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

                                  4782

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 7, 2011
                               ___________

Introduced  by  M.  of A. McENENY, CANESTRARI, WEISENBERG -- Multi-Spon-
  sored by -- M. of A.    CAHILL,  CLARK,  COLTON,  CYMBROWITZ,  JACOBS,
  MAGEE,  ORTIZ,  PHEFFER,  J. RIVERA  --  read once and referred to the
  Committee on Governmental Employees

AN ACT to amend the retirement and social security law, in  relation  to
  the computation 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 443 of the  retirement  and
social security law, subdivision a as amended by chapter 379 of the laws
of 1986 and subdivision b as amended by chapter 286 of the laws of 2010,
are amended to read as follows:
  a.  The  salary base used for the computation of benefits upon retire-
ment, hereinafter called in this article final average salary,  applica-
ble  to  all  members  of  the retirement systems who are subject to the
provisions of this article, shall be the average salary earned by such a
member during any three consecutive  years  which  provide  the  highest
average  salary,  exclusive  of any form of termination pay (which shall
include any compensation in anticipation of retirement), or any lump sum
payment for deferred compensation, sick leave, or ANY accumulated  vaca-
tion  credit IN EXCESS OF THIRTY DAYS, or any other payment for time not
worked (other than compensation received while on sick leave or  author-
ized leave of absence); provided, however, if the salary or 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  twenty  [percentum]  PER  CENTUM,  the  amount in excess of twenty
[percentum] PER CENTUM 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01572-02-1
              

A. 4782                             2

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 immediately preceding such period shall be
substituted in lieu thereof.
  b.  Notwithstanding  the  provisions of subdivision a of this section,
with respect to the members of the New York state AND  LOCAL  employees'
retirement  system[,]  AND  the New York state and local police and fire
retirement system and the New York city teachers' retirement system, the
final average salary, shall be equal to one-third of the  highest  total
salary  earned  during any continuous period of employment for which the
member was credited with three years of service credit, exclusive of any
form of termination pay (which shall include any compensation in  antic-
ipation  of retirement), any lump sum payment for deferred compensation,
sick leave, or ANY accumulated vacation credit IN EXCESS OF THIRTY DAYS,
or any other payment  for  time  not  worked  (other  than  compensation
received  while on sick leave or authorized leave of absence); provided,
however, if the salary  earned  during  any  year  of  credited  service
included  in  the  period used to determine final average salary exceeds
the average of the salaries  of  the  previous  two  years  of  credited
service  by  more than twenty per centum, the amount in excess of twenty
per centum shall be excluded from the computation of final average sala-
ry.
  S 2. Subdivision 1 of section 431 of the retirement and social securi-
ty law, as added by chapter 503 of the laws of 1971, is amended to  read
as follows:
  1.  lump sum payments for deferred compensation, sick leave, ANY accu-
mulated vacation IN EXCESS OF THIRTY DAYS or other credits for time  not
worked,
  S 3. This act shall take effect immediately.
  FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
  This  bill will allow Tier 1 members with membership dates on or after
April 1, 1972, all Tier 2 members  of  the  New  York  State  and  Local
Employees'  Retirement  System (NYSLERS) or the New York State and Local
Police and Fire Retirement System (NYSLPFRS) and Tier 5 members  of  the
NYSLPFRS  to receive credit for up to thirty (30) days of unused accumu-
lated vacation time in the calculation of their final average salary.
  Insofar as this bill will affect employers in  the  NYSLERS,  if  this
bill  is  enacted,  there  will  be  an estimated increase in the annual
contributions of the State of New York of approximately $10 million  and
$14  million  to  the participating employers in the NYSLERS. Insofar as
this bill would affect the NYSLPFRS, there will  also  be  an  estimated
increase  in  the  annual contributions of approximately $9.5 million to
the State of New York and $36 million to the participating employers  in
the NYSLPFRS.
  This  estimate,  dated  December  28,  2010, and intended for use only
during the  2011  Legislative  Session,  is  Fiscal  Note  No.  2011-75,
prepared  by  the  Actuary  for  the New York State and Local Employees'
Retirement System and the New York  State  and  Local  Police  and  Fire
Retirement System.