S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8093
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 25, 2017
                                ___________
 
 Introduced  by  M. of A. ABBATE -- (at request of the State Comptroller)
   -- read once and referred to the Committee on Governmental Employees
 
 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:
 
   Section 1. Subdivision b of section 517-c of the retirement and social
 security  law,  as amended by chapter 18 of the laws of 2012, is amended
 to read as follows:
   b. 1. A member of the New York state and local  employees'  retirement
 system,  the New York state and local police and fire retirement system,
 the New York city employees' retirement system  or  the  New  York  city
 board  of  education  retirement system in active service who has credit
 for at least one year of member service may borrow, no  more  than  once
 during  each  twelve  month period, an amount not exceeding seventy-five
 percent of the total contributions made pursuant to section five hundred
 seventeen of this article (including interest credited at the  rate  set
 forth in subdivision c of such section five hundred seventeen compounded
 annually)  and  not  less  than one thousand dollars, provided, however,
 that the provisions of this section shall not apply to a New  York  city
 uniformed  correction/sanitation  revised plan member or an investigator
 revised plan member.
   2. A MEMBER OF THE NEW YORK  STATE  AND  LOCAL  EMPLOYEES'  RETIREMENT
 SYSTEM  WHO FIRST JOINS SUCH SYSTEM ON OR AFTER JANUARY FIRST, TWO THOU-
 SAND EIGHTEEN IN ACTIVE SERVICE WHO HAS CREDIT FOR AT LEAST ONE YEAR  OF
 MEMBER  SERVICE  MAY  BORROW, NO MORE THAN ONCE DURING EACH TWELVE MONTH
 PERIOD, AN AMOUNT, NOT LESS THAN ONE THOUSAND DOLLARS  AND  WHICH  WOULD
 NOT  CAUSE  THE  BALANCE  OWED  PURSUANT  TO THIS SECTION, INCLUDING ANY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06891-05-7

 A. 8093                             2
 
 AMOUNTS BORROWED THEN OUTSTANDING, TO EXCEED (I) FIFTY  PERCENT  OF  THE
 MEMBER'S  TOTAL  CONTRIBUTIONS  MADE  PURSUANT  TO  SECTION FIVE HUNDRED
 SEVENTEEN OF THIS ARTICLE (INCLUDING INTEREST CREDITED AT THE  RATE  SET
 FORTH IN SUBDIVISION C OF SUCH SECTION FIVE HUNDRED SEVENTEEN COMPOUNDED
 ANNUALLY); OR (II) FIFTY THOUSAND DOLLARS, WHICHEVER IS LESS.
   § 2. Subdivision b of section 613-b of the retirement and social secu-
 rity  law,  as  added  by chapter 920 of the laws of 1990, is amended to
 read as follows:
   b. 1. A member of the New York state and local  employees'  retirement
 system,  the  New York city employees' retirement system or the New York
 city board of education retirement system  in  active  service  who  has
 credit  for at least one year of member service may borrow, no more than
 once during each twelve month period, an amount not  exceeding  seventy-
 five  percent  of  the  total contributions made pursuant to section six
 hundred thirteen (including interest credited at the rate set  forth  in
 subdivision  c of such section six hundred thirteen compounded annually)
 and not less than one thousand dollars.
   2. A MEMBER OF THE NEW YORK  STATE  AND  LOCAL  EMPLOYEES'  RETIREMENT
 SYSTEM  WHO FIRST JOINS SUCH SYSTEM ON OR AFTER JANUARY FIRST, TWO THOU-
 SAND EIGHTEEN IN ACTIVE SERVICE WHO HAS CREDIT FOR AT LEAST ONE YEAR  OF
 MEMBER  SERVICE  MAY  BORROW, NO MORE THAN ONCE DURING EACH TWELVE MONTH
 PERIOD, AN AMOUNT, NOT LESS THAN ONE THOUSAND DOLLARS  AND  WHICH  WOULD
 NOT  CAUSE  THE  BALANCE  OWED  PURSUANT  TO THIS SECTION, INCLUDING ANY
 AMOUNTS BORROWED THEN OUTSTANDING, TO EXCEED (I) FIFTY  PERCENT  OF  THE
 MEMBER'S  TOTAL  CONTRIBUTIONS  MADE  PURSUANT  TO  SECTION FIVE HUNDRED
 SEVENTEEN OF THIS CHAPTER (INCLUDING INTEREST CREDITED AT THE  RATE  SET
 FORTH IN SUBDIVISION C OF SUCH SECTION FIVE HUNDRED SEVENTEEN COMPOUNDED
 ANNUALLY); OR (II) FIFTY THOUSAND DOLLARS, WHICHEVER IS LESS.
   §  3. Subdivision a of section 1207 of the retirement and social secu-
 rity law, as added by chapter 171 of the laws of  2011,  is  amended  to
 read as follows:
   a. 1. Notwithstanding any general, special or local law to the contra-
 ry,  a  member in active service who has credit for at least one year of
 member service may borrow, no more than once within  each  twelve  month
 period,  an  amount  not  exceeding  seventy-five  percent  of the total
 contributions made pursuant to section twelve hundred four of this arti-
 cle or any other article of this chapter and not less than one  thousand
 dollars.
   2. A MEMBER WHO FIRST JOINS SUCH SYSTEM ON OR AFTER JANUARY FIRST, TWO
 THOUSAND EIGHTEEN IN ACTIVE SERVICE WHO HAS CREDIT FOR AT LEAST ONE YEAR
 OF MEMBER SERVICE MAY BORROW, NO MORE THAN ONCE DURING EACH TWELVE MONTH
 PERIOD,  AN  AMOUNT,  NOT LESS THAN ONE THOUSAND DOLLARS AND WHICH WOULD
 NOT CAUSE THE BALANCE OWED  PURSUANT  TO  THIS  SECTION,  INCLUDING  ANY
 AMOUNTS  BORROWED  THEN  OUTSTANDING, TO EXCEED (I) FIFTY PERCENT OF THE
 MEMBER'S TOTAL CONTRIBUTIONS  MADE  PURSUANT  TO  SECTION  FIVE  HUNDRED
 SEVENTEEN  OF  THIS CHAPTER (INCLUDING INTEREST CREDITED AT THE RATE SET
 FORTH IN SUBDIVISION C OF SUCH SECTION FIVE HUNDRED SEVENTEEN COMPOUNDED
 ANNUALLY); OR (II) FIFTY THOUSAND DOLLARS, WHICHEVER IS LESS.
   § 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, including
 any amounts borrowed then outstanding, may not exceed the lesser of  50%
 of the member contribution balance and $50,000.

 A. 8093                             3
 
   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.