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If the riskier investment resulted in a return greater than the bond investment, the difference went into a variable supplement fund, which was used to pay retirees a varying lump-sum amount at the end of the year.
With tax breaks and a special benefit known as the variable supplement fund, which provides retired officers with $8,500 a year on top of their pension, officers often find that their yearly take-home pay is only several thousand dollars less than what they were earning on the job.
"Do we want to send out Christmas bonuses or have more teachers?" Mr. Linn, in noting the payment's history, said it made sense to include the fate of the variable supplement fund in the discussions between labor and management about the overall compensation of uniformed workers, including pensions.
Of course none of these calculations yet include the "fringe" costs of medical, dental, prescription drug and eyeglass insurance, the deferred compensation 401k, IRA contributions, the $12,000 per year "variable supplement fund" contributions, or the extremely generous police pension plan.
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However, they are woefully under-funded; KENT was forced to open a laundry to supplement funds.
And, if we wanted, we could supplement funding for both programs with general government revenue.
The pension bonus, known as Variable Supplement Funds, was first awarded in the late 1960s to police officers and firefighters with 20 years of service.
With the city already facing a projected $2.4 billion budget deficit in the coming fiscal year Mr. Bloomberg made pension reform his "No. 1 priority" in Albany, and specifically called for doing away with the variable supplement funds to save an estimated $1 billion a year.
Such sources supplement funding from the National Science Foundation and USDA, says Sam Wang, who holds a joint appointment at the University of Missouri, St . Louis and the Donald Danforth Plant Science Center, a nonprofit research center, which is also in St . Louis
The next year, local school supplement funds were used to pay the teacher, and eventually the state began funding special education instructors.
In a letter to then-Transportation Secretary Ray LaHood, he requested approval for a $6.295 million Transportation Investment Generating Economic Recovery grant to supplement funding for the city's Downtown Economic Enhancement Project.
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