N.Y. Comp. Codes R. & Regs. tit. 2 § 351.6

Current through Register Vol. 46, No. 50, December 11, 2024

Section 351.6 - Repayment

(a) Amounts borrowed, together with interest on any unpaid balance, shall be repaid in equal installments which shall be in such amount as the retirement system shall approve; however, they shall be at least two percent of the member's salary and sufficient to repay the amount borrowed, together with interest on the unpaid balances thereof, within a period not in excess of five years.

(b) In the case of a member employed in public service of the State or a participating employer in the retirement system, repayment in such installments shall be made through regular payroll deductions.

(c) In the case of a member who has separated from the service of the State or participating employer in the retirement system, payment shall be made directly to the retirement system in installments of not less than $50; provided further that only one payment may be made during any calendar month.

(d) The member shall pay a service charge on each loan, to be deducted at the time the loan is made. The service charge on loans shall be at a rate to be determined, from time to time, by the Comptroller. Any change in the applicable service charge shall become effective on April 1st and applicable to all loans made during the fiscal year (April 1st - March 31st).

(e) Loan repayments will be suspended during a member's period of military service in accordance with the provisions of section 414(u) of the Internal Revenue Code of 1986, as amended.

N.Y. Comp. Codes R. & Regs. Tit. 2 § 351.6