§ 613-b. Loans to members of certain retirement systems. a. For the
purposes of this section, the term "retirement board" or "board" shall
mean the head of the retirement system as defined in subdivision f of
section six hundred one of this article.

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
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 six hundred
thirteen of this article (including interest credited at the rate set
forth in subdivision c of such section six hundred thirteen compounded
annually); or (ii) fifty thousand dollars, whichever is less.

c. An amount so borrowed, together with interest on any unpaid balance
thereof, shall be repaid in equal installments which shall be made by
the borrower directly to the retirement board or through regular payroll
deduction. Such installments shall be in such amount as the retirement
board shall approve; however, they shall be at least (a) two percent of
the member's contract salary, and (b) sufficient to repay the amount
borrowed, together with interest on unpaid balances thereof within a
period not in excess of five years. In the event of default, such
retirement board shall be authorized to collect such payments due from
the employer of such member through payroll deduction and such member
shall forfeit all future entitlement to borrow from the retirement
system until the unpaid balance of the loan outstanding at the time of
default is fully paid. Such retirement board, at any time, may accept
payments on account of any loan in addition to the installments fixed
for repayment thereof. All payments of principal and interest at the
lower of the rates set forth in either subdivision c of section six
hundred thirteen of this article or subdivision d of this section made
by the member shall be credited to his or her account as principal or
interest. Any additional interest paid by the member shall be credited
to the appropriate fund of the retirement system.

d. The rate of interest payable upon loans made pursuant to this
section shall: (1) for members of the New York state and local
employees' retirement syatem, be one percent less than the valuation
rate of interest adopted for such system, however, in no event shall the
rate be less than the rate set forth in subdivision c of section six
hundred thirteen of this article; (2) for members of the New York city
employees' retirement system, be one percent less than the regular
interest rate established pursuant to subdivision (c) of section
13-101.12 of the administrative code of the city of New York for such
system, however, in no event shall the rate be less than the rate set
forth in subdivision c of section six hundred thirteen of this article;
and (3) for members of the New York city board of education retirement
system, be one percent less than the regular interest rate established
pursuant to subparagraph four of paragraph (b) of subdivision sixteen of
section twenty-five hundred seventy-five of the education law for such
system, however, in no event shall the rate be less than the rate set
forth in subdivision c of section six hundred thirteen of this article.
Whenever there is a change in the interest rate, it shall be applicable
or loans made or renegotiated after the date of such change in the
interest rate.

e. A service charge payable upon loans made pursuant to this section
shall be set by the retirement board in an amount sufficient to cover
the cost to the retirement system of administering the loans. Such
charge shall be paid to the retirement system when the loan is made or
in equal installments over the period the loan is outstanding. The
amount of the service charge shall be credited to the fund from which
administrative expenses are paid.

f. Each loan made pursuant to this section shall be insured against
the death of the member in an amount equal to the amount of the loan
outstanding at any given time; with the exception that until thirty days
have elapsed after the making thereof, no part of the loans shall be
insured. Such insurance shall be provided by the retirement board
through the retirement system. Upon the death of the member, the amount
of insurance so payable shall be credited to his or her account. The
premium payable by the member for such insurance shall be set by the
retirement board at a rate not to exceed one percent of the amount
loaned.

Such premium shall be prorated to July first next, or such other date
fixed by the retirement board as is appropriate, and shall be paid to
the retirement system in equal installments over the period of the loan.
Thereafter, a premium not to exceed one percent per annum of the present
value of the outstanding loan as of July first, or such other
appropriate date, shall be paid in the same manner each succeeding year
until such loan is repaid or the member is retired.

The retirement board shall, at least annually, review such premium
rate, and may, in its discretion, increase or reduce the premium, modify
the terms or conditions of coverage, or discontinue the insurance of
loans. In no event shall this subdivision impose any obligation upon
the retirement board to continue to insure loans of members upon the
terms and conditions herein provided or upon any other terms or
conditions.

g. Such a retirement board is authorized to establish such special
funds as may be necessary to carry out the provisions of subdivisions e
and f of this section.

h. Whenever a member of such a retirement system, for whom a loan is
outstanding, becomes entitled to the return of his or her contributions
because of withdrawal from such system or because of death, the amount
of any loan outstanding on such date, including accrued interest as
provided in subdivision d of this section, shall be construed to already
have been returned to such member and the refund of contributions to
which he shall then be entitled shall be the net amount of such
contributions together with interest thereon pursuant to subdivision c
of section six hundred thirteen of this article.

i. Notwithstanding the provisions of subdivision b of section six
hundred twelve of this article, whenever a member of such a retirement
system, for whom a loan is outstanding, retires, the retirement
allowance payable without optional modification shall be reduced by a
life annuity which is actuarially equivalent to the amount of the
outstanding loan (all outstanding loans shall continue to accrue
interest charges until retirement), such life annuity being calculated
utilizing the interest rate on thirty year United States treasury bonds
as of January first of the calendar year of the effective date of
retirement and the mortality tables for options available under section
six hundred ten of this article. A retiree of the New York city
employees' retirement system, board of education retirement system of
the city of New York, or the New York state and local employees'
retirement system whose benefit has been so reduced may repay the
outstanding balance of the loan at any time. Benefits payable after the
repayment of the loan shall not be subject to the actuarial reduction
required by this subdivision.

j. Such a retirement board is authorized to adopt such rules and
regulations as it finds to be necessary in administering the provisions
of this section.

k. Such a retirement board shall discharge any evidence of a loan to a
member pursuant to this section upon the satisfaction of the obligation
of the member thereunder.

l. The retirement board shall have no right to bring suit in any court
against any member to enforce the amount due under this section, and the
retirement system's sole remedy upon death, retirement or withdrawal
shall be to offset the amount outstanding including interest from the
member's account or other benefits payable to or on behalf of the member
as provided in this section.