§ 203-111. Loans to Members.  


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  • On and after July 1, 1967 and until September 28, 2010, loans may be made to any member who has had at least three years of service as a member. Effective September 29, 2010, no new retirement loan applications will be accepted or approved by the Cincinnati Retirement System.

    The aggregate amount of loans outstanding to any member shall never exceed the lesser of the following amounts:

    (a)

    50 percent of the amount of the member's accumulated contributions.

    (b)

    An amount which, together with interest thereon, can be repaid prior to the member's 65th birthday by deduction from the member's compensation at the rate of 20 percent of the compensation.

    (c)

    $50,000, reduced by the highest outstanding balance of loans made to the member under this retirement system during the one year period preceding the date of the loan.

    The interest rate on loans shall be a per annum rate to be set by the board from time to time, which rate shall cover the loan insurance established under Section 203-113. The principal amount, together with the interest, shall be repaid to the retirement system in equal installments payable at least quarterly over a repayment period that does not exceed:

    (1)

    For a loan which is used to acquire a dwelling unit which, within a reasonable period of time, is to be used as the principal residence of the member, the repayment period may not exceed 15 years; and

    (2)

    For all other loans, five years.

    Loan repayments shall be made by deduction from the compensation of the member at the same time and in the same manner the member's contributions to the retirement system are deducted. Such installments shall be at least equal to 5 percent of the member's compensation, and not in excess of 20 percent.

    Notwithstanding any other law affecting the salary or compensation of any person or persons to whom this chapter applies or shall apply, the additional deductions required to repay the loan shall be made.

    If said member has a retirement loan outstanding at the time of leaving service, the loan shall be paid in full prior to reaching age 65, or within one year of leaving city service, whichever comes first. If loan repayment is not made as stipulated herein, the following options exist:

    (i)

    the member can have the balance of contributions refunded directly as specified in Section 203-57;

    (ii)

    the member can have the balance of contributions rolled over into another qualifying plan, including the Public Employees Retirement System as specified in Section 203-59;

    (iii)

    a member hired before January 1, 2010 having at least 25 years of service and being at least age 55, can take a reduced retirement as specified in Section 203-35(a); a member hired on or after January 1, 2010 having at least 25 years of service and being at least age 60 can take a reduced retirement as specified in Section 203-35(b).

    Application for retirement shall be made before the member leaves the service or within one year thereafter, except application may be made after said one year with the approval of the board of trustees.

    No member or former member who has an outstanding loan shall be permitted to transfer service credit to a State Retirement System under Section 203-8 unless and until such loan is repaid in full, with interest.

    The board of trustees of the retirement system shall promulgate rules and regulations consistent with the provisions of this chapter governing the making of loans to members; and if the principal amount of a loan will exceed $7,500.00 and the member is married at the time of the loan, the loan will not be made unless the spouse of the member provides a written consent to the loan, on a form or forms provided by the board of trustees for such purpose.

(C.O. 203-63; a. Ord. No. 86-1958, eff. Apr. 18, 1958; a. Ord. No. 14-1961, eff. Feb. 10, 1961; a. Ord. No. 205-1967, eff. June 16, 1967; renumbered to C.M.C. 203-111, eff. Jan. 1, 1972; a. Ord. No. 52-1976, eff. Feb. 11, 1976; a. Ord. No. 300-1979, eff. Aug. 4, 1979; a. Ord. No. 545-1983, eff. Dec. 23, 1983; a. Ord. No. 341-1995, eff. Nov. 17, 1995; a. Ord. No. 264-2000, eff. June 28, 2000; a. Ord. No. 352-2001, eff. Oct. 31, 2001; a. Emer. Ord. No. 346-2010, eff. Sept. 29, 2010; a. Ord. No. 084-2011, § 14, eff. April 16, 2011)