S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4922
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 9, 2021
                                ___________
 
 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.