S T A T E O F N E W Y O R K
________________________________________________________________________
9226
I N A S S E M B L Y
February 7, 2012
___________
Introduced by M. of A. DenDEKKER -- 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 section 1 of part B of chapter 504 of the laws
of 2009, 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,
two thousand ten, overtime compensation paid in any year in excess of
the overtime ceiling, as defined by this subdivision, EXCEPT FOR ANY
OVERTIME COMPENSATION EARNED WHICH IS MANDATORY OVERTIME, AS DEFINED BY
SECTION TWO OF THIS CHAPTER shall not be included in the definition of
wages. "Overtime compensation" shall mean, for purposes of this section,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14233-01-2
A. 9226 2
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 thou-
sand dollars per annum on January first, two thousand ten, and shall be
increased by three percent each year thereafter. 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 twenty-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.
S 3. Subdivision l of section 601 of the retirement and social securi-
ty law, as amended by section 5 of part B of chapter 504 of the laws of
2009, 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, EXCEPT FOR ANY OVERTIME
COMPENSATION EARNED WHICH IS MANDATORY OVERTIME, AS DEFINED BY SECTION
TWO OF THIS CHAPTER, shall not 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 thou-
sand dollars per annum on January first, two thousand ten, and shall be
increased by three per cent each year thereafter.
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.