NY Ret & SS L § 350 (2021)
2021 New York Laws RSS - Retirement and Social Security Article 8 - New York State and Local Police and Fire Retirement System Title 7 - Loans, Refunds and Withdrawals 350 - Loans.

§  350.  Loans.  a.  The following may borrow from the police and fire retirement system:   1. Any member in government service or on leave  of  absence  who  has credit for at least one year of member service, provided the comptroller shall  approve  such  loan. The total of any such loans shall not exceed seventy-five per centum of his accumulated contributions.   2. Any member absent on military  duty,  as  defined  in  section  two hundred  forty-three  of  the military law. The amount of any such loan, however, shall not exceed the total of  his  accumulated  contributions, less  one  dollar.  Such  nominal sum of one dollar shall be left in the annuity savings fund  to  his  credit  as  a  token  of  his  continuing membership. Any member who:  (a)  While  absent  on  such military duty and prior to October first, nineteen hundred forty-six, withdrew his accumulated contributions, and  (b) Re-entered into government  service  within  one  year  after  the termination  of  such  military  duty,  may  redeposit  and  repay  such withdrawn amount, with interest thereon at the rate of  six  per  centum per  annum  to October first, nineteen hundred forty-six, and thereafter at the general rate or rates fixed by the comptroller pursuant  to  this section. In such event such member shall be entitled to the same status, rights and privileges as if he had left the nominal sum of one dollar in the annuity savings fund as a token of his continuing membership.   b. Repayment of loans.   1.  An  amount  so  borrowed,  together  with  interest  on any unpaid balances thereof, shall be repaid in equal installments which  shall  be deducted  from  the member's compensation. Such additional contributions shall be in such amount as the comptroller shall  approve.  They  shall, however,  be  at  least equal to the member's normal contribution to the police and fire retirement system, or ten dollars per  month,  whichever is lower.   2.  In  the  case of repayment by a member on leave of absence without pay, however, any such loan shall be  repaid  in  such  installments  of principal and interest as the comptroller shall determine.   c.  The  comptroller,  at  any  time, while the borrowing member is in government service or on leave of absence therefrom, may accept payments on account of any  loan  in  addition  to  the  installments  fixed  for repayment thereof.   d.  The  rate  of  interest payable upon loans made under this section shall be fixed by the comptroller. He shall have  power,  from  time  to time  and  at  any  time, to decrease such rate to not less than regular interest or to increase the same to not  more  than  six  percentum  per annum.  Any  such  decrease  or increase shall apply, from the effective date thereof, to unpaid balances or loans outstanding on such  date  and to  new  loans made thereafter. The comptroller shall adjust any prepaid and unearned interest  on  balances  of  loans  outstanding  as  of  the effective date of a change in the interest rate.   e. The borrowing member's annuity savings account shall not be reduced by  the  loan  obtained  but  a  subsidiary  record  shall be maintained 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.   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 of any outstanding loan.   g.  Insurance  of loans. Each loan made pursuant to this section shall be insured against the death of the  member.  Such  insurance  shall  be provided  by  the  comptroller  through  the  police and fire retirement system upon the following basis:   1. Amount of insurance. Each loan made pursuant to this section  shall be  insurable in its entirety and shall be insured thirty days after the making thereof.   2. Premiums. In March of each year, premiums at the  rate  established by  the  directive of the comptroller, in effect during such year, shall be charged to  the  member's  annuity  savings  account.  In  pro-rating premiums,  the  major  part  of  a  month shall be considered as a whole month. If the member during this  period  withdraws  his  contributions, dies  or  retires,  the  premium  to  be  charged  at  the  time of such withdrawal, death or retirement shall be based on the number  of  months which had elapsed since the beginning of the fiscal year.   3.  Loans heretofore made. Each loan made pursuant to law prior to the effective date of this section shall be insured from that date upon  the terms  and  conditions  set  forth  in  this section, as hereby amended. Premiums after such date  shall  be  deducted  in  accordance  with  the provisions of this section.   4. Funds. The comptroller is authorized to establish such funds as may be necessary to carry out the provisions of this subdivision g.   5. Power of comptroller. The comptroller, in his discretion and at the end  of  any fiscal year, may increase or reduce the premium; modify the terms and conditions of coverage or discontinue the insurance of loans.   6. Continuity of insurance not obligatory. This subdivision shall  not impose  any  obligation  whatsoever  upon the police and fire retirement system or any employer to continue to insure loans of members  upon  the terms  and  conditions  herein  provided  or  upon  any  other terms and conditions.   h. Loans made to certain police officers and firefighters.  Each  loan made to police officers and firefighters while such persons were members of  the  New  York state and local employees' retirement system shall be repaid according to the provisions of subdivision b of this section.