ERS offers loan relief to members on active duty
In this periodic column, state Comptroller Thomas P. DiNapoli, the sole trustee of the New York State and Local Employees' Retirement System, provides information on the system, which delivers retirement benefits to many NYSUT School-Related Professionals and other support staff. If you are an ERS member with a question of general interest, e-mail nyteach@nysutmail.org. For immediate assistance, contact the ERS Call Center toll-free at 866-805-0990, or 518-474-7736 in the Albany area.
With the recent celebration of Veterans Day we are reminded of the debt of gratitude we owe to those who are serving, or have served, in one of the many branches of the U.S. military. Five years ago, New York state showed its appreciation by enacting the Patriot Plan (Chapter 106, Laws of 2003), which provides certain benefits and relief to active military personnel.
The Patriot Plan applies to men and women in active military service at any time during the period from July 1, 2003, through June 30, 2010, and allows retirement system members to defer loan repayments until their active duty has been completed. In addition, the interest rate on Tier 3 or 4 loans granted prior to active military service will be reduced to 6 percent for the time of active duty.
Q: I've just been called to active service. How can I defer my loan payments to the retirement system for the duration of my military leave?
A: If you believe you qualify and want to take advantage of the loan deferment program, send a letter, along with a copy of your orders, as soon as possible to the New York State & Local Retirement System, Member & Employer Services Bureau, 110 State St., Albany, NY 12244. Upon returning from active duty, you will need to send a copy of your release papers, or DD-214, to the same address.
Q: If I defer my loan payments, will I still need to complete payment of my loan within the original five-year repayment period?
A: No, the maximum five-year repayment period for your loan will be extended by the length of time you were on active duty. For example, if you defer payments for two years, you will have an additional two years to repay your loan in full.
Q: Will my loan go into default if I'm not making loan payments under the Patriot Plan?
A: No. If you choose to defer payment, your loan will not default during your active military service. However, interest will continue to accrue on your loan balance as required by Internal Revenue Service regulations.
Q: How can I get more information?
A: A good place to start is the "Members" section of our Web site, where you can view our Loan Deferment Program for Active Military Personnel at www.osc.state.ny.us/retire/members/patriot_plan.htm. You can also contact our Call Center toll-free at 866-805-0990, or 518-474-7736 in the Capital District area.