S T A T E   O F   N E W   Y O R K
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                                  4337

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 30, 2015
                               ___________

Introduced  by  M. of A. DenDEKKER, ROBINSON, BENEDETTO, MOSLEY, CRESPO,
  STECK, COOK, MARKEY, HOOPER, BROOK-KRASNY -- Multi-Sponsored by --  M.
  of A. ARROYO, GRAF, ROBERTS -- read once and referred to the Committee
  on Governmental Employees

AN  ACT  to amend the retirement and social security law, in relation to
  including mandatory overtime in a member's  final  average  salary  or
  wages

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 1203 of the retirement and social security law,  as
added  by  section  1  of  part A of chapter 504 of the laws of 2009, is
amended to read as follows:
  S 1203. Overtime. A member's final average salary shall be  calculated
in accordance with such provisions of article eight or article eleven of
this chapter as govern the member's benefits, except that earnings clas-
sified  as  overtime  compensation  in  an  amount  in excess of fifteen
percent of a member's annual wages not classified  as  overtime  compen-
sation  shall  be excluded from such calculation, PROVIDED, HOWEVER, ANY
OVERTIME EARNED WHICH IS MANDATORY OVERTIME, AS DEFINED BY  SECTION  TWO
OF  THIS  CHAPTER, SHALL NOT BE EXCLUDED.  "Overtime compensation" shall
mean, for purposes of this section, compensation paid under any  law  or
policy under which employees are paid at a rate greater than their stan-
dard  rate  for additional hours worked beyond those required, including
compensation paid under section one hundred  thirty-four  of  the  civil
service law and section ninety of the general municipal law.
  S  2. Subdivision 24 of section 501 of the retirement and social secu-
rity law, as amended by chapter 18 of the laws of 2012,  is  amended  to
read as follows:
  24.  "Wages"  shall  mean regular compensation earned by and paid to a
member by a public employer, except that for members who first join  the
state  and local employees' retirement system on or after January first,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08013-01-5
              

A. 4337                             2

two thousand ten, overtime compensation paid in any year  in  excess  of
the  overtime  ceiling,  as  defined  by  this subdivision, shall not be
included in the definition of wages, PROVIDED, HOWEVER, THAT  ANY  OVER-
TIME  COMPENSATION  EARNED  WHICH  IS  MANDATORY OVERTIME, AS DEFINED BY
SECTION TWO OF THIS CHAPTER, SHALL BE  INCLUDED  IN  THE  DEFINITION  OF
WAGES.    "Overtime  compensation"  shall  mean,  for  purposes  of this
section, compensation paid under any law or policy under which employees
are paid at a rate greater than their standard rate for additional hours
worked beyond those required, including compensation paid under  section
one  hundred  thirty-four of the civil service law and section ninety of
the general municipal law. The "overtime  ceiling"  shall  mean  fifteen
thousand dollars per annum on January first, two thousand ten, and shall
be  increased  by three percent each year thereafter, provided, however,
that for members who first become members of  the  New  York  state  and
local employees' retirement system on or after April first, two thousand
twelve, "overtime ceiling" shall mean fifteen thousand dollars per annum
on  April  first,  two thousand twelve, and shall be increased each year
thereafter by a percentage to be determined annually by reference to the
consumer price index (all urban consumers, CPI-U, U.S. city average, all
items, 1982-84=100), published by the  United  States  bureau  of  labor
statistics,  for  each  applicable  calendar year. Said percentage shall
equal the annual inflation  as  determined  from  the  increase  in  the
consumer price index in the one year period ending on the December thir-
ty-first prior to the cost-of-living adjustment effective on the ensuing
April  first.  For the purpose of calculation a member's primary federal
social security retirement or disability benefit, wages  shall,  in  any
calendar  year,  be  limited  to the portion of the member's wages which
would be subject to tax under section three thousand one  hundred  twen-
ty-one  of  the internal revenue code of nineteen hundred fifty-four, or
any predecessor or successor provision relating thereto, if such  member
was employed by a private employer. For members who first become members
of the New York state and local employees' retirement system on or after
the  effective  date  of  the chapter of the laws of two thousand twelve
which amended  this  subdivision,  the  following  items  shall  not  be
included  in  the definition of wages: (a) wages in excess of the annual
salary paid to the governor pursuant to section three of article four of
the state constitution, (b) lump sum payments for deferred compensation,
sick leave, accumulated vacation or other credits for time  not  worked,
(c) any form of termination pay, (d) any additional compensation paid in
anticipation of retirement, and (e) in the case of employees who receive
wages  from  three or more employers in a twelve month period, the wages
paid by the third and each successive employer.
  S 3. Subdivision 1 of section 601 of the retirement and social securi-
ty law, as amended by chapter 18 of the laws of 2012, is amended to read
as follows:
  l. "Wages" shall mean regular compensation earned by  and  paid  to  a
member  by a public employer, except that for members who first join the
New York state and local employees' retirement system or  the  New  York
state  teachers'  retirement system on or after January first, two thou-
sand ten, overtime compensation paid in any year in excess of the  over-
time  ceiling,  as defined by this subdivision, shall not be included in
the definition of wages, PROVIDED, HOWEVER, THAT  ANY  OVERTIME  COMPEN-
SATION  EARNED WHICH IS MANDATORY OVERTIME, AS DEFINED BY SECTION TWO OF
THIS CHAPTER, SHALL BE INCLUDED IN THE DEFINITION  OF  WAGES.  "Overtime
compensation"  shall  mean,  for  purposes of this section, compensation
paid under any law or policy under which employees are paid  at  a  rate

A. 4337                             3

greater  than  their  standard  rate  for additional hours worked beyond
those required, including compensation paid under  section  one  hundred
thirty-four  of  the civil service law and section ninety of the general
municipal  law.  The  "overtime  ceiling"  shall  mean  fifteen thousand
dollars per annum on January first,  two  thousand  ten,  and  shall  be
increased  by  three  per  cent each year thereafter, provided, however,
that for members who first become members of a public retirement  system
of  the  state  on  or after April first, two thousand twelve, "overtime
ceiling" shall mean fifteen thousand dollars per annum on  April  first,
two  thousand  twelve,  and shall be increased each year thereafter by a
percentage to be determined annually by reference to the consumer  price
index  (all  urban  consumers,  CPI-U,  U.S.  city  average,  all items,
1982-84=100), published by the United States bureau of labor statistics,
for each applicable calendar year. Said percentage shall equal the annu-
al inflation as determined from the increase in the consumer price index
in the one year period ending on the December thirty-first prior to  the
cost-of-living  adjustment  effective  on  the  ensuing April first. For
members who first join a public retirement system of  the  state  on  or
after April first, two thousand twelve, the following items shall not be
included  in  the  definition of wages: 1. wages in excess of the annual
salary paid to the governor pursuant to section three of article four of
the state constitution, 2. lump sum payments for deferred  compensation,
sick  leave,  accumulated vacation or other credits for time not worked,
3. any form of termination pay, 4. any additional compensation  paid  in
anticipation  of retirement, and 5. in the case of employees who receive
wages from three or more employers in a twelve month period,  the  wages
paid by the third and each successive employer.
  S 4. Section 2 of the retirement and social security law is amended by
adding a new subdivision 37 to read as follows:
  37.  "MANDATORY  OVERTIME."  INVOLUNTARY OVERTIME REQUIRED PURSUANT TO
ANY LAW, RULE OR REGULATION.
  S 5. This act shall take effect immediately.