Rpld §445-a sub d ¶8, §445-b, sub d ¶8, §445-c sub d ¶12, §504-a sub e ¶9, §504-b sub e ¶13, §504-d sub e
¶10, §604-a sub e ¶9, amd §§445-a, 445-b, 445-c, 517-c & 613-b, R & SS L; amd §13-140, NYC Ad Cd
Permits New York City correction and sanitation members to borrow from accumulated contributions to their retirement plans.
STATE OF NEW YORK
________________________________________________________________________
10241
IN ASSEMBLY
February 12, 2026
___________
Introduced by M. of A. PHEFFER AMATO -- read once and referred to the
Committee on Governmental Employees
AN ACT to amend the administrative code of the city of New York and the
retirement and social security law, in relation to permitting certain
New York city correction and sanitation members to borrow from their
accumulated member contributions; and to repeal certain provisions of
the retirement and social security law relating thereto
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 8 of subdivision d of section 445-a of the
2 retirement and social security law is REPEALED and paragraphs 9 and 10
3 are renumbered paragraphs 8 and 9.
4 § 2. Paragraph 8 of subdivision d of section 445-b of the retirement
5 and social security law is REPEALED and paragraphs 9 and 10 are renum-
6 bered paragraphs 8 and 9.
7 § 3. Paragraph 12 of subdivision d of section 445-c of the retirement
8 and social security law is REPEALED and paragraphs 13, 14 and 15 are
9 renumbered paragraphs 12, 13 and 14.
10 § 4. Paragraph 9 of subdivision e of section 504-a of the retirement
11 and social security law is REPEALED.
12 § 5. Paragraph 13 of subdivision e of section 504-b of the retirement
13 and social security law is REPEALED.
14 § 6. Paragraph 10 of subdivision e of section 504-d of the retirement
15 and social security law is REPEALED.
16 § 7. Paragraph 9 of subdivision e of section 604-a of the retirement
17 and social security law is REPEALED.
18 § 8. Subdivision a of section 13-140 of the administrative code of the
19 city of New York, as amended by chapter 642 of the laws of 1985, is
20 amended to read as follows:
21 a. Any member in city service who shall have been a member continuous-
22 ly at least three years, may borrow from the contingent reserve fund,
23 subject to such rules and regulations as may be approved by such board,
24 an amount not exceeding the sum of (i) seventy-five per centum of the
25 amount in [his or her] such member's account in the annuity savings
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01270-06-6
A. 10241 2
1 fund, (ii) all additional contributions, together with interest thereon,
2 made by such member pursuant to section four hundred forty-five-a of the
3 retirement and social security law, (iii) all additional contributions,
4 together with interest thereon, made by such member pursuant to section
5 four hundred forty-five-b of the retirement and social security law, and
6 (iv) all additional contributions, together with interest thereon, made
7 by such member pursuant to section four hundred forty-five-c of the
8 retirement and social security law. The rate of interest payable on any
9 loan made under this section shall be two per centum higher than the
10 rate of regular interest creditable to the account of the member. The
11 amount so borrowed, together with interest on any unpaid balance thereof
12 shall be repaid to the retirement system in equal installments by
13 deduction from the compensation of the member at the time the compen-
14 sation is paid, but such installments shall be at least five per centum
15 of the member's earnable compensation. All payments of principal and
16 interest made by such member shall be credited to the contingent reserve
17 fund.
18 § 9. Paragraph 1 of subdivision b of section 517-c of the retirement
19 and social security law, as amended by section 1 of part JJ of chapter
20 55 of the laws of 2023, is amended to read as follows:
21 1. A member of the New York state and local employees' retirement
22 system, the New York state and local police and fire retirement system,
23 the New York city employees' retirement system, the New York city board
24 of education retirement system or the New York city police pension fund
25 in active service who has credit for at least one year of member service
26 may borrow, no more than once during each twelve month period, an amount
27 not exceeding seventy-five percent of the total contributions made
28 pursuant to section five hundred four-a (including interest credited at
29 the rate set forth in subparagraph (ii) of paragraph eight of subdivi-
30 sion e of such section five hundred four-a compounded annually), section
31 five hundred four-b (including interest credited at the rate set forth
32 in subparagraph (ii) of paragraph twelve of subdivision e of such
33 section five hundred four-b compounded annually), section five hundred
34 four-d (including interest credited at the rate set forth in subpara-
35 graph (ii) of paragraph nine of subdivision e of such section five
36 hundred four-d compounded annually), or section five hundred seventeen
37 of this article (including interest credited at the rate set forth in
38 subdivision c of such section five hundred seventeen compounded annual-
39 ly) and not less than one thousand dollars, provided, however, that the
40 provisions of this section shall not apply to a New York city [uniformed
41 correction/sanitation revised plan member or an] investigator revised
42 plan member.
43 § 10. Paragraph 1 of subdivision b of section 613-b of the retirement
44 and social security law, as amended by chapter 303 of the laws of 2017,
45 is amended to read as follows:
46 1. A member of the New York state and local employees' retirement
47 system, the New York city employees' retirement system or the New York
48 city board of education retirement system in active service who has
49 credit for at least one year of member service may borrow, no more than
50 once during each twelve month period, an amount not exceeding seventy-
51 five percent of the total contributions made pursuant to section six
52 hundred four-a (including interest credited at the rate set forth in
53 subparagraph (ii) of paragraph eight of subdivision e of such section
54 six hundred four-a compounded annually) or section six hundred thirteen
55 of this article (including interest credited at the rate set forth in
A. 10241 3
1 subdivision c of such section six hundred thirteen compounded annually)
2 and not less than one thousand dollars.
3 § 11. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY: This proposed legislation would permit members of NYCERS
Sanitation and Correction Officer 20-Year plans to take loans against
their accumulated Additional Member Contributions (AMC) with interest,
and permit members of the NYCERS Uniformed Sanitation and Uniformed
Correction Officer 22-Year plans to take loans against their accumulated
Basic Member Contributions (BMC) with interest.
EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Millions)
Year NYCERS
2027 8.5
2028 8.4
2029 8.3
2030 8.2
2031 8.1
2032 8.0
2033 7.9
2034 7.9
2035 7.8
2036 7.8
2037 7.7
2038 1.7
2039 1.7
2040 1.7
2041 1.7
2042 1.7
2043 1.7
2044 1.7
2045 1.7
2046 1.7
2047 1.7
2048 1.7
2049 1.7
2050 1.7
2051 1.7
Projected contributions include future new hires that may be impacted.
For Fiscal Year 2052 and beyond, the expected increase in normal cost as
a level percent of pay for impacted new entrants is approximately 0.04%.
Potential costs related to lost investment earnings are not included
above.
The entire increase in employer contributions will be allocated to New
York City.
PRESENT VALUE OF BENEFITS: The Present Value of Benefits is the
discounted expected value of benefits paid to current members if all
assumptions are met, including future service accrual and pay increases.
Future new hires are not included in this present value.
INITIAL INCREASE (DECREASE) IN ACTUARIAL PRESENT VALUES
as of June 30, 2025 ($ in Millions)
Present Value (PV) NYCERS
A. 10241 4
(1) PV of Employer Contributions: 61.0
(2) PV of Employee Contributions: 0.0
Total PV of Benefits (1) + (2): 61.0
UNFUNDED ACCRUED LIABILITY (UAL): Actuarial Accrued Liabilities are
the portion of the Present Value of Benefits allocated to past service.
Changes in UAL were amortized over the expected remaining working life-
time of those impacted using level dollar payments.
AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
NYCERS
Increase (Decrease) in UAL: 43.6 M
Number of Payments: 11
Amortization Payment: 6.0 M
CENSUS DATA: The estimates presented herein are based on preliminary
census data collected as of June 30, 2025. The census data for the
impacted population is summarized below.
NYCERS
Active Members
- Number Count: 13,360
- Average Age: 43.4
- Average Service: 11.8
- Average Salary: 120,600
IMPACT ON MEMBER BENEFITS: The proposed legislation would permit
members of the Sanitation 20-Year Plan and Correction Officer 20-Year
Plans to borrow up to 75% (100% for Tier 1 and Tier 2) of their AMC. The
proposed legislation would also permit members of the Uniformed Sanita-
tion Force 22-Year Plan and Uniformed Correction Force 22-Year Plan to
borrow up to 75% of their BMC. For members of the Sanitation 20-Year
Plan and Correction Officer 20-Year Plans, the loans on AMC would be in
addition to currently permissible loans on BMC.
Employer contributions will increase if a member takes a loan and the
assets earn more than the rate of interest charged for the loan, or if
there is an outstanding loan balance at retirement.
Currently, member contributions are invested with other NYCERS assets
which are expected to earn 7.0% per annum. When an active member borrows
member contributions from NYCERS, the loan is repaid with interest at
6.0% per annum prior to retirement. The potential costs related to lost
investment earnings are not included in the costs measured in this
fiscal note.
In the event an outstanding loan balance exists at retirement, the
balance of the unpaid loan is converted to an annuity based on the yield
on 30-year U.S. Treasury securities and deducted from the annual retire-
ment allowance otherwise payable. This conversion is made on an actuari-
al basis that is different than the basis used to determine employer
contributions to NYCERS. Therefore unpaid loans result in costs to
employers.
ASSUMPTIONS AND METHODS: The estimates presented herein have been
calculated based on the Revised 2021 Actuarial Assumptions and Methods
of the impacted retirement systems. In addition:
* New entrants were assumed to replace exiting members so that total
payroll increases by 3% each year for impacted groups. New entrant demo-
A. 10241 5
graphics were developed based on data for recent new hires and actuarial
judgement.
* It has been assumed that the yield on 30-year U.S. Treasury securi-
ties would equal 3.5% per year, and that 25% of member balances (BMC
and, if permissible, AMC) would be taken as loans at retirement.
RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend
highly on the actuarial assumptions, methods, and models used, demo-
graphics of the impacted population, and other factors such as invest-
ment, contribution, and other risks. If actual experience deviates from
actuarial assumptions, the actual costs could differ from those
presented herein. Quantifying these risks is beyond the scope of this
Fiscal Note.
This Fiscal Note is intended to measure pension-related impacts and
does not include other potential costs (e.g., administrative and Other
Postemployment Benefits). This Fiscal Note does not reflect any chapter
laws that may have been enacted during the current legislative session.
STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
sky are members of the Society of Actuaries and the American Academy of
Actuaries. We are members of NYCERS, but do not believe it impairs our
objectivity, and we meet the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
To the best of our knowledge, the results contained herein have been
prepared in accordance with generally accepted actuarial principles and
procedures and with the Actuarial Standards of Practice issued by the
Actuarial Standards Board.
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2026-05 dated January 30,
2026 was prepared by the Chief Actuary for the New York City Retirement
Systems and Pension Funds and is intended for use only during the 2026
Legislative Session.
