senate Bill S1812

2011-2012 Legislative Session

Discludes overtime compensation in pension computation earned after March 31, 2012

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to civil service and pensions
Jan 13, 2011 referred to civil service and pensions

S1812 - Bill Details

Current Committee:
Law Section:
General Municipal Law
Laws Affected:
Amd §90, Gen Muni L; amd §§2 & 302, R & SS L; amd §12-108, NYC Ad Cd
Versions Introduced in 2009-2010 Legislative Session:
S5247

S1812 - Bill Texts

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Does not include overtime compensation in pension computation earned after March 31, 2012.

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BILL NUMBER:S1812

TITLE OF BILL:
An act
to amend the general municipal law, the retirement and social security
law and the administrative code of the city of New York, in relation to
not including overtime compensation in pension computation earned after
March thirty-first, two thousand ten

SUMMARY OF PROVISIONS:
This bill provides that overtime payments made
after March 31, 2012 will not be included in the computation of
pension benefits.

SECTION 1 amends section 90 of the General Municipal Law to provide
that amounts received as overtime compensation received after April
1, 2010 shall not be regarded as salary or compensation for any of
the purposes of any pension or retirement system.

Section 2 amends subdivision 2 of section 2 of the Retirement and
Social Security Law to provide that salary or wages shall not include
amounts received as overtime compensation received after April 1, 2012.

Section 3 amends paragraph a of subdivision 2 of section 302 of the
Retirement and Social Security Law to provide that salary and wages
shall not include amounts received as overtime compensation on or
after April 1, 2012.

Section 4 amends section 12-108 of the Administrative Code of the City
of New York to provide that amounts received as overtime compensation
prior to April 1, 2012 pursuant to the provisions of the section
shall be regarded as salary or compensation for the purposes of any
pension or retirement system of which the employee receiving such
employee receiving such overtime compensation system is a member.

SECTION 5 provides that this act shall take effect immediately.

PURPOSE AND JUSTIFICATION:
Recently, it has become apparent that some employees have abused the
system of seeking overtime to significantly increase their salaries
in their final years of employment so as to
artificially inflate their eventual pension benefits. Retirement
systems, public employers and taxpayers cannot afford to fund
artificially inflated pensions created by abuse of the overtime
system. Examples abound of employees who boost their pay through
hundreds of hours of overtime as they prepare to retire, ending up
with pension benefits that are higher than their base pay while they
were employed. In addition to the costs to taxpayers, it is not
possible for an employee to be effective for the number of hours some
employees are claiming per week. The current system encourages
working excessive hours which are unhealthful for the employee and
result in ineffective service to the public.

EXISTING LAW:
Currently, overtime pay in included in the calculation
of pension benefits.


PRIOR LEGISLATIVE HISTORY:
2010: S.5247 - Local Government

FISCAL IMPLICATIONS:
Should reduce costs for state and local governments.

EFFECTIVE DATE:
This act shall take effect immediately.

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

                                  1812

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 13, 2011
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Civil  Service  and
  Pensions

AN  ACT  to  amend  the general municipal law, the retirement and social
  security law and the administrative code of the city of New  York,  in
  relation to not including overtime compensation in pension computation
  earned after March thirty-first, two thousand ten

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

  Section 1. Section 90 of the general  municipal  law,  as  amended  by
section  13  of part B of chapter 504 of the laws of 2009, is amended to
read as follows:
  S 90. Payment of overtime compensation to public officers  or  employ-
ees.  The  governing  board of each municipal corporation or other civil
division or political subdivision of the state, or in the  city  of  New
York, the mayor, by ordinance, local law, resolution, order or rule, may
provide  for  the  payment of overtime compensation to any or all public
officers except elective officers and those officers otherwise  excluded
by  law  and  to any or all public employees under their jurisdiction at
the regular basic pay rate of such officers or employees  for  all  time
such officers or employees are required to work in excess of their regu-
larly  established  hours  of  employment  or at such other rate as such
governing board, or in the city of New York, the mayor,  may  authorize.
[The  amounts received as overtime] OVERTIME compensation RECEIVED under
this section, PRIOR TO  APRIL  FIRST,  TWO  THOUSAND  TWELVE,  shall  be
regarded  as  salary  or  compensation  for  any  of the purposes of any
pension or retirement system of which the officer or employee  receiving
the  same is a member, except as set forth in sections five hundred one,
six hundred one, and twelve hundred three of the retirement  and  social
security law. Such overtime compensation shall not be regarded as salary
or compensation for the purpose of determining the right to any increase

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02591-01-1

S. 1812                             2

of  salary  or  any  salary increment on account of length of service or
otherwise. No such overtime compensation shall be construed  to  consti-
tute a promotion.
  S  2.  Paragraph a of subdivision 2 of section 2 of the retirement and
social security law is amended to read as follows:
  a. The salary or wages annually earnable by a member, including  main-
tenance,  or  any  allowance in lieu thereof, received by the member BUT
NOT INCLUDING AMOUNTS RECEIVED AS  OVERTIME  COMPENSATION  ON  OR  AFTER
APRIL FIRST, TWO THOUSAND TWELVE.
  S  3.    Paragraph a of subdivision 2 of section 302 of the retirement
and social security law, as added by chapter 1000 of the laws  of  1966,
is amended to read as follows:
  a.  The salary or wages annually earnable by a member, including main-
tenance, or any allowance in lieu thereof, received by  the  member  BUT
NOT  INCLUDING  AMOUNTS  RECEIVED  AS  OVERTIME COMPENSATION ON OR AFTER
APRIL FIRST, TWO THOUSAND TWELVE.
  S 4. Section 12-108 of the administrative code of the city of New York
is amended to read as follows:
  S 12-108 Overtime work by officers or employees and additional compen-
sation therefor. Notwithstanding the provisions of  any  other  statute,
general, special or local, the mayor may authorize the head of any agen-
cy  to  require  any  officer or employee in such agency or any class or
group of officers or employees in such agency to work in excess  of  the
maximum  number  of  hours  of employment prescribed for such officer or
employee or class or group of officers  or  employees  by  any  statute,
general,  special  or local, provided that each such officer or employee
shall be paid overtime compensation for such work at not less  than  his
or  her regular basic pay rate. [The amounts received as overtime] OVER-
TIME compensation RECEIVED pursuant to the provisions of  this  section,
PRIOR  TO  APRIL FIRST, TWO THOUSAND TWELVE, shall be regarded as salary
or compensation for the purposes of any pension or retirement system  of
which  the  employee  receiving  such overtime compensation is a member.
Such overtime compensation shall not be regarded as  salary  or  compen-
sation for the purpose of determining the right to any increase of sala-
ry or any salary increment on account of length of service or otherwise,
nor  shall  the  payment  of  such overtime compensation be construed to
constitute a promotion.
  S 5. This act shall take effect immediately.

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