N.Y. Comp. Codes R. & Regs. tit. 21 § 5004.5

Current through Register Vol. 46, No. 51, December 18, 2024

Section 5004.5 - Interest on loans

(a) For Tier I/II members, the rate of interest payable on loans shall be at the rate of five per centum per annum. Any increase or decrease in the interest rate shall apply, from the effective date thereof, to unpaid balances of loans outstanding on such date and to new loans made thereafter.

(b) The rate of interest payable on Tier III/IV/V loans shall be one percent less than regular interest pursuant to Education Law, section 501(9)(b); however, in no event shall the rate be less than set forth in Retirement and Social Security Law, section 517(c) or 613(c). Whenever there is a change in the interest rate it shall be applicable to loans made or renegotiated after the date of such change in the interest rate. Effective July 1, 1991, for Tier III/IV/V members, the rate of interest payable on loans shall be at the rate of seven per centum per annum.

(1) When a Tier III/IV/V member transfers to this system from another public retirement system with an outstanding loan from that system, the loan will be reestablished in this system, using the rate of interest in effect in this system on the date the loan was originally issued in the other public retirement system.

(2) When a Tier III/IV/V member of this system who has an outstanding loan, transfers a Tier III/IV/V membership from another public retirement system bringing an outstanding loan balance from the other system, the two loans will be combined and reestablished using the rate of interest applicable to the loan which was originally issued from this system.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 5004.5