Bill S2145-2013

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

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.

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  • Jan 11, 2013: REFERRED TO CITIES

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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.


Text

STATE OF NEW YORK ________________________________________________________________________ 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
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
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
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 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:
(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
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 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
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
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
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
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
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
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:
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 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",
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
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
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
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
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.
(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")

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