(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withdrawn amount, with interest thereon at the rate of six per centum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.