Bill S1812-2011

Discludes overtime compensation in pension computation earned after March 31, 2012

Does not include overtime compensation in pension computation earned after March 31, 2012.

Details

Actions

  • Jan 4, 2012: REFERRED TO CIVIL SERVICE AND PENSIONS
  • Jan 13, 2011: REFERRED TO CIVIL SERVICE AND PENSIONS

Memo

BILL NUMBER:S1812

TITLE OF BILL: An act to amend the general municipal law, the retirement and social security law and the administrative code of the city of New York, in relation to not including overtime compensation in pension computation earned after March thirty-first, two thousand ten

SUMMARY OF PROVISIONS: This bill provides that overtime payments made after March 31, 2012 will not be included in the computation of pension benefits.

SECTION 1 amends section 90 of the General Municipal Law to provide that amounts received as overtime compensation received after April 1, 2010 shall not be regarded as salary or compensation for any of the purposes of any pension or retirement system.

Section 2 amends subdivision 2 of section 2 of the Retirement and Social Security Law to provide that salary or wages shall not include amounts received as overtime compensation received after April 1, 2012.

Section 3 amends paragraph a of subdivision 2 of section 302 of the Retirement and Social Security Law to provide that salary and wages shall not include amounts received as overtime compensation on or after April 1, 2012.

Section 4 amends section 12-108 of the Administrative Code of the City of New York to provide that amounts received as overtime compensation prior to April 1, 2012 pursuant to the provisions of the section shall be regarded as salary or compensation for the purposes of any pension or retirement system of which the employee receiving such employee receiving such overtime compensation system is a member.

SECTION 5 provides that this act shall take effect immediately.

PURPOSE AND JUSTIFICATION: Recently, it has become apparent that some employees have abused the system of seeking overtime to significantly increase their salaries in their final years of employment so as to artificially inflate their eventual pension benefits. Retirement systems, public employers and taxpayers cannot afford to fund artificially inflated pensions created by abuse of the overtime system. Examples abound of employees who boost their pay through hundreds of hours of overtime as they prepare to retire, ending up with pension benefits that are higher than their base pay while they were employed. In addition to the costs to taxpayers, it is not possible for an employee to be effective for the number of hours some employees are claiming per week. The current system encourages working excessive hours which are unhealthful for the employee and result in ineffective service to the public.

EXISTING LAW: Currently, overtime pay in included in the calculation of pension benefits.

PRIOR LEGISLATIVE HISTORY: 2010: S.5247 - Local Government

FISCAL IMPLICATIONS: Should reduce costs for state and local governments.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 1812 2011-2012 Regular Sessions IN SENATE January 13, 2011 ___________
Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions AN ACT to amend the general municipal law, the retirement and social security law and the administrative code of the city of New York, in relation to not including overtime compensation in pension computation earned after March thirty-first, two thousand ten THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 90 of the general municipal law, as amended by section 13 of part B of chapter 504 of the laws of 2009, is amended to read as follows: S 90. Payment of overtime compensation to public officers or employ- ees. The governing board of each municipal corporation or other civil division or political subdivision of the state, or in the city of New York, the mayor, by ordinance, local law, resolution, order or rule, may provide for the payment of overtime compensation to any or all public officers except elective officers and those officers otherwise excluded by law and to any or all public employees under their jurisdiction at the regular basic pay rate of such officers or employees for all time such officers or employees are required to work in excess of their regu- larly established hours of employment or at such other rate as such governing board, or in the city of New York, the mayor, may authorize. [The amounts received as overtime] OVERTIME compensation RECEIVED under this section, PRIOR TO APRIL FIRST, TWO THOUSAND TWELVE, shall be regarded as salary or compensation for any of the purposes of any pension or retirement system of which the officer or employee receiving the same is a member, except as set forth in sections five hundred one, six hundred one, and twelve hundred three of the retirement and social security law. Such overtime compensation shall not be regarded as salary or compensation for the purpose of determining the right to any increase
of salary or any salary increment on account of length of service or otherwise. No such overtime compensation shall be construed to consti- tute a promotion. S 2. Paragraph a of subdivision 2 of section 2 of the retirement and social security law is amended to read as follows: a. The salary or wages annually earnable by a member, including main- tenance, or any allowance in lieu thereof, received by the member BUT NOT INCLUDING AMOUNTS RECEIVED AS OVERTIME COMPENSATION ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE. S 3. Paragraph a of subdivision 2 of section 302 of the retirement and social security law, as added by chapter 1000 of the laws of 1966, is amended to read as follows: a. The salary or wages annually earnable by a member, including main- tenance, or any allowance in lieu thereof, received by the member BUT NOT INCLUDING AMOUNTS RECEIVED AS OVERTIME COMPENSATION ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE. S 4. Section 12-108 of the administrative code of the city of New York is amended to read as follows: S 12-108 Overtime work by officers or employees and additional compen- sation therefor. Notwithstanding the provisions of any other statute, general, special or local, the mayor may authorize the head of any agen- cy to require any officer or employee in such agency or any class or group of officers or employees in such agency to work in excess of the maximum number of hours of employment prescribed for such officer or employee or class or group of officers or employees by any statute, general, special or local, provided that each such officer or employee shall be paid overtime compensation for such work at not less than his or her regular basic pay rate. [The amounts received as overtime] OVER- TIME compensation RECEIVED pursuant to the provisions of this section, PRIOR TO APRIL FIRST, TWO THOUSAND TWELVE, shall be regarded as salary or compensation for the purposes of any pension or retirement system of which the employee receiving such overtime compensation is a member. Such overtime compensation shall not be regarded as salary or compen- sation for the purpose of determining the right to any increase of sala- ry or any salary increment on account of length of service or otherwise, nor shall the payment of such overtime compensation be construed to constitute a promotion. S 5. This act shall take effect immediately.

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