AAC-47-13-00003-P Interest Rates for NYSLERS and NYSPFRS

11/20/13 N.Y. St. Reg. AAC-47-13-00003-P

NEW YORK STATE REGISTER

VOLUME XXXV, ISSUE 47

November 20, 2013

RULE MAKING ACTIVITIES

DEPARTMENT OF AUDIT AND CONTROL

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. AAC-47-13-00003-P

Interest Rates for NYSLERS and NYSPFRS

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

This is a consensus rule making to amend sections 300.1, 300.2 and 300.4 of Title 2 NYCRR.

Statutory authority:

Retirement and Social Security Law, sections 11 and 311

Subject:

Interest rates for NYSLERS and NYSPFRS.

Purpose:

To update regulations relating to certain rates of interest.

Text of proposed rule:

Section 300.1. Regular interest; and rate of estimated future investment earnings.

(a) As used in the Retirement and Social Security Law, the term regular interest shall mean four per centum per annum or the rate of interest recommended by the Retirement System actuary and promulgated by the Comptroller which is in effect on the date of retirement, as provided in paragraph (4) of subdivision (b) of section 11 of the Retirement and Social Security Law, if higher than four per centum. Effective April 1, 1989, the Comptroller has promulgated the regular interest rate as 7 per centum per annum.

(b) Effective April 1, [1996] 2010 the rate of estimated earnings for the New York State and Local Employees' Retirement System and the New York State and Local Police and Fire Retirement System shall be 7.5 [8 1/2] per centum per annum.

(c) The rates herein fixed shall remain in effect until revised by further order duly promulgated.

Section 300.2. Rate of special interest [for 1991 - 1992 fiscal year].

The rate of special interest [for the fiscal year commencing April 1, 1991 and ending March 31, 1992,] to be credited to the individual annuity savings accounts of persons who are members of the New York State and Local Employees' Retirement System or New York State and Local Police and Fire Retirement System as of the close of [said] each fiscal year, is as follows:

(a) for members earning regular interest of three per centum, pursuant to section 2(26)(b) of the Retirement and Social Security Law, two per centum;

(b) for members earning regular interest of four per centum, pursuant to section 2(26)(b) of the Retirement and Social Security Law, one per centum.

Section 300.4. Interest rate on loans to Tier 1 & 2 members.

(a) The rate of interest to be charged on all loans granted on and after April 1, 1970 pursuant to sections 50 and 350 of the Retirement and Social Security Law shall be five per centum per annum.

(b) This rate of interest shall also apply, from April 1, 1970, to unpaid balances of loans outstanding on such date.

(c) The rate of interest fixed herein shall remain in effect until revised by further order.

Text of proposed rule and any required statements and analyses may be obtained from:

Jamie Elacqua, Office of the State Comptroller, 110 State Street, Albany, NY 12236, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

45 days after publication of this notice.

Consensus Rule Making Determination

This is a consensus rulemaking proposed for the purpose of conforming the existing text of Section 300.1 of Title 2 of NYCRR to the most recently established rate of estimated future investment earnings; for the purpose of making permanent the rate of special interest to be credited to individual annuity savings accounts of members of the New York State and Local Employees’ Retirement System and the New York State and Local Police and Fire Retirement System as established by Section 300.2 of Title 2 of NYCRR; and for the purpose of making technical amendments to the interest rate on loans for Tier 1 and Tier 2 members of the New York State and Local Employees’ Retirement System and the New York State and Local Police and Fire Retirement System as established by Section 300.4 of Title 2 of NYCRR. These technical amendments relate to rates of interest, the rate of special interest and the interest rate on loans and it has been determined that no person is likely to object to the adoption of the rule as written.