Bill Text: NY S01457 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to including mandatory overtime in a member's final average salary or wages.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2018-01-03 - REFERRED TO CIVIL SERVICE AND PENSIONS [S01457 Detail]
Download: New_York-2017-S01457-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1457 2017-2018 Regular Sessions IN SENATE January 9, 2017 ___________ Introduced by Sens. AVELLA, COMRIE, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions 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: 1 Section 1. Section 1203 of the retirement and social security law, as 2 added by section 1 of part A of chapter 504 of the laws of 2009, is 3 amended to read as follows: 4 § 1203. Overtime. A member's final average salary shall be calculated 5 in accordance with such provisions of article eight or article eleven of 6 this chapter as govern the member's benefits, except that earnings clas- 7 sified as overtime compensation in an amount in excess of fifteen 8 percent of a member's annual wages not classified as overtime compen- 9 sation shall be excluded from such calculation, provided, however, any 10 overtime earned which is mandatory overtime, as defined by section two 11 of this chapter, shall not be excluded. "Overtime compensation" shall 12 mean, for purposes of this section, compensation paid under any law or 13 policy under which employees are paid at a rate greater than their stan- 14 dard rate for additional hours worked beyond those required, including 15 compensation paid under section one hundred thirty-four of the civil 16 service law and section ninety of the general municipal law. 17 § 2. Subdivision 24 of section 501 of the retirement and social secu- 18 rity law, as amended by chapter 298 of the laws of 2016, is amended to 19 read as follows: 20 24. "Wages" shall mean regular compensation earned by and paid to a 21 member by a public employer, except that for members who first join the 22 state and local employees' retirement system on or after January first, 23 two thousand ten, overtime compensation paid in any year in excess of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01198-01-7S. 1457 2 1 the overtime ceiling, as defined by this subdivision, shall not be 2 included in the definition of wages, provided, however, that any over- 3 time compensation earned which is mandatory overtime, as defined by 4 section two of this chapter, shall be included in the definition of 5 wages. "Overtime compensation" shall mean, for purposes of this section, 6 compensation paid under any law or policy under which employees are paid 7 at a rate greater than their standard rate for additional hours worked 8 beyond those required, including compensation paid under section one 9 hundred thirty-four of the civil service law and section ninety of the 10 general municipal law. The "overtime ceiling" shall mean fifteen thou- 11 sand dollars per annum on January first, two thousand ten, and shall be 12 increased by three percent each year thereafter, provided, however, that 13 for members who first become members of the New York state and local 14 employees' retirement system on or after April first, two thousand 15 twelve, "overtime ceiling" shall mean fifteen thousand dollars per annum 16 on April first, two thousand twelve, and shall be increased each year 17 thereafter by a percentage to be determined annually by reference to the 18 consumer price index (all urban consumers, CPI-U, U.S. city average, all 19 items, 1982-84=100), published by the United States bureau of labor 20 statistics, for each applicable calendar year. Said percentage shall 21 equal the annual inflation as determined from the increase in the 22 consumer price index in the one year period ending on the December thir- 23 ty-first prior to the cost-of-living adjustment effective on the ensuing 24 April first. For the purpose of calculation a member's primary federal 25 social security retirement or disability benefit, wages shall, in any 26 calendar year, be limited to the portion of the member's wages which 27 would be subject to tax under section three thousand one hundred twen- 28 ty-one of the internal revenue code of nineteen hundred fifty-four, or 29 any predecessor or successor provision relating thereto, if such member 30 was employed by a private employer. For members who first become members 31 of the New York state and local employees' retirement system on or after 32 the effective date of chapter eighteen of the laws of two thousand 33 twelve, the following items shall not be included in the definition of 34 wages: (a) wages in excess of the annual salary paid to the governor 35 pursuant to section three of article four of the state constitution, (b) 36 lump sum payments for deferred compensation, sick leave, accumulated 37 vacation or other credits for time not worked, (c) any form of termi- 38 nation pay, (d) any additional compensation paid in anticipation of 39 retirement, and (e) in the case of employees who receive wages from 40 three or more employers in a twelve month period, the wages paid by the 41 third and each successive employer. For New York city enhanced plan 42 members who receive the ordinary disability benefit provided for in 43 subdivision c-1 of section five hundred six of this article or the acci- 44 dental disability benefit provided for in paragraph three of subdivision 45 c of section five hundred seven of this article, the following items 46 shall not be included in the definition of wages: (a) lump sum payments 47 for deferred compensation, sick leave, accumulated vacation or other 48 credits for time not worked, (b) any form of termination pay, (c) any 49 additional compensation paid in anticipation of retirement, and (d) in 50 the case of employees who receive wages from three or more employers in 51 a twelve month period, the wages paid by the third and each successive 52 employer. 53 § 3. Subdivision 1 of section 601 of the retirement and social securi- 54 ty law, as amended by chapter 510 of the laws of 2015, is amended to 55 read as follows:S. 1457 3 1 l. "Wages" shall mean regular compensation earned by and paid to a 2 member by a public employer, except that for members who first join the 3 New York state and local employees' retirement system or the New York 4 state teachers' retirement system on or after January first, two thou- 5 sand ten, overtime compensation paid in any year in excess of the over- 6 time ceiling, as defined by this subdivision, shall not be included in 7 the definition of wages, provided, however, that any overtime compen- 8 sation earned which is mandatory overtime, as defined by section two of 9 this chapter, shall be included in the definition of wages. "Overtime 10 compensation" shall mean, for purposes of this section, compensation 11 paid under any law or policy under which employees are paid at a rate 12 greater than their standard rate for additional hours worked beyond 13 those required, including compensation paid under section one hundred 14 thirty-four of the civil service law and section ninety of the general 15 municipal law. The "overtime ceiling" shall mean fifteen thousand 16 dollars per annum on January first, two thousand ten, and shall be 17 increased by three per cent each year thereafter, provided, however, 18 that for members who first become members of a public retirement system 19 of the state on or after April first, two thousand twelve, "overtime 20 ceiling" shall mean fifteen thousand dollars per annum on April first, 21 two thousand twelve, and shall be increased each year thereafter by a 22 percentage to be determined annually by reference to the consumer price 23 index (all urban consumers, CPI-U, U.S. city average, all items, 24 1982-84=100), published by the United States bureau of labor statistics, 25 for each applicable calendar year. Said percentage shall equal the annu- 26 al inflation as determined from the increase in the consumer price index 27 in the one year period ending on the December thirty-first prior to the 28 cost-of-living adjustment effective on the ensuing April first. For 29 members who first join a public retirement system of the state on or 30 after April first, two thousand twelve, the following items shall not be 31 included in the definition of wages: 1. wages in excess of the annual 32 salary paid to the governor pursuant to section three of article four of 33 the state constitution, 2. lump sum payments for deferred compensation, 34 sick leave, accumulated vacation or other credits for time not worked, 35 3. any form of termination pay, 4. any additional compensation paid in 36 anticipation of retirement, and 5. in the case of employees who receive 37 wages from three or more employers in a twelve month period, the wages 38 paid by the third and each additional employer. 39 § 4. Section 2 of the retirement and social security law is amended by 40 adding a new subdivision 37 to read as follows: 41 37. "Mandatory overtime." Involuntary overtime required pursuant to 42 any law, rule or regulation. 43 § 5. This act shall take effect immediately.