Senate Bill S6370A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6370--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              April 26, 2021
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
   --  recommitted  to  the  Committee  on  Civil Service and Pensions in
   accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee
 
 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.
                                                            LBD10748-05-2
              

 S. 6370--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.