Bill Text: NY A05727 | 2013-2014 | General Assembly | Introduced
Bill Title: Relates to the management of retirement loans.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2013-03-06 - referred to governmental employees [A05727 Detail]
Download: New_York-2013-A05727-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 5727 2013-2014 Regular Sessions I N A S S E M B L Y March 6, 2013 ___________ Introduced by M. of A. JORDAN, MONTESANO, CROUCH -- Multi-Sponsored by -- M. of A. HAWLEY -- 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. LBD06517-01-3 A. 5727 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 S 2. This act shall take effect immediately.