Bill > S1719

This bill aims to preserve the practice of including annual payments in lieu of vacation as regular compensation for current retirees and active retirement system members where such benefit existed as of May 2018. Specifically, the bill states that a retirement allowance that included these annual payments in lieu of vacation leave upon which contributions or deductions were made to the applicable retirement system shall not be reduced, modified, or changed due to the inclusion of such contributions or deductions. Additionally, the bill stipulates that any such payments in lieu of vacation leave made to members in service as of May 1, 2018 shall continue to be considered regular compensation, as long as they are permitted under an applicable collective bargaining agreement, individual contract, or municipal plan or ordinance, and meet certain other requirements. The retirement systems are required to regard any such payments made to members in service subsequent to May 1, 2018 as regular compensation and take appropriate measures to effectuate this provision.