Loan Deferment Program for Active Military Personnel
The Patriot Plan, which grants certain benefits and relief to persons activated into military service, was revised effective July 1, 2008. It extends the active military duty expiration date by two years. This revision directly affects members on active military duty anytime during the period July 1, 2003 through June 30, 2010 and who have an outstanding Retirement System loan.
Loan Deferment Program Details:
- You will have the opportunity to defer your loan payments until your active duty has been completed.
- If you choose to defer payment, your loan will not default during your active military service. However, please be aware that IRS regulations require the continuous accrual of interest on the loan balance while you are in active duty.
- The maximum five-year repayment period will be extended by the length of time you were in active duty.
- If you are a Tier 3 or 4 member and your loan was granted prior to your active military service, the interest rate on your loan will be reduced to 6 percent for the time you are in active duty.
- Upon returning from active duty, please send a copy of your release papers or DD-214 to the address below.
If you believe you qualify and want to take advantage of the Loan Deferment Program, please send a letter, along with a copy of your orders, as soon as possible to:
New York State & Local Retirement System
Member & Employer Services Bureau
110 State Street
Albany, NY 12244
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