S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2695
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 26, 2023
                                ___________
 
 Introduced  by  M.  of  A.  BLUMENCRANZ -- 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
 of any oustanding loan] AN AMOUNT PRESCRIBED BY  THE  COMPTROLLER  BASED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06885-01-3
              

 A. 2695                             2
 
 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.
   § 2. This act shall take effect immediately.