S T A T E O F N E W Y O R K
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4922
2021-2022 Regular Sessions
I N A S S E M B L Y
February 9, 2021
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Introduced by M. of A. MONTESANO, DiPIETRO -- Multi-Sponsored by -- M.
of A. J. M. GIGLIO, PALMESANO, RA -- 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.
LBD08500-01-1
A. 4922 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.
§ 2. This act shall take effect immediately.