NY S06134

Allows New York City correction officers in Tier 2 and Tier 3 CO-20 and CC-20 pension plans to borrow against their accumulated additional member contributions (AMC) in addition to existing basic member contribution loans.

Tier 2 participants may borrow up to 100% of their AMC; Tier 3 participants may borrow up to 75% of their AMC, with interest charged at 2% above the regular rate.

Repeals existing restrictions in Retirement and Social Security Law sections 445-a, 445-c, 504-a, and 504-b that previously prohibited such loans for these correction members.

Any outstanding loan balance at retirement is converted to an annuity and deducted from the annual retirement allowance on an actuarial basis.

Estimated annual cost to New York City is $9.4 million, reflecting $32.2 million increase in unfunded liability and $1.1 million annual asset loss from reduced investment earnings, with payments beginning in Fiscal Year 2019.