A07309 Summary:

BILL NOA07309A
 
SAME ASSAME AS S06526-A
 
SPONSORPheffer Amato
 
COSPNSR
 
MLTSPNSR
 
Amd 501 & 601, R & SS L
 
Sets the increase to the overtime ceiling as a fixed percentage.
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A07309 Actions:

BILL NOA07309A
 
05/17/2023referred to governmental employees
01/03/2024referred to governmental employees
03/12/2024amend and recommit to governmental employees
03/12/2024print number 7309a
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A07309 Committee Votes:

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A07309 Floor Votes:

There are no votes for this bill in this legislative session.
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A07309 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7309--A
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 17, 2023
                                       ___________
 
        Introduced  by  M.  of A. PHEFFER AMATO -- read once and referred to the
          Committee on Governmental Employees -- recommitted to the Committee on
          Governmental Employees in accordance with Assembly Rule 3, sec.  2  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee

        AN ACT to amend the retirement and social security law, in  relation  to
          setting the increase to the overtime ceiling as a fixed percentage
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph (c) of subdivision  24  of  section  501  of  the
     2  retirement  and  social  security  law, as amended by chapter 368 of the
     3  laws of 2017, is amended to read as follows:
     4    (c) [(i)] The "overtime ceiling" shall mean fifteen  thousand  dollars
     5  per  annum on January first, two thousand ten, and shall be increased by
     6  three percent each year thereafter, provided, however, that [for]:
     7    (i) For members who first become members of the  New  York  state  and
     8  local employees' retirement system on or after April first, two thousand
     9  twelve, "overtime ceiling" shall mean fifteen thousand dollars per annum
    10  on  April  first,  two thousand twelve, and shall be increased each year
    11  thereafter by a percentage to be determined annually by reference to the
    12  consumer price index (all urban consumers, CPI-U, U.S. city average, all
    13  items, 1982-84=100), published by the  United  States  bureau  of  labor
    14  statistics,  for  each  applicable  calendar year. Said percentage shall
    15  equal the annual inflation  as  determined  from  the  increase  in  the
    16  consumer price index in the one year period ending on the December thir-
    17  ty-first  preceding  the  overtime  ceiling  adjustment effective on the
    18  ensuing April first.
    19    (ii) Commencing January first, two thousand eighteen,  and  each  year
    20  thereafter,  the  overtime  ceiling  percentage shall be increased by an
    21  amount equal to the annual inflation as determined from the increase  in
    22  the  consumer price index in the one year period ending on the September
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03497-10-4

        A. 7309--A                          2
 
     1  thirtieth prior to the overtime  ceiling  adjustment  effective  on  the
     2  ensuing January first.
     3    (iii)  Commencing  January  first,  two thousand twenty-five, and each
     4  year thereafter, for members who first become members of  the  New  York
     5  state  and  local  employees' retirement system on or after April first,
     6  two thousand twelve, the overtime ceiling percentage increase  shall  be
     7  equal  to the greater of: (A) three percent, or (B) the annual inflation
     8  as determined from the increase in the consumer price index in  the  one
     9  year  period  ending  on  the  September thirtieth prior to the overtime
    10  ceiling adjustment effective on the ensuing January first.
    11    § 2. Paragraph (c) of subdivision l of section 601 of  the  retirement
    12  and  social security law, as amended by chapter 368 of the laws of 2017,
    13  is amended to read as follows:
    14    (c) The "overtime ceiling" shall mean  fifteen  thousand  dollars  per
    15  annum  on  January  first,  two  thousand ten, and shall be increased by
    16  three [per cent] percent each year thereafter, provided, however, that:
    17    (i) [for] For members who first become members of a public  retirement
    18  system of the state on or after April first, two thousand twelve, "over-
    19  time  ceiling"  shall  mean  fifteen thousand dollars per annum on April
    20  first, two thousand twelve, and shall be increased each year  thereafter
    21  by  a  percentage to be determined annually by reference to the consumer
    22  price index (all urban consumers, CPI-U, U.S. city average,  all  items,
    23  1982-84=100), published by the United States bureau of labor statistics,
    24  for each applicable calendar year. Said percentage shall equal the annu-
    25  al inflation as determined from the increase in the consumer price index
    26  in the one year period ending on the December thirty-first preceding the
    27  overtime ceiling adjustment effective on the ensuing April first.
    28    (ii)  Commencing  January  first, two thousand eighteen, and each year
    29  thereafter, the overtime ceiling percentage shall  be  increased  by  an
    30  amount  equal to the annual inflation as determined from the increase in
    31  the consumer price index in the one year period ending on the  September
    32  thirtieth  prior  to  the  overtime  ceiling adjustment effective on the
    33  ensuing January first.
    34    (iii) Commencing January first, two  thousand  twenty-five,  and  each
    35  year  thereafter,  for  members who first become members of the New York
    36  state and local employees' retirement system on or  after  April  first,
    37  two  thousand  twelve, the overtime ceiling percentage increase shall be
    38  equal to the greater of: (A) three percent, or (B) the annual  inflation
    39  as  determined  from the increase in the consumer price index in the one
    40  year period ending on the September  thirtieth  prior  to  the  overtime
    41  ceiling adjustment effective on the ensuing January first.
    42    § 3. Notwithstanding any provision of law to the contrary, none of the
    43  provisions of this act shall be subject to the appropriation requirement
    44  of section twenty-five of the retirement and social security law.
    45    § 4. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This  bill  would  change the overtime ceiling percentage increase for
        Tier 6 members in the New York State  and  Local  Employees'  Retirement
        System  (NYSLERS)  to  the  greater  of  three  percent  or  the  annual
        inflation, beginning January 1, 2025. Under current law, the ceiling was
        set at $15,000 at the inception of Tier 6 and is increased  annually  by
        the inflation rate.
          The provisions of Section 25 of the Retirement and Social Security Law
        shall not apply.
          Insofar as this bill affects the NYSLERS, the increased costs would be
        shared by the State of New York and the local participating employers in

        A. 7309--A                          3
 
        the  NYSLERS.  If  this  bill  were  enacted during the 2024 Legislative
        Session, the increase in the present value of benefits would be approxi-
        mately $263 million.
                    NYSLERS        Increase in present    Increase in required
                                     value benefits          contributions
                    Tiers 1 - 5           $0                  $49 million
                         Tier 6       $263 million           $214 million
                          Total       $263 million           $263 million
          In  the NYSLERS, this benefit improvement will be funded by increasing
        the billing rates charged  annually  to  cover  both  retrospective  and
        prospective  benefit  increases. The annual contribution required of all
        participating employers in  NYSLERS  is  0.1%  of  billable  salary,  or
        approximately $13 million to the State of New York and approximately $19
        million to the local participating employers. This permanent annual cost
        will  increase  as  Tier  6 salary grows and will vary by employer based
        upon the plan coverage and salary reported in Tier 6.
          These estimated costs are based on 265,533 affected  Tier  6  members,
        with annual salary of approximately $12 billion as of March 31, 2023.
          To  develop  the costs above, our models included a Monte Carlo method
        of 5,000 simulations, each consisting of thirty-year CPI-U  projections.
        In every one of the 5,000 simulations, in at least one year of the thir-
        ty-year  period, the proposed legislation caused a higher overtime ceil-
        ing based on the 3% inflation  floor,  compared  to  current  law.  This
        occurred in approximately 64% of the 150,000 trial years.
          Summary of relevant resources:
          Membership  data as of March 31, 2023 was used in measuring the impact
        of the proposed change, the same data used in the April 1, 2023 actuari-
        al valuation. Distributions and other statistics can  be  found  in  the
        2023  Report  of the Actuary and the 2023 Annual Comprehensive Financial
        Report.
          The actuarial assumptions and methods used are described in  the  2023
        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, 2023
        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 March 8, 2024, and intended for use  only  during
        the  2024  Legislative Session, is Fiscal Note No. 2024-104, prepared by
        the Actuary for the New York State and Local Retirement System.
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