NY A06750

Allows certain New York City correction officers in the Employees' Retirement System (NYCERS) Tier 2 and Tier 3 CO-20 and CC-20 Plans to borrow against their Additional Member Contributions (AMC) with interest.

Tier 2 correction members may borrow up to 100% of their AMC; Tier 3 members may borrow up to 75% of their AMC, in addition to existing loans available against Basic Member Contributions.

Loans bear interest at a rate 2% higher than regular interest credited to member accounts and must be repaid through payroll deductions in equal installments of at least 5% of earnable compensation.

Repeals existing restrictions in Retirement and Social Security Law that prohibited these correction officer members from taking loans on AMC.

Estimated to increase annual employer contributions by approximately $4.0 million and increase the unfunded accrued liability by approximately $6.5 million.