Bill > S08122

This bill allows certain members of the New York City Employees' Retirement System (NYCERS) who work in the Sanitation and Correction departments to borrow from their accumulated member contributions. Specifically, members of the 20-Year Plan can borrow up to 75% of their Additional Member Contributions (AMC), and members of the 22-Year Plan can borrow up to 75% of their Basic Member Contributions (BMC). Borrowers can only take out a loan once every 12 months, and the loan amount must be at least $1,000. The loan will have an interest rate that is 2% higher than the regular interest rate credited to the member's account. Members must have been continuously employed for at least three years and must repay the loan through payroll deductions, with installments of at least 5% of their earnable compensation. The bill also includes provisions for how unpaid loan balances will be handled at retirement, with the remaining balance converted to an annuity. The fiscal note suggests this change could have a modest impact on employer contributions, with an estimated initial increase in actuarial present values of $64.2 million for NYCERS.

Labor and Employment

https://www.nysenate.gov/legislation/bills/2025/S8122