Bill Text: NY A04922 | 2021-2022 | General Assembly | Introduced


Bill Title: Relates to the management of retirement loans.

Spectrum: Partisan Bill (Republican 5-0)

Status: (Introduced - Dead) 2022-05-10 - held for consideration in governmental employees [A04922 Detail]

Download: New_York-2021-A04922-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          4922

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    February 9, 2021
                                       ___________

        Introduced  by  M. of A. MONTESANO, DiPIETRO -- Multi-Sponsored by -- M.
          of A.  J. M. GIGLIO, PALMESANO, RA -- 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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08500-01-1

        A. 4922                             2

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