Bill Text: NY S06370 | 2021-2022 | General Assembly | Amended


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

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2022-01-12 - PRINT NUMBER 6370A [S06370 Detail]

Download: New_York-2021-S06370-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         6370--A

                               2021-2022 Regular Sessions

                    IN SENATE

                                     April 26, 2021
                                       ___________

        Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
          printed to be committed to the Committee on Civil Service and Pensions
          --  recommitted  to  the  Committee  on  Civil Service and Pensions in
          accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee

        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 6 members in the New York State and Local

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10748-05-2

        S. 6370--A                          2

        Police and Fire Retirement System (NYSLPFRS). The current  limit  is  15
        percent.
          If  this  bill  is  enacted  during  the 2022 legislative session, the
        increase in the present value of benefits would  be  approximately  $340
        million and would be shared by the State of New York and all participat-
        ing  employers  in  the NYSLPFRS. The estimated first year cost would be
        approximately $6.99 million to the State of New York  and  approximately
        $27.0 million to the participating employers in the NYSLPFRS.
          Summary of relevant resources:
          Membership  data as of March 31, 2021 was used in measuring the impact
        of the proposed change, the same data used in the April 1, 2021 actuari-
        al valuation. Distributions and other statistics can  be  found  in  the
        2021  Report  of the Actuary and the 2021 Comprehensive Annual Financial
        Report.
          The actuarial assumptions and methods used are described in  the  2020
        and  2021 Annual Report to the Comptroller on Actuarial Assumptions, 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, 2021
        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 January 11,  2022,  and  intended  for  use  only
        during  the  2022  Legislative  Session,  is  Fiscal  Note  No. 2022-42,
        prepared by the Actuary for the New  York  State  and  Local  Retirement
        System.
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