Extends the applicability of a certain provision in the Patriot Plan relating to the suspension of public retirement system loan repayment obligations

1 Co-sponsor

• Bill Perkins

BILL NUMBER:S1873

Title of bill

An act to amend chapter 106 of the laws of 2003, constituting the Patriot Plan, in relation to extending the applicability of a provision thereof for the suspension of public retirement system loan repayment obligations

Purpose or general idea of bill

This legislation would extend from July 1, 2010, the ability of members of the military service to suspend their repayment if loan to a retirement system while engaged in active service to the military.

Summary of specific provisions

This bill would amend Section 43 of Chapter 106 of the laws of 2003, constituting the Patriot Plan to extend the seven year sunset provision to nine years, effectively changing the date that this provision would expire from July 1, 2010 to July 1, 2012.

As a result this bill would permit military service personnel engaged in active service to stop replaying any loan from a retirement system until they return from active duty for two additional years. The period of repayment is increased correspondingly with the amount of time missed due to military service.

Justification

The law that allows military personnel to stop repaying loans from a retirement system while on active duty is set to expire on July 15 of this year. This bill would prevent that expiration from occurring until July 1, 2012.

This law provides a benefit to military personnel allowing them to halt payments for a loan to a retirement plan when engaged in active military service. Such allows military personnel more financial freedom when preparing to be deployed.

This bill would continue to provide such assistance to families of military personnel as well as provide additional peace of mind to soldiers, sailors, airmen while they are away. By providing the proper support to our troops we are allowing them to do their difficult work without the distraction of problems as home.

Prior legislative history

This is a new bill.

Fiscal implications for state and local governments

According to the New York State and Local Employees' Retirement System, if this bill was enacted there will be a minimal cost. The New York State Teachers' Retirement System estimates the cost to be negligible.

Effective date

Immediately, except that if this act shall become a law after July 1, 2010, it shall be deemed to have been in full effect since July 1, 2010.