S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7370--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 6, 2021
                                ___________
 
 Introduced by M. of A. ABBATE -- read once and referred to the Committee
   on  Governmental  Employees -- recommitted to the Committee on Govern-
   mental Employees in accordance with Assembly Rule 3, sec. 2 -- commit-
   tee discharged, bill amended, ordered reprinted as amended and  recom-
   mitted to said committee

 AN  ACT  to amend the retirement and social security law, in relation to
   the limitation of overtime compensation in final average salary calcu-
   lations
 
   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:
   §  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 INCLUDING OVERTIME,  except
 that earnings classified as overtime compensation in an amount in excess
 of [fifteen] THIRTY percent of a member's annual wages not classified as
 overtime compensation shall be excluded from such calculation. "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.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would increase the allowable overtime compensation  included
 in  the  final  average  salary  calculation to 30 percent of a member's
 annual wages for tier 5 and 6 members in the New York  State  and  Local
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10748-06-2
 A. 7370--A                          2
              

 
 Police  and  Fire  Retirement System (NYSLPFRS). The current limit is 15
 percent.
   If  this  bill  is  enacted  during  the 2022 legislative session, the
 increase in the present value of benefits would  be  approximately  $340
 million and would be shared by the State of New York and all participat-
 ing  employers  in  the NYSLPFRS. The estimated first year cost would be
 approximately $6.99 million to the State of New York  and  approximately
 $27.0 million to the participating employers in the NYSLPFRS.
   Summary of relevant resources:
   Membership  data as of March 31, 2021 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2021 actuari-
 al valuation. Distributions and other statistics can  be  found  in  the
 2021  Report  of the Actuary and the 2021 Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in  the  2020
 and  2021 Annual Report to the Comptroller on Actuarial Assumptions, and
 the Codes, Rules and Regulations of the State of  New  York:  Audit  and
 Control.
   The Market Assets and GASB Disclosures are found in the March 31, 2021
 New  York  State  and  Local  Retirement System Financial Statements and
 Supplementary Information.
   I am a member of the American Academy of Actuaries and meet the Quali-
 fication Standards to render the actuarial opinion contained herein.
   This fiscal note does not constitute a legal opinion on the  viability
 of  the  proposed change nor is it intended to serve as a substitute for
 the professional judgment of an attorney.
   This estimate, dated January 11,  2022,  and  intended  for  use  only
 during  the  2022  Legislative  Session,  is  Fiscal  Note  No. 2022-42,
 prepared by the Actuary for the New  York  State  and  Local  Retirement
 System.