June 30, 2010 (Lag) actuarial valuations,
on final calculations using new actuarial software and on proposed actu-
arial assumptions and methods.
  {3} Equals After Changes minus Before Changes.
  EMPLOYER CONTRIBUTIONS - FISCAL YEARS  2012  TO  2016:  The  financial
impact  of  the  proposed  changes in actuarial assumptions and methods,
relative to  the  current  actuarial  assumptions  and  methods,  is  to
increase  and  to  smooth  the  pattern of employer contributions to the
NYCRS for Fiscal Years 2012 to 2016.
  The following Table III compares the estimated employer  contributions
for the five actuarially-funded NYCRS combined under the current actuar-
ial assumptions and methods and under the proposed actuarial assumptions
and methods:

                                TABLE III

                  Comparison of Employer Contributions
                      For Fiscal Years 2012 to 2016
     Calculated using Current Actuarial Assumptions and Methods with
  Those Calculated using Proposed Actuarial Assumptions and Methods{1}

                              ($ Billions)

Fiscal         Before         After          Difference{4}
Year           Changes{2}     Changes{3}
2012           $ 8.53         $ 9.27         $ .74
2013             8.37           9.39          1.02
2014             8.36           9.37          1.01
2015             8.66           9.34           .68
2016             8.87           9.57           .70

S. 2145                            27                            A. 2296

  {1}  Amounts  shown  are  estimated based on preliminary June 30, 2010
census data and on preliminary  calculations  using  actuarial  software
that  is being replaced, with adjustments in amounts shown After Changes
to be consistent with final Fiscal Year 2012 amounts.
  {2}  Equals  employer  contributions  for  the respective Fiscal Years
based upon the second prior June 30 actuarial valuations and on  current
actuarial assumptions and methods.
  {3}  Equals  employer  contributions  for  the respective Fiscal Years
based upon the second prior June 30 actuarial valuations and on proposed
actuarial assumptions and methods.
  {4} Equals After Changes minus Before Changes.
  CENSUS DATA: The census data used  to  determine  APVB  and  estimated
Fiscal Year 2012 employer contributions Before Changes and After Changes
are  the  active and retired members included in the June 30, 2010 (Lag)
actuarial valuations of the NYCRS.
  ACTUARIAL ASSUMPTIONS AND METHODS: The actuarial assumptions and meth-
ods used to determine estimated Fiscal Year 2012 employer  contributions
Before  Changes are generally the same as those utilized in the June 30,
2009 actuarial valuations of the NYCRS to  determine  Fiscal  Year  2011
employer contributions.
  The  actuarial  assumptions  and methods used to determine Fiscal Year
2012 employer contributions After Changes  are  those  proposed  by  the
Actuary  to  the Boards of Trustees of each of the NYCRS during February
2012.
  The actuarial assumptions used to estimate employer contributions  for
Fiscal Years 2013 to 2016 include projection assumptions consistent with
those  used to develop estimates for the April 2011 New York City Finan-
cial Plan.
  APVB and employer contribution amounts shown Before Changes are  esti-
mated  based  on  preliminary  June 30,2010 census data and on actuarial
software that is being replaced.
  APVB and employer contributions After Changes used to determine Fiscal
Year 2012 employer contributions are based on final June 30, 2010 census
data and generally on new actuarial software.
  Estimated employer contributions After Changes for Fiscal  Years  2013
to  2016  are based on June 30, 2010 census data and projections of APVB
adjusted to be consistent with Fiscal Year 2012 results.
  ECONOMIC VALUES OF BENEFITS: The actuarial assumptions used to  deter-
mine  the financial impact of the proposed legislation discussed in this
Fiscal Note are those appropriate for budgetary models and for determin-
ing annual  employer  contributions  to  NYCRS.  However,  the  economic
assumptions (current and proposed) that are used for determining employ-
er  contributions do not develop risk-adjusted, economic values of bene-
fits. Such risk-adjusted,  economic  values  of  benefits  would  likely
differ significantly from those developed by the budgetary models.
  STATEMENT  OF ACTUARIAL OPINION: I, Robert C. North, Jr., am the Chief
Actuary for the New York City Retirement Systems. I am a Fellow  of  the
Society  of Actuaries and a Member of the American Academy of Actuaries.
I meet the Qualification Standards of the American Academy of  Actuaries
to render the actuarial opinion contained herein.
  FISCAL  NOTE  IDENTIFICATION:  This  estimate is intended for use only
during the 2013 Legislative Session. It is Fiscal  Note  2013-01,  dated
December  14,  2012, prepared by the Chief Actuary for the New York City
Employees' Retirement System, the New  York  City  Teachers'  Retirement
System,  the New York City Board of Education Retirement System, the New

S. 2145                            28                            A. 2296

York City Police Pension Fund and the  New  York  City  Fire  Department
Pension Fund.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.