Bill Text: NY S06343 | 2023-2024 | General Assembly | Introduced

New York Senate Bill 6343

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Increases the limitation of overtime compensation in final average salary calculations from fifteen percent to thirty percent.

Spectrum: Slight Partisan Bill (Democrat 5-2)

Status: (Introduced) 2024-03-12 - REPORTED AND COMMITTED TO FINANCE [S06343 Detail]

Download: New_York-2023-S06343-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________

                                          6343

                               2023-2024 Regular Sessions

                    IN SENATE

                                     April 17, 2023
                                       ___________

        Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
          printed to be committed to the Committee on Civil Service and Pensions

        AN  ACT  to amend the retirement and social security law, in relation to
          the limitation of overtime compensation in final average salary calcu-
          lations

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. Section 1203 of the retirement and social security law, as
     2  added by section 1 of part A of chapter 504 of  the  laws  of  2009,  is
     3  amended to read as follows:
     4    §  1203. Overtime. A member's final average salary shall be calculated
     5  in accordance with such provisions of article eight or article eleven of
     6  this chapter as govern the member's benefits including overtime,  except
     7  that earnings classified as overtime compensation in an amount in excess
     8  of [fifteen] thirty percent of a member's annual wages not classified as
     9  overtime compensation shall be excluded from such calculation. "Overtime
    10  compensation"  shall  mean,  for  purposes of this section, compensation
    11  paid under any law or policy under which employees are paid  at  a  rate
    12  greater  than  their  standard  rate  for additional hours worked beyond
    13  those required, including compensation paid under  section  one  hundred
    14  thirty-four  of  the civil service law and section ninety of the general
    15  municipal law.
    16    § 2. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This bill would increase the allowable overtime compensation  included
        in  the  final  average  salary  calculation to 30 percent of a member's
        annual wages for Tier 5 and Tier 6 members in the  New  York  State  and
        Local  Police  and  Fire  Retirement  System.  The  current  limit is 15
        percent.
          Insofar as this bill affects the New York State and Local  Police  and
        Fire  Retirement  System  (NYSLPFRS), increased costs would be shared by

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08426-02-3

        S. 6343                             2

        the State of New York and all participating employers in  the  NYSLPFRS.
        If  this bill is enacted during the 2023 legislative session, there will
        be an increase in the present value of future benefits of  approximately
        $414 million.

        NYSLPFRS            Increase in present      Increase in future
                            value benefits           contributions

        Tiers 1 - 5         $30 million              $68 million
        Tier 6              $384 million             $346 million
        Total               $414 million             $414 million

          In the NYSLPFRS, this benefit improvement will be funded by increasing
        the  billing rates charged annually. The annual contribution required of
        all participating employers in the NYSLPFRS  is  approximately  0.9%  of
        billable  salary, or approximately $7.7 million to the State of New York
        and $30 million to the local participating employers in the fiscal  year
        ending  March  31,  2025. This permanent annual cost will vary in subse-
        quent billing cycles with changes in the billing rate and salary of  the
        affected members.
          Summary of relevant resources:
          Membership  data as of March 31, 2022 was used in measuring the impact
        of the proposed change, the same data used in the April 1, 2022 actuari-
        al valuation. Distributions and other statistics can  be  found  in  the
        2022  Report  of the Actuary and the 2022 Annual Comprehensive Financial
        Report.
          The actuarial assumptions and methods used are described in the  2020,
        2021,  and  2022  Annual  Report to the Comptroller on Actuarial Assump-
        tions, and the Codes, Rules and Regulations of the State  of  New  York:
        Audit and Control.
          The Market Assets and GASB Disclosures are found in the March 31, 2022
        New  York  State  and  Local  Retirement System Financial Statements and
        Supplementary Information.
          I am a member of the American Academy of Actuaries and meet the Quali-
        fication Standards to render the actuarial opinion contained herein.
          This fiscal note does not constitute a legal opinion on the  viability
        of  the  proposed change nor is it intended to serve as a substitute for
        the professional judgment of an attorney.
          This estimate, dated April 3, 2023, and intended for use  only  during
        the  2023  Legislative Session, is Fiscal Note No. 2023-100, prepared by
        the Actuary for the New York State and Local Retirement System.