AAC-47-13-00004-P Insurance Premiums on Loans Taken by Members of the NYSLERS and NYSLPFRS

11/20/13 N.Y. St. Reg. AAC-47-13-00004-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-47-13-00004-P

Insurance Premiums on Loans Taken by Members of the NYSLERS and NYSLPFRS

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 Part 308 of Title 2 NYCRR.

Statutory authority:

Retirement and Social Security Law, sections 11, 50, 311 and 350

Subject:

Insurance premiums on loans taken by members of the NYSLERS and NYSLPFRS.

Purpose:

To update the amount of the insurance premiums on loans taken by members of the NYSLERS and NYSLPFRS.

Text of proposed rule:

Title:

Loans to [Tier 1 and Tier 2] Members.

Regulation Text:

308.1 Applications for loans.

Applications for loans shall be executed by members on forms prepared by the retirement system. No application for a loan made by a member of Tier 1 or Tier 2 shall be accepted by the retirement system if the member has made application for and received a loan within the previous three months.

308.2 Computation of premiums.

(a) On or after April 1, [1992] 2010, and until further directed by the Comptroller as provided by sections 50(g)(2) and 350(g)(2) of the Retirement and Social Security Law, the premium which shall be charged to members of the New York State and Local Employees' Retirement System and the New York State and Local Police and Fire Retirement System for loan insurance shall be computed as hereinafter stated.

(1) Said premiums shall be charged for, and shall apply to, all loans outstanding at the beginning of each month, and shall further apply to, and be charged for, any new or additional loans made during any month.

(2) With reference to any outstanding loans, the premium charge for said month will be computed on the first day of said month.

(3) With reference to new and additional loans made on or before the 16th day of any month, a premium charge for that month shall be computed as of the date of issuance of the loan check.

(4) The premiums charged shall be based on the member's attained age at the time the charge is computed in accordance with the following schedule of rates:

Attained age group at the time of premium charge	premium rate per annum
	NYSLERS (Tiers 1 and 2)	NYSLPFRS (Tiers 1 and 2)	NYSLERS & NYSLPFRS Tiers (3[and 4]-6)	[NYSLPFRS]
15 years or older but less than 40 years	.012%	.012%	.096[0120]%	[.00012%]
40 years or older but less than 50 years	.024[12]%	.012%	.192[00240]%	[.00012%]
50 years or older but less than 70 years	.024%	.012%	.[00]396%	[.00024%]

(b) The New York State and Local Employees' Retirement System and the New York State and Local Police and Fire Retirement System shall maintain a continuous study of such loan insurance and keep the Comptroller advised of any significant changes which might require revision of the above premium scale.

(c) The Comptroller may make any changes in the above premium scale, at the beginning of any fiscal year, when such action is indicated by said continuous study.

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 updating the existing text of Section 308.1 of Title 2 of NYCRR to reflect the premium for loan insurance charged to members of the New York State and Local Employees’ Retirement System and the New York State and Local Police and Fire Retirement System. These technical amendments relate to premiums for loan insurance and it has been determined that no person is likely to object to the adoption of the rule as written.