2023 New York Laws › RSS - Retirement and Social Security › Article 2 - New York State Employees' Retirement System › Title 6 - Loans, Refunds and Withdrawals › 50 - Loans.

§ 50. Loans.  a. The following may borrow from the 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withdrawn  amount,  with  interest thereon at the rate of six per centum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
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  per  centum  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 anuuity 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 oustanding 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  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 as hereby amended, 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 g shall
not impose any obligation whatsoever upon the 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.