Bill Text: NY S05593 | 2017-2018 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Authorizes members of the New York state and local employees' retirement system to repay the loan balance at any time.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Passed) 2018-12-21 - SIGNED CHAP.426 [S05593 Detail]

Download: New_York-2017-S05593-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________
                                          5593
                               2017-2018 Regular Sessions
                    IN SENATE
                                     April 19, 2017
                                       ___________
        Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Civil Service and Pensions
        AN ACT to amend the retirement and social security law, in  relation  to
          loans to members of certain retirement systems
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subdivision i of section 517-c of the retirement and social
     2  security law, as amended by chapter 511 of the laws of 2005, is  amended
     3  to read as follows:
     4    i.  Notwithstanding  the provisions of section five hundred sixteen of
     5  this article, whenever a member of such a retirement system, for whom  a
     6  loan  is  outstanding, retires, the retirement allowance payable without
     7  optional modification shall be reduced by a life annuity which is  actu-
     8  arially  equivalent to the amount of the outstanding loan (all outstand-
     9  ing loans shall continue to accrue interest charges  until  retirement),
    10  such life annuity being calculated utilizing the interest rate on thirty
    11  year  United  States  treasury bonds as of January first of the calendar
    12  year of the effective date of retirement and the  mortality  tables  for
    13  options available under section five hundred fourteen of this article. A
    14  retiree of the New York city employees' retirement system [or], board of
    15  education  retirement  system  of  the city of New York, or the New York
    16  state and local employees' retirement system whose benefit has  been  so
    17  reduced may repay the outstanding balance of the loan at any time. Bene-
    18  fits payable after the repayment of the loan shall not be subject to the
    19  actuarial reduction required by this subdivision.
    20    § 2. Subdivision i of section 613-b of the retirement and social secu-
    21  rity  law,  as amended by chapter 511 of the laws of 2005, is amended to
    22  read as follows:
    23    i. Notwithstanding the provisions of  subdivision  b  of  section  six
    24  hundred  twelve  of this article, whenever a member of such a retirement
    25  system, for whom a loan is outstanding, retires, the  retirement  allow-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11071-01-7
        S. 5593                             2
     1  ance  payable  without  optional modification shall be reduced by a life
     2  annuity which is actuarially equivalent to the amount of the outstanding
     3  loan (all outstanding loans shall continue to  accrue  interest  charges
     4  until  retirement),  such  life  annuity  being calculated utilizing the
     5  interest rate on thirty year United States treasury bonds as of  January
     6  first  of  the calendar year of the effective date of retirement and the
     7  mortality tables for options available under section six hundred ten  of
     8  this  article.  A  retiree  of  the  New York city employees' retirement
     9  system [or], board of education retirement system of  the  city  of  New
    10  York, or the New York state and local employees' retirement system whose
    11  benefit  has  been  so  reduced may repay the outstanding balance of the
    12  loan at any time. Benefits payable after the repayment of the loan shall
    13  not be subject to the actuarial reduction required by this subdivision.
    14    § 3. This act shall take effect immediately.