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subdivision) in accordance with the method of computation set forth in the succeeding subparagraphs of this paragraph (8).

(2) The amount of income earned by the retirement system during the basic* fiscal year related to a payment guarantee from its investment in equities shall be computed.

(3) To each such amount of income for each such basis fiscal year there shall be added the capital gains, realized and unrealized, occurring during such basis fiscal year by reason of such investments.

(4) From the sums resulting from the addition prescribed by subpara, graph three of this paragraph there shall be subtracted the capital losses, realized or unrealized, occurring during such basis fiscal year by reason of such investment.

(5) In the event that any equity is sold during any such basis fiscal year, the expense of such sale, including but not limited to broker's commissions, shall be deducted from capital gain or added to capital loss, in determining whether such sale produced a capital gain or a capital loss and the amount thereof.

(6) The remainder resulting from the subtraction prescribed by subparagraph foịr of this paragraph shall be adjusted so that it equals the amount which it would have been in the absence of the enactment of the act which added this paragraph (8).

(7) Any adjustment required to be made pursuant to the provisions of subparagraph six of this paragraph shall be computed pursuant to a scientific method recommended to the board of trustees of the retirement system by the actuary and approved by such board; provided that if such board is unable to approve, by the required vote, any such formula recommended by the actuary, such adjustment shall be computed pursuant to a scientific formula recommended by the actuary and approved by an arbitrator designated pursuant to the procedure set forth in subparagraph (b) of paragraph eight of subdivision a of section 13-232 of this title, as made applicable to this section 13-193.3 by subdivision two thereof. For the purposes of this paragraph, the term "transferable earnings" set forth in such subparagraph (b) shall be deemed to TPSOVSF cumulative earnings factor (as defined in paragraph (j) of this subdivision) which is a positive quantity.

(8) The equity experience factor for such basis fiscal year shall be the amount remaining, after the adjustment prescribed by subparagraphs six and seven of this paragraph has been made.

(h) "Aypothetical fixed income securities earnings". (1) The aggregate of the hypothetical interest yields computed pursuant to subparagraphs two, three and four of this paragraph (h).

(2) The board of trustees of the retirement system shall compute with respect to each investment made or maintained by the retirement system in an equity during the basis fiscal year related to a payment guarantee (as defined in paragraph (d) of this subdivision), the amount of interest which would have been hypothetically earned during such fiscal year, under the methods of calculation prescribed in this paragraph (h), if

amount equal to such investment had instead been hypothetically invested in fixed income securities and such securities had been held by the retirement system for period (in the basis fiscal year) coextensive with the period during which such equity was held by the retirement system in the basis fiscal year.

(3) For the purposes of this section, the amount of any such investment in an equity during the basis fiscal year shall be deemed to be:

(i) the market value of the equity on the first day of the basis fiscal year, in the case of any such equity acquired by the retirement system prior to the commencement of such fiscal year and held by the retirement system on the first day of such fiscal year; and

(ii) the total amount paid by the retirement system to acquire the equity, including but not limited to broker's commissions and other penses of such acquisition, in the case of any such equity which is acquired by the retirement system during the basis fiscal year. (4) For

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purposes of this section, the amount of interest which would have been earned by the retirement system

such hypothetical fixed income securities during the basis fiscal year shall be deemed to be the amount obtained :

(i) by multiplying the amount of the investment in such equity, determined as prescribed by subparagraph three of this paragraph (h), by the assumed rate of interest for the basis fiscal year; and

* So in original. ("basic" should be "basis". )

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(ii) by, prorating the interest so computed, in any case where the investment in such equity was maintained by the retirement system

for part of the basis fiscal year; and

(iii) by multiplying the amount of interest computed for the full basis fiscal year pursuant to items, (i) and (ii) of this subparagraph by a fraction,

the numerator of which is the amount designated as the equity experience factor with respect to such basis fiscal year by subparagraph eight of paragraph (8) of this subdivision three and the denominator of which is the remainder produced by the subtraction prescribed by subparagraph four of such paragraph (8) with respect to such basis fiscal year; and

(iv), by adding together the products of all such multiplications per; formed pursuant to item (iii) of this subparagraph in relation to all such equities held by the retirement system during such fiscal year.

(i) "Cumulative earnings factor" (1) The cumulative earnings factor for any basis fiscal year related to a payment guarantee (as defined in paragraph (d) of this subdivision) shall be determined as follows:

If the cumulative earnings factor for the immediately preceding basis fiscal year related to a payment guarantee was positive quan-, tity,

the cumulative earnings factor for the basis fiscal year related to a payment guarantee shall be equal to the earnings differential for the basis fiscal year related to a payment guarantee.

(ii) If the cumulative earnings factor for the immediately preceding basis fiscal year related to a payment guarantee was negative

quan, the cumulative earnings factor for the basis fiscal year related to a payment guarantee shall be equal to the sum of:

(A) the earnings differential for the basis fiscal year related to a payment guarantee; and

(B) the cumulative earnings factor for the immediately preceding basis fiscal year related to a payment guarantee.

(2) In applying the provisions of this paragraph (i) for the first basis fiscal year related to a payment guarantee, the term defined in paragraph (f). of this subdivision as "cumulative earnings factor as of June thirtieth in the first calendar year

covered by

payment guarantee" shall be substituted for the term "cumulative earnings factor for the immediately preceding basis fiscal year related

to

payment guarantee."

(j) "TPSOVSF cumulative earnings factor". With respect to any basis fiscal year related to a , payment guarantee (as defined in paragraph (d) of this subdivision), the amount obtained by multiplying the allocation to the transit police variable supplements funds (as defined in paragraph (f) of subdivision one of transit police section 13-193 of this chapter, as made applicable to this section 13-193.3 by subdivision thereof), for such basis fiscal year related to a payment guarantee by a fraction, the numerator of which shall be the total contributions made to the retirement system with respect to such basis fiscal year related to a payment guarantee on behalf of all transit police members who transit police superior officers (as defined in subdivision eighty-four of section 13-101 of this title) as of the last day of such basis fiscal year, and the denominator of which shall be the total contributions made to the retirement system with respect to such basis fiscal year related to a payment guarantee on behalf of all transit police members who are members of the uniformed transit police force as of the last day of such basis fiscal year.

(k) "Current fiscal year related to a payment guarantee", The fiscal year of the city next succeeding basis fiscal year related to payment guarantee (as defined in paragraph (d) of this subdivision). 4. As

as practicable after the close of each basis fiscal year related to a payment guarantee (as defined in paragraph (d) of subdivision three of this section), but not later than August thirty-first of the current fiscal year related to a payment guarantee (as defined in paragraph (k) of subdivision three of this section), the board shall compute the TPSOVSF cumulative earnings factor (as defined in paragraph (j) of subdivision three of this section) with respect to such basis fiscal year.

5. If the TPSOVSF cumulative earnings factor for the basis fiscal year related to a payment guarantee is a positive quantity, the retirement system,

before August thirty-first of the current fiscal year related to a payment guarantee, shall pay from its contingent reserve EXPLANATION—Matter in italics is new; matter in brackets [ ] is old law

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fund to the transit police superior officers' variable supplements fund & sum equal to the amount of such factor.

6. The comptroller shall furnish to the board of trustees of the retirement system such information and data as it may request for the purpose of carrying out the provisions of this section.

§ 18. (a) The legislature hereby finds that the provisions of this act remedy certain inequities which operate to the disadvantage of the city of New York and remedy certain other inequities which operate to the disadvantage of the persons eligible to receive variable supplements from the transit police officer's variable supplements fund provided for by section 13-191' of the administrative code of the city of New York. The provisions of subdivision (b) of this section constitute a part of the remedies for such inequities. (b) On

before December first of the calendar year in which a guarantee of payment of variable supplements first takes effect pursuant to

the applicable provisions of paragraph (f) or paragraph (8) of subdivision three of section 13-191 of such code, as added by section nine of this act, an amount equal to fifteen per centum of the assets of such variable supplements fund as of October thirty-first of such calendar year shall be transferred to and become the property of the city of New York.

§ 19. Paragraph (a) of subdivision 2 of section 13-192 of the administrative code of the city of New York, as added by chapter 844 of the laws of 1987, is amended to read as follows:

(a) There is hereby, established a fund, to be known as the transit police superior officers' variable supplements fund. Such fund shall consist of such monies as may be paid thereto by the retirement system, pursuant to the provisions of [section] sections 13-193 and 13-193.3 of this chapter and all other monies received by such fund from any other source pursuant to law.

§ 20. Subparagraph 3 of paragraph (b) of subdivision 4 of section 13-192 of the administrative code of the city of New York, as added by chapter_844 of the laws of 1987, is amended to read as follows:

(3) Except as otherwise provided in [section] sections 13-193 and 13-193.3 of this chapter, nothing contained in this section shall create

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

for any payment under this section or for any purpose thereof.

§ 21. Subdivision 6 of section 13-192 of the administrative code of the city of New York, as added by chapter 844 of the laws of 1987, is amended to read as follows:

6. (a) The members of the variable supplements board shall be the trustees of the monies received by or belonging to the transit police superior officers' variable supplements fund pursuant to this section and shall have full power to invest same, subject to the terms, conditions,, limitations and restrictions imposed by 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 of the proceeds of such investments and of any monies belonging to such fund.

(b) The members of the variable supplements board shall have the same investment powers and power to delegate such powers as are vested by the code and the retirement and social security law in the members of the board of trustees of the retirement system.

S 22. Subdivision a of section 13-133 of the administrative code of the city of New York, as separately amended by chapters 844 and 846 of the laws of 1987, is amended to read as follows:

Regular interest, charges payable, the creation and maintenance of reserves in the contingent reserve fund and the pension

fund and the maintenance annuity reserves,

pension reserves and reserves-forincreased-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 obligations of the city. All income, interest and dividends derived from deposits and investments authorized by this chapter shall be ed and disposed of in the manner prescribed by subdivision b of this section. Upon the basis of each actuarial determination and appraisal provided for in this chapter, the board shall prepare pursuant section

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hundred twelve of the charter 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 (section] sections 13-193 (relating to the transit police variable supplements Funds), 13-193 (relating to the housing police variable supplements funds), 13-193.2 and 13-193.3 of this chapter.

§ 23. In the event that any provision of this act, other than section seventeen or section eighteen thereof, shall be adjudged to be invalid or unconstitutional on its face or in its application to any person or circumstances by a court of competent jurisdiction, after all rights to appeal have been exhausted, (a) this act and all parts thereof shall become null and void as of the earlier of the date of enactment of this act or the effective date of this act; (b), all laws governing or applicable to the transit police officer's variable supplements fund, as they existed immediately prior to the earlier of the date of enactment of this act or the effective date of this act, shall be in full force and effect, and shall be deemed to have been in full force and effect from the earlier of the date of enactment of this act or the effective date of this act; (c) no person shall be deemed to have any rights under this act; and (d) any variable supplements paid by the transit police officer's variable supplements fund to beneficiaries of the New York City employees' retirement system pursuant to the provisions of this act shall be offset against any such variable supplements payable under such laws (as they existed immediately prior to the earlier of the date of enactment or effective date of this act) for any period of time from and after such earlier date.

§ 24. In the event that any provision of section seventeen or section eighteen of this act shall be adjudged to be invalid or unconstitutional

its face or in its application to any person or circumstances by a court of competent jurisdiction, after all rights to appeal have been exhausted, such judgment shall not affect, impair or invalidate the remainder of this act, but shall be confined in its operation to the provision of such section seventeen or such secțion eighteen directly involved in the controversy in which judgment shall have been rendered.

§ 25. This act shall také effect on July 1, 1992.

FISCAL NOTE. -This proposed legislation would modify the potential variable supplement benefits to be paid from the Transit Police Officers' Variable Supplements Fund ("TPOVSF") to any Transit Police Officer ("TPO") of the New York City Transit Authority Police Department ("TAPD") who retires for service as a TPO on or after July 1, 1987.

The proposed legislation provides that any TPO hired before July 1, 1988 who retires for service as a TPO on or after July 1, 1987 will receive a defined schedule of benefits starting at an annual rate of $4,500 payable during, December 1992 and increasing annually thereafter by $500° to a maximum benefit of $ 12,000 per annum.

Any TPO hired on or after July 1, 1988 who retires for service as a TPO will receive a defined schedule of benefits starting at an annual rate of $2,500 payable during, December of the year of retirement and increasing annually thereafter by $500 to a maximum benefit of $12,000 per annum.

These defined schedules of benefits are to be guaranteed by the City of New York (or successor Obligor, if applicable) for all calendar years on and after calendar year 2007. Before calendar year 2007 the benefits described are payable only, if the TPOVSF has sufficient assets to fully pay all such benefits in the applicable calendar year, or if the guarantee of benefits has come into effect earlier.

The guarantee of benefits comes into effect prior to calendar year 2007 if the market value of assets of the TPOVSF exceeds the actuarial present value of the defined schedule of benefits payable through the year 2006 plus 15% of the TPOVSF assets at that time. EXPLANATIONMatter in italics is new; matter in brackets [ ] is old law

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This proposed legislation also provides that whenever the guarantee of the defined schedule of benefits comes into effect, then the TPOVSF will transfer 15% of the market value of TPOVSF assets to the City of New York.

Due to the mechanics currently in place to finance the TPOVSF, it is not possible to ascertain whether there will be sufficient assets in the TPOVSF each year prior to calendar year 2007 to pay, the defined schedules of benefits, nor exactly when the guarantee of these defined schedules of benefits will become effective.

The total actuarial present value of the defined schedules of benefits payable for all calendar years on and after 1992 equals approximately $59.4 million for all active members of the TAPD who are assumed to retire for service as TPO and any TPO currently retired for service who retired on or after July 1, 1987.

The market value of assets of the TPOVSF equals approximately $4.5 million as of June 30, 1991.

The timing and amount of future Transferable Earnings ("SKIM") are uncertain and depend upon the interaction of the equity and bond markets. However, assuming equity assets of the New York City Employees' Retirement System ("NYCERS") as of June 30, 1991 grow at 4%

per year after SKIM, the proportion of TPO within the TAPD and NYCERS remains constant, and that SKIM equals 2% of equity assets per year, then the

present value of future SKIM from NYCERS to the TPOVŠF over the next 20 years would equal approximately $54.5 million.

A comparison of the actuarial present value of the defined schedules of benefits of approximately $59.4 million with the sum of the existing TPOVSF assets of approximately $4.5 million plus the Present Value of Future SKIM from NYCERS to the TPOVSF of approximately $54.5 million suggests that no additional SKIM from NYCERS to the TPOVSF, nor subsequent employer contributions to NYCERS, are required in excess of those that are necessary under existing legislation. Thus,

in

summary, the enactment of this proposed legislation is not expected to increase the Present Value of Future SKIM from NYCERS to the TPOVSF, and, consequently, is not expected to increase employer contributions payable to NYCERS.

The enactment of this proposed legislation is expected to increase administrative expenses of NYCERS, the employer, and certain New York City agencies.

Actuarial present values of benefits were determined as of June 30, 1991 based on the member data used for the June 30, 1991 actuarial valuation of NYCERS and included 4,138 Transit Police active members and 252 retired TPO who retired for service on or after July 1, 1987.

The actuarial assumptions_used were the same as used for the June 30, 1991 actuarial valuation of Transit Police. The methodology employed to determine the actuarial present values of the benefits includes an assumption that 57% of all active members of the TAPD who retire for service will retire as TPO.

CHAPTER 578

AN ACT to amend chapter 268 of the laws of 1916 relating to the incor

poration of the United Synagogue of America, in relation to changing its name to The United Synagogue of Conservative Judaism Became a law July 24, 1992, with the approval of the Governor.

Passed by a majority vote, three-fifths being present. The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Sections 1 and 2 of chapter 268 of the laws of 1916, relating to the incorporation of the United Synagogue of America, are amended to read as follows: Section

Adler, Louis Ginzberg, G. H. Kauyar, M. M. Kaplan, Elias L. Solomon, Meyer Goodfriend, Jacob Kohn, Charles I. Hoffman, Herman H. Abramowitz, A. M. Hershman, Michael Salit, Samuel C. Lampert, Julius

H.

Greenstone, Herman H. Rubenovitz, William Levy, Nathan Pinansky, Alexander Marx, Max D. Klein, Samuel Wacht, Solomon Solis

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