Bill Text: NY S06391 | 2017-2018 | General Assembly | Introduced
Bill Title: Limits the maximum amount that certain members of the New York state and local employees' retirement system and the New York state and local police and fire retirement system may borrow against retirement contributions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-06-15 - SUBSTITUTED BY A8093 [S06391 Detail]
Download: New_York-2017-S06391-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6391 2017-2018 Regular Sessions IN SENATE May 15, 2017 ___________ Introduced by Sen. GOLDEN -- (at request of the State Comptroller) -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions AN ACT to amend the retirement and social security law, in relation to the maximum amount that certain members of the New York state and local employees' retirement system and the New York state and local police and fire retirement system may borrow against retirement contributions The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision b of section 517-c of the retirement and social 2 security law, as amended by chapter 18 of the laws of 2012, is amended 3 to read as follows: 4 b. 1. A member of the New York state and local employees' retirement 5 system, the New York state and local police and fire retirement system, 6 the New York city employees' retirement system or the New York city 7 board of education retirement system in active service who has credit 8 for at least one year of member service may borrow, no more than once 9 during each twelve month period, an amount not exceeding seventy-five 10 percent of the total contributions made pursuant to section five hundred 11 seventeen of this article (including interest credited at the rate set 12 forth in subdivision c of such section five hundred seventeen compounded 13 annually) and not less than one thousand dollars, provided, however, 14 that the provisions of this section shall not apply to a New York city 15 uniformed correction/sanitation revised plan member or an investigator 16 revised plan member. 17 2. A member of the New York state and local employees' retirement 18 system who first joins such system on or after January first, two thou- 19 sand eighteen in active service who has credit for at least one year of 20 member service may borrow, no more than once during each twelve month 21 period, an amount, not less than one thousand dollars and which would EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06891-05-7S. 6391 2 1 not cause the balance owed pursuant to this section, including any 2 amounts borrowed then outstanding, to exceed (i) fifty percent of the 3 member's total contributions made pursuant to section five hundred 4 seventeen of this article (including interest credited at the rate set 5 forth in subdivision c of such section five hundred seventeen compounded 6 annually); or (ii) fifty thousand dollars, whichever is less. 7 § 2. Subdivision b of section 613-b of the retirement and social secu- 8 rity law, as added by chapter 920 of the laws of 1990, is amended to 9 read as follows: 10 b. 1. A member of the New York state and local employees' retirement 11 system, the New York city employees' retirement system or the New York 12 city board of education retirement system in active service who has 13 credit for at least one year of member service may borrow, no more than 14 once during each twelve month period, an amount not exceeding seventy- 15 five percent of the total contributions made pursuant to section six 16 hundred thirteen (including interest credited at the rate set forth in 17 subdivision c of such section six hundred thirteen compounded annually) 18 and not less than one thousand dollars. 19 2. A member of the New York state and local employees' retirement 20 system who first joins such system on or after January first, two thou- 21 sand eighteen in active service who has credit for at least one year of 22 member service may borrow, no more than once during each twelve month 23 period, an amount, not less than one thousand dollars and which would 24 not cause the balance owed pursuant to this section, including any 25 amounts borrowed then outstanding, to exceed (i) fifty percent of the 26 member's total contributions made pursuant to section five hundred 27 seventeen of this chapter (including interest credited at the rate set 28 forth in subdivision c of such section five hundred seventeen compounded 29 annually); or (ii) fifty thousand dollars, whichever is less. 30 § 3. Subdivision a of section 1207 of the retirement and social secu- 31 rity law, as added by chapter 171 of the laws of 2011, is amended to 32 read as follows: 33 a. 1. Notwithstanding any general, special or local law to the contra- 34 ry, a member in active service who has credit for at least one year of 35 member service may borrow, no more than once within each twelve month 36 period, an amount not exceeding seventy-five percent of the total 37 contributions made pursuant to section twelve hundred four of this arti- 38 cle or any other article of this chapter and not less than one thousand 39 dollars. 40 2. A member who first joins such system on or after January first, two 41 thousand eighteen in active service who has credit for at least one year 42 of member service may borrow, no more than once during each twelve month 43 period, an amount, not less than one thousand dollars and which would 44 not cause the balance owed pursuant to this section, including any 45 amounts borrowed then outstanding, to exceed (i) fifty percent of the 46 member's total contributions made pursuant to section five hundred 47 seventeen of this chapter (including interest credited at the rate set 48 forth in subdivision c of such section five hundred seventeen compounded 49 annually); or (ii) fifty thousand dollars, whichever is less. 50 § 4. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: This bill would limit the member loan amounts of those who first become members of the New York State and Local Employees Retirement System (ERS) or the New York State and Local Police and Fire Retirement System (PFRS) on or after January 1, 2018. The loan amount, includingS. 6391 3 any amounts borrowed then outstanding, may not exceed the lesser of 50% of the member contribution balance and $50,000. If this bill is enacted, we estimate that there would be a small initial administrative cost to the system to revise publications and member loan processes. Summary of relevant resources: The membership data used in measuring the impact of the proposed change was the same as that used in the March 31, 2016 actuarial valu- ation. Distributions and other statistics can be found in the 2016 Report of the Actuary and the 2016 Comprehensive Annual Financial Report. The actuarial assumptions and methods used are described in the 2015 and 2016 Annual Report to the Comptroller on Actuarial Assumptions, and the Codes Rules and Regulations of the State of New York: Audit and Control. The Market Assets and GASB Disclosures are found in the March 31, 2016 New York State and Local Retirement System Financial Statements and Supplementary Information. I am a member of the American Academy of Actuaries and meet the Quali- fication Standards to render the actuarial opinion contained herein. This estimate, dated March 9, 2017 and intended for use only during the 2017 Legislative Session, is Fiscal Note No. 2017-73, prepared by the Actuary for the New York State and Local Retirement System.
