Extends the applicability of a certain provision in the Patriot Plan relating to the suspension of public retirement system loan repayment obligations.
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.
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.
STATE OF NEW YORK ________________________________________________________________________ 1873 2011-2012 Regular Sessions IN SENATE January 13, 2011 ___________Introduced by Sen. ESPAILLAT -- read twice and ordered printed, and when printed to be committed to the Committee on Veterans, Homeland Securi- ty and Military Affairs AN ACT to amend chapter 106 of the laws of 2003, constituting the Patri- ot Plan, in relation to extending the applicability of a provision thereof for the suspension of public retirement system loan repayment obligations THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The opening paragraph of section 43 of chapter 106 of the laws of 2003, constituting the Patriot Plan, as amended by chapter 133 of the laws of 2008, is amended to read as follows: This act shall take effect immediately; provided, however, that section forty-two of this act shall be deemed repealed
[seven]NINE years after it shall have become a law; provided further that: S 2. This act shall take effect immediately, except that if this act shall become a law on or after July 1, 2010 this act shall take effect immediately and shall be deemed to have been in full force and effect on and after July 1, 2010.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06300-01-1