43:13-22.68 - Repayment
43:13-22.68. Repayment
Notwithstanding any other law affecting the salary or compensation of a borrowing member to the contrary, the additional deductions required to repay the loan shall be made. Any unpaid loan balance at the time any benefit may become payable before the attainment of age 70 shall be deducted from the benefit otherwise payable. If any member retires without repaying the full amount borrowed, the commission shall retain the retirement benefit payments of the member, excluding authorized deductions, as repayment of the loan until the aggregate amount of retirement benefit payments is equal to the outstanding balance of the loan together with interest, at which time retirement benefit payments shall be paid to the member. If a retired member dies before the outstanding balance of the loan and interest has been repaid, the remaining balance shall be repaid from the proceeds of any other benefits payable on the account of the member, such as monthly payments to the member's beneficiaries or lump sum payments for pension or group life insurance.
L. 1987, c. 171, s. 2.