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

  Section  1.  Subdivisions  e and f of section 50 of the retirement and
social security law, subdivision e as amended by chapter 705 of the laws
of 1964, are amended to read as follows:
  e. The borrowing member's [anuuity] ANNUITY savings account shall  not
be  reduced  by the loan obtained but a subsidiary record shall be main-
tained reflecting the outstanding balance on such loan, as well  as  the
allocation of the payroll deductions to principal and interest. Upon the
member's  withdrawal of his accumulated contributions or retirement, the
balance due on his loan shall be deducted from the amount to his  credit
at  such  time in the annuity savings fund. Upon the death of the member
[prior to the loan being fully insured, that portion  thereof  which  is
uninsured,  shall similarly be deducted from the amount to his credit at
the time of his death in the annuity  savings  fund]  THE  CORRESPONDING
SURVIVOR'S  BENEFIT  WILL  BE  DECREASED  IN AN AMOUNT PRESCRIBED BY THE
COMPTROLLER BASED UPON AN AMORTIZATION  SCHEDULE  CALCULATED  USING  THE
AMOUNT  OF  PRINCIPAL OUTSTANDING, INTEREST RATE AND ESTIMATED LENGTH OF
BENEFIT PAYMENT AS PRESCRIBED BY ACTUARIAL TECHNIQUES PRESCRIBED BY  THE
COMPTROLLER, UNTIL SUCH TIME THAT ALL OUTSTANDING PRINCIPAL AND INTEREST
AMOUNTS HAVE BEEN SATISFACTORILY REPAID.
  f.  In  the  case of any benefit wherein the amount of pension will be
determined, in part, by the amount of annuity,  such  annuity  shall  be
computed upon the basis of accumulated contributions as if there were no
loan  or no additional contributions. The resulting retirement allowance
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

of  any  oustanding loan.] AN AMOUNT PRESCRIBED BY THE COMPTROLLER BASED
UPON AN AMORTIZATION SCHEDULE CALCULATED USING THE AMOUNT  OF  PRINCIPAL
OUTSTANDING,  INTEREST  RATE  AND ESTIMATED LENGTH OF BENEFIT PAYMENT AS
PRESCRIBED  BY ACTUARIAL TECHNIQUES PRESCRIBED BY THE COMPTROLLER, UNTIL
SUCH TIME THAT ALL OUTSTANDING PRINCIPAL AND INTEREST AMOUNTS HAVE  BEEN
SATISFACTORILY REPAID.
  S 2. This act shall take effect immediately.