Bill Text: NY A02695 | 2023-2024 | General Assembly | Introduced

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Bill Title: Relates to the management of retirement loans.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2024-01-03 - referred to governmental employees [A02695 Detail]

Download: New_York-2023-A02695-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2695

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 26, 2023
                                       ___________

        Introduced  by  M.  of  A.  BLUMENCRANZ -- read once and referred to the
          Committee on Governmental 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
    24  shall  then be reduced by [the actuarial equivalent of the present value
    25  of any oustanding loan] an amount prescribed by  the  comptroller  based

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06885-01-3
        A. 2695                             2

     1  upon  an  amortization schedule calculated using the amount of principal
     2  outstanding, interest rate and estimated length of  benefit  payment  as
     3  prescribed  by actuarial techniques prescribed by the comptroller, until
     4  such  time that all outstanding principal and interest amounts have been
     5  satisfactorily repaid.
     6    § 2. This act shall take effect immediately.