Assembly Bill A2783

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

                                 2783--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 21, 2009
                               ___________

Introduced  by M. of A. ABBATE, PHEFFER, CYMBROWITZ, BOYLAND, SCHROEDER,
  EDDINGTON -- Multi-Sponsored by -- M. of A. AUBRY, CANESTRARI,  CLARK,
  COOK, GOTTFRIED, LIFTON, MAGEE, McENENY, ORTIZ, SWEENEY, WEISENBERG --
  read  once  and referred to the Committee on Governmental Employees --
  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
  the definitions of final average salary

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

  Section  1.  Subdivisions a and b of section 512 of the retirement and
social security law, subdivision a as amended and subdivision b as added
by chapter 379 of the laws of 1986, are amended to read as follows:
  a. A member's final average salary shall be the average  wages  earned
by  such  a  member during any three consecutive years which provide the
highest average wage; provided, however, if the wages earned during  any
year  included  in  the  period  used  to determine final average salary
exceeds that of the average of the previous two years by more than [ten]
TWENTY percent, the amount in excess of [ten] TWENTY  percent  shall  be
excluded from the computation of final average salary.  Where the period
used  to  determine final average salary is the period which immediately
precedes the date of retirement, any month or months (not in  excess  of
twelve)  which  would  otherwise  be included in computing final average
salary but during which the member was on authorized leave of absence at
partial pay or without pay shall be excluded  from  the  computation  of
final  average  salary  and the month or an equal number of months imme-
diately preceding such period shall be substituted in lieu thereof.
  b. Notwithstanding the provisions of subdivision a  of  this  section,
with  respect  to  members  of  the  New York state AND LOCAL employees'
retirement system and THE New York state [policemen's]  and  [firemen's]
LOCAL POLICE AND FIRE retirement system, a member's final average salary

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05605-02-9
              

A. 2783--A                          2

shall be equal to one-third of the highest total wages earned during any
continuous  period  of employment for which the member was credited with
three years of service credit; provided, however, if  the  wages  earned
during  any  year of credited service included the period used to deter-
mine final average salary exceeds the average of the wages of the previ-
ous two years of credited service by more than [ten] TWENTY percent, the
amount in excess of [ten] TWENTY percent  shall  be  excluded  from  the
computation of final average salary.
  S  2. Subdivisions a and b of section 608 of the retirement and social
security law, subdivision a as amended and subdivision  b  as  added  by
chapter 379 of the laws of 1986, are amended to read as follows:
  a.  A  member's final average salary shall be the average wages earned
by such a member during any three consecutive years  which  provide  the
highest  average wage; provided, however, if the wages earned during any
year included in the period  used  to  determine  final  average  salary
exceeds that of the average of the previous two years by more than [ten]
TWENTY  percent,  the  amount in excess of [ten] TWENTY percent shall be
excluded from the computation of final average salary. Where the  period
used  to  determine final average salary is the period which immediately
precedes the date of retirement, any month or months (not in  excess  of
twelve)  which  would  otherwise  be included in computing final average
salary but during which the member was on authorized leave of absence at
partial pay or without pay shall be excluded  from  the  computation  of
final  average  salary  and the month or an equal number of months imme-
diately preceding such period shall be substituted in lieu thereof.
  b. Notwithstanding the provisions of subdivision a  of  this  section,
with  respect  to  members  of  the  New York state AND LOCAL employees'
retirement system, a member's final average salary  shall  be  equal  to
one-third  of  the  highest total wages earned by such member during any
continuous period of employment for which the member was  credited  with
three  years  of  service credit; provided, however, if the wages earned
during any year of credited service  included  in  the  period  used  to
determine  final  average salary exceeds the average of the wages of the
previous two years  of  credited  service  by  more  than  [ten]  TWENTY
percent,  the amount in excess of [ten] TWENTY percent shall be excluded
from the computation of final average salary.
  S 3. This act shall take effect immediately and  shall  be  deemed  to
have  been  in full force and effect on or after June 30, 2009, provided
that the amendments to subdivisions a and b of sections 512 and  608  of
the  retirement  and social security law made by sections one and two of
this act shall be subject to the provisions of section 615 of  such  law
and shall expire or the benefits thereof shall cease, in accordance with
such section as from time to time amended.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill  would  amend  sections  512  and 608 of the Retirement and
Social Security Law to alter the definition of final average salary  for
Tier  3 and 4 members. In the computation of final average salary, wages
earned during any year would not be allowed to exceed that of the  aver-
age  of  the previous two years by more than twenty percent. This is the
limit on wages that exists in Tier 2. Currently the limit  for  Tiers  3
and 4 is ten percent.
  The  annual  cost  to  the  employers of members of the New York State
Teachers' Retirement System for this benefit is estimated to be $940,000
or 0.006% of payroll if this bill is enacted.

A. 2783--A                          3

  The source of this estimate is Fiscal Note 2009-30 dated March 9, 2009
prepared by the Actuary of  the  New  York  State  Teachers'  Retirement
System and is intended for use only during the 2009 Legislative Session.