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History
- Referred to civil service and pensions
- Referred to civil service and pensions
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
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 in pension computation for persons hired after January 1, 2010
Summary of provisions
This bill provides that overtime payments will not be included in the computation of pension benefits for persons hired after January 1, 2010.
Section 1 amends section 90 of the General Municipal Law to provide that amounts received as overtime compensation shall be regarded as salary or compensation for any of the purposes of any pension or retirement system for persons hired before January 1, 2010.
Section 2 amends subdivision 2 of section 2 of the Retirement and Social Security law to add a new paragraph (c) providing that for members hired after January 1, 2010, salary or wages shall not include amounts received as overtime compensation.
Section 3 amends subdivision 2 of section 302 of the Retirement and Social Security Law to add a new paragraph (c) to provide that for members hired after January 1, 2010, salary and wages shall not include amounts received as overtime compensation.
Section 4 amends section 12-108 of the Administrative Code of the City of New York to provide that for employees hired before January 1, 2010, amounts received as overtime compensation 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
New bill.
Fiscal implications
Should reduce costs for state and local governments.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.