STATE OF NEW YORK
________________________________________________________________________
8288
2019-2020 Regular Sessions
IN ASSEMBLY
June 13, 2019
___________
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Governmental Employees
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
Police and Fire Retirement System (NYSLPFRS). The current limit is 15
percent.
If this bill is enacted during the 2019 legislative session, the
increase in the present value of benefits would be approximately $122
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11906-02-9
A. 8288 2
million, and would be shared by the State of New York and all partic-
ipating employers in the NYSLPFRS. The estimated first year cost would
be approximately $2.95 million to the State of New York and approximate-
ly $11.6 million to the participating employers in the NYSLPFRS.
Summary of relevant resources:
The membership data used in measuring the impact of the proposed
change was the same as that used in the March 31, 2018 actuarial valu-
ation. Distributions and other statistics can be found in the 2018
Report of the Actuary and the 2018 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2015,
2016, 2017 and 2018 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, 2018
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 June 7, 2019, and intended for use only during
the 2019 Legislative Session, is Fiscal Note No. 2019-129, prepared by
the Actuary for the New York State and Local Retirement System.
