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A08802 Summary:

BILL NO    A08802 

SAME AS    No same as 

SPONSOR    Montesano

COSPNSR    Raia, Palumbo, Finch, DiPietro, Corwin

MLTSPNSR   Arroyo, Ceretto, Crouch, Giglio, Palmesano, Ra

Amd S50, R & SS L

Relates to the management of retirement loans.
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A08802 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         8802

                                 I N  A S S E M B L Y

                                   February 14, 2014
                                      ___________

       Introduced  by  M.  of  A.  MONTESANO  --  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
   26  UPON  AN  AMORTIZATION SCHEDULE CALCULATED USING THE AMOUNT OF PRINCIPAL
   27  OUTSTANDING, INTEREST RATE AND ESTIMATED LENGTH OF  BENEFIT  PAYMENT  AS
   28  PRESCRIBED  BY ACTUARIAL TECHNIQUES PRESCRIBED BY THE COMPTROLLER, UNTIL
   29  SUCH TIME THAT ALL OUTSTANDING PRINCIPAL AND INTEREST AMOUNTS HAVE  BEEN
   30  SATISFACTORILY REPAID.
   31    S 2. This act shall take effect immediately.

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06517-01-3
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