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A08093 Actions:

BILL NOA08093
 
05/25/2017referred to governmental employees
06/06/2017reported referred to ways and means
06/12/2017reported referred to rules
06/14/2017reported
06/14/2017rules report cal.312
06/14/2017ordered to third reading rules cal.312
06/15/2017passed assembly
06/15/2017delivered to senate
06/15/2017REFERRED TO RULES
06/15/2017SUBSTITUTED FOR S6391
06/15/20173RD READING CAL.1735
06/15/2017PASSED SENATE
06/15/2017RETURNED TO ASSEMBLY
08/31/2017delivered to governor
09/12/2017signed chap.303
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A08093 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8093
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                      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:
 
     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
    22  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
 
     1  amounts borrowed then outstanding, to exceed (i) fifty  percent  of  the
     2  member's  total  contributions  made  pursuant  to  section five hundred
     3  seventeen of this article (including interest credited at the  rate  set
     4  forth in subdivision c of such section five hundred seventeen compounded
     5  annually); or (ii) fifty thousand dollars, whichever is less.
     6    § 2. Subdivision b of section 613-b of the retirement and social secu-
     7  rity  law,  as  added  by chapter 920 of the laws of 1990, is amended to
     8  read as follows:
     9    b. 1. A member of the New York state and local  employees'  retirement
    10  system,  the  New York city employees' retirement system or the New York
    11  city board of education retirement system  in  active  service  who  has
    12  credit  for at least one year of member service may borrow, no more than
    13  once during each twelve month period, an amount not  exceeding  seventy-
    14  five  percent  of  the  total contributions made pursuant to section six
    15  hundred thirteen (including interest credited at the rate set  forth  in
    16  subdivision  c of such section six hundred thirteen compounded annually)
    17  and not less than one thousand dollars.
    18    2. A member of the New York  state  and  local  employees'  retirement
    19  system  who first joins such system on or after January first, two thou-
    20  sand eighteen in active service who has credit for at least one year  of
    21  member  service  may  borrow, no more than once during each twelve month
    22  period, an amount, not less than one thousand dollars  and  which  would
    23  not  cause  the  balance  owed  pursuant  to this section, including any
    24  amounts borrowed then outstanding, to exceed (i) fifty  percent  of  the
    25  member's  total  contributions  made  pursuant  to  section five hundred
    26  seventeen of this chapter (including interest credited at the  rate  set
    27  forth in subdivision c of such section five hundred seventeen compounded
    28  annually); or (ii) fifty thousand dollars, whichever is less.
    29    §  3. Subdivision a of section 1207 of the retirement and social secu-
    30  rity law, as added by chapter 171 of the laws of  2011,  is  amended  to
    31  read as follows:
    32    a. 1. Notwithstanding any general, special or local law to the contra-
    33  ry,  a  member in active service who has credit for at least one year of
    34  member service may borrow, no more than once within  each  twelve  month
    35  period,  an  amount  not  exceeding  seventy-five  percent  of the total
    36  contributions made pursuant to section twelve hundred four of this arti-
    37  cle or any other article of this chapter and not less than one  thousand
    38  dollars.
    39    2. A member who first joins such system on or after January first, two
    40  thousand eighteen in active service who has credit for at least one year
    41  of member service may borrow, no more than once during each twelve month
    42  period,  an  amount,  not less than one thousand dollars and which would
    43  not cause the balance owed  pursuant  to  this  section,  including  any
    44  amounts  borrowed  then  outstanding, to exceed (i) fifty percent of the
    45  member's total contributions  made  pursuant  to  section  five  hundred
    46  seventeen  of  this chapter (including interest credited at the rate set
    47  forth in subdivision c of such section five hundred seventeen compounded
    48  annually); or (ii) fifty thousand dollars, whichever is less.
    49    § 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.
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