Bill Text: NY A01724 | 2015-2016 | General Assembly | Introduced

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Bill Title: Relates to the management of retirement loans.

Spectrum: Strong Partisan Bill (Republican 11-1)

Status: (Introduced - Dead) 2016-05-24 - held for consideration in governmental employees [A01724 Detail]

Download: New_York-2015-A01724-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1724
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 12, 2015
                                      ___________
       Introduced by M. of A. MONTESANO, RAIA, PALUMBO, FINCH, DiPIETRO, CORWIN
         --  Multi-Sponsored  by  --  M. of A. ARROYO, CERETTO, CROUCH, GIGLIO,
         PALMESANO, RA -- read once and referred to the  Committee  on  Govern-
         mental Employees
       AN  ACT  to amend the retirement and social security law, in relation to
         the management of retirement loans
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Subdivisions  e and f of section 50 of the retirement and
    2  social security law, subdivision e as amended by chapter 705 of the laws
    3  of 1964, are amended to read as follows:
    4    e. The borrowing member's [anuuity] ANNUITY savings account shall  not
    5  be  reduced  by the loan obtained but a subsidiary record shall be main-
    6  tained reflecting the outstanding balance on such loan, as well  as  the
    7  allocation of the payroll deductions to principal and interest. Upon the
    8  member's  withdrawal of his accumulated contributions or retirement, the
    9  balance due on his loan shall be deducted from the amount to his  credit
   10  at  such  time in the annuity savings fund. Upon the death of the member
   11  [prior to the loan being fully insured, that portion  thereof  which  is
   12  uninsured,  shall similarly be deducted from the amount to his credit at
   13  the time of his death in the annuity  savings  fund]  THE  CORRESPONDING
   14  SURVIVOR'S  BENEFIT  WILL  BE  DECREASED  IN AN AMOUNT PRESCRIBED BY THE
   15  COMPTROLLER BASED UPON AN AMORTIZATION  SCHEDULE  CALCULATED  USING  THE
   16  AMOUNT  OF  PRINCIPAL OUTSTANDING, INTEREST RATE AND ESTIMATED LENGTH OF
   17  BENEFIT PAYMENT AS PRESCRIBED BY ACTUARIAL TECHNIQUES PRESCRIBED BY  THE
   18  COMPTROLLER, UNTIL SUCH TIME THAT ALL OUTSTANDING PRINCIPAL AND INTEREST
   19  AMOUNTS HAVE BEEN SATISFACTORILY REPAID.
   20    f.  In  the  case of any benefit wherein the amount of pension will be
   21  determined, in part, by the amount of annuity,  such  annuity  shall  be
   22  computed upon the basis of accumulated contributions as if there were no
   23  loan  or no additional contributions. The resulting retirement allowance
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05108-01-5
       A. 1724                             2
    1  shall then be reduced by [the actuarial equivalent of the present  value
    2  of  any  oustanding  loan] AN AMOUNT PRESCRIBED BY THE COMPTROLLER BASED
    3  UPON AN AMORTIZATION SCHEDULE CALCULATED USING THE AMOUNT  OF  PRINCIPAL
    4  OUTSTANDING,  INTEREST  RATE  AND ESTIMATED LENGTH OF BENEFIT PAYMENT AS
    5  PRESCRIBED BY ACTUARIAL TECHNIQUES PRESCRIBED BY THE COMPTROLLER,  UNTIL
    6  SUCH  TIME THAT ALL OUTSTANDING PRINCIPAL AND INTEREST AMOUNTS HAVE BEEN
    7  SATISFACTORILY REPAID.
    8    S 2. This act shall take effect immediately.