BILL NUMBER: S7670
SPONSOR: JACKSON
 
TITLE OF BILL:
An act to amend the retirement and social security law, in relation to
setting the increase to the overtime ceiling as a fixed percentage
 
PURPOSE:
The purpose of this bill is to create equity in the overtime cap between
Tier 5 and Tier 6 pensions.
 
SUMMARY OF PROVISIONS:
Section 1 amends subdivision 24 of Section 501 of the Retirement and
Social Security Law to equalize the amount of overtime that is pension
eligible for Tiers 5 and 6.
Section 2 amends Section 601 of the Retirement and Social Security Law
to equalize the amount of overtime that is pension eligible for Tiers 5
and 6.
 
JUSTIFICATION:
In 2023, a non-uniformed member of the tier 5 pension plan is allowed to
count $22,029.01 in overtime towards their pension. This amount
increases annually by 3%. However, a non-uniformed member who is in Tier
6 is only allowed to count $19,729 in overtime towards their pension,
and this amount only goes up annually based on the Consumer Price Index,
which is traditionally lower than 3%.
Most overtime in the public sector in New York is mandatory. Employees
do not have an option to work it without facing disciplinary charges.
If you have two employees doing the same job, one in Tier 5 and one in
Tier 6, who both work mandatory overtime, one will be able to count more
of the overtime towards their pension. This legislation simply creates
equity for the overtime cap between these two tiers. Under this
proposal, Tier 6 employees will have the same overtime cap as Tier 5.
This will help recruit and retain employees and eliminate inequities
within the retirement law.
 
LEGISLATIVE HISTORY:
2023-2024: S.6526-A - Amended and Recommitted to Civil Service and
Pensions/A.7309-A - Amended and Recommitted to Governmental Employees
 
STATE AND LOCAL FISCAL IMPLICATIONS:
See fiscal notes.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S7670: 501 retirement and social security law, 501(24) retirement and social security law, 601 retirement and social security law, 601(l) retirement and social security law