S T A T E   O F   N E W   Y O R K
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                                   6129
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN  ACT  to  amend  the  administrative code of the city of New York, in
   relation to establishing a variable supplements  fund  for  sanitation
   members of the New York city employees' retirement system

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 13-101 of the administrative code of  the  city  of
 New York is amended by adding a new subdivision 97 to read as follows:
   97.  "SANITATION  VARIABLE  SUPPLEMENTS FUND." THE SANITATION VARIABLE
 SUPPLEMENTS FUND ESTABLISHED BY SECTION 13-197 OF THIS CHAPTER.
   § 2. The administrative code of the city of New  York  is  amended  by
 adding a new section 13-197 to read as follows:
   §  13-197  SANITATION  VARIABLE  SUPPLEMENTS  FUND. 1. AS USED IN THIS
 SECTION, THE FOLLOWING WORDS AND PHRASES SHALL HAVE THE FOLLOWING  MEAN-
 INGS, UNLESS A DIFFERENT MEANING IS PLAINLY REQUIRED BY THE CONTEXT:
   (A)  "ASSOCIATION".  THE UNIFORMED SANITATIONMEN'S ASSOCIATION AND THE
 SANITATION OFFICERS' ASSOCIATION.
   (B) "VARIABLE SUPPLEMENTS BOARD". THE BOARD OF TRUSTEES  PROVIDED  FOR
 IN SUBDIVISION THREE OF THIS SECTION.
   (C)  "BENEFICIARY". ANY PERSON WHO (1) RECEIVES A RETIREMENT ALLOWANCE
 BY REASON OF HAVING RETIRED FROM SERVICE AS A SANITATION MEMBER, OR  (2)
 RECEIVES A BENEFIT BY REASON OF ELECTION OF AN OPTION BY SUCH SANITATION
 MEMBER.
   (D)  "VARIABLE SUPPLEMENT". ANY SUM AUTHORIZED TO BE PAID TO A BENEFI-
 CIARY BY THE VARIABLE SUPPLEMENTS BOARD PURSUANT TO  THE  PROVISIONS  OF
 THIS SECTION.
   2.  (A) THERE IS HEREBY ESTABLISHED A FUND, TO BE KNOWN AS THE SANITA-
 TION VARIABLE SUPPLEMENTS FUND. SUCH FUND SHALL CONSIST OF  SUCH  MONIES
 AS  MAY  BE  PAID  THERETO  FROM  THE  RETIREMENT SYSTEM PURSUANT TO THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07322-01-9
              

 S. 6129                             2
 
 PROVISIONS OF SECTION 13-198  OF  THIS  CHAPTER  AND  ALL  OTHER  MONIES
 RECEIVED BY SUCH FUND FROM ANY OTHER SOURCE PURSUANT TO LAW.
   (B) IT IS HEREBY DECLARED BY THE LEGISLATURE THAT THE SANITATION VARI-
 ABLE  SUPPLEMENTS  FUND  SHALL  NOT  BE,  AND  SHALL NOT BE CONSTRUED TO
 CONSTITUTE, A PENSION OR RETIREMENT SYSTEM OR FUND, AND  THAT  IT  SHALL
 FUNCTION  AS  A  MEANS  WHEREBY  PAYMENTS, NOT CONSTITUTING A PENSION OR
 RETIREMENT ALLOWANCE, MAY BE MADE AT  THE  DISCRETION  OF  THE  VARIABLE
 SUPPLEMENTS BOARD, IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION, TO
 ELIGIBLE  BENEFICIARIES,  AS  A  SUPPLEMENT TO BENEFITS RECEIVED BY THEM
 PURSUANT TO THIS TITLE. THE LEGISLATURE HEREBY RESERVES TO THE STATE AND
 ITSELF THE RIGHT AND POWER TO AMEND, MODIFY OR REPEAL ANY OR ALL OF  THE
 PROVISIONS OF THIS SECTION.
   3.  (A) THE SANITATION VARIABLE SUPPLEMENTS FUND SHALL BE ADMINISTERED
 BY A BOARD OF TRUSTEES WHICH SHALL, SUBJECT TO APPLICABLE PROVISIONS  OF
 LAW,  FROM TIME TO TIME ESTABLISH RULES AND REGULATIONS FOR THE ADMINIS-
 TRATION AND TRANSACTION OF THE BUSINESS OF SUCH FUND AND FOR THE CONTROL
 AND DISPOSITION THEREOF.
   (B) SUCH VARIABLE SUPPLEMENTS BOARD SHALL CONSIST OF:
   (1) THE REPRESENTATIVE OF THE MAYOR WHO IS A MEMBER OF  THE  BOARD  OF
 TRUSTEES  OF  THE  RETIREMENT  SYSTEM, WHO SHALL BE ENTITLED TO CAST ONE
 VOTE. THE MAYOR MAY, BY INSTRUMENT IN WRITING FILED IN HIS OR HER OFFICE
 WITH THE VARIABLE SUPPLEMENTS BOARD, DESIGNATE ONE OR  MORE  MEMBERS  OF
 HIS OR HER OFFICE TO ACT IN THE PLACE OF SUCH REPRESENTATIVE AT MEETINGS
 OF THE BOARD, IN THE EVENT OF SUCH REPRESENTATIVE'S ABSENCE THEREFROM.
   (2)  THE  COMPTROLLER  OF  THE CITY, WHO SHALL BE ENTITLED TO CAST ONE
 VOTE.  ANY DEPUTY COMPTROLLER AUTHORIZED, PURSUANT TO SUBDIVISION  B  OF
 SECTION NINETY-FOUR OF THE NEW YORK CITY CHARTER, TO ACT IN THE PLACE OF
 THE  COMPTROLLER  AS A MEMBER OF THE BOARD OF TRUSTEES OF THE RETIREMENT
 SYSTEM, MAY BE AUTHORIZED BY THE COMPTROLLER,  IN  ACCORDANCE  WITH  THE
 PROVISIONS  OF  SUCH SUBDIVISION, TO ACT IN THE PLACE OF THE COMPTROLLER
 AS A MEMBER OF THE VARIABLE SUPPLEMENTS BOARD.
   (3) ONE MEMBER OF THE UNIFORMED SANITATIONMEN'S  ASSOCIATION  AND  ONE
 MEMBER  OF  THE SANITATION OFFICERS' ASSOCIATION DESIGNATED BY THEM, WHO
 SHALL BE ENTITLED TO CAST ONE VOTE. THE MEMBERS SO DESIGNATED  SHALL  BE
 OFFICERS  OF  THE  ASSOCIATIONS.  EACH SUCH DESIGNEE MAY AT ANY TIME, BY
 WRITTEN AUTHORIZATION FILED WITH THE VARIABLE SUPPLEMENTS BOARD, AUTHOR-
 IZE ANY OTHER OFFICER OF THE ASSOCIATION TO ACT IN HIS OR HER PLACE AS A
 MEMBER OF THE BOARD IN THE EVENT OF SUCH  DESIGNEE'S  ABSENCE  FROM  ANY
 MEETING THEREOF; PROVIDED THAT THE BYLAWS OR CONSTITUTION OF THE ASSOCI-
 ATION PROVIDE FOR THE DESIGNATION OF A REPRESENTATIVE FOR SUCH PURPOSES.
   (C)  EVERY  ACT OF THE VARIABLE SUPPLEMENTS BOARD SHALL BE BY A RESOL-
 UTION ADOPTED BY THE VOTES OF NOT LESS THAN THREE MEMBERS OF SUCH BOARD,
 EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH (D) OF THIS SUBDIVISION.
   (D)(1) IN THE EVENT THAT THE VOTES OF AT LEAST THREE MEMBERS  OF  SUCH
 BOARD  ARE  NOT  CAST  IN FAVOR OF ANY RESOLUTION PROPOSED, SUCH DISPUTE
 SHALL BE PROMPTLY REFERRED TO THE ARBITRATOR DESIGNATED FOR THE  PURPOSE
 OF  RESOLVING SUCH DISPUTES, IN THE COLLECTIVE BARGAINING AGREEMENT THEN
 IN EFFECT, BETWEEN THE CITY OF NEW YORK AND THE ASSOCIATIONS. SUCH ARBI-
 TRATOR SHALL DETERMINE SUCH DISPUTE AS EXPEDITIOUSLY AS POSSIBLE AND HIS
 OR HER DETERMINATION SHALL BE ADOPTED BY THE BOARD.
   (2) IF THE ARBITRATOR DESIGNATED IN SUCH  AGREEMENT  IS  UNWILLING  OR
 UNABLE  TO  SERVE,  OR IF THERE BE NO SUCH AGREEMENT THEN IN EFFECT, AND
 THE VOTES OF AT LEAST THREE MEMBERS OF THE  VARIABLE  SUPPLEMENTS  BOARD
 ARE NOT CAST IN FAVOR OF A RESOLUTION DESIGNATING ANOTHER ARBITRATOR, AN
 ARBITRATOR  SHALL  BE  APPOINTED BY THE SUPREME COURT, ON APPLICATION OF
 ANY MEMBER OF SUCH BOARD.  THE  DETERMINATION  OF  THE  ARBITRATOR  MADE

 S. 6129                             3

 PURSUANT  TO THE PROVISIONS OF THIS SUBPARAGRAPH SHALL BE ADOPTED BY THE
 BOARD.
   (3)  THE  COST OF ANY ARBITRATION PURSUANT TO THE FOREGOING PROVISIONS
 OF THIS PARAGRAPH SHALL BE PAID BY THE SANITATION  VARIABLE  SUPPLEMENTS
 FUND.
   (E)  THE ACTUARY APPOINTED BY THE BOARD OF THE RETIREMENT SYSTEM SHALL
 BE THE TECHNICAL ADVISOR OF THE VARIABLE SUPPLEMENTS BOARD.
   (F) THE RETIREMENT SYSTEM SHALL ASSIGN  TO  THE  VARIABLE  SUPPLEMENTS
 BOARD  SUCH  NUMBER OF CLERICAL AND OTHER ASSISTANTS AS MAY BE NECESSARY
 FOR THE PERFORMANCE OF ITS FUNCTIONS.
   4. (A) THE VARIABLE SUPPLEMENTS BOARD MAY IN ITS DISCRETION  AUTHORIZE
 PAYMENTS  FROM THE SANITATION VARIABLE SUPPLEMENTS FUND TO BENEFICIARIES
 PURSUANT TO THE PROVISIONS OF THIS SECTION. SUBJECT TO THE PROVISIONS OF
 PARAGRAPH (B) OF THIS SUBDIVISION, SUCH PAYMENTS MAY  BE  MADE  IN  SUCH
 FORM, IN SUCH AMOUNT AND IN SUCH CASES AS THE VARIABLE SUPPLEMENTS BOARD
 MAY  IN  ITS DISCRETION DETERMINE; PROVIDED, HOWEVER, THAT THE BOARD, IN
 SO EXERCISING ITS DISCRETION, SHALL GIVE CONSIDERATION TO EQUITY,  FAIR-
 NESS AND PRINCIPLES OF PRUDENT MANAGEMENT.
   (B)  (1) NO BENEFICIARY SHALL HAVE A RIGHT TO RECEIVE VARIABLE SUPPLE-
 MENTS EXCEPT TO THE EXTENT, IN THE MANNER AND FOR THE PERIOD  AUTHORIZED
 BY  THE  VARIABLE  SUPPLEMENTS  BOARD  IN THE EXERCISE OF ITS DISCRETION
 PURSUANT TO THIS SECTION AND ANY SUCH SUPPLEMENTS  GRANTED  MAY  AT  ANY
 TIME  BE  DISCONTINUED BY THE VARIABLE SUPPLEMENTS BOARD IN THE EXERCISE
 OF SUCH DISCRETION.
   (2) THE LEGISLATURE HEREBY  DECLARES  THAT  THE  VARIABLE  SUPPLEMENTS
 AUTHORIZED BY THIS SECTION AND THE GRANTING AND RECEIPT THEREOF:
   (I)  SHALL NOT CREATE OR CONSTITUTE MEMBERSHIP IN A PENSION OR RETIRE-
 MENT SYSTEM AND SHALL NOT CREATE OR CONSTITUTE A CONTRACT WITH ANY BENE-
 FICIARY OR WITH ANY SANITATION MEMBER; AND
   (II) SHALL NOT CONSTITUTE A PENSION OR RETIREMENT ALLOWANCE OR BENEFIT
 UNDER THE RETIREMENT SYSTEM OR OTHERWISE.
   (3) EXCEPT AS OTHERWISE PROVIDED IN SECTION 13-198  OF  THIS  CHAPTER,
 NOTHING  CONTAINED IN THIS SECTION SHALL CREATE OR IMPOSE ANY OBLIGATION
 ON THE PART OF THE RETIREMENT SYSTEM, OR THE FUNDS OR MONIES THEREOF, OR
 AUTHORIZE SUCH FUNDS OR MONIES  TO  BE  APPROPRIATED  OR  USED  FOR  ANY
 PAYMENT UNDER THIS SECTION OR FOR ANY PURPOSE THEREOF.
   (C)  BENEFICIARIES  SHALL  BE ELIGIBLE TO RECEIVE VARIABLE SUPPLEMENTS
 PURSUANT TO THIS SECTION, NOTWITHSTANDING ANY OTHER PROVISION OF LAW  TO
 THE CONTRARY.
   (D)  (1)  THE  VARIABLE SUPPLEMENTS BOARD SHALL NOT GRANT ANY VARIABLE
 SUPPLEMENT PURSUANT TO  THIS  SECTION  UNLESS  THE  SANITATION  VARIABLE
 SUPPLEMENTS  FUND,  AT  THE TIME OF THE MAKING OF SUCH GRANT, HAS IN ITS
 POSSESSION MONIES OR ASSETS WHICH ARE SUFFICIENT TO PROVIDE SUCH SUPPLE-
 MENT AND WHICH HAVE NOT BEEN ENCUMBERED BY ANY OTHER GRANT OF  ANY  SUCH
 SUPPLEMENT.
   (2) UPON THE MAKING OF ANY SUCH GRANT, THE MONIES OR ASSETS ENCUMBERED
 THEREBY  SHALL BE SET ASIDE AND SHALL NOT BE USED FOR ANY OTHER PURPOSE,
 EXCEPT THAT THEY MAY BE INVESTED AS AUTHORIZED  BY  SUBDIVISION  SIX  OF
 THIS SECTION.
   5.  THE SANITATION VARIABLE SUPPLEMENTS FUND SHALL HAVE THE POWERS AND
 PRIVILEGES OF A CORPORATION AND BY ITS NAME ALL OF ITS BUSINESS SHALL BE
 TRANSACTED, ALL OF ITS FUNDS INVESTED, ALL WARRANTS FOR MONEY DRAWN  AND
 PAYMENTS  MADE,  AND  ALL  OF ITS CASH AND SECURITIES AND OTHER PROPERTY
 HELD.
   6. THE MEMBERS OF THE VARIABLE SUPPLEMENTS BOARD SHALL BE THE TRUSTEES
 OF THE MONIES RECEIVED  BY  OR  BELONGING  TO  THE  SANITATION  VARIABLE

 S. 6129                             4
 
 SUPPLEMENTS  FUND  PURSUANT TO THIS SECTION AND SHALL HAVE FULL POWER TO
 INVEST  SAME,  SUBJECT  TO  THE  TERMS,  CONDITIONS,   LIMITATIONS   AND
 RESTRICTIONS  IMPOSED  BY  THE  LAW UPON SAVINGS BANKS IN THE MAKING AND
 DISPOSING  OF  INVESTMENTS  BY SAVINGS BANKS; AND SUBJECT TO LIKE TERMS,
 CONDITIONS, LIMITATIONS AND RESTRICTIONS, SUCH TRUSTEES SHALL HAVE  FULL
 POWER TO HOLD, PURCHASE, SELL, ASSIGN, TRANSFER OR DISPOSE OF ANY OF THE
 SECURITIES  OR  INVESTMENTS  IN WHICH ANY OF SUCH MONIES SHALL HAVE BEEN
 INVESTED AS WELL AS THE PROCEEDS OF SUCH INVESTMENTS AND OF  ANY  MONIES
 BELONGING TO SUCH FUND.
   7.  THE  VARIABLE SUPPLEMENTS BOARD SHALL PUBLISH ANNUALLY IN THE CITY
 RECORD A REPORT FOR THE PRECEDING YEAR SHOWING THE ASSETS OF THE SANITA-
 TION VARIABLE SUPPLEMENTS FUND AND A STATEMENT  AS  TO  THE  ACCUMULATED
 CASH  AND  SECURITIES  OF SUCH FUND AS CERTIFIED BY THE COMPTROLLER, AND
 SHALL SET FORTH IN SUCH REPORT SUCH  OTHER  FACTS,  RECOMMENDATIONS  AND
 DATA AS THE BOARD MAY DEEM PERTINENT.
   8.  THE COMPTROLLER SHALL BE CUSTODIAN OF THE MONIES AND ASSETS OF THE
 SANITATION  VARIABLE  SUPPLEMENTS  FUND.  ALL  SUCH  MONIES  AND  ASSETS
 INCLUDED IN SUCH FUND OR WHICH SHALL HEREAFTER ACCRUE TO SUCH FUND SHALL
 BE IN HIS OR HER CUSTODY FOR THE PURPOSES OF THIS SECTION SUBJECT TO THE
 DIRECTION, CONTROL AND APPROVAL OF SUCH BOARD AS TO DISPOSITION, INVEST-
 MENT,  MANAGEMENT  AND REPORT. ALL PAYMENTS FROM SUCH FUND SHALL BE MADE
 BY THE COMPTROLLER UPON A VOUCHER SIGNED BY THE SECRETARY OF  THE  VARI-
 ABLE SUPPLEMENTS BOARD.
   9.  EXCEPT  AS  PROVIDED  IN  THIS SECTION, THE TRUSTEES AND EMPLOYEES
 ASSIGNED TO THE VARIABLE SUPPLEMENTS BOARD ARE  PROHIBITED  FROM  HAVING
 ANY  INTEREST,  DIRECTLY  OR  INDIRECTLY, IN THE GAINS OR PROFITS OF ANY
 INVESTMENT OF THE SANITATION  VARIABLE  SUPPLEMENTS  FUND  OR  AS  SUCH,
 DIRECTLY  OR  INDIRECTLY,  FROM RECEIVING ANY PAY OR EMOLUMENT FOR THEIR
 SERVICES. THE TRUSTEES AND SUCH EMPLOYEES, DIRECTLY OR  INDIRECTLY,  FOR
 THEMSELVES  OR  AS AGENTS OR PARTNERS OF OTHERS, SHALL NOT BORROW ANY OF
 ITS FUNDS OR DEPOSITS OR IN ANY MANNER USE THE SAME EXCEPT TO MAKE  SUCH
 CURRENT AND NECESSARY PAYMENTS AS ARE AUTHORIZED BY SUCH BOARD.
   10.    (A) THE SANITATION VARIABLE SUPPLEMENTS FUND SHALL NOT MAKE ANY
 PAYMENTS TO BENEFICIARIES UNLESS A PLAN  SETTING  FORTH  THE  BASIS  AND
 AMOUNTS  OF  SUCH PAYMENTS AND THE QUALIFICATIONS FOR RECEIPT THEREOF IS
 FIRST FILED WITH THE SUPERINTENDENT OF FINANCIAL SERVICES  AND  APPROVED
 BY HIM OR HER AS CONSISTENT WITH THE PROVISIONS OF THIS SECTION.
   (B)  THE  SUPERINTENDENT OF FINANCIAL SERVICES MAY EXAMINE THE AFFAIRS
 OF THE SANITATION VARIABLE SUPPLEMENTS FUND WITH  THE  SAME  POWERS  AND
 JURISDICTION  AS  ARE APPLICABLE IN THE CASE OF AN EXAMINATION OF A LIFE
 INSURANCE COMPANY BY SUCH SUPERINTENDENT  UNDER  ARTICLE  THREE  OF  THE
 INSURANCE LAW.
   § 3. Subdivision a of section 13-133 of the administrative code of the
 city  of  New  York,  as  amended by chapter 255 of the laws of 2000, is
 amended to read as follows:
   a. Regular interest, charges payable, the creation and maintenance  of
 reserves  in  the  contingent  reserve fund and the pension fund and the
 maintenance of annuity reserves, pension reserves  and  reserves-for-in-
 creased-take-home-pay as provided for in this chapter and the payment of
 all pensions, pensions-providing-for-increased-take-home-pay, annuities,
 retirement  allowances,  refunds,  death benefits and any other benefits
 granted under the provisions of this  chapter,  are  hereby  made  obli-
 gations  of  the city.   All income, interest and dividends derived from
 deposits and investments authorized by this chapter shall  be  used  and
 disposed  of  in the manner prescribed by subdivision b of this section.
 Upon the basis of each actuarial determination  and  appraisal  provided

 S. 6129                             5
 
 for  in this chapter, the board shall prepare and submit to the director
 of management and budget an itemized estimate of the  amounts  necessary
 to  be  appropriated  by  the  city  to the various funds to provide for
 payment  in  full during the ensuing fiscal year of all such obligations
 of the city accruing during the ensuing  fiscal  year.  There  shall  be
 included  annually  in  the  budget a sum sufficient to provide for such
 obligations of the city. The comptroller shall pay the sums so  provided
 into  the  various  funds  provided  for by this chapter, subject to the
 provisions of subdivision b of this section. Nothing contained  in  this
 section  shall be construed as preventing the payments, if any, required
 to be made pursuant to sections 13-193 (relating to the  transit  police
 variable  supplements  funds),  13-193  (relating  to the housing police
 variable supplements funds),  13-193.2,  13-193.3,  13-193.4,  13-193.5,
 13-193.7, 13-193.6, 13-195 [and], 13-195.1 AND 13-198 of this chapter.
   §  4.  The  administrative  code of the city of New York is amended by
 adding a new section 13-198 to read as follows:
   § 13-198 PAYMENTS TO SANITATION VARIABLE SUPPLEMENTS FUND. 1. AS  USED
 IN THIS SECTION, THE FOLLOWING TERMS SHALL MEAN AND INCLUDE:
   (A)  "BASE  FISCAL  YEAR". ANY FISCAL YEAR OF THE CITY BEGINNING ON OR
 AFTER JULY FIRST, TWO THOUSAND EIGHTEEN WITH  RESPECT  TO  WHICH  FISCAL
 YEAR A DETERMINATION IS REQUIRED TO BE MADE AS TO WHETHER THE RETIREMENT
 SYSTEM IS REQUIRED TO MAKE A PAYMENT, PURSUANT TO THE PROVISIONS OF THIS
 SECTION, TO THE SANITATION VARIABLE SUPPLEMENTS FUND.
   (B) "CURRENT FISCAL YEAR". THE FISCAL YEAR OF THE CITY NEXT SUCCEEDING
 THE BASE FISCAL YEAR.
   (C)  "TRANSFERABLE  EARNINGS".  THE  TOTAL  AMOUNT  OBTAINED IN A BASE
 FISCAL YEAR WITH RESPECT TO THE  NEW  YORK  CITY  EMPLOYEES'  RETIREMENT
 SYSTEM  BY  FOLLOWING  THE  PROCEDURE  DESCRIBED  IN PARAGRAPH TWELVE OF
 SUBDIVISION A OF SECTION 13-232 OF THIS TITLE.
   (D) "AMOUNT OF ASSETS OF THE RETIREMENT SYSTEM". WITH RESPECT  TO  ANY
 BASE  FISCAL  YEAR, THE AGGREGATE AMOUNT OF ALL ASSETS OF THE RETIREMENT
 SYSTEM ON JUNE THIRTIETH OF SUCH FISCAL YEAR.
   (E) "AMOUNT OF SANITATION ASSETS".  THE AMOUNT OBTAINED BY MULTIPLYING
 THE TOTAL ASSETS OF THE RETIREMENT SYSTEM AS OF JUNE THIRTIETH  OF  SUCH
 BASE  FISCAL YEAR BY (I) THE TOTAL SALARIES OF SANITATION MEMBERS OF THE
 RETIREMENT SYSTEM AS OF SUCH JUNE THIRTIETH AND DIVIDING THE PRODUCT  BY
 (II)  THE  TOTAL SALARIES OF MEMBERS OF THE RETIREMENT SYSTEM AS OF SUCH
 JUNE THIRTIETH.
   (F) "ALLOCATION TO THE SANITATION VARIABLE SUPPLEMENTS  FUND".    WITH
 RESPECT TO ANY BASE FISCAL YEAR, THE AMOUNT OBTAINED:
   (I)  BY MULTIPLYING THE TRANSFERABLE EARNINGS, IF ANY, WITH RESPECT TO
 SUCH BASE FISCAL YEAR BY THE AMOUNT OF SANITATION ASSETS WITH RESPECT TO
 SUCH BASE FISCAL YEAR; AND
   (II) BY DIVIDING THE AMOUNT COMPUTED PURSUANT TO SUBPARAGRAPH  (I)  OF
 THIS  PARAGRAPH  BY  THE  AMOUNT OF ASSETS OF THE RETIREMENT SYSTEM WITH
 RESPECT TO SUCH BASE FISCAL YEAR.
   2. AS SOON AS PRACTICABLE AFTER THE CLOSE OF EACH  BASE  FISCAL  YEAR,
 BUT  NOT  LATER THAN AUGUST THIRTY-FIRST OF THE CURRENT FISCAL YEAR, THE
 BOARD OF THE RETIREMENT SYSTEM SHALL DETERMINE, IN THE  MANNER  PROVIDED
 IN PARAGRAPH (F) OF SUBDIVISION ONE OF THIS SECTION, WHETHER THERE IS AN
 ALLOCATION  TO  THE SANITATION VARIABLE SUPPLEMENTS FUND WITH RESPECT TO
 SUCH BASE FISCAL YEAR, AND  PAY  SUCH  ALLOCATION  FROM  THE  CONTINGENT
 RESERVE FUND TO THE SANITATION VARIABLE SUPPLEMENTS FUND.
   § 5. This act shall take effect immediately.