S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6391
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               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:
 
   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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06891-05-7

 S. 6391                             2
 
 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 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

 S. 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.