graph three of this paragraph, for the calendar year referred to in such Occurs. (2) The actuary shall base such annual valuation of liabilities only (i) upon the persons who, as of each such June thirtieth, are beneficiaries and (ii) upon the persons who, being transit police officers in service as of such June thirtieth, may be actuarially expected to retire thereafter as transit police officers for service with twenty or more years of service creditable toward the minimum period. (3) The liabilities determined in such valuation shall be equal to the actuarial present value of accumulated plan benefits. The actuarial assumptions used by the actuary in making such annual valuation of liabilities, including assumptions as to interest rate, mortality of beneficiaries and number of transit police officers in service as of June thirtieth who will retire for service with twenty or more years of service creditable toward the minimum period, shall be adopted by the variable supplements board on the recommendation of the actuary. (j) For the purposes of the valuation of the assets of the variable supplements fund pursuant to paragraphs (e), (f) and (i) of this subdivision, such assets shall be valued at their fair market value as of the applicable date with respect to which such assets are required to be valued under the applicable provisions of such paragraphs. (k) Whenever variable supplements are payable to beneficiaries of the transit police officer's variable supplements fund pursuant to the provisions of this section, such payment, except as provided in paragraphs (f), (g) and (h) of this subdivision, shall not be an obligation of the city or the New York city transit authority or any other governmental entity described in such paragraph (h) and neither the city, nor the transit authority nor any such other governmental entity, except as provided for in such paragraphs (f), (g) and (h), shall guarantee such payment. § 10. Subdivision 4 of section 13-191 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: 4. (a) The variable supplements [board may in its discretion authorize payments from the transit police officer's variable supplements fund to beneficiaries pursuant to the provisions of this section. Subject to the provisions of paragraph (b) of this subdivision, such payments may be made in such form, in such amount and in such cases as the variable supplements board may in its discretion determine; provided, however, that the board, in so exercising its discretion, shall give consideration to equity, fairness and principles of prudent management] fund shall pay variable supplements to beneficiaries in accordance with the succeeding paragraphs of this subdivision. (b) No variable supplements shall be payable to any beneficiary for any calendar year or part thereof preceding January first, nineteen hundred ninety-two. (c) For calendar years succeeding December thirty-first, nineteen hundred ninety-one, the variable supplements fund, subject to the provisions of paragraphs (e), (f), (g) and (h) of subdivision three of this section, and provided any applicable conditions precedent to payability as prescribed by such provisions are satisfied, and subject to the provisions of paragraph (f) of this subdivision, shall pay to each beneficiary, who retired on or after July first, nineteen hundred eightyseven and prior to July first, nineteen hundred eighty-eight, or who, having been in service as a member of the uniformed transit police force and as a member of the retirement system on June thirtieth, nineteen hundred eighty-eight, retired for service prior to January first, nineteen hundred ninety-two, variable supplements payments as follows: (1) for each calendar year following calendar year nineteen hundred ninety-one, but not including the calendar year of the beneficiary's death, a single annual payment to be paid on or about December fifteenth of such year, as follows: (2) for the calendar year of the beneficiary's death (for those beneficiaries who die on or after February first, nineteen hundred ninetytwo), an amount calculated by multiplying one-twelfth times the supplement applicable to the year of death, as provided in the chart set forth in subparagraph one of this paragraph (c), by the number of full calendar months the beneficiary lived during that calendar year prior to the month of his or her death. (d) For calendar years succeeding December thirty-first, nineteen ninety-one, the variable supplements fund, subject to the provisions of paragraphs (e), (f), (g) and (h) of subdivision three of this section and provided any applicable conditions precedent to payability under such provisions are satisfied, and subject to the provisions of paragraph (f) of this subdivision, shall pay to each person who, on June thirtieth, nineteen hundred eighty-eight, was actually employed as a member of the uniformed transit police force and as a member of the retirement system and who retired from service on or after January first, nineteen hundred ninety-two so as to become a beneficiary, variable supplements payments as follows: (1) for the calendar year of retirement, an amount calculated by multiplying one-twelfth times the supplement applicable to the year of retirement, as provided for in the chart set forth in subparagraph one of paragraph (c) of this subdivision, by the number of calendar months elapsing from and including the month next following the month of retirement to the end of such calendar year of retirement, such payment to be made on or about December fifteenth of such year; (2) for each calendar year following the year of retirement, but not including the calendar year of the beneficiary's death, a single annual payment equal to the supplement provided for with respect to each such calendar year as set forth in the chart in subparagraph one of such paragraph (c), which payment shall be made on or about December fifteenth of such year; (3) for the calendar year of the beneficiary's death (for those beneficiaries who die on or after February first, nineteen hundred ninetytwo), an amount calculated by multiplying one-twelfth times the supplement applicable to the year of death, as provided for in the chart set forth in subparagraph one of such paragraph (c), by the number of full calendar months the beneficiary lived during that calendar year prior to the month of his or her death; and (4) if the retirement and death of a beneficiary occur in the same calendar year, aggregate payments under subparagraphs one and three of this paragraph shall be made only in respect to calendar months following the month of retirement and preceding the month of death. EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law (e) The variable supplements fund, subject to the provisions of paragraphs (e), (f), (g) and (h) of subdivision three of this section and provided any applicable conditions precedent to payability under such provisions are satisfied, and subject to the provisions of paragraph (f) of this subdivision, shall pay to each person who became or becomes actually employed as a member of the uniformed transit police force and member of the retirement system on or after July first, nineteen hundred eighty-eight, and who retires for service so as to become a beneficiary, variable supplements payments as follows: a (1) for the calendar year of retirement, an amount calculated by multiplying one-twelfth times the sum of twenty-five hundred dollars by the number of calendar months elapsing from and including the month next following the month of retirement to the end of such calendar year of retirement, such payment to be made on or about December fifteenth of such year; (2) for each calendar year following the year of retirement, but not including the calendar year of the beneficiary's death, a single annual payment to be paid on or about December fifteenth of such year, as follows: 4 Second anniversary year and each succeeding anniversary year to and including the nineteenth anniversary year Twentieth anniversary year and each succeeding anniversary year SUPPLEMENT sum of (1) a lower-based component equal to one-twelfth of the base sum of $2500 multiplied by the number of whole calendar months from and including the first month of such calendar year to and including the month in which the anniversary of the date of retirement occurs, and (2) a higher-based component equal to one-twelfth of the base sum of $3000 multiplied by the number of months remaining in such calendar year for The sum of a lower-based component and $12,000 be (3) for the calendar year of the beneficiary's death, an amount calculated in accordance with the formula for that year set forth in subparagraph two of this paragraph (e) but prorated on the basis of the number of full calendar months the beneficiary lived during that year prior to the month of his or her death; and (4) if the retirement and death of a beneficiary occur in the same calendar year, aggregate payments under subparagraphs one and three above shall be made only in respect to calendar months following the month of retirement and preceding the month of death. [(b)] (f) (1) [No beneficiary shall have a right to receive variable supplements except to the extent, in the manner and for the period authorized by the variable supplements board in the exercise of its discretion pursuant to this section and any such supplements granted may at any time be discontinued by the variable supplements board in the exercise of such discretion] (i) Subject to the provisions of items (ii), (iii) and (iv) of this subparagraph one, on or after January first, nineteen hundred ninety-two, where a beneficiary is entitled to receive variable supplements payments pursuant to paragraph (c), paragraph (d) or paragraph (e) of this subdivision, and that beneficiary is also entitled to receive a supplemental retirement allowance pursuant to any other provision of law enacted on or after January first, nineteen hundred ninety-two (hereinafter referred to as "other supplemental retirement allowance"), the amount of such variable supplement payable for a calendar year or a part of such calendar year to such beneficiary shall be reduced by the amount of such other supplemental retirement allowance that is payable to such beneficiary to the extent that such other supplemental retirement allowance is attributable to the same calendar year or part of such calendar year. (ii) For any beneficiary referred to in paragraph (c) or paragraph (d) of this subdivision, whose variable supplements payment's are being reduced pursuant to item (i) of this subparagraph one because such other supplemental retirement allowance is also payable to that beneficiary, the reduction provided for in such item (i) shall cease as to such beneficiary on the later of (A) the first day of the month next following the month in which such beneficiary attains age sixty-two; or (B) January first, two thousand seven. (iii) For any beneficiary referred to in paragraph (e) of this subdivision, whose variable supplements payments are being reduced pursuant to item (i) of this subparagraph one because such other supplemental retirement allowance is also payable to that beneficiary, the reduction provided for in such item (i) shall cease as to such beneficiary on the later of (A) the first day of the month following the month in which such beneficiary attains age sixty-two; or (B) the first day of the month next following the month in which the nineteenth anniversary of the retirement of such beneficiary occurs. (iv) In any case where the reduction of variable supplements payments to a beneficiary has ceased pursuant to item (ii) or item (iii) of this subparagraph one, that beneficiary, for the purpose of determining his or her eligibility for and the amount of any other supplemental retirement allowance, shall be deemed to have retired on the date of the cessation of such reduction specified in the applicable provisions of such item (ii) or item (iii). (2) The legislature hereby declares that the variable supplements authorized by this section and the granting and receipt thereof: (i) shall not create or constitute membership in a pension or retirement system and shall not create or constitute a contract with any beneficiary or with any transit police member; and (ii) shall not constitute à pension or retirement allowance or benefit under the retirement system or otherwise. (3) Except as otherwise provided in [section] sections 13-193, 13-193.1 and 13-193.2 of this chapter, nothing contained in this section shall create or impose any obligation on the part of the retirement system, or the funds or monies thereof, or authorize such funds or monies to be appropriated or used for any payment under this section or for any purpose thereof. [(c)] (g) Beneficiaries shall be eligible to receive variable supplements pursuant to this section, notwithstanding any other provision of law to the contrary. [(d) (1) The variable supplements board shall not grant any variable supplement pursuant to this section unless the transit police officer's variable supplements fund, at the time of the making of such grant, has in its possession monies or assets which are sufficient to provide such supplement and which have not been encumbered by any other grant of any such supplement. (2) Upon the making of any such grant, the] (h) The monies or assets [encumbered thereby shall be set aside and] of the variable supplements fund shall not be used for any [other] purpose, other than payment of variable supplements pursuant to the provisions of this section, except that they may be invested as authorized by subdivision six of this section. EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law § 11. Subdivision 6 of section 13-191 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 officer's 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. § 12. Subdivision 10 of section 13-191 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: 10. [(a) The transit police officer's variable supplements fund shall not make any payments to beneficiaries unless a plan setting forth the basis and amounts of such payments and the qualifications for receipt thereof is first filed with the superintendent of insurance and approved by him or her as consistent with the provisions of this section. (b)] The superintendent of insurance may examine the affairs of the transit police officer's variable supplements fund with the same powers and jurisdiction as are applicable in the case of an examination of a life insurance company by the superintendent under article three of the insurance law. The transit police officer's variable supplements fund shall be subject to assessment for expenses pursuant to the provisions of [sections] section three hundred thirteen [and three hundred thirtytwo of the insurance law, but shall not be subject to assessment for expenses under any of the provisions of section three hundred thirty-two of the insurance law. § 13. Paragraph (a) of subdivision 1 of section 13-193 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) "Base fiscal year". Any fiscal year of the city beginning on or after July first, nineteen hundred eighty-seven and ending on or before June thirtieth of the first calendar year covered by a payment guarantee (as defined in paragraph (g) of this subdivision), with respect to which fiscal year a determination is required to be made as to whether the retirement system is required to make a payment, pursuant to the provisions of this section, to the transit police officer's variable supplements fund and the transit police superior officers' variable supple ments fund. § 14. Subdivision 1 of section 13-193 of the administrative code of the city of New York, as added by chapter 844 of the laws of 1987, is amended by adding two new paragraphs (g) and (h) to read as follows: of (8) "Calendar year covered by a payment guarantee". The calendar year in which a guarantee, by a guarantee obligor (as defined in paragraph (g) of subdivision one of section 13-191 of this chapter (relating to the transit police officer's variable supplements fund)), of payment variable supplements first takes effect pursuant to paragraph (f) or paragraph (g) of subdivision three of such section, and any succeeding calendar year. (h) "Basis fiscal year related to a payment guarantee". Any fiscal year of the city beginning on or after July first of the first calendar year covered by a payment guarantee (as defined in paragraph (g) of this subdivision). § 15. Section 13-193 of the administrative code of the city of New York, as added by chapter 844 of the laws of 1987, is amended by adding four new subdivisions 4, 5, 6 and 7 to read as follows: 4. The determination as to whether there are transferable earnings with respect to each base fiscal year occurring after June thirtieth, nineteen hundred eighty-seven and prior to July first of the first calendar year covered by a payment guarantee (as defined in paragraph (8) of subdivision one of this section), and if there are such transferable earnings, the amount thereof, shall be made as follows: |