(b) For Tier 3 through 6 members, the rate of interest payable on loans shall be one percent less than regular interest pursuant to Education Law, section 501(9)(b); however, in no event shall the rate be less than set forth in Retirement and Social Security Law, section 517(c) or 613(c). Whenever there is a change in the interest rate it shall be applicable to loans made or renegotiated after the date of such change in the interest rate. Effective July 1, 1991, for Tier 3 through 6 members, the rate of interest payable on loans shall be at the rate of seven percent per annum. Effective July 1, 2016, for Tier 3 through 6 members, the rate of interest payable on loans shall be at the rate of 6.50 percent per annum. Effective July 1, 2018, for Tier 3 through 6 members, the rate of interest payable on loans shall be at the rate of 6.25 percent per annum.

1. (1) When a Tier 3 through 6 member transfers to this system from another public retirement system with an outstanding loan from that system, the loan will be reestablished in this system, using the rate of interest in effect in this system on the date the loan was originally issued in the other public retirement system.
2. (2) When a Tier 3 through 6 member of this system who has an outstanding loan, transfers a Tier 3 through 6 membership from another public retirement system bringing an outstanding loan balance from the other system, the two loans will be combined and reestablished using the rate of interest applicable to the loan which was originally issued from this system.